Farm status in BC: the income thresholds, the October 31 deadline and what counts
To get farm classification from BC Assessment, your land must produce at least a minimum amount of farm products, valued at farm gate prices: $10,000 a year if the land is under 0.8 hectares (about 2 acres), $2,500 if it is between 0.8 and 4 hectares (about 2 to 10 acres), and $2,500 plus 5% of the actual value of the land over 4 hectares for larger parcels. New applications must reach BC Assessment by October 31 for the following tax year, and late applications are not accepted.
Updated October 28, 2026. Thresholds from BC Assessment and the Classification of Land as a Farm Regulation (B.C. Reg. 411/95), linked below.
The minimum farm income by parcel size
- Under 0.8 ha (under about 2 acres): $10,000 of qualifying farm product sales.
- 0.8 ha to 4 ha (about 2 to 10 acres): $2,500.
- Over 4 ha: $2,500 plus 5% of the actual value for farm purposes of the land above 4 ha.
- Timing: the sales must fall in the 12 months ending October 31, or the 12 months before that, and the farm must keep meeting the test every year.
Worked examples (estimates for illustration)
- Lake Country hobby orchard, 2 ha (about 5 acres): needs $2,500 of fruit sales at farm gate prices in the qualifying 12 months. A few bins sold to a packer with written receipts can do it.
- Kelowna acreage, 0.6 ha: needs $10,000, four times as much, because the parcel is under 0.8 ha.
- 10 ha hay operation near Armstrong: if the 6 ha above 4 ha has an actual value for farm purposes of $30,000 (an example figure), the threshold is $2,500 plus 5% of $30,000, so $4,000.
What counts as farm income
- Sales of qualifying agricultural products, backed by written evidence of the price (or local comparable prices).
- Sales of livestock you raised, and resale of purchased and transplanted horticultural crops (the price difference counts).
- Breeding products, horse stud fees, and indemnity payments for lost or damaged products.
- Keep receipts and sales logs for at least three years. BC Assessment can ask for them.
Land not producing yet
Land that is not yet in production can be classified as a developing farm if you file a development plan and site diagram with the application: crop, area, planting date, expected yield, price and harvest date. The plan has to show planting by the spring after you apply.
Farm status is a property tax question, not an income tax one
Farm class lowers the assessed value used for property tax. Your dwelling stays residential (Class 1). Whether the CRA treats your farming as a business, a hobby, or a restricted farm loss is a separate test under the Income Tax Act, with its own rules for deducting losses.
FAQ
When is the deadline to apply for farm status in BC?
October 31, for classification in the following tax year. Late applications are not accepted.
Can I lease my land to a farmer to get farm status?
Yes, the farm use can be by a lessee, and BC Assessment has a lease form for it. The income test still has to be met by the operation on your land.
Do eggs, honey or hay count?
Many primary agricultural products qualify. Processed goods made from them are treated differently, so check the product against BC Assessment's list before you count it.
Is the threshold based on profit?
No. It is the gross farm gate value of qualifying sales, before expenses.
Every property is different, so talk to your accountant about the income tax side of a hobby farm.
Sources: BC Assessment: classifying farm land; BC Laws: Classification of Land as a Farm Regulation, B.C. Reg. 411/95, sections 5 and 8.
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