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.

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For more information:

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

(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.”

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For more information:

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

(OTTAWA ON – MAY 3^RD 2024) GGC today applauds the release of CFIA’s long awaited final guidance on novel feed, marking the completion of a trio of regulatory updates that enable the introduction of gene-edited crops in Canada. These updates, initiated in 2018, are designed to foster agricultural innovation in plant breeding by addressing today’s farming challenges such as pest and disease management, yield improvements, drought resistance, and the nutritional quality of crops.

“This progress opens doors to innovation in Canadian agriculture, enabling the introduction of gene-edited crops that meet pressing agricultural challenges like drought, pests, and diseases, while enhancing nutritional quality,” said Andre Harpe, Chair of Grain Growers of Canada. “The updated guidance enables us to use the latest innovation in plant technology to produce nutritious and affordable food for Canadians and our international customers.”

The regulatory guidance aligns Canada’s regulations with our trading partners, ensuring Canadian farmers remain competitive globally. It is based on rigorous, science-driven assessments that guarantee the safety and efficacy of gene-edited crops.

“Completing this trio of regulations is a milestone that began five years ago, reflecting our joint commitment with government agencies to promote a regulatory environment that supports innovation while ensuring safety and transparency,” said William van Tassel, 1^st Vice Chair of Grain Growers of Canada. “With these updated guidelines, our farmers can access advanced tools to produce crops with better resiliency and higher yields, while meeting the demands of the market today and the future.”

The clarity provided by these regulatory updates is expected to accelerate the development and adoption of new plant varieties, crucial for enhancing the competitiveness of Canadian agriculture.

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For more information:

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

(Ottawa, ON – May 1, 2024) Following the recent announcement that over 95% of railway workers at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) have voted in favour of strike action as early as May 22, Grain Growers of Canada (GGC), representing over 65,000 grain farmers across the country, calls for an urgent resolution to prevent potentially mass disruptions to the agricultural sector and the broader Canadian economy.

Andre Harpe, Chair of the Grain Growers of Canada, stated, “As farmers, our operations are closely tied to rail transport, both inbound to access crop inputs and outbound to deliver grain to export position. A rail strike now is the last thing we need. We’re at a critical point in the seeding season, and any delay in shipping can directly affect our bottom line and cause substantial economic losses across the agricultural sector.”

The potential for a combined strike at both CN and CPKC could severely impact the grain sector, which is highly dependent on rail transportation due to Canada’s vast geography. Approximately 94% of Canadian grain is transported by rail, with a significant portion destined for export markets. A disruption in rail service could leave grain elevators unable to accept crops from farmers due to limited storage capacity, resulting in delayed payments and financial hardships for growers.

“We are deeply worried about the impact a strike would have, not just on our operations but on Canada’s reputation as a reliable supplier. Consecutive supply chain disruptions have already strained our relationships with international buyers. Another stoppage could drive them to seek other markets, affecting us long-term,” added Brendan Phillips, 2nd Vice Chair of GGC.

GGC emphasizes the two-fold impact of the dispute: domestically, grain elevators will face storage issues, port terminals will suffer demurrage, and internationally, Canada risks weakening trade relations due to unreliable grain deliveries. In June 2023, Canada exported over 2.6 million metric tonnes of grain, highlighting the potential economic loss of over $35 million for each day in June that a strike persists.

Grain Growers of Canada stresses the importance of uninterrupted rail service for the agriculture sector’s sustainability and international competitiveness. “We urge the unions and railway companies to consider the broader impact of their negotiations. It’s crucial to find a resolution that keeps our trains moving and our grain flowing to markets around the world,” Harpe concluded.

As the mediation period begins, GGC is advocating strongly for a resolution that ensures the stability and continuity of Canada’s grain supply chain, which is essential for the livelihoods of Canadian grain farmers, our country’s food security, and our economy.

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For more information:

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

(OTTAWA – April 24, 2024) Grain Growers of Canada welcomes Mr. David Hunt as the new Chief Commissioner of the Canadian Grain Commission. The Canadian grains sector has significantly evolved over the past forty years, necessitating updates to the Canadian Grain Act to keep pace with changes in international markets, crop varieties, and farm operations.

“Our engagement with Agriculture and Agri-Food Canada and our submission to the Canada Grain Act Review consultation highlight our commitment to modernizing this legislation to better serve grain farmers,” said Kyle Larkin, Executive Director of Grain Growers of Canada.

“We extend our gratitude to Mr. Doug Chorney for his dedicated service as the Chief Commissioner since 2017 and wish him the best in his future endeavours. We look forward to collaborating with Mr. Hunt to advance these important reforms, ensuring our Canadian growers remain competitive and continue to meet the highest standards of grain quality,” concluded Larkin.

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For more information:

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