Insights from Ancaster’s Stephen Gleave on Changes in Canadian Homesteading for 2026

Owning Canadian farmland has always been risky. In 2026, that reality feels even more personal for a lot of producers.

Farmers across the nation are facing higher costs, tighter margins, and steady demand for land. Farm Credit Canada's recent report suggests overall farm costs will climb this year. Input costs including fertilizer, seed, and crop protection products stay high. Simultaneously, commodity prices in several industries have softened. That squeeze is forming how farmers think about buying land.

Farmland values are still holding strong. FCC's mid year reporting showed cultivated land values rose again in 2025, with growth in Manitoba and some Atlantic provinces. Other regions saw little movement, but overall, land stays a valuable and limited asset. For a lot of farm families, it is still seen as one of the safest long-term investments out there.

Ancaster farmer Stephen Gleave says the discussion about ownership has changed in tone.

"Farmers are more careful now. The desire to own land is still there, but people are watching numbers more carefully than they did a few years ago."

That caution feels logical. Borrowing costs are higher than they were a decade ago. Equipment costs have climbed. Labour can be hard to find and harder to keep. With all of those pressures combined, adding more acres is no longer an automatic choice.

Despite this, outside interest in farmland is still growing. Canadian reports from the past 12 months have shown more participation from investors and investment groups. They see farmland as stable, tangible, and resilient. That additional demand can make prices more expensive, especially in areas with good soil quality and reliable yields.

Gleave says this creates mixed feelings in rural communities.

"Outside investment can bring capital into agriculture, but it can also make it harder for local families and young farmers to compete when land comes up for sale."

Entry into homesteading is a big challenge, especially for younger producers. Even in provinces where land is cheaper than near bigger cities, the upfront money required can be daunting. This results in new farmers turning to rental agreements, joint ventures, or gradual buy-in arrangements with retiring owners.

Renting land isn't a new concept, but it has become a smarter choice. Sometimes, renting lets farmers expand production without taking on a lot of debt. It's also more flexible in uncertain markets. Still, a lot of producers would prefer to own if prices were better.

There are also industry specific trends impacting land decisions. FCC outlook reports suggest that livestock industries, including hogs, may see healthier margins in 2026.. This is because of stronger demand and better feeding costs. Crop producers, however, still feel pressure from global supply levels and pricing changes. Those differences can impact how confidently a farm business can grow its land base.

Regional variation matters too. Prairies provinces see different trends than Ontario or B.C. Soil quality, weather conditions, and proximity to markets all impact land value growth. In some places, farmland prices have levelled off. In others, competition is intense whenever a parcel is listed.

Gleave says it's important for farmers to think long-term.

"Land ownership should fit into a bigger plan. It has to be profitable, but it also has to support succession. Farmers must think about what they're building for the next generation.

That generational view is especially relevant in 2026. A lot of established farmers are close to retirement. Choices about selling, transferring, or changing ownership are happening daily. Some families are keeping land within the operation through gradual transfers. Others are selling portions to handle debt or fund retirement. Each choice forms the local farm environment.

Despite the obstacles, confidence in Canadian agriculture persists. Global demand for food is strong. Canada's reputation for quality and reliability supports exports. Technology helps producers manage risk more effectively, from precision agriculture tools to improved data tracking on yields and input use.

Gleave notices resilience in how farmers are adapting.

"Canadian producers are practical. They adjust. They look at costs, review markets, and find a path forward."

In 2026, homesteading in Canada is no easy choice. Climbing costs, steady land values, and changing ownership models all have an impact. For some, buying more land will still be the right move. For other people, flexibility and partnerships offer a smarter route.

The connections farmers feel to the land is constant. Ultimately, farm ownership is less about acres on a balance sheet. Owning a farm involves stewardship, legacy, and building something that lasts.