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Other farmers may want to make some changes, such as reconsidering how they invest funds not currently part of the farm opera on, to take advantage of recent relief announced for these "passive" investment earnings. They may want to consider vehicles such as Individual Pension Plans and other more complicated investment strategies. Ini ally, there was some thought that farmers who own land may wish to accelerate land transfers to family members (perhaps before the end of 2017), but this may no longer be necessary (depending on the changes which apparently are to be announced by the government to back off on these proposals). Farmers may wish to join other taxpayers to ask the government to tax a one earner couple at the same rate as a two earner couple. What is the top concern that you are hearing from Alberta farmers regarding this proposed legisla on? Gallimore: Farmers are par cularly incensed that sales of farm land involving family members may result in tax that is higher than sales not involving family (incen ve to sell to third par es not family). Fortunately, it appears the government may back down on this item (again details not released at the me of wri ng). Farmers are also upset about the changes that would apply tax rates in excess of 50% on investment earnings in companies which seems to discourage a farmer from saving up funds to purchase land, other farm assets like equipment or simply to have a cushion for a "not so rainy" day. Do you recall any previous proposed tax legisla on that concerned farmers to the same degree? Gallimore: I can't recall anything this significant in my career. The ini ally proposed rules are a very significant change to tax law in this country and very wide ranging. It does seem the government is ge ng the message that perhaps they have gone too far, and will significantly change the proposals. What can farmers do to insulate themselves against future tax changes? Gallimore: While I always say "don't let the tax tail wag the dog," I do believe farmers can take ac on to minimize impacts of any future changes. For example, if a farmer is considering the transfer of farm assets to a family member, and a rollover currently exists to allow that to happen without a tax burden, then the farmer should not procras nate on ge ng that done. Also, a farmer may be able to use tax incen ves like the capital gain exemp on currently (for example sale of land to a company or family member). If that is the case, do it (rather than wait for a third party sale or death to use those rules)! This avoids the risk of tax law removing those incen ves before they are used. Finally, a farmer should get a li le professional advice as early as possible to allow them to set up a structure that ensures that they only have to pay their fair share of tax. "While potentially all farmers would be impacted by some of the proposals, those doing business through a company will have the largest issues to worry about." P U L S E C R O P N E W S W I N T E R 2 0 1 8 | 7

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