No reduction in farm tax ratio; committee to help young farmers

A farmer at County Road 28 works the field. John Ferguson file photo

Prince Edward County Council has voted to keep the current farm tax ratio at 25 per cent but hopes a new committee with find solutions to assist young farmers struggling with skyrocketing tax assessments.

Of the many plights this council has seen over the past years, including wind turbines, size of council and Save Picton Bay, councillor Kevin Gale says the farm tax ratio issue might be the number one topic that could potentially polarize the community.

“What I have found out talking with farmers, is not all of them support this (request for reduction),” said Gale. “One farmer said that when he farmed in the 80s he had to borrow money at 20-25 per cent. He said ‘I learned how to farm; I learned how to spend money and I got over it.’ They’ve had hardships; they’ve had and they learned to adjust – that’s their business.

“We’re not taxing farmers, we’re taxing land based on the assessed value recognized in Ontario,” said Gale, a supporter of the County staff’s recommendation to maintain the farm tax ratio. “We all like to see our assets increase in value – what we don’t like to do is pay taxes – on anything. I don’t like to pay tax.”

Gale sympathized with the hardships placed on farmers but said those shouldn’t be placed on others who are not responsible for them. He, and other members of council, expressed empathy for the young farmers, the next generation that wants to farm.

Following marathon discussion on the issue that first came before them a year ago, councillors agreed an adhoc committee be tasked with brainstorming solutions to help next generation farmers who are struggling.

The Municipal Property Assessment Corporation hike soared by an average of 110 per cent in 2016, well above the 13 per cent average for residential properties, and for some, more than double the 65 per cent average hike over the four-year period across Ontario.

Full-time farmer Elizabeth Johnston told council she attempted to challenge her assessment with MPAC, ‘to little avail’ when faced with a 150 per cent increase.

“This massive increase makes it particularly difficult for young farmers to get established,” she said noting an average income of $35,000.

“This increase alone, after a good year of farming, with no drought, no excess rain, good hay and of course, a lot of luck, represents eight to 10 per cent of my income,” she said. “I also bought the farm recently, so I have no increase in wealth. The MPAC assessment is actually less than I paid for the farm.”

Connor Sweet, a young farmer in Sophiasburgh, also appealed his assessment noting MPAC had incorrectly identified the number of acres, soil type and depth on his property.

“This tax hike threatens small farms,” he said. “We are already fighting weather, turbulent commodity prices and endless other challenges. We do not need another hurdle thrown in front of us… We are asking to be treated fairly so we can continue to farm and take these challenges on ourselves. Farmers are declining. Less and less are taking on the family farm because less and less can support even one person’s income… If trends like this continue there’s going to be one less, two less, three less, and it continues.”

The issue has been before council for the past year, brought to the horseshoe by John Thompson, president of the Prince Edward Federation of Agriculture.

“People care about their food and they care about farmers and are concerned for their future,” said Thompson. “Our organizations are advocating the reduction to ensure our County farms are viable for future generations.”

In supporting the new committee to assist young farmers, councillors stated they want to see terms of reference that could be put into place for assistance this year.