Canada is entering a large generational transfer of assets. More than 60% of farm operators and 62% of SME owners are now over the age of 50, yet relatively few have formal succession plans in place. As these owners approach retirement, a significant portion of Canadian farmland and privately held businesses will need to transition to new owners.
This demographic shift is creating a structural tailwind for two areas of the private markets. In agriculture, the rising average age of farmers and limited entry from younger operators is accelerating farmland consolidation and increasing the role of institutional buyers. At the same time, the lower-middle-market business landscape is facing a similar transition, with roughly $2 trillion in SME assets expected to change hands over the coming decade.
The same underlying force is driving both trends. Aging operators without clear successors are expanding acquisition pipelines across farmland and small-business private equity, creating a long-term source of deal flow for institutional capital.