Last update: 7 January 2025

Background

On January 6, 2025, Prime Minister Justin Trudeau announced he will be stepping down as prime minister once his party chooses a successor. He has prorogued parliament until March 24 while the party goes through a leadership process.

OFA is still seeking clarity on the impact Trudeau’s decision will have on issues of importance to farmers that OFA and CFA have been working on.

What will this mean for Ontario farmers and for agriculture with respect to Advanced Payments Program?

• Last year, the interest-free loan amount available to farmers through the Advanced Payments Program for the 2024 crop year was raised from $100,000 to $250,000 after several temporary increases during the COVID-19 pandemic.
• It is uncertain what the interest-free loan amount for 2025 will look like at this point, but farmers should plan for it to be at the $100,000 level until there is more clarity.
• OFA and CFA have been lobbying to make this increase permanent and OFA will continue its advocacy efforts on this issue.

What will this mean for Ontario farmers and pending tax legislation changes?

• Several tax proposals that have not yet become law, including:
  • Proposed changes to the Alternative Minimum Tax amount
  • Increased Lifetime Capital Gains Exemption from $1 million to $1.25 million
  • Inclusion of eligible farm properties in the Canadian Entrepreneur Incentive
  • Renewal of the Accelerated Investment Incentive
• It is unclear at this point if or how Canada Revenue Agency will proceed with these changes. CRA has announced they intend to enforce the capital gains proposals despite them not being passed into law
• Farmers should check with their accountants and financial professionals for guidance on how these developments may apply to their individual farm businesses.

OFA will continue to monitor these developments and provide updates as they come available, as well as make sure farmer concerns are brought in front of decision-makers as needed.