Renting vs Selling Alberta Farmland
It’s not actually just Alberta farmers that are faced with the dilemma of selling vs renting prime land. Across Canada, maturing farmers are weighing up the pros and cons of selling-off every last piece of soil, or keeping the land and renting it out to one or several parties. With Farm Credit Canada continuing to report healthy farmland values and market input from trusted sources like The Western Producer, it doesn’t take long to get a clear picture of why Canadian farmers are choosing to hold on to a possession that many are longing to own. Low interest rates and a shortage of available land for purchase has led to land values across the country reporting gains — even in provinces like Alberta where economic stability is being tested. When Alberta farmers balance the advantages of selling their operation outright (only to earn meager returns on any profits) with renting their land (which enables them to still have control of the operation while enjoying the gains of high rental rates), why would they even consider selling such a wanted commodity? According to Ben Van Dyk of Real Estate Centre “land is not coming to market right now and that causes the price to substantially go up.”
Where Does a Shortage of Land Leave Buyers?
With the landscape looking pretty rich for existing farmers and landowners, where does the lack of land for sale leave potential buyers? Competing with farmers who want to expand existing operations, investors looking to add land to a portfolio, and other keen land buyers can make the process of purchasing land a high-stress time. Add to the mix the need to resist just ‘buying anything’ in times of low inventory, and working with an Alberta Land Broker to bridge the rough rapids of land sales just makes sense. Shawn Hansen of Hansen Land Brokers explains that partnering with a land broker provides access to available and potential land. This give buyers the head start they need to secure prime plots.