Alberta's greenhouse industry says a new federal tax program could make expansion easier, but it might not help to lower food prices.
Ottawa announced Monday it will allow producers who buy or build new facilities to more quickly write off the cost of capital expansions on their taxes — a change from the current rules that limit write-offs to 10 per cent each year. That could improve cash flow projections, perhaps tipping the scale in a project's business case.
But tomato, cucumber and pepper producers stress that operating costs have a bigger impact on food prices than capital costs. They say that growing a business during uncertain times in the food industry is a difficult decision to make.
"There's a continued appetite for growth and expansion in the industry," Michiel Verheul, the head of the Alberta Greenhouse Growers Association (AGGA), told Radio-Canada. His group represents about 200 growers in the province. Federal tax support "really helps incent these investment decisions and increase the amount of locally produced produce in our grocery stores," he said.
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