It was passed by Parliament before the election, had support from all parties, but didn’t gain final approval.
“It is inconceivable that the government is not providing relief to grain farmers by putting into place an exemption for the carbon tax on drying grain. All food production should be exempt from this tax.” said Brendan Byrne, chairman of Grain Farmers of Ontario.
“Farmers do not have alternatives to dry our grain, we cannot grow food and be penalized with an ever-increasing carbon tax that will be increased year over year.”
The federal government announced a tax credit in its fall economic statement of Dec. 14, but Grain Farmers of Ontario said that still does not provide Ontario grain farmers with relief from carbon tax paid on fuel to dry grain.
The Grain Farmers of Ontario news release said Ontario farmers cannot compete with U.S. farmers who don‘t have to pay the carbon tax to grow their grain.
"The proposed tax credit in no way makes up for the costs to farmers or replace the much-needed exemption." It would return less than 20 per cent of the costs incurred by corn growers, the GFO said.
“Grain Farmers of Ontario has repeatedly shared data showing the negative impacts of the cost of the carbon tax with government, along with the fact that alternatives don‘t exist,” added Byrne. “The government has created an exemption for greenhouse growers and others who don‘t have alternatives for 80 percent of use, while grain farmers in Ontario are covered for less than 20 per cent. I would ask the government to explain this discrepancy.”