The value of agricultural land in Chaudière-Appalaches is skyrocketing

Chaudière-Appalaches recorded the second highest increase in one year, behind Abitibi-Témiscamingue, according to data from the Financière agricole du Québec (FADQ). These lands, rare on the market, are becoming more and more inaccessible to the next generation of farmers.

In the province, the value of land sold increased by 15% in one year. From 2022 to 2023, the average land value increased by 76% in Chaudière-Appalaches Nord and by 41% in Chaudière-Appalaches Sud.

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The next generation of farmers, the big losers

Both for the regional section of the Union of Agricultural Producers (UPA) and for the organization which represents the next generation of farmers in Chaudière-Appalaches, agricultural producers who have less than five years of experience are the most affected by this explosion of land value.

Our succession is limited and, at the prices of our land, we are not capable of producing to make it profitable.mentions the president of the UPA, James Allen, who represents 5,500 agricultural producers in Chaudière-Appalaches.

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Producers say they are worried about the current economic context, which they describe as unfavorable for the agricultural sector and particularly for the next generation.

Photo: Radio-Canada / Maxence Matteau

Tommy Labrie, the vice-president of La Relève agricole in Chaudière-Appalaches, also notes that young farmers are taken by the throat and that the rise in prices becomes a significant obstacle to development.

% down payment to have a loan of 200000$. There isn’t a young person who is capable of going for that”,”text”:”It takes 25% down to get a loan of $200,000. There is not a young person who is capable of getting that”}}”>It takes 25% down to get a loan of $200,000. There is not a young person who is capable of fetching thatpoints out Tommy Labrie. hectares which is already at 1.8million or 2million dollars, he [le producteur de la relève] is suffocated.”,”text”:”When it becomes clear that we have to go find a 10-hectare piece of land which is already worth 1.8 million or 2 million dollars, it [le producteur de la relève] is stifled.”}}”>When it came to the point that we had to go find a 10 hectare piece of land which was already worth 1.8 million or 2 million dollars, it was [le producteur de la relève] is stifled.

We have a lot of trouble getting started, and the bigger ones have a hard time developing too.

A quote from Tommy Labrie, vice-president of La Relève agricole in Chaudière-Appalaches

Supply does not meet demand, according to the UPA

For James Allen, president of the Chaudière-Appalaches UPA Federation, the supply does not meet the growing demand in the Chaudière-Appalaches region either.

If we take all the transactions, a good part took place in Chaudière-Appalaches, so it is sure that it has a real influencerecognizes Mr. Allen, who refers to the report from the Financière agricole du Québec.

transactions retained in 2023, 72% took place in Chaudière-Appalaches, Montérégie, Estrie, Bas-Saint-Laurent and Centre-du-Québec. These regions represent more than 70% of the areas transacted in our sample”,”text”:”Of the 927 transactions retained in 2023, 72% took place in Chaudière-Appalaches, Montérégie, Estrie, Bas-Saint-Laurent and Centre-du-Québec . These regions represent more than 70% of the areas transacted in our sample”}}”>Of the 927 transactions retained in 2023, 72% took place in Chaudière-Appalaches, Montérégie, Estrie, Bas-Saint-Laurent and Centre-du-Québec. These regions represent more than 70% of the areas transacted in our samplewe can read in the FADQ report.

James Allen believes, however, that many factors put his region in second place.

He gives the example of the pressure of the urban environment while larger cities are close to rural areas, such as Lévis and even Quebec. For several years, the Union of Agricultural Producers (UPA) has also been calling for a register of owners.

Who transacts land? Is it really the big landowners who are still buying? […] We speculate on who is buying, but we don’t actually have the profile of the buyers.recalls James Allen while his organization had already raised concerns with the Ministry of Agriculture.

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The Ministry of Agriculture recently conducted public consultations on the protection of agricultural land, the protection of agricultural activities and access to land for the next generation of farmers.

Photo: The Canadian Press / Adrian Wyld

The Ministry of Agriculture, Fisheries and Food also launched a national consultation on the territory and on agricultural activities, which concluded with a regional tour.

A report was published on the ministry’s website in which all the points discussed during this consultation are summarized, in particular the specific question of agricultural property and access to land for the next generation of farmers. These consultations will result in a reform of the Law on the protection of land and agricultural activities.

With information from Louis-Simon Lapointe and Jérémie Camirand

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