E-Newsletter dsfsfa An update from MBP November 24, 2023
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Manitoba Government Making Agricultural Crown Land Leases More Affordable for Producers First Invoices Reflecting New Rent Reduction to Hit Mailboxes Today (November 24, 2023 Province of Manitoba news release)
ERIKSDALE—Effective immediately, the Manitoba government is increasing the temporary rent reduction scheduled for agricultural Crown land (ACL) forage leases to 55 per cent from 33 per cent for the 2024 growing season in recognition of the hardships producers have faced in recent years, Premier Wab Kinew and Agriculture Minister Ron Kostyshyn announced here today. “When the previous government made these changes, it hurt Manitoba producers in all aspects of their business including production and market costs, and made it harder for them to recover,” said Kinew. “Our government is committed to helping producers in the Parkland, Interlake and across the province. This rent reduction will essentially freeze rates to the same as 2023 and will provide producers with over $2 million in support.” Agricultural Crown lands are parcels of land leased to producers for agricultural use including grazing, haying or annual cropping. These lands are important public assets economically, environmentally and socially, essential to supporting and growing the livestock industry in Manitoba, noted the premier. “Today’s announcement is part of our promise to ensure affordability with ACL lease rates and begins to accomplish the goals set out in the minister of agriculture mandate letter,” said Kostyshyn. “We will continue to review the ACL program to ensure it best serves Manitoba producers.”
The Manitoba government encourages sustainable use of Crown land for multiple uses through a careful planning process, noted the minister, including the intensity of use and how different parcels may be developed. The ACL program contributes to ecological goods and services, and provides mitigation and adaptation to climate change, added the minister. “This announcement is a lifeline for Crown leaseholders,” said Dale Myhre, a veteran rancher with a cattle operation in the Parkland region. “We are so grateful that this government is listening to producers rather than announcing policies without consultation. With this reduction in Crown lease rents, beef producers have gone from feeling desperation to feeling hope again.” For more information on agricultural Crown lands, visit https://gov.mb.ca/agriculture/landmanagement/crown-land.
Manitoba Government Presents Throne Speech Welcoming 'A New Day in Manitoba' (November 21, 2023 Province of Manitoba News Release) The Manitoba government, joined by
community leaders from across the province, laid out its plan to work together, strengthen health care, lower costs for families and grow the province’s low-carbon economy with a geothermal home heating program in the speech from the throne, ‘A New Day in Manitoba,’ Premier Wab Kinew announced. “Today is a new day in our province,” said Kinew. “Our government is resetting the relationship with Manitobans. We are ready to get to work for you, alongside other levels of government, public servants, community leaders, health-care workers and families who are doing everything they can to build a better province. We know we can accomplish great things for Manitoba when we work together. Our plan will invest in the health care and supports you rely on, while being responsible with the province’s books.” Manitobans were welcomed into the Legislative Building for the ceremonies surrounding the throne speech, which included performances from Métis fiddlers Morgan Grace and Keith Ginther. “After two terms of cuts and closures, the new Manitoba government is presenting a responsible and ambitious plan to strengthen public health care, grow the economy and build a province where all Manitobans can thrive,” said Kinew. The premier noted the speech from the throne sets out a course to: • make Manitoba a leader in the low-carbon economy with an agreement from the federal government to deliver funding for a geothermal heat pump program that will connect homes across Manitoba with lowcarbon, affordable energy and offer new opportunities to train the next generation of energy workers;
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reduce wait times for surgeries and MRIs by bringing high-quality surgical care back to Manitoba’s public health-care system with new surgical slates and new diagnostic services; reduce the backlog in hospitals by expanding services at Grace Hospital, Health Sciences Centre Winnipeg, Concordia Hospital and Brandon Regional Health Centre; provide immediate relief to families by freezing hydro rate increases for one year and cutting the gas tax; grow Manitoba’s economy and create good jobs by encouraging investments in Manitoba industries like value-added manufacturing, trade and natural resources; take action to bring needed relief to beef producers on Crown land leases; work with front-line organizations, the business community and all levels of government to help Manitobans struggling with homelessness; and reset the relationship with Indigenous governments by working together on priorities in health care, education and economic reconciliation.
