OFA advocacy works as the Canadian government has implemented changes to provide Ontario farmers access to the Canadian Entrepreneurs’ Incentive, but there’s still work to go on lowering the capital gains rate.
By Andrew Joseph, Farms.com; Photo by Scharfsinn86/iStock/Getty Images Plus photo
Over the past three months, the Ontario Federation of Agriculture (OFA) has advocated for changes to the Canadian Entrepreneurs’ Incentive that reflect the unique realities of Ontario farmers and their families.
While the OFA continues to have serious concerns about the increase in the capital gains inclusion rate, it said it is pleased the federal government has responded to the feedback it provided and made changes that will allow Ontario farmers to access the Canadian Entrepreneurs’ Incentive.
The increase in the lifetime capital gains exemption is appreciated at a time when many farm operators are looking at transition plans or exit strategies for their farm businesses. The federal government must recognize the challenges and complexities associated with farm succession, and the challenges in place for new entrants.
The OFA will continue to advocate for policy solutions that support the agri-food sector and ensure the stability and sustainability of Ontario’s family farms, now and in the future.
A more comprehensive response to these tax changes will be forthcoming from the OFA in response to the government consultation ahead of the September 3, 2024, deadline.
For more information regarding the government consultation on the budget 2024 measures, click HERE.