By Mark Reusser, Director, Ontario Federation of Agriculture This week, farm leaders from across Canada are gathering in Ottawa for the annual general meeting of the Canadian Federation of Agriculture (CFA). It’s our opportunity once a year to get together as farmers from across the country and share our concerns and priorities on issues that are national in scope – like trade, climate change or soil health to name just a few – in hopes of coming up with solutions that will work for everyone. I farm in Waterloo Region and am a director on the board of the Ontario Federation of Agriculture (OFA). Our organization is an active member in the CFA, and I’ll be one of the delegates participating in that conference in Ottawa. Just like our provinces and regions differ from each other, so does farming in each of those areas; the west is more heavily cattle and field crop-focused, from canola and wheat to peas, lentils and more, whereas eastern Canada is stronger in soybeans, corn, dairy, poultry and fruits and vegetables. Knowing and understanding each other’s differences is key to being able to work together for the greater good of our entire sector, and the opportunity to make those connections face-to-face helps strengthen those relationships. It’s at this meeting that we debate and approve resolutions that will help shape the direction of the CFA’s national advocacy priorities that make up the backbone of outreach activities with federal elected officials, political staff and bureaucrats. That’s also why gathering in Ottawa is strategically important; it’s where decisions on policy that impacts our sector are made and we use this opportunity to not only meet with some of those stakeholders, but also invite them to join us at our convention, whether it’s for a workshop, plenary session or informal social event. This year’s agenda, for example, features speakers from all four major federal political parties, including remarks from the federal minister of agriculture and agri-food, Lawrence MacAulay. Many of us meet with our own Member of Parliament locally, but we don’t often get the opportunity to speak directly with MPs from other regions – or to meet with members of the Senate, who’ve recently started taking on a much more prominent role in shaping Canadian legislation. This is our chance to make a connection and help raise their awareness of the importance of the farming sector to all aspects of Canadian society and our economy. In some ways, you could say that the CFA annual conference is all about the future. For example, joining the OFA at this national meeting this year are five young Eastern Ontario farmers who are actively involved in the industry and building their future in our sector. We’ve invited them to join us so they can see firsthand what the key issues are that affect farm businesses nationwide, how the sector is being proactive in trying to address them, and why advocacy and relationship building is so important. It’s also about addressing the issues that are important to the future of the agriculture sector. Interest rates, inflation and high food costs are top of mind struggles for Canadians currently, and they’re big challenges for farmers too. We also worry about trade agreements; federal policy directions on everything from carbon to plastics reduction; challenges with global and domestic supply chains; or the impact of world events on our export markets and cost of what we call inputs – the items we need to grow crops and raise livestock, like fertilizer or feed ingredients, for example. Other issues are more regional in nature, with drought in the west and urbanization pressures on farmland in the east as just two examples, but ultimately, they all highlight the need for a greater and more coordinated federal focus on agriculture. Our sector is unique – with the right supports, whether financial or legislative, agriculture has solutions that can help address many of society’s biggest challenges, from climate change and carbon sequestration to hunger and food waste reduction. That’s why it’s important that the farm voice is united and present at the national tables where discussions take place and decisions are made. For more information, contact: Tyler Brooks Director of Communications and Stakeholder Relations Ontario Federation of Agriculture 519-821-8883 ext. 218 [email protected]
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By Clint Cameron, Director, Ontario Federation of Agriculture Tax season is coming up and while it’s always important to stay on top of deadlines and new rules, there are changes to three specific federal tax filing requirements that farmers should pay particular attention to for 2024. Underused Housing Tax In 2022, the federal Underused Housing Tax (UHT) Act became law, putting a tax on the value of vacant and underused housing owned either directly or indirectly by people who aren’t Canadian citizens or permanent residents. For the farming sector, the UHT’s onerous annual filing requirements and steep penalties for non-compliance, which ranged from $5,000-$10,000, were a major concern. Following advocacy from the Ontario Federation of Agriculture (OFA) and other organizations, the federal government announced the following proposed changes in its 2023 Fall Economic statement:
The proposed changes, which would apply for the 2023 tax year and beyond, still need to be introduced and passed through legislation in order to come into effect. Key takeaway for farmers: UHT still applies for the 2022 tax year, so any farmers who were required to file a UHT return for 2022 but have not yet done so, should file by April 30, 2024 to avoid penalties and interest. T3 reporting rules for federal trusts The federal government has introduced new reporting requirements for trusts, including those used in farm business and estate planning, that will take effect for taxation years ending after December 30, 2023.
Key takeaway for farmers: Farm businesses who use family trusts to hold private company shares, such as a farm corporation, as well as trusts used for estate planning or holding personal-use assets must now file an annual T3 return. Not sure if these rules apply to your farm? Consult a professional who is knowledgeable in farm trusts; filing unnecessarily can complicate estate planning and impose unintended legal and financial challenges. Electronic filing for HST returns becomes mandatory The Canada Revenue Agency (CRA) has implementing new electronic filing requirements for GST/HST returns starting in 2024 for anyone with a GST or HST number, with the exception of charities and a few listed financial institutions. For CRA purposes, electronic filing options include:
Key takeaway for farmers: for those without access to a computer or a reliable Internet connection, filing by phone using GST/HST TELEFILE is a valid electronic filing option. It can be a bit overwhelming to keep on top of the evolving tax landscape, so OFA has put together an easy-to-follow fact sheet that summarizes these key changes and where to go for more information. It’s downloadable on the OFA website. In addition to farming and running a business that offers services to farmers, I have also spent a large part of my career in the corporate world. So I’m no stranger to the paperwork that comes with being in business. Here are a few tips to make things easier at tax time:
For more information, contact: Tyler Brooks Director of Communications and Stakeholder Relations Ontario Federation of Agriculture 519-821-8883 ext. 218 [email protected] By Sara Wood, Vice President, Ontario Federation of Agriculture For any business owner, planning for the future involves serious decision-making about what will happen to the business. Whether transition to a next generation family member or sale to a new owner, the process requires careful thought and planning. For farmers, business transition or farm succession planning comes with some added layers of complexity. Most farmers live where they work, so it’s also about the family home, and in the case of a farm that’s been in the same family for multiple generations, an emotional attachment to the land and to family history can also be at play. It’s a daunting task, making it tough to know where to start and let’s be honest – most of us are uncomfortable facing the thought of our own mortality and of handing over control of what we’ve built to someone else. That’s why the Ontario Federation of Agriculture (OFA) has teamed up with Farm Life Financial again this year to offer a Financial Literacy and Farm Succession Planning Roadshow for farmers with seven in-person education days across southern, central and eastern Ontario, as well as a virtual session. It’s a topic near and dear to my heart – having gone through a farm family succession process, I know firsthand how important it is, how hard it can be, and why proper planning is essential to keeping both the business going and the family together. My husband and I farm west of Stratford near the town of Mitchell where we raise broiler chickens and grow crops. We’ve taken over the day-to-day farm operations from my parents, but my mom is still involved in the business as an advisor and helps out when my other activities, like being a Vice President with the OFA, take me away from the farm. Our transition process started when my mom heard a presentation by a succession planning specialist in the U.S. who suggested farmers have to decide whether they are a business-first family or a family-first business. This means focusing on the future with a solid plan versus relying on tradition and assumption and hoping for the best. Together and individually, our family met with lawyers and accountants to figure out what our long-term vision and goals were for the farm; for my parents it was about the legacy of what they had built and for us as the next generation, it was about what we wanted to accomplish. This helped us build a solid plan that has served us well and although our son is only six, we are already thinking about what a future on the farm might look like for him – and how we might handle another transition if he decides farming isn’t where his heart lies. For the older generation of farmers looking to retirement, start your conversations early with both your kids who want to farm and those who don’t, and have a vision of how you want to see the future of the farm and how involved you want to continue to be in decision-making. Don’t just leave things in the will and hope for the best. The younger generation has to be willing to listen and come into the process with open ears and minds. Although you may have big plans for the future and how you want to put your stamp on the family business, you should respect that you’re taking over a legacy and the first cheque you write every year should be to the people who’ve made it possible for you to farm. Above all, both generations have to be flexible and willing to embrace change – and a certain amount of creativity may be needed to pull it all off. Succession plans take time, and they are emotional. As farmers, much of our identity is wrapped up in what we do and where we live, and it can be hard to think about a life that doesn’t involve running the farm. That’s why I believe it’s important to look to transition planning specialists for help and workshops like the OFA roadshow can be a great opportunity to start thinking about the process. More information on workshop dates and locations is available at ofa.on.ca. For more information, contact: Tyler Brooks Director of Communications and Stakeholder Relations Ontario Federation of Agriculture 519-821-8883 ext. 218 [email protected] By Drew Spoelstra, President, Ontario Federation of Agriculture Much is always made of the high average age of Canadian farmers, but there’s a quiet shift happening in agriculture that is changing the face of our industry. Quite literally, farming is in transition – and I’m one of many farmers right in the middle of it. Family farms are still a huge part of what Ontario agriculture looks like, but like so many Canadians, a growing number of farmers are facing retirement. That means they’re now following succession plans to turn the management and ownership of their farm businesses over to a new generation. That’s exactly the situation that I find myself in. I’m 37 and I’ve been involved in our family dairy and grain farm my entire life. My wife and I and my parents have recently worked through our farm business transition plans as we look to set our family farm up for a better future. Farm succession is an onerous and challenging task, but one that is absolutely necessary for the sustainability of farm businesses as many farmers enter the later stages of their careers. With a plan in place, we can now make investments – like a state-of-the-art dairy barn – that we hope will help make it possible for our young daughters to farm when they grow up if that’s what they’d like to do. My family is also reflective of another new reality for many farmers and that’s farming close to an urban area. Our farm is near the town of Binbrook in a rural part of the City of Hamilton and while that brings opportunities, it also often means that the needs of farm businesses get lost in the larger urban issues that dominate the agendas of local decision-makers. In addition to farming, I’m also heavily involved with the Ontario Federation of Agriculture (OFA). I believe it’s important to give back to the industry that sustains us, and late last fall, I became the youngest OFA president in the organization’s history. What you see in me is a lot of what you’ll see across agriculture in Ontario now – older farmers following succession plans and a next generation stepping up with visions for the future of their farm businesses and in some cases, also the broader farming sector. You’ll also see that reflected in a growing number of my fellow OFA board members and in the leadership of other agricultural organizations where a new, young generation of farmers is starting to take an active role in representing their industry and helping to shape its future for the decades to come. Agriculture’s next generation is bringing fresh ideas and raising different perspectives on everything from sustainability and climate change to public trust, mental health and wellness and more. We look forward with optimism and while we are making investments in the future of our businesses and our industry, it’s a road we can’t go alone. We need to know that Canadians see benefit in strong farms and rural communities, value a local food supply system that brings the sustainability and environmental stewardship benefits that farms provide, and support us by buying local. And to meet the ambitious goals of the province’s Grow Ontario strategy and to protect our future ability to continue to produce as much food, fuel and fibre right here at home, we also need government to step forward and support our sector. That support can come in various ways, whether through sound, forward-thinking policies and legislation or with financial investments into much-needed infrastructure, resources and programming that will support farming’s long-term sustainability and profitability. We’ve brought some of these ideas directly to government by participating in the provincial budget consultations that are currently happening across Ontario: Supporting home grown food production by encouraging government and public sector agencies to buy more local food and beverages, increasing funding to the provincial Risk Management Program that helps farmers manage uncertainty, and addressing the agri-food sector’s chronic labour shortages. Modernizing farm tax programs and development charges to support continued farm business transition, growth and expansion. Investing in rural and social infrastructure, such as rural roads and bridges, affordable energy and high-speed broadband, and education, healthcare and community hubs for rural communities. Improving soil health and water stewardship by continuing funding for the Ontario Agricultural Soil Health and Conservation Strategy and the Ontario Drinking Water Stewardship Program. Strengthening Ontario’s veterinary sector by investigating additional short- and long-term strategies to help solve the lack of veterinary capacity in Ontario. Agriculture has a long, proud history in Ontario and I’m excited be part of shaping its next chapters. For more information, contact: Tyler Brooks Director of Communications and Stakeholder Relations Ontario Federation of Agriculture 519-821-8883 ext. 218 [email protected] |
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