Ontario Agriculture

The network for agriculture in Ontario, Canada

Canadian Federation of Agriculture: Highlights on Federal Budget & How It Might Impact Farmers.

The Canadian Federation of Agriculture (CFA) was pleased to see investments in agricultural trade promotion, a continued commitment to improve labour access and market information, and a reduction in cost of Employment Insurance (EI) premiums for business owners  reflected in the Federal Budget tabled today.

 

"One of the most significant items for agriculture in this budget is the increase to the Lifetime Capital Gains, which CFA has been advocating for some time. Last year's budget saw a small increase in this area, but the funds allocated this year will have a more meaningful impact," said CFA President Ron Bonnett.

 

The Lifetime Capital Gains exemption is an important tool for helping farmers manage the tax burden associated with the transfer of farm assets. The CFA is pleased the increase to $1 million is effective immediately, as it will assist farmers in their transfer of assets to the next generation by providing greater flexibility for both the retirees and new entrants.

 

While modest investments were made into various priority areas for Canadian agriculture  - succession on farms, market development and building processing capacity - the CFA was disappointed to see that certain barriers to intergenerational transfers were not addressed and commitment for investment in crop varietal development research and climate change adaptation was not made. 


 

Key agricultural considerations concerning the 2015 Federal Budget include:

 

Taxation

 

The two most significant announcements on this front are the increase of the Lifetime Capital Gains Exemption immediately to $1 million, from $800,000, which is estimated to save producer $50 billion over the next 5 years in capital gains taxes. In addition, the small business tax rate was decreased from 11 per cent to 9 per cent. This is a significant decline in tax rates for small businesses, which should lend support to farm businesses as well.  There are also additional investments made into small business financing.

 

In regards to the consultation on eligible capital property, which was announced in last year's budget and would result in additional tax burdens being imposed upon the sale of farm quota, the federal government has committed to continue this process and engage with relevant stakeholders. CFA and the national supply managed commodity organizations have raised concerns around the implications of this measure, as it relates to farm quota sales for farmers entering retirement. We look forward to continued engagement with Finance Canada on this front.

 

 Labour

 

Minor investments were announced to funding the centralization of labour market information and investigation into barriers facing farmers in obtaining labour, addressing key challenges facing farmers. 

The Government has also continued its commitment to reduce EI premium rates through a seven-year break-even EI premium rate setting mechanism, which would ensure any surplus resulting from employer and employee payments will be returned through lower rates in the future.  The Government has also extended the working while on claim program, reducing disincentives while working on EI. This ensures that seasonal workers claiming EI can benefit from part time jobs in the off season without being penalized through reduced total compensation.

 

Trade

 

The expanded role in establishing international science-based standards outlined in the Budget is welcomed. Canadian agricultural trade faces numerous non-tariff barriers and standards across the globe that are not based on science. Examples of this include the recently completed CETA agreement with the EU and the topic of GMOs. Non-science based standards are  likely going to become a bigger issue with trade amongst developed countries as the agriculture sector deals with social license issues in these countries.

 

CFA's recently established Internal Trade Committee is opportune given the Government's announcement to establish an Internal Trade Promotion office. The CFA's Committee will be an avenue to provide farmers viewpoints on this issue moving forward.

 

Research

 

Starting in 2016-2017, $10 million per year will be directed to NSERC for collaborative projects between companies and academic researchers targeting natural resources, energy, advanced manufacturing, environment and agriculture.  While any investment in collaborative agricultural research is welcomed, it remains unknown to what extent this money will be allocated to agricultural projects.

 

CFA's pre-budget submission touched on the following research priorities: increased funding and priority given to research in climate change adaption and risk management, and ecological goods and services. As these areas were not specifically outlined in the Budget, the CFA encourages the Government to consider the importance of these items and allocate the appropriate resources.

 

Food Processing

 

The Government showed a commitment towards bolstering Canada's manufacturing industry. As the Canadian food processing industry is the largest manufacturing industry in Canada, producing  $92.9 billion in shipments and purchases nearly 40% of farm production, changes in this area are certainly pertinent to farmers.  Accelerated capital cost allowance, first introduced in 2007 to encourage investment in machinery and equipment used in manufacturing and processing, would have expire at the end of 2015. The Government has extended this accelerated rate to any eligble assets acquired after 2015 and before 2026. This incentive will encourage Canadian food manufacturers to continue making long-term investments in machinery and equipment and help bolster productivity.

