Policy & Advocacy
Farm Ownership Transfers
Issue Overview
As the average age of the Canadian farmer continues to increase, effective succession planning is critically important, particularly for a sector that will transfer tens of billions of dollars in assets to the next generation in this decade alone.
In many cases farmers plan to hand their farm down to their children who have grown up on the farm and are willing to take over.
However, new entrants into the industry face a variety of difficult obstacles to entry, including massive capital costs.
Studies show that family farming encourages sustainable growth, environmental stewardship, and increased spending within one’s local community, not to mention its contributions to the social fabric of rural Canada.
Quick Facts
- In 2021 the average age of a Canadian farmer was 56. 60.5% of farmers are 55 and older.
- More than 40% of the current agriculture domestic workforce is projected to retire by 2033.
- According to StatsCan, only 12% of farmers have a written succession plan.
- Over the next 10 to 15 years, it’s estimated that between 40% and 80% of farm assets, valued at approximately $245 billion, are expected to change hands. This impending transfer underscores the importance of effective succession planning.With the prices of land continuing to increase, rising capital requirements for new entrants to the industry have become significant barriers.
- Many Canadian farms are family-run operations supporting multiple households. The intricacies involved in transferring such enterprises add layers of complexity to succession planning.
CFA Policy Manual
For more information about this issue and all other key issues in Canadian agriculture, please refer to our current Policy Manual
