New tax credit gives farmers incentive to donate more to food banks

Canadians waste 40 per cent of the food we produce, but the introduction of a new farmers’ food donation tax credit could change that.

Today at the Vancouver Food Bank, Minister of Agriculture Norm Letnick announced that B.C. farmers and other fresh food producers will receive a tax credit worth 25 per cent of the fair market value of food donated to food banks and other charitable organizations.

“The credit is available for the next three years so in 2016, 2017, 2018 the 25 per cent tax credit is available,” said Letnick.

“After three years we will review it to see how well it works and what needs to be tweaked.”

The food they are being encouraged to donate is fresh and healthy – but due to blemishes or irregular sizes it is deemed undesirable by the mainstream consumer market. The Vancouver Food Bank purchases about 700,000 pounds of this kind of food at a discounted rate every year. Producers also currently donate some of this food, but not all of it.

“While some farmers and producers do provide fresh food donations to food banks, these donations are limited in amount and are unpredictable infrequency,” said Laura Lensink, Executive Director of Food Banks BC.

“Unfortunately, farmers often find that making these donations to food banks is counting in resources, time and worker costs, and so they are prohibitive to making donations.”

The tax credit means food producers will no longer have to worry about being out of pocket when they make donations. It’s based on similar programs in Ontario and Quebec where it reduced waste, helped farmers financially and improved the diets of those in need.

“It will encourage farmers to harvest product that doesn’t meet industry standards,” says Aart Schuurman Hess, CEO of the Greater Vancouver Food Banks Society.

“Many farmers leave that in the ground and turn it back into the soil – now farmers will say if I give to the food bank, I will get a reward for that.”