REGINA - As of April 1, the federal carbon tax has increased to $65/tonne, marking the first year of an accelerated price on carbon that will continue to rise by $15/tonne carbon dioxide equivalent until it reaches $170 by 2030. However, Saskatchewan's agricultural sector is feeling the brunt of the carbon tax pricing system. The Agricultural Producers Association of Saskatchewan (APAS) is highlighting the disproportionate impact of this increase on farmers.
APAS President Ian Boxall expressed concerns, stating, "These additional costs come off our bottom-line because we're price takers who sell into international markets. The impact of these costs on our farm operations needs to be recognized to ensure we can remain competitive in international markets. Saskatchewan farms are going to pay over $40 million in carbon tax just to get their products to port. This is money that comes right out of rural Saskatchewan."
Boxall further noted that Saskatchewan farmers and ranchers face significant costs from carbon surcharges on fuel to transport goods to market, as they are the furthest from market access. For example, Saskatchewan grain production travels an average of 1,150 miles to port, incurring a carbon surcharge of $0.1129 per railcar mile. This equates to over $36 million in carbon surcharges on 26 million tonnes of grain shipped to market access. The same disadvantage applies to livestock, as the majority of cattle are shipped out of the province due to the lack of federally inspected meat processing facilities in Saskatchewan.
Boxall urged the Canadian senate to review Bill C-234, which exempts carbon charges on propane and natural gas for barn heating and grain drying. "This is a cost that producers see on their bills every month, and there are no available fuel alternatives with current technology," he noted. "Farmers will easily pay more in barn heating or grain drying each month than they will ever see in rebates. We need policy measures to provide exemptions and relief programs that recognize the competitive impact these costs are having on our bottom lines."
On March 20, Boxall spoke to the House of Commons' Standing Committee on Agriculture and Agri-Food, emphasizing the impact of farm input inflation and the rising cost of food. He highlighted the importance of transparency throughout food supply chains, stating that current policy needs to account for the impact of the carbon tax on the affordability of food in grocery stores and reduced farm margins.
