The Canadian Federation of Agriculture (CFA) is concerned about the negative impacts on family farms that will come from the delay to enact Bill C-208 as legislation.

The Finance Department has said that they are delaying the implementation of the Bill until January 2022, and will likely be making amendments in order to close potential tax loopholes.

Bill C-208 removes the tax burden that farmers face when transferring their farm to a family member. Prior to Bill C-208, there was a much larger tax burden facing farmers who had incorporated their operations and were looking to pass their farms over to a family member compared to those who transferred them to an unrelated third party.

“In our talks with the accounting community, this delay, and the uncertainty around exactly what the amendments will be, will force many farmers who were looking to transfer their farm to a family member to delay their retirement plans until 2022. If they transfer to a family member under the current rules, it can potentially cost them hundreds of thousands of dollars more in taxes compared to if this Bill was fulfilled,” said Mary Robinson, CFA President.

The Bill has received Royal Assent.

CFA says the primary concern is that the capital gains treatment afforded through Bill C-208 to inter-generational family farm transfers must be made clearly accessible as quickly as possible, as Parliament made its intentions clear through the passage of the bill.

“Ensuring farmers don’t continue to face this unfair penalty for transferring their farms to family members helps preserve the identity and financial stability of the Canadian family farm. With the average age of farmers now greater than 55 years, there is urgency here for the farming community. This is important legislation that will help safeguard our food production systems for our entire country,” added Robinson.

CFA has reached out to the Finance Department and says it will work to ensure that the intent of Bill C-208 remains intact and is a law as soon as possible.

More Ag News

Airdrie welcomes newest $50 million snack facility

From left to right, Nate Horner, Minister of Agriculture, Forestry and Rural Economic Development, Yousif Al-Ali, President and CEO, Super-Pufft Snacks Corp and Airdrie Mayor Peter Brown..captiontext…

G7 Agriculture Ministers meet in Germany

Canada’s Minister of Agriculture and Agri-Food, Marie-Claude Bibeau, meets with other G7 Agriculture Ministers in Stuttgart, Germany - Photo Credit: BMEL/Photothek.captiontext G7 Agriculture…

Seeding underway south of the border

.captiontext Seeding in the United States has ramped up over the past couple of days. Dan Basse is president of AgResource Company in Chicago. "We are finally getting at the seeding here in the last…

Canada's 2021 Census of Agriculture

File Photo.captiontext Data from the Census of Agriculture indicate that trends identified in previous census cycles, such as industry consolidation and aging of farm operators, have continued in…

Satellite changes could shutdown farmers

Photo Courtesy of Matt Yanick.captiontext There's a key change coming up next week for farmers that use WAAS - a Wide Area Augmentation System - for Precision Agriculture. Matt Yanick, President and… is Moose Jaw's only source for community news and information such as weather and classifieds.

Search the Biz Guide