Farm Property Class Tax Rate Program
Minimize Your Property Taxes
As a farmland owner in Ontario, you may be eligible to apply for a property tax reduction through the Farm Property Class Tax Rate Program.
As an eligible applicant under the program:
Farm properties that do not qualify under the program will be taxed at the residential rate.
This guide is provided for reference purposes only and is not intended as a substitute for the related Assessment Act. Information is subject to change without notice.
To be eligible to apply, you must be able to answer "yes" to the following questions:
Do you own farmland?
Your property is assessed as farmland by the Municipal Property Assessment Corporation (MPAC).
Is the property being used for a farming business that generates an annual gross income of at least $7,000?
Your property is actively being farmed by yourself or by a tenant farmer or both and all farming income and expenses have been filed with the Canada Revenue Agency (CRA). For information on exemptions, see Annual gross farm income exemptions.
Does the farming business have a valid Farm Business Registration number?
The farming business must have either a valid Farm Business Registration (FBR) number issued under the Farm Registration and Farm Organizations Funding Act, 1993 (FBR number is 6-7 digits) or a religious exemption from the Agriculture, Food and Rural Affairs Appeal Tribunal (AFRAAT). This requirement does not apply if you have an annual gross farm income exemption.
How do I get a Farm Business Registration number?
You can apply for a FBR number through Agricorp. In order to qualify, your gross farming income filed with CRA in the previous income tax year must be at least $7,000.
Are the farmland owners Canadian citizens, permanent residents of Canada or a corporation?
If the property is owned by an individual or a group of individuals, each person must be either a Canadian citizen or permanent resident of Canada.
If the property is owned by a corporation, more than 50 per cent of the voting shares must be legally owned by individuals who are either Canadian citizens or permanent residents of Canada. In other words, it is not sufficient if the voting shares are legally owned by another corporation and then that corporations voting shares are owned by individuals who are Canadian citizens or permanent residents in Canada. Requirements for other ownership types can be found in the Assessment Act O.Reg.282/98 8.(2)3.
Please fill out the sections on the application which apply to you, and return it to the Ministry of Agriculture, Food and Rural Affairs by the due date specified on the form. For ministry contact information, see For More Information.
Section A: Non-eligible section
Complete Section A if you do not qualify for the program and do not wish to receive future mailings regarding the program. If you do not apply for the program, your property will be taxed at the residential rate. If you wish to apply for the program, leave Section A blank.
Section B: Citizenship and Contact Information
Section C: Property Information and FBR Number
Section D: Tenant Information
Section E: Farm Business Registration Number (FBRN) Exemptions
For details on exemptions, see Annual gross farm income exemptions.
Section F: Property Owner Eligibility Declaration
You are responsible for letting the ministry know about any changes that affect your eligibility. These include:
You are responsible for making sure that any farm business on your property has a valid FBR number or an appropriate exemption. FBR numbers must be renewed by Agricorp annually.
Failing to let the ministry know about these changes, may result in program ineligibility.
I have already been approved. Why are you sending me another application form?
Each year the ministry asks a number of randomly selected property owners to fill out a new application form. Doing this helps verify information and maintain the integrity and accuracy of the ministrys database. Application forms are also sent to those who have reported a change to their farming operation, or if MPAC informs the ministry of a change in property ownership.
If you bought or sold farmland, see Property Transfers.
If you or your tenant cannot obtain a FBR number because the annual gross income of the farming business was less than $7,000 in the previous income tax year, you may still be eligible for the program if one of the following exemptions applies:
If you or your tenant are starting a farm operation and have not yet met the requirement of an annual gross farming income of $7,000, you may apply for an exemption. You must clearly demonstrate that the property is being farmed and how the farming business will have an annual gross income of at least $7,000 in future years. The length of the start-up period must be realistic for the commodity produced. The start-up exemption form is available online.
Not a Normal Production Year Exemption
You may apply for an exemption if your usual annual gross farm income is more than $7,000, however the previous year was not a normal production year. You will need to demonstrate why the gross income for the farm business was less than $7,000 and how the farm business will achieve an annual gross farm income of at least $7,000. Please contact the ministry to receive the appropriate forms needed to support your claim.
If you cut back on the size or scale of your farming business because of age, illness or the death of a spouse or common-law partner, you may be eligible to apply for an exemption. To be eligible for this exemption, you must meet all three of the following criteria:
For required documentation and details on how to apply for these exemptions, please contact the ministry at 1-877-424-1300 or firstname.lastname@example.org
The Municipal Property Assessment Corporation (MPAC) is responsible for accurately assessing and classifying more than five million properties in Ontario in compliance with the Assessment Act and regulations set by the Government of Ontario. Every four years, property owners receive a Property Assessment Notice when MPAC completes a province-wide Assessment Update. In 2016, MPAC updated the assessed value of every property in Ontario based on a January 1, 2016 legislated valuation date.
Under the phase-in provisions in the Assessment Act, an increase in assessed value is introduced gradually over the 2017-2020 property tax years. A decrease in assessed value is introduced immediately.
Property Assessment Notices for farms were delivered in the fall of 2016. Please review your Notice carefully to ensure your property is being accurately classified in the Farm Property Tax Class. To access a detailed report of your property or to learn more about how MPAC assesses farms, visit www.aboutmyproperty.ca
If 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. Please contact the ministry before Dec 31 of the tax year to apply for the Farm Property Class tax rate if you purchased farmland that is currently in the Residential Property Class but meets the eligibility requirements for the program.
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.
Farm Property Class Tax Rate Program
For more information:
Toll Free:1-877 424-1300