No exemption for carbon tax on grain drying

It does not appear the federal government is keen on helping grain farmers deal with the added cost of the carbon tax on grain drying.

Agriculture and Agri-Food Minister Marie-Claude Bibeau spoke to reporters Tuesday to announce a second round of applications for the government’s local food infrastructure fund.

Bibeau was asked about the federal government’s analysis of the impact of the carbon tax on grain drying.

The provinces were asked to submit their estimates of the cost of the carbon tax on grain drying in November. Bibeau said the data the government received and analyzed shows the impact is a very small percentage of operating costs.

“The estimates ranged from $210 to $819 per farm and 0.05 per cent to 0.42 per cent of total farm operating expenses,” Bibeau said. “When you compare it to greenhouse heating, which is a significant portion of operating costs, if I’m not mistaken, it’s about seven per cent. There’s a significant difference.”

Bibeau said many other businesses would fall into the same level of impact.

“This is why we are not moving forward with more specific relief,” Bibeau said.

The Agricultural Producers Association of Saskatchewan (APAS) has been pushing the federal government to provide some relief to farmers who bear the burden of the additional cost.

APAS president Todd Lewis said grain drying is a necessary part of a farming operation. He said there was a tremendous amount of grain harvested that needed to be dried this winter and the carbon tax is a real, added cost to producers.

“It’s not insignificant. It comes directly off our bottom line and it’s very disappointing that one of the major tools we have to fight climate change mitigation is being taxed,” Lewis said.

Lewis said producers did a wonderful job saving the grain and getting it into the marketplace this year.

“It’s great technology, we need to use it and it’s unfortunate we have to be taxed on it,” he said.

By Alice McFarlane