Poll: Do You Use Deferred Cash Tickets To Manage Taxes?

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.

Kevin Auch

“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]

 

RealAgriculture News Team

A team effort of RealAgriculture's videographers and editorial staff to make sure that you have the latest in what is happening in agriculture.

Trending

Related

4 Comments

Trevor Sletten

It’s not just a matter of cash flow. It’s being able to sell our commodities at the right time and price, because we sell our grains at wholesale prices. However, we may not want that cash ticket until next year, when the prices may not be favourable to sell much grain.

Reply
Wayne Haag

Why is that any tool that is useful for us as farmers to stay competitive and viable always under attack. There isn’t the same concern paid to the cost of the inputs that we use to produce the crops. As farmers it should be our decision , not some brain less bureaucrat who hasn’t got a clue of the ramifications to our industry. Grain deferral is a very useful tool, to take advantage of peaks in the market, tax strategy , income management .

Reply
paul heglund

Removal of the cash deferment program would heavily limit my marketing options. I think it is a ploy to force all of us to incorporate.

Reply
Ronald leiren

Another example of urban people having no idea of how difficult it is to make a profit on the farm or year to year we have to fight the weather as well as the beurocrats in ottawa

Reply

Leave a Reply