Why Every Farmer Should Know About the B.C. Farmer Tax Credit.
At Heppell’s, we’re a fifth-generation family farm in Surrey, B.C. We grow a whole lot of potatoes — and we’ve learned that not every spud is supermarket-perfect. Some are too big, too small, or just too “ugly” for store shelves. But they’re still perfectly good to eat.
In 2024, instead of letting those potatoes go to waste, we donated $1.4 million worth of produce to food banks and local charities across British Columbia. That helped feed thousands of families in need — and thanks to a generous tax credit in Canada, it also made great business sense.
This is how Canada’s food donation tax credit helped us reduce food waste, support our community, and save big on our taxes.
What Is the Farmer Tax Credit in Canada?
The British Columbia Farmer Tax Credit is part of Canada’s effort to reduce food waste and fight food insecurity. It’s designed to reward farmers for donating fresh produce to registered charities.
Here’s how the tax credit works in B.C:
- You receive a non-refundable tax credit worth 25% of the fair market value of the qualifying donation (calculated based on store pricing).
- You also receive a tax receipt for the full value of the donation — which lowers your taxable income.
So, if you donate $100,000 worth of food, you could:
✅ Reduce your taxable income by $100,000
✅ Get a $25,000 tax credit directly off your taxes owed
That’s real financial savings — while doing something genuinely good for your community.
How Much Did We Save?
In 2024, we donated $1.4 million in potatoes. That allowed us to:
- ✅ Feed families across B.C.
- ✅ Keep perfectly good food out of landfills
- ✅ Strengthen partnerships with food banks and community organizations
- ✅ Save $350,000 in taxes (that’s 25% of $1.4 million)
That’s money we can now reinvest in better equipment, staff, and innovation. The Canadian food donation tax credit made this possible — and it’s available to any qualifying farm in the province.
Why Canadian Farmers Should Take Advantage of This Tax Credit.
Farming in Canada is more challenging than ever. Between rising input costs, labour shortages, and tight margins, every dollar counts. But at the same time, food insecurity is rising across the country.
We believe every farm can make an impact — whether you’re donating $10,000 or a few bins of surplus produce.
And if you’re not taking advantage of this tax credit in Canada, you’re likely leaving money on the table.
Want to Start Donating? Here’s What You Need to Know
If you’re a farmer in British Columbia (or other provinces with similar programs), here are some steps to get started:
- Connect with your local food bank. Many will pick up directly from your farm.
- Track the fair market value. You’ll need store-level pricing to support your donation claim.
- Get receipts from a registered charity. Only qualified donations count.
- Talk to your accountant. Ensure your farm files correctly and claims the full benefit of the tax credit.
A Stronger Food System Starts with Us
At Heppell’s, we’re not perfect. But we’re committed to using our farm to help build a better, more sustainable food system — one that feeds more people and supports the farmers who grow the food.
If you're a Canadian farmer with extra produce, consider donating it. The tax credit in Canada makes it easier than ever to give back, without giving everything up.
Let’s work together to reduce food waste, fight hunger, and keep farming sustainable for the next generation.
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