Equipment Makers Want Accelerated CCA

CALGARY - Mar 4/05 - SNS -- Western Canada's farm equipment dealers want the federal government to offer competitive Capital Cost Allowances (CCA) in the tax system which are more competitive with those available to U.S. farmers and industry.

"U.S. farmers, equipment dealers and manufacturers have benefited from accelerated depreciation schedules that have been in place for the last two years" said Jim Backus, President of the Canada West Equipment Dealers Association (CWEDA). "Canadian farm equipment dealers have been asking the federal government for changes to the CCA to match the incentives that American farmers have had."

The agricultural community has faced severe challenges because of BSE, low commodity prices, a late harvest and severe frost last fall. Although federal and provincial governments have responded with support payments to producers, the scope of the impact has been much wider. The resulting spin-off effect has been devastating to all related agri-businesses.

The Canada West Equipment Dealers Association has raised this issue with the Department of Finance for the past two years. The association believes that accelerating the depreciation rates for farm equipment will assist the farmer in their reinvestment in the necessary equipment that is needed in their farming operations. The resulting increased demand would also provide a stimulus to agricultural equipment manufacturers and their retail dealer network.

"Canada's policy ignores the challenges that we have faced in the past two years," added Backus. "We believe that accelerating the depreciation schedule on farm equipment is a simple approach that would benefit all aspects of the equipment industry."