Provincial ministers oppose 2024 capital gains tax hike
A coalition of provincial agriculture ministers has expressed deep concern over the capital gains tax changes outlined in the 2024 federal budget.
During the annual Federal, Provincial, Territorial (FPT) Ministers of Agriculture conference in Whitehorse, Yukon, Agriculture Ministers from Saskatchewan, Alberta, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Manitoba raised the alarm about the potential devastating impacts on the agricultural sector.
"Agriculture is the backbone of our economy," said Saskatchewan Minister of Agriculture David Marit. "We must work with our producers, ensuring their success and the proposed changes to capital gains taxes will make it harder for us to do just that. It is our position that the federal government reverse this harmful policy and work with producers and provinces to keep our agriculture sector strong and vibrant."
Ontario Minister of Agriculture, Food and Agribusiness Rob Flack emphasized the importance of reducing taxes for farmers. "Raising capital gains taxes at a time when so many farmers are approaching retirement and managing farm succession planning is a serious mistake and our government opposes it unequivocally," he asserted.
Intergenerational farm transfers, a cornerstone of succession planning, are at risk due to the proposed tax increases. The changes will penalize farm operations and diminish retirement plans for farmers relying on asset sales. This, coupled with rising costs in the industry, threatens the long-term survival of family farms.
A looming retirement wave in the agricultural sector, with 40% of farm operators expected to retire by 2030, underscores the urgency of facilitating smooth intergenerational transfers. "The New Brunswick government has always been supportive in providing resources for farmers to assist with succession planning," said New Brunswick's Agriculture, Aquaculture and Fisheries Minister Margaret Johnson.
PEI Minister of Agriculture Bloyce Thompson highlighted the importance of supporting the next generation of farmers. "Changing the capital gains structure will harm the farming industry by stripping value from the family farm," he warned. Nova Scotia's Agriculture Minister Greg Morrow emphasized the need to an aging agricultural workforce, now is the time to encourage young people who are interested in farming and food production.
Manitoba Agriculture Minister Ron Kostyshyn joined the chorus of opposition, stating, "After years of succession planning, long-time producers should be able to retire knowing that their children have the opportunity of becoming the young farmers that will feed the next generation of Canadians."
The ministers collectively urged the federal government to reverse the proposed capital gains tax changes, arguing that the potential negative impacts on the agricultural sector far outweigh the anticipated revenue gains.