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

Empowering the Next Generation -- Scholarship Opportunity for Agriculture Students

Are you a woman studying agriculture? Don’t miss your chance to attend the Advancing Women in Agriculture Conference East 2025 in Niagara Falls—free of charge! Deadline September 30.

Saskatchewan Harvest Reaches 53% Complete; Rain Brings Both Delays and Relief

The Saskatchewan harvest has advanced past the midway mark, although it continues to lag the average pace.  Thursday’s provincial crop report pegged the overall Saskatchewan harvest at 53% complete as of Monday, up 12 points from the previous week but still behind the five-year average of 73% and the 10-year average of 62%. Last year at this time, nearly three-quarters of the crop had been combined.   Recent rainfall slowed progress, but the moisture was welcomed by producers in drier areas for its long-term benefit to soil conditions, the report said.  By region, the southwest continues to lead with 66% of crops harvested. The southeast sits at 58%, while the west-central and northwest regions are both at 47%. The east-central region is at 46% and the northeast trails with 42% complete.  Harvest progress varies by crop. Winter wheat and fall rye harvests are now wrapped up, while peas (96%) and lentils (91%) are nearly complete. Among spring cereals, barley leads at 72% harvested,

Alberta Major Crop Harvest Nears 60% Done

Warm and dry weather sped the Alberta harvest well past the halfway mark this past week. Friday’s provincial crop report showed 59% of major crops (spring wheat, oats, barley, peas and canola) were in the bin as of Tuesday. That’s up 20 points on the week and comfortably ahead of the five- and 10-year averages of 52% and 41%, respectively. The weather has accelerated progress in most regions, though at the expense of already depleted soil moisture reserves, the report said. Regionally, the South leads with 67% of crops combined, followed closely by the Peace Region at 61%. The North West and North East are at 59% and 56% complete, while the Central Region trails at 53%. By crop, dry peas are nearly finished at 98% complete, spring wheat and barley are each 75% harvested, oats are at 63%, and canola—traditionally one of the later crops—is 28% complete. Another 33% of canola fields have been swathed, setting up for rapid combining once conditions allow. Although harvest progre

Why Students are Learning to Think Like CEOs and Farmers at the Same Time

Lakeland College’s Tracy Quinton explains why systems thinking sometimes matters more than specialization. When it comes to agricultural education in Alberta, few people have seen the changes up close like Tracy Quinton, dean of agricultural sciences at Lakeland College’s Vermilion campus. Quinton grew up on a mixed farming operation in southern Alberta, spent time as a commodity merchant in the grain trade, and has been with Lakeland for more than 20 years — first as an instructor, then chair, and now dean. His background in ag business and economics gives him a unique perspective on how today’s students can build skills that meet the rapidly shifting demands of modern agriculture. We wanted to do this Q&A because many of our readers are farmers whose kids are thinking about college — or perhaps those kids are already flipping through the Alberta Seed Guide themselves. Agriculture has changed dramatically in the past two decades, and so has agricultural education. What skills truly

Electric weed control enters the field: A new non-chemical tool For Canadian farmers

Researchers with Agriculture and Agri-Food Canada are testing a high-voltage “Weed Zapper” to assess its effectiveness, safety, and potential as a chemical-free weed control option.

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service