The taxable value of farmland and farm dwellings has increased by 11% across the province, slightly less than for residences, which increased by 12%.

If the mill rate were to remain the same, says the Ontario Federation of Agriculture’s Ted Cowan, the tax share for farms will fall. Cowan is a researcher on taxes and energy.

But that’s probably not going to happen in rural municipalities where commercial and industrial assessment is low. The counties of Stormont, Dundas and Glengarry are expected to see increases despite an assessment below the provincial average. Over the last three years, the levy in the three counties along with many others has increased by 25%.

Lower transfer payments from the province for items like highways and ambulance services have created cash shortfalls in many townships. What’s more, amalgamation has created more expensive governments who in cases like the City of Ottawa seem to have no limits.

Dwight Eastman, a beef farmer and for-mer councilor for the city of Ottawa, says taxes based on the value of a property is a good idea but MPAC (Municipal Property Assessment Corporation) is out of control. "I appealed four farm properties two years ago," he says. "I paid my money and everything is in the system but I’ve never heard back. You really can’t win."

In Ottawa, farmland is being valued at $2,500 an acre regardless of its farming value. Farmland around Ottawa is going to millionaires and lawyers who are looking for retirement estates, Eastman says. Beef farmers can’t afford their prices.

Cowan didn’t have figures on the green belt around Coburg, but
valuation of farms there have increased by as
much as 49%. Cowan
says assessments like that are based on speculation rather than farm value.

He says he’s argued with MPAC until blue in the face that they didn’t have enough data to assess farms. In a 3-year period there have been only 13,000 sales of Ontario farms, but about 4,000 were within families.

Over the years, Cowan says, farm taxes increase by 2-3% annually across the province. Close to major urban areas, values have gone up by 20% this year. He cites Halton, Wellington and Ontario counties, where increases are spurred by residential development.