Classifying Farm Land

What qualifies for farm class?

Under B.C. Regulation 411/95 (Standards for the Classification of Land as a Farm) of the Assessment Act, a farm is all or part of a parcel of land used for:
a) primary agricultural production;
b) a farmer’s dwelling; or
c) the training and boarding of horses when operated in conjunction with horse rearing.
All farm structures, including the farmer’s dwelling, will be classified as residential.

How do I apply?

For land to be classified as farm for the next taxation year, the owner must submit an Application for Farm Classification to the local assessment office. Application forms are also available at your local BC Assessment office.

What if only a part of my property is farmed?

Unused land in the Agricultural Land Reserve (ALR) may qualify for farm class if part of the parcel is farmed. To qualify, the owner must certify that the unused area is being held for primary agricultural production. Certification forms are available here or at your area BC Assessment office. If the property is not in the ALR, the non-farmed portion will be classified according to it’s use and zoning.

Why does BC Assessment need to know about my farm income?

In order to receive and maintain the farm classification, the land must generate income from primary agricultural production.

Your minimum annual income will be calculated based on the farm gate prices of your agricultural products. This income may be calculated for either of the last two years ending October 31. You must sell primary agricultural products each year. Crops grown for home consumption will not be considered part of your farm income. Minimum income requirements are calculated as follows:

• $10,000 on land less than 8,000 m² (2 ac)
• $2,500 on land between 8,000 m² (2 ac) and        4 ha (10 ac)
• On land larger than 4 ha (10 ac) you must earn $2,500 plus five per cent of the actual value of any farm land in excess of 4 ha.

What is “primary agricultural production”?

For the purposes of farm classification under B.C. Regulation 411/95 of the Assessment Act, primary agricultural production is:

• apiculture;
• aquaculture;
• Christmas tree culture (plantation and cultured native stand);
• dairying;
• floriculture;
• forage production;
• forest seedling and seed production;
• fruit and vegetable production;
• grain and oilseed production;
• herb production;
• horse rearing;
• horticulture;
• Populus species and Salix species intensively cultivated in plantations;
• insects raised for biological pest control;
• livestock raising;
• medicinal plant culture;
• poultry and egg production;
• seed production;
• turf production;
• wool, hide, feather or fur production; and
• the raising of crops or animals for human or animal consumption.

The following are not considered primary agricultural production:
(i)   the production of manufactured derivatives from agricultural raw materials;
(ii)  primary agricultural production for domestic consumption on the farm;
(iii)  the production of agricultural by-products;
(iv) agricultural services; or

1. breeding and raising of pets, except horses.

What does “farm gate price” mean?

Farm gate price is the dollar value you receive from direct farm sales, or the value of primary products that are used for processing. In the case of livestock, farm gate price means the live weight sale price, less any purchase costs – not the killed or dressed sale price quoted from the butcher.

What happens if I cannot supply sales receipts?

In the absence of receipts, BC Assessment staff may rely on local market prices supplied by the Ministry of Agriculture and Lands or other local sources. You may be required to provide a sales log or other proof of farm sales.

What happens if my farm does not meet the income requirements, or I stop farming?

BC Assessment will remove the property from the farm class.

Can I apply to have the farm class re-instated in the future?

Yes. If you re-apply for farm classification and meet the prescribed qualifications, your property can qualify for farm class.

Do I need to apply for farm classification every year?

Property already classed as farm land must continue to meet the requirements for farm class to receive farm classification for the following year. You are encouraged to provide the application to the assessor by October 31, to ensure that the correct information appears on the following year’s assessment notice. BC Assessment may require you to provide additional information in support of continued farm classification.

1. Failure to provide the required information about your farm operation will result in the removal of farm classification from your property.

Owners are strongly encouraged to apply by mid-year to give BC Assessment staff time to conduct a field inspection or request additional information.

What if I buy a property that is already classified "farm"?

If you plan to continue to farm the property, you should submit a farm application to BC Assessment after you purchase the property.

If you are not planning to continue to farm the property, contact BC Assessment and notify the staff of your plans to cease agricultural activity.

 

For more information on farm classification contact your area BC Assessment office or visit www.bcassessment.ca. Applications for farm classification are located at http://www.bcassessment.bc.ca/pdf/forms/FarmClassForm.pdf.