The Grain Growers of Canada (GGC) revealed the capital gains inclusion rate changes will increase taxes by 30% on family-run grain farms. GGC Executive Director Kyle Larkin said its research shows an average grain farm in Canada — most of them run by families — will see a tax increase of 30% because of the two-thirds capital gains inclusion rate. “This hike targets farmers' retirement plans, complicates intergenerational transfers, and threatens the long-term viability of family farms across the country,” said Larkin in a press release. GGC found an 800-acre farm purchased in 1996 in Ontario would incur about $1.2 million in additional taxes if sold now, and a 4,000-acre farm in Saskatchewan would face an increase of more than $900,000.“With over 40% of farmers nearing retirement over the next decade, this tax increase introduces substantial uncertainty into their retirement planning,” said GGC Chair Andre Harpe. “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 farmers are cash poor, asset rich. Farmers invest in their operations by expanding their acreage, upgrading grain bins, and purchasing the newest, most innovative equipment such as tractors or combines. Larkin said a 30% increase in taxes on family farms “dramatically increases the cost of farms, pricing out many families.” In response, he said family farms are at risk, as the only farms able to pay millions of dollars more will be corporations or development companies. Statistics Canada reported Canada is experiencing a decline in family farms, with a 2% decrease between 2016 and 2021. “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.”The House of Commons by a 208 to 118 vote on Tuesday passed a motion to raise capital gains tax revenues from 50% to 66% effective June 25. READ MORE: Commons passes capital gains tax, effective June 25Liberal, Bloc Quebecois, NDP, and Green MPs supported the motion. Deputy Prime Minister and Finance Minister Chrystia Freeland called it a blow for tax fairness against multimillionaires — a claim disputed by critics. The tax applies to capital gains profits, including the sale of small businesses, commercial buildings, and vacation homes. .This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
The Grain Growers of Canada (GGC) revealed the capital gains inclusion rate changes will increase taxes by 30% on family-run grain farms. GGC Executive Director Kyle Larkin said its research shows an average grain farm in Canada — most of them run by families — will see a tax increase of 30% because of the two-thirds capital gains inclusion rate. “This hike targets farmers' retirement plans, complicates intergenerational transfers, and threatens the long-term viability of family farms across the country,” said Larkin in a press release. GGC found an 800-acre farm purchased in 1996 in Ontario would incur about $1.2 million in additional taxes if sold now, and a 4,000-acre farm in Saskatchewan would face an increase of more than $900,000.“With over 40% of farmers nearing retirement over the next decade, this tax increase introduces substantial uncertainty into their retirement planning,” said GGC Chair Andre Harpe. “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 farmers are cash poor, asset rich. Farmers invest in their operations by expanding their acreage, upgrading grain bins, and purchasing the newest, most innovative equipment such as tractors or combines. Larkin said a 30% increase in taxes on family farms “dramatically increases the cost of farms, pricing out many families.” In response, he said family farms are at risk, as the only farms able to pay millions of dollars more will be corporations or development companies. Statistics Canada reported Canada is experiencing a decline in family farms, with a 2% decrease between 2016 and 2021. “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.”The House of Commons by a 208 to 118 vote on Tuesday passed a motion to raise capital gains tax revenues from 50% to 66% effective June 25. READ MORE: Commons passes capital gains tax, effective June 25Liberal, Bloc Quebecois, NDP, and Green MPs supported the motion. Deputy Prime Minister and Finance Minister Chrystia Freeland called it a blow for tax fairness against multimillionaires — a claim disputed by critics. The tax applies to capital gains profits, including the sale of small businesses, commercial buildings, and vacation homes. .This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
