Alberta farmers are still keen to buy land, says a farm financial specialist.
“Interest rates remain low and, although some farms have experienced some cash flow problems, the majority of Alberta farms has a strong balance sheet and is interested in purchasing additional land, should the opportunity arise,” said Rick Dehod.
But before making a decision, producers should do their homework, he said.
The province has created a document to help with that. It’s titled 16 Questions to Consider before Buying Farmland. The questions deal with topics such as the business case for buying land, the farm’s financial condition, and the need for analyzing cash flow.
“Buying land in this market is an important decision, and will impact your farm business,” said Dehod. “Use all of the resources available to do your financial and cash flow planning. Speak to your banker, your accountant or your farm adviser. 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.”
16 Questions to Consider before Buying Farmland is available at agriculture.alberta.ca.