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KAP Gives Mixed Reaction To 2018 Provincial Budget

 
This week's provincial budget provided a few more details on the Manitoba Climate and Green Plan, along with the upcoming carbon tax.
 
Keystone Agricultural Producers (KAP) says it's looking forward to learning more about how the $102 million Conservation Trust Fund will be allocated, and the role farmers will play in in making investments on the rural landscape.
 
“We are hopeful that projects supported by the fund will include on-farm initiatives that deliver ecological goods and services to all Manitobans, including carbon sequestration and flood mitigation,” said President Dan Mazier.
 
The trust will be administered by the Manitoba Habitat Heritage Corporation.
 
The $25 per tonne carbon tax will come into effect on September 1, 2018.
 
Farmers will be exempt from paying on marked fuels, as well as emissions from livestock and crop production.
 
“It’s a myth that farmers will be entirely exempt from the carbon tax," commented Mazier. "We know from the experience of farmers in other provinces that costs are passed on by the inputs and service suppliers that farmers rely on.
 
“Farmers don’t have the option to pass on costs as prices paid to farmers for their production are set globally, based on world market demand, so Manitoba prices cannot be altered to pass on additional production costs and taxes to customers. We are hopeful that the government recognizes these costs and makes the investments back into the sector to help farmers adapt to climate change, a measure not included in the current budget.”
 
Source : Steinbachonline

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U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!