Farmers Want to Pass the Torch
The pandemic is said to have doubled the transfer intentions of Quebec SMEs, and the agricultural sector is no exception: many farmers want to pass the torch. According to a report from the Royal Bank of Canada, 40% of Canadian farm operators are expected to retire by 2033. Even with serious challenges ahead, including a shortage of successors and few formal succession plans in place, a substantial portion of agricultural wealth is likely to pass to new hands in the coming years.
Farms Increasing in Value
Recent data shows that the average asset value of Quebec farms has doubled over 10 years (from 2013 to 2023), rising from an average market value of CAD 2.19 million to CAD 4.33 million. Farm Credit Canada also reports a national upward trend in farmland values, with an average increase of 9.3 % in 2024. If this trend continues, farm values are expected to rise steadily over the coming years.
Green Energy Gains Ground on Farms
According to Statistics Canada’s 2021 Census of Agriculture, nearly one in eight farms (22,576 operations) produced some form of renewable energy, more than double the number recorded in the 2016 census. The reduction in the cost of solar and wind equipment, along with increased subsidy opportunities, is partly behind this rise in popularity.
Although the future is uncertain, clear trends are taking shape: the agricultural sector is in the midst of a major transformation.
