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.

RBC Dominion Securities Inc. | Lorkovic DeKoning Wealth Management | www.lorkovicwealth.com