Agri-Food and Value Added Businesses
The value added agri-food and fibre sector is expanding rapidly in Western Canada. Companies are undertaking significant changes in production and marketing practices in order to meet worldwide demands for products.
Primary producers and value-added processors face a variety of regulatory impediments to expansion such as obtaining necessary permits and authorizations from municipal and provincial authorities, meeting federal standards governing manufacturing and complying with domestic export and foreign import requirements. We can assist in guiding clients through the regulatory maze and lobbying government for change to regulations that impede growth.
We are also knowledgeable in other areas such as protection of proprietary technology, venture capital and equity financing.
Common Farm Contracts
Contracts are essential to farm businesses. They facilitate completion of business arrangements and protect against unforeseen liabilities or changes of heart by the other party. There are many contracts that you may employ in your day to day operation, including feeder agreements, purchase and sale agreements, lease agreements and supply arrangements. Each contract has important legal and tax implications. We can help ensure that the agreements you are considering are tailored to protect your rights and meet your needs.
Farm Financing and Dealing with Farm Debt
The legal implications of the financial documents you sign are often complicated and far-reaching. As a result, it is essential that you thoroughly understand your credit arrangements.
Problems with farm loans can arise due to unforeseen circumstances such as changes in market conditions, weather and interest rates. If faced with debt problems, we urge you to first make a careful assessment of your financial position, as it will have a major effect on your legal position. We also encourage you to deal with creditors as soon as financial difficulties become apparent. Creditors are usually much more receptive to proposals when you and your counsel initiate the contact.
We have considerable experience with farm debt problems including farm foreclosures, bankruptcies, seizure of farm equipment, livestock and grain, work-out agreements and quit claim arrangements.
Land Use and Subdivision
Land use by-laws and the planning legislation can restrict your expansion plans. If you intend to expand or change the nature of your operation, you should be aware of the requirements of land use by-laws and the planning provisions in the Municipal Government Act.
The growth of towns and cities in Alberta has resulted in increasing conflict between new residential property owners and the agricultural community. Our experience includes representing clients before municipal and county councils, development boards, municipal planning commissions and planning boards. We can advise you of the most effective way to sub-divide your property, obtain the necessary development approvals or change any adverse land use restrictions.
Leasing Agreements
Agricultural operations frequently involve the leasing of land, equipment and livestock. Although it is common to rely upon verbal leases, we recommend that lease agreements be in writing. This can avoid future disputes or problems that may arise on the death or incapacity of the other party. A properly planned and executed lease may also reduce income tax and GST.
Marriage, Divorce and the Family Farm
In Alberta two of every five marriages result in divorce and it is inevitable that many involve farm operations. Matrimonial property lawsuits and support claims can have a significant impact on a farm business. Therefore, when dealing with the breakdown of the family, it is important to obtain advice as to your legal rights and obligations, as well as the tax consequences that arise out of separation.
A matrimonial property division can affect the continuance of a farm operation. It is therefore important that your advisors understand the farming business, to ensure that your farm remains a viable enterprise. One way of preventing the family farm from being split up in the event of a divorce is to enter into a prenuptial agreement. This will protect the property which either party brings into the marriage.
Mediation and Arbitration
Oil, Gas and Mineral Rights
In Alberta and Saskatchewan, 80% of the mineral rights are held by the Provincial Crown, 1% by individuals and the remaining 19% by the Federal Crown (Parks), Indian Reserves and CPR Hudson's Bay successors. If you are an owner of a mineral title, you should be aware that standard lease forms promoted by land agents may not be appropriate for your situation. We have represented both land owners and oil companies and our familiarity with the operation's side of the oil and gas industry allows us to better advise mineral owners. Furthermore, there is a natural link between surface, environmental issues and mineral rights, all areas in which we have experience.
Patents, Inventions and Plant Breeder's Rights
Purchase and Sale of Farmland and Agribusiness
Purchases and sales of agribusinesses and farmland are not simple transactions. There are environmental, tax and GST considerations that are frequently not addressed on standard forms. Furthermore, land is often purchased without a complete understanding of the encumbrances on title. These encumbrances may affect the value of the land and your ability to use the property. It is important that you obtain legal advice before signing any land purchase documents.
Suing and Being Sued
Court actions involving farm issues require legal counsel with a thorough understanding of agricultural matters coupled with experience in court. Our litigators in the Agribusiness Group ensure that issues faced by farm families are efficiently handled. We have represented clients in court on a variety of agricultural issues from the supply of feed and seed varieties, personal injury, chemical damage to crops, loss of property, contract disputes and farm nuisance actions. We also represent clients in the agriculture industry who have become involved in disputes related to estate and farm succession planning matters.
Surface Rights and Expropriation
Tax Matters
Although our income tax system is extremely complex, it also creates opportunities to reduce taxes. There are various ways of structuring agribusiness in a tax efficient manner. Tax advisors must understand the business of agriculture. We can work with you and your accountant to develop the best tax planning strategy for your operation.
We have represented clients before the courts on tax matters and made representations on their behalf to Revenue Canada. We can also advise you of the GST consequences of a proposed transaction and suggest how transactions can be structured in order to minimize any adverse GST consequences.
Water Rights and Environmental Concerns
Natural resources are the backbone of agriculture. Environmental issues and water rights have become significant considerations that must be taken into account in everyday farming operations. You should understand your legal responsibilities and potential liabilities. We can assist you with environmental questions that arise within your farm operation or agribusiness.
Wills, Estates and Farm Succession
An effective estate plan is essential to the smooth transition of a business between generations. Tax planning is a very important part of a succession plan, but more important is an understanding of your family farm business and your personal objectives.
We will work with you to develop a succession plan that achieves your personal and family goals in a tax effective manner. In doing so, we will find the best possible plan to meet your objectives. There are many succession tools that we can tailor to fit your goals, including wills, trusts, enduring powers of attorney, family trusts, corporations and partnerships.
