For farmers and agri-food players, 2025 started on a good note. The prorogation of the Federal Parliament compromises the future of some controversial legislative proposals for the sector.
Published at 7:30 a.m.
When MPs return on March 24, the government will likely be overthrown, potentially leaving several problematic bills to die on the order paper.
Among the most notable losses are Bills C-282 and C-293, as well as proposed changes to the taxable portion of capital gains. For those of us who care about the food and farm economy, this is a rare victory for pragmatism over politics.
Capital gains reform: a crisis averted
One of the most controversial proposals aimed to increase the taxable portion of capital gains from 50% to 66.7% for individuals and businesses with gains of more than $250,000. For farmers, who often rely on selling land, equipment or quotas as part of estate planning, this change would have represented a significant financial burden.
The Canada Revenue Agency (CRA) is still considering enforcing this increase. Farmers and agribusinesses need policies that promote growth and sustainability, not measures that create additional economic barriers. This proposal illustrated the chaos and disconnect in Ottawa’s economic approach in recent years.
A poorly oriented commercial policy
Supported by a Bloc Québécois MP, Bill C-282 aimed to grant permanent immunity to sectors under supply management – poultry, eggs and dairy products – during future trade negotiations. This would have prevented Canada from making further concessions on these industries, such as duty-free access to foreign products such as cheese, butter, chicken or eggs. If supply management plays a crucial role in stabilizing certain agricultural markets, the approach proposed in this bill would have considerably reduced Canada’s trade flexibility.
-Currently, tariffs on supply-managed products can exceed 300% for imports, a level of protectionism that angers trading partners, particularly the United States. Donald Trump’s administration, back in the White House, is already threatening to impose tariffs on almost every product, including the $42 billion in agri-food exports that Canada sends to the South each year . Bill C-282 would have made supply management an obvious target in bilateral discussions, exposing the sector to targeted retaliation.
Protecting less than 2% of the Canadian economy at the expense of the remaining 98% is simply bad trade policy. Supply management has worked effectively for decades without the need for such draconian legislative measures. The bill’s reported death comes as a relief to those who value balanced trade deals that benefit the entire economy.
The drift of the “Vegan Act”
Dubbed “Canada’s Vegan Act,” Bill C-293 was another controversial bill. Touted as a way to improve pandemic preparedness, it included provisions to “de-risk” animal protein production and promote the consumption of alternative proteins. Although innovation in food production is important, this bill crossed a line by appearing to impose a particular dietary program – in this case, vegetarian and vegan – under the guise of public health.
Such proposals alienate farming communities and undermine consumer choice. The Canadian food system thrives on its diversity, and any attempt to dictate what Canadians should eat goes against the principles of food democracy. Consumers must remain free to make their own food decisions, without excessive interference from Ottawa.
The rejection of the increase in taxes on capital gains as well as the disappearance of Bills C-282 and C-293 constitute a victory for the agri-food sector and Canadian consumers.
