According to the Canadian Federation of Independent Business (CFIB), 82% of farmers say the new carbon tax is negatively impacting their business. After a survey by the CFIB, it was found that on average farmers estimate they will pay almost $14,000 in federal carbon taxes in the first year it applies to them. A large part of this cost coming from necessary activities such as grain drying or crop dusting

The CFIB says almost 4-in-5 farmers have taken action in the past several years to lessen their environmental impact. 

"The carbon tax is unfairly punishing farmers for using products for which they have few or no practical alternatives," said the vice president with the Canadian Federation of Independent Business, Marilyn Braun-Pollon.

To help remedy the hefty costs of the carbon tax on farmers across the country, Braun-Pollon suggests;

  • Exempt natural gas, propane, and aviation fuel used 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.
  • End the practice of charging GST on the federal carbon tax.
  • Stop further increases in the overall tax burden (e.g. CPP and carbon tax) on farmers.
  • Work to improve Canada’s overall tax and regulatory competitiveness in the agriculture sector.

“The federal carbon tax is ineffective and punishes farmers with significant costs making them less profitable and competitive on the world stage,” added Braun-Pollon. “We urge the federal government to use this new data and act on the recommendations to expand these much-needed exemptions for the agriculture sector.”

Braun-Pollon adds that this carbon tax on top of a rough harvest this last fall is weighing heavily on farmers across the region, making it difficult to keep up.