New agri-processing tax credit to attract large-scale investment and diversify Alberta economy
Capitalizing on value-added agriculture
Alberta is introducing a new agri-processing tax credit that will help attract large-scale investment, diversify the economy and create jobs for Albertans.
As provinces and states across North America look to capitalize on the potential of the agri-processing industry, Alberta will build on the province’s competitive advantages by launching a new tax credit program in spring 2023. The program will ensure Alberta maintains a competitive edge over other jurisdictions and is able to maximize the number of opportunities that help grow the economy and create jobs.
Budget 2023 will introduce the Alberta Agri-Processing Investment Tax Credit to provide a 12 per cent non-refundable tax credit to support this growth and attract investment. To be eligible, corporations must make a minimum capital investment of $10 million in value-added agri-processing in Alberta.
“Agriculture has been a key part of Alberta’s economy for more than 100 years and I’m excited to see this tax credit program roll out so that it continues to be a key part of our economy in the future. Alberta’s agricultural producers play an important role in feeding the world and I look forward to seeing further innovation and growth in this sector.”
“Alberta has the fundamentals to take our value-added agriculture industry to new heights and meet the increasing global demand for food. The new agri-processing tax credit will allow us to attract large-scale agri-food projects that will help grow our industry, increase opportunities for primary producers, create jobs and feed the world.”
As Alberta’s oldest industry, agriculture is foundational to the province’s economy and identity. Incentivizing large capital investments will ensure the sector remains strong for generations to come and capable of adapting to the economy of the future.
“The Alberta Agri-Processing Investment Tax Credit further positions Alberta as an attractive place to do business. By supporting this quickly evolving and increasingly competitive sector, this government is further encouraging investment that will create jobs and grow Alberta’s economy.”
“With the introduction of the agri-processing investment tax credit, Alberta has positioned itself to attract more large-scale sector investments than ever before from companies like mine. This is the right way for Alberta’s agri-food sector to support diversification, create jobs, compete and win.”
“Alberta is widely recognized in the business community for its competitive tax rates, skilled workforce and strong primary agriculture sector. By offering a 12 per cent tax credit to agri-food processors making a minimum investment of $10 million, Alberta is maintaining its status as a top destination for value-added agricultural projects.”
“Population growth, a changing climate and increased costs of food are all indicators that food security will be a growing challenge. The new agri-processing tax credit program is a great incentive that will continue to highlight rural Alberta as the home of an innovative agriculture industry that plays a vital role in supporting food production.”
- Food manufacturing sales reached a record $20.1 billion in 2021 and the sector employed 22,400 Albertans.
- The food manufacturing sector was the largest manufacturing industry in the province, accounting for 23.8 per cent of total provincial manufacturing sales in 2021.
- Global demand for food is expected to increase by up to 56 per cent by 2050.
11 states consider ‘right to repair’ for farming equipment
By Jesse Bedayn in Denver
DENVER (AP) — On Colorado’s northeastern plains, where the pencil-straight horizon divides golden fields and blue sky, a farmer named Danny Wood scrambles to plant and harvest proso millet, dryland corn and winter wheat in short, seasonal windows. That is until his high-tech Steiger 370 tractor conks out.
The tractor’s manufacturer doesn’t allow Wood to make certain fixes himself, and last spring his fertilizing operations were stalled for three days before the servicer arrived to add a few lines of missing computer code for $950.
“That’s where they have us over the barrel, it’s more like we are renting it than buying it,” said Wood, who spent $300,000 on the used tractor.
Wood’s plight, echoed by farmers across the country, has pushed lawmakers in Colorado and 10 other states to introduce bills that would force manufacturers to provide the tools, software, parts and manuals needed for farmers to do their own repairs — thereby avoiding steep labor costs and delays that imperil profits.
“The manufacturers and the dealers have a monopoly on that repair market because it’s lucrative,” said Rep. Brianna Titone, a Democrat and one of the bill’s sponsors. “(Farmers) just want to get their machine going again.”
In Colorado, the legislation is largely being pushed by Democrats while their Republican colleagues find themselves stuck in a tough spot: torn between right-leaning farming constituents asking to be able to repair their own machines and the manufacturing businesses that oppose the idea.
The manufacturers argue that changing the current practice with this type of legislation would force companies to expose trade secrets. They also say it would make it easier for farmers to tinker with the software and illegally crank up the horsepower and bypass the emissions controller — risking operators’ safety and the environment.
Similar arguments around intellectual property have been leveled against the broader campaign called ‘right to repair,’ which has picked up steam across the country — crusading for the right to fix everything from iPhones to hospital ventilatorsduring the pandemic.
