Farm Succession Reform Receives Another Major Boost in Ottawa

As conversations about the future of Canadian agriculture continue to grow louder across the country, the movement to modernize federal tax laws governing farm succession received another major boost in Ottawa recently.

Ontario Senator Robert Black rose in the senate to explain that the current rules no longer reflect the realities of today’s family farms.
Black delivered a thoughtful and strongly worded statement, calling on the federal government to amend Section 73(3) of the Income Tax Act. The provision currently allows parents to transfer farms to their children with a capital gains tax deferral, but excludes nieces and nephews from receiving the same treatment.


For many farming families, that distinction has become increasingly difficult to understand.

“The capital gains deferral is intended to support the succession of family farms,” Senator Black said during his remarks on Parliament Hill. “However, the current rules do not include nieces, nephews or other extended family members, even in situations where they have worked on and operated the family farm for many years.”

Senator Black went on to note that the legislation “fails to reflect the realities of modern farm families,” adding that reform is needed to help preserve Canadian farms for future generations.

The discussion has steadily moved into the national spotlight throughout 2025 and 2026, driven in large part by the advocacy work of Derryn Shrosbree, founder of Farmstrong.

A farmer himself, Shrosbree has spent the past year speaking with farm organizations, media outlets, and political leaders across Canada about the growing urgency surrounding farm succession planning.

"This issue is deeply personal for many families,” said Shrosbree. “There are nieces and nephews across Canada who have devoted their lives to helping build and sustain family farms, often for decades. They are part of the fabric of those operations and communities. The law should recognize that reality.”

Shrosbree says many farmers worry outdated tax rules could unintentionally force farms to be sold, divided, or transferred outside the family at a time when preserving Canadian farmland has never been more important.

With billions of dollars in agricultural assets expected to change hands over the next decade, supporters of reform believe the moment for change has arrived. For many families, the conversation is about far more than tax policy. It is about legacy, continuity, and ensuring that the next generation has the opportunity to continue the work and traditions that Canadian farm families have built over generations.