Perhaps more contentious than the buy versus rent debate is the question of when and why to incorporate the farm. The federal government proposed sweeping changes to how taxes were calculated for corporations last summer. The changes were met with significant push-back from the farm community, as the new rules would have a significant impact… Read More
Category: Succession Planning
The road that runs along the St. Lawrence River’s north shore from Montreal to Quebec City is known as the Chemin du Roy (King’s Road). Built during the French regime, it was the colony’s very first road. In 1667, shortly before marrying a fille du roy (king’s daughter) named Élizabeth Crêtel, Nicolas Langlois acquired land… Read More
Three transition experts share their advice on the best way for the next generation to start the farm transition conversation. Show them you mean business Since any successful inter-generational transition must become a business transaction, I’ve found that young people who begin with a business approach tend to be taken more seriously. What’s this look… Read More
Despite armies of well-meaning accountants, bankers and consultants urging them to do so, many Canadian farm families don’t have a plan in place to transfer ownership between generations. It could be the word succession that’s getting in the way. This can imply an abrupt change, when the older generation is booted out to pasture and… Read More
Forget the standard five and 10-year outlooks of strategic planning. Instead, have you figured out where to best put your time in in a day? Whether or not you and your spouse are collaborating to your full potential? Is technology helping or hindering your farm operation? These are the kinds of questions Nick Bontis, professor of… Read More
If you’re five years away from stepping back from the day-to-day operation of your farm, you’re likely to make different management decisions than say when you were five years in to your farming journey. But it’s rare for a farm to have such a distinct start and end point — most farms are a blend… Read More
The dust is starting to settle after Finance Minister Bill Morneau’s flurry of announcements backtracking on the federal government’s proposed small business tax changes. Now that the news conferences are over and we’ve had a few days to analyze the changes to the changes, how will the updates affect farm businesses? First of all, we… Read More
Agriculture Minister Lawrence MacAulay continues to downplay the potential impact of the Liberals’ proposed tax changes, despite widespread concerns voiced by many farmers, small business owners and their accountants. The minister took 10 minutes to sit down with RealAgriculture in his office in the Confederation Building on Parliament Hill this week to discuss the tax… Read More
The federal government wants to clamp down on incorporated business owners who it says are claiming capital gains when they should be reporting taxable income or dividends. A capital gain is essentially the increase in the value of a capital asset, such as farmland, above its purchase price. Under Canada’s tax system, only 50 percent… Read More
Members of Parliament are back at their seats for the fall sitting of Parliament, and tensions are high, with the Conservatives and NDP questioning the Liberals’ proposed tax changes announced in July. Farm groups and farmers have also been vocal in criticizing the government’s plan. “I don’t think the government realized the opposition that would… Read More