According to the source, the biggest impact on the industry is expected to come not directly from agricultural programs, but from changes aimed at making it easier to do business in Canada for all businesses. The efficiency mega reduction announced in September creates a negative marginal effective tax rate for businesses investing in the agricultural and manufacturing sectors. The arrangement may include irrigation systems, new barns, processing and packaging equipment, pasteurizers, and businesses that benefit from investments to increase efficiency, such as ice machines in aquaculture businesses.
However, the source stresses that there is an important requirement for this incentive: the discount may be more effective when it promotes capital investments that increase productivity; it may not only result in the same result in spending to reduce the tax burden. According to the analysis, growth in budget, agriculture and food policy points to a visible change that centers on human and sovereignty concepts. However, it is unclear whether the government has a broader policy plan beyond the National Food Safety Strategy and budget.
