By Alice McFarlane

The bill to exempt on-farm grain drying and barn heating from carbon tax passes ag committee stage

Nov 17, 2022 | 4:27 PM

MELFORT, Sask. – Bill C-234, an Act to Amend the Greenhouse Gas Pollution Pricing Act, passed the Agriculture and Agri-Food committee and will be returned to the House of Commons for third and final reading.

The private members’ bill, introduced by Ontario Conservative MP Ben Lobb in February, would exempt natural gas and propane used on farms for drying grain and heating barns from the federal carbon tax.

Farmers pay a carbon price for natural gas and propane for farming practices, like grain drying, irrigating their land, and heating or cooling their barns.

Committee vice-chair and Conservative Shadow Minister for Agriculture and agri-food John Barlow said the bill will put money back into the hands of farmers so that they can continue to invest in practices that drive innovation, further efficiencies, and reduce fuel usage.

“We’re another step closer to having propane and natural gas exempt from the carbon tax on farms. Now it goes back to the house for another couple hours of debate, third reading, and then on to the Senate,” Barlow said. “We’re really confident that we’ll get this done and offer some relief to farmers who are seeing crippling input costs.”

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Barlow said he is seeing more and more frustration from Canadian farmers over the government’s decisions on the role that Canadian agriculture plays.

“No movement on things like the fertilizer emissions reduction, the fertilizer, tariff, all of these things are having an impact on farmers and tripling the carbon tax. Farmers are frustrated,” Barlow said. “We’ve had so many of the agricultural stakeholder groups in Ottawa and every single group I’ve met with is becoming increasingly frustrated with this Liberal government and are encouraging them to push back.”

The carbon tax exemption bill went through committee with the support of the Conservative, New Democrat, and Bloc Quebecois members. The five Liberal members voted against the bill.

Grain Growers of Canada (GGC) Chair Andre Harpe commended the cross-party work of the Committee and urged all Members of Parliament to pass this legislation as it returns to the house for third and final reading.

“Farmers need practical on-farm policy that aligns sustainability and competitiveness” he said. “It’s encouraging to see support come from across-party lines, but now is the time for all parties to come together and support Bill C-234.”

Amendments were made to the original bill including an eight-year sunset clause where the government would have the option of extending the legislation. Also, the exemption would only apply to on-farm applications. It would not apply to commercial elevators.

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alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW