OTTAWA - Despite modest reference to agriculture in the federal budget tabled yesterday, the Canadian Federation of Agriculture (CFA) is pleased with the inclusion of the 'Made in Canada' initiative and efforts to eliminate trade barriers and tax compliance burdens.
The CFA recognizes the work done by government to increase the competitiveness of Canadian farmers, and we see continued commitment in that regard in various aspects of this budget," said CFA Vice-President Humphrey Banack.
The agriculture-friendly aspects of the budget include:
Food Safety: $390 million invested into food safety. "We are pleased to see CFIA given more resources, particularly on the staffing side and information sharing, to help maintain a strong food safety system," Banack noted.
'Made in Canada': A private sector steering committee to be established to lead the development of a 'Made in Canada' consumer awareness campaign. "Promoting Canadian products is something the CFA has been calling on for some time, most recently through the National Food Strategy, so we are very pleased with this development. We look forward to working out the details with stakeholders to find a system that is clear to consumers and works on the ground level for manufacturers and farmers alike," said Banack.
Internal Trade Barriers: Identify measures currently restricting trade and focus on ways to reform the obstacles. "Canadian agriculture is prime to push its potential," Banack noted. "We are pleased to see a comprehensive look at internal barriers will be conducted so when opportunity arrives, there's nothing standing in the way."
Research: Investing in university stream research through the Canada First Research Excellence Fund. Investing in research ensures the sector continues to grow and to be on forefront of opportunity. The CFA hopes to see agricultural research prioritized.
Labour: Commitment to connecting Canadians with jobs. The CFA commits to continuing to work with government to better connect unemployed Canadians into agriculture, as chronic labour shortages remain a real concern for the industry.
Taxation: Extension of a tax deferral for the disposal of animals in disaster situations. This is positive for the industry because it was previously limited to breeding stock of livestock, but has now been extended to include horses kept for breeding purposes and bees. "It is important to note, however, key taxation issues that did not make this budget," said Banack. "Specifically, the budget didn't address CFA's concerns with last year's reinterpretation of restricted farm loss rules, red tape that siblings face when trying to divide farm corporations, or tax barriers associated with the use of holding companies in intergenerational farm transfers," Banack concluded.
U.S-Canadian Price Discrimination: Introduce legislation to address price discrimination that is not justified by higher operating costs in Canada. As the Budget notes, evidence suggests that some companies charge higher prices in Canada than in the U.S. for the same goods, beyond what could be justified by higher operating costs. CFA looks forward to working with government as the details of the legislation are rolled out.
Source: CFA-FCA