Cancelling consumer carbon price a ‘step in the right direction’ says Canadian Federation of Agriculture
Glacier FarmMedia—The Canadian Federation of Agriculture says the removal of the consumer carbon price will provide much-needed relief for farmers.
“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 CFA president Keith Currie in a news release.
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On Friday, new Prime Minister Mark Carney said the consumer carbon price would be canceled, effective April 1. This will set “the applicable fuel charge rates for all types of fuel and combustible waste to zero,” according to the text of the order in council.
The federal carbon pricing system has two parts: the charge on fuels and a system for industrial emitters, as per the government’s website.
The CFA said that, based on estimates in 2023 from the Parliamentary Budget Office, farmers would save over $100 million a year with the removal of the consumer carbon levy.
The CFA has long lobbied for exemptions from the carbon pricing system for farmers. Gasoline and diesel for farm use were exempted from the levy. Farm businesses may also apply to receive a refundable tax credit on eligible fuel charges, as per the federal government’s website.
Efforts by farm organizations to have propane and natural gas for heating and grain drying exempted stalled in late 2023.
“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,” said Currie.
“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.”
Source: Farmtario.com