Farm Property Assessments
How your farm property is assessed
When we assess your property, we look at several components including the farmland, residence and land, farm outbuildings and other buildings to establish your property's value.
Overview of your farm property value
There are a number of factors that affect your farm property's value. Our video, How MPAC assesses properties, offers a good overview.
The possible components of your assessed value are:
- residence land
- farm outbuildings
- other buildings or structures
The possible components of your farm property's value
All farms in Ontario are assigned to a farm "neighbourhood" based on common factors such as climatic zone, soil type and suitability, and comparable properties selling for similar prices per acre. Within each farm neighbourhood, adjustments are made to reflect different soil quality classification.
We use an approach called the "direct comparison approach", which compares the farmland on your property to similar farmland in your area that has been sold.
Using land title documents registered at Ontario Land Registry Offices, we gather the following farm property sales information:
- owners' names
- the legal description
- sale amount
- sale date
We then send out farm sales questionnaires to gather additional important information regarding the farm sale.
We consider different soil types and textures when determining the soil productivity of your farm property. We classify farmland under one of six quality classes based on how productive it can be. Class 1 being the most productive and therefore the most valuable.
The above farmland classification is based on the following seven variables:
- soil texture
- depth to bedrock
For detailed information about land quality and climactic zone qualifications, please see our Farm Property Methodology Guide.
We consider the:
- dimensions of your farmhouse
- type and quality of construction
- age and condition of the residence
- how much it would cost to rebuild it
3. Residence land
If the farmer lives in the house, then we assess one acre of the land supporting the house as farmland. If the house is occupied by a non-farmer, the land not farmed is considered residential property, and is assessed accordingly.
4. Farm outbuildings
We look at the cost of replacing these buildings while considering:
- type and quality of construction
- age and condition of each structure
- how much it would cost to rebuild each
5. Other buildings
Other buildings on farm property, such as wineries and stores, are valued based on the cost to replace while considering:
- age and condition
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.
Multiple property classifications
Depending on your use of the land, portions of your farm property may be assigned other classifications, which will affect your property's overall valuation.
For example, if a portion of your farm is used for purposes other than farming (e.g. vehicle-repair garage), that portion is classified according to its current use, and will be assessed accordingly.
Information gathered from other sources
We also review information about your property gathered from:
- property inspections and data reviews
- land title documents
- building permits
- farm sales questionnaires
MPAC continually updates property details to reflect changes to properties. One of the ways we do this is through on-site property inspections, to validate that the information we have on your property is accurate and up-to-date.
Some of the reasons we complete property inspections include:
- A building permit was issued that may have resulted in a change to the property.
- The property was recently sold.
- In response to a Request for Reconsideration.
- In response to an appeal with the Assessment Review Board.
- General inspections in the area.
- As part of the inspection, our team collects and verifies information to update our records. If there is a change to your assessment or classification, we will mail you a Property Assessment Notice.
If you have any questions about how we assess farm properties, please feel free to contact us.