Grain Farmers of Canada was among farm organizations opposed to the tax.
It failed to pass House of Commons final approval before Prime Minister Justin Trudeau prorogued Parliament.
The government had planned to increase the taxable portion of capital gains from 50 to 66 per cent.
Kyle Larkin, executive director of Grain Farmers of Canada, said “the tax hike has already forced many family farms to sell early and will increase cost for most family-run grain farms who produce the majority of food that Canadians and the world rely on once implemented next year.”
