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With No Alternatives the Carbon Tax Hits Farmers’ Bottom Line

CANADA – The Atlantic Grains Councils, Grain Farmers of Ontario, Producteurs de grains du Québec and the Western Canadian Wheat Growers Association call on the federal government and all the federal parties to provide relief from the carbon tax burden on grains and oilseed farmers immediately.
The grain farmers’ bill from Canada’s carbon tax on grain drying alone will be $100 million in 2022.  Grain farmers have no choice but to dry wet grain before they market it and the only available fuel is either propane or natural gas as there are no viable alternatives.
Fuel used for grain drying isn’t the only concern for grain farmers. The accumulative indirect inflation of carbon tax on farm costs is estimated to be $14.50 an acre with that cost escalating by more than double in 2022 to almost $30 an acre. The cost for rail and truck freight for shipping grain and fertilizer as well as fertilizer itself are all subject to the carbon tax and each one of these suppliers will pass along their carbon tax bill to farmers to pay.  The additional costs of the carbon tax cannot be passed along the value chain.  Farmers will be paying that tax and the tax on their suppliers out of their own pockets.
“The carbon tax is a direct hit on all grain farmers bottom line.  Farmers cannot force suppliers to use alternative fuels nor can we pass the costs on to the end consumer,” said Gunter Jochum, President, Western Canadian Wheat Growers Association. “We need the federal government to recognize the carbon storage that grain farmers create every year to offset this tax.”
“The price on carbon is one more burden on top of global trade disruptions and low commodity prices that reduces farmers’ income ”  Said William Van Tassel, Producteurs de grains du Québec
“The carbon tax on grain drying needs to be eliminated immediately.” Said Markus Haerle, Chairman Grain Farmers of Ontario “Grain farmers need the government to reimburse the carbon tax bill for grain drying from 2019, farmers have no alternative fuel for grain drying and cannot afford to pay it in the face of historical low commodity markets”
“Farmers can’t cover the cost of the carbon tax, farmers need the federal government to relieve the burden of the carbon tax on farmers” said Neil Campbell, Atlantic Grains Council.
Source : GFO