Also calls for refund of taxes paid in the past.   Ottawa—There should be an immediate exemption from the carbon tax farmers pay for propane and natural gas used in grain dryers and other farm operations and a refund of tax paid on the fuels in the past. While the federal economic statement in late December proposed a tax credit for farm fuels the carbon tax is paid on, it “still does not provide Ontario grain farmers with relief from carbon tax paid on fuel to dry grain,” GFO Chair Brendan Byrne said. The current carbon tax on propane and natural gas “is an expense that cannot be borne by farmers growing food,” he said. “In Ontario, grain drying is a necessary part of producing high quality, healthy, viable grains - you can't make bread from spoiled grain. Additionally, farmers cannot compete with U.S. farmers who don't have to pay the carbon tax to grow their grain.” The proposed tax credit in no way replaces the much-needed exemption proposed in a bill by Conservative MP Phil Lawrence of Northumberland-Peterborough South. It was approved by the Commons in the last Parliament but there was not enough time for the Senate to pass it before the September election. He intends to reintroduce the bill. “It is inconceivable that the government is not providing relief to grain farmers by putting into place an exemption for the carbon tax on drying grain,” Byrne said. “All food production should be exempt from this tax. Farmers do not have alternatives to dry our grain, we cannot grow food and be penalized with an ever-increasing carbon tax that will be increased year over year.” The carbon tax paid by grain farmers in Ontario is a significant cost. For example, grain farmers pay tens of thousands of dollars in carbon tax directly and indirectly and the tax credit being proposed would return less than 20 per cent of the costs incurred to corn farmers, he said. This tax is set to increase to $170 per tonne of carbon in the next few years – more than eight times the initial cost, meaning in the next decade some farmers could pay $50,000 - $70,000 just in carbon tax. “Grain Farmers of Ontario has repeatedly shared data showing the negative impacts of the cost of the carbon tax with government, along with the fact that alternatives don't exist,” he said. “The government has created an exemption for greenhouse growers and others who don't have alternatives for 80 percent of use, while grain farmers in Ontario are covered for less than 20 per cent. I would ask the government to explain this discrepancy.”