Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: October 24, 2026·Buying Farmland
Soil is the one asset a farm cannot replace. Unlike a building or a fence, contaminated or degraded soil cannot simply be rebuilt — remediation can be slow, expensive, and in some cases indefinite. For a farmland buyer, environmental due diligence is not a formality; it is the difference between buying a productive asset and inheriting a liability. Here is how to approach it.
Where contamination risk comes from on farmland
Contamination on agricultural land most often comes from the property's own history or from neighbouring uses. Common sources include old fuel-storage tanks (heating oil, diesel), pesticide and herbicide storage and mixing areas, former orchard sites with a long spray history, livestock operations with nutrient or manure handling, and dumps or burn pits used over decades. Neighbouring industrial or former industrial sites can also affect a parcel through groundwater migration.
The Phase I Environmental Site Assessment
A Phase I Environmental Site Assessment (ESA) is a records-based, non-intrusive review of a property's environmental history. A qualified consultant reviews historical aerial photographs, land-use records, and regulatory databases, walks the site, and identifies recognised environmental conditions — indicators that contamination may be present. A Phase I is the standard starting point for environmental due diligence on a property with any industrial or intensive-agricultural history.
Phase I vs. Phase II
A Phase I identifies potential risk through records and observation. A Phase II takes samples — soil, groundwater, or vapour — to confirm or rule out contamination. A Phase I that flags recognised environmental conditions typically leads to a Phase II before closing. Neither is automatic for every farm; order them when the property's history or use justifies the cost.
What to check before ordering a formal assessment
- 1Historical use: request any records of prior uses — orchards, intensive livestock, commercial storage, fuel tanks, or dumps. Long aerial-photo history often tells the story.
- 2Underground storage tanks: ask about known or former fuel tanks, including heating-oil tanks for farmhouses and outbuildings.
- 3Storage and mixing areas: pesticide, herbicide, and fertiliser storage and mixing pads can carry residual contamination.
- 4Neighbouring land: identify adjacent or up-gradient properties with industrial, fuel, or intensive operations that could affect soil or groundwater.
- 5Site and Soil Contamination Registry: check provincial contaminated-sites records for the property and nearby parcels.
- 6Well and water-quality records: if contamination is suspected, groundwater testing can confirm whether it has migrated.
ALR land and soil placement
On Agricultural Land Reserve land, the placement, removal, or importation of soil is itself regulated. Bringing in fill of unknown origin can introduce contamination; removing topsoil degrades the agricultural asset. If a property shows signs of unpermitted fill or soil movement, that is both a compliance question (under ALR rules) and an environmental question — investigate both.
Making environmental review a condition of the offer
For a property with any plausible contamination history, environmental due diligence should be a condition of the offer — not an afterthought. A typical condition is satisfactory completion of a Phase I (and, if it recommends, a Phase II) at the buyer's expense by a date certain. The cost of a Phase I is modest relative to the purchase price; the cost of undisclosed contamination is not. Talk to a qualified environmental consultant and your real estate professional about structuring the condition.
Important: This information is educational only 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 and circumstances. Always verify with the relevant BC authorities and qualified professionals before making decisions.
Frequently Asked Questions
- What is a Phase I Environmental Site Assessment?
- A Phase I ESA is a records-based, non-intrusive review of a property's environmental history — historical aerial photographs, land-use records, regulatory databases, and a site walk — used to identify recognised environmental conditions that may indicate contamination. It is the standard starting point for environmental due diligence on properties with industrial or intensive-agricultural history.
- Do I need a Phase II before buying farmland?
- Not always. A Phase II (sampling) is typically ordered when a Phase I identifies recognised environmental conditions that warrant confirmation. For a property with no industrial or intensive-use history, a Phase I may be sufficient. For a former orchard, fuel-storage site, or intensive livestock operation, a Phase I followed by a Phase II is often appropriate. Tailor it to the property's actual history.
- What are the most common contamination sources on BC farmland?
- Old fuel-storage tanks (heating oil, diesel), pesticide and herbicide storage and mixing areas, former orchard spray history, livestock nutrient and manure handling, and historic dumps or burn pits. Neighbouring industrial or former industrial sites can also affect a parcel through groundwater migration.
- Can you bring fill onto ALR land?
- On Agricultural Land Reserve land, the placement, removal, and importation of soil is regulated. Fill of unknown origin can introduce contamination, and removing topsoil degrades the agricultural asset. Unpermitted fill or soil movement is both a compliance concern under ALR rules and an environmental one — investigate both.
- Should environmental due diligence be a condition of my offer?
- For any property with a plausible contamination history, yes. A typical condition is satisfactory completion of a Phase I (and, if it recommends, a Phase II) at the buyer's expense by a date certain. The cost of a Phase I is modest relative to the purchase price; the cost of undisclosed contamination is not. Discuss structuring the condition with a qualified environmental consultant and your real estate professional.
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.