Resources

Negotiating A Farmland Lease

Accessing Land for Farming In Ontario: A guidebook for farm seekers and farmland owners

Work through more than 60 questions to consider when negotiating a lease of farmland.

Wondering about farmland values and lease rates in Ontario?

OMAFRA Estimates
University of Guelph Annual Survey Results

Learning About Your Farmland

Environmental Farm Plan Workshops 
Both owners and tenants of farmland may complete an Environmental Farm Plan, which involves assessing risks and solutions to environmental risks on farms. It is a great opportunity to learn more about the property at the same time. There is no cost to attend this 2-day workshop offered by the Ontario Soil and Crop Improvement Association.

Dates and locations can be found on the OSCIA website here: https://www.ontariosoilcrop.org/workshops-and-events/

Funding For Environmental Improvements

Many government funding programs for agriculture can be accessed through the  Ontario Soil and Crop Improvement Association

Conservation Authorities in some watersheds offer funding programs for specific types of activities. Check with your local Conservation Authority to find out if they have a program. Don’t know what watershed your farm is located in? Click here to visit the Conservation Ontario search tool.

Want to restore a wetland? Contact Ducks Unlimited

Alternative Land Use Services (ALUS) offers funding for specific types of on-farm activities.

In some areas of the province, there may be collaborative groups of organizations who can help you. For example, in east central Ontario, visit the East Central Farm Stewardship Collaborative to find a range of options all in one place. Ask your Conservation Authority if there are additional regional collaborations or supports in your area.

A Premises Identification Number is required in Ontario for access to many funding and compensation programs. It is free and can be obtained by telephone or online. A Premises Identification Number, referred to as a Premises ID (PID), is a number identifying a parcel of land where agri-food activities occur. Premises Identification Numbers differ from business registration numbers (e.g. Farm Business Registration Number (FBRN), license, or other business identifiers as each one is linked to a specific parcel of land, not to a business.

Property Tax Reduction Programs

Farm Property Class Tax Rate Program

Active farms in Ontario (whether farmed by the owner or a qualified tenant) may benefit from a 75% reduction in property taxes on the farmland portion of their land. 
If you are considering buying farmland, or have recently purchased a farm, be sure you know the rules:

Managed Forest Tax Incentive Program (MFTIP) 

Landowners who have their property classified as a 'Managed Forest' pay 25% of the municipal tax rate set for residential properties. The landowner must apply for this program and create a written plan.
To be eligible you must:

  •     own 4 hectares (9.88 acres) or more of forested land on a single property in Ontario on one municipal roll number
  •     be a Canadian citizen or permanent resident
  •     be a Canadian corporation, partnership
  •     be a trust or conservation authority
  •     have a minimum number of trees on each hectare (acre) of forest you own
  •     for more information, visit the MFTIP website

Conservation Land Tax Incentive Program (CLTIP)

Through this program, land that has important natural heritage features can qualify for a 100% property tax exemption. Properties that qualify are determined by the province. This tax program can apply to part of a farm, further reducing property tax.
For more information, visit the CLTIP website

Permanently Protecting Your Farmland

If you are looking to protect your land from development - or want to keep it in production as farmland into the future - consider a donation and/or easement agreement.

Landowners in Ontario may donate land (immediately or through their will). If you donate farmland to a charity, you will receive a charitable tax receipt for the fair market value. Consider donating to a farmland trust or directly to an organization working with new farmers who are unable to afford land (see https://ontarionewfarmer.ca/

To protect land from development, you may choose to place an “easement” on the land through a federal, provincial or municipal government body, an independent, non-profit conservation organization or a land trust. An easement agreement is registered on title and prevents development of the land by future owners. It is not a transfer of title.

Read more about easements here:  https://ontariofarmlandtrust.ca/farmland-protection/farmland-easement-agreements/

Ontario Farmland Trust is a good place to start. Visit the Ontario Land Trust Alliance and look through their Land Trust Directory. Note that not all organizations accepting easements are listed.

Support for New Farmers

If you own farmland for rent, consider working with a new farmer. New farmers cannot usually afford to purchase land immediately, and a long term lease can provide an important opportunity to get started. 

To connect with an organization in your area that works with new farmers, visit ontarionewfarmer.ca. See the Accessing Land for Farming in Ontario guide above for help in putting together a comprehensive lease agreement.