Community Food Donation

Tax Credit for Farmers

Presentation for Sustain Ontario

October 23, 2014

In the Beginning…..

Private Members Bill

• First introduced in 2010 – election was called in 2011. Bill passed

second reading with unanimous support from all parties

• Reintroduced in June, 2012 - prorogation of parliament in October

2013

• Reintroduced in May, 2013

Intention of Bill

– Encourage farmers to donate their unsold produce/products to

local food banks.

– Tax credit defrays some of the costs for a producer to collect,

process and deliver products to food banks.

– Serves to encourage farmers to donate.

Ontario’s Local Food Strategy

• VISION: Ontario consumers enjoy local food more often – and in

more places.

• MISSION: Increasing the consumption of local food in Ontario.

• GOALS:

– Ontario consumers are aware of, value and

choose more local foods.

– Local food is identifiable and widely available

through a range of distribution channels.

– Ontario’s agri-food sector is competitive,

productive and responsive to consumer demand.

• A comprehensive strategy covering:

– marketing and promotion, research, capacity building,

procurement, along with other initiatives.

3

Local Food Act, 2013

• The Local Food Act, 2013:

– requires the Minister to set voluntary/aspirational goals and targets

around food literacy, access to local food and increased use of local

food by public sector organizations – in consultation with stakeholders;

– enables the province to work with public sector organizations on goals

and targets, and share information on progress and results;

– requires the government to produce an annual local food report;

– proclaims a “Local Food Week”, beginning the first Monday in June;

– creates a tax credit of 25 per cent for farmers for donations of

agricultural products to eligible community food programs under the

Taxation Act 2007.

• Local food is defined as food produced or harvested in Ontario,

including forest and freshwater food, and foods made in Ontario if

they include ingredients produced or harvested in Ontario.

4

Regulation 153/14

• In addition to the amendment of the Taxation Act, 2007, Regulation

153/14 Community Food Donation Tax Credit for Farmers was

passed on August 15, 2015:

– Defines Agricultural Product

– Further defines Eligible Community Food Program

5

New Tax Credit for Farmers

• First of its kind in Canada

• Donations can be counted from January 1, 2014.

• Farmers are able to claim a non-refundable tax credit worth 25% of

the fair market value of certain agricultural products that they donate

to eligible community food programs.

Farmer

• A person who is eligible for the tax credit includes:

– an individual who carries on the business of farming in Ontario or

his or her spouse or common-law partner, or

– a corporation that carries on the business of farming in Ontario.

New Tax Credit for Farmers

Agricultural Product

• An item that, in Ontario, may legally be sold, distributed or offered for sale at a place other than the premises of the producer of the item as food or drink intended for human consumption and that is either,

– meat or meat by-products (within the meaning of Ontario Regulation 31/05 (Meat) made under the Food Safety and Quality Act, 2001), or

– eggs or dairy products, fish, fruits, vegetables, grains, pulses, herbs, honey, maple syrup, mushrooms, nuts or anything else that is grown, raised or harvested on a farm, or

– food animals (within the meaning of Ontario Regulation 31/05) which are alive and are suitable for and intended to be processed as food.

• Processed no more than to the extent necessary so that, in Ontario, it is permitted to be legally sold, distributed or offered for sale at a place other than the premises of the producer of the item as food or drink intended for human consumption.

New Tax Credit for Farmers

Eligible Community Food Programs

• Is engaged in the distribution of food to the public without charge in Ontario, including as a food bank;

• Is registered as a charity under the Federal Act;

• A person or entity must satisfy at least one of the following conditions in order to be an eligible community food program:

1. The primary purpose for which the person or entity distributes food to the public without charge in Ontario is to provide relief to persons who are destitute or who are lacking essential amenities available to the general public.

2. The person or entity,

a) Provides meals or snacks to pupils enrolled in an elementary or secondary school (within the meaning of the Education Act) or in a supervised alternative learning program (within the meaning of Ontario Regulation 374/10 (Supervised Alternative Learning and Other Excusals from Attendance at School) made under the Education Act), or

b) Oversees the administration of a program that provides meals or snacks to pupils enrolled in a school or program

Resources

• Materials including frequently asked questions can be found online

at the Ministry of Agriculture, Food and Rural Affairs website under

the “Local Food” link.

• From the OMAFRA site you can also access the Ministry of Finance

site which has more technical information.

Thank You!

Contact:

Ziyaad Vahed, Senior Policy Advisor

Economic Development Policy Branch

Ministry of Agriculture and Food/ Ministry of Rural Affairs

(519) 826-3261

ziyaad.vahed@ontario.ca