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.
Under the program:
Farm properties that do not qualify under the program will continue to 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?
Is the property being used for a farming business?
Does the farming business generate at least $7,000 a year?
For information on exemptions, see Annual gross farm income exemptions.
Does the farming business have a valid Farm Business Registration
Please note that this requirement does not apply if you have an annual gross farm income exemption. For more information on exemptions, see Annual gross farm income exemptions.
How do I get a Farm Business Registration number?
You can apply for a FBR number through Agricorp. In order to qualify, your previous year's gross farm income must be at least $7,000.
To remain valid, you must renew your FBR number annually and maintain a $7,000 annual farm gross income.
Are the farmland owners Canadian citizens or permanent
residents of Canada or a corporation?
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 corporation's voting shares are owned by individuals who are Canadian citizens or permanent residents in Canada.
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 Property Owners
Please fill out 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 continue to be taxed at the residential rate.
If you wish to apply for the program, leave Section A blank.
Section B: Owner Information
Section C: Property Information
Note: FBR numbers are issued by Agricorp.
Section D: Tenant Farmer Declaration
Section E: Gross Farm Income Exemption
For details on exemptions, see Annual gross farm income exemptions.
The ministry will review the information you submit. If necessary, you may be asked 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
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 the Municipal Property Assessment Corporation 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 farm business annual gross income was less than $7,000 in the previous year, you may still be eligible for the program if one of the following exemptions applies:
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. Please contact the ministry to receive the appropriate forms needed to support your claim.
To be eligible for an exemption, you must meet all three of the following criteria:
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 have an annual gross farm income of at least $7,000 within the next year or two. Please contact the ministry to receive the appropriate forms needed to support your claim.
If you or your tenant are starting a farm operation and have not yet met the requirement of an annual gross farm income of $7,000, you may apply for an exemption.
You must clearly demonstrate that the property is being farmed and how the farm 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. Please contact the ministry to receive the appropriate form needed to support your claim.
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 start-up exemption form is available online.
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 will update 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 will be delivered this fall. 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 file a Request for Reconsideration (RfR) with MPAC, visit www.aboutmyproperty.ca. The deadline to file a RfR will be included on your Notice
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 31st 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 Business Registration
MPAC (Municipal Property Assessment Corporation)
Farm Property Class Tax Rate Program
Ministry of Agriculture, Food and Rural Affairs
For more information:
Toll Free:1-877 424-1300