Farm groups urge reversal of capital gains inclusion rate

Over 130,000 Canadian farmers and ranchers, represented by the Canadian Canola Growers Association (CCGA), Canadian Cattle Association (CCA), and Grain Growers of Canada (GGC), are urging the Government of Canada to reverse its decision on the proposed capital gains inclusion rate legislation.

Despite the Deputy Prime Minister and Minister of Finance introducing a Notice of Ways and Means Motion (NWMM) to amend the Income Tax and Regulations, these changes require parliamentary approval and should not proceed without it, say the groups.

With the average age of Canadian farmers now over 55, tens of billions of dollars in farm assets will change hands in the next decade. Farms are expanding, often supporting multiple households, and many are incorporating for tax and estate planning. Meanwhile, the cost of land and farm assets is rising, making it increasingly expensive for new farmers to enter the market.

The CCA opposes the rapid implementation, lack of consultation, and changes that undermine Bill C-208’s policy intent, particularly the ongoing uncertainty around capital gains treatment, which adds costs, complexity, and delays for farmers transferring assets between generations. Although the proposed amendments to the Lifetime Capital Gains Exemption increase the limit on eligible gains, this does not address the broader challenges these policy changes create.

Therefore, the CCA, alongside GGC and CCGA is calling on the government to halt the NWMM and revert to the previous capital gains inclusion rate. All political parties are urged to support reversing the increase for farmers.