Getting the agriculture minister to understand the issue seems to be the next step.
Ottawa—The harvest from hell many Canadian grain growers suffered through in 2019 hasn't been forgotten. Grain Growers of Canada has added its voice to calls for immediate relief for 65,000 grain, oilseed and pulse producers from the carbon tax on fuels used to dry grain.
“Following a difficult harvest season, Canadian farmers should not be expected to pay increased taxes at a time when they can afford it least,” said GGC Chairman Jeff Nielsen. In the short term, farmers should be reimbursed by the federal government for the millions of extra dollars in carbon tax they paid to dry their grain.
To help Agriculture Minister Marie-Claude Bibeau understand the issue, the agrifood sector needs to convince the Bloc Quebecois and New Democrats to support the calls for action on the issue. The Conservative Party wants to eliminate the carbon tax while Green Party agriculture critic Paul Manly has already same the tax should be removed on grain drying fuels.
“We support the grain producers of Canada in their appeal to the federal government to waive the carbon tax on fuel used for grain drying during last year's harvest,” Manly said. “The disruption and expense of last year's weather-plagued harvest is already causing widespread hardship. Carbon tax relief is justified and necessary.
Bibeau said in December she needs more information to convince her cabinet colleagues that exemptions such as one for grain drying are needed. Her comments were blasted by a variety of fam groups. Both GGC and the Canadian Federation of Agriculture have made detailed presentations to the federal government about the inequities the carbon tax has laid on farmers.
The issue sparked angry exchanges at the 2019 CFA annual meeting when delegates blasted Environment Canada officials on the areas in agriculture that weren't included in the exemptions from the carbon tax.
The CFA has said for years the federal government needs to “take action to ensure that carbon pricing policy is truly revenue neutral for agricultural producers. All on-farm fuel use, including propane and natural gas for purposes beyond greenhouse heating, must be exempt from carbon pricing.”
Nielsen said, “The 2019 harvest season has put undue burdens on farmers' livelihoods and every part of the country has been hit hard. Beyond just the crop left in the field, farmers have faced major grain drying expenses, courtesy of the federal carbon tax, to ensure at least some crops make it to market.
“After a difficult 2018, where net farm incomes dropped 45 per cent from the year prior, the trend has only worsened. Our federal government must recognize that farmers should not be faced with an additional tax burden that reduces their competitiveness in the global marketplace.
“Farmers contribute to environmental sustainability by sequestering carbon, reducing water and input use, and improving soil health,” he said. “However, with no alternative to fossil fuels to dry grain, the carbon tax fails to recognize farmers' contribution and instead relies on punitive measures.”
Action is needed quickly to provide relief to farm families who are facing mounting costs. “That is why the long-term solution is to fully exempt all fuels used on farming operations,” he said. “With a changing climate, there could be future years where significant grain drying is required for farmers to get their grain to market.
“The simplest solution for both farmers and the government is to completely exempt all fuels used in farming operations,” he said. “This will avoid the need for any relief measures after events like last year's harvest.
Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.