How to Buy Farmland in Canada
Complete step-by-step guide to purchasing agricultural land in Canada. From financing to due diligence, learn everything you need to know to successfully acquire farmland.
The Farmland Buying Process
Determine whether you want passive investment (buy and lease) or active farming. Establish your total budget including down payment (25-35%), closing costs (2-3%), and working capital. Consider property size, location preferences, and desired agricultural use.
Checklist:
- Investment vs. owner-operator decision
- Total capital available (land + improvements + operating)
- Target provinces and regions
- Acceptable property size range
- Preferred crop/livestock type
Contact Farm Credit Canada or commercial lenders to obtain pre-approval before property search. This determines your buying power and strengthens purchase offers. Gather financial documents including tax returns, net worth statements, and business plans.
Checklist:
- Contact FCC and 2-3 alternative lenders
- Prepare 3 years of financial statements
- Obtain credit report and score
- Get pre-approval letter with maximum loan amount
- Understand interest rates and terms
Browse listings on specialized farmland sites, work with agricultural real estate agents, and network with local farmers. Attend farm auctions and estate sales. Focus on regions matching your goals and budget.
Checklist:
- Search online listings (including this site!)
- Engage agricultural real estate agent
- Subscribe to auction notifications
- Network with local agricultural community
- Visit target regions in person
Thoroughly evaluate properties before making offers. Assess soil quality, water rights, zoning, environmental factors, and infrastructure. Review production records, rental history, and comparable sales data.
Checklist:
- Order professional soil testing
- Verify water rights and availability
- Check zoning and land use restrictions
- Environmental site assessment (Phase I minimum)
- Review property surveys and boundaries
- Analyze 5-year production history
- Evaluate infrastructure condition
Submit written offer including purchase price, conditions (financing, inspection, environmental), deposit amount, and closing date. In competitive markets, be prepared to negotiate and move quickly on desirable properties.
Checklist:
- Draft offer with lawyer review
- Include standard conditions (financing, inspection)
- Deposit typically 5-10% of purchase price
- Set realistic closing timeline (60-90 days)
- Prepare for counteroffers and negotiation
Arrange property inspections, soil assessments, and environmental reviews during condition period. Lender will order independent appraisal. Address any issues discovered or renegotiate price if necessary.
Checklist:
- Professional building inspection (if applicable)
- Detailed soil and drainage analysis
- Water well testing (if applicable)
- Environmental Phase I assessment
- Lender's independent appraisal
- Equipment inspection (if included in sale)
Submit final loan application with all due diligence results. Lender underwrites the deal and issues formal approval. Review and sign mortgage documents. Arrange title insurance and property insurance.
Checklist:
- Submit complete loan application
- Provide appraisal and inspection reports
- Review and sign loan commitment
- Arrange property insurance
- Purchase title insurance
- Transfer down payment to lawyer's trust
Meet with lawyer to sign transfer documents and mortgage. Funds are exchanged, title is transferred, and property possession occurs. Arrange for property management or tenant leases if applicable.
Checklist:
- Final walkthrough of property
- Sign all closing documents with lawyer
- Transfer remaining funds
- Receive keys and property possession
- File deed and mortgage registration
- Begin property management or farming operations