Farms.com Home   Ag Industry News

Carbon tax increasing Jan. 1

Carbon tax increasing Jan. 1

Sask. farmers are among those individuals who will pay more for fuels

By Diego Flammini
Staff Writer
Farms.com

Farming in some parts of Canada will get more expensive in a couple of weeks.

On Jan. 1, the federal carbon tax is increasing from $20 per tonne to $30 per tonne of greenhouse gas emissions. The federal government will gradually increase the tax on carbon until it reaches $50 per tonne in 2022.

For producers in provinces like Saskatchewan, the rise in carbon pricing will result in more operating costs.

Farm customers are expected to pay an additional $60 per year in 2020, SaskPower estimates. That figure could be higher depending on energy consumption.

“While SaskPower has not increased rates in 2019, the Federal Carob Tax means all SaskPower customers will pay more each month,” Dustin Duncan, the minister responsible for SaskPower, said in a Dec. 13. statement. “Saskatchewan’s Prairie Resilience climate change strategy establishes concrete steps toward meaningful greenhouse gas emissions reductions without the need for this harmful tax.”

Producers are displeased to see the carbon tax continue to rise.

If the 2020 harvest is anything like the 2019 harvest, farmers will be paying more than an extra $60 per year.

“I know a lot of farmers who couldn’t harvest one bushel without having to dry the grain,” Jocelyn Velestuk, a grower from Broadview, Sask., told Farms.com. “So, that’s an extra cost for a farmer and then paying a tax on that is just another expense that farmers have to absorb.”

Velestuk is also the president of the Saskatchewan Soil Conservation Association.

Many producers in Saskatchewan have started to implement practices to hold carbon in the soil instead of releasing it into the atmosphere, she said.

“The majority of the province has converted to direct seeding,” she said. “We know that in Saskatchewan we’re sequestering more carbon than we’re emitting as a whole, and we put more carbon in the ground every year than all the vehicles in Canada emit. We have that story to tell.”

The message farmers want to send to the federal government is simple, Velestuk says. Alterative methods of combatting climate change exist without simply enforcing a tax on Canadians.

“It’s not just about planting trees,” she said, referring to Prime Minister Trudeau’s commitment to plant two billion trees in the next decade. “We need to recognize what’s been done already and have programs and offset systems. I think that would be more effective than a tax.”

Farms.com has reached out to Sask. farm groups for comment.


Trending Video

Did Bears Win Thanksgiving, Will Bulls Get Christmas?

Video: Did Bears Win Thanksgiving, Will Bulls Get Christmas?


Did the bears win Thanksgiving (although this week had green on the screen), and will the bulls get Christmas? Bears won thanksgiving thanks to a USDA Nov crop report dud that stalled the bullish grain momentum for a brief period. But a bullish lower yield surprise in the Dec crop report could reignite the rally.
2026 U.S. winter wheat planting is nearly complete at 97% while crop conditions improved by 3 points to 48% good-to-excellent. US corn & soybean harvest is complete.
High corn demand, which is off the chart, and more Chinese soybean demand could support a Christmas rally.
Nasdaq had it’s worst November since 2011.
A U.S. Fed rate cut in December will help fund flow and sentiment.
Bitcoin held a long-term support at 80,000 and that's positive for fund flow and sentiment. It should help stock prices and Ag as we go into December.
Fertilizer prices continue to climb as we look ahead to 2026. Farmers may rely more on the nutrients that they already have in their soils.
South American Weather remains critical as the soybean reproductive stage starts from late Nov to late Feb depending on planting date.
Will a Russia-Ukraine peace deal happen by year-end?
CFTC data as of showed more managed money fund sell-off as of October 14th.