KAP estimates Manitoba producers to spend $1.7M in carbon tax on corn drying alone

By the time harvest ends this season, the Keystone Agricultural Producers (KAP) estimate Manitoba producers will have paid almost $1.7 million in carbon tax related to the cost of drying the 2019 corn crop.

“We are firm in our position that there needs to be an exemption for farmers under the carbon tax framework for all the costs associated with drying all grain, as well as for heating barns and farm buildings,” says KAP president Bill Campbell. “Now that Manitoba falls under the federal backstop, farmers are left paying prices that, as price-takers in the global economy, cannot be passed along.”

After the latest federal, provincial, and territorial agriculture ministers meeting last month, KAP took to the fields and worked with farmers to compile data to show the need for an exemption under the federal backstop. This came at the request of federal Agriculture Minister Marie-Claude Bibeau and Manitoba Minister of Agriculture and Resource Development, Blaine Pedersen

According to a news release, initial data shows that the average producer paid $3.69 per acre in carbon tax on grain drying (primarily corn), including propane and natural gas. That means that almost $1.7 million left the provincial economy this year from corn production alone.

KAP says a typical farmer in this province growing 500 acres of corn spent approximately $14,145 on fuel for drying, while the carbon tax added $1,722 to that fuel bill. Wet conditions this harvest meant that other grain had to be dried as well. Significant and atypical rates of precipitation during the 2019 harvest season forced many farmers to dry grains that may not have been dried otherwise.

“The carbon tax on grain drying not only impacts our profitability as farmers but our competitiveness in a world market,” says Manitoba Corn Growers Association president, Dennis Thiessen.

“If we look to corn farmers in the northern United States, they are paying less for their drying costs and on top of that don’t pay a carbon tax. That corn comes into Manitoba, making Manitoba farmers uncompetitive. This is completely unacceptable, impacts Manitoba farmer’s profitability and the federal government needs to be aware of this.”

KAP will be requesting meetings with federal ministers and federal opposition MPs as part of the annual Canadian Federation of Agriculture annual general meeting held next month to discuss its findings.

One thought on “KAP estimates Manitoba producers to spend $1.7M in carbon tax on corn drying alone

  1. Meanwhile our government is saying they don’t see any real impact from the carbon tax to the end user.

    I guess not….look at the giant cash grab they are getting!!!

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Privacy Preference Center

Necessary

Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

gdpr, __cfduid, PHPSESSID, wordpress_test_cookie, woocommerce_items_in_cart, woocommerce_cart_hash, wp_woocommerce_session, wordpress_logged_in, wordpress_sec, wp-settings, wp-settings-time, __cf_mob_redir, wordpress_cache, realag
__cfduid

Marketing

Measuring interactions with the ads on the domain.

__gads,fsk_ut_2317
scmtid,v,a,JSESSIONID
IDE

Statistics

These are used to track user interaction and detect potential problems. These help us improve our services by providing analytical data on how users use this site.

_ga,_gid,_gat,_cb,_chartbeat2,_chartbeat4
_ga,_gat
_ga,_gid
metrics_token

Preferences

Preference cookies enable the website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.

chartdefaults, comment_author, comment_author_email, comment_author_url
JSESSIONID, _os_session,anonymous_votes,csrf-param,csrf-token,user,user-id,user-platform,intercom-session,intercom-lou,intercom-session
personalization_id, tfw_exp