Once considered among the most traditional, unchanging ways of life, farming today is being transformed. Farmland values are changing the nature of farming and farm business management, and introducing new opportunities and risks.
More farm wealth than ever before is passing from one generation to the next. Over the last decade, skyrocketing
land values, heightened equipment values, and quota holdings have increased in capital value, leading to more complex transition discussions.
RealAgristudies dives into the opportunities and complications of farm transition in Canada
The primary purpose of these amendments is to increase transparency regarding beneficial ownership and assist the Canada Revenue Agency (CRA) in properly assessing the tax liabilities for trusts and their respective beneficiaries.
I believe folks are happy in their roles on the farm when they are clear what is expected of them, and they have the proper tools to get the job done.
The story gets repeated time and again. A farm family invests time and money in a professional farm advisor to help them sort out a transition plan and how to implement it. Finally, almost incredibly, after a series of family meetings that started out nervous but eventually get surprisingly productive, everybody gets on board with the plan. Everybody knows their role; everybody pulls in the same direction.
If you’re considering retirement or expanding your farming operation, a joint venture arrangement may give you some much-needed flexibility and offer tax advantages.
Do you have a will for your farm business? Have you consulted with your descendants about the contents?*
As an executor you are responsible for carrying out the deceased’s wishes.
The deceased often shares their wishes and intentions in their Will. You
may feel overwhelmed and unsure what your responsibilities are with this
new role, so we have created this guide to assist you during the process.
Founders’ fees and amortized sales restrictions are just two of the growing list of strategies that farm families are adapting to ensure their farm survives for future generations.
In today’s agriculture, there are plenty of positive stories about succession. So why highlight one of the nightmares? Because they do exist, and because they make us confront our assumptions about mental health
In many cases, Canadian farms are being transferred to the next generation. But that’s “many,” not “all.” And if you’re in a situation where transition is unclear, or if you know your final plan will be to sell out, it’s time to get thinking about your options for building a farm exit plan.
Transitioning management and ownership of a farm business from one generation to the next can present many challenges. While there are numerous resources to support farm founders in assessing their business and planning their transition into retirement, not many advise young farmers on how they should prepare.
Sweat equity is like a deferred income for farm offspring. Starting the conversation early provides a map of performance and compensation expectations for both the older and younger generations.
Here’s an unpopular question. When are you going to retire from the farm? This is often a taboo topic because it’s hard to know when you’ll be ready, and just as hard, if not harder, to know what it means to retire.
When Chris Delaney talks about estate planning, he knows many Canadian farm families face common challenges. Yet, for every difficulty, there’s a solution.
Delaney is an author, speaker, facilitator, family business consultant and member of the Canadian Association of Farm Advisors.
“How do we pass this farm on to our son but still treat our other children fairly?”
When involving the next generation in the ownership of your business, it’s always important to think through your goals.
This leads us to another big reason to consider
a succession plan. While you likely want to
provide for your family's future and ensure the
continued success of your business, you also
deserve to enjoy the rewards of your efforts.
A proper succession plan will provide for all
of these things.