The Farm Market

 

The Farm Market – What you need to know

What affects a farm’s value?

  • Location, land, building and other assets
    • Agricultural Productivity with soil fertility;
    • Level of crop heat units (CHU);
    • Type, age and condition of primary structures and farm equipment.

What increases a farm’s value?

  • Prudent capital investment in modern systems and processes that affect productivity.
    • Money invested in regular maintenance and upgrading property improvements.
  • Well-appointed home, landscaping or amenities (pool).
  • Maturing cash crops, livestock and/or machinery included.

Farmland Leasing

  1. Crop Share Lease
    • 1/3 of all crop sales to landlord with the remaining 2/3 to tenant.
  2. Cash Rent Lease
    • Tenant receives income but pays landlord a fixed amount each year as rent.
      • Can pay in advance or 1/2 at seeding and remainder at harvest.
  3. Flexible Cash Lease
    • Tenant receives all income, dollar amount is paid to landlord.
      • Varies in regard to the price of the grain, yield or both.

Farm Building Construction

National Farm Building Code of Canada

The municipality issues building permits for farm structures.

For the construction/renovation of agricultural structures visit the Ministry of Agriculture, Food, and Rural Affairs website.

Visit the Canada Plan Service (CPS) website to view available plans for farm buildings.

Minimum Distance Separation Requirements

  • MDS-I      (Nutrient Management Act)
    • the required distance between new development and existing livestock or manure storages
  • MDS-II     (Municipality)
    • the required distance between new or expanding livestock or manure storage facilities and property boundaries, houses, recreational areas and other land uses.

What is the Nutrient Management Act? 

This act requires that any building project relating to livestock housing or manure storage facility must have an approved nutrient management strategy (NMS) before a building permit will be issued.

This applies to all farms that generate more than five nutrient units and are proposing to build, expand or renovate.

A nutrient unit is calculated based on the number and type of livestock being housed;

eg., the nutrient conversion factor for laying hens is 150 birds.NU, therefore a poultry operation with 4,500 birds would have 30 (4,500/150) nutrient units.


In addition to minimum distance requirements for livestock or manure storage structures, it also addresses the following;

  • Storage, handling, use and transportation of commercial fertilizers;
  • Requirements to develop, document and retain records relating to nutrient management plans and strategies;
  • Required qualifications for farmers and others applying such materials; and
  • Establishment of minimum distance requirements regarding land applications (i.e., fertilizers) to protect adjacent land and watersheds/sources.

Other Agricultural/ Farming Issues

Farm Taxation

You can receive a 75% tax reduction for municipal taxes if assessed and valued by the Municipal Property Assessment Corporation.

Farm Financing and Business Services

Farm Credit Corporation (FCC)

Offers various financial products and business services to farmers and agricultural businesses

  • The FCC is a valuable resource when seeking funding to buy land, equipment, livestock and quotas, making improvements to the land, and constructing/renovating buildings