FARM TRANSFER

For the Love of the Land
You've dedicated your entire life to making your farming operation a success. Therefore, it is only natural that the transfer of your farm to one or more of your children is a decision close to your heart.

Did you know that by contacting the National Bank and requesting assistance with the transfer process, you can count on the service of professionals who will help you plan your retirement, while keeping your interests and those of your children in mind? The tax specialists, notaries, appraisers and agronomists at National Bank and National Bank Insurance Firm (NBIF) will put their agricultural and financial expertise to use to best meet your needs.

Important Figures
Have you noticed your business' debt steadily increasing over the past few years? You should be aware that this has been a common trend in agriculture, as it now takes anywhere from $3.00 to $8.50 in order to obtain $1.00 in gross income*. Ten years ago, this ratio was five to one.

Thus, the amount of debt has outpaced the ability to repay, and explains in part why joint management periods are much longer than they were in the past. Parents are now more deeply involved in financial matters than before, and continue to work well into retirement age. Contrary to popular belief, most do not have many long-term investments. With the Quebec provincial average hovering around $20,000, this essentially means that they are depending almost entirely on selling their stake in the farm to ensure a comfortable retirement for themselves.

Solutions for a Successful Transfer
Do you plan on buying or selling either your quotas or your land? Will you sell the buildings and farm equipment to your successors and lease them your land? Would you consider using estate freezing to keep the estate in the family and ensure full control over it?

Your National Bank agricultural account manager is there to guide you and will explain the ramifications of each of your alternatives. What's more, he/she can recommend the best transfer solution for your particular circumstances. Therefore, whether you are planning on transferring your farm in the distant future, are currently in the process of a transfer or will be doing so very shortly, you will get the information you need.

By choosing the National Bank as a partner for your transfer, you'll be reaping what you've sewn!

*Source : Statistics Canada, Farming Survey, 2002, compiled by the Agriculture Sector.