New Seeds : How Global Warming is Redefining Canadian Agriculture

The Canadian Praries have traditionally always planted one thing: wheat. So why is it that more and more farmers are opting to plant corn?

Over the past few years, global warming has been shifting the area corn can be grown. What used to only just reach the tops of Montana and North Dakota, the corn belt is slowly extending to reach the fertile fields of Alberta, Saskatchewan, and Manitoba.

This may seem frightening to environmentalists, however from an investment perspective, this could mean some big things for Canadian agriculture. As the global population increases, the prices of staple food commodities such as corn and wheat will go up in price. This means that as the wheat and corn belts are creeping north, Canadian farmers can cash in on what was once a mostly American product, and continue to dominate the wheat industry.
This not only has farmers excited, but investors as well. The increasing land prices within central Canada have caught the eyes of international investors, however they may not all be so welcome to buy as land is seen as a natural resource. Saskatchewan has strict regulations, limiting foreign investors to only buy 10-40 acres of land. Although seemingly harsh, this may actually only strengthen the Canadian economy as investors put their money back into Canadian assets, strengthening the economic recovery.

So what does global warming mean for Canada? We may have less ice and snow, but we’ll most definitely have more food. In the end, this whole warming thing may not be such a bad thing eh?

 

http://www.businessweek.com/articles/2012-11-08/canadas-corn-belt-attracts-the-hot-money

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