Trapped UK men looking to Canada
Trapped UK men looking to Canada
UK farmers are caught in a catch 22 situation – to become more efficient they need to expand. But external influences mean those extra acres are often priced out of reach.
A growing number of producers are recognising this and are considering a move across the Atlantic, says Maurice Torr of Canadian real-estate firm Century 21. According to Mr Torr, who specialises in the state of Manitoba, 2000 saw record numbers of British farmers visiting the state with a view to relocating.
Manitoba is one of Canadas most productive agricultural states and covers an area almost three times the size of the UK. Because there is no residential or amenity demand for land and supply is plentiful, values are mainly related to productivity.
A 477-acre stock farm with a six-bedroomed bungalow is available for the equivalent of £120,000 (£253/acre), while grain producers could be interested a 1275-acre arable farm, on the market for around £385,000 (£303/acre).
Popular buys
Dairy farms have been a popular purchase with newcomers to Canada, but the increasing price of quota has slowed this trend.
Quota cannot be leased and currently costs the equivalent of 80p/litre. Milk sells for about 22p/litre. Inclusive of quota and 41 cows a good quality 273-acre unit is on sale with Century 21 for £560,000.
Buyers with roll-over money can offset farm purchases in Canada against capital gains liability, providing certain conditions are met. Those with a large sum to invest might like to take on 5500 acres of top class arable land for £1.8m, still only £311/acre.
However, Canadian commodity prices are also under pressure and input costs are rising. The countrys farmers are largely unsubsidised and grain producers are stuck between the heavily subsidised markets of the US and Europe.
Mr Torr believes people should not make the move based on profits alone. "Canada offers a whole new way of life," he says and urges at least two visits at different times of the year before taking the plunge. Winter temperatures regularly dip below -20C.