CRA is willing to treat recurring expenditures on very long-lived assets as currently deductible

CRA considers that the costs of purchasing cranberry plants in setting up a cranberry farm are part of the cost of the land, partly in light of their life span of up to 100 years, whereas the costs of replacing unproductive plants can be currently deductible.  If one accepts the somewhat contrived treatment of cranberry plants as land, this is vaguely reminiscent of Johns-Manville, where recurring land expenditures to expand the perimeter of an open pit mine were found to be on income account.  CRA has also indicated that replacing orchard trees and vines are on capital and income account, respectively (983283).

Neal Armstrong.  Summaries of 18 December 2013 T.I. 2013-0479421E5 F under s. 18(1)(b) – capital expenditure v. expense – improvements v. repairs or running expenses, s. 30, and Sched II: Class 8, Class 17, Class 6.