Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: September 2, 2026·Buying Farmland
An Environmental Farm Plan (EFP) is not a legal requirement to buy farmland, but it can be a valuable due-diligence tool and a condition some buyers, lenders, or programs look for. An EFP is a voluntary, confidential assessment that identifies environmental risks and best practices on a farm, such as manure management, riparian setbacks, and watercourse protection.
For a buyer, knowing whether the seller has an EFP, and what it flagged, can reveal environmental issues before you own them. Some funding programs and farm-insurance providers also look favourably on a completed EFP, so it can affect more than just due diligence.
I do not treat an EFP as a deal-breaker either way, but I do help clients ask the right environmental questions, because riparian areas, old fuel tanks, drainage, and watercourse setbacks can all become liabilities. Read our Due Diligence guide for the full checklist, and consider an EFP as part of a thorough review.
Important: This answer is general professional guidance for educational purposes and is not legal, tax, financial or regulatory advice. ALR rules, water licensing, zoning and farm-classification requirements can change and depend on your specific property. Always verify with the relevant BC authorities and qualified professionals before making decisions.
Gurjit Ghai, REALTOR®
Personal Real Estate Corporation
Brokerage: Rexara Realty Inc.
Gurjit Ghai is a BC real estate professional specializing in agricultural land, ALR properties, and farm operations across British Columbia. He helps buyers and sellers navigate water rights, soil capability, farm classification, and the unique due diligence that farmland transactions require.