Bill to exempt farm fuels from the carbon tax passes second reading

A private member’s bill to exempt all farm fuels from the federal carbon tax passed second reading in the House of Commons.

Bill C-206, introduced by Conservative Philip Lawrence, would also exempt natural gas and propane used for grain drying from the carbon tax.

Read more: Canada owes $200M across 3 provinces after underestimating carbon tax revenue

The bill was supported by the Bloc Quebecois, the NDP and the Green Party.

“The support of the NDP and Bloc shows that whether you agree with the carbon tax or not, this is a necessary change to support the livelihoods of Canadian farmers,” Lawrence said Wednesday in a statement.

“Unfortunately, the failure of the Liberals to support this critical legislation proves again that they are more interested in playing partisan games than helping farmers across Canada.”

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The Agricultural Producers Association of Saskatchewan, which supports the bill, said the carbon tax creates expenses that cannot be passed on to consumers.

“Our members have been very concerned about the impact of the federal carbon pricing system on unavoidable energy inputs like fuel to dry grain or heat livestock facilities,” APAS president Todd Lewis said in a statement.

“We have been calling for the federal government to recognize these impacts and provide relief through exemptions, or rebates at the very least.”

Read more: Federal carbon tax system could hit Saskatchewan farmers hard — APAS

Lawrence said the carbon tax creates an unfair burden on farmers, who he said are feeling the effects of the COVID-19 pandemic, global trade wars and weather uncertainty.

“Today is a win for Canada’s agriculture workers,” Lawrence said.

“Conservatives will always advocate for farmers and will continue to propose common-sense policies that will make life more affordable in our world-class agriculture sector.”

The bill now heads to the agriculture committee.

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