Ontario Agriculture

The network for agriculture in Ontario, Canada

My OMAFRA troubles and my advice to avoid them

Its never nice to hear of someone facing problems, but its useful to take advantage of the opportunity to avoid them yourself.  My opinion of OMAFRA is greatly tainted, but I am open minded enough to realize most problems could have been avoided.  

At issue is the loss of the farm tax rebate which holds municipal tax rates to, well, basically the equivalent of where they alway were.  Without the rebate, taxes quadruple.  As it stands today, my issue is only with the 2012 tax year.  So how did this happen? Well I bought a farm in 2011, my first farm.  To qualify for the tax rebate, you must have a valid FBR number (Farm Business Registration).  In previous years I didn't have an FBR number, I didn't have any land and the number serves no purpose otherwise.  I was able to farm without this, as my father had an exemption to the requirement for religious reasons applied to the farm land.  That sets the stage.

My first mistake - rather than apply for an exemption, i decided its not worth the effort, i will just conform to the system. Unfortunately, this came after September 30, which is the last day you can apply for a 2011 FBR number.  So although I contacted Agricorp in 2011, i was told i had to wait until Jan 3 to apply, which I did.  And with a bit of hassle to prove my  2011 farm activities grossed over $7,000, I was granted a 2012 FBR number.

Well, the 2012 tax rate rebate is based on the 2011 FBR number.  So when I asked OMAFRA to grant me a startup exemption, which would allow the 2012 tax rate to qualify without the prior FBR, it was denied.  Why? I sold too much grain in 2010, it was over $7,000.  I should have applied for an FBR in 2010, even though I didn't own any land.  So my families help by allowing me to ease into farming caused an issue that would not rear its head for several years.  But it could have been avoided had I applied for an exemption (and been granted) or got an FBR number.  

Now that OMAFRA will not recognize me as a startup, they can not change the tax qualification.  So they send me off to the ARB (Assessment Review Board) to file an appeal.  Its amazing that no such appeal exists in OMAFRA, if you don't like what they say, you must go through another government agency.  

In my first conversations with the ARB, I was instructed to send a letter to the chair for reconsideration.  Which was promptly denied and I was told to talk to OMAFRA.  Yea, thats where I just came from.  

So OMAFRA sends me back to the ARB, this time with a better explanation as to the process I need to follow.

So at this point, I must submit an appeal, which is not free of charge, to get this resolved, if they will even resolve it.

My advice to the new farmer in Ontario, get the FBR before you buy any land or at the very least the start up exemption.  By waiting until after, your path is littered with deadlines and forms and costs you don't need.

In defence of the people on the other end of the phone, they have all been polite and tried to help, several did note I shouldn't need to go through all this, but thats just the way it is sometimes.  

I farm because I am a farmer, I just can't stand that the government has to be so involved in this. But they have the upper hand.  All I can hope is it works out in the end.

Views: 532

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Saskatchewan farm show ready to highlight new innovations

Western Canada’s largest outdoor farm show returns this month to showcase new and exciting technology for the agriculture sector. Ag in Motion show director Rob O’Connor said there will be more to explore, drive and discover. “There’s a reason Ag in Motion is known as the place to find out what’s new in agriculture every year,” O’Connor said. “Advancements in production and AgTech are always featured and celebrated here.” Among the key attractions this year are the Ride & Drives that give farmers the opportunity to get behind the wheel and test the latest equipment in real field conditions, offering a hands-on comparison of models and features. A variety of sprayers, tractors and material handling equipment, such as skid steers, compact loaders and will be available to try out. The 2025 Innovations Program highlights emerging products and solutions developed to solve real on-farm challenges, which are available for visitors to view on-site. New this year is the debut of the one-da

Hail, excessive moisture, insects caused the most crop damage in Saskatchewan

Thunderstorms swept across parts of the province, bringing moisture along with some hail and that means some producers will be assessing crop damage over the next week to determine the impact on yields. According to the latest Saskatchewan Agriculture crop report, the most rainfall recorded was 115 millimetres (mm) in the Archerwill area, followed closely by the Beatty area with 85 mm. There was also notable rainfall in the Kinistino and Middle Lake areas with 75 mm and 65 mm, respectively. Despite heavy rainfall in some locations, overall provincial topsoil moisture conditions declined from the previous week’s report. Kim Stonehouse, a crops extension specialist, said other than hail, there were several other factors that contributed to crop damage. “There was also grasshopper and flea beetle activity that has persisted and is causing some minor damage in some dry areas,” Stonehouse said. “In West Central, East Central and Northeast regions producers are reporting minor damage fro

Tax credit expands meat processing facility

The province’s inviting and tax-friendly business environment, and abundant agricultural resources, make it one of North America’s best places to do business. In addition, the Agri-Processing Investment Tax Credit helps attract investment that will further diversify Alberta’s agriculture industry. Beretta Farms is the most recent company to qualify for the tax credit by expanding its existing facility with the potential to significantly increase production capacity. It invested more than $10.9 million in the project that is expected to increase the plant’s processing capacity from 29,583 to 44,688 head of cattle per year. Eleven new employees were hired after the expansion and the company plans to hire ten more. Through the Agri-Processing Investment Tax Credit, Alberta’s government has issued Beretta Farms a tax credit of $1,228,735. “The Agri-Processing Investment Tax Credit is building on Alberta’s existing competitive advantages for agri-food companies and the primary producers t

Massey Ferguson introduces the MF 8S Xtra featuring comfort and efficiency upgrades

Massey Ferguson, a worldwide brand of AGCO (NYSE:AGCO), is proud to announce the introduction of its new MF 8S Xtra series, building on the success of the multi award-winning MF 8S models and featuring new styling, increased efficiency and even better operator comfort.

Four-Time Olympic Gold Medalist, Hall of Fame Inductee, and Philanthropist Dr. Hayley Wickenheiser to speak at Grape Growers 40th Annual Celebrity Luncheon

The Grape Growers of Ontario’s Celebrity Luncheon marks the opening of the Niagara Grape and Wine Festival by showcasing Canadian personalities and celebrating the annual grape harvest. This year, in partnership with Meridian

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service