Agriculture Committee on Oct. 23rd, 2025

[Heath MacDonald, Liberal, Malpeque, PE]

I know that we have an aging demographic in the farming community.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Given that our farmers are aging, they will presumably have to transfer their farms.

Do you think the increased capital gains inclusion rate from 50% to 66% that will soon come into force will be of help when they transfer their farms or will this hurt them?

[Heath MacDonald, Liberal, Malpeque, PE]

One of the first decisions we made as a government was to get rid of the carbon tax and the capital gains tax increase. I believe we'll have some good news in the budget relevant to capital gains—

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

I'm sorry, but I think you misunderstood the question.

There are many taxation issues involved in farm transfers. An increased capital gains inclusion rate will have a very detrimental effect on the next generation of farmers who might want to take over these farms. Individuals—meaning parents—who pass on their farms will presumably have to pay a lot of taxes, and these taxes will be borne by the next generation. We're talking about a rate that will increase from 50% to 66%, even though farm values are going up.

How will you help this next generation, which will have to pay astronomical debts during farm transfer?

[Heath MacDonald, Liberal, Malpeque, PE]

I think we increased the capital gains exemption to $1.25 million.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Do you have any estimate on the number of farmers that will still be active in Canada over the next 15 years if we factor in the costly farm transfer policies that were introduced?

[Heath MacDonald, Liberal, Malpeque, PE]

The inclusion rate has been maintained at 55%. Is that correct? Is that what you're asking me?

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

I thought the department had a vision for the future of agriculture. Based on the answers you have just given me, it seems you have not understood my questions, which are fairly straightforward.

Does the current Canadian tax framework for farm transfer support buyers or is it driving out a generation of farmers?

[Heath MacDonald, Liberal, Malpeque, PE]

We maintained the tax inclusion at 55%. That's where it is now.

Is that—

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

We’ll move on.

If you have any information to share with the committee, that would be great.

[Heath MacDonald, Liberal, Malpeque, PE]

If you don't mind, member, the deputy might have some input—

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

I’m sorry, Minister, but I'd like to speak with you. I'd like to speak with the man holding the position of minister.

Canada is currently experiencing a significant reduction in the number of farmers. Your role as minister is to speak to all your officials to find solutions to help secure the future of agriculture. We must ensure we have enough people who want to pursue farming.

What actions will you take?

You’re in a position of privilege that comes with responsibility to make sure we have enough farmers in Canada to engage in farming. Foreign workers will not always be there to do the farming. If that were the case, we would need partnerships with foreigners. However, we need Canadian farmers.

Is the Department of Agriculture and Agri-food seeing the warning signs of what the next 15 years will look like?

[Heath MacDonald, Liberal, Malpeque, PE]

We're all concerned in every sector, including agriculture. It's extremely important to the economy of this country, and we'll do everything we can to ensure that young farmers, generational.... I met quite a few of them last night, actually, and over the last three or four days and through my travels. Farming is generational. Long after you and I are gone as politicians, farmers will still be here.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Thank you.

[The Chair, Liberal, Michael Coteau]

We'll go next to the Liberals for five minutes.

Go ahead, MP Mingarelli.

[Giovanna Mingarelli, Liberal, Prescott—Russell—Cumberland, ON]

Thank you for joining us, Minister.

Since I was elected, I've had the opportunity to visit many farms and agricultural centres in my riding of Prescott—Russell—Cumberland, and to engage directly with farmers and producers on the challenges they are facing.

In fact, my first official event after I was sworn in as MP was to welcome you to the Gillette farm located in Embrun on May 23, 2025.

On October 10, you visited Dunrobin Distilleries, located in Vankleek Hill.

One of the major concerns farmers share with me is how tough it is to get their local products to markets across Canada.

What steps is your department taking at the federal level to dismantle interprovincial trade barriers that limit the free sale of local agri-food products across the country?

[Heath MacDonald, Liberal, Malpeque, PE]

It's a good question. It's extremely important.

I think what we've done recently with internal trade right across the country is going to help those farmers do more and maybe sell more and become more profitable.

I'm not sure if I caught whether you mentioned exports. I think trade outside of the country is also extremely important. One thing that I became very aware of very quickly, along with ministers Trevor Jones from Ontario and Ron Kostyshyn from Winnipeg, is that all of our Canadian embassies around the globe have agriculture staff within them. It's extremely important. I don't think many other industries or sectors have that.

We'll continue to bring down barriers from province to province. I believe it's extremely important that we're able to trade within this country. I was part of the Canadian Free Trade Agreement back in 2018 as a provincial member. At that time, it became very frustrating, and here we are again, doing it again. With the geopolitical situation we find ourselves in now, I think it's extremely important that all of the provinces have come together to ensure that we can trade freely within this country, which we should have been doing a long time ago. I think it's a great initiative.

I'm happy to say that hopefully all sides, in every party, are in the same boat, because it's extremely important to agriculture and agri-food.

[Giovanna Mingarelli, Liberal, Prescott—Russell—Cumberland, ON]

Besides the removal of regulatory barriers, farmers have told me that they need more tangible infrastructure support, market entry assistance and access to distribution networks to reach new markets.

How is your department making efforts on the ground to support local farmers and to help them expand their client base across Canada?

[Heath MacDonald, Liberal, Malpeque, PE]

We have Export Development Canada, which has bureaucrats who basically do this type of stuff. We also have that in-house at Ag Canada relevant to ensuring that the appropriate processes are followed.

I think there are lots of opportunities. If an organization, any type of organization, wants to reach out to our office, we'll certainly put them in touch with the right people. We've done quite a bit, just recently, on the ag marketing side, which they have access to as well. I think ag marketing is now at $75 million, and it's open to any sector within the agri-food and agriculture business.

That's likely one of the main ones. It seems to be a very popular one with farmers, so we'll continue to build on that.

[Giovanna Mingarelli, Liberal, Prescott—Russell—Cumberland, ON]

How much time do I have left?

[The Chair, Liberal, Michael Coteau]

You have 40 seconds.

[Giovanna Mingarelli, Liberal, Prescott—Russell—Cumberland, ON]

Then I'll stop there.

Thank you, Minister.

[The Chair, Liberal, Michael Coteau]

Okay, we have enough time for one quick round. We're going to do five minutes, five minutes and two and a half minutes.

I'll go to Mr. Bonk for five minutes.

[Steven Bonk, Conservative, Souris—Moose Mountain, SK]

Thank you, Mr. Chair.

Minister, Canada's beef sector is still operating under stricter specified risk material rules than many of our trading partners. The CFIA has been extremely slow to update these regulations, and they have prevented Canada from achieving full negligible risk status for BSE, costing our producers immense amounts of money.

Is this a priority for your government?

[Heath MacDonald, Liberal, Malpeque, PE]

You have CFIA sitting right here.

Go ahead, Mr. Ianiro.