To The Haldimand Press
The Ontario Federation of Agriculture (OFA) represents Ontario’s farmers, mostly on issues of a provincial nature.
When it comes to national issues, the OFA turns to its national counterpart, the Canadian Federation of Agriculture (CFA), to take the lead. We’ll shortly be sending our representatives to participate in the CFA annual meeting in Ottawa. We’ll debate resolutions submitted by farmers from coast to coast and look at how we can build further resilience in agriculture and the Canadian food system in the context of a changing climate and large-scale supply chain disruptions.
Even though we work closely with the CFA, the OFA also does its own advocacy by making submissions to Finance Canada for the pre-budget consultation process. This year, OFA made five recommendations:
1. Financial compensation for farmers negatively impacted by fertilizer tariffs
Last March, the Canadian government imposed a 35% tariff on imports from Russia, including fertilizer. Farmers in Eastern Canada import 85-90% of their nitrogen fertilizer from Russia, and the tariffs have added considerable extra costs in an already inflationary environment. In the short-term, we continue to ask that fertilizer tariffs be reimbursed to the farmers who paid them, and if that’s not feasible, to establish a way that the funds are returned to the agriculture sector.
Long-term, we must reduce our reliance on Russian fertilizer and need government investment in domestic nitrogen capacity so that we minimize future risks to Canada’s food security.
2. Exempt farm businesses from filing requirements for underused housing tax
The new Underused Housing Tax Act requires private corporations and partnerships (including farms) who own a residential property to file this return even if they don’t have to pay tax. Farmers don’t play a meaningful role in Canada’s rental housing market and many will be unaware they have to file. With the penalties for not filing set at exorbitantly high levels, we are asking for an exemption from filing requirements for farm businesses to avoid unnecessary financial hardship.
3. Improve Advance Payment Program
The Advance Payment Program is a federal loan guarantee program that gives farmers access to low-interest cash advances. With ongoing cost increases, we are asking for the 2022 temporary increase in the interest-free loan amount from $100,000 to $250,000 to be made permanent. We’re also asking for administrative improvements to make it simpler and more efficient, and for 60% of the advance to be available in the fall when farmers make many of their planting purchases for the following year.
4. Funding for clean technology adoption
The Agricultural Clean Technology Program announced by the federal government in 2021 was extremely well received and funding requests outweighed the money available to help farmers purchase technologies that help reduce on-farm greenhouse gas emissions. We’re asking for renewed funding under this program.
5. Broadening fuel tax exemption
Farmers depend on fuels to heat and cool barns and dry grain crops. These aren’t optional and as we currently lack workable alternative energy options, the fuel surcharges for the price on carbon have placed a significant financial burden on farmers. The costs to Ontario farmers between now and full implementation of federal carbon pricing structures in 2030 are estimated at over $890 million. That’s why we strongly recommend all MPs support Bill C-234 to expand the definition of farm machinery exempt under the Greenhouse Gas Pollution Pricing Act.
We’re prepared to work closely with the federal government to deliver these necessary investments and programs for the benefit of all Canadians and our national economy. More information is available at ofa.on.ca.
