Fall 2019 Agriculture Matters
Climate Action Incentive Fund
The Climate Action Incentive Fund (CAIF) is a new Environment and Climate Change Canada program funded with proceeds of the federal carbon pollution pricing system. The CAIF has three funding streams
- Small and medium sized enterprises (SME) project stream
- Municipalities, universities, colleges, schools and hospitals (MUSH) Retrofit stream
- Rebate stream for SME and not-for-profit organizations for the purchase of Energy Star equipment.
SME funding will be offered in multiple rounds during 2019 and 2020. The current round application period has been open since July 17, 2019 and is open until October 14, 2019. The next round of funding has not yet been announced.
The SME project stream provides funding for retrofit projects in building, transportation, industry, waste, agriculture and more. Examples of retrofits in the agricultural industry include changes to agricultural process to improve energy efficiency and costs or switching fuel sources to reduce greenhouse gas emissions.
Up to 25% of eligible project costs could be funded with a minimum funding request of $20,000 (or a minimum $80,000 project) to a maximum funding request of $250,000 per project. To be eligible, you must be an incorporated enterprise with less than 500 employees and operate in Manitoba, New Brunswick, Ontario or Saskatchewan. Applicants will have until March 31, 2021 to implement their project. More information on project eligibility can be found on the government of Canada's website.
The funding application period under the rebate stream has not yet been announced.
$1.75 Billion in Trade Compensation for Dairy Farmers
In August, the Federal Government announced compensation to Dairy Farmers for the two recent trade agreements. The compensation will be spread over eight years. The Government is estimating that 11,000 Dairy Farmers will receive compensation. Payments will flow through the Canadian Dairy Commission. In year one, the direct payments are expected to be issued in proportion to quota held. For future years, the federal government plans to work with the Dairy Farms of Canada to determine terms and conditions.
Upcoming Deadlines
Tax planning before year end may provide substantial tax savings, especially when there’s been high profits and receipt of government assistance. If you are concerned about your level of income and the tax liability it may generate, we recommend you contact us for a preliminary review of your tax situation.
Some ways to lower your tax liability include:
- Prepaying in 2019 for 2020 inputs such as feed, crop inputs and livestock.
- Income sharing with children and or spouses (please review with us).
- Repairing equipment and/or farm buildings.
- Delaying receipt of commodity sales until the new year.
- For individuals, purchasing RRSPs prior to March 1, 2020.
- Delaying the withdrawal of AgriInvest funds until the new year.
Year End Tax Planning
October 31, 2019
- Production Insurance - 2019 Program year
- Report your yield for canola, mustard, spring grains and spring wheat.
- Risk Management Program - 2019 Program year
- Report third-quarter livestock sales.
December 1, 2019
- Production Insurance - 2019 Program year
- Pay your premium for seed corn.
December 15, 2019
- Production Insurance - 2019 Program year
- Report your yield for beans, corn, soybeans, sunflowers, seed corn, honey, flue-cured tobacco, fresh yield-based potatoes, seed onions, set onions, Spanish yield-based onions, sugar beets and all processing vegetables except carrots and butternut squash.
- Report your yield for adzuki beans.
December 31, 2019
- AgriStability - 2019 Program year
- Pay your fee with a 20 percent late penalty.
- Apply for an interim payment. You must have completed at least six months of your fiscal year.
- AgriStability - 2018 Program year
- Final deadline. Report your 2018 farm income to the Canada Revenue Agency.
January 31, 2020
- Risk Management Program - 2019 Program year
- Pay second semi-annual premium installment for livestock plans. Report fourth quarter livestock sales.
June 15, 2020
- AgriStability - 2019 Program year
- Individuals: submit your T1163 to Canada Revenue Agency.
June 30, 2020
- AgriStability - 2019 Program year
- Corporations, trusts and special individuals: submit your Statement A to Agricorp.
- Submit Year-end report and Claim form.
