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Budget 2013 Welcomed by Canada’s largest Farm Organization

CFA Mostly Pleased with Federal Budget but Raises Some Concerns

By , Farms.com

The Canadian Federation of Agriculture (CFA) released its reaction -- as it pertains to agriculture -- to the Harper Government’s eighth budget which was tabled yesterday.

While the agricultural group welcomed many of the measures in the budget, it also indicated that they had some concerns around taxation barriers for young and small-scale farmers.

"Overall, we are pleased to see Budget 2013 outline several important contributions essential to the growth of the sector - reaffirmation of the $3 billion in funding for Growing Forward 2 programs and investments in research and innovation, in particular," said CFA President Ron Bonnett in a press release. 

The following are some highlights of the budget that affect agriculture:

Taxation
•Increase of $50,000 of Lifetime Capital Gains Exemption – tool that can help farmers manage the tax burden with the transfer of farm assets.
•Section 31 – Restricted Farm Losses (Income Tax Act) – the budget indicated an increase from $8,750 to $17,500. The CFA identifies this as a major barrier for new entrant farmers. This section deals with the circumstances that a farmer can claim for farm losses. The CFA recommends that a more realistic figure might be closer to $40,000 for new entrants into agriculture especially with high farmland costs and farming’s increasing capital costs.

Research
•Increase in investment in Genome Canada – which will support agriculture innovation and research.

Infrastructure
•Commitment to significant funds for infrastructure that will help support rural communities which will be good for farmers and increase the accessibility for transportation of agricultural products to markets.

Trade
•Continued support for beyond the boarder work and reducing barriers to trade between U.S. and Canada
•Continued emphasis on trade and creating a competitive business environment


Trending Video

US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops

Video: US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops


A dry August and a “flash drought” in the ECB (Eastern Corn Belt) the driest top 10 to 15 years in 150 to 160 years (Ohio the driest in 133 years) plus disease is taking a bite out of the 2025 U.S. corn and soybean crops.
It's going to be an early harvest. This could be the start of the 89-year drought cycle that may have been delayed until 2026 as La Nina maybe returning.
The USDA September crop report is all about record corn ears and record soybean counts but the October USDA crop report will be about pod and ear weights.
Stats Canada reported higher forecasts for the 2025 Canadian Prairies all wheat and canola crops vs. last year based on satellite imagery but are they overestimating production?
The 2025 Great ON Yield Tour and Quebec crop tours are projecting corn and soybean crops below the 10-year average.
China's Vice Commerce Ministry Li Chenggang visits Washington this week as we continue to connect the dots is a positive sign towards a China/U.S. trade deal. But will U.S. farmers have a winter without China as they buy more soybeans from Uruguay/Argentina? U.S. Northern Plain soybean farmers are seeing red with flat prices at $8.97/bu!
U.S. corn exports on record pace up 99% vs. last year.
Fund short covering continues in corn futures bottom is in!