The Canadian Federation of Agriculture says it supports a private members bill proposing amendments to the Income Tax Act.
MP Guy Caron's proposed amendments in Bill C-274 would ease the tax burden on farmers seeking to transfer their businesses to the next generation.
CFA President Ron Bonnett says urgent efforts are needed to address the barriers hindering farm transfers to family members.
He points out over 50 billion dollars in farm assets are set to change hands over the next ten years as farmers age and future plans are made.
Bonnett argues that because of some of the current tax rules, farmers find it cheaper to sell their farms to outside buyers than to family members.
According to the CFA, if taxation barriers aren't addressed, we will see fewer and fewer family farms in Canada.
The Federation says 98 per cent of Canadian farms are currently family-owned and operated.
