Farms.com Home   Ag Industry News

Some Ont. counties lower farm tax ratios

Some Ont. counties lower farm tax ratios

Councilors in Grey and Oxford agreed to lower the ratios

By Diego Flammini
Staff Writer
Farms.com

Councilors in some areas of Ontario have agreed to lower farm tax ratios.

In Grey County, for example, producers will see the farmland tax ratio drop from 24 per cent to 21.8 per cent of the residential tax rate.

Council voted 51-39 in favour of the decision.

Adjusting the farmland tax ratio will save more than 7,600 farm class tax properties almost $220,000 in taxation this year, County representatives estimated. That dollar figure will be shifted to other tax classes like residential or industrial.

Farmland values in the area have continued to rise. Prices increased from around $7,000 per acre in 2016 to $10,000 per acre in 2019, the University of Guelph’s Ontario Farmland Survey shows.

Last year, taxes collected from Grey County farmers accounted for about 4.2 per cent of the overall budget.

Grey County councilors agreed to modify mathematical formulas to help farmers pay the same percentage of tax, even if the dollar amount goes up.

“The farm community’s tax burden is the same now as it was before as a percentage of the overall” budget, Hugh Simpson, the president of the Grey County Federation of Agriculture, told Farms.com. “Farmers will pay more in taxes, but they will not pay more than their traditional share as a percentage of the overall budget in Grey County.”

The move indicates that councilors understand the importance of ag in the community. The decision also acknowledges the challenges farmers are facing given the COVID-19 pandemic, Simpson said.

“It sends a good, solid message from the political influencers that Grey County is an agricultural community,” he said. “What COVID-19 has done is spotlight the sovereignty of our food supply chain and the role that farmers play.”

Oxford County is another jurisdiction that agreed to lower its farm tax ratio.

Regional councilors approved reducing the ratio from 23.5 per cent of the residential tax rate to 21.7 per cent.

The reduction will save area farmers a sum totaling almost $374,000 in 2020. Like in Grey County, that dollar amount will be picked up by other tax classes.

Ag representatives in Oxford County took a similar approach to their counterparts in Grey County.

“When you look at the total dollars coming from the farmland to the County levy, we wanted to make sure that stayed at the same level,” Dirk Boogerd, president of the Oxford County Federation of Agriculture, told Farms.com. “Services have remained the same over the last four years regardless of what land pricing shows on the (Municipal Property Assessment Corporation’s) assessment. So, we want to make sure we’re not overpaying for services we don’t get.”

Keeping ratios fair across all tax classes is important, he added.

Oxford County councilors are taking steps to ensure all residents pay their fair share of taxes.

The council has formed a committee to look at all tax ratios to determine appropriate taxation numbers.

“We’re fortunate to have that here,” Boogerd said. “It really shows an understanding and willingness to make sure that whatever they decide is fair for everybody.”

Producers in some communities, however, won’t have their tax ratios lowered.

Huron County politicians voted against reducing the ratio from 25 per cent to 21.7 per cent.

Lowering the ratio would mean shifting almost $1 million in taxes onto other Huron residents, Michael Blumhagen, treasurer for Huron County, presented during an April 15 council meeting.

“While there have been a number of municipalities having reduced their farmland tax ratio, many of those do not have such a high proportion of farmland as a total of overall assessment,” Blumhagen’s document said. “Unfortunately, as compared to many other municipalities, Huron County does not have a strong commercial and industrial base to assist in offsetting the tax burden for the residential taxpayer.”

The local federation of agriculture, along with the Ontario Federation of Agriculture, will continue to educate local politicians about the need to lower the ratio, said Crispin Colvin, a director with the OFA.

“We’re trying to explain to the counties that they’re shifting (taxes) to a group that doesn’t have the ability to pay the increases,” he told Farms.com. “We want to get councils to understand that a tax ratio change can be a revenue-neutral thing. Communities are going to have the same amount of money.”

To date, 18 Ontario municipalities have lowered their farm tax ratios, Colvin said.


Trending Video

The FCDC and AgSmart Bring Plant Breeding to a Wider Audience

Video: The FCDC and AgSmart Bring Plant Breeding to a Wider Audience

In the vast prairies of Alberta, Olds College’s Field Crop Development Centre (FCDC) stands as a beacon of innovation and research in the agricultural world. The institution has become a key player in advancing agricultural technologies and practices. The FCDC’s commitment to applied research has driven them to seek effective means of disseminating their findings and creating a positive impact on the farming community.

One such avenue that aligns with their mission is AgSmart, an event dedicated to showcasing cutting-edge agricultural technologies. The coming together of the FCDC’s annual Field Day and Ag Smart has proved to be a natural fit, fostering a synergy that benefits both parties and propels the agriculture industry forward. The FCDC Field Day took part in conjunction with AgSmart for the first time this week on Aug. 1-2 in Olds, Alta. FCDC Program Director Kofi Agblor and Olds College VP of Development Todd Ormann sat down for an interview with Marc Zienkiewicz to discuss the significance of the two events taking part together and what the future holds.

The Intersection of Research and Technology The essence of the FCDC lies in its dedication to plant breeding and new seed varieties, particularly barley and triticale. While conducting research is essential, it becomes meaningful when its benefits are shared with the wider community. This is where AgSmart steps in, providing a key venue for the FCDC to showcase their research. This union between research and technology creates a holistic and enriching experience for farmers, ranchers, and industry professionals, the pair said.

Seeds as Technology For the FCDC, the partnership with AgSmart goes beyond mere event collaboration. It is about creating an environment that bridges the gap between seeds and smart technology, Ormann said. The college believes that for technology to truly revolutionize agriculture, it must begin with a strong foundation — high-quality seeds. As the saying goes, “it all starts with a seed.” To demonstrate this critical aspect, the collaboration aims to showcase the seed value chain as an integral part of the smartphone.

The Birth of a Powerful Alliance The idea of joining forces emerged when staff realized the potential synergy between AgSmart and the FCDC Field Day. With just a few days separating the two events, a proposal was put forward to merge them. The marketing and communications teams from both sides worked seamlessly to ensure the essence of both events remained intact, creating a powerful alliance that leverages the strengths of each, Agblor said.

Driving Advancements in Breeding For Agblor, the partnership with AgSmart has tremendous potential to drive advancements in breeding and other technology. With technologies like drones and imaging becoming integral to phenotyping, breeding is no longer confined to vast fields to assess thousands of plants manually. Instead, it benefits from the data-rich insights brought about by smart technologies. These advancements make breeding more efficient, precise, and instrumental in shaping the future of agriculture.

Overcoming Challenges Together While the partnership between Olds College and Ag Smart has been a resounding success, there are challenges on the horizon. Securing stable funding for long-term breeding initiatives is crucial to sustain progress. The college is committed to navigating these challenges and investing in agriculture’s future sustainably, Agblor said.

 

Comments


Your email address will not be published