Senator Gold, yesterday I had a meeting with the Grain Growers of Canada — the national voice for over 65,000 grain growers and pulse producers — and grain farmers from Alberta and Saskatchewan in order to discuss the impacts of the proposed increase to the capital gains inclusion rate. Apparently, the government hinted that this increase would be in Budget 2024, but we know it’s not there. However, the government is now indicating that they will be introducing stand‑alone legislation, possibly before the summer recess, to increase the capital gains tax.

The Grain Growers of Canada’s recent research shows that this policy will cause the average family farm to pay 30% more in taxes during ownership and transition — intergenerational or otherwise. For example, an 800-acre farm in Ontario will see an increase in taxation by almost $1.2 million.

This policy has already caused many snap sales of farms across the country before such legislation is introduced because our farmers are concerned.

Senator Gold, is the government fully aware of the negative effects that the increase to the capital gains tax will cause farm families across this country?

Senator Gold, to protect Canadian farmers, ranchers and producers of this generation and the next, will the government consider exempting family farms by allowing intergenerational transfers to be exempt from the higher capital gains inclusion tax rate? Thank you.