Analysis · Debate reply · beta

Ryan Turnbull

294 words · 15 sentences · 21 clauses

Replying to Jacob Mantle (Conservative)
“Mr. Speaker, I am rising to follow up on a question I asked the Minister of Agriculture and Agri-Food about the troubling implications for family farms and the ability to pass family farms on to the next generation. For generations, family farms have fed Canadians and the world, and those farms are passed on, with great pride, from one generation to the next. Generally, if a farm is passed from a father or mother to a child, it is passed on a tax-deferred basis. Unfortunately, under the current rules, if it is passed to an extended family member, such as a niece or nephew, it is fully taxed under the capital gains rules. The result has been that, over the last 20 years, more than 57,000 family farms have been lost. That hurts family farmers in my community, such as Steve Cooper, who brought this issue to my attention in the local media. He wanted to pass his farm on to a nephew but could not do so because of the dramatic tax implications. The problem will only compound in the future because right now the average Canadian farmer is in their mid-fifties, and fewer than one in 12 has a successor under the age of 40. This is data from Statistics Canada. That means that farmers are getting older; they do not have a next generation, potentially, in line; and they are struggling with the succession of their farm. The result is that we are losing family farms in my community and across Canada. I asked the Minister of Agriculture and Agri-Food to consider looking into the rules around the Income Tax Act to change this so family farms could be passed on to the next generation in an extended family, without tax implications. The response at the time was an acknowledgement of the problem and a commitment to speak with the Minister of Finance and to come back to the House to inform us. I see that the Parliamentary Secretary to the Minister of Finance is here today, so I would like to ask him if those conversations have been had, what the result of those conversations was, and whether they have a solution or proposal that they will bring forward to the House in the fall sitting to address this issue.”
Statement grade
B–
74 / 100, held down by Relevance
A score under 50 is red. Choose a measurement to see where it lost points and why; choose it again to clear.
Procedure 6%Claims 71%Reasoning 20%Thanks 3%

This view breaks the statement into its steps and names what each one does.

Mr. Speaker, Procedure · 18 wordsit is good to be here in the very last moments before the House rises for the summer.Procedure Claims · 30 wordsI know that there are a large number of farms in the member opposite’s riding. There are farm succession plans all across this country, and farmers do struggle with succession, Reasoning · 10 wordsso I understand the issue the member is speaking about. Claims · 30 wordsWe have done some things recently, in the spring economic update implementation act, on this front with capital gains exemption.1 It applies only to employee ownership trusts and worker co-operatives, 2Reasoning · 24 wordsbut I think it highlights where the government is open to looking at options for succession to make it easier to hand down businesses. Claims · 134 wordsIn this case, the one I am referencing is employee ownership trusts, which is a model I have advocated for. Worker-owned co-operatives will get the same tax treatment. It is a measure I have supported from day one because it offers owners of businesses that are small- to medium-sized, or they could be larger, the opportunity, when they want to sell the business, to protect those businesses and also to hand them down to workers. This creates wealth-building opportunities for frontline workers in a grocery chain, for example. There are many examples in the U.K. For example, Waitrose is a company run by John Lewis Partnership.3 It is a good example of how employee ownership trusts can create a shared equity model where frontline workers get to participate in the proceeds of the company. Reasoning · 17 wordsI think it is similar to a model that could be applied to farms in this country, Partly on pointClaims · 16 wordsalthough I do not know of any workup of the details on that at this point. Thanks · 8 wordsI thank the member for bringing this up.Thanks Reasoning · 7 wordsI think it is an important consideration.

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