Grain Growers of Canada Archives - Newsline by Cole's Ag

NewsLine by Cole's Ag on January 17, 2025, 2:21pm

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

NewsLine by Cole's Ag on January 15, 2025, 11:03am

Viterra-Bunge Acquisition Approval Fails Canada’s Grain Farmers

Jan. 15, 2025 (Ottawa, ON) – Grain Growers of Canada (GGC) is extremely disappointed with the decision made yesterday by the Minister of Transport to approve the acquisition of Viterra by Bunge without a divestment of G3. While the approval does include divestments of six grain elevators in Western Canada and a $520 million investment commitment from Bunge, these measures are woefully inadequate to address the profound impact on market competition. GGC has consistently raised concerns about the merger and its long-term consequences for farmers.

“Minister Anand’s decision to approve the acquisition, even with conditions, doesn’t go nearly far enough,” said Kyle Larkin, Executive Director of GGC. “The divestment of six grain elevators is a token gesture in the face of a company that maintains a 25% stake in G3, greatly reducing competition across the Prairies and in Quebec. These conditions do little to offset the $770 million annual cost this merger will impose on farmers.”

The Competition Bureau and research conducted by the University of Saskatchewan found that an acquisition without a divestment of G3 would weaken competition in certain geographic regions across the country, notably in Manitoba and Saskatchewan canola crushing markets. The university report calculated a $770 million loss in revenues for grain farmers annually.

“This decision is a direct hit to producers revenue,” continued Larkin. “For example, the average grain farm in Manitoba stands to lose $10,000 in revenue annually. This decision compounds an already difficult landscape, as farmers continue to face rising input costs, falling commodity prices, and increased taxes.”

Additional concerns raised by GGC include the market concentration of grain terminals at ports in Quebec and the implications of the merger on the announced canola crushing facility in Regina.

“This is a missed opportunity to protect competition in Canada’s grain sector and prioritize the interests of producers who grow the food that Canada and the world rely on,” Larkin added. “We are urging the government to revisit these conditions, strengthen measures to foster competition, and take meaningful steps to support Canada’s grain farmers.”

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For more information, please contact:
Grain Growers of Canada
514-834-8841 | media@graingrowers.ca

NewsLine by Cole's Ag on December 10, 2024, 8:00am

Grain Growers of Canada Announces New Executive

Dec. 10, 2024 (Ottawa, ON) – Grain Growers of Canada (GGC) is pleased to announce its newly elected executive, bringing a wealth of experience and fresh perspectives to the organization’s leadership.

Tara Sawyer, a grain farmer from Acme, Alberta and Chair of Alberta Grains, has been elected as Chair of GGC. As the first woman to hold this role, Sawyer’s leadership marks an important milestone in GGC’s history. Her dedication to advocating for farmers and her deep understanding of association governance will help guide the organization as it continues to address the challenges and opportunities facing producers.

Joining her are Scott Hepworth, a grain grower from Assiniboia, Saskatchewan and a Director of the Saskatchewan Wheat Development Commission, as First Vice Chair. Sally Parsonage, a grain producer from Baldur, Manitoba and the Secretary of Manitoba Crop Alliance, joins the executive as Second Vice Chair.

“We are excited to work under the guidance of this new executive, whose leadership and vision will help advance the priorities of Canada’s grain farmers,” said Kyle Larkin, Executive Director of GGC. “With Tara Sawyer, Scott Hepworth, and Sally Parsonage at the helm, GGC is well-positioned to address critical issues in 2025 and beyond, such as advocating for fair tax policies, advancing trade opportunities, and securing reliable transportation networks.”

GGC extends its gratitude to Andre Harpe, William van Tassel and Brendan Phillips, the outgoing executive, for their many years of service and dedication to the organization.

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About Grain Growers of Canada (GGC):
As the national voice for Canada’s grain farmers, Grain Growers of Canada (GGC) represents over 65,000 producers through our 14 national, provincial and regional grower groups. Our members are trade-oriented, sustainable and innovative. As a farmer-driven association for the grains industry, GGC advocates for federal policy that supports the competitiveness and profitability of grain growers across Canada. Learn more at: www.GrainGrowers.ca.

