Are you interested in buying farmland?
If you are buying Saskatchewan Farmland there are a couple things to consider before taking the plunge.
- Talk to your banker! In Saskatchewan, FCC is a well-known farm lender, financing approximately 50% of farms in Canada. They are a very good lender but definitely not the only lender. There are many other conventional lenders who may be willing to lend at a more competitive rate.
- When purchasing “raw land” you will be required to put down 25% of the purchase price. You maybe required to put down even more. Speaking to a professional who has a good working history on these types of land purchases can guide you to making the best financial decision for you.
- Hire a professional! Farmland value has a whole new language that differs from a conventional house purchase. Most people know a double car heated garage brand new is a much more valuable asset than a double car garage built in 1970. How does one make these value judgments on raw land?
- Dirt is dirt, is it not? The funny thing is there are a whole lot of different types of dirt. Hiring a professional that specializes in farmland walks you through the sometimes confusing intricacies that distinguish how a piece of land may be valued. This can include soil classifications and arable/waste acres. However, there are also considerations like crop rotations and local lease rates.
- A professional can explain the land values as well as increase your awareness of any drawbacks.
Take a look at this video from the FCC about the 2017 Farmland Values Report. The 2018 report will be out in the next few months with more up to date information.
Are you thinking of buying Saskatchewan Farmland? We would love to share our knowledge with you. Contact Ted Cawkwell at 1-306-327-7661 or ted@cawkwellgroup.com.
