Farm business registration (FBR)

A farm buyer should check the registration number when reviewing tax and program eligibility. This entry covers Ontario only; check the rules where you are. The Act defines a farming business as one that carries on farming activities and reports income from them to the Canada Revenue Agency, and the number is a unique identifier issued under the Act.

The duty and where it matters

Section 2(1) requires a person who carries on a farming business to obtain a registration number from the Director if the annual gross income, determined as the regulations provide, is equal to or greater than the prescribed amount, subject to any exemptions the regulations make under the Act. Under s.2(4) and (5) a number expires and must be renewed as the regulations set out. The Ontario government also lists a valid number among the conditions for the farm property class tax rate program, and says anyone who recently purchased farmland or had a change in its ownership should visit the Agricorp website to check eligibility and how to apply or reapply.

What to ask

• Whether the business holds a number and in whose name
• Whether the buyer, or the buyer’s entity, must register separately after closing
• Whether the property tax class depends on the seller’s number and what happens on a change of ownership

The farm business buyer checklist lists this beside other items, and nutrient management plan covers another Ontario farm approval.