CFA Frustrated as Capital Gains Legislation Undermines Family Farm Successions

Jun 12, 2024

Ottawa – The Canadian Federation of Agriculture (CFA), who represent over 190,000 farm families across Canada, is disappointed with the Government of Canada’s decision to ignore calls to delay implementation of changes to the recently announced capital gains inclusion rate. By announcing the proposed tax changes in the Federal Budget on April 16th with an effective implementation date of June 25th, the Government of Canada is not providing Canadian farm businesses with enough runway to fully assess the potential implications of these changes for farm succession tax planning purposes and adjust accordingly.

While the Lifetime Capital Gains Exemption (LCGE) was increased to $1.25 million, the capital gains inclusion rate was also increased from one half to two thirds. CFA's concern is that by increasing the capital gains inclusion rate we are neutralizing the increase to the LCGE threshold and jeopardizing the success of genuine intergenerational farm transfers and the financial health of the next generation of farms across Canada.

“By ramming these very significant tax changes through while farmers are in the field planting, we aren’t giving producers enough time to fully assess the implications for their families and their businesses,” said Keith Currie, CFA President.

With 40% of Canadian farm operators set to retire over the next decade, we need to ensure that the proposed personal income tax measures announced in Budget 2024 do not jeopardize the transfer of assets from one generation of farmer to another, but rather encourage the next generation of farmers to take up the calling, drive much needed rural economic activity and help the agriculture sector reach its growth potential.

Source : CFA-FCA

Video: From Students to Solutions | On The Brink: Season 2, Episode 14

Ask Canada’s most decorated soybean breeder his favourite part of the job and he doesn’t name a single variety. He names the students.

Istvan Rajcan is a professor of soybean breeding and genetics in the Department of Plant Agriculture at the University of Guelph, where he has run the soybean breeding program for 28 and a half years. In that time he has developed 87 soybean cultivars, published 140 refereed papers and trained 51 graduate students. In 2025 he received the Public Sector Impact Award from the National Association for Plant Breeding.

He is also worried. In this episode he says Canada is at a crossroads, pointing to recent government cuts to plant breeding programs and to the facilities that support them. His prescription is structural. "Plant breeding funding formula has to be a long-term one," he says.

The formula he is defending is the public-private matching arrangement his program runs on. Private seed companies fund the work, provincial or federal money matches it, and the combined pool stretches each dollar further than either source could alone. At the National Association for Plant Breeding annual meeting in June, he says American public breeders were often surprised at how well that collaboration works in Canada.

He also describes how the people entering plant breeding have changed. His early graduate students came mostly from farms. More recently they include, in his words, "city kids who just became excited about genetics."

Topics covered:

Why public-private plant breeding funding in Canada needs a long-term

commitment rather than a larger one

How matching private seed company investment with provincial and federal

dollars multiplies research capacity

How the graduate student pipeline into plant breeding has shifted from

farm kids to city kids