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Government is fully aware that a carbon tax will harm farmers without impacting climate change

Farmers are already cutting emissions - why punish them with carbon taxes?


By Todd MacKay, Prairie Director and Aaron Wudrick, Federal Director——--September 20, 2017

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(This column originally appeared on the Toronto Sun) Saskatchewan farmer Levi Wood and Agriculture Canada bureaucrats agree on two things: 1) Canadian farmers are producing more food while reducing emissions; and, 2) hitting farmers with a carbon tax won’t reduce emissions faster. “The agricultural sector is producing more without increasing its GHG emissions,” wrote the Ottawa bureaucrats in an internal memo entitled Potential Impacts of Carbon Pricing on the Primary Agricultural Sector. The memo came to light through access-to-information requests filed by investigative journalists at Blacklock’s Reporter and goes on to say the federal government’s proposed carbon tax would be unlikely to incent change because it’s “too low.”
Mr. Wood delivers a similar message. “In the last 30 years we’ve seen yields double, they’ve tripled in some places,” said Mr. Wood while standing in a field of durum near Pense, Sask. “We’re making better use of our soil. We’re producing more on less land. Our crop genetics are better. Our machinery has improved dramatically.” But that machinery is still fueled by diesel and it needs a lot of it during harvest. “We’re using thousands of litres a day,” said Mr. Wood. “What kind of change could I make to lower that? I don’t see anything out there.” What would Mr. Wood do if he had to pay a 13.5 cent-per-litre carbon tax on diesel? Would he buy new equipment or invest in research and development? Or is there a more likely outcome? “It just means our bottom line goes down without lowering our emissions,” he said. For most of us, it’s hard to imagine the efficiency leaps that have happened in agriculture. Mr. Wood notes that compared to his own childhood, larger and more efficient combines mean crops are cut lot faster – and that’s just one of many examples of increased efficiency. Like most Canadian farmers, he’s already using the best equipment available. “This is the most environmentally friendly generation on our farm,” said Mr. Wood. “And that trend is going to continue for future generations.”

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Agriculture Canada draws a similar conclusion. Even though farmers are already reducing emissions, Ottawa estimates its carbon tax will cost Western Canadian farmers an average of $3,702 per year. While some sectors, such as dairy and poultry, can pass increased costs on to consumers through government-enforced pricing structures, the bureaucrats note that’s not the case for most farmers because “the agricultural sector is trade dependent and exposed to foreign competition.” “We don’t have the ability to pass those costs on because we’re dealing in world markets,” said Mr. Wood. His competition comes from other countries such as Australia where a carbon tax has already been tried and repealed and from the United States where a carbon tax is nowhere on the horizon. “We would just have to absorb those costs.” Thus far, the consensus between the Ottawa bureaucrats and Mr. Wood would seem to be unremarkable. It’s not surprising that farmers are already doing everything they can do to reduce costs and emissions. Nor is it surprising that a carbon tax will make it harder for Mr. Wood and his colleagues to compete on world markets. What is stunning is that these internal documents unearthed by Blacklock’s Reporter show the government is fully aware that a carbon tax will harm farmers without impacting climate change. Even potential exemptions for agriculture only marginally change the equation – even if Mr. Wood doesn’t pay a carbon tax for the fuel in his combine, he’ll get hit with the increased cost of shipping crops to market. Despite all of this, the federal government is moving ahead with its carbon tax policy. Mr. Wood’s family has been farming since 1887. He’s committed to caring for the environment because he’s wants to pass on a farm that’s healthy for generations to come. But if politicians proceed with a carbon tax, his family’s livelihood – and that of thousands like his – will be put in jeopardy.


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Canadian Taxpayers Federation Todd MacKay, Prairie Director and Aaron Wudrick, Federal Director -- Bio and Archives

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