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Manitoba announces $4.2M rebate for province’s first large-scale greenhouse

The Manitoba government will provide a rebate of up to $4.2 million to a Vermillion Growers’ commercial greenhouse development in the Parkland region.

Announced by Economic Development and Training Minister Ralph Eichler last week, the rebate is funded through the Manitoba Works Capital Incentive (MWCI), over a maximum of 20 years.

“The Manitoba Works Capital Incentive Program encourages businesses to invest and expand in our province by creating a competitive tax environment to help diversify Manitoba’s economy,” said Eichler. “We select projects like Vermillion Growers’ new greenhouse that focus on economic development and long-term job creation and substantially improve property values. Our investment in the Parkland region will create jobs and encourage further economic development in the area.”

Vermillion Growers started construction of the province’s first large-scale greenhouse in Manitoba and broke ground in June 2018. The high-tech hydroponic commercial greenhouse development in Dauphin will be designed for vegetable production, consisting initially of tomatoes with plans to expand to a wide range of produce. Phase One of the project is a 10-acre facility, with plans to expand to 60 acres after five years of production. Vermillion Growers plans to plant its first crop in early 2021.

“Manitoba is committed to creating an environment for a competitive, sustainable and adaptable agriculture and agri-food industry that ensures it thrives as a key economic driver,” said Agriculture and Resource Development Minister Blaine Pedersen. “Having a large-scale greenhouse in Manitoba is very important from a food security standpoint – access to fresh, locally grown produce year-round is a great benefit for Manitobans.”

“Canada currently imports close to 90 per cent of our table fresh tomatoes, but Vermillion Growers will displace some of these imported tomatoes with local product, meaning healthier food and more jobs for our community and province,” said Maria Deschauer, managing director and proprietor of Vermillion Growers. “Once fully built, the site will provide 60 acres of growing area, requiring Vermillion Growers to create the equivalent of 180 full-time positions. Vermillion Growers is thrilled by the support of the Manitoba government and looks forward to working with the province as Vermillion expands.”

The province unveiled the MWCI in May 2020 as a new approach to tax-increment financing that rebates the incremental education property taxes generated by a project for up to 20 years. Approved projects receive a tax rebate based on the difference between pre-development property tax revenue and the increased amount generated by the completed project. The program aims to encourage significant new business investment or existing business expansion, noted Eichler.

A new or existing business interested in establishing or expanding its operations in Manitoba may apply for the MWCI if:

• the business is prepared to make a minimum capital investment of $10 million to a specific property, which will be designated for tax-increment financing benefits;
• a minimum of 65 per cent of total project costs are from private sources; and
• there is demonstrable potential to create and/or maintain at least 10 new jobs in the province, or the new business activity will have a substantial and measurable net economic benefit to the province.