The FVGC says the budget weakens growers’ competitiveness; the permanent reversal of the capital gains tax increase is welcomed, the GGC says
Canadian ag industry groups are providing feedback on Prime Minister Mark Carney’s first federal budget.
Here’s what industry organizations are saying.
The Canadian Federation of Agriculture (CFA) classifies the budget’s plan as making progress but still leaving gaps for the sector.
“While several CFA recommendations were reflected in the budget, either as new spending commitments or a reannouncement of previous commitments, a number of critical areas remain unaddressed to seize Canadian agriculture’s full strategic potential as an economic driver for Canada,” the organization said in a statement.
The CFA is pleased with the commitments to invest in the Canadian Food Inspection Agency (CFIA) to modernize tools and expand market access.
The Accelerated Investment Incentive, which will allow businesses to write off larger shares of new capital investments, is also welcomed.
Other CFA pre-budget requests, however, didn’t receive attention in the budget.
These include permanently increasing the interest-free threshold for the Advance Payments Program, addressing labour disruptions in the food supply chain, and protecting farmland through Agricultural Impact Assessments.
The CFA says it will work to see those outstanding issues addressed, and to ensure the spending cuts to Agriculture and Agri-Food Canada don’t undermine ag’s resilience and competitiveness.
The Fruit and Vegetable Growers of Canada (FVGC) say the budget misses the mark on multiple issues.
While some announced measures are good for ag, other omissions will create challenges.
“When it comes to food security, this budget fails to deliver on the government’s earlier promises,” Marcus Janzen, president of the FVGC, said in a statement.
In its pre-budget requests, the FVGC looked for items like modernizing AgriInsurance to include greenhouse crops, and investments in domestic processing.
Without those, and other gaps, the budget reflects a government not adhering to its own platform.
“The Liberal election platform, released just six months ago, got it right when it stated that ‘Food security is about more than just ensuring there is enough food on our plates, it’s also about protecting Canada’s economic sovereignty,’ said Janzen. “This budget falls short on both counts.”
FVGC is also concerned about how spending cuts to AAFC will affect the department’s ability to modernize ag safety nets.
CropLife Canada is pleased the government proposed action to streamline the Pest Management Regulatory Agency (PMRA).
The government proposes legislative amendments “to remove cyclical pesticide re-revaluations to enable modern, risk-based oversight,” the budget says.
The organization is looking for the government to deliver results along with reduced red tape.
“Previous efforts to reform the PMRA have lacked ambition and failed to deliver meaningful outcomes,” the organization said in its statement. “In a period of fledgling productivity in Canada and ongoing threats to our competitiveness, now is the time for the government to demonstrate its commitment to big-picture thinking when it comes to regulatory reform, which will require meaningful engagement with industry.”
Like other groups, Grain Growers of Canada is pleased with some of the budget measures and concerned with some omissions.
The permanent reversal of the capital gains tax increase, opening a Strategic Export Office, and investments in trade diversification, are all positive.
But two items are raising concerns.
The government didn’t commit to extending interswitching to allow the industry to access competing rail lines.
“Without extended interswitching, farmers lose a competitive tool that kept costs in check and performance accountable,” Kyle Larkin, executive director of GGC, said in a statement.
The organization is also worried about the spending cuts to AAFC and how that will affect public research and breeding programs.
And Advanced Biofuels Canada is pleased with the previously announced Biofuels Production Incentive featured in the budget.
The $372 million program will help the biofuels and ag industry.
“With smart, targeted support for domestic producers, Canada can keep biorefineries operating, and build resilient demand for Canadian feedstocks, such as canola,” Fred Gharala, the organization’s president, said in a statement.