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Investing in Canadian farmland

Investing in Canadian farmland

By Andrew Joseph,

As the humourist and writer Samuel Clemens aka Mark Twain famously said: “Buy land, they’re not making it anymore.

While mostly a correct statement—China has been making artificial islands in an effort to move its borders closer to other countries to gain fishing and air territorial rights—land, especially arable farming land is always a keen investment.

A main reason for that, simply, is that people must eat, and farms produce that necessity of life. As the population of the planet grows, so too does that requirement.

Canada is the fifth-largest agricultural exporter on the planet per Agriculture and Agri-Food Canada, employing some 300,000 people.  

Even in times of slower population growth in Canada, our exports to other countries creates a higher demand for our ag products, making Canadian real estate a stable and resilient investment.  

Thanks to the adoption and continued increase of precision ag farming techniques—a use of technological tools to provide exacting farming data and advice to provide optimal land usage while creating higher crop yields— experts predict that 90 percent of the existing arable land will produce 70 percent more food.

Why wouldn’t you want to become involved in Canadian farmland real estate with its quality of life and business opportunities?

A 30-year examination of farmland values in Canada and the U.S. shows a steady increase, with few downturns.

According to Farm Credit Canada (FCC), in 2018 and 2019, its reports show, for example, a three-year average increase in farmland values in Saskatchewan (6.2 percent), British Columbia (3.3 percent) and Manitoba (4.2 percent).

For 2020 and 2021—impacted by the pandemic— Michael Hoffort, FCC President and Chief Executive Officer said: "The Canadian agriculture and food industry demonstrated its bend-not-break mentality and FCC was a part of that … I am honoured and proud to be part of an organization and serve an industry that stepped up to overcome many challenges."

And this is coming from an organization that is the only financial lender 100 percent invested in Canadian agriculture and food, again noting ag’s resilience.

With population expected to continue growing along with food demands and available farmable land remaining static, investing in ag real estate promises to a positive experience.

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