APAS Welcomes Major Step Forward for Farm Investment

REGINA, SK – A new federal tax proposal could encourage Saskatchewan producers to reinvest in machinery, equipment and technology—an approach the Agricultural Producers Association of Saskatchewan (APAS) has been advocating for. APAS applauds the federal government's announcement of the Productivity Mega Deduction, a proposed tax measure that would permanently allow immediate expensing of most depreciable capital investments acquired on or after September 15, 2026.

The proposal aligns with APAS’s longstanding call for accelerated capital cost allowances to encourage investment in farm machinery, equipment, and productivity-enhancing technology.

“APAS asked for this, and the federal government has now proposed it,” said APAS President Bill Prybylski. “For a capital-intensive industry like agriculture, allowing producers to immediately expense eligible investments can help farms modernize, improve productivity and remain competitive.”

Under the proposal, businesses would be able to deduct the full cost of most eligible depreciable capital investments in the year the asset becomes available for use, rather than depreciating the cost over many years under existing Capital Cost Allowance rules.

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