Farm groups call on the Senate to reject amendments on barn heating tax

  • National Newswatch

The bill should be kept as passed by the CommonsOttawa--The Canadian Federation of Agriculture (CFA) and the Agriculture Carbon Alliance (ACA) with support from the Canadian Propane Association (CPA), want the Senate to reject changes made to a bill that would exempt farmers from paying the carbon tax on fuel used in grain dryers and heating and cooling buildings.The change, made by a group of senators appointed by the Liberal government, would remove the cooling and heating provision for barns and greenhouses that use propane or natural gas.CFA President Keith Currie said the amendment “shows there is a real disconnect on how the carbon tax is impacting farmers and our ability to invest in on-farm sustainability and productivity. Farmers have no real alternative when it comes to propane or natural gas for cooling and heating their barns and greenhouses. Making them pay the tax creates a financial burden without any reduction of emissions.”ACA Co-Chair Dave Carey said, “Adopting this amendment establishes an unjust precedent within the industry. Our farmers, ranchers and growers pay tens of thousands of dollars in carbon pricing annually, and it takes time for the needed infrastructure to be built and emerging alternative technology to be scaled up and be readily available to all farmers at a reasonable price.”The bill, proposed by Huron-Bruce Conservative MP Ben Lobb, has been approved by the Commons and only needs Senate passage to become law.CPA President Shannon Watt said propane and natural gas are low-emission fuels and passage of Lobb's bill “will save farmers nearly one billion dollars by 2030. It will provide huge savings in input costs for farmers and those savings can be passed along to consumers in the form of lower food prices.“Quite frankly, opposition to C-234 reflects a lack of understanding of life in rural Canada. “Decarbonization in rural and remote communities will be more difficult than in the cities, given the lack of access to services such as public transit, EV stations or renewable electricity. Supply chain costs also increase for those living in rural communities," Watt said.Currie said the financial burden impacts the amendments would discourage farmers from investing “in productivity and improvements in environmental performance, reducing their capital and cash-flow to make investments that would benefit their operations, support food security, and provide climate solutions across Canada.”“Temperature control is only going to become more important and energy intensive as the climate continues to change. This is essential for both animal and plant health. It's crucial that farmers aren't further burdened on the activities they take to mitigate the effects of climate change, a financial burden that ironically forces them to focus on meeting their short-term financial needs rather than long-term sustainability initiatives.”Scott Ross, ACA's Co-Chair, says the consequences of the amendment could be far-reaching for poultry, egg, cattle, dairy, pork, sheep, fruit and vegetable and mushroom growers."In the absence of viable alternatives, this amendment doesn't just impact farmers' competitiveness, it jeopardizes our future sustainability and efficiency. Continuous carbon pricing without viable alternatives for essential farm practices diverts funds from critical investments in innovation that drive efficiency.”If the Senate approves the change, the bill will have to be returned to the Commons for approval. That would delay its final approval and stall progress and hinder “our farmers who have waited far too long for this crucial support.”The Senate committee was told that “emerging technologies that would provide alternatives are at least eight years away from commercial viability. The bill includes a sunset clause to reevaluate its context in eight years, ensuring justification for such an exemption.”