Thanks very much.
Thank you, Gerrid.
Our fourth recommendation is to increase the lifetime capital gains exemption on the sale of farm assets. Currently, the exemption on the sale of qualified farm property is $750,000. According to the 2006 census of agriculture, the average age of Canadian farmers is 52. This means that a large number of farmers will be retiring from farming over the next several years. To facilitate the transfer of farm assets to the next generation and to encourage young farmers' entry into the business, the Wheat Growers recommends that the capital gains exemption be increased to $1 million.
Our fifth and final recommendation is for the government to move forward in implementing a voluntary Canadian Wheat Board. The continuation of the CWB marketing monopoly in western Canada represents the single greatest impediment to farm profitability and economic prosperity in western agriculture today. The monopoly stifles investment in research and grain processing in western wheat and barley.
The CWB monopoly provides lower returns to prairie farmers than would exist in open market conditions. One example is a 2008 study by Informa Economics, which found that the Canadian Wheat Board provided western Canadian farmers with lower returns than an open market in five of the six years it examined, for both spring wheat and durum wheat. The Informa study pegged farmer losses due to the monopoly at $450 million to $628 million annually. Needless to say, the increase in farm revenue resulting from a voluntary CWB would greatly improve farm income and would generate considerably more tax revenue.
I would add as well that implementing a voluntary CWB does not require any increased spending on the part of the government. This policy change represents a cost-free means of stimulating the economy and helping to slay the deficit.
I'd like to thank the committee members and the chair for inviting us, and we look forward to your questions after presentations.