Saskatchewan’s Agricultural Advantage
Saskatchewan is often called the “breadbasket of Canada” for good reason. With nearly 40% of the country’s farmland, the province plays a vital role in feeding both domestic and international markets. Whether you’re a first-generation farmer looking to start out or a seasoned producer ready to expand, purchasing farmland is a major investment—and finding the right financing strategy is key to long-term success.
Financing Options for Farmland
Farm Credit Canada (FCC)
Farm Credit Canada is one of the most widely used lenders for agricultural purchases in Saskatchewan. As a Crown corporation, it specializes in supporting farmers with flexible repayment schedules, long-term loans, and financing not only for land but also for equipment, livestock, and infrastructure.
Canadian Agricultural Loans Act (CALA) Program
The CALA program is a federal initiative that helps farmers by offering government-backed loan guarantees. It’s especially valuable for young farmers who may not have built up large equity but still need access to competitive financing.
Commercial Banks
Major banks such as RBC, Scotiabank, and CIBC all offer farmland mortgages. Some programs are tailored for intergenerational transfers, helping families pass farmland to the next generation with options like equity gifting or vendor take-back financing. These products can be a good fit, but lenders often require a strong business plan and a healthy down payment.
Credit Unions and Local Lenders
Many Saskatchewan credit unions, such as Affinity and Cornerstone, provide agricultural financing built around the realities of prairie farming. They often understand the seasonal nature of farm cash flow and can offer competitive terms, lines of credit, and leasing options.
Alternative Models: Leaseback & Equity Partnerships
Some producers are choosing non-traditional financing paths. Leaseback programs allow farmers to sell land to an investment group and lease it back, unlocking capital while maintaining operational control. Others use equity partnerships to spread risk and provide additional financial flexibility.
Preparing to Finance Farmland
- Get Pre-Approved
Before making an offer, secure pre-approval to understand your borrowing power and position yourself as a serious buyer. - Gather Documentation
Lenders will want to see financial statements, tax records, and details about your operation or business plan. Having everything organized speeds up the process. - Compare Terms Carefully
Interest rates, down payment requirements, and repayment structures vary widely. Choose financing that aligns with your farm’s cash flow and long-term goals. - Understand the Rules
Saskatchewan has farmland ownership regulations, including restrictions for non-residents. It’s important to confirm eligibility and ownership structures before moving forward. - Plan for the Future
Financing should be part of a bigger strategy that considers expansion, succession planning, and market cycles.
Financing farmland in Saskatchewan isn’t a one-size-fits-all process. From traditional bank loans to government programs and creative leaseback options, today’s buyers have more choices than ever before. The best financing solution will depend on your goals, your stage of farming, and your appetite for risk. With the right approach, securing farmland here isn’t just a purchase—it’s an investment in one of the most reliable agricultural regions in the world.
