Agriculture and Agri-Food, announced the Government of Canada will raise the interest-free limit of the Advance Payments Program (APP) from $100,000 to $250,000 for the 2025 program year. This is the portion of advances on which the Government of Canada pays the interest on behalf of agriculture producers. This includes those in the horticultural sector who grow non-food crops, such as nursery trees, shrubs and non-edible ornamentals. The Advance Payments Program offers low-cost cash advances based on the expected value of products. Since it takes time for crops to grow, it can be months before products are ready for the marketplace. This support allows producers to access necessary funds to purchase essential inputs and cover operational costs for growing crops, without the immediate pressure of sales. By enabling producers to sell their products when market conditions are most favourable, the APP helps provide relief to some of the financial challenges posed by trade uncertainties. “Raising the interest-free portion of the Advance Payments Program will give our hardworking farmers [and growers] some extra cash flow and savings as we head into the 2025 growing season,” Minister MacAulay said. “In the face of different challenges and trade uncertainty, our hardworking producers continue to show their resilience and deliver top-quality products for Canadians, and the world.” Under the APP, cash advances are calculated based on up to 50 per cent of the anticipated market value of eligible products that will be produced or are in storage. With the interest-free limit increased to $250,000 for 2025, participating producers could save up to $5,000 in interest costs. This change will represent estimated savings of up to $65 million for over 13,000 producers. Apprenticeship service and skilled trades support The Canadian Apprenticeship Strategy is a funding program that supports skilled trades workers and their employers. Although this support is not specifically in place to address the trade situation, it
can help create stability and maintain high standards in the workplace. Tuition for apprenticeship programs is subsidized to lower the barrier of entry for participants, and apprentices receive EI benefits while completing in-class training. Those in the skilled trades experience relative job security during economic downturns due to a constant need for maintenance and repair services. While a trade war creates uncertainty, becoming or supporting a landscape horticulturalist is a sound choice. For employers: The Apprenticeship Service supports employers in hiring first- year apprentices in 39 Red Seal trades, including Landscape Horticulturalist (or Horticultural Technician, as it is known in Ontario). While the program is currently under renewal, it has historically provided financial incentives to small and medium- sized employers, offering $5,000 for each eligible new first-year apprentice hired, and $10,000 if the apprentice is from an equity-deserving group. This initiative, offered through Employment and Social Development Canada (ESDC), aims to build a skilled, inclusive, certified and productive trades workforce, which is essential for the growth and sustainability of the green trades. The apprenticeship job creation tax credit (AJCTC) is a non-refundable investment tax credit (ITC) that allows eligible employers to claim 10 per cent of the eligible salaries and wages paid to eligible apprentices. Employers can claim a maximum credit of $2,000 per year for each eligible apprentice. Any unused credit can be carried back three years and carried forward 20 years. Individual provinces and territories may have additional financial incentives for employer sponsors, such as the Trades and Occupation Wage Subsidy Program in Northwest Territories or the Paid Work Experience Tax Credits in Manitoba. For apprentices: Apprentices also
receive support through various tax credits, scholarships and loans. Apprentices can access up to $16,000 in EI benefits, and up to $20,000 in interest-free Canada Apprentice Loans ($4,000 per period of technical training, for up to five periods). The Tradesperson’s Tools Deduction is an annual tax deduction of up to $500 to help tradespeople cover the costs of tools necessary for their trade. Again, provinces and territories may offer additional support for apprentices, such as the Graduate Retention Program (GRP) in Saskatchewan or the Office to Advance Women Apprentices (OAWA) in Newfoundland and Labrador. Visit red-seal.ca for more information about apprenticeship support. Planning for whatever comes next It’s entirely possible that the trade war situation will look completely different by the time this article goes to print — for better or worse, we can’t say. Unprecedented challenges are unpredictable like that. But having survived the COVID-19 crisis, the ensuing soft economy and the mayhem of the new U.S. administration’s first 100 days, it might be wise to assume there’s something else just lurking over the horizon. But don’t throw your hands up in despair just yet. There’s plenty to be done to strengthen your business relationships, finances, operations and resiliency before that happens. Look for future initiatives from government agencies and seek out help before you think you need it. And don’t forget to follow the Canadian Nursery Landscape Association (cnla.ca) or your provincial landscape trade association for ongoing updates. Remember, the grass always needs mowing. The snow needs shovelling. And the need for serene landscapes grows greater and greater. LT
Want to know more about Canada's current horticulture trade situation? Read our supplemental overview for more context and details on our website at gfl.me/hbSI
24 | LANDSCAPE TRADES
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