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By Alice McFarlane

calls for changes to tax laws

Family farmers call on Ottawa to modernize tax laws

Nov 21, 2025 | 1:25 PM

Family farmers across Canada are calling on the federal government to modernize tax laws prohibiting them from passing properties down to their nieces and nephews.

Under the Income Tax Act (ITA), a farmer can transfer qualified farm property to their child on a tax-deferred basis, but not to a niece or nephew, even if they have worked the same land.

Derryn Shrosbree is the founder of 33seven, a national advisory firm specializing in farm succession and estate equalization

He said the outdated restriction often triggers capital gains taxes in the millions, forcing younger family members to sell the farms they’ve helped sustain.

According to Statistics Canada, the average Canadian farmer is now 56 years old, and fewer than 1 in 12 farms has a successor under 40. Without immediate reform, tens of thousands of acres of ripe farmland could be lost to consolidation under control of foreign-owned agriculture giants.

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“The law no longer reflects today’s farming families,” Shrosbree said. “Generations ago, farmers had ten or twelve children, and there were always natural heirs. Today, many farmers either have no direct descendants, or their children have chosen different careers.”

Shrosbree said he has seen first-hand the many farmers who have nieces and nephews who spend decades managing crops, livestock, barns, and keeping the operations running.

“They deserve to inherit the farm without being forced out by unfair tax laws. These laws are outdated, and they need to change now,” he said.

Over the next decade, more than $50 billion in Canadian farmland will change hands, providing the government with an opportunity to prevent corporate takeovers of family farms and protect Canadian farming interests.

“Everyone says it’s time for ‘elbows up’, so let’s give more of our heirs a chance to keep family farming from disappearing altogether,” Shrosbree added.

The agriculture sector employs approximately 2.3 million Canadians – that’s roughly 1 in 9 jobs across the country. Shrosbree said amending Section 73(3) of the ITA laws to support intergenerational transfers beyond direct descendants would protect agricultural heritage in Canada, but also protect jobs, strengthen local food security, and rural economics.

Shrosbree said supporting family farms is a Canadian value and making the system fairer for all families benefits everyone from coast to coast to coast.

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alice.mcfarlane@pattisonmedia.com