The Alberta Wheat Commission (AWC) is expressing some concerns about last week’s Federal Budget.
In a press release, the AWC says eliminating deferred cash purchase tickets for grain sales, as outlined in the budget, will severely hurt farmers’ income.
This tool allows farmers to defer income on grain sales to balance income throughout the year. It helps them avoid excess swings in taxation levels, while at the same time, encourages farmers to deliver grain into good market opportunities.
“Many farms use this tool to avoid having to choose between losing a sale that might bump them into a higher tax bracket that year, or lose the ability to maximize their revenue due to severe taxation swings,” said Chairperson Keven Auch.
He says with the tool gone, it’ll cause a ripple effect throughout the agri-food value chain, as the lack of cash flow management could result in farmers’ inability to make business purchases year round.
The nation’s agriculture industry’s competitiveness would also be affected. The AWC says if farmers weren’t able to deliver grain when market opportunities rise due to tax swings, Canada misses out on international sales due to lack of inventory.
– Posted by BET
