Canadian agricultural co-operatives — representing over 100,000 members — are calling on the federal government to make the Tax-Deferred Co-operative Share Program (TDCS) permanent in the Income Tax Act.
Launched in 2005, the TDCS allows co-operatives to issue patronage dividends in the form of shares, deferring taxation until those shares are redeemed. This tax deferral, which costs the government only $3 to $5 million annually, has a significant impact by supporting long-term planning, financial stability, and capital investment in rural communities.
In the face of increasing global trade tensions and unpredictable market conditions, the program serves as a critical financial tool, enabling Canadian co-operatives to remain competitive and resilient. Permanently establishing the TDCS Program would not only strengthen food security and rural economies, but more critically, support Canada’s broader competitiveness objectives by enabling agricultural co-operatives to remain resilient in the face of global trade volatility, invest in growth, and deliver consistent, high-quality products to both domestic and international markets—all with minimal fiscal impact and significant economic returns.
Co-operatives and Mutuals Canada (CMC) is actively advocating for this policy change. As the national organization representing co-operatives and mutuals across all sectors, CMC is mobilizing its members, engaging with relevant government departments, and pushing for the long-term continuation of the TDCS. Through its sustained efforts, CMC advocates for an enabling fiscal environment that supports the growth of co-ops as key economic engines in Canada.
With the program set to expire in December 2025, now is the time to act. Stakeholders in the agricultural sector are urging the government to secure the future of the TDCS — ideally through the Fall Economic Statement or at the earliest opportunity as part of the International Year of Cooperatives 2025.
👉 Read the full briefing note here (PDF)
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