Communications

OTTAWA, September 17, 2026 – Grain Growers of Canada (GGC) welcomes the federal government’s proposed Productivity Mega Deduction as a meaningful step toward helping grain farmers invest in the machinery, equipment and technology needed to remain productive and globally competitive.

The proposed measure would allow farm businesses to immediately deduct the full cost of most eligible capital investments in the year the property becomes available for use. It would apply permanently to eligible property acquired on or after September 15, 2026.

Grain farming is one of Canada’s most capital-intensive industries. Producers regularly make significant investments in combines, tractors, seeding equipment, grain-handling systems and precision agriculture technology. Allowing these costs to be deducted immediately would provide earlier tax relief, improve cash flow and strengthen the business case for upgrading farm equipment.

According to the Department of Finance, the measure is expected to reduce the marginal effective tax rate on new investment in agriculture and fishing from 7.6 per cent to negative 6.0 per cent, positioning the sector among the largest beneficiaries of the proposed change.

Making immediate expensing permanent would also give farmers greater certainty when planning major purchases. Producers can invest according to the needs and financial circumstances of their operations, rather than the expiry date of a temporary tax provision.

GGC encourages Parliament to move quickly to enact the proposed changes and ensure the eligibility rules are clear, practical and accessible to farms of every size and business structure. Implementation should be simple, with federal and provincial tax treatment aligned wherever possible.

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About Grain Growers of Canada

As the national voice for Canada’s grain farmers, Grain Growers of Canada (GGC) represents more than 100,000 producers through 15 national, provincial and regional grower organizations. Our members steward 120 million acres of land to grow food for Canadians and customers in more than 160 countries, 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:

Cole Christensen
Interim Communications Manager
Grain Growers of Canada
cole@graingrowers.ca
403-589-3529