Off Grid Homesteading

[IKnowNothing]

Again I can't highlight enough the value of investigating woodlot options. One I toured years ago in Pembrooke area of s. Ontario was paying over $250,000 LESS tax due to the woodlot designation due to being a large area of forested land in the middle of cottages....municipality by default assessed everything as recreational tax vs. agriculture.

If I can get my plan done and signed off I should be able to drop my taxes from ~1400 to closer to $100/year.

Unfortunately the rules and eligibility vary a lot by province but conservation, long term investment, recreation and/or inter-generational transfers are not unheard of reasons of managing a woodlot...it's not just logging or may not involve logging at all.

Another thing I've been dancing with the idea of is conservation easements + registering a management plan. Massive tax advantages

 

[foresterab]

I'm very hesitant on conservation easements....while many are okay...some are permanent injunctions on the property that may affect things down the road. Or inadvertently trigger additional rules that normally wouldn't be involved...

But a few examples just to show how widely they vary..

• New York State issues conservation easements to encourage forested land due to a) improved water collection/retention for cities and b) anti-flood measures. However they generally prevent any clearing of the lands
• Ducks Unlimited conservations easements don't change title of the land but does restrict development. Probably one of the "softest" programs on the landowner especially in the prairies.
• Lands donated in trust - a really big political football but landowners will sometimes offer lands in trust for NGO groups to build up a protected area. Pay attention to the fine print as I know people that donated land for park expansion....only to have it sold by the gov't to fund other land purchases. Was a breach of contract and sale was revoked and lands returned to original owners.
• Identification of a Species at Risk under Federal SARA on private land may trigger federal laws/conservation issues. Species at Risk Act: information note for landowners - Canada.ca Be very careful what you list as being protected....
• Ontario Conservation Land Tax Incentive Program. Land size and significance of lands are the big drivers...but it's also an annual application processes to maintain.

Regardless of your personal and/or family decisions on this aspect there are both legal and financial aspects to consider both for today and future decisions. For many it doesn't matter...but for others it may. Be prepared for a degree of ongoing certification and/or auditing if you decide to go down this line of thinking as each program differs.

Hope this helps,
foresterab

 

[Genetk44]

I was looking at land in the area between Parry Sound and North Bay and even a bit north of Lake Nipissing just before covid hit. My preferred requirements were…unorganized territory, mainly wooded with some water feature such as wetland,pond or stream with some sort of nearby secondary road access. Unfortunately age and health issues finally caught up with me.

 

[IKnowNothing]

I'm very hesitant on conservation easements....while many are okay...some are permanent injunctions on the property that may affect things down the road. Or inadvertently trigger additional rules that normally wouldn't be involved...

This is the exact double sword we're considering- negotiating an easement that allows continued agricultural and recreational use (creating a list of allowable future structures, total square footage etc to those uses) while while restricting the land against future development or extractives use.

Ties our hands a bit, but also impairs the value significantly which helps for intergenerational transfers.