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Why Farmland is the New Frontier for Canadian Real Estate Investors
September 8th, 2025
Why Farmland is the New Frontier for Canadian Real Estate Investors
Farmland has long flown under the radar relative to residential and industrial assets. That’s changing. For investors focused on stability, inflation protection, and real-economy exposure, Canadian farmland is emerging as a strategic real asset, with the added advantage of social value tied to food production and stewardship.
Long Term Performance
Across multiple cycles, data shows Canadian farmland values have risen steadily, including a national +9.3% increase in 2024, moderating from 2023 but continuing a multi‑decade trend of appreciation.
This consistency reflects a simple reality: land supply is finite, while Canada’s population and food demand continue to expand over time. See Statistics Canada’s agriculture portals for structural trends and census snapshots.
Farmland’s economics (crop/lease income + underlying land value) provide a buffer when public markets swing. In years when equities decline, farmland has often continued to post positive gains, supporting a diversification story that complements traditional stock/bond mixes.
ESG Alignment
Farmland naturally aligns with ESG objectives:
Food security: The federal Food Policy for Canada highlights the importance of a resilient domestic food system
Environmental stewardship: Responsible practices support soil health, water management, and biodiversity
Community value: Agriculture anchors economies and supply chains tracked via Statistics Canada’s agriculture indicators
How We Think About It
As attention and capital rotate toward real assets, farmland stands out for combining tangible intrinsic value with durable cash flows and long‑duration growth drivers. In regions like Southwestern Ontario, proximity to growth corridors reinforces the case for disciplined, long‑term ownership.
References:
Farm Credit Canada, 2024 Farland Values Report
Ontario Government – A Place to Grow: Growth Plan for the Greater Golden Horseshoe
Ontario Government – A Place to Grow: Office Consolidation PDF
Ontario Government – Land Needs Assessment Methodology (GGH)
Agriculture and Agri-Food Canada – Food Policy for Canada
This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Please read our full disclaimer for important details.