Canola Farmers in Alberta Eligible for 2023 SR&ED Tax Credit

Feb 07, 2024

By Farms.com

Canola farmers in Alberta can capitalize on the Scientific Research and Experimental Development (SR&ED) tax credit, with a competitive rate of 12.49% applicable for the 2023 tax year. This tax credit allows growers to claim a portion of their service charge payment, specifically used to fund qualifying research initiatives.

Alan Hampton, Chair of Alberta Canola's research committee, emphasizes the significant value for growers participating in the canola service charge. He states, "Farmers can recover a portion of their dollars invested by the Commission in research through the SR&ED tax credit." Hampton highlights Alberta Canola's strategic partnerships and efficient allocation of research funds to tackle challenges such as blackleg and clubroot disease management, along with monitoring insect pests for susceptibility and resistance to insecticides.

For instance, an individual grower who paid a $1000 service charge to Alberta Canola in 2023 is eligible to claim a $124.90 tax credit.

The SR&ED tax credit can serve various purposes:

Offset federal taxes in the current year.
Receive a tax refund.
Carry forward up to 20 years to offset federal taxes owing.
Carry back three years to reduce federal taxes paid in those years.

Individual producers must file a T2038 (IND), while farm corporations need to file a T2SCH31 form. Growers are encouraged to reach out to the Canada Revenue Agency or consult their accountants for additional details.

For more SR&ED information, visit the Canada Revenue Agency website

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.