Canadian farmland is not just land. It represents heritage, livelihood, and one of the crown jewels of our national economy. It underpins Canada’s role as one of the world’s leading agricultural exporters 4. In 2024, agriculture and agri-food contributed more than $149 billion to Canada’s GDP, representing about 7% of the total economy, while supporting millions of jobs and supplying essential commodities to global markets 3. With nearly two-thirds of farm cash receipts tied to exports, the stewardship of Canadian farmland is inseparable from global food security 3.
At a time of climate volatility, geopolitical instability, and fragile supply chains, the reliability of Canadian farmland has never been more important. Its continuity, however, depends on collaboration among farm families, investment capital, and policy makers to address the succession challenges ahead.
Shifting Demographics: Canada’s Aging Farmers
The demographic reality underscores the urgency. Over 60% of farmers are now 55 or older, while the portion of farmers under 35 has decreased from 12% to 9% over the past two decades 5,6.
The pipeline of young farmers is shrinking.
Meanwhile, farmland has never been more valuable. In Ontario, where farmers require a minimum of about 1000 acres to run viable operations, high-quality farmland now commands above $20,000 per acre. The next generation of farmers faces significant barriers to entry when factoring in land and equipment costs. In the Prairies, viable operations often require 3,000 acres or more to achieve sufficient scale, when considering various factors such as the crop prices and average yields for the major crops grown in each region. The capital intensity is daunting, and many young farmers lack access to sufficient equity or credit.
The outcome has been consolidation.
Canada’s farm count has dropped from nearly 247,000 two decades ago to fewer than 190,000 today, a 23% decline 7,8. Ownership remains overwhelmingly in family hands, but fewer families are carrying the responsibility.
Crescero Natural Capital is committed to addressing this challenge through buying and optimizing farmland and leasing back the land to farming operators. By doing so we not only provide an exit opportunity for existing farmland owners but also lower the barriers for the next generation of farmers looking to expand their operations or enter into the farming industry. By digging deep, forging bonds, and bridging worlds, Crescero is transforming the relationship between investors and farmers to enhance the value of agricultural assets, increase prosperity, and sustain growth for generations to come.
Succession Planning: A Critical Gap
Despite the scale of the issue, only 12% of Canadian farms have a written succession plan9. This gap reflects the complexity of family dynamics, diverging interests among heirs, and the difficulty of discussing money, control, and legacy. Often, the conversation happens too late when illness, financial strain, or family disputes force decisions.
Farm families turn to Crescero because we understand their reality.
We are farmers ourselves. We speak their language, we sit at their kitchen tables, and we know the pressures of operating under volatile markets, weather risks, and intergenerational expectations. This alignment builds trust and creates opportunities to design solutions that preserve family operations while unlocking capital for transitions.
Building Bridges with Capital
Closing the succession gap is not only about planning, but also about having access to capital resources. Even well-prepared families struggle to align transition goals with the financial means to achieve them. That is where investor capital becomes essential. Crescero’s mission is to partner with investors and farm families to create value by actively optimizing, managing, and protecting Canadian farmland, while delivering outcomes that serve investors, farm families, and the land itself. These are some of the ways that Crescero creates value for both investors and farm families.
Diversified returns for investors:
By purchasing, optimizing, and managing farmland with discipline, Crescero seeks to deliver steady risk-adjusted returns from this uncorrelated asset class.
Liquidity for the retiring generation:
Decades of work deserves to be rewarded. Crescero provides capital that allows farm families to unlock their equity and exit gracefully.
Improved cash flow management:
Capital provided by Crescero during the sale and leaseback of farmland can be used to reduce debt, enhance cash flow management, and strengthen the financial health of the farming operation.
Continuity for the next generation:
Operators who want to farm should not be excluded because of capital barriers . By leasing land back to farmers, Crescero provides them with an opportunity to scale or start their operations without incurring the financial burden of purchasing farmland.
Contributing to global food security:
By keeping farmland productive and family-operated, Crescero helps ensure that Canada continues to provide the world with essential food.
Preserving natural capital:
At Crescero, an essential part of our land management strategy is to optimize farmland by enhancing natural capital in partnership with our farm family operators. This both increases long-term returns to investors and reduces the risk of the asset class.
Embracing the Road Ahead
The coming decade represents both a challenge and a generational opportunity. Canada is on the cusp of the largest wealth transfer in its history representing over half a trillion dollars in farm real estate value.
Private capital has a critical role to play. Leasebacks, shared-equity partnerships, and joint ventures are practical, proven mechanisms to ensure continuity. When structured thoughtfully, they create true winwin outcomes, whereby investors gain unique access to scarce assets, and farm families are provided with new opportunities.
For investors, this transition of wealth creates a timely opportunity to enter into an uncorrelated asset class. Farm values have continued to appreciate at a steady pace over the long-term, driven by many factors including the increased global demand for food and the rapidly decreasing supply of land to meet this demand. By investing alongside farm families, investors can capture differentiated returns while contributing to one of Canada’s most vital economic and social outcomes.
That is where Crescero Natural Capital seeks to lead – by bridging investors and farm families, safeguarding farmland for future generations, and ensuring that Canada’s natural capital remains a source of prosperity and resilience.