Mr. Speaker, it is a great pleasure for me to speak to this bill relating to Canada's vibrant agriculture and agrifood industry.

This highly diversified sector is a major economic driver in Canada. It generates more than $100 billion, or more than 6% of Canada's GDP, and employs one in eight Canadians.

Agriculture has shaped our nation and contributes to the health of Canadians and of the Canadian economy. We are talking about a powerful driver of job creation, growth and trade in Canada. The sector has evolved to become highly specialized, efficient and able to make remarkable progress in terms of crop yields and diversification.

We know that farmers play a key role in our economy, and that is why we want to be certain to take the appropriate actions, particularly regarding the new generation of farmers and agricultural entrepreneurs. That is also why this bill will ensure that the government does not change the tax measures aimed at helping family businesses grow, create jobs and innovate.

The Government of Canada is committed to supporting Canadian farmers by investing in the growth of the agrifood sector and in agricultural innovation.

On November 6, 2017, the Minister of Agriculture and Agri-Food, on behalf of the Minister of Finance, announced tax relief to assist farmers. Those measures included tax relief for farmers who received compensation under the Health of Animals Act for the mandatory destruction of their livestock following the outbreak of bovine tuberculosis in Alberta and Saskatchewan in 2016 and 2017. There was also the designation, for tax deferral purposes, of regions affected by flooding or drought in 2017, a measure that will help farmers renew their herds by allowing them to defer to 2018 part of the proceeds of their sales of breeding livestock in 2017.

The government also announced the continuation of the tax treatment that currently applies to cash tickets for deliveries of listed grains.

We want to see farm families succeed. That is why we are working so that all family business owners retain the ability to pass on the fruits of their hard work to the next generation.

As stated in the bill, the government plans to cut the tax rate for small businesses, from 10.5% to 9%, by January 1, 2019.

During the consultations, farmers told us about unexpected consequences. The government will not implement the measures related to conversion of income into capital gains.

Farm owners will continue to benefit from the lifetime capital gains exemption on farm property, up to $1 million.

Over the coming year, the government will continue its awareness activities regarding proposals that facilitate the intergenerational transfer of businesses, while maintaining the fairness of the tax system.

Based on comments received during the consultations, the government plans to simplify the proposals related to income distribution. We were told that the proposed measures regarding the lifetime capital gains exemption could have unexpected consequences, particularly by preventing business owners from transferring their business to their children. As a result, the revised measures regarding income distribution, which will be released later this fall, will not contain any measures to limit access to the lifetime capital gains exemption.

Moreover, the government will follow up on the proposals related to passive investments, but will also ensure that farm owners have greater flexibility to allow them to save money for professional and personal reasons, including retirement.

We know that one of the best ways of optimizing return on investment is to help the next generation pursue a career in farming. As it expands, the sector needs more and more talented, dynamic and educated young people.

The government is resolved to help this new generation acquire the skills and support they need to obtain good, well-paid jobs, including in the Canadian agriculture sector.

The future is bright for this dynamic sector, thanks to global growth in the middle class, who want the products our world-class farmers and processors can offer. However, to continue to prosper, the sector must continue to attract young farmers, but many young people have financial barriers to overcome before they can take over the family farm or start their own farm business.

That is why the government, through Farm Credit Canada, has increased its support for young farmers though the loans available to young farmers, by doubling the amount of credit offered, from $500,000 to $1 million.

Farm Credit Canada has also reduced the minimum down payment to 20% of the value of the loan, thus encouraging the purchase and improvement of farm lands and buildings. These are key resources that will help new farmers deal with the considerable expenses required to get into agriculture.

As part of the 2016 youth employment strategy, the Government of Canada created the agricultural youth green jobs initiative, a $5.2-million investment that will help create 145 green jobs for young people in the agricultural industry.

Young farmers also play an important role in the Canadian Agricultural Partnership, a federal-provincial-territorial agreement to invest $3 billion in the advancement of this great industry over the next five years.

The partnership will focus on priorities critical to optimizing the sector's growth potential, including research, innovation, internal competitiveness and trade. The partnership is a solid foundation for the future of our great agricultural sector. It will build on our sound agricultural program, which includes the investments in science and innovation, trade, the environment, transportation and value-added industries announced in the 2017 budget. To stimulate the growth of agrifood trade, the budget set a target of $75 billion in agrifood exports by 2025.

As the House can see, the government fully understands that it is in Canada’s interest to encourage young people to opt for a career in agriculture.

The tax changes we are proposing will not increase tax rates for agricultural businesses. They will have no impact on farmers’ ability to incorporate, invest or pay family members who work on the farm.

Lastly, the government’s goal is to make sure that the next generation of farmers have the tools, resources and support they need to succeed.

The government knows that farmers play a key role in our economy, and we want them to prosper. We are committed to ensuring the vitality of Canada's agriculture and agrifood sector.

Jean-Claude Poissant

Transcript

Government Orders

Discussions (0)