For more information, please contact:

Hana Sabah
Communications Manager
Grain Growers of Canada 514-834-8841 | hana@graingrowers.ca

NewsLine by Cole's Ag on June 11, 2024, 9:56am

Capital Gains Inclusion Rate Changes Will Increase Taxes by 30 per cent on Family Farms

June 11, 2024 (Ottawa, ON) – After weeks of research and consultation with farm tax accountants, Grain Growers of Canada (GGC) revealed that the capital gains inclusion rate changes will increase taxes by 30 per cent on family-run grain farms. The research details the anticipated impacts of the increase, which is set to take effect on June 25.

“Our research shows that an average grain farm in Canada, most of which are family owned and operated, will see a tax increase of 30 per cent due to the two-thirds capital gains inclusion rate.” said Kyle Larkin, Executive Director of GGC. “This hike targets farmers’ retirement plans, complicates intergenerational transfers, and threatens the long-term viability of family farms across the country.”

According to GGC research, an 800-acre farm purchased in 1996 in Ontario would incur nearly $1.2 million in additional taxes if sold today, while a 4,000-acre farm in Saskatchewan would face an increase of just over $900,000.

“With over 40 per cent of farmers nearing retirement over the next decade, this tax increase introduces substantial uncertainty into their retirement planning,” said Andre Harpe, GGC Chair and a grain grower who farms alongside his wife and daughter in Alberta. “Despite Budget 2024’s title of ‘Fairness for Every Generation,’ this change will actually burden the next generation of farmers, who are already grappling with costly transfers.”

In farming communities, there is a common saying that farmers are “cash poor, asset rich.” Farmers regularly invest in their operations, by expanding their acreage, upgrading grain bins, and purchasing the newest and most innovative equipment, such as tractors or combines.

“A 30 per cent increase in taxes on the family farm also dramatically increases the cost of farms, pricing out many families. This puts the family farm at risk, as the only ones that will be able to afford to pay millions of extra dollars will either be corporate farms or development companies,” Larkin said.

Already, Canada is experiencing a decline in family-owned farms, with a 2% decrease between 2016 and 2021, according to the most recent data from Statistics Canada.

“To protect family farms, we are asking the government to exempt intergenerational transfers and allow them to be taxed at the original capital gains inclusion rate,” said Larkin. “This will ensure that farmers’ retirement plans remain secure and that the next generation can afford to take over, enabling family farms to continue being the backbone of Canada’s agriculture sector.”

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For more information, please contact:

Hana Sabah
Communications Manager
Grain Growers of Canada
514-834-8841 | hana@graingrowers.ca

NewsLine by Cole's Ag on May 3, 2024, 1:39pm

Grain Growers of Canada (GGC) Welcomes Canadian Food Inspection Agency’s (CFIA) Finalized Guidance for Gene Edited Plants, Opening Doors to Agricultural Innovation

(OTTAWA, ON – May 3, 2024) – GGC today applauds the release of CFIA’s long awaited final guidance on novel feed, marking the completion of a trio of regulatory updates that enable the introduction of gene-edited crops in Canada. These updates, initiated in 2018, are designed to foster agricultural innovation in plant breeding by addressing today’s farming challenges such as pest and disease management, yield improvements, drought resistance, and the nutritional quality of crops.

“This progress opens doors to innovation in Canadian agriculture, enabling the introduction of gene-edited crops that meet pressing agricultural challenges like drought, pests, and diseases, while enhancing nutritional quality,” said Andre Harpe, Chair of Grain Growers of Canada. “The updated guidance enables us to use the latest innovation in plant technology to produce nutritious and affordable food for Canadians and our international customers.”

The regulatory guidance aligns Canada’s regulations with our trading partners, ensuring Canadian farmers remain competitive globally. It is based on rigorous, science-driven assessments that guarantee the safety and efficacy of gene-edited crops.

“Completing this trio of regulations is a milestone that began five years ago, reflecting our joint commitment with government agencies to promote a regulatory environment that supports innovation while ensuring safety and transparency,” said William van Tassel, 1st Vice Chair of Grain Growers of Canada. “With these updated guidelines, our farmers can access advanced tools to produce crops with better resiliency and higher yields, while meeting the demands of the market today and the future.”

