Farm Succession Planning & Global Agricultural Trends: Your Guide for 2026

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Why Succession Planning Matters Now

Nearly half of Canadian farmers are now 60 or older, yet many haven't started planning for the farm transition. Succession planning feels overwhelming because every farm and family is unique. Between managing emotions, navigating taxes, and balancing fairness among children, it's easy to delay. But delay costs thousands in unnecessary taxes, creates family conflict, and jeopardizes your farm's future.

The "My, Our, Their" Framework

Organize your succession thinking into three buckets:

"My Assets" — What you keep for life (principal residence, investment portfolios, life insurance). Keeping control ensures financial independence throughout retirement.

"Our Assets" — Gradual transition through shared ownership (farmland, farm corporation shares). Your children gain experience while you provide mentorship.

"Their Assets" — Full ownership transfer. Your children make all decisions and assume full responsibility. This is irreversible, so timing matters.

This framework isn't permanent—it's a starting point for meaningful family conversations.

Tax-Efficient Farm Gifting

Canadian tax law provides significant benefits for farm families. Under the Income Tax Act, you can transfer qualified farm property to your children on a tax-deferred basis and use your remaining $1,250,000 lifetime Capital Gains Exemption to make the transfer completely tax-free.

Who qualifies? Farm assets must be in Canada, recipients must be Canadian residents, and assets must be used principally in farming (over 50%). The definition of "child" includes grandchildren, in-laws, adopted and stepchildren, and their spouses.

Global Forces Reshaping Farm Economics

The next generation faces a fundamentally different environment. Farm profitability is no longer determined solely by production—global forces now play an equal role.

Currency Risk: A one-cent movement in the Canadian dollar can reduce crop prices by roughly 1%.

Commodity Markets: Energy prices, biofuel policies, and geopolitics now shape commodity prices as much as supply and demand.

Interest Rates & Debt: With a "higher for longer" rate environment, develop a formal interest rate strategy and diversify your debt structure.

Global Trade: New market opportunities exist in the EU, Japan, and South Korea—but success requires reliability and efficiency.

Commodity Outlook

Soybeans: U.S.-China trade relations improving; domestic crush margins remain strong.

Corn: Growing conditions favorable; European production at lowest levels since 2017, supporting global prices.

Wheat: U.S. winter wheat at two-decade lows due to drought; global supply remains ample.

Key Takeaways

Succession planning transfers more than wealth—it transfers opportunity and legacy. Build a strong advisory team. Tax efficiency and family equity go hand-in-hand. Global market awareness is as important as agronomic expertise.

Read the Fall 2026 Intelligent Farmer for succession planning strategies, global market insights, and tax-efficient gifting options for Ontario farm families.

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