Budget 2024: The impacts on agriculture

The Government of Canada unveiled Budget 2024 this week. The budget recognizes Livestock Tax Deferral, the importance of interoperability, the potential for AI, capital gains exemptions, and the Advance Payment Program (APP). Below are some of the ways that Budget 2024 impacts agriculture.

Livestock Tax Deferral

What is it? The Livestock Tax Deferral is an instrument used during national disasters, such as droughts, or floods.

Why is it important? It mitigates financial burdens for farmers by allowing them to defer income from livestock sales.

What’s changing? The federal government is committing to collaborating with industry partners, like the Canadian Cattle Association (CCA), to explore enhancements like expediating support during crisis.

Interoperability

What is it? Interoperability refers to the ability for devices and equipment to exchange information.

Why is it important? Interoperability streamlines operations for farmers by allowing different equipment brands and devices from different manufacturers to work seamlessly together.

What’s changing? Budget 2024 proposes amendments to the Copyright Act and encouraging provinces and territories to update contract laws.

Artificial Intelligence

Why is it important? Artificial Intelligence (AI) has huge potential for Canada’s economic growth.

What’s changing? Budget 2024 allocates $200 million over five years to accelerate AI adoption in sectors like agriculture.

Capital Gains Exemption

Why is it important? Supports small business owners, farmers, and fishers by reducing capital gains tax on property sales.

What’s changing? The lifetime capital gains exemption limit is increasing from $1,016,836 to $1.25 million (effective June 25, 2024).

Advance Payments Program (APP)

What is it? The APP provides interest-free loans to farmers.

What’s changing? Budget 2024 is allocating $64 million to Agriculture and Agri-Food Canada for a $250,00 interest-free limit on APP loans in 2024.

Farm Credit Canada (FCC) Mandate Enhancement

What is it? The government is providing new guidance to Farm Credit Canada, Export Development Canada, and other financial Crown corporations.

Why is it important? Their mandate is to mobilize more financing and take on greater risk to support Canadian businesses in need.

What’s changing? FCC is encouraged to:

• Continue supporting agri-food and agribusiness through venture capital investment, and
• Further deploy technologies to mitigate climate change.

You can find the complete details of Budget 2024, by clicking here.