The clarity provided by these regulatory updates is expected to accelerate the development and adoption of new plant varieties, crucial for enhancing the competitiveness of Canadian agriculture.

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About Grain Growers of Canada (GGC):

As the national voice for Canada’s grain farmers, Grain Growers of Canada (GGC) represents over 65,000 producers through our 14 national, provincial and regional grower groups. Our members are trade oriented, sustainable and innovative. As a farmer-driven association for the grains industry, GGC advocates for federal policy that supports the competitiveness and profitability of grain growers across Canada. Learn more at: www.GrainGrowers.ca.

For more information, please contact:

Hana Sabah
Communications Manager
Grain Growers of Canada
514-834-8841 | hana@graingrowers.ca

NewsLine by Cole's Ag on April 9, 2024, 8:04am

Grain Growers of Canada Launch Road to 2050 Policy Recommendations

April 9, 2024 (Ottawa, ON) – Today, Grain Growers of Canada (GGC) launched its Road to 2050 policy recommendations, an initiative aimed at shaping federal government programs for the sustainable intensification of the grain sector. The launch comes against the backdrop of critical challenges, including the need to feed an expanding global population, address climate change, and maintain the economic viability of Canada’s grain farms.

“Facing the urgent need to feed more people, tackle climate change, and keep grain farms profitable, Canadian grain growers are leading with innovative sustainable practices. These efforts not only reduce our carbon footprint but also play a crucial role in achieving Canada’s climate goals,” said Andre Harpe, GGC Chair.

Over the past two decades, the grain sector has achieved considerable strides in environmental sustainability by maintaining stable greenhouse gas (GHG) emissions while increasing production. This resulted in a 50% reduction in GHG emission intensity from 1997 to 2017 in the agriculture sector, surpassing the 36% reduction across the Canadian economy during the same timeframe.

With a $30 billion contribution to Canada’s GDP, the grain sector recognizes the necessity of continuous innovation and investment to sustain production.

“For decades, grain farmers have been at the forefront of sustainability, making Canada a global leader in producing grain with the lowest emissions possible,” said William van Tassel, 1st Vice Chair of GGC. “Yet, boosting our competitiveness and commitment to emission reductions demands a significant increase in research and development investments. These investments are essential for overcoming current obstacles and leveraging future opportunities.”

The Road to 2050 policy recommendations is aimed at getting the government to partner with grain farmers to reduce emissions, together. Recommendations include increasing public and private breeding research, expanding eligibility criteria and funding for current climate programs, and developing a data management strategy.

“Grain farmers stand ready to partner with government to reduce greenhouse gas emissions while also increasing production to meet a growing global food demand,” continued Harpe. “It’s clear that there isn’t a one-size-fits-all approach across Canada, but by working together, we can ensure that the sector continues to be part of the solution.”

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About Grain Growers of Canada (GGC):

For more information, please contact:

Hana Sabah
Communications Manager
Grain Growers of Canada
514-834-8841 | hana@graingrowers.ca

NewsLine by Cole's Ag on March 25, 2024, 3:01pm

Grain Growers of Canada Applauds Government Boost to Farmer Support Through Enhanced Loan Program

March 25, 2024 (Ottawa, ON) – Grain Growers of Canada applauds the Government of Canada’s announcement today to offer a $250,000 interest-free portion of the Advance Payments Program (APP) this year to farmers across Canada. APP advances are important in supporting the cash flow of grain farmers to meet their financial needs until they’re able to sell their grain.

“We commend Minister MacAulay and the government for this announcement that will support thousands of grain farmers across the country,” stated Andre Harpe, Chair of GGC. “With the rising cost of inputs and low grain prices at harvest, a higher interest free portion of the APP is needed.”

GGC recognizes the importance of early announcements like this, which provide both predictability and stability, ensuring that grain farmers and administrators can efficiently plan their financial strategies for the year ahead. GGC looks forward to working with the government to ensure the APP continues to support grain farmers.

Kyle Larkin, Executive Director of Grain Growers of Canada, is available for interview.

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About Grain Growers of Canada (GGC):

For media inquiries, please contact:

Hana Sabah
Communications Manager
Grain Growers of Canada
hana@graingrowers.ca | 514-834-8841