Question Period Note: SUPPORT FOR YOUNG FARMERS

Q1 – What is the Government doing to prevent predatory investors from buying up Canadian farmland? Q2 – How is the Government supporting farm succession and intergenerational transfer of farmland?

R1 - Currently in Canada, the vast majority of farm land is still owned by Canadian farm families.
Investment funds that buy land are generally renting the farm land to existing farmers and this can allow farmers to expand without the capital needed to buy additional land.
The majority of farmland in Canada is in the hands of Canadian interests; for example, farm families and federal and provincial governments. R2 - The Government of Canada provides support through several measures to help farmers acquire and protect farmland. These include:
• Tax support for farming businesses through a $1 million Lifetime Capital Gains Exemption and an intergenerational rollover provision for family farms;
• The Canadian Agricultural Loans Act Program, a loan guarantee program for farmers and agricultural co-operatives;
• Various programs through Farm Credit Canada that offer loan products to young and beginning farmers.

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• While provinces and territories have jurisdiction over the ownership of farmland, we work together to ensure the ongoing viability and prosperity of farmers in Canada.
• A number of programs and services are available to help young and beginning farmers get established and manage a successful farming operation, such as the Canadian Agricultural Loans Act Program, Advance Payments Program, AgriDiversity Program, and Youth Employment and Skills Program.
• Farm Credit Canada currently offers flexible financing options such as lines of credit, deferred payments, interest-only payments and extended disbursements.
• We also provide a Lifetime Capital Gains Exemption for the genuine intergenerational transfer of farm operations.