Balance sheet of the agricultural sector, December 31, 2025

Released: 2026-06-18

The value of Canada's farm sector equity rose by $54.5 billion (+6.5%) to $888.9 billion as of December 31, 2025. Farm equity rose in every province, except British Columbia (-1.7%). Equity gains in Alberta (+11.6%) and Saskatchewan (+9.9%) accounted for more than three-quarters of the national increase.

Chart 1 
Year-over-year percentage change in the value of total assets, total liabilities and equity, 2024 to 2025

Total farm asset values hit $1 trillion

The value of total assets grew by $66.7 billion (+6.7%) from the same date one year earlier to $1.1 trillion as of December 31, 2025. The value of farm real estate was responsible for close to three-quarters of the rise in total assets value. All provinces, excluding British Columbia and Newfoundland and Labrador, recorded increases in the value of farm real estate. The higher farm real estate values were mainly due to gains in the value of farmland, which was up by $46.4 billion (+6.5%) to $759.7 billion in 2025.

Following two consecutive years of double-digit declines, the value of crop inventories rebounded compared with the same date one year earlier, increasing by $1.7 billion (+6.9%) to $25.7 billion as of December 31, 2025. Improved growing conditions over the past two years contributed to higher on-farm stocks (+11.5%), which was the primary source of the overall increase in crop inventory values in 2025. This increase occurred despite the continued downward price pressure (-4.1%) driven by higher production levels and ongoing geopolitical tensions.

The value of poultry and market livestock inventories grew by $4.8 billion (+29.2%) to $21.3 billion as of December 31, 2025. The increase was largely the result of higher prices for most of the poultry and market livestock commodities, as inventory levels for most livestock were stable. The value of poultry and market livestock inventories was up in every province except Prince Edward Island (-2.7%).

Total liabilities continue their upward trend

The value of total liabilities increased by $12.2 billion (+7.7%) from the same date one year earlier to $171.2 billion as of December 31, 2025. Long-term liabilities (+9.0%) were responsible for the entirety of the increase, as current liabilities (-1.4%) declined for the first time since 2021. Total liabilities were up in eight provinces as of December 31, 2025, with Alberta (+10.4%) and Ontario (+7.7%) leading the increases.

Chart 2 
Solvency ratio—debt, Canada, 2010 to 2025

Interest coverage ratio rises

Following two consecutive years of declines, the interest coverage ratio, which measures a farm business's ability to meet its interest payments, increased, reaching 2.630 as of December 31, 2025. The improvement in the interest coverage ratio was driven by lower interest rates and an increase in total net farm income. The rise in total net farm income was largely a result of higher crop production levels in 2025 and increased year-end inventories. A higher interest coverage ratio (net income before taxes plus interest expense, divided by interest expense) indicates that businesses are becoming more capable of servicing their debt obligations. Despite this improvement, this current interest coverage ratio level remains lower than the 5- and 10-year averages.

Chart 3 
Efficiency ratio—interest coverage, Canada, 2010 to 2025

Contact information

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