St. Thomas farmer struggles with province's 'lowball' expropriation offers

Richard Andrews is a straight-talking, fourth-generation farmer near St. Thomas with a simple question for the Ontario government: Why are they offering him below-market rates for land they need for a highway expansion? 

"It's causing some upset for sure, it really takes away from that peace and harmony you get with farming," he said. "We have a lot of unanswered questions." 

Andrews and his wife Susan live on a 218-acre farm that stretches from Wellington Road in the east to where Ron McNeil Line bends south near the Wonderland Road intersection. He owns other parcels of land that the province is moving to expropriate, including a section west of Ron McNeil Line where Andrews' daughter lives with her young family.

The land Ontario's Ministry of Transportation (MTO) wants to acquire from him adds up to 42 acres in total. It's a significant chunk of land Andrews said is not only productive, but has been in his family since the 1830s. Other land owners in the area are also facing expropriation. 

Andrews's farming operation includes about 80 head of beef cattle and some chickens, along with a rotating mix of cash crops such as soybeans, corn and hay. 

The province wants the land to build a new cloverleaf interchange that will connect Wonderland Road with an expanded Highway 3. Right now the roads meet at odd angles. Traffic in the area is growing with the Amazon logistics plant nearby and the Volkswagen PowerCo battery plant under construction on the other side of St. Thomas. 

In a statement to CBC News, the ministry said the road upgrades are needed to "improve road safety and keep people and goods moving across southwestern Ontario."

'Lowball' offers from province for farmland

As the expropriation process plays out, Andrews has been in talks with MTO officials since 2022. His main concern is their offer, which he said has been between $16,000 to $17,500 an acre. That's well below the going rate for farmland in the area and doesn't account for the loss of revenue to his farm that would come with the forced sale, he said. 

In a statement to CBC News, an MTO spokesperson said the ministry hires an accredited, third-party property appraiser to provide an independent estimate of the current market value of land they seek to buy. 

MTO also said the highway expansion "will support economic growth in the growing region."

"We understand this process can be difficult for all involved and are working directly with the family to discuss their concerns," the statement said.

Ryan McLean evaluates property for Prime Farms, a real estate brokerage that specializes in agricultural land. 

While everything from soil chemistry to drainage can affect the value of farm land, McLean said the offer seems well below market value. 

"There's no way they're going to find replacement land there for $16,000 an acre," he said. "That's a very low-ball number." 

Farm Credit Canada (FCC) prepares an annual report on farm prices across Canada, broken down by region. In 2023, FCC reported a median price for that around St. Thomas, based on sales during the year, at just over $23,000 an acre.

Also, the FCC reports that farm prices in the region have increased each year since 2021.

Local MPP wants landowners treated with fairness, respect

Rob Flack, the area's Progressive Conservative MPP, said he's heard the concerns from some landowners in the area. 

Flack said he has to remain at arm's length from the negotiations with land owners, but said he's in regular talks with the transportation minister about the process. 

"What I expect in the process is people to be treated fairly and respectfully," said Flack. "I am talking to the transportation minister on a regular basis." 

The area's rapid growth is going to come with growing pains, including the expropriations, Flack said. 

Meanwhile, Andrews is expecting the expropriation to be registered later this month, which means the province is moving closer to legally owning the land. The negotiations over the purchases will continue and the process provides Andrews with a lawyer and land appraiser at no expense to him. 

He's hoping the province will move toward a number that fairly compensates him for the loss of productive land. 

"Our plan has been for years to not sell land. If anything, we'd like to increase the size of the farm," he said. 

Whittling away at the size of any farm makes it less profitable, which can hinder the chances of keeping it in the family, Andrews added. 

"That's the dream of every farm family, to pass it down to the next generation," he said.