Communications

OTTAWA, Nov. 4, 2025—Grain Growers of Canada (GGC) responded to targeted wins for grain farmers in Budget 2025, including the permanent reversal of the capital gains tax increase, but cautioned that other measures could undermine farm competitiveness.

“Budget 2025 acknowledged the impact that the capital gains tax increase would have had on family-run grain farms across Canada by permanently reversing it,” began Kyle Larkin, Executive Director of GGC. “This will ensure that family farms can continue their succession planning with certainty and that the next generation of farmers does not pay millions of dollars more in taxes.”

The budget also allocated significant sums towards trade diversification, including in response to the challenges that growers are currently facing due to Chinese tariffs on canola and peas. This includes the creation of a Strategic Exports Office and funds for the Canadian Food Inspection Agency to modernize trade tools and secure market access.

“I’m seeing first-hand how trade uncertainty is impacting grain farmers across the country,” said Scott Hepworth, Chair of Grain Growers of Canada and a grain farmer from Saskatchewan. “With challenges in the U.S. and tariffs in China, producers are under real pressure. The new investments in digital export tools and market diversification are positive steps. We need every tool available to keep grain moving, find new customers, and protect our bottom line in an unpredictable global environment.”

Infrastructure also features prominently in Budget 2025, with $213 million for the Major Projects Office to coordinate public and private investment and a new $5 billion Trade Diversification Fund to strengthen Canada’s export corridors. With nearly 70% of Canadian grain exported, efficient port infrastructure remains vital to keeping products moving to global markets on time and competitively.

“We continue to urge the government to add the Port of Vancouver to the next major projects list,” said Larkin. “It’s the single most important export gateway for Canadian grain, and its inclusion would send a clear signal that Ottawa is serious about improving trade competitiveness.”

Missing from the budget, however, was any commitment to extended interswitching, a key measure that expired in March 2025 and had allowed the sector to access competing rail lines, reducing shipping costs and improving service. “Without extended interswitching, farmers lose a competitive tool that kept costs in check and performance accountable,” Larkin warned.

GGC also expressed concern over the government’s plan to reduce Agriculture and Agri-Food Canada’s operating budget by 15% over three years, a move that could undermine public research and breeding programs essential to innovation and productivity.

“While Budget 2025 provides much-needed clarity for farmers, it falls short of delivering the full competitiveness framework needed,” continued Larkin. “We look forward to continuing to work with the government to ensure the sector remains competitive, resilient, and profitable to drive Canada’s export economy.”

For media inquiries, please contact:

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