Top 3 Best Canadian Farmland Investing Platforms In 2023

Key Points

• Canada is one of the largest agricultural producers and exporters in the world.
• Farmland investing can provide investors with a stable return, low volatility, and the opportunity to participate in the growing global demand for agricultural products.
• There are several platforms available that allow investors to participate in the growth of Canadian farmland without purchasing a farm themselves.
• AGinvest Farmland Funds and Area One Farms are two examples of such platforms, and they partner with farmers to buy, optimize and manage premium Canadian farmland.
• Both of these platforms are reserved for accredited investors only.

When you think of Canada, you may picture bacon, ice hockey, or even the famed Niagara Falls.

However, one of Canada’s greatest assets is its land, an abundance that supports a thriving agricultural base. In Canada, approximately 675,000 square kilometers of land are dedicated to agriculture.

Little known fact: Canada is one of the world's largest agricultural producers and exporters.

Canadian farmland is abundant, from sun-dappled grain fields to lush fruit orchards to summer produce in the valleys.

Canada has a deep well of natural water sources and has benefited from climate change, bringing on longer growing seasons and supporting higher-value crops.

Canada has a stable history of farmland appreciation, driven by two factors that will continue to come into play: upward trends in physical yield and the ability to plant more profitable crops.

Start Investing Today

Should You Invest In Canadian Farmland?

Farmers know that their most significant challenge is access to capital. They must replace aging equipment, shore up property, buy seeds, build irrigation systems, and pay for labor at harvest time.

When money is funneled into farmland, the results can be astonishing. The land may be better utilized, crops may flourish, and there may be more significant profit.

Since the early 1990s, farmland has shown a profitable return yearly. The USDA says that farmland brings an average annual return of 11.5%.

But, again, look at its track record; farmland outperforms most other asset classes, including real estate.

What’s more, farmland returns usually do not move with the ebb and flow of the stock market.

As the world population continues to veer off the charts, there are more hungry mouths to feed. This means a steadily increasing global demand for food sources, including wheat, corn, and apples.

Farmland is a solid investment, and demand for agricultural products will only rise in the decades ahead.

How To Invest In Canadian Farmland

We will highlight three platforms that allow investors to participate in the growth of farmland without ever leaving their houses!

1. AGinvest Farmland Funds

AGinvest Farmland Funds was formed to raise capital to buy, optimize and manage premium Ontario farmland. AGinvest works with progressive farm operators using a grower’s agreement to generate annual income.

AGinvest founders come from a farming background and use this hands-on knowledge in every aspect of the company.

The company targets farmers primarily in Southwestern Ontario because the region has:

• A long frost-free growing season with ample heat for growing 200-plus staple crops
• Consistent rainfall throughout the growing season (little need for costly irrigation)
• Access to unlimited fresh water supplies through most of the Great Lakes basin
• Deep and rich soils deposited in the region during the last glacial period
• Exceptional logistics and infrastructure that can quickly access ports to the global market
• Highly educated workforce able to plan and manage farm operations efficiently
• Major urban markets in the surrounding areas that require fresh market produce

Requirements

• Must Be a Canadian citizen or permanent resident of Canada
• The platform is reserved for Accredited Investors as defined in the Securities Act (Ontario)
• Minimum investment of 150,000 Canadian Dollars

2. Area One Farms

Area One Farm operates private equity funds in the Canadian farmland sector.

They partner with established farm operators to buy off-market farmland, helping family farms physically expand and also improve their financial returns.

The company's mission is to make high-impact investments in farmland most sustainably while focusing on adding value. They carry out this mission by forming equity partnerships with top-performing Canadian farmers.

Among their goals are to:

• Acquire land, machinery, and related supplies to achieve optimal scale
• Improve land to maximize productivity, add value, and sustain assets
• Manage farms to increase profitability

The company brings committed investors and innovative farmers together to invest in land and grow farms in a way that keeps the farmer as an owner. 

Area One Farm partners with Canadian farmers – most of them family farms – looking to expand. Often, they find adjacent property for sale, perhaps owned by retiring farmers. Once found, the company assists the farmer in buying the land. Investors then become equity owners in the new, expanded farm.

Requirements

• Reserved for accredited investors
• Minimum holding period of 10 years
• Minimum investment of $100,000
• Contact their investor team to learn more about Area One Farms and fees

3. Bonnefield

Bonnefield was established to become financial partners with progressive farmers.

Investors provide an alternative source of capital to farm families by giving them money to make their farming businesses flourish.

Bonnefield is Canada’s leading provider of land-lease financing for farmers, dedicated to preserving farmland across Canada. They partner with forward-thinking farm operators who embrace technology, recognize farming as a business and a lifestyle, and are interested in long-term working relationships.

Through its lease financing program, Bonnefield has been successful in helping the 100+ farm families they work with.

Among their goals are to:

• Promote sound farmland management practices
• Help improve operator efficiencies
• Protect the integrity of Canadian farmland

Requirements

• Funds are open to accredited institutional and private investors
• To learn more about your eligibility, minimum investments, and other information about Bonnefield, you can reach out by email to info@bonnefield.com