Grain Growers of Canada is calling on the federal government to scrap its change in capital gains tax so farms can be passed on to the next generation.
It thanked the government for proposed enhancements to the Canadian Entrepreneurs’ Incentive that will benefit some grain farmers.
“But they won’t “sufficiently address the substantial impact of raising the capital gains inclusion rate from one-half to two-thirds on primary food producers,“ it said.
Additionally, the added complexity introduced by the CEI, alongside the increased inclusion rate, will drive up accounting and legal expenses for farmers, putting further pressure on their finances.
Patchwork approaches and fragmented incentives won’t deliver the economic growth and support that Canada’s grain farmers and rural communities need, it said.
Comprehensive, forward-thinking policies that support farming operations by encouraging innovation are what Canadian grain farmers need.
Most importantly, the government must move away from discouraging the ambitions of our current and future grain farmers and instead partner with them to address the productivity and profitability challenges that impact the agricultural sector, it said.
Grain Growers of Canada continues to call on the federal government to revert to the original one-half inclusion rate for intergenerational transfers.
The company is the brainchild of Randall Schwartzentruber of Haysvllle, a hamlet south of New Hamburg. He was a youth pastor at the time he started the company.
