Taxpayers Federation Makes Urgent Appeal for Senate Approval of Bill C-234 

The Canadian Taxpayers Federation (CTF) has issued an urgent call to the Canadian Senate, pressing for the swift approval of legislation set to broaden carbon tax exemptions for the agriculture sector.  

The appeal comes on the heels of an analysis by the Parliamentary Budget Officer (PBO), indicating the approval of Bill C-234 could lead to nearly $1 billion in savings for farmers by 2030. 

“Making it more affordable for farmers to produce food will make it more affordable for families to buy food,” Franco Terrazzano, CTF Federal Director, said in a release. 

“The Senate needs to stop sitting on its hands and pass this legislation immediately.” 

The PBO data points to a potential $978 million tax burden on Canadian farmers through 2030 from the carbon tax on natural gas and propane alone - essential fuels used extensively in grain drying and barn heating. 

Canadian producers already receive a carbon tax exemption for diesel and gasoline, but Bill C-234 seeks to further exempt farmers from paying the carbon tax on propane and natural gas used for drying grain and heating barns. The Bill was passed by the House of Commons back in March but continues to await final approval in the Senate. A previous bill that would provide the same exemption also previously passed the House but later died in the Senate.  

Farm leaders have voiced concerns about the continued Senate delays on Bill C-234, noting the impact on livestock producers and the fact the current carbon tax exacerbates already high production costs, threatening farm sustainability. In a letter to Saskatchewan senators also urging the passage of Bill C-234 late last month, Ian Boxall, President of the Agricultural Producers Association of Saskatchewan, said the issue of grain drying is of particular concern.  

“Ideally, we would not need to dry a single bushel of grain, rendering the taxation of energy use for this purpose irrelevant. Unfortunately, this is not our reality, and the carbon tax simply imposes an additional financial burden during a challenging time in the production season,” he said. 

The Grain Farmers of Ontario project that the carbon tax will add an additional cost of $46/acre in direct drying costs by 2030. For an average 800-acre farm, this translates to an operational cost hike of $36,800. 


Source: DePutter Publishing Ltd.

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