OFA Fights for Next-Gen Farmers in Canadian Incentive
By Jean-Paul McDonald
Farms.com
The Ontario Federation of Agriculture (OFA) has raised concerns with Deputy Prime Minister and Minister of Finance, Chrystia Freeland, regarding proposed changes to the capital gains inclusion rate and eligibility criteria for the Canadian Entrepreneurs’ Incentive.
OFA members fear that current wording may exclude the next generation of farmers from accessing this incentive, as they often inherit or purchase farm businesses at below market value to sustain family farming traditions.
Under the existing criteria, only founding shareholders qualify, which could potentially disqualify successors inheriting or buying farm properties critical to the agricultural sector.
In response, OFA has urged the government to amend the eligibility requirements for the Canadian Entrepreneurs’ Incentive.
OFA proposes expanding criteria to include owners of all qualified farm properties meeting standards outlined in Section 110.6 of The Income Tax Act.
This adjustment would ensure continuity in farm operations and support intergenerational transfer of agricultural businesses, aligning with OFA’s commitment to preserving family farming legacies.
The initiative underscores OFA’s advocacy for fair policies that accommodate the unique needs of agricultural communities.
OFA emphasizes the importance of sustaining agricultural enterprises across generations, reflecting their dedication to fostering a robust and resilient farming sector in Ontario and beyond.
OFA President Drew Spoelstra’s concludes the letter as follows: “We remain hopeful that with our input, the federal government will produce policy that best supports the agri-food sector and ensures the stability and sustainability of Canada’s family farms, now and in the future.”