9 The Trusted Source for Canada’s Pork Producers Better Pork | August 2024 ers. It’s important here to drill down and put actual numbers in the plan.” Then, as one of the two certainties in life, it’s time to talk about taxes. Since there are usually significant sums involved, the parties need a tax plan to efficiently move business assets from one generation to the next. The fourth pillar is one that contributes in large part to the success of the other three: Communication. “Here is our general idea … this is what we know and don’t know … these are the people we want at the table,” says De Groot. “You want to create a dialogue so that those who are directly impacted by the plan, as well as other family members, know exactly what is happening. Also, set aside specific times to talk so the subject doesn’t always take a back seat to operational topics like pig flow and shipping dates.” In forging a plan, it can help to build a team of experts, which could include your accountant, lawyer and financial planner. Producers are also wise to set specific dates as deadlines to get things done, rather than just talking about timelines. “I have families who have had a ‘three-year’ timeline in place for the last nine years,” says De Groot. “Including concrete dates will motivate behaviour and keep you on track.” Experts often refer to succession plans as “living documents” that must evolve with the times, and the new rules around capital gains are a prime example. As of June 25 this year, 66.7 per cent of capital gains realized on or after that date were to be included in income for tax purposes, up from the previous 50 per cent. “The news is mixed, as there is an exemption for qualified farms and farm corporations on capital gains up to $250,000,” says De Groot. “Specifically in succession, there are a few different tax policies that can work together to minimize tax impacts. This specific tax impact (the increase from 50 to 66.7 per cent) is felt more when selling assets outside of succession, though not always. “At the end of the day, speaking with an accountant is key, as tax planning is more crucial now than ever.” In the wake of the announced changes, De Groot is seeing a flurry of activity and interest around succession planning, which, as she points out, is “not necessarily a bad thing.” Making those plans, and keeping them up to date, may be particularly needed in the pork sector, given the pace of change in that industry. As De Groot points out, “you only make a succession plan once in your life, so you need to get it right.” BP Specialty pellets designed with your pigs and bottom line in mind! Available Sizes • Mini • Regular • Crumbles Quality • Very Few Fines • Piglets Love Them! Price • Very Competitive Baby Pig Pellets CONTACT KENPAL TODAY! Kenpal Farm Products Inc., 69819 London Rd, RR #1 Centralia, ON, N0M 1K0 Tel: 519-228-6444 • Toll Free: 1-800-265-2904 • Fax: 519-228-6560 kpalen@kenpal.on.ca • www.kenpal.on.ca Mini Pellets Regular Pellets EXPERT ROUNDTABLE GEOFF GEDDES Geoff is a freelance writer and editor specializing in agriculture. He is based in Edmonton and has written for farm magazines, blogs, websites and social media.
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