The federal government is proposing the elimination of deferred cash purchase tickets for grain sales — a tool used by farmers to manage cash flow for tax purposes from one year to the next.
When delivering a listed grain (such as wheat, oats, barley, rye, flaxseed, or canola), producers have long had the option of asking a licensed elevator operator to issue a deferred cash purchase ticket, allowing income from the delivery to be reported in the following year.
The proposal outlined in the federal budget last week argues there’s “no longer a clear policy rationale for maintaining the tax deferral” following the end of the Canadian Wheat Board monopoly in 2012.
The Alberta Wheat Commission is warning Ottawa that removing the deferral option will hurt farm incomes.
“I’d hate to lose this tool,” says AWC chair Kevin Auch, in the interview below, noting it’s a simple way to balance wide year-to-year swings in farm income.
Auch joined Kelvin Heppner to discuss the proposed change, the potential impact on the rest of the grain industry, what it means for incorporated farms versus sole proprietorships, and how it might compare to alternative means for managing income taxes paid on grain sales:
The government’s consultation period is set to unfold during seeding season, closing on May 24, 2017. Comments can be submitted to [email protected] Alberta Wheat is also asking farmers to send their input to Erin Gowriluk, AWC’s Policy and Government Relations Manager at [email protected]m.