MLT Aikins’ Calgary lawyers work in agribusiness, commercial real estate and corporate finance. This guide is our own general overview.
Farmland deals in Alberta involve more than a purchase price. Ownership rules, energy infrastructure on the land and family succession planning all shape what is possible.
Who can own farmland
Alberta’s Agricultural and Recreational Land Ownership Act restricts ownership of controlled land by non-Canadians and certain corporations. Larger holdings may need a permit. Buyers structuring through companies should have the structure reviewed before making an offer.
Municipal land-use rules and subdivision requirements also affect what can be done with a parcel.
Surface leases and other rights
Many Alberta farms host wells, pipelines or power lines. These operate under surface leases and right-of-way agreements, and disputes about compensation can be taken to the Surface Rights Board. A buyer should review what is registered on title and what is physically on the land.
Water rights, easements and access should also be confirmed.
Passing the farm on
Transferring farmland within the family raises income tax questions, including whether capital gains exemptions for qualified farm property may apply, and questions of fairness between children who work the farm and those who do not. Planning early with both a lawyer and an accountant is usually essential.
Farmland due diligence
- Check foreign ownership rules if any buyer, or a company owner, is not Canadian.
- Order title and look for surface leases, easements and caveats.
- Walk the land for wells, pipelines and facilities not obvious on paper.
- Involve an accountant before a family transfer.
Firm spotlight: MLT Aikins LLP
MLT Aikins traces its history to 1879 and Sir James Aikins, and is the product of a merger between MacPherson Leslie & Tyerman and Aikins, MacAulay & Thorvaldson. It has more than 300 lawyers and offices across the four western provinces, including Vancouver, Edmonton, Calgary, Saskatoon, Regina and Winnipeg. See the full MLT Aikins LLP profile. Read more from MLT Aikins’ Calgary office page.
Frequently asked questions
Can non-Canadians buy farmland in Alberta?
Alberta restricts ownership of controlled land by non-Canadians, with limits and permit requirements, so the rules should be checked before any purchase.
What is a surface lease?
An agreement, often with an energy company, allowing it to use part of the land for a well, road or facility in exchange for compensation.
Who decides surface compensation disputes?
In some cases the Surface Rights Board.
Is there tax relief for transferring a farm?
There may be, for qualified farm property, so get tax advice before transferring.
When should succession planning start?
As early as possible, ideally years before a transfer.
General information for readers in Alberta, not legal advice for any specific situation. Laws, thresholds and deadlines change, so confirm current rules with a lawyer before relying on anything above. LawDB is an independent directory and is not affiliated with MLT Aikins LLP; firm details come from the firm’s own published descriptions and public listings.
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