Demand for Vancouver residential real estate could be putting farmland and food security at risk

The Abbotsford News has a good story out this weekend (July 31) about how the region's farmland is feeling the impacts of a runaway real-estate market.

According to a lengthy article by Tyler Olsen, farmland in the Fraser Valley is going for $60,000 an acre for large parcels and for as much as $100,000 an acre for smaller properties.

Nearby, in the Metro Vancouver region, farmland is even more expensive, the report continues, costing as much as $300,000 an acre.

It's noted that the average price for an acre of farmland across Canada is $5,000, according to Statistics Canada. And, more relevant to the Fraser Valley and the Metro Vancouver region, similarly good-quality farmland located just across the U.S. border is selling for $15,000 an acre.

The significantly higher prices for smaller parcels of farmland in the Lower Mainland is especially noteworthy, the report explains, because there is evidence those smaller properties are not being used for farmland, but simply for residential homes.

Olsen cites a report by Vancouver City Savings Credit Union (Vancity) that found "agricultural land is increasingly being purchased by non-farmers for its residential value, since the ALR [Agricultural Land Reserve]’s rules allow a home on each farm property."

He found a number of examples that support that suggestion.

“Excellent site to build your mansion," reads an ad Olsen found on a for-sale sign for a 22-acre property on Mount Lehman Road in west Abbotsford.

“Build your dream home near town with mountain view," states another sales advertisement for a 26-acre property.

And for a 20-acre parcel of land: “This field awaits your dream home just the way you want it.”

The larger issue at stake—perhaps an issue even more important than the region's obsession with the price of a single-family detached home—is food security.

Olsen reports that B.C.'s agricultural minister has planned to discuss the topics of lost farmland and food security at a conference scheduled for later this year.