As part of his announcement earlier this week to step down as prime minister, Justin Trudeau also received approval from the Governor General Mary Simon to prorogue Parliament until March 24 to allow the Liberal party time to select a new leader.
The proroguing of Parliament – which basically suspends all government business – comes with a variety of legislation of keen interest to the agricultural industry hanging in the balance. Here is a quick look at some of that legislation now caught in limbo.
Bill C-234, an Act to amend the Greenhouse Gas Pollution Pricing Act
Originally intended to provide on-farm exemptions from carbon pricing for propane and natural gas for such uses as grain drying and barn heating, the Bill was widely supported by farmers and received third reading in the House of Commons in June 2023.
However, a Senate amendment in late 2024 effectively limited the exemption to grain drying only, eliminating the proposed exemption for heating barns, greenhouses and food-growing structures. The Senate amendment also included a shortened sunset clause.
The Senate amendment sent the original Bill back to the House of Commons where it now languishes.
Without relief, the carbon tax on natural gas and propane will cost farmers almost $1 billion by 2030, according to an earlier report from the Parliamentary Budget Officer.
Bill C-282, An Act to amend the Department of Foreign Affairs, Trade and Development Act.
Essentially, the bill would bar the Minister of Trade from concluding trade negotiations that open access to Canada’s protected supply-managed sector. It would basically make supply management non-negotiable. The bill is of course supported by Canada’s supply management sectors but has not found much love from other farmers who contend it could hinder Canada’s ability to negotiate favourable trade deals.
The bill received third reading in the House of Commons but was the subject of an amendment in the committee stage of the Senate in November. The amendment proposed the bill not apply to existing trade agreements, the renegotiation of current agreements, or those already under negotiation, perhaps offering some compromise between protecting supply management and providing flexibility in trade talks.
Amid the amendment, the bill has not yet had third reading in the Senate and could still be headed back to the House of Commons.
Bill C-293, the Pandemic Prevention and Preparedness Act
Proponents say the bill will help prevent the risk of and prepare for future pandemics. However, it has received significant push back from livestock groups, who accuse Ottawa of overreach.
The Alberta government also opposes the bill, contending that under the proposed legislation, public health officials would have the authority during a pandemic to close facilities they consider “high risk,” such as livestock operations and meat processing plants, and even “mandate” the consumption of vegetable proteins by Canadians.
“Alberta Beef Producers supports the overall objective of pandemic preparedness,” Doug Roxburgh, vice-chair, Alberta Beef Producers, said in a release. “However, we are disappointed in the current wording of Bill C-293, as it unfairly singles out animal agriculture, despite the industry’s critical role in food security and rural economies.”
The bill has received third reading in the House of Commons, but only first reading in the Senate.
Capital gains tax modification
First announced in the federal budget in April, the change increased the taxable portion of capital gains to 66.7% from 50% for individuals and companies earning over $250,000 in capital gains. The move was roundly criticized by the farming community, contending it would increase the financial burden for farmers, who typically rely on the sale of land, equipment, or quotas as part of succession planning.
The legislation has not been officially approved in Parliament, but the government began collecting the increase in capital gains in June, regardless.
According to reports, the government has said it will continue to collect on the higher capital gains inclusion rate for now, but the potential fall of the minority Liberal government and a federal election later this year means the longer-term future of the higher rate is in jeopardy.
Research from the Grain Growers of Canada shows an 800-acre farm in Ontario that acquired its land in 1996 would pay an extra $1.2 million or 31% if selling at current land prices under the higher capital gains inclusion rate, using historical land prices from Farm Credit Canada.
