By Shaun Penner

GGC chair hopeful carbon tax exemption for on-farm fuel usage passes swiftly

Mar 1, 2021 | 5:29 PM

GRANDE PRAIRIE, Alta. – A Valhalla farmer who serves as the chair of the Grain Growers of Canada is glad to see support for Bill C-206 and is hopeful it can be brought into law sooner rather than later.

The bill, known as An Act to Amend the Greenhouse Gas Pollution Act, passed second reading on Wednesday. The legislation would expand the existing exemption from the carbon tax for qualifying farm fuels used on farm to include propane and natural gas.

“This bill is desperately needed for Canada’s grain farmers,” said Harpe. “With no alternative fuels available, we are faced with a punitive cost when using a grain dryer to reduce the moisture levels in our grain.”

The carbon tax in Canada currently sits at $30 per tonne, and is set to increase to $170 per tonne by 2030.

With no alternative fuel source for grain drying, Harpe says that already hefty price tag does nothing but penalize farmers.

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“The carbon tax was originally brought out to induce change,” said Harpe. “Unfortunately, with farming, we are not able to change. Natural gas and/or propane in some cases is the most efficient way to dry grain right now.

“It’s the only way to dry grain.”

Having had first-hand experience of the wet spring and summer of the past two years in the Peace Country, Harpe says grain drying has become a staple for many farms to successfully get their crop ready for market.

Should farmers have to continue to pay for the growing carbon tax to dry their grain, Harpe adds, that means the end product that gets to market is only going to cost more for the consumer.

“The problem is, is that it gets back to ‘we all need to eat’, and it’s going to impact how much we are going to have to pay for food.”

Harpe says the GGC looks forward to testifying in favour of the legislation at the Standing Committee on Agriculture and Agri-Food in the coming weeks, and that they are hoping for swift passage through the remaining stages in the House of Commons and through to the Senate.

Bill C-206, a Conservative private members bill brought forward by Ontario MP Philip Lawrence, does comes with bipartisan support from across the aisle – with affirmative votes coming from the Conservative, New Democratic, Bloc Quebecois, and Green parties.

“We even had the Green Party supporting it. Even they understand how important it is to take the carbon tax off of grain drying.”

Pending approval in the House of Commons on a third vote, the bill would require the Senate’s approval and Royal Assent to become law.