Carbon Tax Cut Eases Farmers’ Burden
The Canadian Federation of Agriculture (CFA) welcomed the recent announcement that the consumer carbon price will be set to zero after March 31, 2025. This decision is expected to ease financial pressures on farmers across the country.
“Farmers are being squeezed from seemingly all sides at once with inflation and tariffs from both the US and China. The long-awaited removal of the carbon tax will provide farmers a bit of relief from this pressure and can be seen as recognition for the difficult place Canadian farmers and consumers find themselves in today,” said Keith Currie, CFA President.
For years, CFA has advocated for carbon tax exemptions to support the agricultural sector. According to estimates from the Parliamentary Budget Office in 2023, eliminating the consumer carbon price could save farmers over $100 million annually.
While this decision is a positive development, CFA believes that more steps are needed. “The signing of this order-in-council is a reassuring step in the right direction, but we need to see Parliament reconvene and provide a long-term solution that removes the consumer carbon price from legislation and ensures farms of all sizes are exempt from the carbon price. We look forward to continuing to work with the Government of Canada to ensure future environmental policies enable long-term sustainable productivity growth and the competitiveness of Canadian agriculture,” said Currie.
The organization remains focused on ensuring that future policies support both economic stability and environmental responsibility in the farming sector. By addressing these concerns, policymakers can help secure a more sustainable and competitive future for Canadian agriculture.
Photo Credit: cfa-logo