Agriculture
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.”
Quick facts
- 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.
Agriculture
Bill C-282, now in the Senate, risks holding back other economic sectors and further burdening consumers
From the Frontier Centre for Public Policy
Bill C-282 currently sits in the Canadian Senate and stands on the precipice of becoming law in a matter of weeks. Essentially, this bill seeks to bestow immunity upon supply management from any potential future trade negotiations without offering increased market access to potential trade partners.
In simpler terms, it risks holding all other economic sectors hostage solely to safeguard the interests of a small, privileged group of farmers. This is far from an optimal scenario, and the implications of this bill spell bad news for Canadians.
Supply management, which governs poultry, egg, and dairy production in Canada, has traditionally enabled us to fulfill our domestic needs. Under this system, farmers are allocated government-sanctioned quotas to produce food for the nation. At the same time, high tariffs are imposed on imports of items such as chicken, butter, yogurt, cheese, milk, and eggs. This model has been in place for over five decades, ostensibly to shield family farms from economic volatility.
However, despite the implementation of supply management, Canada has witnessed a comparable decline in the number of farms as the United States, where a national supply management scheme does not exist. Supply management has failed to preserve much of anything beyond enriching select agricultural sectors.
For instance, dairy farmers now possess quotas valued at over $25 billion while concurrently burdening dairy processors with the highest-priced industrial milk in the Western world. Recent data indicates a significant surge in prices at the grocery store, with yogurt prices alone soaring by over 30 percent since December 2023. This escalation is increasingly straining the budgets of many consumers.
It’s evident to those knowledgeable about the situation that the emergence of Bill C-282 should come as no surprise. Proponents of supply management exert considerable influence over politicians across party lines, compelling them to support this bill to safeguard the interests of less than one percent of our economy, much to the ignorance of most Canadians. In the last federal budget, the dairy industry alone received over $300 million in research funds, funds that arguably exceed their actual needs.
While Canada’s agricultural sector accounts for approximately seven percent of our GDP, supply-managed industries represent only a small fraction of that figure. Supply-managed farms represent about five percent of all farms in Canada. Forging trade agreements with key partners such as India, China, and the United Kingdom is imperative not only for sectors like automotive, pharmaceuticals, and biotechnology but for the vast majority of farms in livestock and grains to thrive and contribute to global welfare and prosperity. It is essential to recognize that Canada has much more to offer than merely self-sufficiency in food production.
Over time, the marketing boards overseeing quotas for farmers have amassed significant power and have proven themselves politically aggressive. They vehemently oppose any challenges to the existing system, targeting politicians, academics, and groups advocating for reform or abolition. Despite occasional resistance from MPs and Senators, no major political party has dared to question the disproportionate protection afforded to one sector over others. Strengthening our supply-managed sectors necessitates embracing competition, which can only serve to enhance their resilience and competitiveness.
A recent example of the consequences of protectionism is the United Kingdom’s decision to walk away from trade negotiations with Canada due to disagreements over access to our dairy market. Not only do many Canadians appreciate the quality of British cheese, but increased competition in the dairy section would also help drive prices down, a welcome relief given current economic challenges.
In the past decade, Canada has ratified trade agreements such as CUSMA, CETA, and CPTPP, all of which entailed breaches in our supply management regime. Despite initial concerns from farmers, particularly regarding the impact on poultry, eggs, and dairy, these sectors have fared well. A dairy farm in Ontario recently sold for a staggering $21.5 million in Oxford County. Claims of losses resulting from increased market access are often unfounded, as farmer boards simply adjust quotas when producers exit the industry.
In essence, Bill C-282 represents a misguided initiative driven by farmer boards capitalizing on the ignorance of urban residents and politicians regarding rural realities. Embracing further protectionism will not only harm consumers yearning for more competition at the grocery store but also impede the growth opportunities of various agricultural sectors striving to compete globally and stifle the expansion prospects of non-agricultural sectors seeking increased market access.
Dr. Sylvain Charlebois is senior director of the agri-food analytics lab and a professor in food distribution and policy at Dalhousie University.
From StosselTV
Activists have a new goal: “DEgrowth.”
They say “growth is killing us.” They couldn’t be MORE wrong.
“Growth is not killing us. It’s saving us!” says author Johan Norberg. He explains why growth is essential to human progress, especially for poor people. “In poor countries, if you manage to grow by 4% annually over 20 years,” he points out, “that reduces poverty in that country on average by 80%.
But DEgrowth activists insist that growth means “climate chaos.” They say a smaller economy would be “sweeter.” They say “We must urgently dismantle capitalism!” It’s destructive nonsense. This video explains why.
————
To get our new weekly video from Stossel TV, sign up here: https://www.johnstossel.com/#subscribe
————
After 40+ years of reporting, I now understand the importance of limited government and personal freedom.
——————————————
Libertarian journalist John Stossel created Stossel TV to explain liberty and free markets to young people.
Prior to Stossel TV he hosted a show on Fox Business and co-anchored ABC’s primetime newsmagazine show, 20/20. Stossel’s economic programs have been adapted into teaching kits by a non-profit organization, “Stossel in the Classroom.” High school teachers in American public schools now use the videos to help educate their students on economics and economic freedom. They are seen by more than 12 million students every year.
Stossel has received 19 Emmy Awards and has been honored five times for excellence in consumer reporting by the National Press Club.
Other honors include the George Polk Award for Outstanding Local Reporting and the George Foster Peabody Award.
Trudeau admits immigration too much for Canada to ‘absorb’ but keeps target at record high
Trudeau’s new online censorship law – Problems with Bill C-63 / the Online Arms Law
Western leadership’s detachment from reality is causing terror and death across the globe
Decarbonization deal opens new chapter in Alberta-Japan relationship
-
Business2 days agoBusiness investment key to addressing Canada’s productivity crisis
-
International2 days agoBrussels NatCon conference will continue freely after court overturns police barricade
-
Jordan Peterson2 days agoJordan Peterson slams CBC for only interviewing pro-LGBT doctors about UK report on child ‘sex changes’
-
Business2 days agoFederal budget fails to ‘break the glass’ on Canada’s economic growth crisis
-
Alberta1 day agoDanielle Smith warns arsonists who start wildfires in Alberta that they will be held accountable
-
Addictions2 days agoLiberal MP blasts Trudeau-backed ‘safe supply’ drug programs, linking them to ‘chaos’ in cities
-
Frontier Centre for Public Policy2 days agoThe Smallwood solution
-
Agriculture1 day ago
Bill C-282, now in the Senate, risks holding back other economic sectors and further burdening consumers