Communications

Farm groups call for reversal of capital gains inclusion rate

Hana Sabah on January 17, 2025

PRESS RELEASE

(OTTAWA, ON – Jan. 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.

-30-

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

 

Viterra-Bunge Acquisition Approval Fails Canada’s Grain Farmers

Hana Sabah on January 15, 2025

PRESS RELEASE

(OTTAWA, ON – Jan. 15, 2025) 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.”

-30-

For more information:

P: (514) 834-8841
E: media@graingrowers.ca

Grain Growers of Canada Announces New Executive

Hana Sabah on December 10, 2024

MEDIA STATEMENT

OTTAWA (December 10, 2024) – 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 and 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.

-30-

For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca

Grain Growers of Canada Celebrates Passage of Right-to-Repair Legislation

Hana Sabah on November 1, 2024

MEDIA STATEMENT

(OTTAWA, ON – November 1, 2024) Grain Growers of Canada (GGC) applauds the passage of Bills C-244 and C-294, an important step forward and significant victory for Canadian farmers. After years of advocacy, these bills provide farmers the ability to repair their own equipment, ensuring the continued functionality of the advanced technology essential to modern agriculture.

GGC extends its gratitude to the Members of Parliament and Senators who supported these bills, and especially to MPs Wilson Miao and Jeremy Patzer, along with Senators Colin Deacon and Leo Housakos, for their dedicated sponsorship and guidance of this legislation through Parliament.

With Bill C-244 amending the Copyright Act, farmers will now have access to crucial diagnostic software needed to repair sophisticated machinery, from tractors to combines and sprayers. Similarly, Bill C-294, also amending the Copyright Act, facilitates the interoperability of parts and equipment, enhancing farm productivity and efficiency. Together, these Bills enshrine the right to repair, helping farmers manage their operations sustainably and independently.

As we celebrate this federal achievement, we call on provinces to consider similar measures to address the specific needs of grain producers in their jurisdictions.

-30-

For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca

Grain Farmers’ Livelihoods at Risk as Port of Vancouver Grain Terminals Face Impending Strike

Hana Sabah on September 23, 2024

MEDIA STATEMENT

(OTTAWA, ON – September 24, 2024) Grain Growers of Canada (GGC) is deeply concerned with the impending Grain Workers Union (GWU) Local 333 strike at the Port of Vancouver, which would stop all shipments of bulk grain. Grain farmers in the prairies rely heavily on the Port of Vancouver to handle and export the majority of the grain they grow. In fact, last year terminal elevators at the Port of Vancouver received roughly 52% of all grain produced from across Canada, underscoring the critical role these terminals play in our agricultural supply chain.

Following last month’s rail work stoppages, this strike will have an equally devastating impact on grain farmers across the prairies who are in the midst of harvest. Data from the Canadian Grain Commission indicates that this work stoppage will halt nearly 100,000 metric tonnes of grain arriving at these terminals per day, resulting in a loss of $35 million in potential exports daily.

GGC is calling on the federal government and Minister of Labour, Steven MacKinnon, to use all tools available to them to ensure parties reach an agreement before a work stoppage occurs. Without intervention, Canada’s international trading reputation will continue to suffer, leading to the loss of key global markets and customers.

-30-

For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca

Grain Farmers Welcome Government’s Directive for Binding Arbitration, Urge Swift Resumption of Railway Services

Hana Sabah on August 23, 2024

MEDIA STATEMENT

Negotiating parties have yet to reach an agreement on resumption of activities, despite clear directives from the government

(OTTAWA, ON – August 23, 2024) We welcome Minister of Labour Steven MacKinnon’s announcement that the government is directing the Canadian Industrial Relations Board (CIRB) to impose final binding arbitration. This news comes after weeks of grain farmers and agriculture groups urging the Minister to impose binding arbitration through Section 107 of the Canada Labour Code to protect farmers’ livelihoods, food security, and Canada’s international reputation.

However, negotiating parties have yet to reach an agreement on resumption of activities, despite clear directives from the government. For the good of Canada’s food, economic, and national security, we are calling on all parties to abide by yesterday’s directives and to work with, not against, the CIRB to resume railway service. Grain farmers will continue to lose $50 million a day with the continuance of a total shutdown of our national railways. The time is now to get Canada’s railways back on track.

