Commercial farming on residential plots is not permitted in Vancouver, yet urban farming is a growing movement that would support local, independent business and encourage sustainable land use and reduced transportation of goods. It would stimulate local economies by re-circulating money and possibly creating an income multiplier effect according to research done by Chris Hild. It would also enable farmers to sell directly to customers and eliminate handling fees.
There is another use for the word "densification" and that is by densifying the use of land not just the people that can live on it. This would be a start.