APAS: Federal carbon rebate announcement ignores the reality of Saskatchewan agriculture
The Agricultural Producers Association of Saskatchewan says the rebate and exemption system announced today for the federal carbon tax ignores the economic reality of Saskatchewan agriculture.
“Every producer will feel the impacts of the federal carbon tax though increased business costs,” explains APAS President Todd Lewis. “Farmers and ranchers have no way of passing these extra costs along the value chain.”
The carbon tax backstop policy exempts farm diesel and gasoline used on-farm but will impose the tax on other essential farm inputs such as fuel for road transport, rail transport and natural gas and propane.
“We have no alternatives for these forms of energy use,” Lewis says. “We have to transport our crops and livestock to our customers around the world, and in difficult years like 2018, we have to use energy to dry grain, or it will rot. We have to heat livestock buildings, or animals freeze. We have no choice.”
Lewis concluded by pointing out that because producers can’t pass along extra costs, they already seek out every opportunity to save energy costs. “This policy will only add costs to our bottom line, without addressing the issue of reducing carbon emissions.”