A Senate committee report recommends that farmers and forest owners should be granted carbon offset credits when the federal carbon tax kicks into place in April.
It also says farmers ought not to have to pay carbon tax on energy used to heat barns and greenhouses.
It calls for more research to find ways in which farming can reduce greenhouse gas emissions, such as developing new crop varieties and technologies.
The federal carbon tax is due to start at $20 a tonne this April, eventually rising to $50 a tonne.
Ontario has joined Saskatchewan in a court challenge against the federal carbon tax.
Ontario Premier Doug Ford cancelled the Liberal government’s carbon exchange as one of his first acts after winning election last fall.
Under that exchange, the province raised several billions of dollars selling carbon credits to companies needing them to offset their ongoing greenhouse gas emissions. The Liberals used the revenues to carbon-reduction subsidies, such as up to $14,000 per vehicle for all-electric cars.
