Your Guide to Starting a Farm in Ontario

Farm living is rewarding, beautiful and unique in so many ways. As the industry continues to expand, many are opening themselves up to this alternative way of living.

The intention of this blog post is to guide you through the steps to starting a successful farm in Guelph, Centre Wellington or anywhere in Ontario, for that matter.

The first step in your journey to owning a farm is defining your goals and how you plan on using the land:

Hobby Farm Vs Commercial Operation

First, let’s consider what qualifies as a farm in Ontario. From a bird’s-eye view, there are two types of farms or farm properties: hobby farms and commercial farms.

What is a Hobby Farm?

Small-scale hobby farms require significantly less land and can function well with as little as 2-5 acres of land. They are often home to smaller farm animals such as chickens, turkeys, bunnies, goats and or cows.

What Counts as a Commercial Farm?

Commercial operations are an entirely separate sector of farming because they introduce a variety of different purposes and land uses. Commercial farms also commonly host multiple outbuildings which are used as additional storage, animal pens and farm/field machinery.

Buying a Farm in Ontario: Defining Your Goals

Understanding your goals and expectations for your farm is a key component in your search for the perfect piece of land.

For instance, if your goal is self-sufficiency, you will want to look into a farming operation that allows you to have enough land for the basics, without locking you into a property that provides more acreage than you know what to do with.

Let’s break down some different scenarios:

Farming For Self-Sufficiency

1-2 Outbuildings
Access to Land Utilities (water, heat, hydro)
Enough land for a small pasture
Potential to build a coup or small enclosed run for horses, cows or donkeys
1-5 ACRES of land

Farming For Crop Production and Mixed Use

10+ Acres of Flat/Mixed Use land
Ideal growing conditions (dense, fertile soil)
Outbuilding for storage of dry ingredients and farm machinery
Enough room for more than one crop (15+ Acres- MED scale production)

Farming For Income Generation

10+ Acres MINIMUM
Enough space to build/ occupy outbuildings
Indoor storage for farm machinery
Indoor storage for crops/bales
Indoor/outdoor animal habitat (pens/field/pasture space)
Specific barns suitable for particular farm animals (dairy barns, equestrian barns)

Thinking about buying a rural home? Check out these related blogs next!

Understanding Zoning and Agricultural Land Use

Zoning and By-Laws are important factors when you are looking into purchasing or leasing our farm land because they will determine the uses/ potential future uses of the land.

These are the common zoning distinctions on rural properties:

Agricultural/Rural (A, AG, RU)

Ideal for:

Crop Production
Livestock Farming
Farm Buildings
Single-Family Homes
Small-Scale Farming Businesses

Agricultural-related Commercial or Industrial Zoning

Ideal for:

Feeding Mills
Seed Cleaning Plants
Grain Elevators
Equipment Dealers
Agricultural Supply Stores (note: restrictions on this)
Food Processing Plants

Buying the Right Land

There are many key things to look out for when you are on the search for the perfect land to host your farm on:

Soil quality
Drainage and water access nearby
Topography and the overall sun exposure
Existing infrastructure (feed mills, barns, pens, etc.) and the condition of these outbuildings
Proximity to suppliers or vet care in the case of livestock

When buying a farm in Ontario, working with a Realtor who specializes in agriculture will make all the difference. Rural Real Estate agents understand what to look for and will pick up on innuendos about the land and the current condition of the farm/operation that can be less obvious to the average client.

Registration Requirements

Registering your farm as a legal operation is essential. Through Agricorp, you will start by applying for a Registered Farm Number. Next, you will want to look into the current tax balance and see if the property is subject to any regular tax reductions through the Farm Class Property Tax Program.

Other considerations you may want to look into include:

Setting up the business structure that applies to your interests (sole proprietorship, joint interest/partnership or corporation)
Setting up a designated bank account for your business (to keep proper records and apply for an HST number)

Searching for more farm-related insights? Check out these other articles next!

Equipment and Establishing Start-Up Costs

The cost of farming equipment might feel like the best kept secret to someone with no prior experience in the industry. It is best to form a healthy budget for these kinds of costs because they are integral to the success of your farm. Basic investments include:

Tractor
Tillers
Seeders
Tools for Daily Chores
A Tractor-Trailer To Transport Materials
Basic Material Costs
Fencing
Irrigation
Greenhouses/Shed Spaces

What Animals Are Needed For a Farm?

If this is your first time looking into a small-scale farm or business, you may feel left in the dark in terms of the animals that will be a strong investment and easy to start out with. Many farmers recommend starting with these crops and livestock:

Livestock

Chickens
Goats
Sheep
Bees

Crops

Garlic
Leafy Greens
Berries
Pumpkins

Sustainable Farming in Ontario

Sustainable farming is quickly coming to the forefront of smaller farming operations. It mainly focuses on reducing the harmful environmental costs that farming has on the land.

For example, sustainable farming promotes the health of the soil by reducing the use of chemical compounds in the process of farming land. It utilizes methods of crop rotation and reduced tilling to help preserve the natural environment and care for the nutrients in the soil.

Many sustainable farming practices also incorporate the use of drip and rainwater. In doing so, they are able to limit the amount of water they are harvesting or transporting from natural resources.

How to Buy a Farm in Ontario

This blog post has walked you through the basics of starting a farm in Centre Wellington and even the greater parts of Ontario. It is important to consider that restrictions and easements will depend on the area you are looking to farm in.

Ready to take the next step? The best advice we can give is to talk to a Registered Real Estate Salesperson who has experience selling, owning and or managing farm/rural land. Another great resource is speaking to local farmers in your area as a source of information or attending home/farm shows in your region to open up your network!

Starting a farm? Contact the experts in Rural Realty at Capstone REPS today! Reach us by email at info@capstonereps.com or call 519.824.9050.

Ready to Get Started?

Thinking about buying or selling a home in Guelph or Wellington County? Start the conversation with our team today.

Get in Touch