The Fall Economic Statement (FES) had the opportunity to help canola farmers continue to grow for Canada. Canada’s 40,000 canola farmers are the backbone of the canola industry, contributing $43.7 billion to the Canadian economy annually and supporting 206,000 Canadian jobs. In 2023 alone, exports were valued at $15.8 billion, making Canada the #1 exporter of canola in the world.
But, it missed the mark for Canadian canola farmers.
While some elements such as the reinstatement of the Accelerated Investment Incentive could benefit farmers, the FES lacked strategic focus and significant action for farmers or agriculture in general.
For the FES to support Canadian canola farmers, it should have included the following:
- An extension of the extended interswitching pilot project in the Prairies. An extension would allow shippers to continue to use this important tool to inject competition in our class 1 railways, support cash flow for farmers, enable Canada’s reputation as a reliable supplier, and account for the grain industry's seasonality and contracting timelines. It would also provide for a more accurate dataset for the pilot. This measure would have created some degree of competition and would have been at no cost to the government.
- An exemption for intergenerational farm transfers from the capital gains inclusion rate tax increase and efforts to simplify the tax code.
- A strategic focus on building and enhancing railways, bridges, roads, and ports the canola sector needs to meet the exports of today and into the future to remain competitive.
Policies that promote free, rules-based trade. Canola farmers rely on rules-based, predictable trade for their livelihoods – 90% of Canadian canola is exported. Canada cannot afford more protectionist domestic measures, and more.
“Canola farmers are significant contributors to Canada’s economy and communities. The FES was a lost opportunity to bring forward significant actions that will enable them to remain competitive and successful amidst rising costs, disruptive supply chains, and an extremely volatile trading environment.” – Dave Carey, VP of Government and Industry Relations