Act now – tell MPs that farmers won’t stand for proposed tax changes (2017)

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 1, 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.

Visit 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
Ontario Federation of Agriculture

Neil Currie
General Manager
Ontario Federation of Agriculture


Robert Jakeman says on September 15, 2017 at 4:02 PM

Tax changes will weaken the ability for transitioning to next generation. It may hasten a collapse of farm values as farmers sell to pay succession taxes.

Phil Bye says on September 15, 2017 at 6:53 PM

Two comments: 1. My wife and I farm 600 acres and run a beef and grain operation. We have children who are active in the operation and are planning on taking over. These proposed changes will IMPACT in a negative way our succession planning strategies. We are opposed to the way this is being rolled out. 2. There needs to be more time for consultation and input from affected sectors.

Maura and James Romanelli says on September 15, 2017 at 8:51 PM

We are sick and tired that the government Can not seem to balance their books so they take advantage of innocent hard working Farmers that work their entire life to leave something to their families. The Ontario and federal governments are spending so much money on programs they can not afford and as a result they are looking for any money grab they can get their hands on at the expense of our rights. We are sick of government that are not working in our best interests. Thankyou

Rosey Bourne says on September 18, 2017 at 9:05 PM

It is harmful to put thru a change to a small sector of rate payers when the entire income tax needs reform. This is irresponsible legislature.

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