In 2011, Congress passed a law ensuring that car owners and independent mechanics — not just authorized dealerships — had access to the necessary tools and information to fix problems.
Ten years later, the Federal Trade Commission pledged to beef up its right to repair enforcement at the direction of President Joe Biden. And just last year, Titone sponsored and passed Colorado’s first right to repair law, empowering people who use wheelchairs with the tools and information to fix them.
For the right to repair farm equipment — from thin tractors used between grape vines to behemoth combines for harvesting grain that can cost over half a million dollars — Colorado is joined by 10 states including Florida, Maryland, Missouri, New Jersey, Texas and Vermont.
Many of the bills are finding bipartisan support, said Nathan Proctor, who leads Public Interest Research Group’s national right to repair campaign. But in Colorado’s House committee on agriculture, Democrats pushed the bill forward in a 9-4 vote along party lines, with Republicans in opposition even though the bill’s second sponsor is Republican Rep. Ron Weinberg.
“That’s really surprising, and that upset me,” said the Republican Wood.
Wood’s tractor, which flies an American flag reading “Farmers First,” isn’t his only machine to break down. His grain harvesting combine was dropping into idle, but the servicer took five days to arrive on Wood’s farm — a setback that could mean a hail storm decimates a wheat field or the soil temperature moves beyond the Goldilocks zone for planting.
“Our crop is ready to harvest and we can’t wait five days, but there was nothing else to do,” said Wood. “When it’s broke down you just sit there and wait and that’s not acceptable. You can be losing $85,000 a day.”
Rep. Richard Holtorf, the Republican who represents Wood’s district and is a farmer himself, said he’s being pulled between his constituents and the dealerships in his district covering the largely rural northeast corner of the state. He voted against the measure because he believes it will financially impact local dealerships in rural areas and could jeopardize trade secrets.
“I do sympathize with my farmers,” said Holtorf, but he added, “I don’t think it’s the role of government to be forcing the sale of their intellectual property.”
At the packed hearing last week that spilled into a second room in Colorado’s Capitol, the core concerns raised in testimony were farmers illegally slipping around the emissions control and cranking up the horsepower.
“I know growers, if they can change horsepower and they can change emissions they are going to do it,” said Russ Ball, sales manager at 21st Century Equipment, a John Deere dealership in Western states.
The bill’s proponents acknowledged that the legislation could make it easier for operators to modify horsepower and emissions controls, but argued that farmers are already able to tinker with their machines and doing so would remain illegal.
This January, the Farm Bureau and the farm equipment manufacturer John Deere did sign a memorandum of understanding — a right to repair agreement made in the free market and without government intervention. The agreement stipulates that John Deere will share some parts, diagnostic and repair codes, and manuals to allow farmers to do their own fixes.
The Colorado bill’s detractors laud that agreement as a strong middle ground while Titone said it wasn’t enough, evidenced by six of Colorado’s biggest farmworker associations that support the bill.
Proctor, who is tracking 20 right to repair proposals in a number of industries across the country, said the memorandum of understanding has fallen far short.
“Farmers are saying no,” Proctor said. “We want the real thing.”
Jesse Bedayn is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.
Why the News Block on the Plight of Dutch Farmers?
From the Brownstone Institute
God made the world, but the Dutch made Holland. This truism has guided Dutch identity and its republican virtue. When the ingenious Dutch reclaimed land from the sea it was for farms and these farms and farmers have fed the Dutch people, Europe and the world for centuries.
The picture displayed here is Paulus Potter’s famous work The Bull.
Created in 1647, Potter was 22 when he painted it and not quite 30 when he died. Renowned for its massive size, detailed realism including dung and flies and as a novel monumental picture of an animal, The Bull is understood as a symbol of the Dutch nation and its prosperity.
The Dutch Golden Age resulted in part from the creation of the Dutch Republic carved out by overcoming Spanish rule in the Netherlands. The little Dutch Republic became a global naval power and cultural force. The Dutch were classical liberals and believed in individual liberties like freedom of religion, speech and association.
The Dutch Republic was noted for economic vibrancy and innovation including the emergence of commodity and stock markets. The newly minted bourgeoisie spurred the first modern marketplace for artists to sell their work and freed them from the necessity of commissions from the Church and aristocracy. This is reflected in the subject matter of much Dutch Golden Age art with its depiction of everyday life. Potter’s painting is from this era.
But his work reveals another truth. The Dutch Golden age was impossible without its farms. Food is the foundation of any successful civilization, which is why the news that the Dutch government plans to shut as many as 3,000 farms for the sake of a ‘’nitrogen crisis’’ is so puzzling.
As Natasja Oerlemans of the World Wildlife Fund-Netherlands recently stated, ‘’We should use this crisis to transform agriculture.” She went on to state that the process will require several decades and billions of euros to reduce the number of animals.
