Easiest Way to Get Farm Status in BC
Want the easiest way to get farm status in BC with as little effort as possible? Many landowners wish to bid farewell to their high property tax bill and instead take advantage of the lower taxes farm status provides.
The truth is, there are easy ways to get Farm Classification. Read on to learn the easiest ways to get farm status in British Columbia.
There are many variables to consider when qualifying for Farm Classification. These variables are beyond the scope of this article. Some of them include, the income potential of the farm and how much land contributes to the active farm area. There is also the question of whether the farming activity is a “qualifying agricultural use” determined by the Farm Regulation. Is the land in the Agricultural Land Reserve (ALR), and will the land be owner farmed or leased?
Ultimately, farm status comes down to whether or not your property meets the requirements of BC Reg 411/95 – the “Farm Regulation.” Acreage held for commercial or industrial purposes does not qualify for Farm Classification. You have two options assuming your land is ready to farm and will qualify for Farm Classification.
Owner Farmed Land or Leased Farmland
Owner Farmed Land:
You can farm the land yourself, and many may think this option is not the “easy way to get farm status.” However, if your chosen farming activity is something you love to do, owner farming is more a passion than work. Many agricultural products qualify for farm class; all you need to do is choose one you enjoy doing.
Alternatively, you could start a farm operation and hire labour for the routine maintenance, freeing up your time for other activities. An example would be berry farms, where hiring a farmhand for pruning and harvesting is common.
If you are not interested in farming the land, the next option is the best.
Leased Farmland:
Lease your land to a bona fide farmer. There are many farmers whose farmland already has farm status and some of these farmers are always looking for additional land to expand their farming operations. An example would be a dairy farmer; they always require ample land for hay to feed their herd. Active farmers with BC Assessment are considered bona fide, and any additional land added to their operation will most likely get approval for Farm Classification without question.
The first thing to consider before leasing your land to a farmer is to evaluate the best farming use of the land. Some land is excellent for cultivating, and other land is best for hay or livestock grazing. Take a look at other farms around your neighborhood to get an idea of the typical farming activities.
You can also lease your land to a new farmer. However, in this situation, you must ensure their farming plans qualify. For example, will they be farming enough land area, will they achieve the necessary farm income, and will they be farming a qualified agricultural product as defined by the Farm Regulation?
You will also need to ensure they follow through on their farm plan. If the farming operation fails to meet the requirements of the Farm Regulation by October 31, your farm application will be denied, and the land will not have farm status for the upcoming assessment year.
What is the typical farm lease agreement?
The lease agreement allows a farmer to cultivate or operate a farm on your property, and as a result, you will obtain the status of a farm. Nevertheless, for the lease to be legally binding, some form of consideration must be exchanged; even a nominal amount like $1 will suffice. In most cases, the landowner does not receive monthly lease payments for leasing the land to a farmer. However, if the land produces high-value crops like berries, the farmer usually compensates the landowner annually with either lease payments or a portion of the crop sales.
There are many paths to gaining farm status in BC which do not necessarily involve long hours and arduous labour. You need to think about how to best utilize your land for farming and ensure the farming activity conforms to the Farm Regulation.
To obtain further information on obtaining farm status, please contact us: https://farmassessment.com/