Selling Your Farm? Understand the
Tax Impact Before You Decide

When farmland is sold, the resulting capital gain can create a significant tax obligation. Before you finalize a sale, it’s important to understand the potential tax impact—and how different planning options compare.

This calculator gives you a side-by-side estimate of:

Your potential capital gain

Taxes icon
Estimated taxes payable under an immediate sale
Land-Unit Exchange Program icon

An illustration of how a Land-Unit Exchange Program may differ in timing and structure

Why This Matters When Selling Farmland

For many farmers, the land is the largest asset and has appreciated over decades.
When the time comes to sell, the tax consequences can be substantial—especially under current capital gains rules.

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Understanding your options early
helps you:

Prepare for the tax implications of a sale

Compare different approaches side-by-side
Discuss informed strategies with your accountant

Align your sale with retirement, estate, or succession goals

This tool offers a clear, illustrative comparison to support your planning.

Compare Two Approaches

Calculator

Option 1: Sell and Pay Taxes Immediately

  • Sell your farmland and realize any capital gain today
  • Pay tax based on your specific situation and applicable rules
  • Invest the after-tax proceeds in a diversified portfolio
Farm field arial view

Option 2: Land-Unit Exchange Program

  • Sell your farmland to a qualifying Farm Land-Unit Trust
  • Receive trust units instead of cash
  • Taxes may be deferred depending on your circumstances
  • Maintain exposure to agricultural real estate through the trust structure
How We Prepare Your Estimate - Farmland

How the program works

To provide a clear, simple comparison, we use the following inputs:

You provide:

  • Proceeds from sale of farmland: The estimated sale price of your land.
  • Cost of land (Adjusted Cost Base – ACB): What you originally paid for the land plus qualifying improvements.
  • Type of farmland: Whether the land is owned personally or through a corporation.
  • Estimated rate of return: A reasonable long-term after-tax rate of return applied to both approaches.

We illustrate:

  • An estimate of your capital gain
  • An estimate of tax under an immediate sale using a flat 25% tax rate, for comparison purposes
  • A side-by-side illustration of both approaches over time using the same assumed rate of return

Important:

These calculations provide illustrative estimates only. They do not account for capital gains exemptions or other deductions and do not replace professional tax advice. Actual results depend on your personal circumstances, province of residence, ownership structure, and future tax rules. We recommend reviewing your results with your accountant or tax advisor.

Get Your Personalized Estimate

Find out how your farm sale could look under each approach. Enter your details below and we’ll send you a customized illustration by email.
You will receive:

An outline of your estimated capital gain

A comparison of an immediate sale vs. a Land-Unit Exchange Program

A summary that you can review with your accountant, lawyer, or family

Private and confidential | Delivered by email | No obligation

Prefer to Speak With Us Instead?

If you’d rather discuss your situation directly, you can choose one of these options instead of completing the calculator:

  • Select “Call Me” – A representative will contact you to discuss your options.
  • Book a 30-Minute Chat – Schedule a consultation at your convenience.


Whether you complete the calculator or opt for a direct conversation, we’ll ensure you receive the information and guidance you need to explore the program’s benefits.

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