![]() ![]() ![]() ![]() Thus if you realistically expect to make a profit from your farming activities you have a farm business and if not you have a hobby farm. On the other hand a business is defined as a commercial venture undertaken with an expectation of profit. Webster's dictionary defines a hobby as "a pursuit outside one's regular occupation engaged in especially for relaxation." In most cases the recreational activities that we choose cost us money (for equipment, fees and travel etc.) yet we do not expect any income from them. One approach to making this distinction is to compare a hobby to a business. There is no commonly accepted definition of a hobby farm. What is the difference between a hobby farm and a regular farm? In addition the farm business must show a potential for profitability.įor the Farm Census completed by Statistics Canada, a census farm is defined as an agricultural operation that produces at least one of the following products intended for sale: crops (hay, field crops, tree fruits or nuts, berries or grapes, vegetables, seed) livestock (cattle, pigs, sheep, horses, game animals, other livestock) poultry (hens, chickens, turkeys, chicks, game birds, other poultry) animal products (milk or cream, eggs, wool, furs, meat) or other agricultural products (Christmas trees, greenhouse or nursery products, mushrooms, sod, honey, maple syrup products).Īnyone considering establishing a farm operation should obtain detailed information on these items from the appropriate level of government. To be considered a full-time farmer however the farm income will be compared to any off-farm income - if the off-farm income is higher the individual will only be eligible to only claim part of any farming losses against their other income. More information on property taxes can be obtained for your county or municipal district office.įor income tax purposes the Canada Revenue Agency (CRA) you are a farmer if you claim income from farming activity. If the property is assessed in a different class, for example, country residential the annual tax bill will be higher. This $10,000 minimum production threshold is also required for most other provincial and federal-provincial farm programs.įor the municipality they will need to have the property in agricultural production for it to be taxed at the farm property tax rate. To be considered a farm for the Alberta Farm Fuel benefit (and be eligible to use marked or "purple" fuel) the farm business must have $10,000 or more of gross annual farm production. There are several different definitions of a "farm" depending on who the owner(s) will be interacting with. What do I have to do to be considered a farmer in Alberta? ![]()
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