Tax credit for farm food donations called 'groundbreaking'

Friday, December 5, 2014

At the end of September, Ontario launched its new Food Donation Tax Credit for Farmers, which provides a 25 per cent tax credit for donations of agricultural product. According to the website of the Ontario Association of Food Banks (OAFB), this program is the first of its kind in the country and has been a long time coming.

The OAFB represents 120 food banks and 1,100 hunger relief programs serving over 375,000 individuals, including 131,000 children, every month. Its website says the OAFB has been working with Conservative MPP Bob Bailey for the past several years to try and get the tax credit off the ground.

Now farmers can claim 25 per cent of the fair market value of charitable food donations made to a community food program after Jan. 1, 2014. Farmers can donate any product that can be legally sold in Ontario. The OAFB calls the tax credit "groundbreaking," noting that "farmers deserve, and need, a tax credit to help cover the costs of harvesting and transporting product to food banks. Up until recently, farmers donated thousands of pounds of fresh food out of sheer generosity."

Of course, it's also hoped that, in addition to rewarding those already donating, this credit will encourage new donations, and early reports seem to indicate that to be the case. Quebecor's QMI Agency reported that, in October, farm donations to the London Food Bank were up 12 per cent from that time last year (305,000 pounds, up from 272,000 pounds). BF