A year has passed since last fall’s economic turmoil, but British farmers still feel the pinch, says a Brandon real estate agent.
Jack Nesbit, who works with Century 21, said that’s why fewer British farmers are considering buying land on the Prairies.
“Things have slowed down a little in this last 18 months since the recession,” said Nesbit, who has been selling Manitoba farms to Britons since he emigrated from Scotland in 1988.
A key factor behind the reduced interest is the decline in the British pound. In 2007, the pound was worth $2.20 Cdn for most of the year. This year, it can be exchanged for $1.75.
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“They’ve got a lot less money to bring over,” said Jim McLachlan, sales representative for Homelife Realty in Brandon.
Since 2001, 57 percent of farmers immigrating to Manitoba came from Britain.
Paul White, spokesperson for Manitoba Labour and Immigration, said British farm business immigration may have decreased recently, but overall numbers are on the rise.
Thirty-seven farm business immigrants arrived in Manitoba from 2001 to December of 2006, while 41 farmers have immigrated to the province since December 2006.
MacLachlan said British farmers who want to come to Canada despite their weakened currency are mostly interested in quality grain land rather than mixed operations.
“At one time we used to sell a lot of mixed farms, they seemed to be a priority,” he said.
However, Roger Manegre, who owns the Remax agency in North Battleford, Sask., said it’s not easy finding good grain land on the Prairies.
“People that were wanting to sell a while back when commodity prices were down are now deciding to hang on for a few years.”
McLachlan has noticed a similar trend, mostly because it doesn’t make financial sense to sell land right now.
“What does a farmer do if he sells his farm?” McLachlan said.
“The interest rates are terribly low and (in) stock markets there’s an element of risk and uncertainty. If you’ve got a million dollar farm and you’re getting two percent interest on it, it’s not a very good return on investment.”
As a result, McLachlan has noticed that more retired farmers are choosing to rent out their land.
Nesbit expects demand for premium grain land will grow stronger, widening the gap between premium and marginal grain land.
