Many Agri-Businesses In Ontario Lack Succession Plan

A recent survey by the Canadian Federation of Independent Business (CFIB) finds that 33% of Ontario agri-business owners plan to retire, sell or close their operations within 5 years, while another 25% plan to do so in the next 6-10 years. Yet, nearly half (48%) have no succession plan in place.

“Planning for the future transfer of the business is of utmost importance to the success of Ontario farms,” said CFIB’s Ontario director, Plamen Petkov. While succession planning is not easy for any business owner, CFIB’s farm members have challenges in identifying a suitable successor and many find the process too complex or too time consuming. “It is also clear that Ontario farmers are feeling the impact of other factors, such as rising fuel and energy costs, higher payroll taxes and red tape, which additionally slow down their plans to pass the baton to the next generation.”