What You Need To Know About Buying a Farm in Grey County

If you are looking for a Grey County farm for sale and are ready to buy, it’s essential that you review the process and speak to someone with experience in Grey County farms about some of the hidden challenges.
Grey County Farm Buying Guide

Grey County Farms For Sale: What to Consider When Buying A Farm

There are always lots of things to consider when purchasing a property.  Farms are no different – but the things to consider when buying a farm in Grey County are very different from buying a residential home.  Whether a hobby farm, a large acreage, or a working farm in Grey County, you need to be prepared.


Getting a mortgage for a farm can be the biggest surprise to a new farm buyer.  Unlike buying a home, mortgages on a farm require a much larger down payment.  Different banks and lenders have different lending policies for acreages and farms, even with a house.  When a farm is appraised for mortgages, it is often based on the value of the residence on approximately 5 acres, rather than the value of the whole property.  This is the reason why a substantial down payment is required. Contact me to discuss the best way to approach financing a farm in Grey County.

Taxes – HST

HST – HST is often applicable to the sales price on a farm.  It may not apply to the entire purchase price, but often on a substantial portion of the farm sales price.  This additional tax is most often paid by the Buyer.  An additional 13% is a lot of money of the purchase of a farm.  There are ways to mitigate this expense and some farm buyers will even be able to avoid paying the tax altogether.  Contact me for further information on this process.

Zoning and Permits

Zoning – depending on your intended use of your new farm in Grey County, the zoning and permitted uses may impact choosing which farm is best for you.  Whether you plan on renting out the farmland, working the farmland yourself, having livestock, farm-gate sales or an on-farm business there is a lot to consider.  Please reach out to me for zoning information specific to your plans.

Land, Soil Type and Topography

Land – soil type and topography may be an important thing to consider when purchasing a farm in Grey County.  What types of crops is the land capable of producing? What types of improvements to the land may be necessary to generate the most income from a tenant farmer? Is there potential for maple syrup production?  Will soil testing be needed for your farming needs and plans?

Home and buildings

If your Grey County farm has a house then there are the typical home purchase items to address.  Well water quality, septic system information (age and condition) as well as mechanical items such as WETT and TSSA should be addressed in your offer to purchase.  Outbuildings are generally purchased in as condition.  

Grey County Real Estate Agent
Carrie Russell

Royal LePage RCR Realty

As a Realtor ® since 1997, I have been involved in all types of property sales. See how we’re helping our clients find their ideal home or investment property in Grey County. 

Other considerations when buying a farm or hobby farm in Grey County

Availability Of The Local Market

Farming can be fun and also a lot of work. A farm-fresh meal for your family is very rewarding but if you are purchasing a farm or hobby farm in Grey County you should also research potential markets to sell your goods in or at. This can be anything from local farmer’s markets, local businesses, or other community events. Find a list of farmers markets in Grey County here.

Infrastructure Available On The Property

Any potential Grey County farms you view on the market will come with various things that make them more valuable. This could be the infrastructure in terms of buildings like barns, pastures, pens, etc. On the other hand, it could be the infrastructure in terms of farming equipment. Finally, the other alternative is a stockpile of resources such as hay, animal feed, firewood, etc. This isn’t an either-or type of scenario. Your potential farm could have all of the above, none at all, or maybe even some buildings which can be retrofitted to meet the needs of your farm. This is something to keep an eye out for when looking for a farm to buy, and most importantly to factor into your budget. 

Ready to Buy A Farm in Grey County?

When it comes to farms or hobby farms in Grey County, this community has some of the best options. We at Carrie Russell Grey County Real Estate know all there is to know about our local market and what it can offer you and your family.

Buying a farm in Grey County, or anywhere in Ontario is very different from buying a home.  If you are a first-time farm buyer, I have the knowledge you need – with more than 25 years of experience in farm sales in Grey County. 

Farm Buying Guide, Grey County

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