Agriculture Versus Residential

As specialists in the agriculture sector of the real estate market, we are often asked if the market for farms and acreages follows the residential real estate market in its ups and downs. The simple answer is, yes, it does follow the changes of the residential real estate market.

It has been our experience at BC Farm and Ranch that for the most part if the residential real estate market is active and trending upwards, that the agricultural real estate market will follow. The properties most effected by the residential market are the hobby farms and estate acreages. These types of properties have a larger focus on the residential aspects of the land in comparison to the income producing aspects that are considered important in commercial farms.

Commercial farms such as dairies, poultry farms, produce farms, greenhouses, etc. are also impacted by the residential real estate market but to a lesser degree and often don’t experience the extremes that residential properties can. The Commercial farms and the larger amounts of financing they require are also largely affected by trending interest rates and outside forces like the exchange rate of the Canadian Dollar and International Trade Agreements.

Of course, there are some big differences between the agricultural and residential real estate market. Agricultural properties are higher in value, usually have much more land involved, and in many cases have equipment, buildings and inventory to be taken into consideration. That’s why it is so important to work with a brokerage whose sole focus is properties in the farming sector. We understand the differences, the timing, and the industry specific needs of agriculture real estate.

Our clients range from people just entering into the farming community to big corporations looking for their next investment. So if you have been curious about the agricultural real estate market and either how to get involved or what your property might be worth today, contact us. We can help you navigate through and meet your individual needs.

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