Federal economic statement offers little for agriculture

Glacier FarmMedia – Agriculture mentions were light as the federal government unveiled its 2023 Fall Economic Statement Nov. 21.

A search of the 141-page document for the term “agriculture” revealed only a handful of results.

One of the few sections of interest for farmers referred to the use of waste biomass to generate electricity and heat.

The economic statement says that “during the course of production, industries like forestry and agriculture generate organic byproducts, such as leftover wood chips and crop residues, which have the potential to be used to generate affordable energy while also reducing emissions.”

Underused housing tax

In the statement the federal government has proposed changes to the Underused Housing Tax (UHT) that would remove the onerous filing requirements for farm corporations and farm partnerships that own more than one residence. Non-filing penalties will also be reduced.

Ontario Federation of Agriculture (OFA) president Drew Spoelstra said in a release, “Although most farmers would have been exempt from paying any actual tax, the filing of a UHT return is administratively burdensome,” he said.

The proposed changes still need to be introduced and passed through legislation in order to come into effect. If legislation is passed, farm corporations and partnerships that are deemed to be Canadian owned will also be exempt from filing a UHT return starting with the 2023 tax year. The penalties for failure to file a UHT return would also be reduced to $1,000 for an individual and $2,000 for a corporation form their current levels of $5,000 and $10,000 respectively, according to the OFA statement.

Tax credits expanded

The economic statement proposed greater eligibility for the 30 per cent Clean Technology investment tax credit, which could play into the future of the biofuel market.

“This expansion … would be available to businesses investing in eligible property that is acquired and becomes available for use on or after the date of the 2023 Fall Economic Statement,” the document read.

Another tax credit expansion would see wider eligibility for the 15 per cent Clean Electricity investment tax credit, to include systems that produce electricity or a mix of electricity and heat from waste biomass. That tax break would be available as of the date of Budget 2024 for projects that did not begin construction before March 28, 2023.

– Jeff Melchior is a reporter with the Alberta Farmer Express, with files from Farmtario staff