“Together, we can build the future we want for this province, where every family can afford to build a good life, where you have quality health care close to home and a government that works for you,” said Kinew.
Manitoba Government Introduces Legislation to Make Lives More Affordable for Manitobans by Lowering Fuel Taxes Changes would Introduce a Gas Tax Holiday for Six Months: Sala (November 23, 2023 Province of Manitoba news release) The Manitoba government is introducing
amendments to the fuel tax act, which would temporarily pause the collection of the provincial tax on gasoline for at least six months starting next year, Finance Minister Adrien Sala announced today. “We know there is an affordability crisis in Manitoba and across Canada,” said Sala. “This legislation would provide much-needed relief to Manitobans during these unprecedented times of high inflation. The bill would help everyone from the family rushing their kids off to different activities, to the small business owner who relies on their car for work.” Bill 3, the fuel tax amendment act (fuel tax holiday) would temporarily reduce the provincial fuel tax rate to zero cents per litre on gasoline, natural gas and diesel fuels for road use. This tax pause would remain in place for six months. During the fuel tax holiday, the 14-cent fuel tax rates on gasoline and diesel used to operate motor vehicles will be eliminated, the minister noted. “This would provide direct relief to Manitoba families struggling with rising costs and is a crucial step in our government’s plan to make life more affordable for all Manitobans,” said Sala.
There is no provincial sales tax on the purchase of fuel. Fuel taxes would continue to be collected on aviation, locomotive and propane as these are not included in the fuel tax holiday, the minister added. The average Manitoba family with two cars is expected to save approximately $250 during the six-month fuel tax holiday, the minister noted. MBP note: The proposed reduction would be in effect January 1 to June 30, 2024. The legislation as drafted states that “No tax is payable during the tax holiday by a buyer of gasoline, diesel or natural gas if the fuel is purchased for use in operating: (a) a motor vehicle on a roadway; and (b) a motor vehicle registered as a farm truck under The Drivers and Vehicles Act. In Manitoba a farm truck is defined as “a motor vehicle that is owned by a farmer and designed primarily to transport cargo and not passengers.” Under The Highway Traffic Act, "roadway" means the portion of a highway that is improved, designed, or ordinarily used for vehicular traffic, and includes that portion thereof that, but for the presence of a safety zone, would be ordinarily so used, but does not include the shoulder; and where a highway includes two or more separate roadways, the term "roadway" refers to any one roadway separately and not all of the roadways collectively.”
Industry Update CCA welcomes new provisions and exemptions for farmers in 2023 Fall Economic Statement November 24, 2023
On Tuesday, November 21st, the Honourable Chrystia Freeland, Minister of Finance, announced the Fall Economic Statement (FES). All signals pointed to a restrained FES and the Canadian Cattle Association (CCA) was pleased to see a few provisions and exemptions announced for producers. Particularly, we were pleased to see proposed changes to the Underused Housing Tax (UHT), right to repair equipment, and expansion of eligibility for tax credits that support using biomass for heat and electricity. While details were skim, CCA staff are looking into the specifics to see how beef producers will be impacted. Underused Housing Tax The FES included a proposed exemption on the UHT for homeowners who use their property as a place of residence for employees, such as a farm. CCA has advocated for this exemption with Minister Bibeau at the Canadian Revenue Agency and worked closely with other stakeholders. We are looking into details to ensure this exemption applies for housing for Temporary Foreign Workers. This exemption would take place for the 2023 tax filing and future years—it does not apply to 2022. As background, the UHT imposes a 1 per cent tax on ownership of vacant or underused housing in Canada. On October 31, 2023, Minister Bibeau announced a six-month extension to homeowners affected by the UHT. Affected homeowners have until April 30, 2024, to file their 2022 returns and will not have to pay any penalties or interest provided that they file by that date. The proposed changes on UHT announced during FES will include a consultation on the proposed legislation, with a deadline of January 3, 2024. Interested stakeholders can share their feedback by emailing Consultation-Legislation@fin.gc.ca. CCA will make a submission in response. Right to Repair The federal government announced amendments to the Competition Act that would prevent manufacturers from behaving in an anti-competitive manner by refusing to provide the means of repair of devices and products. This is good news for producers to be able to address any