Land is a precious asset for any country, just like gold. And we can't produce more of it.

As farmland prices rise, some Canadian provinces are feeling compelled to take action. According to Farm Credit Canada's most recent report, average farmland values in Canada showed a 14.3-per-cent increase in 2014, compared to a 22.1-per-cent increase in 2013 – and farmland in Saskatchewan increased the most in value.

Indeed, although the province already has laws restricting foreign investors from acquiring farmland, Saskatchewan has recently decided to no longer allow pension plans, administrators of pension fund assets and trusts to purchase land – an interesting move coming from a government enamoured with the free market. The Canada Pension Plan Investment Board is among those who have registered concerns about the decision, but given how food security is affecting the entire globe, this issue will not go away any time soon.

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Since the 2008 global food crisis, corporations, funds and governments have shown increased interest in investing in farmland. Prices in Canada have been volatile since 2005, but they have gone up everywhere since 2008. But looking at these hikes, there is a fine line between enhanced farmland stewardship and pure investment speculation. For the future of agriculture everywhere, the latter is much less desirable, since it frequently leads to land grabs and unsustainable price fluctuations for following generations. A sense of local ownership and accountability is key, since it allows for local agricultural economies to fulfill biodiversity needs.

In many parts of the world, land grabbing is a real threat to food sovereignty. But the situation in Canada is far different. In Quebec, for example, the legislative framework is very comprehensive. It requires anyone who wants to purchase land to have stayed in the province for a minimum amount of time before the purchase. Even then, applicants are subject to quotas, and requests for land transfers can be denied. Some provinces, such as British Columbia and Ontario, where restrictions on foreign ownership do not exist, could learn a thing or two about Quebec's approach.

Some groups in Quebec remain concerned about land grabbing, which is nonsense. By some estimates, less than 2 per cent of Quebec farmland is owned by groups outside the province, so it is safe to say there is little or no speculation happening.

But the notion of high farmland prices certainly speaks to how we can support future rural entrepreneurs. For the sake of wealth creation, farmland prices should and must go up, but at a reasonable pace. To give the next generation of farmers a chance, credit shouldn't become an obstacle for anyone wanting to sustainably exploit Canadian farmland.

Most economists agree that farmland prices in Canada will not fall anytime soon. With interest rates low, this has opened the door to growth-seeking non-agricultural investors who want to speculate on arable land. Compared to many other options, farmland is essentially a low-risk proposition. As such, speculation is are not surprising. To suggest that only members of the farming community should be allowed to buy land would be inappropriate. Non-agricultural stakeholders should be allowed access, but strategic intents should clear from the outset.

Even though younger generations of farmers are not as concerned about ownership as past generations, investing in land remains a constant, so financial access remains key.

Farmland management cannot remain unchecked. Any government that opts to overlook such an important part of its agricultural policy would be deemed irresponsible. Therefore, Saskatchewan should be applauded for its demonstration of concern, whatever its entrepreneurial track record.

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Nonetheless, land grabbing remains a problem. And so Canada ought to play an increased role in providing guiding policy principles for countries where it is a concern. Canada and other developed economies should also offer support to countries with looser legal regimes, so they can improve farmland governance practices and prevent abusive behaviour.

Sylvain Charlebois is a professor at the Food Institute at the University of Guelph.Sylvain Charlebois is a professor at the Food Institute at the University of Guelph.