Farm group applauds tax changes in recent budget

The Canadian Federation of Agriculture says many components of the federal budget will benefit farmers and the agri-food sector.

Among the measures announced, the federation welcomed provisions that support intergenerational farm transfers, investments in Canada’s scientific research and experimental development tax incentive program and efforts to expand pathways to permanent residency, which could help address ongoing labour shortages affecting agricultural employers.

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Canadian Federation of Agriculture president Keith Currie said Canada’s agriculture and agri-food sectors have tremendous potential to drive economic growth, strengthen food security and support communities across the country.

“We are pleased to see the government take steps in Budget 2026 that provide support in key areas like intergenerational family farm transfers,” Currie said.

The federation said these measures are a positive continuation of recent federal initiatives, building on measures such as the Productivity Mega Deduction.

Currie said while the budget signalled Ottawa’s continued recognition of the need to strengthen Canada’s food and agriculture production, there were several priorities for Canadian agriculture that were not addressed.

“While the budget includes measures that continue to move us in the right direction, additional action will be needed to address rising diesel costs and improve Canada’s tax competitiveness relative to major agricultural trading partners,” he said.

“Mitigating the impact of rising costs and continued focus on Canada’s global competitiveness are essential to the resilience of Canadian agriculture as it looks to develop new markets domestically and abroad.”

Currie said the Canadian Federation of Agriculture will continue to review the details of the budget and work with the federal government to ensure the benefits of these measures are realized for Canadian farmers and agricultural businesses.