Fresh Food for Food Banks: Why Food Banks Alberta Proposes the Government of Alberta Adopt the Fresh Food Tax Credit
The following is a guest article written by Food Banks Alberta:
With one in eight Canadians accessing a food bank, and inflation reaching record highs, Food Banks Alberta is urging the Government of Alberta (GOA) to consider adopting the Fresh Food Tax Credit (FFTC). Food Banks Alberta is a non-profit organization supporting over 109 food banks across the province, and plays a pivotal role in food distribution.
The Fresh Food Tax Credit
The Fresh Food Tax Credit, already adopted by Ontario, Quebec, Nova Scotia, and British Columbia, allows the agricultural sector to deduct from taxes owed 25% of the wholesale value of fresh food donated to food banks. Quebec offers a 50% tax deduction. Food Banks Alberta is encouraging the GOA to adopt a minimum 25% non-refundable tax deduction.
The FFTC is applied when agricultural producers are also claiming a charitable tax credit. The credit is calculated on the fair market value of the goods received, and based on the quantity and quality of the goods received. Only registered charities may issue tax receipts.
The FFTC incentivizes agricultural producers to develop relationships with food banks, reduce food waste, and in turn, increase the quantities of fresh food available to food bank clients. In Canada, the estimated annual value of avoidable food loss and waste from farm to fork is $49.5 billion. In 2020, this amounted to approximately 3% of the total national Gross Domestic Product.
What kinds of Goods are Included in the Tax Credit?
Food Banks Alberta recommends a similar structure to Ontario’s Credit. Using this framework, agricultural producers in Alberta can donate anything grown or harvested on a farm that can be legally sold or distributed in a location other than the premises of the producer. Products that have been processed, like sausages, are not eligible to receive the FFTC.
The credit would benefit food banks and community food distribution programs. Eligible programs must provide food or nutritional support at no cost in an effort to eliminate food insecurity in their communities.
The Impact in Alberta
In Alberta, over 44,500 visitors to food banks in March 2021 were children. Access to nutritious food is essential to support and nurture children’s growing bodies. Food choices established early in life are both essential fuel for growth and development, and help to establish a foundation of positive eating patterns as children grow.
Food banks in Alberta indicate that one of their biggest challenges is access to consistent, fresh food. While many food banks have existing partnerships with agricultural producers, a credit would help to incentivize additional relationships. These relationships reduce potential food waste, while contributing to food security initiatives directly in producers’ communities.
In January 2022, inflation reached 5.1%, its highest in 30 years. Additionally, the Canadian Dairy Commission indicated that manufacturers could see an increase in dairy costs as high as 8.4% in 2022. These rising costs directly impact families in communities across Alberta, making nutritious food harder to access, particularly for those living in poverty. As a result, families may rely on cheaper alternatives, like canned fruits and vegetables, high in fructose and sodium, or rationing or diluting milk products for children who need it the most.
According to a recent Ipsos poll, the number of Canadians relying on charitable services like food banks to meet their basic needs could increase to one in four this year, a 15% increase from 2021. Alberta has already seen a 30 percent increase in food bank access, one of the highest in the country.
COVID-19, interruptions to supply chains like November’s flooding in British Columbia, and international conflicts have resulted in surpluses in product for farmers. As costs continue to rise, the production and distribution costs for the agricultural sector are also increasing. Through the implementation of the FFTC, both food banks and farmers benefit.
Lastly, the FFTC is a benefit to the Government, for every $1 foregone in revenue equals $7 worth of food for those in need, as well as helping agricultural producers make ends meet.
The adoption of the FFTC in Alberta will have a trifold impact: on vulnerable individuals and families experiencing food insecurity, on farmers supporting their community and reducing opportunities for food waste, and on the government helping to support communities across the province by incentivizing relationships between programs and producers. The ultimate benefit is for those who need it most: marginalized Albertans and their families who are struggling to make ends meet, in an economy that continues to prevent equal access to healthy, nutritious food for children and families.
1 Food Banks Canada, 2021 HungerCount Report (2021)
2 Food Banks Canada, Fresh Food Tax Credit (2016)
3 Kinach, L., Parizeau, K. & Fraser, E.D.G.Do food donation tax credits for farmers address food loss/waste and food insecurity? A case study from Ontario. Agric Hum Values 37, 383–396 (2020).
4 Local Food Act, “ Tax Credit for Farmers Who Donate Food - Bringing More Local Food to Communities Across Ontario”, (2016)
5 Food Banks Canada, 2021 HungerCount Report (2021)
6 Retail Council of Canada, “Canadian Dairy Commission announces unprecedented 8.4% increase in the price of milk”, (2021)
7 Charity Vilage, “New Ipsos Poll Reveals 26 Percent of Canadians May Soon Need Charitable Services to Meet Basic Needs”, (2022)
8 Food Banks Canada, Fresh Food Tax Credit (2016)