In south-central Manitoba, a man we’ll call Ronnie, 57, lives on a 640-acre farm he inherited from his late parents. He’s never farmed and has no interest in swapping careers from the office work he did before retiring a few years ago. His plan is to sell the farm within three years and build a […] Read more
A tax strategy for a retiree who inherits a farm
Farm Financial Planner: Opportunities to make money and save tax
What to look for in a financial planner
Some points to consider when you need to separate the wheat from the chaff
How do you find a competent financial planner? The question seems simple, but in that job title is a vast puzzle of what the words mean, who does what and what the work is worth. There are 213 professional designations that have something to do with financial planning, according to the Financial Industry Regulatory Authority, […] Read more
Manitoba grain farmers find a way forward
Legacy is preserved and provisions made for non-farming children
In southern Manitoba, a couple we’ll call Ed and Barb, both 64, farm 900 acres of grain with some beef cattle. They have a son Ernie who is 40 years old. He farms and wants to take over Ed and Barb’s spread when they retire. A daughter, 38, who is married to another farmer, could […] Read more
A fair and efficient farm financial plan for all
A share structure provides a shift of ownership to one child who farms and a living income for the two who don’t
A grain farmer we’ll call Owen, 63, farms 1,000 acres of grain not far from the Manitoba-United States border. He has three children ages 35, 34 and 29. The eldest, Jack, wants to take over the farm. His two siblings, who we’ll call Max and John, have town jobs and have no wish to farm. […] Read more
Farmers could benefit financially from this trend
Farm Financial Planner: Urban dwellers pay high prices for small land parcels
There is a trend for city folk to buy country property to get away from the COVID-19 virus, city lockdowns and everything else associated with the world pandemic. It’s a pattern of outmigration from densely populated cities. Farmers are potential beneficiaries. They can sell small parcels at relatively high prices. I have found city folk […] Read more
How to manage the tax consequences of a city takeover of farmland
Around $20,000 in tax savings is at stake
In a small settlement west of Winnipeg’s Perimeter Highway, a widowed farmer we’ll call Ralph, 63, has a dilemma. He is not ready to retire just yet and out of his four children only the youngest, a son we’ll call Herb, has his own farm and would be interested in taking over Ralph’s farm, which […] Read more
A couple looks for a low-tax route to turn their farm into retirement income
With no kids who want to take on the farm, a low-tax exit strategy is needed
A couple we’ll call Chuck, 68, and Liz, 66, farm 1,000 acres in south-central Manitoba. Their all-grain operation is profitable, but they want out. Their children, two middle-aged daughters, are not interested in farming. That leaves the sale of the farm as the best and only way for the couple to quit the business and […] Read more
How to keep the farm together, a complex generational transfer
Farm Financial Planner: Parents devise a plan for middle-aged children to keep the farm whole
A couple we’ll call Max, 75, and his wife, Betty, 70, farm 1,000 acres in western Manitoba. They have three children who are 40, 48 and 45 years old. The eldest and youngest have city jobs and no wish to farm. The middle son, who we’ll call Brian, will take over the farm. The issue […] Read more
A couple works out a farm transition plan for three children
Farm Financial Planner: The plan includes financial security for all, including a son with a disability
A couple we’ll call Max, 86, and Lily, 81, have farmed 480 acres in western Manitoba for the last 60 years. Their eldest son, who we’ll call Sam, now 60, retired from a city job with a solid pension. Sam now farms with his parents. He is the registered co-owner of the home 320 acres […] Read more
Intend to pass on your farm? There’s still time to plan and avoid large taxes
A farmer discovers a huge tax liability as he plans to transfer the farm to his nephew
In central Manitoba, a man we’ll call Harry, 81, has retired from a former life actively farming what was four quarters of grain. As Harry’s end of life comes into view, he wants to ensure that his sole heir, a nephew we’ll call Sam, does not wind up with a farm reduced or impoverished by […] Read more
Cyber-Savvy Farmer
