Commentary

Canada’s Housing Crisis: What’s the Cost to Farmland?

June 18, 2021 | Marie Versteeg

Canada’s housing market is under increasing strain, and there are major implications for farmland preservation if land use policies give way to development pressures.

The current housing market craze is largely a result of “a worsening imbalance between supply and demand.” Most buyers are seeking single-family detached houses, but there aren’t enough homes available. Aside from driving up prices, there are other contributing factors: an already severe housing shortage will be exacerbated by the projected increase in immigration over the next twenty years.

There is a lot of land already slotted for development to meet some of that need, but developers interested in building condos and apartment buildings are often stymied by local zoning regulations that limit building heights. Because developers have limited opportunities to build up, their only recourse is to build outward. The result is increased pressure to develop on farmland and forests.

The CFFO has been concerned about the risk that population pressure poses to farmland preservation for many years, but we have also recognized the need for balance in land use planning: land should be put to its best purpose, whether agriculture, ecological preservation or housing. That’s why the CFFO has proposed that all prime agricultural areas (as defined by OMAFRA) be added to the Greenbelt.

But the current demand for affordable, detached housing heightens the urgency of protecting farmland. Under so much pressure, it will take an enormous effort of political will to preserve farmland for the long term, but it’s worth it.

We’re seeing growing recognition that the agricultural industry offers tremendous economic opportunity for Canada. According to a recent report in the Financial Post, experts have identified agriculture as perhaps Canada’s most promising industry, if adequate supports are put in place. The article recommends a number of must-haves to achieve success, including industry coordination, increased processing, research and development, political strategy and extension services. Alarmingly, one thing that didn’t make the list is farmland protection.

In the second largest country in the world, it can be hard to accept that land is a finite resource. But only seven per cent of Canada is arable, much of which is in Ontario. Taking the long view, Canada will better position itself for future economic success if it prioritizes farmland preservation now.

Increasing urban density is one important way our nation can meet the challenge. Canadians have long seen home ownership as an ideal way to live and raise a family, but in other parts of the world, such as Asia and Europe, owning a detached house is far from the norm. We may be witnessing the beginning of a similar trend. Well-planned neighbourhoods with shared greenspace can be excellent places to raise a family, too. Admittedly it takes a big leap in mindset, but let’s not sacrifice our food security for the sake of an untenable ideal.

The CFFO Commentary represents the opinions of the writer and does not necessarily represent CFFO policy. The CFFO Commentary is heard weekly on CFCO Chatham, CKXS Chatham, CKNX Wingham, and CHLP Listowel.