IREC Report sees importance in PCTFA
The UPA (Union des producteurs agricole) has reacted favorably towards the latest IREC (Institut de recherché en economie contemporaine) report. The report insists notably on the importance of the PCTFA (Program de credit pour taxes foncieres agricole) for those producers who profit from it. The report also noted how this program contributes to the establishment of the next generation of producers. IREC also saw the value in the UPA who, for several years, has been drawing attention to the factors that increase the costs of PCTFA, such as the increase in the value of farmland, the method used to determine the value of the farming enterprises and the low number of municipalities who apply a distinct tax, the norm in other places in the world, including Ontario. After a world review of farm taxing policies, IREC has shown that preferential treatment of agricultural properties with regards to property tax rates is generally done. “Even when it takes different forms, this type of intervention is not exceptional. It is actually a world norm essential to ensure the competitiveness of Quebec farm producers,” said Marcel Groleau, the president of the UPA, adding that the government transfers to Quebec farmers is less than the average of the countries of the OECD and that producers assume higher production costs than businesses from other economic sectors. It takes $8 of investment to generate $1 in farm revenue.
The UPA hopes that the recommendations of the report will be looked at by the Quebec government when it comes to the future of the PCTFA.