Prince Edward Island farm operators are aging. The average age of a farmer on P.E.I., according to the 2011 census of agriculture, is 54.2 years, which is slightly higher than the rest of Canada. This means many farmers are looking for a way to transfer their capital-intensive farms over the next decade.
This poses new challenges to the continuation of family farming in Canada. As you heard from the Canadian Federation of Agriculture, effective tax planning is essential to the viability of the next generation of farmers, as well as those retiring. As part of this planning, family farms continue to incorporate, while changing demographics means they're unable to rely on their children, necessarily, to stay on the farm.
These pressures also reduce the efficacy of existing provisions within the Income Tax Act established to enable family farm transfers. To ensure the industry is well positioned to continue its growth, we support the Canadian Federation of Agriculture's recommendations in terms of what has been asked for: one, that rollover provisions be amended to recognize the full breadth of family relations relied upon to maintain family farms across Canada; and two, that family farm corporations be provided with a level playing field when transferring their businesses to the next generation, including access to the capital gains exemption and ensuring siblings can access the same provisions as other family members.