Spring is here and warmer weather is right around the corner (fingers crossed). This means our Southern Alberta ranchers are likely calving in full swing while our farmers are planning and prepping for their 2024 growing and grazing season.

Part of these preparations may involve purchasing farmland. As land values continue to rise, buying farmland may be a good investment for your operation and long-term planning goals.

If you’re planning on purchasing farmland, here are some details to consider:

1. Type of Land – are you buying Deeded or Leased land?
   1.  The type of land you buy will have specific transfer requirements.
2.  Ownership – will you buy the land as an individual or through a corporation? Joint tenants or tenants-in-common? There are legal and tax considerations for all forms of ownership.
3.  Purchase Price – is the purchase price inclusive or exclusive of GST?
4.  Allocation of Purchase Price – what does the purchase price include? If there are buildingsor improvements on the land, it may be beneficial to allocate the purchase price between the land and building(s).
5.  Closing Date – when will your deal close?
6.  Adjustment Date – will rent, taxes or other income related to the lands be adjusted as of a certain date?
7.  Conditions – is the deal conditional upon the buyer obtaining financing?
8.  Water Rights – are there water licenses or permits that need to be transferred to the buyer? While it is often assumed water licenses run with the land, they often need to be transferred separately to the new owner.
9.  Surface Leases – if the land you are buying receives surface lease income, the lease(s) will need to be assigned on completion of the transaction to ensure future payments go to the new owner.

If you’re considering a farmland purchase, our agri-business team can help you navigate the transaction, to ensure your investment is protected.