land development/ farm considerations

Question 1

raw land vs site

Answer 1

land development may involve raw land (unimproved or vacant land)

development site- land that has been serviced at at least to some extent

Question 2

urban brownfield are attractive given municipal tax incentives and existing infrastructure ( road, sewer, water)

Question 3

key factors include

Answer 3

available transportation route
access to municipal services
topography

zoning title restriction
eastment

Question 4

vacant site

Answer 4

• it is legally permissible ( does it comply with zoning)

-it is physically possible ( would the land size and shape accommodate the planned development )

• it is financially feasible

-max productive

Question 5

if an improved site

Answer 5

-exciting structure, does it add value to the land

• and is it in its highest best use

Question 6

land assembly/ plottage

Answer 6

several parcel of land have more value when combined than they do separately

Question 7

commercial ventures risk :

Answer 7

-financial risk-
- shift in market supply and demand
-government policies regarding tax

• local planning appeal tribunal ( risk it will not be approved)

-altered use

• contamination

Question 8

clean water act

Answer 8

detailed programs and policies to ensure that current/future drinking water source are protected

Question 9

farm debt mediation act

Answer 9

involves a wide variety of good such as crops, livestock, eggs production, milk…

Question 10

trend analysis

Question 11

Ontario building code

Answer 11

apply to different structure including barns, silos, farm, chicken coops..

Question 12

municipalities issues building permits for farm structure

Answer 12

as is the case with other commercial properties

Question 13

the National farm building code

Answer 13

include additional requirement that also apply

Question 14

Canada plan service ( CPS)

Answer 14

consisting of agri-enginerrs and other technical experts

Question 15

planning / zoning ( agricultural protection- )

Answer 15

zoning priority is the protection of farm land from conversion to non-farming use

• this also extend to agriculture business provide good and services for farming

Question 16

municipal pesticide restriction

Question 17

min distance seperation

Answer 17

zoning bylaws

Question 18

nutrient management act

Answer 18

this apply to all farms generating more then 5 nutrient units

• natural fertilizer generated by houses animals

Question 19

farming and food production protection act

Answer 19

• normal farm practice
• deal with complains
• Normal Farm Practice Protection Board

Question 20

a consumer complaint

Answer 20

-complain are logged in Normal Farm Practice Protection Board

• if the board determines the actives are normal farm practice the claim is dismissed
• if the decision go the other way the board might require the farm to cease certain activities or modify them to ensure that they are consistent with normal practice

Question 21

crop share lease

Answer 21

crop income is shared between landlower and tenant on a percentage basis

Question 22

cash rent lease

Answer 22

tenant gets the crop income but pays fixed rent to the landowner 50% upfront and when the crop is harvested

Question 23

flexible cash lease

Answer 23

a hybird arrangement in which the tenant gets the crop income but rent is based on the crop commodity prices

Question 24

farm credit corporation

Answer 24

offer lending and services to farmers

Question 25

capital gain

Answer 25

farms are taxed on a 50% capital gain

but there is two important exemptions:

1- the farm is sold to that individual child
2- transfer of share in family farm partnerships and corporations

Question 26

purchase price addendum

Answer 26

a schedule is often needed setting out specific asset value making up the purchase price agreed to during negotiations

Question 27

quota production transfer or assignment

Answer 27

often will need to be conditional on successful transfer or assignment

Question 28

wooded area

Answer 28

municipality restrict tree cutting and require an appropriate permit

Question 29

livestock

Answer 29

number and type of livestock need to be documented in a schedule

Question 30

organic farming

Answer 30

environmental site assessment may be required to ensure the farm has been compliant with organic farm practice

Question 31

when developer is seeking an amendment to the ‘OFFICAL PLAN’ OR ZONING BYLAWS

Answer 31

the municipality would typically require certain studies be completer in support of the amending agreement ( issues as sewage, stormwater, environmental matters)

Question 32

in order for a farmer to meet requirement for a farm title drainage loan

Answer 32

work must be completed by a licenses drainage contractor

Commercial farming operations may require the
installation of an underground drainage system, either
tile, pipe, or tubing, to improve productivity of
agricultural land. The underground drainage system
removes excess water from crop roots, thereby
heightening crop yields and overall farming efficiency. A
licensed draining contractor installs the system and
provides the farmer with a certificate of completion and
a tile drainage record that shows the location, spacing,
direction, and depth of the tile bed.

Question 33

milk quota with Ontario milk marketing board

Answer 33

salesperson should include a specific condition allowing he buyer sufficient time to fully investigate the transferability of this quota

• the salesperson should ensure the buyer client best intrest are protected throught a properly-worded clause ( AS THE QUTO DIRECTLY IMPACTS THE FARM VALUE)

Many agricultural products are subject to regulated marketing through marketing boards. Farm value can be
significantly affected by whether a quota or production contract can be assigned at point of sale. For example, a
dairy farm without a milk quota is of little value, even if it has first-class milk production facilities. A prospective
buyer would want to know if a quota or production contract can be assigned at a point of sale.
As a salesperson, you will need to insert a clause in the agreement making the offer conditional upon the successful
transfer or assignment from seller to buyer of any quota, entitlement, or contract that the buyer needs to market
products for which the farm is being purchased. Specific marketing boards have their own transfer or assignment
procedures and should be contacted directly for guidance

Question 34

Many agricultural products are subject to regulated marketing through marketing boards. Farm value can be
significantly affected by whether a quota or production contract can be assigned at point of sale. For example, a
dairy farm without a milk quota is of little value, even if it has first-class milk production facilities. A prospective
buyer would want to know if a quota or production contract can be assigned at a point of sale.
As a salesperson, you will need to insert a clause in the agreement making the offer conditional upon the successful
transfer or assignment from seller to buyer of any quota, entitlement, or contract that the buyer needs to market
products for which the farm is being purchased. Specific marketing boards have their own transfer or assignment
procedures and should be contacted directly for guidance

Question 35

a municipality when considering an amending application involving official plan

Answer 35

may impose conditions when approving he applications

Question 36

the provincial farming and food production act takes priority over municipal bylaws that seek to restrict normal farm practices

Question 37

if the property is at higher grade than its abutting neighbours then its not viewed as a detrimental environmental condition

Answer 37

but its is if it is at a lower grade

Question 38

disturbance to properties abutting a farm such as odour, noise are considered normal farm practices and therefore acceptable regardless of municipal bylwas

Question 39

soil test for farming purpose

Answer 39

helps detemine what fertilizers should be used for optimum corp production