Grainswest - Spring 2026

Spring 2026 Grains West 34 The national average during that period was 11.2. Even with a shrinking land value gap, investor interest remains high across Canada. Magnan acknowledged the sacred, innate value of farmland and rural communities held by residents of these areas. When investors buy the land, the dynamic changes, he said. “The social investment notion of farmland is where, traditionally, a homesteading family acquires land, builds it up slowly and passes it down. There’s a strong connection to place and community. Not to overly romanticize it, but this is the understanding over several generations. In the last 25 years, we’ve seen a financial logic becoming more prominent, this investor mentality, which is that the value of land is likely to go up and it’s a safe and stable investment and we can get rental income in the meantime. That is new and partly what may bother people who are multigenerational. It strips out some of those social and community ties.” It’s an impersonal experience to bid on land against those who don’t live or farm in the area. He noted nothing illegal is happening, but it impacts the spirit of rural life. As the western Canadian countryside hollows out, investors don’t help the process, he believes. “On the margins, in a market that’s already tight, when you add those investor players, it will have an effect. They’re not totally responsible. It’s a bit like the real estate market, which is largely individual buyers, but if you add investors into the mix looking for rental income, that inevitably has an impact on the market.” Farmers tell Magnan they worry investor actions accelerate the decline of their communities. He doesn’t believe the purchase of farmland by investors is all bad, though. Many who snap up land have the money to immediately improve marginal aspects of it in order to make every square foot arable. On their own, that process may take a farmer multiple years. While economically positive, such development risks loss of important natural habitats such as riparian areas and wetlands. “In that case, you lose biodiversity and other ecosystem services and benefits and even natural beauty in the countryside when all farmland becomes a homogenized, optimized platform for growing grain.” Magnan also uncovered that foreign ownership is negligible. While he said no system is perfect and concedes there has no doubt been slippage, it doesn’t amount to much. The Saskatchewan NDP has nonetheless demanded the governing Saskatchewan Party make changes to that province’s Farm Land Security Board after several recent transactions lacked mandatory declarations of residency. In Saskatchewan, a non- Canadian or foreign controlled corporation is allowed to own just 10 acres of farmland, while in Alberta, the number is 20, and in Manitoba it’s 40. However, B.C., Ontario, Nova Scotia and Newfoundland and Labrador have no limits. Quebec requires permission from an agricultural regulatory body. In Alberta, a person found in violation of the rules could be subject to a fine, jail time or both. While advocacy groups such as the NFU are in favour of land caps, Magnan acknowledges this may stir lots of emotion. “It’s a very thorny policy question,” he said, and added he’s not in favour of such a measure. However, he does wonder if measures can be implemented that are preferable for families who live on and farm the land in each province. “We do need to think seriously about facilitating, encouraging and protecting family ownership of farms,” he said. “Are there tax measures FEATURE While farmland remains culturally sacred to rural residents, investor interest often remains high for economic reasons.