The federal budget is a lengthy document and it can be challenging to digest all of the information in a 24-hour period—but the Grain Growers of Canada (GCG) says there are some targeted wins for grain farmers, but cautions other measures could undermine farm competitiveness.

Topping the list of positives was the permanent reversal of the capital gains tax increase announced by the former Trudeau government last year.

“Budget 2025 acknowledged the impact that the capital gains tax increase would have had on family-run grain farms across Canada by permanently reversing it,” said Kyle Larkin, Executive Director of GGC. “This will ensure that family farms can continue their succession planning with certainty and that the next generation of farmers does not pay millions of dollars more in taxes.”

The GCG praised the significant money being allocated for trade diversification and infrastructure upgrades. With nearly 70 per cent of Canadian grain exported, efficient port infrastructure remains vital to keeping products moving to global markets on-time and competitively. It also wants the Port of Vancouver to be added to the next major projects list.

Missing from the budget was any commitment to extend interswitching, which expired in March 2025. The interswitching pilot project allowed grain companies to access competing rail lines, reducing shipping costs and improving service.

CGC also expressed concern over plans to reduce Agriculture and Agri-Food Canada’s operating budget by 15 per cent over three years, a move that could undermine public research and breeding programs essential to innovation and productivity. Larkin says the CGC will monitoring the situation in the coming months.