Feds extend capital gains exemption for farmers

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Increasing the lifetime capital gains exemption to $1 million will serve little purpose except to entice even more farmers to fall victim to the land-buying mania on the part of supply managed farmers as they pay ever-dizzying price/earnings multiples in order to spend the windfall gains they receive because of the 200% tariff barriers they, and they alone, enjoy - or, in other words, this announcement simply gives an existing bully an even bigger stick.

Or, to look at it another way, Ritz and his minions never considered that the way to cool land prices would be to reduce the capital gains exemption, not increase it or, even better yet, simply get rid of supply management - the cause of the problem in the first place.

Or, to look at the matter from a cynical, yet completely-accurate point of view, the change in the capital gains legislation is a band-aid solution to a much-deeper problem caused by other legislation (tariff barriers propping up supply management).

Even more cynically, when Ritz claimed "We've seen our ability to grow and produce climb", he seems to be hoping that nobody has noticed that supply management has caused the Canadian dairy industry do the exact opposite.

And finally, Ritz is, of course, hoping that no farm income tax practitioner is going to point out the smoking gun of this announcement - the apparent lack of change to the alternative minimum tax regulations which completely astound farmers who believe that selling their farm capital gains-free means tax-free, and that, as any farm tax practitoner knows, completely horrifies anyone who has had to pay it, which is, by now, everyone who sells a farm.


Stephen Thompson, Clinton ON

Interesting that OFA president Don McCabe made the following comment while in the U.S. “We have to ensure we put in a safety net system that allows farmers to be sustainable in their own economics so we can take care of the rest of society’s needs while we’re at it,” he said. Reduced government support for the national Agri-Stability program has left policy gaps that need filling, McCabe said.

Easy fix Don it's called " Equity with the U.S. Farm Bill". Canada's Agristability has, at the current reduced 70% margin coverage, been effectively neutered. Meanwhile, the U.S. Farm Bill lives on. And when the going gets really tough U.S. politicians will be there again with even more emergency funding.

Not one mention of the most important part of the budget in the above article which is the increase in contribution to TFSA's. I encourage every farmer to make the best effort to use theirs(I know a few farmers that have them full).

Raube Beuerman

If the Canadian government wants to expand export markets and make us competitive on the world market, then why o why don't they require our inputs to be competitively priced? Example: check auto parts prices in Can. $


Most items are about 1/3 the cost of a similar part here in Canada. Ag parts are often far cheaper as well. So, how do we compete?

They should have lowered the exemption to $500,000 per person. You are right about the minimum tax.

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