CPA Public Affairs
April 2020

UPDATE - CPA meets with Finance Minister’s office to discuss removal of federal backstop on agriculture

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On February 10, CPA's Chair Dan Kelly and VP of Government Relations Allan Murphy met with Aneil Jaswal, senior policy advisor to federal Finance Minister Bill Morneau.

The meeting was a follow up to a January 20 letter from CPA President & CEO Nathalie St-Pierre to the minister. Specifically, items discussed included the removal of the federal carbon tax or “backstop” on propane for agricultural applications in Ontario, Alberta, Saskatchewan and Manitoba.

As of April 1, the federal backstop will increase from $0.0310 per litre to $.0464 cents per litre. Kelly explained to the minister’s office that the effect on the bottom line for farmers is very significant and given the challenges that affect the agriculture sector, the best course of action is to remove the backstop from all agricultural applications altogether.

It was pointed out to the minister’s office that the federal government should be making every effort to support the farming community and that the application of the carbon tax on low-emission propane is a burden that weighs heavily on farmers in Canada.

Instead, federal tax policy should be aimed at encouraging the expanded use of low-emission propane, which would benefit both the business of farming and the environment in which farmers work.

In addition to tax policy concerning agriculture, discussions also dealt with the propane advantage in switching from carbon intense fuels to propane for heating fuel in Indigenous, rural and remote communities as well as in the transportation sector.


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