Thousands of Family Farms at Risk Due to Outdated Inheritance Rules

Nearly 3,000 Family Farms Disappear Every Year, Threatening Generations of  Family Agriculture in Canada

GUELPH, ON, Nov. 17, 2025 /CNW/ - Family farmers across Canada are calling on the federal government to modernize "old fashioned" tax laws prohibiting them from passing properties down to their nieces and nephews without crippling financial burdens, creating a silent inheritance crisis and threatening the foundation of family farming in Canada.

Under the Income Tax Act (ITA), a farmer can transfer qualified farm property to their child on a tax-deferred basis, but not to a niece or nephew, even if they have worked the same land for decades. This outdated restriction often triggers capital gains taxes in the millions, forcing younger family members to sell the farms they've helped sustain, dooming the family farm.

According to Statistics Canada, the average Canadian farmer is now 56 years old, and fewer than 1 in 12 farms has a successor under 40. Without immediate reform, tens of thousands of acres of ripe farmland could be lost to consolidation under control of foreign-owned agriculture giants.

"The law no longer reflects today's farming families," says family farmer and advocate Derryn Shrosbree, founder of 33seven, a national advisory firm specializing in farm succession and estate equalization. "Generations ago, farmers had ten or twelve children, and there were always natural heirs.  Today, many farmers either have no direct descendants, or their children have chosen different careers. 

"I can tell you first-hand that many farmers have nieces and nephews who spend decades managing crops, livestock, barns, and keeping the operations running.  They deserve to inherit the farm without being forced out by unfair tax laws. These laws are outdated, and they need to change - now."

Over the next decade, more than $50 billion in Canadian farmland will change hands, providing the government with an opportunity to prevent corporate takeovers of family farms and protect Canadian farming interests.

"Everyone says it's time for 'elbows up', so let's give more of our heirs a chance to keep family farming from disappearing altogether," Shrosbree adds.

The agriculture sector employs approximately 2.3 million Canadians - that's roughly 1 in 9 jobs across the country. By amending Section 73(3) of the ITA laws to support intergenerational transfers beyond direct descendants, we not only protect our agricultural heritage in Canada, but also protect jobs, strengthen local food security, and rural economics.

Supporting family farms is a Canadian value - and making the system fairer for all families benefits us from coast to coast to coast.

About 33seven

33seven is a Canadian advisory firm dedicated to succession, transition, and legacy planning for farm families. With a focus on continuity and sustainability, 33seven helps farmers navigate the financial, operational, and emotional complexities of passing agricultural businesses from one generation to the next. For more information visit: 33seven.ca

SOURCE 33seven

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