Two major farm organizations welcomed measures in last week's federal budget aimed at encouraging investment and supporting farm succession but warned that more action is needed to address rising costs and protect grain transportation.
In separate statements Monday, the Agricultural Producers Association of Saskatchewan (APAS) and Grain Growers of Canada (GGC) praised the budget's Productivity Mega Deduction, which allows immediate tax write-offs for eligible capital investments, including farm machinery and equipment.
APAS president Bill Prybylski said the measure addresses a longstanding priority for Saskatchewan producers facing significant costs to modernize their operations.
Both organizations also welcomed proposed changes allowing tax-deferred farm transfers to nieces, nephews, and their descendants beginning Jan. 1, 2027.
GGC interim executive director Kate Sauser said the measures provide greater certainty for investment and recognize different approaches to family farm succession. However, she emphasized that implementation and improved market access will be critical.
GGC expressed disappointment that the budget failed to address several immediate concerns, including tariffs on Russian fertilizer, exceptional farm fuel costs and the lack of mandatory grain export sales reporting.
The organization also criticized the absence of stronger protections against grain transportation disruptions, saying proposed labour relations changes fall short of recommendations from the Keep Grain Moving coalition.
GGC chair Scott Hepworth said tax incentives alone cannot address the financial pressures facing grain producers.
APAS also welcomed proposed improvements to agricultural lending, livestock tax deferrals and regulatory requirements, along with the federal government's commitment to a National Food Security Strategy.
Other farm organizations generally welcomed the budget while identifying remaining gaps.
The Canadian Federation of Agriculture praised measures supporting farm transfers, research and agricultural labour but called for additional action on diesel costs and tax competitiveness.
The Ontario Federation of Agriculture applauded investment incentives, farm succession changes, and food security commitments, while the Canadian Cattle Association supported the expanded farm rollover provisions.
Despite the positive response, farm organizations emphasized that the ultimate measure of the budget's success will be whether its commitments translate into improved profitability, competitiveness and long-term viability for Canadian producers.
