Carbon tax increase hurts agriculture sector

Saskatchewan farmers are facing more financial hardships with the increase in the federal carbon tax that took effect on Apr. 1.

The carbon tax increased to $65 per tonne. This is the first year of an accelerated price on carbon that continues rising by $15 tonne carbon dioxide equivalent until it reaches $170 by 2030.

The Agricultural Producers Association of Saskatchewan (APAS) President Ian Boxall said the carbon tax increase has a significant impact on agriculture.

“These additional costs come off our bottom line because we’re price takers who sell into international markets,” Boxall said. “The impact of these costs on our farm operations needs to be recognized to ensure we can remain competitive in international markets.