A Simple Guide for Retiring Farmers in Saskatchewan

Farming is more than a job—it’s a way of life. Many farms in Saskatchewan have been in the same family for decades. They carry stories, hard work, and pride. But one day, every farmer faces the same question: What happens when it’s time to retire?

Selling your farm is not an easy choice. It can bring up strong emotions, but it can also give you financial safety for your later years. This guide will help you plan ahead so you can retire with comfort and confidence.

Start Early: Plan for Retirement

Retirement planning takes time. The earlier you start, the smoother things will go.

• Think about your needs: What kind of life do you want in retirement? Do you plan to travel? Focus on hobbies? Cover higher health costs? Knowing your income needs is the first step.
• Talk with family: If you have children or heirs, talk early. Decide if anyone wants to keep the farm or if selling is the best choice.
• Get expert advice: Accountants, lawyers, and farm tax specialists can help you understand your options and avoid costly mistakes.

Know Your Options

Retiring doesn’t always mean selling everything right away. You have choices:

• Sell the farm outright: A full sale gives you cash and a clean break. Many farmers qualify for Canada’s Lifetime Capital Gains Exemption (up to $1 million tax-free).
• Borrow against the land: Use the farm as collateral to get a line of credit while keeping ownership.
• Lease the land: Keep the land, rent it out, and collect a steady income. This also helps younger farmers get started.
• Gradual exit (if incorporated): Slowly redeem shares or take dividends over time. This spreads out taxes and allows a smoother handover.

Get the Best Value for Your Farm

Your farm is worth more than just land; it includes equipment, buildings, and sometimes water or crop rights.

• Get a formal valuation: This ensures you know the fair market value.
• Plan for taxes: Different assets may be taxed differently. Good planning can save thousands.
• Spread out income: Instead of a lump-sum sale, you may want to structure payments over several years to lower tax rates.

Honor the Emotional Side

Selling a farm is not just a financial step; it’s a personal one.

• Legacy matters: Some families want the farm to stay in the family. Others are happy to see it go to another farmer who will care for it.
• Be fair with heirs: If only one child farms, make sure others feel treated fairly.
• Stay connected: You may choose to lease back part of the land or stay on the property in retirement housing.

Make a Clear Timeline

A good retirement plan doesn’t happen overnight. Give yourself at least 5 years to prepare.

• Start transferring duties to the next generation early.
• Put agreements in writing to avoid confusion later.
• If you want to stay on the farm, explore life estate or leaseback agreements so you can live there even after selling.

Protect Your Retirement Money

Once the farm is sold, the next step is protecting your money.

• Diversify investments: Spread funds into safe options like RRSPs, TFSAs, or annuities.
• Update your estate plan: After the sale, adjust your will and trust documents. This avoids family disputes and probate issues later.

Retirement Checklist

• Start planning for 5+ years.
  
• Decide: sell, lease, or borrow against the farm.
  
• Get a professional valuation.
  
• Plan for taxes.
  
• Talk with family and be fair to all heirs.
  
• Create a clear transition timeline.
  
• Protect and invest sale proceeds wisely.
  

Final Thoughts

Your farm is more than soil; it’s your story, your hard work, and your legacy. Selling it may feel hard, but it can also give you freedom, safety, and peace of mind.

With early planning, honest family talks, and smart financial moves, your farm can support you long after your last harvest. 

Ready to explore your options? Visit: Farms for sale in Saskatchewan