Farm Property Assessments
- Understanding your farm Property Assessment Notice
- How your farm property is assessed
- Factors affecting your farm property value
- How we classify your farm property
If you own a farm in Ontario, you'll receive a Property Assessment Notice for your property every four years during an assessment update or in circumstances where there have been changes to your property.
Learn more about our notices here: Reading your Property Assessment Notice.
How your farm property is assessed
When we assess your property, we look at several factors including the farmland, residence and land, farm outbuildings and other buildings to establish your property's value.
We also classify your property by placing it into a property tax class which is used by your municipality to calculate your property taxes. There are several ways to classify farms with unique characteristics. To learn more about our process, read below.
Factors affecting your farm property value
We undertake an extensive look at sales, land productivity and geographic areas when determining farmland values.
- Our experts conduct ongoing studies of the market including sales transactions and we analyse the market sales of farmland to farmers who intend to use the property for farming.
- A sales investigation is conducted over six to eight years to adjust for local market conditions.
- Sales of farmland used for other purposes other than farming are not included.
- Sales to purchasers who are not farmers are not included.
- Sales with special factors that do not reflect the market value are not included (e.g. family-to-family sales).
- We value farmland according to how productive it can be. We place it into one of six quality classes with Class 1 being the most productive and therefore the most valuable.
- We establish geographic areas according to the climatic region, soil type, suitability and similar farmland markets.
Residence and Land
- Residence on the farm
- We consider how much it would cost to rebuild the farmhouse and take into consideration the location, size, age and quality of construction.
- Land around the residence
- If the farmer lives in the residence, typically one acre of land surrounding the house is valued as farmland and placed in the residential tax class.
- If a tenant who is not a farmer lives in the residence, any land that is used by the tenant is valued as residential and placed in the residential tax class.
- We establish the current cost of replacing farm outbuildings and take into consideration the design, age, size and quality of construction. A deduction is applied for depreciation to account for age and function.
- We value other buildings, such as wineries and stores, according to the cost of replacing them, taking into consideration the building’s design, age, size and quality of construction. They are valued and classified according to use (e.g., commercial, industrial or residential).
How we classify your farm property
Residential Tax Class
- By default, we place your farm in the residential tax class. If you are approved for the Farm Property Class Tax Rate Program by Agricorp, we place your property in the farm tax class.
Farm Tax Class
- If your property is eligible for the Farm Property Class Tax Rate Program, we will place the farmland and associated outbuildings in the farm tax class. You will be taxed at no more than 25 per cent of your municipality's residential tax rate. Property owners must apply for the Farm Property Class Tax Rate Program with Agricorp.
- If an area of your property is used for purposes other than farming (e.g. auto repair garage), that portion is classified according to its current use. This is to ensure the appropriate tax class is applied to the various uses of the property.
Learn more about farm tax incentive programs available in Ontario