Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: September 10, 2026·Financing
Financing farmland is fundamentally different from a residential mortgage, and I prepare my clients for that early. Lenders don't just look at the borrower and the buildings — they assess the land itself: its soil capability, water, income potential, and whether it's in the ALR. A working farm is valued partly as real estate and partly as a productive asset.
Agricultural lending often involves specialist lenders. Farm Credit Canada (FCC) is a federal Crown corporation that lends specifically to agriculture, and chartered banks have agribusiness divisions. Expect more documentation than a home purchase — potentially a farm business plan, financial statements, and details on quota, water licences, equipment and existing leases.
My advice: talk to a lender who understands agricultural property before you make an offer, not after. The financing structure can change your negotiating position. Read our Financing a Farm guide, and treat this as educational information rather than financial advice.
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.