Budget 2024 Falls Short of Providing Critical Investments for Grain Farmer

OTTAWA — Grain Growers of Canada (GGC) expressed their disappointment in several policy areas missed in Budget 2024. These include an extension to the extended rail interswitching pilot, investments in trade-enabling infrastructure, investments in grain-related research and development, initiating a review of the Canada Grains Act, and revamping the Accelerated Investment Incentive.

“Budget 2024 misses the mark in recognizing the importance of expanding food production in Canada and supporting the profitability of grain farmers,” began Kyle Larkin, Executive Director of GGC. “One of the best ways to support the sector is through plant breeding innovation something the budget fails to address.”

International customers of Canadian grains are continuously seeking for predictability in Canada’s deliveries. However, transportation and supply-chain disruptions over the past years have impacted the confidence of some of the country’s largest trading partners.

“Canada is in dire need of major investments in trade-enabling infrastructure, many of which were laid out by the government’s supply-chain taskforce. This includes removing pressure points and increasing port capacity and fluidity, particularly in Vancouver,” continued Larkin.

The Canada Grains Act has also not been updated for decades and does not fully serve the 21^st century grain farmer. For example, canola producers are unable to receive a second opinion from the Canadian Grain Commission at canola crushing facilities, something that is available to them at grain elevators.

“The Canada Grains Act is the enabling legislation that supports grain farmers and needs to be modernized to reflect the realities of 2024. Furthermore, allowing the Accelerated Investment Incentive to phase out, which offers bonus depreciation to growers, limits the ability of grain producers to purchase the most efficient and environmentally friendly equipment on the market,” said Larkin.

Budget 2024 proposes some support for biofuel production, reiterates the increased interest-free portion of the Advanced Payments Program, and increases the lifetime capital gains exemption for farming property to $1.25 million. However, the budget also repeats a commitment from Budget 2023 that relates to right to repair and interoperability.

“Grain farmers have been waiting patiently since Budget 2023 for a consultation on right to repair and interoperability for farm equipment. Unfortunately, this budget has shortcomings in key policy priorities for farmers, such as infrastructure, innovation, tax incentives, and delays in other policy areas,” concluded Larkin.