Alberta is set to launch a new agriculture tax credit program this spring.
In a release Wednesday, the province said the program is designed to ensure Alberta “maintains a competitive edge over other jurisdictions and is able to maximize the number of opportunities that help grow the economy and create jobs”.
The province says in the upcoming budget, the Alberta Agri-Processing Investment Tax Credit will provide a 12 per cent non-refundable tax credit to support this growth and attract investment. To be eligible, corporations must make a minimum capital investment of $10 million in value-added agri-processing in Alberta.
“Alberta has the fundamentals to take our value-added agriculture industry to new heights and meet the increasing global demand for food,” said Nate Horner, Minister of Agriculture and Irrigation.
“The new agri-processing tax credit will allow us to attract large-scale agri-food projects that will help grow our industry, increase opportunities for primary producers, create jobs and feed the world.”
According to the release, food manufacturing sales reached a record $20.1 billion in 2021 and the sector employed 22,400 Albertans.
The food manufacturing sector was also the largest manufacturing industry in the province, accounting for 23.8 per cent of total provincial manufacturing sales in 2021.
And food demand is on the rise over the next three decades. According to the province, global demand for food is expected to increase by up to 56 per cent by 2050.
“Population growth, a changing climate and increased costs of food are all indicators that food security will be a growing challenge,” said Rural Municipalities of Alberta president Paul McLauchlin.
“The new agri-processing tax credit program is a great incentive that will continue to highlight rural Alberta as the home of an innovative agriculture industry that plays a vital role in supporting food production.”