Keystone Agricultural Producers (KAP) says that Manitoba corn growers will have paid almost $1.7 million in federal carbon tax related to the cost of drying their corn by the time this harvest season ends.
“We are firm in our position that there needs to be an exemption for farmers under the carbon tax framework for all the costs associated with drying all grain, as well as for heating barns and farm buildings,” said KAP President Bill Campbell. “Now that Manitoba falls under the federal backstop, farmers are left paying prices that, as price-takers in the global economy, cannot be passed along.”
KAP says that following the meeting of the federal, provincial, and territorial agriculture ministers in late 2019, the farm lobby group worked with farmers across the province to compile data to demonstrate the need for an exemption under the federal backstop. The request for this information was made by Federal Agriculture Minister Marie-Claude Bibeau and Manitoba Minister of Agriculture and Resource Development Blaine Pedersen.
"The carbon tax on grain drying not only impacts our profitability as farmers but our competitiveness in a world market," says Manitoba Corn Growers Association President Dennis Thiessen. "If we look to corn farmers in the northern United States, they are paying less for their drying costs and on top of that don't pay a carbon tax. That corn comes into Manitoba, making Manitoba farmers uncompetitive. This is completely unacceptable, impacts Manitoba farmer's profitability and the federal government needs to be aware of this."
KAP says initial data shows that the average producer paid $3.69 per acre in carbon tax on grain drying (primarily corn), including propane and natural gas. This amounts to almost $1.7M leaving the provincial economy this year from corn production alone. A typical farmer in this province growing 500 acres of corn spent approximately $14,145 on fuel for drying, while the carbon tax added $1,722 to their fuel bill.
Wet conditions this harvest meant that other grain had to be dried as well.
This week at Manitoba Ag Days, KAP is asking producers to stop by its booth with their fuel bills from drying grain.
Click here to see more...