18 THE CAAR COMMUNICATOR Canadian carbon tax isn’t going anywhere anytime soon—farmers will have to adjust. No-till farming is a good soil-environmental practice. So too is creating windbreaks for houses and barns using tree lines—as a method to save money on heating. More efficient usage of fertilizer will keep the carbon from fertilizers in and around the plant roots and soil longer, resulting in more effective plant growth and less carbon escaping into the atmosphere. Adaptive grazing is where farmers use the smallest amount of land for the shortest amount of time as a way to provide a longer rest period for the land, which allows the land to regrow, which pulls more carbon back into plant roots and soil. Is there anything going on that can protect Canadian farmers? Yes, there are rebates available to Canadian farmers if they purchase: • any equipment that helps the farm improve its energy efficiency; • add solar panels and connect them to the provincial electric grid; • new equipment that improves your water use efficiency and reduces your energy use. It’s also worth noting that carbon taxes are not applied to dyed diesel or gasoline fuels that are used in farming operations. Is there anything else that can provide financial relief for the ag industry? Yes. The latest event is Bill C-234, which, if passed, will remove the carbon tax fuel surcharge against propane and natural gas when used by farmers when no other alternative is available. In a statement, the Ontario Federation of Agriculture (OFA) said: “With no viable alternatives to propane and natural gas for grain drying and barn heating, and the high price for energy use, the charge collected on these fuels makes it even more difficult for farmers to manage business finances.” If Bill C-234 is eventually passed, it will provide Canadian farmers with some tax relief that could be used to invest back into their businesses. A recent Parliamentary Budget Officer report suggested that the carbon tax relief seen in just Bill C-234 could save Canadian farmers nearly $1 billion through 2030. What about carbon tax credits? This is cheating. But it’s legal and is known as capand-trade. Should a company produce excessive carbon emissions, rather than pay its fair share of the carbon tax penalty, that company can buy carbon credits from a third party for less. The carbon credits allow the buyer to emit a fixed amount of CO2 (carbon dioxide) without fear of being hit by the carbon tax. It is cheating, but it is hoped that those purchasing carbon credits will still do their part and change the way they go about their day-to-day business. If they don’t try to alleviate their carbon emissions by changing processes, the carbon credit purchase then becomes akin to a permission slip to expel all the CO2 they want without having to pay the Canadian carbon tax. It also means that they don’t contribute to the Climate Action Incentive Payment (CAIP) that Canadian citizens receive quarterly. Perhaps because change within an industrial sector is slow, we can state that industries such as the oil and gas sector remain the largest producers of GHG emissions. But because of the purchase of carbon credits, it pays the lowest carbon tax rate. We can argue about the injustice all we like, but it’s a smart business ploy. Do companies that provide carbon credits contribute to the Canadian carbon tax system? The writer is not sure. If anyone has any information about this, please let us know. Most of us are aware that the State of California is very concerned about reducing its carbon footprint for the world. However, even though they have carbon tax systems in place, California—as well as the European Union—gives free credits to carbon-intensive sectors to protect them from foreign competitors who don’t pay a carbon price. This scenario is also being used to better prevent these industries from moving outside of California (or the EU) to a less expensive territory abroad. Should Canada not protect its ag industry? Yes. But how to do that is a ticking time bomb that will have multiple answers, all correct and, at the same time, all wrong. Right now, it is what it is. And since Québec is among the global leaders in its lack of GHG emissions, maybe we should see just what it is they are doing so well. Every province is different, but perhaps there are some additional lessons to be learned for the rest of us to change the way we go about our day-to-day in the agriculture sector. CARBON TAX
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