Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: September 9, 2026·Buying Farmland
A farm is valued on a combination of the land, the improvements, and the farm's productive capacity, and the comparable sales that matter most are recent sales of similar agricultural property in the same region, not residential home sales. A comparable needs the same soil class, water rights, acreage range, and farm type, because a vineyard and a hay farm are not comparable even if they are next door.
What I see go wrong is a buyer using a residential appraisal or a nearby home sale to value farmland, which misses the agricultural drivers: soil capability, licensed water, ALR status, quota, and drainage. A farm with Class 1 soil and secure irrigation is a different asset class from a Class 5 parcel with no water licence, and the comparable set has to reflect that.
When I help a client value a farm, I pull agricultural comparables and weigh the water and soil differences, not just the price per acre. Read our Farm Valuation guide for the framework, and treat valuation as a due-diligence step before you set your offer price.
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.