The direction that a farm family’s succession planning takes will often be determined by the retiring parents’ future plans
Fall is usually when the phone starts to ring and farmers want to talk about succession, transition or sale, says Curtis Palichuk, managing partner of Wilde Advisory Group in Vegreville, Alta. When farmers come into the accounting office weary from harvest, they are reminded that the best farm transition and succession is a process that […] Read moreTag Archives succession planning
Power of attorney is an integral part of estate planning
Who do you want to make decisions for you when you no longer can? This is an important question to consider. A power of attorney can accomplish this and provide you peace of mind that your affairs will be managed when you can no longer do so. What is a power of attorney? A power […] Read more
Farming needs new land tenure options
Farm succession is partially motivated by a love of family and land in both generations. Despite tensions between generations and varying expectations, succession works well in some cases. Today, many farms are aggregated parcels of land with equipment, infrastructure and perhaps quota, often incorporated, even if they are family run, and may not include the […] Read more
Incorporating the family farm can have its advantages
More than 25 per cent of all farming operations are incorporated, according to the 2021 Agriculture Census, and of those corporations, 87 per cent are labelled as family corporations. Statistics Canada defines a family corporation as an incorporated business operation in which an individual or members of a family own the majority of the corporation’s […] Read more
Changes to Alberta’s next generation loan receive praise
Glacier FarmMedia – A major insurer and lender is expanding eligibility and incentives for a loan dedicated to young and new ag producers in Alberta. The Agricultural Financial Services Corporation’s (AFSC) Next Generation Loan program is meant to provide these producers with “a consistent source of fixed-rate term loans to establish their own farming operation,” […] Read more
Much to consider when preparing farm’s next generation
In 2023, the Canadian Bar Association reported that $53 billion worth of land is expected to change hands as farmers retire over the next decade. Despite this, 88 per cent of farms lack written succession plans, and by 2033, 40 per cent of Canadian farmers will retire, marking a significant transition in Canadian agriculture. Additionally, […] Read more
Transition planned, but not rushed
Couple will pass the farm on to son and daughter-in-law but want to ensure non-farming daughters are treated fairly
ROUND HILL, Alta. — At the end of Humphrey and Terry Banack’s driveway is a large sign listing the names and dates of the previous Banack families who lived there since the farm was established in 1906. The year 1999, when Terry and Humphrey started farming, is written on the sign, but there is no […] Read more
Feds present time sensitive challenges, new opportunities
When the 2024 federal budget was released in April, there were several notable proposed tax changes that will have direct implications on most Canadians. The first change relates to the capital gains inclusion rate. Since 2001, it has been 50 per cent, which means 50 per cent of a capital gain is tax free and […] Read more
Use care and intention when forming a transition team
No two transition plans are the same. That is obvious to anyone who has read about the subject or has partially or completely navigated through the process. However, there are commonalities among lots of families and farms that manage through this important stage of the business lifecycle. One of those is that you will likely […] Read more
Feds’ bare trust fiasco creates mess for many Canadians
A while back, I wrote an article on bare trusts and the changes to tax filing obligations for them. By way of reminder, a bare trust is a trust relationship characterized by the following hallmarks: The trustee holds legal title to property and has no other powers, duties or responsibilities in relation to the trust […] Read more
