Morning, Grower.

Here’s what we got for you today:

• 🏛️ How Trudeau’s Exit Affects Ontario Farmers: Financial and Tax Implications

• 🧑‍🌾 Opportunities for Ontario Farmers: Youth Employment Program Returns

• 💵 OFA's 2025 Ontario Budget Recommendations

💰 Funding

Youth Employment and Skills Program (YESP) — see more on YESP below!

The Cybersecurity Preparedness Initiative — launched by Ontario's Ministry of Agriculture, Food and Rural Affairs, offers up to $50,000 in funding to agricultural marketing boards for cybersecurity enhancements. Applications are due January 20, 2025

You must be one of the following:

• a local board under the Farm Products Marketing Act

• a marketing board under the Milk Act

• a representative association under Section 12 of the Farm Products Marketing Act

• the association under the Beef Cattle Marketing Act

Dairy Processing Modernization Initiative — provides cost-share support to dairy processors for equipment upgrades that create or increase processing efficiencies and/or improve food safety. Recipients are eligible for 50% of eligible costs up to a maximum of $200,000 in funding. The initiative is in high demand and is close to 90% subscribed.

How Trudeau’s Exit Affects Ontario Farmers: Financial and Tax Implications

Prime Minister Justin Trudeau's resignation on January 6, 2025, and the subsequent prorogation of Parliament until March 24 have introduced uncertainties for Ontario farmers regarding several pending financial legislations and programs.

Changes to the Advanced Payments Program (APP)

The APP is a program that helps farmers manage cash flow by offering interest-free loans. In 2024, the loan limit increased from $100,000 to $250,000, thanks to temporary measures introduced during the pandemic. This was a big help to farmers, giving them more breathing room to invest in their operations.

However, it’s unclear if this higher limit will remain in 2025. With political decisions delayed, there’s a chance the loan limit could go back down to $100,000. This uncertainty makes it harder for farmers to plan their finances.

What Farmers Can Do:

1. Plan Conservatively: Assume the lower $100,000 limit might return and adjust your cash flow plans accordingly.

2. Advocate for Continuation: Support efforts by the Ontario Federation of Agriculture (OFA) and the Canadian Federation of Agriculture (CFA) as they push to make the $250,000 limit permanent.

3. Explore Alternative Financing: Speak to financial advisors or banks about other loan options in case the higher limit is not renewed.

Pending Tax Changes That Could Impact Farmers

Several tax changes were proposed but not yet finalized. These include:

• Alternative Minimum Tax Adjustments: Changes that could affect how much tax you owe, especially for larger farm operations.

• Lifetime Capital Gains Exemption: An increase from $1 million to $1.25 million, which would make it easier to transfer farms to the next generation without heavy tax burdens.

• Canadian Entrepreneur Incentive: Adding farm properties to this program could bring additional tax benefits.

• Accelerated Investment Incentive: This program, which allows farmers to write off equipment and infrastructure costs more quickly, is up for renewal.

While these changes could benefit farmers, they’re currently stalled. The Canada Revenue Agency (CRA) has indicated it may start enforcing some capital gains tax changes even before they’re formally approved, which adds to the uncertainty.

What Farmers Can Do:

1. Consult Experts: Meet with accountants and tax advisors to understand how these potential changes might affect your farm.

2. Plan for Uncertainty: Adjust your financial plans conservatively, anticipating potential reductions in support programs.

3. Monitor Updates: Keep up with updates from farming organizations and stay subscribed to Ontario Grower for relevant news.

4. Advocate for Fair Policies: Join local farming groups to amplify the message that these changes are vital for the sustainability of agriculture in Canada.

By taking these steps, Ontario farmers can better prepare for the uncertainties ahead and ensure their voices are heard during this political transition.

Opportunities for Ontario Farmers: Youth Employment Program

The Government of Canada has announced that the Youth Employment and Skills Program (YESP) applications will open on January 27, 2025. Supported by an investment of approximately $13.5 million, YESP aims to help young Canadians access employment opportunities and gain valuable work experience in the agricultural sector, while contributing to the growth of the agricultural community in Canada.

The agriculture and agri-food sector is a major contributor to the Canadian economy. This funding will help address some pressing labour issues the sector faces by supporting approximately 1,200 jobs and fostering the next generation of agriculture and agri-food workers. Eligible applicants include producers, agri-businesses, industry associations, provincial and territorial governments, Indigenous organizations, and research facilities.

The YESP offers support for up to 50% of the cost of salaries and benefits, up to a maximum of $14,000, to agriculture and agri-food employers hiring Canadian youth. Employers that hire youth facing employment barriers will be eligible for up to 80% of the cost of salaries and benefits.

Since its inception in 2019, the YESP has employed approximately 6,200 youth in agricultural-related organizations across every province and territory, including nearly 2,000 youth facing barriers.

Applications will be accepted from January 27 to February 24, 2025. Farmers and agricultural employers in Ontario and across Canada are encouraged to apply to benefit from this program, which not only addresses labour shortages but also invests in the future workforce of the agricultural sector.

Government of Canada Release

OFA's 2025 Ontario Budget Recommendations

OFA provided comments to the provincial government regarding the 2025 budget and recommended the following investments:

1. Increase Risk Management Program funding by $100 million annually.

2. Tackle Agricultural Labour Shortages

3. Introduce a Wildlife Damage Compensation Program for crop producers.

4. Invest $1.6 million annually for the Veterinary Assistance Program (VAP) and $480 million annually to operate and maintain provincial and municipal veterinary clinics.

5. Develop clear public sector procurement guidelines to prioritize Ontario-grown food.

6. Maintain funding to implement the Ontario Agricultural Soil Health and Conservation Strategy.

7. Invest $1.5 Billion in Rural and Social Infrastructure.

8. Increase annual Ontario Municipal Partnership Fund (OMPF) funding to $875 million annually.

9. Expand the Rural Economic Development (RED) Program to $8 million in annual funding.

10. Allocate $10 million for commercial truck driver training subsidies and $3 million for insurance assistance.

Source: OFA

🌱 Seedling Reports

EVENT 2025 Eastern Ontario Crop Conference — Join farmers, experts, and industry leaders for a full day of learning and networking on Tue, Jan 21, 2025 in Kemptville. Registration closes on January 13, 2025 (today). Covering the latest in crop production, research, and innovation, this is the must-attend event for Eastern Ontario’s agricultural community.

The Agri-Food Immigration Pilot — The pilot will accept only 1,010 permanent residence applications in 2025, with the program concluding on May 14, 2025. Applications are open until this date or until the cap is reached, whichever comes first. Eligible candidates should apply promptly to secure one of the limited spots.

EVENT 2025 March Classic — Hosted by Grain Farmers of Ontario on March 18 at RBC Place in London, Ontario, The 2025 March Classic will celebrate 15 years of agricultural leadership by exploring future opportunities and challenges for Ontario grain farmers.

EVENT Guelph Organic Conference — The 44th annual Guelph Organic Conference, held January 22-25, 2025, at the University of Guelph, will feature workshops, an organic trade show, and sessions on organic farming trends, fostering innovation and growth in the organic sector.

Micro-Laughs

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