Private Members Bill C-234 Not as positive as it seems

Mar 29, 2023

Corn dried in commercial elevators is not eligible for the proposed carbon tax exemption

How corn is dried could impact a proposed carbon tax exemption.

With Private Members Bill C-234 anticipated to pass through third reading/vote in the house of commons and transition to the Senate , the Ontario Agri Business Association (OABA) thought it would be timely to share some perspective on Ben Lobb’s proposed bill.

  • 50-60% of the corn grown in Ontario is dried in commercial elevators. As Bill C-234 is currently stated, corn dried in commercial elevators is not eligible for the proposed carbon tax exemption that will result in the majority of Ontario farmers not being eligible for the exemption based on where they choose to dry their grain (i.e. commercial elevator).
  • In real dollars the exemption would result in a ~$14 per acre (corn) cost of production discrepancy for an Ontario corn farmer that uses either on-farm drying (tax exempt) or commercial. As of April 1 that discrepancy increases to $18 per acre when the carbon tax increases from $50 to $65/t.

“As a sector we cannot have government policy that results in winners and losers within the marketplace for undertaking a necessary grain management process where there are no realistic large-scale alternatives,” says Russel Hurst,  Executive Director, OABA.

OABA has indicated it will be reaching out to Senate committee members in the near future to ensure they are aware of the challenges the proposed legislation has on both industry and the majority of Ontario farmers that rely on commercial grain elevators to dry their grain/oilseeds and look to seek further amendments to the legislation to ensure sector competitiveness.

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