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THE ADVANTAGES OF CONDO OWNERSHIP
View our Grain Storage Agreement here
Tax Savings
- Opportunity to utilize third party leasing opportunities can result in significant short term tax savings.
- Lease payments are 100% tax deductible and up to one year's worth of lease payments can be prepaid.
Marketing Advantages
- Grains and Oilseeds are "market ready" as they are on-track ready to sell. It allows opportunity to take immediate advantage of premium price opportunities.
- "On Track" marketing eliminates the additional costs of cold weather hauling, snow removal and road bans.
- Opportunities exist to maximize returns from grade differentials. The trend today is large on farm grain storage and this often results in premium quality getting mixed in with lower grades. Condos would facilitate separate storage for this grain.
Cost Savings
- Grains and Oilseeds can be delivered off the combine. Eliminates additional handling costs relating to on farm storage cost.
- Risk of Spoilage and grade loss transferred to Great Northern Gain Terminals.
- Aeration costs passed on to Great Northern Grain Terminals.
- Reduced Capital Investment on infrastructure for electricity - reduce necessity for upgrades and/or supplemental electrical sources re: diesel and nature gas generators.
- Reduce the capital costs associated with on farm storage, re: yard graveling, snow removal, grain auger and motor maintenance, grain vacuum maintenance, tubes and pipes and auger fittings.
Assists in Family Succession Planning
- Reduces the capital cost of the home quarter and farm sites as some grain storage is located on track.
- The grain condo's can be sold at a later date to family members after all grain is sold and after equipment is sold. This will reduce recaptured deprecation and taxable income in the year of the sale.
- The condo's can provide off farm storage for farmers who may have retired from farming but want to keep their status as bona-fide farmers. They can deliver 100% of the annual harvest to the elevator and continue in a partial retirement mode: i.e.: travel, spend winters in warm climates and have the responsibilities relating to stored grain.
- For both lease and purchase arrangement, the recapture and lease income is farming income when sold in future years.
- For farmers who don't have family succession issues, reducing the capital investment on the home quarter makes the farm more affordable to sell to outside purchasers. Modern farms do not sell well with significant small flat bottom grain storage. Condo's allow short term land base expansion without significant grain storage additions on the main site .
Contact us today to discuss your Condo Ownership
View our Grain Storage Agreement here
Head Office
Bell Tower, Suite #1920
Edmonton, Alberta, Canada
T5J 0H8
Phone: 1-780-482-1450
Fax: 1-780-452-7638
Nampa Terminal
P.O. Box 450
Nampa, Alberta, Canada
T0H 2R0
Phone: 1-780-322-3737
Fax: 1-780-322-3760
Killam Terminal
Elevator Road
Box 35
Killam, Alberta, Canada
T0B 2L0
Phone: 1-780-385-3622
Fax: 1-780-385-2247
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