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Kevin Hursh on Agriculture: Hursh Comment

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A policy suggestion

Posted in Uncategorized by Kevin Hursh
Sep 20 2010

I can’t claim credit for this idea. It can from a producer who would rather remain anonymous. The concept has been suggested by a number of farm groups, but the way this fall is going, it would now be particularly useful. Why not provide a tax incentive for the purchase of equipment related to grain drying? It could cover aeration equipment, grain driers, heaters, temperature cables, perhaps even new bins. To be fair, any purchases already made this year should be covered retroactively. The incentive could be as simple as increasing the capital cost allowance so that the assets can be depreciated more quickly. Producers who couldn’t benefit from more capital cost allowance this year could carry it forward to future years. Alternatively, a tax credit could be provided on these sorts of assets. This kind of government policy makes sense on a lot of fronts. More and better equipment would help producers preserve as much grain quality as possible in this very difficult year. It would be a way to help producers help themselves. It also has the benefit of helping to maintain markets around the world. Buyers are increasingly quality conscience and a lot of nasty problems can develop in grain that isn’t stored properly. Governments are going to be under pressure to do something for producers. This kind of broad policy concept is very easy to implement and it would have long-lasting benefits. I’m Kevin Hursh.

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