CPA meets with finance minister’s office to discuss removal of federal carbon tax on agriculture

On February 10, the CPA met with the federal government to discuss the removal of the federal carbon tax or “backstop” on propane for agricultural applications in Ontario, Alberta, Saskatchewan and Manitoba.

CPA Chair Dan Kelly and Vice-President of Government Relations Allan Murphy met with Aniel Jaswal, senior policy advisor to Federal Finance Minister Bill Morneau. The meeting was a follow up to a letter sent by CPA President & CEO Nathalie St-Pierre on January 20 to the minister requesting the tax be removed.

As of April 1, the federal backstop will increase from $0.0310 cents per litre to $.0464 cents a 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 also pointed out that the 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 will benefit both the business of farming and the environment in which farmers work.

Discussions also included the propane advantage and switching from carbon intense fuels to propane for heating fuel in Indigenous, rural and remote communities as well as in the transportation sector.