How MPAC Assesses Farm Properties
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How MPAC Assesses Farm Properties

♪ MPAC is the Municipal Property
Assessment Corporation, responsible for assessing more
than five million properties in Ontario in compliance with the Assessment
Act and regulations set by the Government of Ontario. We are the largest assessment
jurisdiction in North America, assessing and classifying more
than five million properties with an estimated total
value of $2.3 trillion. Every four years MPAC mails a Property Assessment
Notice to every property owner in Ontario. The Notice you received in 2016 is MPAC’s assessed value of your
property as of January 1, 2016. Our assessors are trained
experts in the field of valuation and apply appraisal industry
standards and best practices. MPAC’s methods to determine
property values are well-regarded and our expertise is
sought out internationally. Did you know that MPAC’s assessments
and data are also used by banks, insurance companies and
the real estate industry? Most assessment jurisdictions in
North America use this approach to establish the assessed value, commonly referred to as
“Current Value Assessment”. When assessing farm properties, MPAC undertakes extensive analysis
to determine the value of the property. When we collect our sales data, we only use sales of farmlands
which have been sold to farmers. That means sales to buyers who intend
to use the property for other purposes, such as residential
development, are not included. In addition to sales data, our assessors take into consideration the
farmland, residence, residence land, farm outbuildings and other buildings
when determining your property value. Farmland is assessed according
to its soil classification and its ability to produce
crops or sustain livestock. The land is categorized by location,
climatic region, stoniness, soil type, drainage and slope. There are 6 classes, with Class 1 being the most productive
and therefore the most valuable. MPAC considers how much it
would cost to replace the residence, less any depreciation. We take into account the age, size,
type and quality of construction. If the farmer lives in the residence, one acre of the land supporting the
house is valued as farmland. If the house is occupied by a non-farmer,
any land that is used by the occupant is assessed as residential land
and valued as residential. MPAC establishes how much it
would cost to replace an outbuilding such as a barn or silo, taking into consideration
its age, size and design. These buildings are put
into the farm class, if the farmer qualifies for the
Farm Tax Class Incentive Program which is administered by the
Ontario Ministry of Agriculture, Food and Rural Affairs. Similar to farm outbuildings, we determine the replacement costs of other buildings such
as wineries and stores. We consider its age, size and design. These buildings and associated land
are classified according to their use. We also review other information
gained through property inspections, reviews, as well as land title documents,
building permits and sales questionnaires. Once all values are established, we
calculate the total farm property value. Are you eligible for the Farm
Property Class Tax Rate Program? Properties in the Farm Property
Class Tax Rate Program are typically taxed at 25% of the residential rate for
municipal and education taxes. MPAC will classify the farmland
of the residential rate until placed in the Farm
Property Class Tax Rate Program by the Ministry of Agriculture,
Food and Rural Affairs (OMAFRA). Visit to learn more about the Farm
Property Tax Class Rate Program. Want to learn more about how
MPAC assessed your property and compare it to other
similar properties? There’s more information
available to you than ever before at This secure, easy-to-use,
self-serve website lets you download your enhanced
property profile report, create a comparable property report, see market trends for farm
properties across Ontario, and more. To get started, simply register and
log in using the Roll Number and Access Key on your
Property Assessment Notice.

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