Farm Property Tax Incentives and Farm Insurance

There are currently three Ontario “farm tax” programs, found here on the website of the Municipal Property Assessment Corporation (MPAC): Farm Tax Program Overview

1. The Farm Property Tax Class Rate Program
2. The Small-Scale On-Farm Business sub-classes
3. The Farm Forestry Exemption
   
   

Of these, the most commonly used is the…

Farm Property Class Tax-Rate Program: Info here

Active farms in Ontario benefit from a 75% reduction in property taxes on the farmland portion of their land. Fill out the online Eligibility Application as soon as possible.

Criteria:

• Land needs to be farmed
• Be assessed as farmland – check before you buy!
• Owner must have a Farm Business Registration Number (FBRN) or a farming tenant with an FBRN (or exemption)
• At least 50% Canadian ownership

Exemption for new farmers: If you (or your tenant) do not yet qualify for an FBRN, you may nevertheless be eligible for funding and tax reduction programs. You must clearly demonstrate that the property is being farmed and how the farm business will gross $7,000 in future years. The length of the start-up period must be realistic for the commodity produced. 

Other Property Tax programs:

Managed Forest Tax Incentive Program: 75% reduction for managed forest parcels. Info here

Conservation Land Tax Incentive Program: Up to 100% reduction for natural heritage lands. Info here