TORONTO – Ontario is set to impose “significant restrictions” on foreign purchases of farmland, joining other provinces with substantial agricultural industries like Quebec, Alberta, Saskatchewan, and Manitoba.
Agriculture Minister Trevor Jones is expected to present a bill at Queen’s Park on Wednesday afternoon aimed at stopping “foreign investors from driving up the price of farmland in Ontario.”
During a press conference on Tuesday, Jones described these measures as a way to “ensure that Ontario has a strong, independent food supply for generations to come.”
“Restricting the foreign ownership of farmland (will) ensure that it isn’t just a number on a balance sheet of some overseas company, but actively producing food to feed our communities and the world,” Jones said.
The government claims this legislation will “align Ontario with the approach taken by other jurisdictions in Canada, including Alberta and Quebec,” both of which enacted laws limiting foreign ownership of farmland in 2022.
In Alberta, foreign buyers can only purchase up to 20 acres of farmland, while Quebec mandates that buyers get approval from a regulatory body before acquiring farmland.
Ontario has yet to clarify what specific restrictions are being considered. The proposed bill will empower the province to regulate foreign ownership, with further details forthcoming.
Agricultural groups seemed surprised by the announcement.
The Ontario Federation of Agriculture stated it could not comment on the proposal until they had more time to evaluate its implications.
Jim Brackett, president of the Kent Federation of Agriculture, expressed he had many questions.
“Who is classified as a foreign or international buyer? Does it affect corporations or pension funds? … Are current foreign owners grandfathered in? Will this also pertain to leases? These are all my concerns,” Brackett said.
Jones mentioned that the bill would not impact completed transactions.
The National Farmers Union has been urging Ontario to take action against foreign ownership since 2022. Ontario president Josh Suppan also stated he couldn’t provide comments without knowing more details.
However, new limits on foreign ownership might not lead to significant changes since brokers report there’s not much farmland in Ontario being purchased by entities outside Canada.
“In the last 12 years, I haven’t encountered a foreign buyer. And I have sold around 30,000 acres,” shared Steven Michie, a farm real estate broker based in Brussels, Ont.
An additional broker, Phil Chabot, concurred. He noted that while there used to be more international investment in Ontario farmland years ago, it has “slowed down quite significantly over the past 10 to 15 years.”
“Overall, there are very few acquisitions by foreign buyers and their percentage of ownership remains quite small,” Chabot commented. “I don’t think it’s currently a major concern.”
Postmedia reached out to Jones’s office for information regarding how much land is owned by foreigners in Ontario but did not receive any data back.
According to Michie, most sales involve large family-owned farms buying smaller ones. Investment firms do buy land too but usually rent it back out to farmers; most such firms are based in Canada.
An example includes the Ontario Teachers’ Pension Plan which invests heavily in farmland globally and owns about 130,000 acres worldwide.
Chabot added that investments from firms have also decreased over recent years because “they just can’t achieve their desired returns through cash rent agreements.”
Michie speculated if these new regulations would target overseas investors purchasing land near Greater Toronto Area for housing developments instead.
“Maybe what they’re trying to prevent is development around GTA,” he remarked.
Chabot agreed this could be logical thinking.
“There’s definitely some overseas investment happening there,” he acknowledged. “It’s clear there’s significant money coming from abroad into that area.”
Green Party Leader Mike Schreiner mentioned that rules regarding foreign ownership are a “step in the right direction” but will “not stop the loss” of farmland across Ontario.
If the government truly aims at preserving farmland then it must also safeguard against its repurposing.
Schreiner remarked: “A handful of wealthy land speculators – those same individuals who were poised to profit from the Greenbelt scandal – will still find ways to pave over farmlands across southern Ontario.”
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Schreiner remarked: “A handful of wealthy land speculators – those same individuals who were poised to profit from the Greenbelt scandal – will still find ways to pave over farmlands across southern Ontario.”
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