Measure needed as many farmers approach retirement age.   Ottawa--The Canadian Federation of Agriculture (CFA) and Grain Growers of Canada have welcomed the Senate's final approval of Conservative MP Larry McGuire's bill to ease intergenerational transfers of farms and other small businesses. With billions in family farm assets needing to change hands in the coming years, the bill's passage comes at a critical time for the sector, CFA President Mary Robinson said. “The average age of Canadian farmers, now at over 55 years, continues to climb and farm debt is at an all-time high,” she said. “If we want to ensure the next generation of family farms is in strong financial health to capitalize on the immense opportunities facing our sector and drive Canada's economic recovery, we cannot burden them with undue tax liabilities from day one.” William Van Tassel, GGC vice-chair, said, “Canadian farms are 98 per cent family-owned and operated and we want to keep it that way. Farm families today face a myriad of challenges, from the increasing cost of land to the capital requirements of those entering the industry.” Maguire's bill will eliminate “the burden of unfair tax rates that make it difficult to keep businesses under family ownership,” he said. It amends the Income Tax Act to enable farm families, family fishing corporations and small businesses to pay the same tax rate when selling their operations to a family member as they would if sold to a third party. Previously in the case of a farm sold to a family member, the difference between the sale price and the original purchase price is considered a dividend. However, if the business is sold to a non-family member, the sale is classified as a capital gain. A capital gain is taxed at a significantly lower rate and allows the seller to use the lifetime capital gains exemption. Robinson said farm families will now “not have to face an additional tax bill, potentially in the hundreds of thousands of dollars. This reduced financial strain on the next generation will directly contribute to a more robust and vibrant Canadian Agriculture sector.” Maguire's bill will contribute directly to the sustainability of thousands of family farms in the next few years alone. “We have never been seeking preferential treatment for family farms but have been seeking to ensure the Income Tax Act puts intergenerational farm transfers on a level playing field as those selling to a stranger,” she said. The bill was supported in the Commons by the Conservatives, NDP, Bloc Quebecois, and 19 Liberal MPs and received final approval in the Senate just before the start of the summer recess.