Thursday, 09 November 2017 06:34

Additional tax support for Canadian farmers

Written by  Courtesy AAFC
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The Government of Canada is committed to supporting Canada’s farmers by investing in the growth of, and innovation in, Canada’s agri-food sector.

 

Budget 2017 sets the ambitious goal of growing Canada’s agri-food exports to $75 billion annually by 2025.The agri-food sector is an important driver of economic growth, accounting for more than six per cent of Canada’s gross domestic product, and employing one out of every eight Canadians.
Agriculture and Agri-Food Minister, Lawrence MacAulay, announced this week tax relief to help farmers by:
•  Providing tax relief for farmers who receive compensation under the Health of Animals Act as a consequence of the forced destruction of their livestock because of the bovine tuberculosis outbreak in 2016 and 2017 in Alberta and Saskatchewan.
  *   Designating the regions for 2017 in which farmers qualify for a livestock tax deferral to help them replenish their herds after flood or drought conditions cease, allowing livestock producers in these prescribed regions to defer a portion of their 2017 sale proceeds of breeding livestock to 2018.
The Government also announced it will maintain the current tax treatment of cash purchase tickets for deliveries of listed grains.
The Government of Canada provides producers experiencing extraordinary costs due to bovine TB with over $39 million in compensation under the Health of Animals Act, as well as $7.1 million in financial assistance (federal and provincial) under the AgriRecovery Framework.
  The Government of Canada helps young farmers access capital and acquire the skills they need to succeed on the farm with measures such as:
o  The Canadian Agricultural Loans Act Program, which is a loan guarantee program designed to increase the availability of loans to farmers and agricultural co-operatives,
o   the Agricultural Youth Green Jobs Initiative, which has been supported through a $5.2 million investment and which helps fund internships for post-secondary graduates and high school students working in the agriculture industry, and
o   the Young Farmer Loan, the Young Entrepreneur Loan and the Transition Loan available through Farm Credit Canada.
* The Government of Canada also works closely with provincial and territorial governments to support this important sector through a comprehensive suite of Business Risk Management programs to help farmers manage the risks associated with severe market volatility and disaster situations.
 * 2017 Livestock Tax Deferral—Initial List of Designated Regions<http://www.agr.gc.ca/eng/?id=1509719116307>

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