From One Generation to Another: Master Farm Succession, Tax Strategies & Market Trends

In the Fall 2024 issue of Intelligent Farmer, we tackle the pivotal decisions shaping the future of your farm: succession planning, tax-efficient structures, and commodity market strategies. With only 1 in 12 farms having a formal succession plan, now is the time to secure your legacy.

Click here to download the full Fall 2024 issue of Intelligent Farmer today

Farm Succession Planning: Start Today for a Smoother Tomorrow

Only 8% of farms have a formal succession plan, leaving families vulnerable to conflict and financial loss.

• Begin early: Discuss timelines, successors, and family dynamics years before transition.
• Key questions to answer: How many years until retirement? Who will succeed you? What’s your post-farming vision?
• Critical paperwork: Organize tax returns, wills, and financial plans to ensure a seamless handover.

The Critical Role of Farm Appraisals in Succession

Unbiased valuations prevent disputes by providing a factual basis for discussions.

• Tax planning: Accurate appraisals ensure fair tax treatment for heirs and avoid over/undervaluation risks.
• Emotional clarity: Detach sentiment from decisions with objective market-based assessments.

Tax-Smart Farmhouse Ownership Structures

• Individual ownership: Simplest but watch for GST/HST exemptions and principal residence rules.
• Partnerships/corporations: Navigate nuances like intergenerational rollovers and Underused Housing Tax compliance.
• Isolate farmhouses: Lease land to corporations or use trusts to separate residential assets from farm operations.

Commodity Markets: Corn, Soybeans & Wheat Outlook

• Corn: U.S. competitiveness drives export growth, but global competition limits price rallies.
• Soybeans: Record global supplies weigh on prices; domestic crush demand remains strong.
• Wheat: Russian stockpiles suppress prices, but high-quality supply shortages may emerge.

Don’t leave your farm’s future to chance.

Click here to download the full Fall 2024 issue of Intelligent Farmer today for actionable strategies on succession, tax planning, and market trends.

RBC Dominion Securities Inc. | Lorkovic DeKoning Wealth Management