Federal Budget Promises Lower Costs, Interest Relief for Farmers

The 2024 federal budget, tabled today, promises several benefits for Canadian farmers.

Finance Minister Chrystia Freeland made little mention of agriculture in her speech following the tabling of the budget this afternoon, though she touched on issues like carbon pricing and green technology.

However, chapter three of the budget, titled “lowering everyday costs” features three sections on reducing costs for farmers.

The first, “Lower Costs and Fairer Treatment for Farmers” announces that the government will be launching consultations on interoperability in June.

“This is part of broader work the government is undertaking to support the right to repair and interoperability,” the section reads.

The section “Interest Relief for Farmers” proposes $64 million in funding to Agriculture and Agri-Food Canada “to support a $250,000 interest-free limit on Advance Payments Program loans for the 2024 program year.”

Finally, “Protecting Farmers from the Costs of Climate Change” reads that “the federal government is committed to working with industry partners, such as the Canadian Cattle Association, to explore avenues to ensure farmers get support quicker and more efficiently in times of need.”

In her speech, Freeland highlighted the Canadian carbon rebate, which she said in French will be “delivering hundreds of dollars to Canadians every three months.”

“Eight out of 10 Canadians get back more than they pay in the provinces where the federal price on pollution applies,” she continued.

“We are delivering on our promise to return carbon pricing proceeds to small and medium-sized businesses.”

She said that the Canada Carbon Rebate for small businesses will “soon return over $2.5 billion directly.”

The budget’s primary focus is housing, though it also involves the launch of a new national school food program and the first phase of a national pharmacare plan.

On housing, Freeland said the government would be focusing on “making life cost less.” with a plan to build nearly four million news homes by 2031.

“It begins with building more homes at a pace and scale not seen since after the Second World War,” Freeland said.

The budget also includes an outlined electric vehicle supply chain investment tax credit, which will “introduce a new 10 per cent … tax credit on the cost of buildings used in key segments of the electric vehicle supply chain.”

Freeland said this is “to attract companies investing across the electric vehicle supply chain.”