The PBO data points to a potential $978 million tax burden on Canadian farmers through 2030 from the carbon tax on natural gas and propane alone - essential fuels used extensively in grain drying and barn heating.
Canadian producers already receive a carbon tax exemption for diesel and gasoline, but Bill C-234 seeks to further exempt farmers from paying the carbon tax on propane and natural gas used for drying grain and heating barns. The Bill was passed by the House of Commons back in March but continues to await final approval in the Senate. A previous bill that would provide the same exemption also previously passed the House but later died in the Senate.
Farm leaders have voiced concerns about the continued Senate delays on Bill C-234, noting the impact on livestock producers and the fact the current carbon tax exacerbates already high production costs, threatening farm sustainability. In a letter to Saskatchewan senators also urging the passage of Bill C-234 late last month, Ian Boxall, President of the Agricultural Producers Association of Saskatchewan, said the issue of grain drying is of particular concern.
“Ideally, we would not need to dry a single bushel of grain, rendering the taxation of energy use for this purpose irrelevant. Unfortunately, this is not our reality, and the carbon tax simply imposes an additional financial burden during a challenging time in the production season,” he said.
The Grain Farmers of Ontario project that the carbon tax will add an additional cost of $46/acre in direct drying costs by 2030. For an average 800-acre farm, this translates to an operational cost hike of $36,800.
Source : Syngenta.ca