CALGARY, AB: The Western Canadian Wheat Growers Association welcomes the tax relief for farmers announced in yesterday’s federal budget. The increase in the capital gains exemption and the decline in the small business tax rate will help reduce the tax burden on farmers.
“These tax measures help facilitate the transfer of the family farm to the next generation and will encourage more young people to take up farming,” says Levi Wood, President of the Wheat Growers.
Under the budget, the Lifetime Capital Gains Exemption for farmers will increase immediately from $813,600 to $1,000,000. This increase will permit farmers to retain a greater share of their equity upon retirement.
The plan to reduce the small business tax rate from 11% to 9% over the next four years is also a welcome measure. This measure will reduce the tax paid by small business owners, including farmers, on their first $500,000 of active business income.
The Wheat Growers are also pleased to see the federal government’s commitment to a strong trade agenda, including support for concluding the Trans-Pacific Partnership and increased funding for the Market Access Secretariat. These and other trade initiatives will help expand exports and increase net returns to farmers.
“We thank the federal government for reducing the tax burden on farmers and other small businesses,” says Wood. “These tax measures and the measures to promote trade will strengthen the farm economy and lead to greater investment and prosperity on the prairies.”
About the Wheat Growers:
Founded in 1970, the Western Canadian Wheat Growers Association is a voluntary farmer-run advocacy organization dedicated to developing public policy solutions that strengthen the profitability and sustainability of farming, and the agricultural industry as a whole. For more information, please visit wheatgrowers.ca.