Shake my head

[Braveheart]

I'm guessing the reason for mentioning the CWB is that some farmers, that could afford to, would deliver wheat to the Board, but defer the sale if they thought next year's pool would provide higher returns. I knew a few durum growers that did well using this approach.

Regardless, this move by the gov't could prove costly for farmers that had started down the deferral road years ago. Once started, it became the norm.

Cattle producers haven't been able to do it for years now.

[farmaholic]

Wasn't the problem with the deferred cattle cheque because it was the auction mart issuing the cheque and not the actual "Buyer". When we still had cattle we had so sign some sort of declaration (or something) when we wanted our cheque deferred.

[Braveheart]

Farmaholic, I believe you're right on the cattle. There may also have been issues with surety of payment of deferred cattle cheques.

[farmaholic]

vvalk....the reasons I posted to leave things as is are sound rational ideas. People expect us to operate and manage our business when our business is almost like no other! Powerless, price takers, weather dependant, can't even support staffing requirements of usual business structure. ...management structure and we're expected to do as much of everything else as possible because there isn't enough money to pay someone else for everything that needs to get(or be) done(Jack of all trades master of his own {farmer} mentality).

[SASKFARMER3]

Its almost time to pack up the Truck and move to Beverly hills. What a useless country canada is becoming. I would rather bet on Trump and USA over the shit that goes down here.

Every day i wonder how much longer farmers can make a go of it in Canada. Every day we get creamed. Prov budget took a few more dollars a acre just like that.

Sick

[Braveheart]

The other thing the gov't should consider is that the cheque deferral ability is a non tariffable form of support for agriculture. The income will be reported and tax eventually paid on it somewhere.

I think some civil servant in Ottawa is trying to raise their profile on this one. Likely Tony Merchant trying another profile raising attempt at our expense.

[sawfly1]

is it anything more than a tax grab.
it would be pretty good for bin sales, or how else would you unwind
yourself if you had a full year deferred.

there should be some tools to take advantage of sales and delivery opportunities.
and still manage your tax position

[farming101]

An opposing view:

That'll be the day I leave my cash parked in some grain company's bank account

If sole proprietor use the OIA line 9941 and 9938
If incorporated pay the tax, put the money to work and move on

[vvalk]

is it anything more than a tax grab.
it would be pretty good for bin sales, or how else would you unwind
yourself if you had a full year deferred.

there should be some tools to take advantage of sales and delivery opportunities.
and still manage your tax position

One thing I'm not sure about. Would you have to value your inventory then and pay taxes on that? Or can you just not make the actual sale in the fiscal year? If the latter is true it would move the harvest pressure from sept to Jan! If the former is true how do you value inventory when this year there is $6 malt prices and Sub $3 feed. $10 durum and low quality durum worthless. If the equipment manufactorers and input suppliers think about it they better be lobbying Ottawa hard against this as well because there won't be nearly as much money in the good years to buy. Also don't forget we are talking high tax rate because you won't be able to stay in the the small business limit

[vvalk]

And another thought is no one spends money more then farmers. If they want the economy to get going how does taking all your income allow you to buy all the stuff that supports jobs?

[vvalk]

Talk to any business in a city like Lethbridge if they can tell whether agriculture is having a good year or not. My mom used to work at a jewelry store and they could tell eighth away what kind of year farmers had. If you think about it the NDP and to a lesser extent the Libs would rather take all your money through taxation and then pay for more public sector workers then the other way around

[Oliver88]

Makes me wonder why any civil servant was trying to tweak income tax laws and laws that involve taxing agriculture property.
It appears the farm package policies will start to be taxed in 2019?



Insurers of Farming and Fishing Property

For taxation years beginning after 2018, the budget eliminates the tax exemption for insurers of farming and fishing property that is based on the proportion of their (and their affiliated insurers’) gross premium income earned from insuring property used in farming or fishing (including residences of farmers or fishers).

Consultation on Cash Purchase Tickets

The budget launches a consultation on the income tax deferral available in respect of deferred cash purchase tickets for deliveries of listed grains by farmers. Interested parties are invited to submit comments to the government by May 24, 2017.

[Oliver88]

It appears changes are coming for corporations as well.
Capital gains, dividends, life insurance benefits are all being reviewed.



Business Tax Measures
Tax Planning Using Private Corporations

The budget indicates that the government’s review of federal tax expenditures highlighted certain issues regarding tax planning and tax reduction strategies that use private corporations to gain unfair tax advantages for high-income individuals and which are not available to other Canadians. The budget identifies in particular the following strategies involving private corporations:

a) sprinkling income – causing income that would otherwise be realized by an individual taxable at a high personal tax rate to instead be realized (for example, through dividends or capital gains) by family members subject to a lower or nil rate of tax

b) holding portfolio investments – because corporate tax rates are generally much lower than personal rates, private corporations can facilitate the accumulation of earnings that can be passively invested

c) converting regular income into capital gains – causing income that would normally be paid as a salary or dividend to a principal to instead be converted into corporate capital gains, allowing funds to be distributed at a much lower tax rate

The government is further reviewing this area, including whether there are features of the current system that have an inappropriate and adverse impact on genuine business transactions involving family members. The government intends to release a paper in the coming months setting out the nature of these issues in more detail as well as proposed policy responses.


http://www.pwc.com/ca/en/services/tax/budgets/2017/federal-budget-analysis.html

[macdon02]

Well imo the AG stability program was a setup for this very moment. I foresee paying tax upfront, unsold grain being valued with ag stability prices any shortfall being rolled fwd. So summerfallow might make a comeback. Govt at any level is a greedy bastards, never under estimate them. It might be time to completely get off the tit and self insure but not positive on that one.

[farming101]

Not wise enough to say I saw it coming

However it looks like the self insured guy's backstop might not be off limits either