Little mention of agrifood in federal Fall Economic Statement

  • National Newswatch

Capital cost allowance provision welcomed

Ottawa-While it runs more than 250 pages, the federal Fall Economic Statement (FES) contained little reference to agriculture and will probably be best remembered for being part of the circus surrounding Chrystia Freeland’s resignation.

It did mention briefly proposed regular legislative reviews of the Farm Credit Canada Act to ensure it remains aligned with the needs of the agriculture and agrifood sector. Carbon border adjustments, currently under study by the Commons agriculture committee, will be getting some attention and changes are coming to the federal Carbon Rebate Rural Supplement. Agriculture Canada has set up an AI chatbot, called AgPal Chat, to provide information to farmers and agribusinesses on more than 400 agriculture and agrifood programs and services.

The Canadian Federation of Agriculture said that while the FES did not include many new initiatives, it was pleased to see the government “proposes to reintroduce the Accelerated Investment Incentive, which provides an enhanced first-year capital cost allowance for most depreciable capital property. Reinstatement of this initiative, which provides an incentive for farmers to upgrade their equipment and machinery, has been a CFA priority since the government announced that it would begin phasing it out in 2024.”

The FES was a big disappointment for the Fruit and Vegetable Growers of Canada (FVGC) because it did not address the urgent challenges impacting food security and the fruit and vegetable sector. “At a time when 8.7 million Canadians live in food-insecure households and food bank visits have surged by 90 per cent since 2019, bold action is needed. FVGC urges the government to prioritize food security by viewing policy decisions through a food lens, ensuring that all measures support the availability, quality, and diversity of domestically grown food.”

The FES “was a missed opportunity to address the real challenges facing Canadian growers and food security,” said FVGC President Marcus Janzen. Pragmatic solutions, like the Senate’s recent adoption of a bill to provide “financial protection for fruit and vegetable growers in cases of buyer insolvency, is a clear example of effective action. By implementing similarly practical solutions, we can reduce costs, strengthen domestic production, and ensure Canadian-grown food remains accessible to families across the country.”

FVGC has identified key priorities where government action is urgently required. Without quick improvements to labour programs, growers will struggle to harvest perishable crops—reducing food diversity, driving up prices, and limiting access to homegrown fruits and vegetables. Streamlining the Temporary Foreign Worker Program and the Seasonal Agricultural Worker Program is essential to ensure growers have the workers they need, with improved flexibility, processing times, and coordination to meet operational realities.

Rising input costs erode competitiveness, particularly as global competitors receive targeted support. Investments in climate adaptation, energy efficiency and sustainability measures are needed to ensure Canadian produce growers remain competitive, reducing reliance on imports and safeguarding food sovereignty.

Growers also face challenges accessing urgently needed tools to manage pests and diseases effectively. Increasing funding for the Pest Management Centre and the Pest Management Regulatory Agency will expedite approvals, protecting yields and maintaining a stable, secure food supply.

Without immediate action, Canada faces increased reliance on imported food, higher costs for families, fewer Canadian-grown options and the continued loss of family farms and rural jobs.

Grain Growers of Canada is concerned the FES did not address the expiring 18-month extended railway interswitching pilot. It was originally launched in September 2023 and will be expiring in March 2025 without an extension. GGC is continuing to advocate for a 30-month extension to the original 18-month pilot to realize the full benefits of extended interswitching. This is a proven tool in introducing competitive market forces in Canada’s rail system, benefiting producers by getting their grain moved more efficiently and on time. Allowing the pilot to expire in the new year would be a major step backwards in promoting fair competition, reducing transportation costs and increasing access for Canadian goods.

Dave Carey, VP of Government and Industry Relations of Canadian Canola Growers Association, said the FES missed the mark for 40,000 canola farmers. While some elements such as the reinstatement of the Accelerated Investment Incentive could benefit farmers, the FES lacked strategic focus and significant action for farmers or agriculture in general. In addition to an extension of the extended interswitching pilot project, there should have been an exemption for intergenerational farm transfers from the capital gains inclusion rate tax increase and efforts to simplify the tax code as well as a strategic focus on building and enhancing railways, bridges, roads, and ports and policies that promote free, rules-based trade.

This news report prepared for National Newswatch