For many business owners, planning to transition what we’ve spent our lives building to the next generation of owners is something we know we need to do, but it’s also something we tend to put off.
It’s not hard to understand why as these are not simple conversations. They touch on money, legacy, fairness, identity and, ultimately, mortality. And it’s even more complex for farm businesses, because here, we’re also talking about generational history, legacy, and more often than not, the family home.
If there’s one message I’ve taken to heart through my own experience and from hearing transition experts like Tom Deans, who was a keynote speaker at the Ontario Federation of Agriculture annual conference last fall, it’s this: transition planning always takes longer than you think.
That’s because you’re not just transferring assets, you’re also navigating family dynamics, tax implications, business structures and long-standing expectations. And as the size and value of farm businesses continues to grow, it’s something that has to be handled carefully and thoughtfully.
According to Statistics Canada, the value of farmland and buildings in Ontario has surged by 68.4 per cent in just four years. The average value of an acre has climbed from $12,341 in 2020 to $20,782 in 2024.
This creates real challenges for transition planning. For the next generation of farmers, the cost of buying into the farm or taking it over can feel out of reach. Higher land values, tighter margins and increased financing costs all add pressure to a process that was already complex. It also raises difficult questions for families trying to balance what is fair, what is equal and what is financially viable.
Starting early makes all the difference. When you begin the process before there’s pressure or urgency, you give yourself the time and space to work through those complexities, including how rising asset values affect the transition, and move forward deliberately.
Good transition planning means involving different experts like accountants, lawyers, financial advisors to make sure all the pieces fit together. As Tom Deans pointed out in his presentation last fall, too many families rely on silence and assumptions, rather than clear plans, and that silence can come at a real cost.
Even in families that get along well, these conversations can bring out strong emotions.
The younger generation has to genuinely want to farm and be ready to take on the responsibility. At the same time, the older generation has to be willing — and able — to let go. That’s not always easy, especially when a lifetime of work and identity is tied up in the farm.
Planning ahead gives families the opportunity to talk through different scenarios, explore options and set clear expectations before decisions have to be made.
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