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Deferred Cash Tickets to Remain an Important Business Tool for Farmers
Canola farmers welcomed the recent announcement by Agriculture and Agri-Food Canada Minister Lawrence MacAulay that the current use of deferred cash purchase tickets for canola and other listed grains will be maintained. Earlier this year the Government of Canada had launched consultations exploring the potential elimination of this important farm business tool.
Due to the volatile nature of production and markets, many farmers use deferred cash tickets to smooth income between years of high and low production. “Deferred cash purchase tickets are a commonly used tool by farmers,” says Jack Froese, President of Canadian Canola Growers Association. “Farmers presented a strong case for maintaining this aspect of our tax laws to keep farming viable between the good and not so good years. We’re very pleased that cash purchase ticket deferrals will be maintained.”
Deferred cash purchase tickets allow farmers to deliver a listed grain – such as canola, wheat, oats, and barley – to a licensed elevator and receive payment for that grain in the year following the year of delivery. Producers receive a deferred cash purchase ticket upon delivery and income is claimed in the subsequent year.
The decision to maintain deferred cash purchase tickets for listed grains was announced by Agriculture and Agri-Food Minister, Lawrence MacAulay, on behalf of Finance Minister, Bill Morneau, on November 6th.
CCGA represents more than 43,000 canola farmers on national and international issues, policies and programs that impact farm profitability.
Source : Saskcanola