-30-

For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca

Railway Work Stoppages to Cost Grain Farmers Over $50 Million Daily

Hana Sabah on August 22, 2024

(OTTAWA, ON – August 22, 2024) Grain Growers of Canada (GGC) is raising the alarm over the unprecedented dual work stoppage by both of Canada’s major railways, CN and CPKC, which began this morning. The work stoppages will inflict severe economic damage on the grain industry and the broader Canadian economy. This simultaneous disruption comes at the most critical time of the year for grain farmers—harvest season—when rail transportation is essential for moving crops to market.

GGC estimates that the initial impact of this dual stoppage will cost grain farmers over $43 million a day in the first week alone, with losses expected to escalate to $50 million a day the week after and beyond if the stoppages continue.

“The total shutdown of Canada’s two national railways is an unprecedented crisis for the grain industry,” said Kyle Larkin, Executive Director of the Grain Growers of Canada. “With work stoppages at both CN and CPKC, our entire supply chain is at risk. This disruption is happening at the worst possible moment, during the start of harvest season, when our farmers are most dependent on our rail network.”

Canada is home to over 65,000 grain farmers whose crops account for $35 billion in exports. With grain elevators situated on railways, growers rely on the network to market and sell their grain. With no viable alternatives to rail, the delays will result in lost sales, degraded grain quality, and a substantial loss of market confidence.

“The economic impact of this stoppage will be felt far beyond the farm gate,” said Andre Harpe, Chair of the Grain Growers of Canada. “Consumers could see higher prices and shortages of food products that rely on grain, while farmers are left grappling with reduced income.”

The agricultural sector is already under pressure from various challenges, including fluctuating commodity prices and ongoing geopolitical tensions. A work stoppage at CN and CPKC further exacerbates these issues, leading to increased costs and reduced competitiveness for Canadian farmers.

“Previous labour disruptions have already strained Canada’s trade relationships, and another prolonged stoppage could further damage our reputation as a reliable supplier,” Harpe added. “International buyers may turn to other countries for their grain needs, resulting in lost market share for Canadian farmers and long-term economic repercussions.”

Grain Growers of Canada is urgently calling on the federal government and the Minister of Labour to intervene and ensure that these critical transportation lines are restored to full operation as quickly as possible.

-30-

For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca

CEI changes fall short of addressing capital gains tax hike, says Grain Growers of Canada

Hana Sabah on August 13, 2024

MEDIA STATEMENT

(OTTAWA, ON – August 13, 2024) Grain Growers of Canada acknowledges the Government of Canada’s proposed enhancements to the Canadian Entrepreneurs’ Incentive that will benefit some grain farmers. However, these revisions do not sufficiently address the substantial impact of raising the capital gains inclusion rate from one-half to two-thirds on primary food producers. Additionally, the added complexity introduced by the CEI, alongside the increased inclusion rate, will drive up accounting and legal expenses for farmers, putting further pressure on their finances.

Patchwork approaches and fragmented incentives won’t deliver the economic growth and support that Canada’s grain farmers and rural communities need.  Comprehensive, forward-thinking policies that support farming operations by encouraging innovation are what Canadian grain farmers need.  Most importantly, the government must move away from discouraging the ambitions of our current and future grain farmers and instead partner with them to address the productivity and profitability challenges that impact the agricultural sector. Grain Growers of Canada continues to call on the federal government to revert to the original one-half inclusion rate for intergenerational transfers.

-30-

For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca

GGC Urges Swift Resolution to Potential Rail Disruption Amid Critical Harvest Season

Hana Sabah on August 9, 2024

MEDIA STATEMENT

(Ottawa, ON – August 9, 2024) In response to the Canada Industrial Relations Board (CIRB) decision today, Grain Growers of Canada (GGC) continues to urge Canadian National Railway (CN), Canadian Pacific Kansas City (CPKC) railway, and Teamsters Canada to come to an agreement before any work stoppage is initiated. With the start of the harvest season, it is critical that grain farmers continue to be able to market their grain to support their livelihoods, uphold Canada’s trade reputation, and address both domestic and international food demand.

GGC also urges the Minister of Labour and Seniors, Steven MacKinnon, to use all federal tools possible to ensure that both railways don’t face simultaneous work stoppages. GGC Executive Director Kyle Larkin is available for interviews upon request.

-30-

For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca

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

Hana Sabah on June 11, 2024

(OTTAWA, ON – June 11, 2024) 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.”

-30-

For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca