Click OFA Commentary: September 14, 2017
Act now – tell MPs that farmers won’t stand for proposed tax changes
By Mark Wales, Director, Ontario Federation of Agriculture
 
Incorporated farm businesses in Ontario are facing devastating tax implications if the federal government approves proposed changes to the private corporation tax system. About 25% of farm businesses in Ontario and Canada are incorporated, and could be hit with a hike in accounting and succession planning fees, and severe limitations on farm transfer options to the next generation.
The implications of the proposed tax changes could be damaging to farm businesses across the country.  Many farms, including incorporated farms, are passed down from generation to generation Incorporation is a way of structuring a business that many farmers and small business owners across Canada have decided makes sense for their business. But the term ‘corporate’ has no bearing on the size or type of farm. Incorporated farm businesses in Canada are mostly family owned and operated. Incorporation of any farm is a serious business decision that often comes with increased complexity and fees from advisors such as accountants and lawyers. One of the primary reasons businesses choose to incorporate is to limit their liability and protect their personal assets such as their home. Incorporation can also play a key role in passing the family farm business down to the next generation and ensure the continuity of the business. That’s why Ontario and Canadian farmers aren’t taking the proposed changes lightly.
Consultations on the tax changes are only open until October 2 with implementation scheduled for January, 2018. This aggressive schedule immediately undoes a generation or more of succession planning and requires quick decisions to be made that will significantly affect future generations. The Ontario Federation of Agriculture (OFA) is asking all farmers – especially those with incorporated farm businesses who will be impacted by these proposed changes – to talk to their MP about the serious implications to primary agriculture and farmers across Canada.
We have to act now. And OFA is making it easy to speak up and tell our elected officials that Canadian farm businesses won’t stand for this drastic overhaul of the private corporation tax system that would add complexity and uncertainty to any farmer with an incorporated farm business. Visitactnow.ofa.on.ca to speak up and send a letter to your MP letting them know the changes will be devastating to your farm and farmers across Ontario and Canada. We need to act now, consultations are only open for a few more weeks and if approved, these changes will go into effect on January 1, 2018.
The federal government needs to understand the consequences of these proposed tax changes and the impacts they could have to farmers, farm families, rural communities and our agri-food industry are simply unacceptable.

 
 
For more information, contact:
 
Mark Wales
Director
Ontario Federation of Agriculture
519-773-6706

Neil Currie
General Manager
Ontario Federation of Agriculture
519-821-8883
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By Brent Royce, Director, Ontario Federation of Agriculture
 
September in Ontario kicks off another kind of harvest – the season that combines social and business at Canada’s Outdoor Farm Show (COFS) and the International Plowing Match (IPM) & Rural Expo. The two shows promise to make for a busy few weeks for Ontario farmers, the ag industry, show organizers and the Ontario Federation of Agriculture (OFA).
 
OFA has a long history of member connection and outreach. Our organization was founded to represent our farming members and that’s why our elected directors and staff can be found at just about every farm show and agricultural event throughout the year across the province. Just like our fellow farmers, OFA representatives attend COFS and IPM events where we meet with OFA members to discuss issues, concerns and opportunities – including the challenges of operating a sustainable farm business in today’s economy and regulatory requirements, legislative activities and regional federation concerns.
 
Grassroots connections are a cornerstone of OFA and farm shows are one of our key opportunities to check in with members. OFA members and COFS visitors can find OFA at Federation House, September 12-14. OFA staff and directors will be on hand with some of our OFA benefit partners, and look forward to catching up with show attendees.
 
This year’s IPM is in Walton, ON and marks the 100th plowing match in Ontario. The event’s tagline – Celebrate Farm, Family and Fun – aligns perfectly with OFA’s commitment to serve our farm members. OFA is partnering with the Huron Federation of Agriculture at the event, so be sure to stop by the OFA display at this event September 19-23. 
 
Fall also marks the return of the provincial legislature, and OFA is busy with ongoing advocacy campaigns for public investment in Ontario agriculture and our rural communities, and kicking off our 2018 provincial election platforms. We look forward to checking in on all these matters and more with our members at the shows this fall, and events throughout the season. See you in the field.
 

 
For more information, contact:
 
Brent Royce
Director
Ontario Federation of Agriculture
519-291-8279

Neil Currie
General Manager
Ontario Federation of Agriculture
519-821-8883