By Nigel Maxwell

Saskatchewan farm group ‘disappointed’ with federal carbon tax

Oct 24, 2018 | 5:00 PM

The federal government’s carbon tax rebate program announced on Tuesday, received a thumbs down from at least one group representing Saskatchewan farmers, who claim it won’t do much to save the bottom line for producers.

Todd Lewis, President of the Agricultural Producers Association of Saskatchewan, said the farm fuel exemption is welcome, but added so many more costs will rise because of the carbon tax including transportation.

“All our materials are trucked in and those truck costs are going to rise. Rail freight rates will certainly rise too because of it,” he said.

According to a federal website detailing the pricing scheme, there will be a 4.42 cent per litre charge on gasoline starting in April 2019 in Saskatchewan, alongside a fuel charge of 3.91 cents per cubic metre for natural gas used in home heating. Gas and diesel used on farms will be exempt. These rates will increase over time.  Lewis said costs for agricultural plastics, chemicals, fertilizer and even tires will all be impacted. 

“You know our dealerships are going to see their costs go up. They all pay electrical, and gas bills and they are just going to pass those costs down to their customers which are producers,” he said. “And there’s no way we can pass this along to our customers because we live in a world market and our competitors don’t have a carbon tax but unfortunately we do,” Lewis said

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Lewis, along with other representatives from APAS will be in Ottawa next week to do some lobbying, and Lewis said he planned to let the government officials know exactly how he felt about the levy and the rebate program.

“Farmers are part of the solution here, we are not part of the problem and we need recognition for sequestration and all the good work we have done and will continue to do,” he said. 

— with files from Tyler Marr

nigel.maxwell@jpbg.ca

On Twitter: @nigelmaxwell