The OFA welcomes the federal government’s decision to cancel the proposed increase to the capital gains inclusion rate, which would have placed a heavy tax burden on farmers, especially those planning to transfer farms within their families. However, the OFA fully supports raising the Lifetime Capital Gains Exemption (LCGE) to $1.25 million and encourages the government to continue adjusting it to for inflation. This exemption is crucial for farm succession planning, helping families transition their farms to the next generation.
Both the cancellation of the increased capital gains inclusion rate and the increase in the LCGE are a direct result of nearly a year’s worth of advocacy by OFA, CFA and other stakeholders. From the moment the increased capital gains changes were proposed in the 2024 federal budget, OFA has been extremely active in both advocating to government against the increase in capital gains inclusion rate, welcoming the changes in the LCGE and keeping members up to date on the current status of these proposals through member webinars, information on our website and various social media posts and newsletters. This is the result of hard work paying off for farmers and their businesses.
OFA will continue its efforts to work alongside industry partners and stakeholders to collaborate with government to strengthen the food and farming sector, while protecting our ability to grow food, fibre, fuel and flowers right here at home.
https://ofa.on.ca/resources/ofa-letter-to-federal-government-regarding-budget-measures-2024/
https://ofa.on.ca/resources/ofa-letter-to-federal-government-regarding-budget-measures-2024/