challenges with tractors and vehicles in a timely manner with fair competition. Tax Credits to Support Using Waste Biomass to Generate Heat and Electricity Eligibility of these tax credits will be expanded for a 30-percent clean technology investment tax credit to include systems that produce electricity, heat, or both from waste biomass, including from agriculture such as food and animal waste, manure, etc. There will also be a 15%-percent clean electricity investment tax credit to include systems that produce electricity or both electricity and heat from waste biomass, which will be available after Budget 2024 for those projects that did not begin construction before March 28, 2023. The Canadian Cattle Association is the national voice for Canada’s beef cattle industry representing 60,000 beef farms and feedlots. www.cattle.ca
Industry Update Employee Ownership Trusts Following the announcement in Budget 2023, which introduced tax rules to facilitate the creation of Employee Ownership Trusts, the provisions announced in the FES propose to exempt the first $10 million in capital gains realized on the sale of a business to an Employee Ownership Trust from taxation. This would be in effect in the 2024, 2025, and 2026 tax years. CCA will work with Finance Canada and other stakeholders to assess the impact of this change on producers. Sustainable Finance Finally, the federal government announced that the Departments of Finance, Innovation, Science, and Economic Development, and Environment and Climate Change Canada will develop options for making climate disclosures mandatory for private companies. The federal government will also work with regulators, the financial sector, industry, and independent experts to develop a taxonomy towards reaching net-zero by 2050. CCA will work with stakeholders and bring our environmental story into these discussions to ensure that producers’ voices are heard. The full text of the 2023 Fall Economic Statement can be found at https://www.budget.canada.ca/fes-eea/2023/report-rapport/toc-tdm-en.html For further information, contact: Michelle McMullen Communications Manager Canadian Cattle Association 403-451-0931| mcmullenm@cattle.ca
The Canadian Cattle Association is the national voice for Canada’s beef cattle industry representing 60,000 beef farms and feedlots. www.cattle.ca
Resolutions Suggestion Form for 45th Manitoba Beef Producers AGM MBP’s board of directors is now accepting in writing suggested resolutions for potential debate at its 45th Annual General Meeting set for February 8-9, 2024, back at the Victoria Inn Hotel & Conference Centre at 3550 Victoria Avenue in Brandon. If the resolution is deemed to be in order by MBP’s Resolutions Committee it will be considered for debate at the AGM. In consultation with the resolution’s author, proposed resolutions may be subject to editing by MBP for clarity and to ensure consistency of formatting across all resolutions. Please note: If the resolution covers off matters on which MBP is already conducting advocacy work, it may be deemed to be redundant and not taken forward for debate so as to ensure there is time to debate resolutions on emerging matters. As well, it is also important that proposed resolutions deal with something that is potentially achievable and clearly state the actions you are asking MBP to consider taking. The sample resolution format is below and two examples are on the second page. Send the proposed resolution and your contact information to info@mbbeef.ca to the attention of General Manager Carson Callum and Policy Analyst Maureen Cousins. Or, you may fax it to 1-204-774-3264 or mail it to 220-530 Century Street, Winnipeg MB R3H 0Y4. Resolutions will be accepted for consideration until 9 a.m. Friday, January 26, 2024. All resolutions for debate will be posted on MBP’s website. Whereas
Whereas
Be it resolved to recommend that Manitoba Beef Producers
Your name: Address: (include MBP District number if known) Phone Number:
Email Address:
Sample Resolutions Arising from Past Manitoba Beef Producers District Meetings Example 1 Whereas blackbirds cause significant losses to producers’ crops. Be it resolved to recommend that Manitoba Beef Producers lobby the Minister of Sustainable Development to include blackbird damage as eligible for claims under the Wildlife Damage Compensation Program for Crop Damage. Example 2 Whereas Manitoba Agriculture recognizes that bale grazing of beef cattle can save producers time, effort and money and help distribute valuable nutrients to the soil to enhance future productivity; and Whereas even though this practice is well utilized by Manitoba’s beef producers, they currently receive no compensation for wildlife damage to bales left in fields or pastures for feeding purposes. Be it resolved to recommend that Manitoba Beef Producers lobby the provincial government for changes to the Wildlife Damage Compensation Program for Crop Damage to ensure that baled hay that remains on fields for use as part of an extended feeding regime becomes eligible for compensation related to wildlife damage.