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Grain farmers in Ontario will benefit from Canada’s federal budget

Canada will invest nearly $30 million into agricultural marketing

By Diego Flammini, Farms.com

Two days ago Canada’s Minister of Finance Joe Oliver released the federal budget for 2015. Many industries are set to benefit from it and agriculture is no exception.

Grain Farmers of Ontario are especially pleased to hear that the Lifetime Capital Gains Exemption for farm owners will be increased to $1 million. Fishing businesses are also eligible for the $1 million exemption.

“The increase in the Lifetime Capital Gains Exemption will be of great benefit to all farmers,” said Mark Brock, Chair, Grain Farmers of Ontario. “Increasing land prices have resulted in farmers disposing of their assets for significantly higher prices than they originally paid, and the Exemption will help ensure investment back into the farm.”

The Lifetime Capital Gains Exemption encourages farmers to invest in farming and fishing ventures and will help owners in saving for retirement. Market access expansion will help Ontario’s agriculture discover new markets and develop trade agreements around the world.

“The competitiveness of Ontario grains is essential to a healthy and growing Ontario grain industry,” said Brock. “Ontario grains are high quality and in high demand around the world. We look forward to expanding and diversifying markets and further capitalizing on opportunities domestically and internationally with funding provided by this budget.”

Other agricultural initiatives outlined in the federal budget include:

  • Committing $18.1 million over two years, starting in 2016-17 to promote competitiveness and trade opportunities for the agriculture and agri-food sector.
  • Providing an additional $12 million over two years, starting in 2016–17, to market Canadian agricultural and agri-food products around the world.

The Ontario government will release their provincial budget later today.

Join the conversation and tell us your thoughts about the Canadian government’s investments into the country’s agricultural sector.

Canada's Minister of Finance, Joe Oliver.
Canada's Minister of Finance, Joe Oliver.


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