Navigating Agricultural Challenges: Market Insights & Financial Strategies for Farmers

The Fall 2020 issue of Intelligent Farmer addresses critical topics for modern farmers, from commodity market volatility to innovative financial structures. Here’s a snapshot of key insights:

Click here to download the full Fall 2020 issue of Intelligent Farmer today

Grains & Oilseeds Update: Weather, Trade, and Demand

• Soybeans: Tight global supplies and strong Chinese demand have supported prices, but South American harvests and U.S.-China tensions pose risks.
• Corn: Large U.S. carry-out stocks limit price optimism, though ethanol and feed demand remain key drivers.
• Wheat: Global ending stocks are at record levels, but exporter supplies remain tight, with focus shifting to Southern Hemisphere crops.

Financial Strategy: The Single-Purpose Land Corporation

• Capital Gains Exemption: Separating land into a single-purpose corporation allows farmers to qualify for the $1 million lifetime exemption when selling.
• Tax Efficiency: Reduces income tax by avoiding personal withdrawals and minimizes land transfer tax exposure.
• Succession Planning: Enables flexible asset distribution among heirs without restructuring the entire business.

Tribute to Ontario Farmers During COVID-19

The pandemic highlighted the essential role of farmers, who worked tirelessly to ensure food security despite lockdowns and supply chain disruptions. Their dedication deserves recognition and gratitude.

Don’t miss the full issue.

Read the Fall 2020 edition of Intelligent Farmer for in-depth analysis on commodities, financial strategies, and the resilience of Ontario’s agricultural community.

RBC Dominion Securities Inc. | Lorkovic DeKoning Wealth Management