NFU Submission on Tax Planning Using Private Corporations
Our comments provide context to the public debate around this consultation, and we examine some of the underlying issues that have heightened apprehension among farmers in regard to the proposed tax system changes. We believe many concerns were over-stated in media reports. Most family farms are not incorporated, and thus have no access to the tax planning measures under discussion. The tax planning measures would affect profits – that is, net income left after all expenses are paid, including inputs, wages and salaries – and in order to benefit from these measures, profits would need to be substantial. Most farms do not reach the approximately $200,000 year profit level that would make it worthwhile to pay the various legal and accounting fees required to benefit from the tax planning measures under discussion. Canada’s 43,457 incorporated family farms comprise only about 2.4 % of corporations that could potentially be affected by proposed changes. Most important, the $1 million lifetime capital gains exemption for farmers is not under discussion in this consultation process. Read more
Farmers need more light, less heat, in tax proposal debate
The federal government is proposing changes to the Income Tax Act aimed at collecting revenue from corporations that are using certain measures as loopholes to shelter profits from being taxed at the same rate as other Canadians’ income. There is a very heated debate in the farm community about these tax proposals, largely because some organizations and the media in general, have failed to analyze the proposals, omitted key details or have not mentioned that the government is holding public consultations. The actions of very wealthy players who are abusing provisions that were intended to help small business owners have focused attention on tax-dodging practices, resulting in the government’s proposal. Read more
Input to Federal Consultation on Cash Purchase Tickets
Cash ticket deferral is a valuable tool to help farmers manage their cash flow and allow them to take advantage of delivery opportunities. The grain transportation system will run more efficiently if farmers do not have to manage the timing of their grain deliveries in relation to income tax considerations. It would be unfair to require farmers to be taxable on more than one years’ production in a given year due to conditions around grain delivery that are outside of the farmers’ control. Therefore, the NFU recommends keeping the option for income tax deferral in respect of deferred cash purchase tickets for deliveries of wheat, oats, barley, rye, flaxseed, rapeseed and canola, and expanding the cash ticket deferral to include all other grains covered by the Canada Grains Act, namely beans, buckwheat, chick peas, corn, fababeans, lentils, mixed grain, mustard seed, peas, safflower seed, soybeans, sunflower seed, and triticale. Read more
Urgent Action Alert: Comments on proposed food safety regulations
The Canadian Food Inspection Agency (CFIA) has proposed a major change to food safety regulations. If these regulations are adopted they will increase farmers’ costs, increase the cost of food, make it much harder for small fresh fruit and vegetable farmers to survive and would severely damage, if not destroy, the organic sector. Please read Read more
Safe Food for Canadians regulations
The NFU has provided three submissions to the consultation on the proposed Safe Food for Canadians regulations. The NFU Direct Marketing Committee letter focusses on the implications for farms that do direct marketing in communities that straddle provincial boundaries. The NFU in New Brunswick submission focusses on implication for New Brunswick farmers. The NFU submission prepared by the national office focussed on implications for fresh fruit and vegetable growers and for the organic sector. (Click on the highlighted links to read the full submissions) Government report on consultation process: What We Heard Report – The Proposed Safe Food for Canadians Regulations Consultation Read more
Saskatchewan budget makes life harder, more expensive, more isolated for rural people, says NFU
The Saskatchewan government's 2017 budget will make life more difficult for farmers and other rural residents while giving corporations and the extractive industries unnecessary tax breaks. Read more
Union Farmer Newsletter: March 2017
The Case for a Carbon Tax • Neonicotinoids under review: PMRA proposes phase‐out of imidacloprid and launches review of clothianidin or thiamethoxam • The Public Trust PR Campaign: Agribusiness efforts to avoid public regulation • Grain farmers—we want to hear from you! • Do Farmers Really Believe a Market Exists For Grain Sales? Read more
Free Trade, Rural Canada and How to keep Canada from being Trumped
We need an agenda for agriculture that makes rural quality of life and viable family farms the priority. Read more
Cattle producers affected by TB quarantine need immediate relief
The National Farmers Union (NFU) urges federal Agriculture Minister, Lawrence MacAulay, and his provincial counterparts, Hon. Oneil Carlier (Alberta) and Hon. Lyle Stewart (Saskatchewan), to provide immediate relief to cattle farmers affected by the expanding quarantine measures required in response to the discovery of Bovine Tuberculosis (TB) infection of six Alberta animals. Read more
NFU-NB welcomes Local Food and Beverage Strategy
Fredericton, NB— The National Farmers Union in NB welcomes the Local Food and Beverages Strategy announced today by Minister Rick Doucet. Read more