Definitions of farm/farm operator

The definition of “farm” and a farm operator varies between industry, academia and government and across government agencies. Following are definitions from the Census of Agriculture, the Income Tax Act, Fuel Tax Regulations, SGI, Crop Insurance and AgriStability.  Also included are generally accepted definitions of “family farm” and “larger commercial farm”.

Definition for Census of Agriculture

Since 1996, 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); 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).

Since 1991, "farm operators" have been defined by Statistics Canada as those persons responsible for the day-to-day management decisions made in the operation of a census farm or agricultural operation. Up to three farm operators could be reported per farm.

Definition in Income Tax Act

• Farming is defined in the Canadian Income Tax Act (Section 248) as follows:
  • Farming includes tillage of the soil, livestock raising or exhibiting, maintaining of horses for racing, raising of poultry, fur farming, dairy farming, fruit growing and the keeping of bees, but does not include an office or employment under a person engaged in the business of farming.

Definition for Fuel Tax Exemption Permits

The Saskatchewan Fuel Tax Regulations, 2000, provides the following definitions:

2(h) “farm” means an area of land in Saskatchewan:

1. of at least 30 cultivated hectares used for the growing of cereal crops for sale; or
2. used for the growing or raising of primary farm products for sale that generate an annual gross revenue of at least $10,000;

(h.1) “farmer” means a person who:

1. controls and is responsible for the operation of a farm;
2. owns or is the lessee of the farm; and
3. makes an appreciable contribution to the growth and maturity of primary farm products by being actively and directly involved in farming operations; but does not include a person who:
4. is the lessor or has entered into any other agreement whereby the person has transferred the farm or an interest in the farm to another person for the purpose of farming it;
5. buys primary farm products solely for the purpose of resale; or
6. holds an interest in the farm solely for investment purposes;

Definition for SGI

The Vehicle Classification and Registration Regulations under The Traffic Safety Act states the following:

2(d) “farm” means an area of land in Saskatchewan:

1. of at least 30 cultivated hectares used to grow barley, canola, flax, oats, rye or wheat for sale; or
2. used to grow or raise primary farm products for sale that generate an annual gross revenue of at least $10,000 for the previous year;

(d.2) “farmer” means a person who or partnership that:

1. controls and is responsible for the operation of a farm;
2. owns or is the lessee of the farm;
3. makes an appreciable contribution to the growth and maturity of primary farm products; and
4. in the case of an individual who grows barley, canola, flax, oats, rye or wheat, where required, holds a valid Permit Book issued by the Canadian Wheat Board; but does not include a person who or partnership that:
5. is a lessor or has entered into any other agreement whereby the person has transferred the land or an interest in the land to another person for the purpose of farming it;
6. buys primary farm products solely for the purpose of resale; or
7. holds an interest in a farm solely for investment purposes;

Definition for Crop Insurance
Under the Crop Insurance Regulations the following definition of a farm operator is provided:

2(2) for the purposes of clause 2(h) of the Act, “operator of a farm” means the person who is actively engaged in the production of the insured crop and who is legally, operationally and financially independent of all other insured persons.

(3) in determining whether a person is legally independent for the purposes of subsection (2), the corporation may consider whether that person has access as of right to the land on which the insured crop is grown, by virtue of ownership, rental agreement or formal farm operating agreement.

(4) in determining whether a person is operationally independent for the purposes of subsection (2), the corporation may consider the following factors:

1. whether the person makes critical farming decisions respecting the insured crop;
2. whether the person is responsible to ensure that day-to-day operations are completed respecting the insured crop;
3. whether the person has access to separate storage facilities;
4. whether the person has access to adequate machinery.

(5) in determining whether a person is financially independent for the purposes of subsection (2), the corporation may consider the following factors:

1. whether the person is able to file separate income and expense statements for income tax purposes;
2. whether the person maintains separate farm accounting records;
3. whether the person maintains a separate bank, credit union or trust company account;
4. whether the person has a separate Goods and Services Tax number;
5. whether the person has a financial interest in the insured crop.

AgriStability

Uses the terminology of eligible participant.

• To be eligible to participate in the AgriStability program, you must derive income from the primary production of agricultural commodities, provided in the program year you have:
  • carried on the business of farming in Canada and reported farming income (or loss) for income tax purposes;
  • completed a minimum six consecutive months of farming activity;
  • completed a production cycle; and
  • submitted the required information by the deadline.
• A production cycle includes one or more of the following activities:
  • the growing and harvesting of a crop;
  • the process of rearing livestock; and/or
  • the purchase and sale of livestock within a program year in the case of feeding and finishing enterprises.
• Status Indians who carry on the business of farming on a reserve in Canada, who are exempt from filing income tax returns, are eligible to participate provided they submit the information they would otherwise have reported for tax purposes.
• If you were unable to complete the minimum requirement of six consecutive months of farming activity and production cycle due to reasons beyond your control (such as disaster circumstances like flooding or drought), the conditions may be waved.

Definition of Family Farm

“Family farm” generally means a farm where the farm family provides much of the capital and labour for the farm. In some cases there are seasonal employees.  Many incorporated farms are still considered to be family farms.

Definition of Larger Commercial Farm

“Larger commercial farm” can still include a farm family but generally hires outside (steady) employees and utilizes capital from other sources.