Ag carbon tax exemption passes second reading

Bill now headed to committee

February 25, 2021, 10:18 am

Bill-C-206, which would exempt on-farm natural gas and propane use for grain drying and heating from the carbon tax, has passed second reading and is headed to committee.

The Conservative bill passed second reading 178-145, with only the Liberals voting against the bill.

With the support of all the opposition parties, the bill will now move to Committee.

“Our members have been very concerned about the impact of the federal carbon pricing system on unavoidable energy inputs like fuel to dry grain or heat livestock facilities,” said APAS President Todd Lewis.

“We have been calling for the federal government to recognize these impacts and provide relief through exemptions, or rebates at the very least. We would like to thank the members of the House of Commons that heard the concerns of producers.”

Cost estimates developed by APAS in 2019 and updated in 2021 showed a $1.04 per acre production cost increase for wheat, rising to $4.44 per acre by 2030.

“We have argued for years that producers cannot pass these additional costs along to our customers, and that they further reduce our financial viability,” said Lewis. “This additional cost of carbon taxation does not help to solve the problem of carbon emissions.”