It isn’t just the residential real estate market where high prices are causing a problems.
A new Vancity report says high prices for agricultural land are a threat to local food production and security.
The report says prices for agricultural land have spiked sharply, in many cases vastly exceeding a price per acre for making farming viable.
It found prices, in part, may be driven up by speculation on Agricultural Land Reserve property.
On top of that, farmers who do buy land and carry mortgages have prohibitive production costs in order to pay the bills, which would result in massive price hikes for produce, if the costs were passed on the consumer.
The Vancity report says in just the last year, prices for fresh vegetables rose 26% and for fruits prices went up by 9%.
The reports suggests several things: increasing farming on ALR land, governments working together to address land prices, governments bringing in tax incentives to encourage farming, and government strenghtening the Agricultural Land Commission.