The Future of Mega Farms

The Future of Mega Farms
Jul 04, 2025
By Mathew Murphy
Assistant Editor, North American Content, Farms.com

Canadian farmers debate whether large-scale corporate farms are a sustainable evolution or a risky overreach.

The rise of mega farms in Canada has farmers talking, and not all of them are convinced it’s a good thing.

In a wide-ranging thread on Agriville.com, producers debated where large-scale farms are headed, what risks they face, and whether this model is sustainable.

“It’s a long game. Anyone thinking of building a mega farm in five years or less is in for a surprise,” said one poster.

Many agreed that large operations are viable today thanks to high land values, low interest rates, and outside capital—but that could change quickly.

“Large farms owe more than anyone can possibly imagine,” one farmer said. Another added, “Million-dollar pieces of equipment are common these days. People think, ‘He’ll never pay for it,’ but somehow they just keep upgrading.”

The concern? Many are running on tight margins, heavily leveraged, and exposed to shifts in land prices or interest rates.

“Leverage works well—until it doesn’t,” warned another.

Several offered stress-test scenarios: farmland drops 20–60%, borrowing costs rise by 2%. “Will lenders act like they did in the last crisis?” one asked.

Investor involvement was another worry. “Foreign companies are doing this in real estate. What makes you think farmland is immune?” one user asked. Another said bluntly, “Farming can be run as perpetual tax avoidance.”

Still, some see big farms as a natural evolution.

“Stick to your knitting,” one farmer said. “Fill every job that isn’t dependent on you.” Others endorsed hiring outside help: fractional CFOs, agronomists, and legal teams.

But not everyone buys the idea that staff can replace an owner’s drive.

“You really think hired management cares like someone whose name is on the title?” one asked. Another added, “You can’t train someone to care like a farmer who’s been through the hard years.”

Succession was another concern.

When there’s no clear heir, land often ends up in the hands of other big players, colonies, or investor groups. “That land’s not going to a small farmer. It’s gone for good,” one said.

There was even talk of trouble for some big operators: “Did Monnette have to sell off a few large parcels this spring?” one asked. Another claimed they dumped “2 X9s, headers, 2 sprayers, 2 tractors, and a baler” in Saskatoon.

As one poster summed it up: “The biggest risk? Rapid expansion. That looks different for everyone—1,500 acres for some, 10,000 for others—but bite off more than you can chew, and it’ll catch up with you.”

Whether mega farms are the future or a high-stakes gamble, Canadian farmers are watching closely—and they’ve got plenty to say.

Check out the entire thread, the future of mega farms, and join the discussion!