Farm Property Class Tax Rate ProgramAs a person who owns farmland in Ontario, you may be eligible for the Farm Property Class Tax Rate Program. Under this program:
Farm properties that don’t qualify are taxed at the residential rate.
PDF version (4689 kb) | return to index | Are you eligible?If you can answer “yes” to the following questions, you may qualify for the Farm Property Class Tax Rate Program. Do you own farmland?The Municipal Property Assessment Corporation (MPAC) must assess your property as farmland. Is it used for a farming business?You must either farm the property yourself or have it farmed by a tenant farmer. Does the farming business generate at least $7,000 a year?The gross farm income must be at least $7,000 each year, as reported to the Canada Revenue Agency (CRA). For details on exemptions to the gross farm income requirement, see Gross farm income exemptions. Does the farming business have a valid Farm Business Registration (FBR) number?The farming business must have either a valid FBR number or a religious exemption from the Agriculture, Food and Rural Affairs Appeal Tribunal. This requirement does not apply if you have a gross farm income exemption. How do I get a FBR number?You can apply to Agricorp for an FBR. You must maintain a gross farm income of $7,000 a year and renew your FBR every year to keep it valid. See For More Information for contact information. Are you or your co-owners either Canadian citizens or permanent residents of Canada?If you own your property as an individual, you must be either a Canadian citizen or a permanent resident. If you co-own your property with other individuals, more than 50% of the owners must be either Canadian citizens or permanent residents. If your company owns the property, more than 50% of the voting shares must be controlled by individuals who are Canadian citizens or permanent residents. How to applyPlease fill out the enclosed application form for the Farm Property Class Tax Rate Program and return it to the address at the back of the booklet for the Ministry of Agriculture and Food and the Ministry of Rural Affairs (OMAF and MRA). If OMAF and MRA does not receive your application by the due date on the upper right corner of the form, you may be taxed at the full residential rate. If you do not qualify for the program, please fill out Section A and return the application to OMAF and MRA. Which sections should I fill in?Section A: Fill in only if you do not qualify for the Farm
Property Class Tax Rate Section A: Property Owner Non-eligibility If you do not qualify for the Farm Property Class tax rate, fill out this section so that we can update our records and take you off our mailing list. Your property will be taxed at the residential rate. If you want to apply for the program, leave section A blank. Section B: Owner Information
Section C: Property Information
Section D: Tenant Farmer Declaration
Section E: Gross Farm Income Exemption
For details on exemptions to the gross farm income requirement, see Gross farm income exemptions. We will verify the information you send us. If necessary, we may ask you to submit a new application or additional documentation. Section F: Farm Business Registration Exemption for Religious Conviction or Belief
Section G: Property Owner Eligibility Declaration & Acknowledgements
Keep us informedOnce you have been approved for the Farm Property Class Tax Rate, we generally will not send you a new application form each year. However, you are responsible for letting us know about any changes that affect your eligibility. These include:
If you fail to let us know about these changes, we will remove your property from the Farm Property Class and you may have to repay all applicable municipal property taxes. You are also responsible for making sure that any farm business on your property has a valid FBR number or an appropriate exemption. This includes the farm business of any tenant farmers. FBR numbers must be renewed with Agricorp each year. Without a valid FBR number or an appropriate exemption for every farm business on your land, your property is not eligible for the Farm Property Class Tax Rate. Finally, please let us know about any changes to your contact information. I have already been approved. Why are you sending me an application form?Each year, we ask a number of randomly selected property owners to fill out a new Farm Property Class Tax Rate application form. This helps us verify information and maintain the integrity and accuracy of our database. We also send out a new application form if you inform us of any changes to your farming operation or if MPAC informs us of a change in property ownership. If you bought farmland last year see Property Transfers. Gross farm income exemptionsIf you or your tenant cannot obtain a FBR number because your prior year gross farm income was less than $7,000, you may still be eligible for the Farm Property Class tax rate if one of the following exemptions applies: Age/Illness/Death ExemptionIf you cut back on the size or scale of your farming business because of age, illness or the death of your spouse or commonlaw partner, you may apply for an exemption. Contact OMAF and MRA for the appropriate forms. To be eligible:
Not a Normal Production Year ExemptionIf the gross farm income (GFI) is usually at least $7,000 but it was not a normal production year, you may apply for an exemption. Contact OMAF and MRA for the appropriate forms. You will need to demonstrate why the GFI was less than $7,000 and how the farm business will gross $7,000 within the next year or two. Start-up ExemptionIf you or your tenant are starting a farm operation and have not yet met the $7,000 income criteria, you may apply for an exemption. Contact OMAF and MRA for the appropriate forms. 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. For required documentation and details on how to apply for these exemptions, call us at 1-877-424-1300 or email us at farmtax.omafra@ontario.ca. The exemption forms are also available online. Confirm your assessmentIn the fall of 2012, the Municipal Property Assessment When you receive your Assessment Notice, check the following:
To access a detailed report of your property, or to file a RfR online with MPAC, visit www.aboutmyproperty.ca. The deadline to file a RfR is March 31 of the current tax year. Property TransfersIf you bought farmland, the Farm Property Class application will be sent to you and must be returned within the required deadline. The standard application is for the upcoming tax year. If you bought farmland that is currently in the Residential Property Class but meets the eligibility requirements for the Farm Property Class, you may contact OMAF and MRA to apply before December 31st of the tax year, for the period of the tax year you owned the property. To ensure that your property continues to be valued as farmland and classified in the Farm Property Class:
Important: MPAC will classify properties that do not meet the above criteria as residential for the following tax year. You will receive a Property Assessment Change Notice in the fall showing the change from the Farm Property Class to the Residential Class. The property will be liable for taxes at the residential tax rate. If you have questions, call us at 1-877-424-1300 or email us at farmtax.omafra@ontario.ca. For more informationAbout Farm Business Registration Agricorp About Property AssessmentMPAC (Municipal Property Assessment Corporation) About the Farm Property Class Tax Rate ProgramMinistry of Agriculture and Food
For more information: Toll Free:1-877 424-1300 Email: farmtax.omafra@ontario.ca
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