Making the Tax-Deferred Co-operative Share Program Permanent

Co-operatives and Mutuals Canada (CMC) is advocating to make the Tax-deferred Co-operative Share Program (TDCS) program permanent, for the benefit of the agriculture co-operatives throughout Canada.

The TDCS is a crucial capitalization and resilience mechanism for agriculture co-operatives. These co-operatives make an important contribution to regional development and Canada’s rural economy. Their existence supports family farms and small agricultural businesses across Canada.

This program was created in 2005 for a 10-year period. However, it has been renewed twice due to the recognition of its importance: in 2015 for a period of five years, and again in 2020. Its purpose is to help agricultural co-operatives meet their capitalization needs. This was based on the December 2004 report of the House of Commons entitled “Study on Small Business Tax Measures: Canada’s Agricultural Co-operatives”.

This $5 million per year tax deferral program provides increased stability and helps the co-operative business model remain a viable option for agribusinesses, while allowing Canadian co-operatives to be stronger in the face of international competitors and current economic challenges.

CMC, with the support of Agropur, Sollio Cooperative Group, Exceldor, Gay Lea Foods and United Farmers of Alberta (UFA), representing more than 100,000 of producer-members among them, CMC advocates to make the TDCS program permanent before the next scheduled renewal in 2026.