Carbon tax on grain drying fuel not "significant" enough to qualify for an exemption, Bibeau says

Agriculture and Agri-Food Canada (AAFC) has crunched the numbers on the carbon tax applied to grain drying bills and says it’s simply not a significant enough amount of overall costs to be exempt from the tax.

Minister Marie-Claude Bibeau held a Zoom conference call to announce a second intake for the Local Food Infrastructure Fund, but in the question and answers portion of the call, Bibeau said that AAFC has analyzed the carbon tax data submitted to the department several months ago and found the amount paid for the “price on pollution” was not significant enough.

Bibeau adds that the existing exemption covers the significant uses of fuel, such as on bulk and cardlock systems (after an exemption is filed) and heating for greenhouses. The data tax program that AAFC used figured out the cost of carbon tax on a per-farm basis as a percentage of total operating costs. When averaged over all farms, the cost was $210 to $819 per farm, or 0.05 per cent to 0.42 per cent of total farm operating expenses. Greenhouse heating, for example, accounts for about 7 per cent of operating costs, Bibeau says.

She says that “waiving the price on pollution” is not the right way forward.

Producer groups had provided the minister’s office with costs paid and estimates of the larger picture of the carbon tax paid by farmers. Saskatchewan farmers, for example, are estimated to lose 8 per cent of their total net income in 2020 to the carbon tax, according to the Agricultural Producers Association of Saskatchewan (APAS). For a household managing a 5,000-acre grain farm in Saskatchewan, this will take the form of an $8,000 to $10,000 bill. This estimate includes all costs of the carbon tax, not on grain drying only.

Many farmers last fall posted photos of their propane and other fuel bills with added thousands in carbon tax. Last fall, several areas of the Prairies and Ontario were faced with a cold, wet, extended harvest season, and had to dry grain, including wheat, corn, canola, and more, to safely store the crop or risk it spoiling. Last fall’s harvest weather forced some farmers to delay harvest until this spring, leading to significant losses of the crop and downgrades in quality.

Watch Shaun Haney discuss Minister Bibeau’s comments on RFD-TV

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