With nearly 65 million hectares of land
used for crops and livestock3, Canada has one of the largest agricultural land shares in the world and is the fifth largest agricultural exporter globally4.
Demand for agricultural products is increasing
Today, we observe two contrasting trends in the world:
- First, the population growth rate is increasing rapidly. Between 2015 and 2050, the number of people is expected to increase by about 165,0001 every day. This number is roughly equivalent to the inhabitants of Geneva being added to the world’s population every day over the course of 35 years, and needing to be fed.
- Second, arable land is disappearing every year: in the past 40 years, the world has lost one third of its arable land to erosion or pollution and urban encroachment.2
Canada’s competitive advantages are undisputed
- Canada can fill supply gaps because it has a variety of available commodities and a well-developed infrastructure for storing and delivering them.
- Canada’s agricultural exporters benefit from well-developed trade relationships with some of the world’s largest importers (e.g., the United States, China, and Japan).
- The country’s political and economic stability, along with the quality of Canadian commodities, encourages the country’s trade with new and emerging trading partners.
Canada’s resources are sustainable
Canada has vast natural resources of land, water, forests and renewable energy.
Land: With an area of 9,984,670 km2, Canada is the second largest country in the world.
Forests: With nearly 362 million hectares (ha) of forest, Canada has the third-largest forest area in the world. Of this, 158 million hectares of forest are certified; this means Canada has 35% of all certified forests.
Water: Canada’s lakes and rivers represent 20% of the world’s total renewable freshwater. Furthermore, 9% or 891,163 km2 of Canada’s total area is covered by freshwater. Canada is the third largest hydroelectric power producer in the world.
Investment in Canadian farmland is safe
In financial circles, investing in Canadian farmland and forestry has been a proven investment strategy for decades.
Canada has a secure legal, economic and political environment. Canada has a tightly regulated land title system comparable to the USA land registry. This makes the country a safer place to own farmland compared to developing countries that offer less legal security.
Canada’s farmland is among the best in the world
Unlike its southern neighbors (and different regions of Europe), Canada has not experienced the same level of unusually dry conditions in recent years. This has resulted in high yields, despite interest rate increases and higher import prices for fertilizer and equipment.
This trend is also reflected in farmland prices. According to Farm Credit Canada (FCC), a government financial institution helping farmers buy property, the average price of a farm in Canada increased 47 percent between 2017 and 2022. Last year alone (2022), farmland prices increased nearly 13 percent from the previous year. However, select Canadian areas are still very affordable compared to other countries worldwide.
The latest 2022 FCC Farmland Report can be found on our resources page.
Latest trends and news stories are covered in our news section.
Footnotes
- “World Population Prospects: The 2015 Revision” by the United Nations
- The University of Sheffield’s Grantham Centre for Sustainable Futures undertook the study by analyzing various pieces of research published over the past decade
- Statistics Canada, 2011. Table 004-0002 – Census of Agriculture, total area of farms and use of farmland, Canada and provinces, every 5 years, CANSIM (database).
- Agriculture and Agri-Food Canada, 2013. We Grow a Lot More Than You May Think. Ottawa, Ontario.
