Information for new and beginning farmers
New and beginning farmers can take advantage of three government programs for their farm business today. Check out our guide below to learn how each program fits and works with your Ontario Federation of Agriculture (OFA) membership.
Step 1 – ASSESSMENT OF AGRICULTURAL PROPERTY
The Municipal Property Assessment Corporation (MPAC) assesses all properties in Ontario, including farms. As part of the four-year assessment cycle, MPAC sent out an assessment notice to property owners in the fall of 2016.
Things to know:
- Each farm residence plus one acre of land will be classified under the residential property tax class.
- Eligible farmland, farm buildings and dormitories are classified as farm taxable if approved by Agricorp under the Farm Land Tax Program.
- Check your SEFM assessment notice to find out if your agricultural land is classified as “Farm”.
For more information or if you have not received your notice from SEFM, contact them at 1-866-296-6722, or visit https://www.mpac.ca/en/Homepage .
Step 2 – REGISTRATION OF THE AGRICULTURAL BUSINESS
Farmers who earn at least $7,000 in gross annual farm income (as defined by the Canada Revenue Agency) must register for the Farm Business Registration Program (FBR)* the following year. Most crop and livestock income is eligible.
Things to know:
- Annual registration is a requirement for eligibility for certain Ontario government programs, including the Farm Property Tax Program.
- Check with your accountant or the Canada Revenue Agency for farm income eligibility.
- Applications to the PIEA can be submitted online ( https://www.agricorp.com/en-ca/Programs/FBR/Pages/Overview.aspx ). Only Agricorp (1-866-327-3678) can approve them.
- The annual fee for the PIEA is set at $255 (plus GST) for the 2024 registration year.
- Payment of this fee allows you to join the Ontario Federation of Agriculture (OFA) or other accredited general agricultural organization.
Visit the Agricorp website at www.agricorp.com/fbr or call 1-866-327-3678 for more information or to register.
*This is not the same as registering with the TPH.
Once you have completed your Farm Business Registration Program (FBRP) registration process, you must contact the Farm Property Tax Program at Agricorp directly to ensure that the farm tax rate is applied to your farm property(ies). These are two separate services at Agricorp and your FBRP information will not be shared directly with the Farm Property Tax Program.
Step 3 – AGRICULTURAL LAND TAX PROGRAM
Farmland operated by an individual who registers for the PIEA is eligible for Agricorp’s Farm Property Tax Program (FPTP). Those not yet eligible for the PIEA can apply for a start-up exemption until they reach the PIEA income threshold of $7,000.
Things to know:
- Agricorp administers the Farm Property Tax Program through a multi-year application process. Landowners must ensure that Agricorp has their property tax roll numbers linked to their Farm Business Registration Number (or their tenant farmer’s Farm Business Registration Number).
To be eligible for the Farm Property Tax rate:- SEFM must assess the property as agricultural land;
- the property must be used for an agricultural business;
- the agricultural business on your property must have a valid agricultural business registration number; and
- Canadian citizens or permanent residents must own more than 50% of the property.
- Once your farm property is approved for the program, it remains eligible for the farm property tax rate in future years, unless Agricorp requires an update request through a random audit, because the farm business registration number is no longer valid, or because the ownership or property tax roll number has changed.
- If the land is leased to a registered farmer, the owner must contact Agricorp to obtain an Owner/Tenant Application Form, or go to https://www.agricorp.com/en-ca/Programs/FarmTaxProgram/Pages/Overview.aspx . The tenant must sign this form and provide their Farm Business Registration Number.
- If you are a new farmer and your operation has not generated $7,000 in farm income, you can apply for a start-up exemption to maintain farm property class status.
- Once new and beginning farmers reach at least $7,000 in gross income required for the PIEA, they must contact Agricorp to link their new Farm Business Registration Number to their farm property.
For more information, contact Agricorp’s Farm Property Tax Program at 1-888-247-4999 and have your property tax roll number as shown on the tax bill available for specific questions or visit: www.agricorp.com/farmtax .
Step 4 – MEMBERSHIP IN THE ONTARIO FEDERATION OF AGRICULTURE
Membership process for those registered with PIEA
- Select FAO as your accredited farm organization on the Farm Business Registration Form, and pay the annual fee of $255 plus GST (payable to FAO) to Agricorp.
- After submitting your payment, simply complete the FAO Membership Agreement online, https://ofa.on.ca/join-ofa/join-fao/fao-member/member-registration/ and your membership card will be sent to you shortly thereafter.
Individual membership:
- If you are not qualified to join FAO through the PIEA process, you can become a member. The Individual Farm Member (IFM) can vote and benefit from a number of services and benefits exclusive to members.
Note: The IFM does not make you eligible for the Farm Property Tax Program.
Join FAO today! Call 1-800-668-3276 or visit www.ofa.on.ca to learn more about membership benefits and how you can support their work.