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Veteran Advisor

Re: College Student and Government controls


@smokeyjay wrote:

Not trying to start a border dispute here, but I have relatives living north of the border.  Their neighbors farm in Ontario and during a visit with them, they informed me in person they received tax credits against their annual income taxes, and were in fact provided as a "subsidy" for crop producers.  Perhaps, there's no "official" farm program that provides a direct subsidy in Canada, but there is something that's not being reported.


No dispute smokey.

Only 'tax credit' against annual income I can think of would be what is supposed to be to help low income people. All people, even city dwellers, filing a tax return are automaticaly paid that if their income is below a certain amount. Would have to look it up to be sure but I think it is pro-rated from taxable income below maybe $20,000. Comes quarterly year after your income is low enough. Do not think it comes to more than $2-300 each quarter. I make too much to get it and my income has not been very high in recent years.

All citizens get it if their income is low enough.

Not sure what we get that is just for crops. USed to be some 10-20 years ago but they stopped them because they thought they would be countervailable.

 

There are a couple of plans that work like an income insurance plan that are funded partially by government but is for all farmers except supply managed (feathers and dairy). To get into them you have to enroll in crop insurance and the plans. You then have to submit an 'enrollment fee'. Accountant has to send additional info with your income tax about inventory which can impact the calculation.

They then are triggered IF your taxable income falls from previous level with the inventory calculation by the government with their figures for inventory values. These are on your total income not just crops unless you only grow crops.

If/when you trigger a payment or get $$ from them you are of course lowering your income level for future payments. It is considered a 'ratchet down' program since you will only collect occasionally or for a couple of consecutive years and your level will be so low there will be nothing to collect from.

So yes we do have government payouts but they are designed to pay only in severe cases of lower than your usual income. They help if you have a drought maybe and they are seldom claimable, for much anyway, if you are diversified. One income stream usually holds your total above claim level even if the other income stream is low.

BTW IF you have a claim it will take at least 12 months for all the papers to be filed, calculations made and payments issued.

For example if I had a claim on 2010's income, which of course would have been happening 12 months ago now, the forms will finally all be filed in June of 2011. Then the government will do their computing and announce that I had a claim by sometime in the fall of 2011 and if I was lucky the cheque would come in December of 2011 and I know it is often January or February before the payments arrive. 24 months after the income shortfall started and it ain't much, just designed to help a little to maybe keep someone from going broke in a hurry.

 

Net is there are no bankable payments that come to me that I can plan on or expect only a small payment years after the income shortage occurred.

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