Many of our neighbours are facing one of life's biggest transitions — selling the farmland they've poured their hearts into for decades. More than half of Alberta's farmers are over 55, and many are looking to move on within the next few years. That means billions of dollars in farm sales will be happening all across our province.
While the majority of buyers you deal with are honest, there are people looking to take advantage. Even deals that seem rock-solid – including those recommended by people you've known for years – might not always be what they appear.
Why You Might Be Vulnerable When Selling Your Farm
As farmers, we often trust and rely on our neighbours. Unfortunately, scammers know this and try to pose as one of us to earn your trust.
You're also dealing with more cash than usual. You may become overwhelmed and excited by having this much money, but these high emotions are what criminals prey on. When emotions are running high, it can be harder to make clear-headed decisions.
Scams We've Seen Target Our Farmers
Property Sale Scams
After you sell your farm, you might suddenly meet new "friends" offering financial help.
The "Expert" Mortgage Broker: "I help farmers like you make their money work. I can get you 12% returns on private mortgages, guaranteed!" What they don't tell you is that these mortgages don't actually exist, and your money disappears.
Title Fraud: Some scammers try to steal your property's value before you even sell it by using your personal information to fraudulently transfer ownership.
The Reverse Mortgage Salesperson: After selling your main property, someone might approach you about your remaining land: "You can stay in your home AND get cash every month!" They then bury financially crippling fees in the fine print.
Investment Scams
After your farm sale, there may be individuals who approach you to help you handle your newly acquired funds.
The Financial Advisor: "I specialize in helping farmers invest their sale proceeds!" But they have no license, no credentials, and your money has no protection.
The Bank Security Caller: "We've noticed your recent large deposit and need to move it to a secure account right away." Your real bank would never make this call.
The Government Tax Official: "There's a special farm sale tax you need to pay immediately." Government agencies don't call demanding immediate payment like this.
The "Neighbour’s Reference" Con
These scams exploit what makes rural Alberta special – our sense of community.
The "Friend of a Friend" Buyer: "Bob Johnson mentioned you might be selling. I've been looking for exactly this kind of property." Except Bob never mentioned a thing, and this buyer has a plan to take your property or money.
The Community Investment: "Everyone is investing in this opportunity. The Smiths put in $50,000 already!" These scammers use familiar names to make you feel you're missing out on a big opportunity with your new funds.
Making Sure You're Getting Help From the Right People
Just like you wouldn't buy a tractor without checking if it runs right, you shouldn't trust someone with your life savings without making sure they're real.
How to Check If They're Legitimate
Are they registered?
Mortgage brokers and real estate agents need a licence to operate in Alberta. Do a public licence search on RECA's website to make sure their licence is current.
If you are looking to invest the money from your sale, it's as simple as typing their name into the Alberta Securities Commission's search tool. Verify if someone is legitimate at checkfirst.ca.
Questions to Ask Anyone Handling Your Money
- "How do you get paid?"
- "Have you worked with other farmers selling their operations?"
- "Can I talk to some of your other farm clients?"
- "How will you make sure I don't run out of money in retirement?"
- "Are you legally required to put my interests first?" (The answer should be yes)
When to Be Suspicious
Your instincts have served you well on the farm – trust them with your money, too. Watch out when someone:
- Promises returns that sound too good to be true
- Pushes you to decide quickly
- Won't give you paperwork or clear explanations about fees
- Can't explain their investment strategy in terms you understand
- Claims they have a "special" opportunity just for select people like you
Get Another Opinion
Before you commit to anything, talk to someone else in the financial world who doesn't know the first advisor. You can also run it by your accountant or lawyer to get their insights. Bring a family member or trusted neighbour to meetings; a second set of ears helps.
Your Farm Sale Game Plan
Just like you wouldn't harvest without planning, don't sell your farm without having a strategy. Here's a plan you can use to keep you and your money safe:
Before You Sell
- Before you even list the property, make sure you have:
- A lawyer who knows farm real estate (not just any lawyer)
- An accountant who's handled farm sales before
- A financial advisor who understands what farmers are going through
- Also, make sure the person buying your farm is financially able to do so. Ask for proof of financing or a substantial deposit.
After the Sale
- When someone suddenly shows up with a "great opportunity":
- Give yourself a three-day rule: no financial decisions without sleeping on it for three nights
- Write down what they're offering and who they claim to be
- Run it by your trusted advisors before signing anything
- Keep your banking safe:
- Use passwords that are strong and unique for each account
- Ask your bank to notify you about any transactions over $1,000
- Never give your banking information to someone who calls you
- If your bank suddenly changes how they do things with you, be suspicious
- Be careful online:
- Don't do banking on public WiFi
- Set up two-step verification
- Don't click on links in emails that appear suspicious
That land you're selling isn't just acres and buildings – it's where you raised your family, where you faced droughts and celebrated bumper crops. The money from that sale isn't just dollars and cents – it's your legacy, your retirement, and your children's future.
If you are in the process of selling your farm or considering it for the near future, remember:
- Don’t let anyone rush you into making a decision
- Check their credentials and viability
- If it sounds too good to be true, trust your gut – it probably is
- Your lawyer and accountant are like the fences on your property – they help keep the bad stuff out
By looking out for each other and keeping some best practices in mind, you can make sure that you keep your finances safe from scammers before and after you sell your farm.
May 01, 2025