Hutterite Colony

[Rareearth]

I’m not bashing or complaining, there was another article in The Western Producer. It was very similar to another Western Producer article. Almost like it was submitted by the MNP accountant that does all the work for them.

Other questions:

- If they pay more tax than a normal traditional family, how is it that they can split every 25 years with $50,000,000 Million dollars to start a new farm?

- do they pay Capital gains? Our Family farm does every generation.

- do they accurately record and report cash sales, are they audited, on the contributions that fund the new colony?

- the articles state only a few examples it would be nice to see direct comparisons on whole farm taxation.

- the accountant has lobbied in Ottawa 15 times for taxation changes, what taxation changes Specifically are being requested?

- how do these special trusts work?

[macdon02]

Are they using the same religious exemption that the trucking company that hit the Broncos use? I'm ok with religion but separate it from business and taxes. A building is one thing, assets that generate revenue for church is another. Finance minister says "the rich must pay"

[ajl]

The colony likely is like a corporate entity and so long as it continues capital gains are never realized and so they seldom pay capital gains tax. All members are likely shareholders so any profits and profits on colonies are likely not that large as they are generally high cost producers these days. Profits can then be allocated to the members and they can use personal tax credits to offset the taxes. Then the profits go to something similar to a shareholders loan so that they can be reinvested in the business. Bottom line is that they pay far less in taxes than government provides in services. This information is highly secretive so I don't have much evidence to go on but it would be good to know. It was good for the US to have the conscription crisis and thus force the Hutts to move to Canada and become our problem.

[Rareearth]

Seems secretive.

If they split, a new colony name ( different Corperate - trust) should that trigger a capital gain?

All the articles I just read and searched, the position is it’s all fair. BUT why the special status then? Why not the same corporate structur3 as other farms?

[tubs]

Colonies around here run multiple enterprises and move money around in them for instance they have a cropping enterprise a dairy enterprise a beef enterprise a machinery enterprise and on and on don't know the exact reason they do that but they could qualify every year for agrastability.

[AlbertaFarmer5]

Could it simply be that the personal exemptions and capital gains exemptions per member of the colony are enough to offset any tax implications. When compared to a single family farm, I am almost certain that the profit per shareholder is much lower on a colony just due to the large number of members.

[quadtrac]

I’d be willing to bet that majority of hudderite colonies contribute far more to the economy than average per capita.
I think it’s great they can get along well enough to work together and stay as one unit. Imagine if all families were like that?? Wow what a better world we’d live in.

[poorboy]

Article states that hutterites get taxed individually, but only 18 year olds and up and they don’t get personal exemptions.

Forgets to mention the large amounts of unclaimed cash from veggies, pies, farmers market stands, chicken sales, etc.

They are fighting to get younger members paying taxes as they get enslaved in the labor force at 15 and they want everyone to get personal tax exemptions. Problem with this is you have these colonies worth 70 million dollars who have 70 people in them all collecting social assistance and getting a free ride on other tax payers with net worths MUCH less than the average Hutterite. If Trump gets the dairy and feather boards removed it is going to really hurt Hutterite colonies in western Canada.

[AlbertaFarmer5]

I’d be willing to bet that majority of hudderite colonies contribute far more to the economy than average per capita.
I think it’s great they can get along well enough to work together and stay as one unit. Imagine if all families were like that?? Wow what a better world we’d live in.

I agree, I can't help but admire their model and lifestyle. They are supporting a lot more families per acre than any other farm. Value added, filling niche markets, creating opportunities for year round work. Making a lot of their equipment and consumer goods themselves, Compared to the rest of us who buy imported.

They can groom a specialist for every department, I have to be jack of all trades, master of none.

[grassfarmer]

I agree, I can't help but admire their model and lifestyle. They are supporting a lot more families per acre than any other farm. Value added, filling niche markets, creating opportunities for year round work. Making a lot of their equipment and consumer goods themselves, Compared to the rest of us who buy imported.

They can groom a specialist for every department, I have to be jack of all trades, master of none.

Very much agree, their model seems to work better than most on the prairies. That human resource issue you highlighted is one of their greatest strengths. Properly run it ensures the best of each upcoming generation get promotion based on ability. The hogbarn workers son gets the same chance as the field boss's. Lots of times the family farm gets handed on to the son regardless of ability.

My experiences with Hutterites in AB were with Dariusleut, these Schmiedeleuts in Manitoba are quite different. Way more non-agricultural businesses being run from the colonies, lots of them driving the highways in Escalades and BMWs. Don't seem as land hungry as the AB colonies. Haven't had many dealings with Hutterites down here but my neighbours in AB were salt of the earth, hard working people - couldn't have asked for better neighbours.

[Braveheart]

Grassfarmer, make no mistake, MB Hutterites are land hungry. You have Tri Leaf Colony closest to you and they own land just to your southeast, even though their base is straight south of Baldur.

[quadtrac]

Grassfarmer, make no mistake, MB Hutterites are land hungry. You have Tri Leaf Colony closest to you and they own land just to your southeast, even though their base is straight south of Baldur.

Who isn’t land hungry??

Lol.

[grassfarmer]

Grassfarmer, make no mistake, MB Hutterites are land hungry. You have Tri Leaf Colony closest to you and they own land just to your southeast, even though their base is straight south of Baldur.

Not as land hungry as the AB colonies. They own land right across the road from me here actually - but have resold some of the land they bought in this area already. That wouldn't have happened in AB.

Who isn’t land hungry?? Lol.

I always laugh when I hear the comment that once Hutterites buy it it will never be sold again - we're guilty of that in Scotland too Lol. Multi-generational successful farming isn't a bad thing in my opinion.

[SASKFARMER3]

HAHA that's my way of getting even with every neighbour whoever pissed me off. Sell to the Hutts and leave the province.

No one will buy again if they move in Sorry Grass that's just what happens. Or youll pay lots more than you use to.

Now some colonies are wealthy and some are not really well off and sometimes have to sell.

Any way have fun.

[ajl]

Colonies used to be diversified but most today are large grain farms with some supply management for cash flow to help service gigantic land debts. Actually a winning strategy in Canuckistan, where farming the government is everything. With livestock the main thing to make the enterprise successful is slave labor which they have. Nobody can leave a colony with their share.