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Clean Fuel Standards

Saskatchewan Farmers face increased challenges with Clean Fuel Standards

Jun 29, 2023 | 11:59 AM

The Saskatchewan Association of Rural Municipalities (SARM) believes the implementation of clean fuel standards on July 1 will impact farmers’ bottom line.

The new regulations will cover the entire life cycle of fuels, from production and transport to consumption.

In a statement, SARM said the farming community is grappling with challenges arising from the implementation of the standards.

SARM President Ray Orb said the requirements will lead to increased fuel prices.

“We see this very much as a Carbon Tax 2.0,” Orb said. “This will increase costs to all farm production, there’s no doubt about it.”

The Parliamentary Budget Office predicts a price increase of 17 cents per litre. That’s on top of the 37 cents the carbon tax will add to a litre of gasoline by 2030, causing an economic cost to GDP of roughly $9 billion.

SARM continues to stress to the Federal Government that it is imperative to strike a balance between environmental stewardship and the economic well-being of Saskatchewan’s farmers.

Agriculture is an energy-intensive industry, requiring fuel for machinery, transportation, and heating. The carbon taxes directly increase the cost of these essential inputs, straining farmers’ profitability and jeopardizing the viability of their operations.

The statement goes on to say the Federal Government has failed to consider the unique circumstances of Saskatchewan’s farming sector with its long and harsh winters where heating systems are necessary to protect livestock and maintain optimal growing conditions in greenhouses and barns.

SARM is continuing to push the federal government to reconsider imposing this tax.

alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW

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