Ottawa-Changes the Senate made to Bill C-234 will leave farmers with about one quarter of the financial relief for the use of propane and natural gas that would be available to them under the version of the version of it approved by the Commons, the Parliamentary Budget Officer says.

The Senate amendments to the bill from Huron-Bruce Conservative MP Ben Lobb eliminated exempting propane and natural gas used in farm building heating and cooling from the Carbon Tax but still allows them for grain drying. It also reduced to three years from eight the sunset clause provision that covered the time to find new technology to operate grain dryers, a move widely branded as unrealistic.

The PBO said last year that Ontario farmers would see their bill for propane used in those functions would rise from $7 million in 2023-23 to $16 million in 2030-31 while the cost of the natural gas would rise from $12 million to $20 million during the same period.

Add in Prairie farmers and the propane bill would rise from $13 million to $31 million while natural gas costs would climb from $76 million to $131 million.

The Senate’s amendments have drawn strong rebukes from Fruit and Vegetable Growers of Canada (FVGC), Grain Farmers of Ontario (GFO) and the Agriculture Carbon Alliance (ACA).

FVGC President Jan VanderHout called on MPs to resist any delay tactics and immediately pass Bill C-234 in its original form. “Canadian farmers need immediate relief. Providing a full carbon tax exemption for farmers, which would allow critical investment in environmentally friendly technologies, is the absolute best way to ensure food security for all Canadians.”

Brenden Bryne, Chair of Grain Farmers of Ontario, called on MPs to reject the Senate’s amendments. “Canadian farmers need to know that our federal government will support them as they work to put food on the plates of every Canadian.

“The carbon tax has proven to be an unbearable new cost for farms – and it is increasing every year. Passing this bill would provide our farmers some relief as they work to dry grain and ready it for food production. Grain drying isn’t a nicety, it’s actually a necessity. Wet grain must be dried quickly or it can quickly spoil. We are being taxed on a necessary process for food production.”

Bill C-234 corrects an omission to the Greenhouse Gas Pollution Act that saw some fuels for farming receive an exemption from the carbon tax, while others did not. Canadian farmers are leaders in climate change efforts, including best practices for fertilizer use, increased efforts for soil and water health such as crop rotation, smart tillage practices and cover cropping.

ACA co-chair Dave Carey said, “With a new growing season approaching and the next carbon price increase this spring, the necessity for financial relief is increasingly evident. Removing capital, especially when margins are already thin, hinders critical investments in efficiency. It’s simply not a sustainable solution to expect producers to pay tens of thousands of dollars while waiting for technology to catch up.”

The Senate gutting of the bill means tens of thousands of farmers, growers and ranchers will miss out on much-needed financial relief at a crucial time.

Scott Ross, ACA co-chair, said, “C-234, in its original form, acknowledges the industry’s widespread absence of viable fuel alternatives and provides immediate relief to all farmers. However, moving forward with this version of the bill creates an unjust inequity for thousands of farmers left paying carbon prices on essential practices despite their shared need and lack of alternatives.

“With agriculture’s potential to deliver critical climate solutions, policies like those in C-234 are critical to ensure farmers can invest in a sustainable future for their operations.”

This news report was prepared for National Newswatch.