Budget 2026, tabled November 5, 2026, includes several changes relevant to the agriculture sector. These include immediate expensing for farm machinery and expanded eligibility for tax rollovers within farm families, as outlined in a RealAgriculture summary published November 5 and updated November 6.
However, farms were excluded from the new $15-million capital gains tax incentive, the Canada Growth Incentive. The eligibility rules specifically exclude businesses involved in agriculture, fishing, forestry, and food and accommodation. As a result, farm owners will continue to rely on the existing Lifetime Capital Gains Exemption for qualified farm property, which is $1,275,000 in 2026.
The budget also proposes changes to livestock and breeding stock tax deferrals for producers affected by drought, flooding, or excessive moisture. Under the proposed amendments, these deferrals could be determined directly by the Minister of Finance, in consultation with the Minister of Agriculture and Agri-Food.
There are also proposed changes affecting the CFIA. The government intends to introduce legislative and regulatory amendments to increase maximum penalties under several federal acts, including the Agriculture and Agri-Food Administrative Monetary Penalties Act, Feeds Act, Fertilizers Act, Health of Animals Act, Plant Protection Act, and Seeds Act. The stated objective is to ensure penalties remain effective. These are proposed amendments, not changes that have come into force.