Views: 242

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Keith Kreps Appointed President of 21st Century Equipment

Scottsbluff, Neb. — 21st Century Equipment is proud to announce the appointment of Keith Kreps as President, effective July 1, 2025. Kreps steps into the role following five years as chief operating officer and brings more than two decades of executive leadership experience in the agriculture equipment industry.

Crop Outlook Improves Across Alberta, But Peace Region Remains Parched

Timely rains in June have brought some much-needed relief to Alberta’s crop producers, particularly in the Central, parts of the Southern, and North West regions. While conditions have improved significantly in recent weeks, it’s a mixed bag across the province — and farmers in the Peace Region are still waiting for a true turnaround. As of June 30, provincial crop conditions are sitting at 61% good to excellent. That’s a full 11-point jump from mid-June, though still trailing the 5- and 10-year averages by 8 and 6 points, respectively. Spring cereals are ahead of schedule, with most regions reporting progress that surpasses typical benchmarks. In the South, cereals are already heading out, while Central and North West areas are mostly at the boot stage. Broadleaf crops like canola, dry peas, lentils, and mustard are flowering earlier than normal across the board — a positive sign, but one that hinges on moisture availability through the critical reproductive stages. Surface moisture

Five Manitoba students awarded with scholarships from MCGA

Manitoba Canola Growers Association (MCGA) is proud to announce the recipients of the 2025 high school scholarship program, awarding five $1,000 scholarships to graduating students in Manitoba.  This year’s recipients are heading into a variety of academic paths, from nursing to engineering, but all share a strong connection to rural life and caring for the land. Whether headed to large universities or faith-based institutions, each student expressed a passion for contributing to their communities and pride in their agricultural roots.  The 2025 MCGA scholarship recipients are: Addison Bruce, Miami, MB: Bachelor of Science  Sarah Krahn, Rivers, MB: Pre-Nursing, Bachelor of Science  Addison Schmidt, Elm Creek, MB: Briercrest College and Seminary Makenna Sumner, Neepawa, MB: Bachelor of Science Trent Tomoniko, Franklin, MB: Bachelor of Science in Engineering “The talent and dedication we saw in this year’s applications were truly inspiring,” says Warren Ellis, Chair of MCGA. “These st

Crop Report for the Period July 1 to July 7, 2025

Growing conditions throughout Saskatchewan continue to vary. Rainfall and warm temperatures in some areas are allowing crops to progress nicely, while other areas continue to experience dry conditions which is stressing crops and leading to rapid development. There was less rainfall last week than the week prior, with the Hanley area receiving the most in the province with 44 millmetres (mm). The Serath area received the second highest rainfall with 33 mm, followed closely by the Lampman and Semans areas with 32 mm and 28 mm, respectively. Other areas received much needed rainfall, but producers are hoping for more in the coming weeks. Limited rainfall in many areas has caused soil moisture levels to drop since last week. Currently, provincial cropland topsoil moisture is 55 per cent adequate, 33 per cent short and 12 per cent very short. For hayland, topsoil moisture is 43 per cent adequate, 38 per cent short and 19 per cent very short. Finally, moisture levels in pasture topsoil is

Advancing monitoring and decision-making tools for wireworm in Alberta

Why is this research important for Alberta ag? Wireworm is a serious pest for many growers, particularly in the Prairies, where there are 3-4 dominant species. The damaging larvae live for several years in the soil, feed on multiple crops, and have patchy distributions. For these reasons, wireworm is difficult to monitor, and no economic thresholds are currently available. As new chemical seed treatments enter the marketplace, there is an obvious need for a decision-making framework for wireworm management to help producers with questions like if and when to invest in chemical seed treatments. Since wireworm is the primary reason that cereal seeds are treated with insecticides on the Prairies, the information gathered from this research can potentially reduce unnecessary pesticide use. This research will explore the possibility of using overhead imagery to detect wireworm damage patches, how damaged patches differ from undamaged areas, and methods and intensity of sampling needed to

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service