The Western Canadian Wheat Growers Association looks forward to proposals in today’s federal budget that will strengthen the western Canadian farm economy.
“We hope the budget will contain measures that lower our costs and pave the way for greater private investment,” says Kevin Bender, President of the Wheat Growers.
The Wheat Growers believe the federal government should take a number of measures to improve farm profitability and set the stage for greater investment in western Canada. Examples include:
• Implementing the two cent per litre reduction in the federal diesel fuel tax;
• Increasing the Capital Cost Allowance (CCA) for the purchase of new farm machinery;
• Reducing the small business corporate tax rate;
• Adopting measures, such as investment tax credits to encourage capital expenditures and more private research and development;
• Creating a voluntary CWB.
The Wheat Growers note that moving to a voluntary CWB would increase farm profitability and generate greater economic activity and tax revenue. Currently the wheat and barley industry in western Canada is stagnant, with declining acreage and little private investment in research or value-added processing.
“In recent years, we’ve seen a tremendous boom in canola research and processing. Farmers have responded by increasing their canola acreage,” says Stephen Vandervalk, Alberta Vice President of the Wheat Growers. “If the goal of this budget is to generate increased economic activity, then we need to create the same investment climate for wheat and barley that we now have in canola.”
The Wheat Growers note too that creating a voluntary CWB would be one of the few measures the federal government could take that would not require any increase in government expenditures. The Wheat Growers urge all Parliamentarians to embrace this wealth-creating policy change.
