An interesting article in the Financial Sense pointed out that there was once a time when the farming sector was a booming economic sector. As recently as the 1950s, the farming sector employed 20% of Canada’s workforce. Over the years, however, industrialization took its toll, and farming gradually became a diminishing market. Both in terms of workers employed and the percentage of GDP produced, farming took a big hit.
It comes as a significant, albeit surprising piece of news, then, that as of 2013, Canada’s farming real estate market is doing very well. In fact, in terms of gains in price and popularity, the farming sector is near the very top right now. In places like Southwestern Ontario, there has been a 50% rise in price-per-acre. On average, Ontario has seen an increase of 12% in farmland real estate prices. Interest in farmland has become quite diverse, reaching as far as pension plans and hedge fund managers.
It now seems clear that farmland demand will keep rising. This demand is tied into the rising global food prices, which themselves are a result of the burgeoning human population (now 7 billion and counting). More mouths to feed mean a greater need for farmland to produce food, which in turn keeps that sector of the real estate market extremely healthy.
Canada, in particular, could benefit greatly from this. We have a considerable amount of arable land and a large percentage of the world’s freshwater, allowing us to expand on our farmland real estate. There is a chance that the near future will see farmers claiming empty suburban lands and farmable land, giving the farming sector a re-emergence to its former glory.
About Lynx Systems Inc.:
Lynx Systems Inc. is a technology consulting company that specializes in assisting real estate companies with their automation needs with a focus on Yardi, MRI and Microsoft SharePoint solutions. Lynx Systems works with clients across Canada and the US to improve productivity and reduce costs by focusing on key processes and by recommending state of the art solutions that streamline operations. Our services include selection, implementation, support, SSRS report writing, training, information architecture and taxonomy, web application development, and branding services, to name a few. https://www.lynxsystemsinc.com
Source: Financial Sense
Source Link: https://www.financialsense.com/contributors/jeff-rubin/farmland-canada-real-estate-market
