Buying farmland: key factors you should know before buying

A while ago I talked to a couple of people about buying farmland. In this post I am going to highlight the key points from that conversation. I thought it would be a great way to get the gist of the conversation for those who don’t have the time to watch it all.

Consider this the Coles notes of the conversation.

Key points about buying farmland

  • Look for agricultural zoning property( A1 for Ontario, Canada.)
  • If you are looking for a house, you need to make sure you have access via the road.
  • Know what type of soil you have. Clay loam is considered the best type of soil to have.

  • Where’s the farm located. F

    armland is being bought because of location and not workability.

  • If farmland already has drain tileage, it will drive up the price.
  • Will the farmland drain on its own without tile drainage, so you won’t lose crops due to water.

  • Some areas have specific laws around adding tile drainage.

  • Tile drainage is worth looking into when you’re buying farmland

  • Is a property systematically tiled.

buying farmland

  • Make sure the farmland is not rocky.
  • You need to consider how much of the farmland considered workable land.

  • You need to consider about the heat units in your area.

  • Consider the growing season of the farmland your buying.

  • A lot of land is auctioned to get the best price.
  • Check out your well on the property to make sure it is drinkable water.
  • Have a farm business plan in place before you buy a farm.

  • Join a community to learn more about farming in your area.

  • Don’t get in over your head.
  • Don’t be afraid to ask for help if you need it.
  • You can take over an existing farm.
  • Read Farm Credit Canada reports.
  • Make sure the farmland is  in the proper tax bracket.

Final thoughts on buying farmland

Buying farmland is a very hard decision to make, and there are many things to consider. In the video we only discussed a few of the many aspects of buying farmland.

One of the main things that was talked about was having a plan before you start looking to buy. Also, recognize that farming isn’t easy work it takes a lot of dedication as well.

If you liked this this post, leave a comment with your key factors to look at when buying farmland.

Comments

  1. Katherine says:

    Thank you. it is very helpful for me.

    • Excellent. I am glad that you found it helpful.

      I know many new farmers aren\’t sure what to look for, so I hope that it gave you some additional insight.

  2. It helps me a lot. It really makes sense to read and learn before starting the farming business. Thank you!

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