What are the special rules for severing a surplus farm dwelling from a working farm in Ontario?

A surplus farm dwelling severance happens when a farmhouse becomes unnecessary to the farm operation, typically because neighbouring farm parcels have been consolidated under one owner and there's now an extra house left over. Ontario planning policy generally supports severing that house, along with a modest surrounding lot, away from the rest of the farmland, so the house can be sold or used separately while the farmland stays in production. Like any severance, this requires consent under the Planning Act from the relevant municipal or provincial approval authority, rather than happening automatically.

A condition commonly attached to this type of severance is a restriction on the remaining, larger farm parcel preventing a new residential dwelling from being built on it in the future. The idea is to avoid effectively creating a new building lot on farmland every time a farmhouse becomes surplus, which would work against the province's broader policy of protecting farmland from residential fragmentation. Because these conditions run with the land and can significantly limit future development potential on the retained farm parcel, anyone involved in a surplus farm dwelling severance, on either side of the transaction, should review the specific conditions carefully with a lawyer before relying on the arrangement.