APAS releases updated numbers on carbon tax

Agriculture needs to continue to push for exceptions, says APAS president

Producers are going to continue to see an increase to their production costs coming from the carbon tax, said a recent release from the Agricultural Producers Association of Saskatchewan (APAS).

APAS reps released updated numbers that show the cost of producing wheat could go up to more than $12.50 per acre in 2030 because of the carbon tax.

“The costs are very significant on an average wheat crop,” said Todd Lewis, president of APAS. “That's hundreds of millions of dollars out of the western Canadian economy every year, and really there's no way for farmers to recoup those costs because we can't pass them along.”

This estimate used the new numbers announced by the Government of Canada in December 2020 stating the carbon tax will increase to $170 per tonne by 2030. It also used key indirect costs that are not exempt from the carbon taxation such as electricity and grain drying, said the release.

APAS reps plan to continue to fight for exemptions for producers and give them the recognition they deserve, said Lewis.

“In a lot of cases (farmers are) world leaders in carbon management, and that's really what agriculture is all about is in a lot of ways is managing carbon, and we've done a pretty good job of and continue to,” Lewis told Farms.com.

APAS reps are working on developing cost estimates for other crop and livestock commodities. The most recent estimates and calculations can be found here.

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