Eighty-two per cent of farmers say the federal carbon tax is negatively impacting their business (94 per cent of farmers in the field crop sector, 93 per cent in the livestock sector), reveals new survey data from the Canadian Federation of Independent Business (CFIB).
On average, farmers estimate they will pay almost $14,000 in federal carbon taxes in the first year it applies to them (April 1st, 2019 to March 31st, 2020).
In response to a request for data on how the federal carbon tax is impacting the farming community, CFIB sent a to the federal Agriculture minister, Marie-Claude Bibeau, outlining farmers鈥� views on the federal carbon tax and the significant negative impact it is having on farm businesses.
鈥淐FIB has been hearing from farmers about how the mounting costs of the federal carbon tax are taking a real bite out of their bottom line,鈥� said Marilyn Braun-Pollon, CFIB vice-president, Western Canada and Agri-business. 鈥淕iven the challenging harvest last year, ongoing trade disputes, and the threat of a prolonged rail disruption, we urge the Minister to address farmers鈥� serious concerns about the carbon tax which is hurting the overall competitiveness of the agriculture sector.鈥�
Other key findings from a February 2020 survey of farmers reveal the following:
路Farmers care about the environment: When asked what motivates their business to implement measures to improve environmental quality, 87 per centof Canadian farmers said they were motivated by their own personal views;
路Almostfour in five (78 per cent) Canadian farmers have taken action in the last several years to lessen their environmental impact;
路93 per centof farmers in Saskatchewan, Manitoba and Ontario agree the federal government should not charge GST (five per cent sales tax) on the federal carbon tax as it currently does;
路Farmers cannot pass the federal carbon tax costson to their customers, despite the government鈥檚 assurances: 83 per cent of farmers in the field crop sector said they would be able to pass on less than 10 per cent of the federal carbon tax costs to customers between April 1st, 2019 and March 31st, 2020. Over 78 per cent of these farmers will have to eat the entire cost.
鈥淕iven most farmers are price takers, these costly carbon taxes actually hamstring farmers鈥� ability to compete and invest in new technology to be even more efficient,鈥� added Braun-Pollon. 鈥淭hat鈥檚 why we are recommending exemptions from the federal carbon tax for propane, natural gas and aviation fuel used for farming activities in CFIB鈥檚 recent pre-budget submission for the upcoming federal budget.鈥�
CFIB recommendations outlined in the letter to Minister Bibeau include:
路Exempt natural gas, propane, and aviation fuelused by farmers for farming activities such as drying grain, heating livestock facilities, or spraying crops from the federal carbon tax, including those farm expenses from 2019.
路End the practice of charging GST on the federal carbon tax.
路Stop further increases in the overall tax burden (e.g. CPP and carbon tax) on farmers.
路Work to improve Canada鈥檚 overall tax and regulatory competitiveness in the agriculture sector.
聽鈥淭he federal carbon tax is ineffective and punishes farmers with significant costs making them less profitable and competitive on the world stage,鈥� concluded Braun-Pollon. 鈥淲e urge the federal government to use this new data and act on the recommendations to expand these much needed exemptions for the agriculture sector.鈥�
