The Agricultural Producers Association of Saskatchewan says the rebate and
exemption system announced today for the federal carbon tax ignores the economic
reality of Saskatchewan agriculture.
“Every producer will feel the impacts of the federal carbon tax though increased
business costs,” explains APAS President Todd Lewis. “Farmers and ranchers have no
way of passing these extra costs along the value chain.”
The carbon tax backstop policy exempts farm diesel and gasoline used on-farm but will
impose the tax on other essential farm inputs such as fuel for road transport, rail
transport and natural gas and propane.
“We have no alternatives for these forms of energy use,” Lewis says. “We have to
transport our crops and livestock to our customers around the world, and in difficult
years like 2018, we have to use energy to dry grain, or it will rot. We have to heat
livestock buildings, or animals freeze. We have no choice.”
Lewis concluded by pointing out that because producers can’t pass along extra costs,
they already seek out every opportunity to save energy costs. “This policy will only add
costs to our bottom line, without addressing the issue of reducing carbon emissions.”
Source : APAS