Sarnia-Lambton MPP tries again to create a tax break for farmers who donate food

Thursday, May 9, 2013

by SUSAN MANN

If passed, a provincial MPP’s private member’s bill to give farmers a non-refundable tax credit for donating excess produce to food banks may encourage more farmers to donate, says Ontario Federation of Agriculture president Mark Wales.

Progressive Conservative MPP Bob Bailey (Sarnia-Lambton) introduced the bill, Taxation Amendment Act (Food Bank Donation Tax Credit for Farmers) 2013, at Queen’s Park on Wednesday. It’s his third time trying to get the proposed legislation passed. It proposes to give farmers a non-refundable tax credit from the Ontario government worth 25 per cent of the wholesale value of their donated agricultural products. The proposal would also allow farmers to carry forward unused tax credits and deduct them for up to five years.

A May 8 press release from Bailey says he introduced the proposed act in 2010 and 2011 and despite getting positive responses from MPPs at Queen’s Park the bill died both times. “It was unable to pass through the legislative process before the Liberal government prorogued the legislature in both 2011 and 2012,” the release says.

Wales says he already donates excess produce but not in a big way. “With my pick-your-own, when we’re done the food bank actually brings a team out into the field so it doesn’t go to waste.” He says he also takes left over produce to food banks.

Wales says Bailey’s proposal is a very nice gesture that “won’t cost the government big dollars in the end but it will help highlight the availability of local food.”

Bailey’s release says each year Ontario farmers must discard or plough back into their fields 25 million pounds of food that is perfectly nutritious and tasty but wasn’t chosen for sale by grocers because of cosmetic reasons, such as size, shape or colour.  “When this produce is not selected for sale, farmers cannot afford the additional costs incurred to collect, process and deliver their unsold produce to local food banks despite a clear desire by the industry to do so,” the release says.

Wales notes that the 25 per cent tax credit would help offset some of farmers’ costs for the donation and it might make more produce available, which would really help the food banks when they’re in need.

In Bailey’s release, the Ontario Association of Food Banks says 413,000 Ontarians used local food banks every month in 2012 and that’s an all time high for the province. The demand is increasing but food banks across Ontario “have seen a decrease in donations,” the release says. In addition, the association notes food bank clients don’t get the recommended amount of fruits and vegetables listed in Canada’s Food Guide. BF