A retiring Manitoba couple with no farming heirs would like to see their land safely transferred to their farming neighbours. Just gifting the land, though, or selling it below market value would complicate their retirement plans.
Tag Archives Farm Financial Planner
A vendor take-back mortgage will help keep a farm intact
Farm Financial Planner: The retiring sellers don’t want or need top dollar for the land, but need to limit the resulting tax liability
How U.S. tariffs are changing farm costs in Canada
Farm Financial Planner: Extended your current equipment’s operating life is effectively the same as a cut to your annualized cost
U.S. tariffs and Canadian counter-tariffs are characterized as bad news for Canada’s farmers and other businesspeople, but against that bad news is unspoken good news as well.
Is farm equipment best bought or leased?
Farm Financial Planner: Or is either option better than the other?
Whether to buy or lease farm equipment is a crucial question, though one with no definitive answer. Let’s analyze the numbers using an example from management and accounting firm BDO.
Oval Office intrigue drags on farm-level decisions
Farm Financial Planner: In the churning world of U.S. import policy, tariffs stalk Canada’s bewildered farmers
A rational family sitting down for a budget discussion should raise savings, reduce the risk those savings face when invested, and make a point to keep up with every twist and turn of emerging U.S. tariff and tax policy.
Farm machinery market now a riddle without a punchline
Farm Financial Planner: Tariffs will pile up on new equipment crossing borders en route to final assembly
Current market turmoil is rooted in U.S. tariffs and that uncertainty cascades down to combines, harrows, tractors, trucks — you name it — leaving farmers, at the tail end of the process, cautious.
Farmers’ sons have no interest in taking over family farm
Farm Financial Planner: A tax-light liquidation of a farm calls for some planning well in advance
Jack and Mary need to retire, but a sale of their farm will the only way to get there because their grown children have no interest in farming. A tax-light liquidation of a farm, though, will take some planning well in advance.
Two brothers want to merge two farms, simplify ownership
Farm Financial Planner: Maximizing the proceeds from their estates for the benefit of charities will take some planning
In south-central Manitoba, two brothers who we’ll call Herb, 75 and Fred, 60, have farmed for more than 40 years. They’ve raised cattle and produced mixed grains. Neither has married and there are no children or other obvious heirs. In their four decades of farming the brothers have built up substantial off-farm assets. There’s enough non-registered […] Read more
Limited income, large hanging debt, retirement plan in jeopardy
Farm Financial Planner: What a couple in their early 70s needs to do to retire
A couple we’ll call Frank, 72, and his wife Helen, 71, live on a farm in southwestern Manitoba. They have 486 acres with mixed grains and cattle. Their present income — Frank’s Canada Pension Plan payments of $3,680 per year, Helen’s CPP benefit of $2,400 per year, two Old Age Security payments totaling $17,000 per year, […] Read more
From a private business to the family corporation
What’s left after harvest depends on how the farm is organized and taxed
The idea of the family farm is just that — a concept. The reality is that tax rules, inheritance law, good business practice and the fundamental problem of making a living have changed the family farm from a private business to the family corporation. Organization and tax rules are now almost as important as 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
Cyber-Savvy Farmer
