Lorkovic DeKoning Wealth Management
March 31, 2026
Planning Your Farm's Future: Supply Management, Succession & Market Insights
Farm families face critical decisions in 2026. The Spring 2026 issue of Intelligent Farmer addresses succession planning, supply management policy, and market navigation.
Click here to download the full Spring 2026 issue of Intelligent Farmer today
Understanding Supply Management Under Pressure
Canada's $30-billion supply management system has secured food sovereignty for over 50 years. But the system faces unprecedented trade scrutiny, particularly from the U.S. amid CUSMA renegotiations.
The system's three pillars—production quotas, controlled pricing, and import restrictions—support 339,000 jobs and sustain 14,699 supply-managed farms across Canada. Yet tensions mount over policy. Bill C-202 restricts new trade concessions, but debate continues on reform pathways as stakeholders carve out specific areas for discussion, from regional milk pooling systems to quota allotment access.
This issue explores how other countries manage dairy sectors during disruption. New Zealand removed quotas in the 1980s due to a budget crisis, transforming the country into the world's largest dairy exporter. However, this liberalization has driven significant herd consolidation and rising greenhouse gas emissions. The U.K. is transitioning to sustainable agriculture subsidies post-Brexit, imposing financial and administrative burdens on farmers. Brazil, the world's second-largest agri-food exporter, struggles to export dairy despite global opportunities due to domestic infrastructure constraints.
Commodity Markets in Transition
2025 brought geopolitical shocks and unprecedented trade volatility. Looking into spring 2026, key market drivers remain fluid and uncertain.
Soybeans face global oversupply and aggressive Brazilian competition. China-U.S. trade relations dominate pricing dynamics, while renewable fuel mandates continue reshaping demand structures. Corn achieved record U.S. yields meeting record demand in 2025, yet global ending stocks are contracting for the second consecutive year. Brazil's second-crop weather conditions will be critical—delayed planting heightens drought risk and could force world importers to rely more heavily on U.S. supplies. Wheat experienced strong fall and winter export demand, though rising U.S. prices may limit spring competitiveness. Winter cold snaps in Ukraine and Kansas/Oklahoma present winterkill risks requiring spring monitoring.
Southwestern Ontario Farmland: Regional Divergence
Farmland values in Southwestern Ontario remained steady overall in 2025, but significant regional variation emerged. Livestock-dense areas—particularly dairy operations in Oxford and Perth counties, and beef operations in Bruce and Wellington—maintained firm valuations supported by strong livestock margins and declining interest rates. Northern regions like Grey-Bruce also saw solid demand.
In contrast, crop-focused areas southwest of London and along Lake Erie experienced softer demand. Active farm listings increased significantly from three years ago, with many properties failing to sell. As crop margins tightened, buyers became increasingly selective, leaving overpriced farms on the market longer than in previous years.
Looking ahead to 2026, expect similar conditions with flat crop prices and stable interest rates. Livestock areas will likely remain strong while crop regions face continued pressure. The key variable will be vendor response—if sellers lower expectations, overall farmland values could soften regionally.
RBC Dominion Securities Inc. | Lorkovic DeKoning Wealth Management | www.lorkovicwealth.com