Some Wins for Ag in Federal Budget, but Concerns Too: GGC

Grain Growers of Canada (GGC) is welcoming several targeted wins for farmers in the federal government’s 2025 budget — notably the permanent reversal of the capital gains tax increase — while warning that other measures could weaken the sector’s competitiveness. 

“Budget 2025 acknowledged the impact that the capital gains tax increase would have had on family-run grain farms across Canada by permanently reversing it,” Kyle Larkin, Executive Director of GGC, said in a statement Tuesday, following the budget’s release. 

“This will ensure that family farms can continue their succession planning with certainty and that the next generation of farmers does not pay millions of dollars more in taxes.” 

The reversal represents a major victory for farm families concerned about intergenerational transfer costs. But GGC cautioned that while the move provides clarity and relief, broader challenges for the ag industry remain — especially around trade, infrastructure, and rail competitiveness. 

The budget introduced several trade-focused measures to help farmers respond to trade disruptions. Among them are the creation of a Strategic Exports Office and additional funding for the Canadian Food Inspection Agency to modernize digital trade tools and safeguard market access. 

“I’m seeing first-hand how trade uncertainty is impacting grain farmers across the country,” said Scott Hepworth, Chair of Grain Growers of Canada and a grain farmer from Saskatchewan. “With challenges in the U.S. and tariffs in China, producers are under real pressure. The new investments in digital export tools and market diversification are positive steps. We need every tool available to keep grain moving, find new customers, and protect our bottom line in an unpredictable global environment.”