Agriculture committee aiming to study carbon tax impact on farmers

MPs receiving letters from farm groups about tax increase impact

Ottawa-The financial impact of the carbon tax on Canadian farmers is resulting in MPs getting plenty of letters from concerned agriculture groups, says Conservative ag critic John Barlow.

The letters came from members of the Grain Farmers of Ontario, the Agriculture Carbon Alliance, the Fruit and Vegetable Growers of Canada, Mushrooms Canada, the Western Stock Growers' Association, and the Wheat Growers Association, Barlow said during a meeting of the Commons agriculture committee. Ontario Agriculture Minister Lisa Thompson and the Saskatchewan Association of Rural Municipalities also sent letters.

The 23 per cent hike in the carbon tax on April 1 is a big issue as is the need to restore Huron-Bruce Conservative MP Ben Lobb’s bill to its original wording to exempt propane and natural gas used in grain drying and barn heating and cooling from the carbon tax to its original wording, Barlow said. Liberal senators removed the exemption in last minute changes to Lobb’s bill, which had been approved by the Commons and the Senate agriculture committee.

Barlow’s motion to have the committee study the situation will be considered at a future meeting. NDP ag critic Alastair MacGregor said the committee should also look at the profiteering of the oil companies. He supports Lobb’s bill.

Barlow said, “The carbon tax currently costs greenhouse operators in Canada $22 million a year andthey will pay between $82 million and $100 million by 2030 when the carbon tax quadruples.”

Also impacted are 44 per cent of fresh fruit and vegetable growers who are already selling at a loss and 77 per cent who cannot offset production cost increase. Mushroom farms will pay $7.4 million this year because of the tax and by 2030 the bill will be more than $16 million.

“A sample of 50 farm operations across Canada paid a total of $329,644 in carbon taxes in one month last year, with the increase this year it'll cost those same farms $431,544 and nearly triple over the next seven years to $893,944,” Barlow said.

The Parliamentary Budget Officer has stated the carbon tax will cost farmers nearly $1 billion by 2030.

The 2030 Food Price Report estimates the carbon tax will cost a typical 5,000-acre farm $153,000 by 2030.

MacGregor said Barlow’s motion should “make some reference to the ridiculous profiteering that is going on in the oil and gas sector. We can always see their publicly reported figures, but for us to completely ignore the role that corporate profits in oil and gas in particular are having on our farm sector is really missing the entire point.”

Barlow’s motion will be considered at a future committee meeting.

This news item was prepared for National Newswatch