So, what in fact is the issue with nitrogen and Dutch farming?
The nitrogen crisis is a bureaucratic and muddled affair which is now and will increasingly impact all of Dutch society. In 2017 a small NGO, Mobilisation for the Environment, led by long-time environmentalist Johan Vollenbroek, went to the European Court of Justice (ECJ) to challenge the then current Dutch practices that protected natural areas from nitrogen pollution.
In 2018, the ECJ decided in a court ruling that the Dutch legislation, which allowed business to compensate for increases in nitrogen emissions with technical measures and restoration, was too lenient. The Dutch high court agreed with the ruling. In so doing almost 20,000 building projects have been put on hold, stalling the expansion of farms and dairies, new homes, roads, and airport runways. These projects are valued at €14 billion of economic activity.
Farming is intensive in the Netherlands because it is a small country with high population density. According to Science magazine ‘’Dutch farms contain four times more animal biomass per hectare than the EU average.’’ But they also point out that ‘’Practices such as injecting liquid manure in the soil and installing air scrubbers on pig and poultry facilities have reduced ammonia emissions 60% since the 1980s.’’
These mitigating systems are seen as insufficient in light of the court rulings. Ammonia is part of the nitrogen cycle and is a byproduct of waste from farm animals.
The great concern of environmental bureaucrats is the so-called ‘’manure fumes’’ from livestock waste. Like methane from farting cows, manure fumes are the big thing and katzenjammer of the movement on meat and dairy.
Dutch farmer Klass Meekma, who produces milk from the goats he raises said recently, ‘’The nitrogen rules are eagerly being used by the anti-livestock movement to get rid of as many livestock farms as they can, with absolutely no respect for what Dutch livestock farms have achieved in terms of food quality, use of leftovers of the food industry, animal-care, efficiency, exports, know-how, economics and more.’’ Meekma’s goats produced more than 265,000 gallons of milk in 2019.
In many ways, Dutch farmers are the victims of their own success. Because Holland is small, farmers have needed to be innovative in the use of space which accounts for the higher levels of ‘’animal biomass’’ compared with other European countries. Success in agricultural practices and food production has produced profits and a strong economic sector for the Dutch economy. Remarkably, the Netherlands is the second largest food exporter in the world.
The biggest push against Dutch agriculture comes from the climate change community and minister for nature and nitrogen Christianne van der Wal. She said in a letter to politicians in 2021, “There is no future (for agriculture) if production leads to depletion of the soil, groundwater and surface water, or degradation of ecosystems.” She has announced new restrictions to cut nitrogen emissions in half by 2030, to meet international climate action goals.
Nobody wants runoff from farms harming streams and wildlife. But the focus on manure fumes; that is, nitrogen and ammonia seeping into the atmosphere and impacting the climate seems far more tenuous. Primeval Europe was like Africa’s Serengeti, teeming with huge herds of ungulates like aurochs. Did their farting and waste ruin the climate?
The climate is changing. The climate has always changed. Bronze Age Europe, a particularly fecund cultural period, was markedly warmer than today.
It is curious that the farming sector is the focus of rollbacks while other polluters are being treated differently. Farmer Meekma states,
“Since then (the court rulings) our country has a so-called nitrogen crisis. It’s ludicrous that the national airport Schiphol Amsterdam and lots of industrial companies have no nature permits, and farmers are now being sacrificed to facilitate these other activities.”
“It’s a real shame how farmers are being treated in the Netherlands. They are being pushed out to make room for industry, aviation, transportation, solar fields and housing of the growing numbers of immigrants.’’
Most of the “saved” nitrogen emissions from government plans will be used to offset the increased emissions from building 75,000 houses. Only 30 percent will lead to real emission reductions.
Dutch Prime Minister and WEF luminary Mark Rutte acknowledged that the move on farming would have “enormous consequences. I understand that, and it is simply terrible.”
There are many historical examples of political pressures on farming as harbingers of disaster, from Ukraine in the Soviet Union to Zimbabwe. Both were breadbaskets and exporters reduced to famine. Controlling food production is something that political ruffians always want to achieve. The nitrogen crisis is a struggle of urban ideologues versus traditional lifeways and rural self-sufficiency. Due to the war in Ukraine and supply-chain disruption from the covid pandemic, many people around the world are facing starvation. This is not the time for Europe to harm its best agricultural producer.
Dutch farmers are hip to when a nudge becomes a shove. The anti-meat ideologues want humans to subsist on grass cuttings and Bill Gates’ lab-made gunk. Dutch farmers feed the world. Their plight is ours as well.
The nitrogen crisis has the waft of so much bullshit.
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