The Pros And Cons Of Deferred Grain Income

When the federal budget was announced last March, many missed the announcement of a consultation program exploring whether or not the Canadian government should continue allowing farmers to defer grain income. Part of the government's efforts to promote a fair tax system, this program gave everyone affected by this issue an opportunity to provide input. There are several credible arguments for and against deferred grain income, but these are the most widespread and persuasive positions.

FOR: It helps farmers navigate a volatile industry

Farmers are in an extremely volatile industry, mostly because of factors beyond their control. Examples include the weather, commodity prices and government funding. Since this industry is so volatile, it's difficult for farmers to manage their income without having a deferral program in place. In a year of record production, farmers could be taxed heavily, while in other years – when production and prices aren't as good –