Budget 2026 strengthens farm investment but leaves key grain-sector pressures unresolved
OTTAWA, Nov. 9, 2026 – Grain Growers of Canada (GGC) welcomes measures in Budget 2026 that will help grain farmers invest in their operations and plan for farm succession, while urging the federal government to address immediate pressures on farm profitability and the reliable movement of grain to market.
“Budget 2026 gets important pieces right for grain farmers,” said Kate Sauser, interim executive director of Grain Growers of Canada. “Permanent immediate expensing gives producers more certainty to invest, and the broader rollover provisions recognize the different ways family farms transition. The next test is implementation: clear eligibility rules, accessible programs and infrastructure investments that deliver measurable improvements in farm profitability and market access.”
The budget confirms permanent immediate expensing through the Productivity Mega Deduction for a broader range of eligible capital investments acquired on or after Sept. 15, 2026. Eligible farm assets include tractors, combines, seeders, crop sprayers, silos and certain farm buildings. Allowing these investments to be deducted in the year they become available for use can provide earlier tax relief and greater certainty for producers planning major purchases.
Budget 2026 also proposes expanding the tax-deferred rollover of qualifying farm property to nieces, nephews, grandnieces and grandnephews for transfers beginning Jan. 1, 2027. Proposed amendments to the Canadian Agricultural Loans Act are intended to improve access to capital, support intergenerational transfers and reduce administrative requirements.
The budget continues the government’s emphasis on trade diversification and infrastructure, including previously announced trade corridor funding and projects connected to the Port of Vancouver and Port of Churchill. It also proposes funding for digital trade processes and supply-chain data and analysis. GGC supports these directions, but says success must be measured by whether grain-serving projects move forward and producers gain more reliable access to customers.
The budget also points to Bill C-39 as a means of improving federal labour relations. While GGC supports efforts to prevent disruptions, the budget does not include the full protections sought by the Keep Grain Moving coalition, including stronger maintenance-of-activities requirements, earlier intervention triggers and binding resolution mechanisms.
“The ability to write off a piece of equipment immediately matters, but a tax measure cannot solve the full cost and risk picture on a grain farm,” said Scott Hepworth, chair of Grain Growers of Canada and a Saskatchewan grain farmer. “Farmers still face high fertilizer and fuel costs, limited visibility into export demand and losses when labour disruptions stop grain movement. We need the government to finish the job with measures that protect farm cash flow and keep our grain moving.”
Budget 2026 does not remove tariffs on Russian fertilizer, establish a dedicated response to exceptional on-farm fuel costs or commit to mandatory export sales reporting. It also leaves unresolved GGC’s calls for stronger business risk management programs, sustained public agricultural research capacity and action on market-access barriers affecting Canadian grain.
GGC is also seeking clarity on the exclusion of agricultural businesses from the proposed Canada Growth Incentive. The organization will work with the federal government to support timely implementation of the measures announced in the budget and continue advocating for the practical policies grain farmers need to remain competitive.
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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
