New Capital Gains Inclusion Rates Will Negatively Impact the Future of Farming in Ontario

Grain Farmers of Ontario to Produce Impact Analysis Report, Provide Recommendations on New Capital Gains Tax Inclusion Rate

Guelph, ON – June 14, 2024 – Grain Farmers of Ontario, the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean and wheat farmers, is concerned by the new capital gains inclusion rate and encourages the federal government to work with them to understand the on-farm impacts of these changes, and to re-evaluate the increasingly unreasonable tax burden on farms.

Family farm succession faces enough challenges without forcing new tax measures on farmers during planting season. It is critical that the government fully assess the impacts of these changes, consult those who are impacted, and work to mitigate the impact on Ontario farms.

“The federal government talks about farm sustainability, and we need to offer them a reminder of the importance of ensuring farms can pass from generation to generation without added costs and unreasonable financial pressures put on farmers,” said Jeff Harrison, Chair, Grain Farmers of Ontario.

Ensuring smooth farm transitions is more important than ever. According to Statistics Canada 2021 Farm Census data, 60.5 per cent of farm operators were 55 and older.

Grain Farmers of Ontario also intends to work with a taxation expert to conduct a deeper analysis of the new capital gains inclusion rate increases to make recommendations to the government to ensure Ontario grain farm sustainability and encourage new farmers.

“We need to ensure that the government clearly understands the real-world impact this tax increase will have on farmers and farm communities in Ontario. We look forward to working with the government to mitigate unforeseen, or misunderstood, negative impacts on farms and farm families,” Harrison continued.

Contact:

Victoria Berry, Manager, Communications – 226 820-6641; vberry@gfo.ca