The agriculture industry feels left out of the federal budget.
Asked for comment, an official of the Grain Growers Association said the budget reflected a low priority on agriculture.
Why?
Agriculture was only mentioned six times in the 416-page document.
“Cautious optimism’’ was expressed by the beef producers association.
One of the most important features for agriculture was increasing the lifetime capital gains exemption on sale of the farms and businesses. The exemption has been lifted by 25 pet cent to $1.25 million.
That will save farmers taxes and make transfer to the next generation less difficult.
A special exemption on capital gains for founders of small business will benefit some.
Livestock producers are happy about the government acknowledgement of the need for livestock sales tax deferrals for natural disasters.
Grain growers get a shot in the arm with $500 million invested by the Canada Infrastructure Bank to build out biofuel production and $500 million a year from the Clean Fuels Fund to support the biofuel industry.
Farmers will benefit from the rebates of $2.5 billion carbon tax to small businesses with less than 500 employees that was promised five years ago.
Farmers can also increase the annual interest-free cash advance loan to $350,000 from $100,000. That is a long awaited change in financing operating costs.
Legislation has again been promised to allow inter-operability of different farm machinery brands. Computer codes prevent using different brands with ease.
The unique operating systems frustrate farmers using various brands and damages sales of independent implement makers.
And $200 million has been allocated to develop artificial intelligence and robotic technology for agriculture.
Farm Credit Canada, Export Development Canada and Crown corporations will be asked to take greater risks to support agriculture.
The impact of a national school lunch provides price support for farm grown commodities.
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Saskatchewan Premier Scott Moe’s (first reaction) to the federal budget was that there is absolutely no plan to eliminate the deficit, considering five of the last Saskatchewan budgets showed deficits.
Alberta is the only province with a surplus this year. Deficits by all the provinces this year amount to $24.1 billion
Some wonder why voters put up with continual deficits.
First, some people want the programs funded by deficits. And it is possible voters are so accustomed to using credit cards and paying later they just don’t care?
Ron Walter can be reached at [email protected]
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
