A farm is a viable retirement possibility but likely not one promoted by your financial planner. It may involve more risk than some are willing to take but there are valid reasons why someone would want to retire to a farm.
Individuals seeking a farm retirement may include those who had grown up on farms but spent their working careers in an urban environment, those with entrepreneurial interests, those who want home-grown produce, or those who just love the quiet and seclusion of a rural farm setting.
My wife and I are now completing our eighth growing season on our retirement farm. This is what we have learned.
A retirement farm can ease the adjustment from career to retirement:
The adjustment to retirement can be difficult but the key to a good adjustment is to have something to retire to — rather than to retire from. Be motivated by the future rather than the past. This is particularly true if the move to retirement has been pressured by others rather than a step of ones own timing and initiative.
Many of the contributing factors to a healthy adjustment are available on a farm. There is the anticipation of each growing season, interaction with others, opportunities to seek out and implement new ideas or techniques. Farmers are engaged!
A retirement farm provides healthy food:
There is an increasing interest in knowing what has gone into the production of food. The retirement farm provides the opportunity to grow a delightful array of healthy, local, and sustainable produce in your own backyard.
A retirement farm provides supplemental income:
The activities of the farm provide income as well as reducing some of the cost of living. Last year our garden provided for our own extended family needs and an additional $5,000 in income.
A retirement farm that produces fruits and vegetables does not need a large land mass. Land is expensive and is a major investment for the average person. Besides, the timeline is too short to invest in major expensive equipment or to take on too many projects where each requires its own equipment.
A retirement farm provides tax advantages:
One of the real advantages of farming is that there are taxable deductions or capital costs that can be used in calculating taxable income. There is also a capital gains exemption upon winding up a farm. A farm in Ontario must have at least $7000 in gross farm income. As a child I heard someone say, “Farmers live poorly but die rich, those who work for others live richly and die poor.” If there is truth to this adage it is likely because of the tax implications and asset accumulation that happens over time while actively farming.
A retirement farm is a built in exercise program:
No gym membership required! Niche farming can provide unlimited exercise options.
A retirement farm can be a place of refuge:
With growing concerns on the part of many about issues of animal welfare the retirement farm can be a place of refuge. People with an interest in animal husbandry can get real satisfaction in knowing that they are providing a home for aging animals, unwanted pets, wounded wildlife, or even animal sitting services.
A retirement farm provides the opportunity to bless:
An active garden provides the opportunity to bless someone else’s kitchen with healthy, tasty, locally-produced food.
In conclusion:
Has your financial consultant ever suggested that you buy a retirement farm? Likely not! Farm profit margins are small and very competitive. However, the combination of having retirement income from other sources, and the opportunity to reduce the cost of living through farming can provide an attractive alternative which many have not considered.
Dan and Connie Driedger are joint owners of a 73 acre farm near Kemptville, Ont. They have been actively farming since 2008, producing asparagus, blueberries, vegetables, hay and meat birds.
- Dan Driedger