Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: September 28, 2026·Farm Operations
Leasing before buying can be a smart strategy for a new farmer who needs to build experience, test a crop or market, or save for a down payment, and BC's Land Matching Program actively supports these arrangements. A lease lets you farm the land and generate income without the capital cost of ownership, and it can be a stepping stone to a purchase — sometimes on the same parcel, if the landowner is willing to sell.
The terms are everything: the lease needs to cover rent, term length, water rights, who provides equipment and improvements, what happens to the soil, and how the arrangement ends. A land partnership can also include cost-sharing and revenue-splitting, which is more complex than a cash lease but can align incentives for both parties. A short trial lease can tell you whether the land and the operation work before you commit to buying.
If you are weighing lease-then-buy, understand the lease terms and the purchase path before you sign. Read our Buying a Farm guide for the framework, and get legal advice on the lease, because a well-structured lease can be the cheapest way to test a farm — and a poorly structured one can lock you into a bad arrangement.
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.