While the OFA continues to have serious concerns about the increase to the capital gains inclusion rate, we are pleased that the federal government has responded to our feedback and made changes that will allow Ontario farmers to access the Canadian Entrepreneurs’ Incentive. This expansion of eligibility is crucial for ensuring the incentive can apply to all farmers who own qualified farm property regardless of their business structure. These adjustments will make it more accessible to the farming community, better supporting farm succession planning and the continuity of family farms in Canada.

We further welcome the federal government’s increase to the Lifetime Capital Gains Exemption, which provides much-needed relief for farmers during the transfer of farm assets and will help facilitate smoother transitions from one generation of farmers to the next.