Farmers' carbon tax exemption request needs to be revisited, says Prairie cabinet representative Jim Carr

Ottawa’s decision to not expand carbon tax exemptions as called for by farmers and farm groups needs to be revisited, according to the Special Representative for the Prairies in the federal cabinet.

Winnipeg South Centre MP Jim Carr has served as Prime Minister Trudeau’s Prairie representative since 2019, and was promoted back into Cabinet in this position last month after stepping aside for cancer treatment in late 2019.

When asked about exempting fuel used for grain drying on RealAg Radio this week, Minister Carr said “it’s an issue I believe has to be revisited.”

Gasoline and diesel used for farming purposes are exempt from the federal carbon tax, but farm groups have urged the government to extend the exemptions to propane and natural gas used for grain drying and heating barns and greenhouses, as there are no readily available or viable alternatives.

“In those cases where there are inequities, I think we have a responsibility to look at those inequities, and I understand the arguments that are being made, and I’m presenting these arguments to the centre of government, and we’ll see what happens,” said Carr.

Last year, Agriculture Minister Marie-Claude Bibeau said that the carbon tax on fuel used for grain drying wasn’t a significant enough percentage of operating costs to qualify for an exemption to the “price of pollution.” Bibeau said the agriculture ministry’s analysis showed the cost per grain farm to be between $200 and $900 per farm — amounting to just 0.05 per cent to 0.42 per cent of operating costs.

The government has since announced a plan to raise the carbon tax significantly from $40 per tonne of carbon dioxide emissions this year to $170/tonne in 2030, which Grain Farmers of Ontario says will result in added grain drying costs of around $50 per acre for corn. The Agricultural Producers Association of Saskatchewan (APAS) says it will increase the cost of growing wheat in the province by $12.52 an acre.

“We have a responsibility to look at it, to see where there is real hardship, to assess the impact on their bottom line in real time and in real dollars, to measure the impact of that fiscal measure and to conclude whether or not we believe it’s fair, and if it’s not, to look at ways to mitigate the impact,” said Carr. “It’s my job to make the arguments. Ultimately, others will make the decisions, but I hear loudly and clearly from Prairie producers.”

Related: What does the Special Representative for the Prairies do?

 

One thought on “Farmers’ carbon tax exemption request needs to be revisited, says Prairie cabinet representative Jim Carr

  1. Jim Carr (although of a different party stripe than is typically my preference) is a good man with incredible integrity. His work ethic and commitment to seeing projects through is unparalleled in this government, as his intelligent approach to very complex issues. His involvement on this file gives me confidence that prairie grain farmers will get a fair shake when it’s discussed at the cabinet table.

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
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,_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

 

Register for a RealAgriculture account to manage your Shortcut menu instead of the default.

Register