A coalition of major Canadian agricultural associations is pushing back against new federal tax policies that they believe could adversely affect the farming community.
The primary issue at stake is the proposed hike in the capital gains inclusion rate which, according to these groups, threatens the financial health of farming enterprises, especially when passing down farms through generations.
The letter argues that the increase essentially negates the benefits of the newly adjusted Lifetime Capital Gains Exemption (LCGE), which was recently raised to $1.25 million to better reflect the rising value of farmland.