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Be prepared before buying more farm land

Mar. 23 2015 - Alberta Agriculture and Rural Development (AARD) has developed a fact sheet that can assist producers in their decision to purchase more farm land.

"Interest rates remain low and, athough some farms have experienced some cash flow problems, the majority of Alberta farms have a strong balance sheet and are interested in purchasing additional land, should the opportunity arise," Rick Dehod, farm financial specialist with AARD, says. "A well-researched financial plan will guard against ill-prepared choices, so do your homework before making a final decision."

The fact sheet 16 Questions to Consider before Buying Farmland is designed to help producers make the decision on a purchase. 

"Buying land in this market is an important decision, and will impact your farm business," Dehod says. "Use all of the resources available to do your financial and cash flow planning. Speak to your banker, your accountant or your farm advisor. Speak to your lawyer regarding issues that could affect title ownership. A strong purchase plan will aid in making the purchase of land a good investment."

For more information, visit the Farm Manager Homepage or call the Ag-Info Centre toll-free in Alberta at 310-FARM (3276).