Farm Groups Call for Reversal of Capital Gains Inclusion Rate
(OTTAWA, ON – January 17, 2025) The over 130,000 Canadian farmers and ranchers represented by the Canadian Canola Growers Association, Canadian Cattle Association and Grain Growers of Canada are calling on the Government of Canada to reverse its decision to administer the proposed capital gains inclusion rate legislation.
Despite the fact that the Deputy Prime Minister and Minister of Finance tabled a Notice of Ways and Means Motion (NWMM) to introduce a bill entitled An Act to amend the Income Tax Act and the Income Tax Regulations, these changes are subject to parliamentary approval and should not be implemented without the express approval of Parliament.
The average age of Canadian farmers is now over 55 years old and tens of billions of dollars in farm assets are set to change hands over the next decade. Canadian farms continue to expand, often supporting multiple households, with more and more farms incorporating for tax and estate planning purposes. Meanwhile the cost of land and farm assets continues to rise and those looking to purchase a farm face unprecedented capital costs.
We continue to express opposition to the accelerated pace of implementation, the lack of consultation in the lead-up to these proposals, and the changes that undermine the policy intent of Bill C-208, particularly in terms of the continued uncertainty regarding future treatment of capital gains that adds costs, complexity, and delays for farmers trying to navigate the intergenerational transfer of farm assets. While the proposed amendments to the Lifetime Capital Gains Exemption include an increase to the limit on eligible capital gains for producers, this alone does not address the broader challenges posed by these policy changes.
For these reasons, we call on the government to not implement the NWMM and revert to the previous capital gains and inclusion rate. We call on all political parties to support the reversal of the capital gains inclusion rate increase for farmers.
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About Canadian Canola Growers Association (CCGA)
Canadian Canola Growers Association represents canola farmers on national and international issues, policies, and programs that impact farm profitability and has been an administrator of the Government of Canada’s Advance Payments Program since 1984. For more information follow CCGA on X @ccga_ca and LinkedIn.
About Canadian Cattle Association (CCA):
The Canadian Cattle Association (CCA) is the national voice of Canada’s 60,000 beef farms and feedlots. Founded by producers and led by a producer-elected board of directors, CCA works to address issues that concern Canada’s beef producers.
About Grain Growers of Canada (GGC):
As the national voice for Canada’s grain farmers, Grain Growers of Canada (GGC) represents over 70,000 producers through our 14 national, provincial and regional grower groups. Our members steward 110 million acres of land to grow food for Canadians and for 160 countries around the world, creating $45 billion in export value annually. As the farmer-driven association for the grains sector, GGC champions federal policies that support the competitiveness and profitability of grain growers across Canada.
For media inquiries, please contact:
The Canadian Canola Growers Association
Kelly Green, Vice-President of Communications
communications@ccga.ca | 204.789.8821
The Canadian Cattle Association
Tina Zakowsky, Communications Manager
zakowskyt@cattle.ca | 403-451-0931
Grain Growers of Canada
media@graingrowers.ca | 514-834-8841
