By Canadian Press

Law exempting on-farm fuel from carbon tax heading to Senate

Mar 30, 2023 | 10:27 AM

OTTAWA — A private member’s bill that would create specific carve-outs for farmers in Canada’s carbon pricing scheme has passed in the House of Commons. 

The bill would exempt farmers from paying for emissions from natural gas and propane they use for certain activities performed on their farms, such as drying grain, preparing feed, irrigating and heating barns. 

It passed with the support of Conservative, NDP, Bloc Québécois and Green Party MPs, with a few Liberals, including agriculture committee chair Kody Blois, joining the opposition parties to vote in favour.

The bill introduced by Conservative MP Ben Lobb in February 2022, which would not exempt farmers from the carbon price for activities performed off-site, will now be debated in the Senate.

Farmer groups have said they are facing rising production costs, and the proposed law would give them critical financial relief from rising costs. 

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Agriculture Minister Marie-Claude Bibeau maintains that the federal government is helping farmers reduce their carbon footprints and ease financial burdens through a $3.5-billion sustainable agricultural partnership with provinces.

This report by The Canadian Press was first published March 30, 2023. 

The Canadian Press