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Agriculture

Carbon Tax and Clean Fuel Standard a double blow to Canadian farmers

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This post is submitted by Red Deer Mountain View MP Earl Dreeshen

MP DREESHEN TABLES PETITION ON CARBON TAX

AND CLEAN FUEL STANDARD IN HOUSE OF COMMONS

MP Earl Dreeshen tabled a petition in the House of Commons today, on Canada’s Agriculture Day, calling on the Liberal government to exempt all direct and indirect input costs that the Carbon Tax imposes on farmers, while also calling on the government to repeal the Clean Fuel Standard.

“Canadian farmers and ranchers are losing tens-of-thousands of dollars in net income each year because of the Liberal government’s ill-conceived carbon tax and that is simply not sustainable for most of them,” MP Dreeshen said.

‘Our global competitors are not burdened by the huge carbon tax debt. But Canadian farmers and ranchers do not have the ability to add the carbon tax levy to the price of their product. They have to pay this tax as it is levied by their input suppliers. Exempting input costs will put Canadian farmers on an equal footing with their international competitors and allow them to keep producing the world’s best and most nutritious foods.”

The Liberal government announced at the end of last year that the carbon tax will triple to $170 per tonne by 2030 following a commitment made in the last election that the tax would not increase beyond $50 per tonne. According to the Parliamentary Budget Officer, a farm in Alberta with 850 seeded acres of crops can expect the Liberal government’s carbon tax cost it more than $17,000 per year once the tax reaches $50 per tonne in 2022.

The Liberal government is also proceeding with the so-called Clean Fuel Standard, which some studies estimate will represent a total cost to the Canadian economy of $7 to $15 billion and 50,000 lost jobs, including an impact of $389 million to the Agricultural sector. “Nobody needs or wants an extra tax on top of another tax so we need to repeal the CFS before it even gets off the ground,” MP Dreeshen said.

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Agriculture

Lacombe meat processor scores $1.2 million dollar provincial tax credit to help expansion

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Alberta’s government continues to attract investment and grow the provincial economy.

The province’s inviting and tax-friendly business environment, and abundant agricultural resources, make it one of North America’s best places to do business. In addition, the Agri-Processing Investment Tax Credit helps attract investment that will further diversify Alberta’s agriculture industry.

Beretta Farms is the most recent company to qualify for the tax credit by expanding its existing facility with the potential to significantly increase production capacity. It invested more than $10.9 million in the project that is expected to increase the plant’s processing capacity from 29,583 to 44,688 head of cattle per year. Eleven new employees were hired after the expansion and the company plans to hire ten more. Through the Agri-Processing Investment Tax Credit, Alberta’s government has issued Beretta Farms a tax credit of $1,228,735.

“The Agri-Processing Investment Tax Credit is building on Alberta’s existing competitive advantages for agri-food companies and the primary producers that supply them. This facility expansion will allow Beretta Farms to increase production capacity, which means more Alberta beef across the country, and around the world.”

RJ Sigurdson, Minister of Agriculture and Irrigation

“This expansion by Beretta Farms is great news for Lacombe and central Alberta. It not only supports local job creation and economic growth but also strengthens Alberta’s global reputation for producing high-quality meat products. I’m proud to see our government supporting agricultural innovation and investment right here in our community.”

Jennifer Johnson, MLA for Lacombe-Ponoka

The tax credit provides a 12 per cent non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bio processors that add value to commodities like grains or meat or turn agricultural byproducts into new consumer or industrial goods.

Beretta Farms’ facility in Lacombe is a federally registered, European Union-approved harvesting and meat processing facility specializing in the slaughter, processing, packaging and distribution of Canadian and United States cattle and bison meat products to 87 countries worldwide.

“Our recent plant expansion project at our facility in Lacombe has allowed us to increase our processing capacities and add more job opportunities in the central Alberta area. With the support and recognition from the Government of Alberta’s tax credit program, we feel we are in a better position to continue our success and have the confidence to grow our meat brands into the future.”

Thomas Beretta, plant manager, Beretta Farms

Alberta’s agri-processing sector is the second-largest manufacturing industry in the province and meat processing plays an important role in the sector, generating millions in annual economic impact and creating thousands of jobs. Alberta continues to be an attractive place for agricultural investment due to its agricultural resources, one of the lowest tax rates in North America, a business-friendly environment and a robust transportation network to connect with international markets.

Quick facts

  • Since 2023, there are 16 applicants to the Agri-Processing Investment Tax Credit for projects worth about $1.6 billion total in new investment in Alberta’s agri-processing sector.
  • To date, 13 projects have received conditional approval under the program.
    • Each applicant must submit progress reports, then apply for a tax credit certificate when the project is complete.
  • Beretta Farms has expanded the Lacombe facility by 10,000 square feet to include new warehousing, cooler space and an office building.
    • This project has the potential to increase production capacity by 50 per cent, thereby facilitating entry into more European markets.

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Agriculture

Canada’s supply management system is failing consumers

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This article supplied by Troy Media.

Troy Media By Sylvain Charlebois

The supply management system is cracking. With imports climbing, strict quotas in place and Bill C202 on the table, we’re struggling to feed ourselves

Canada’s supply management system, once seen as a pillar of food security and agricultural self-sufficiency, is failing at its most basic function:
ensuring a reliable domestic supply.

According to the Canadian Association of Regulated Importers, Canada imported more than 66.9 million kilograms of chicken as of June 14, a 54.6 per cent increase from the same period last year. That’s enough to feed 3.4 million Canadians for a full year based on average poultry consumption—roughly 446 million meals. Under a tightly managed quota system, those meals were supposed to be produced domestically. Instead imports now account for more than 12 per cent of this year’s domestic chicken production, revealing a growing dependence on foreign supply.

Supply management is Canada’s system for regulating dairy, poultry and egg production. It uses quotas and fixed prices to match domestic supply with demand while limiting imports, intended to protect farmers from global price swings and ensure stable supply.

To be fair, the avian influenza outbreak has disrupted poultry production and partially explains the shortfall. But even with that disruption, the numbers are staggering. Imports under trade quotas set by the World Trade Organization, the Canada-United States Mexico Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership are running at or near their allowable monthly share—known as pro-rata
levels—signalling not just opportunity, but urgency. Supplementary import permits, meant to be used only in emergencies, have already surpassed 48 million kilograms, exceeding total annual import volumes in some previous years. This isn’t a seasonal hiccup. It’s a systemic failure.

The system, designed to buffer domestic markets from global volatility, is cracking under internal strain. When emergency imports become routine, we have to ask: what exactly is being managed?

Canada’s most recent regulated chicken production cycle, which ended May 31, saw one of the worst shortfalls in over 50 years. Strict quota limits stopped farmers from producing more to meet demand, leaving consumers with higher grocery bills and more imported food, shaking public confidence in the system.

Some defenders insist this is an isolated event. It’s not. For the second straight week, Canada has hit pro-rata import levels across all chicken categories. Bone-in and processed poultry, once minor players in emergency import programs, are now essential just to keep shelves stocked.

And the dysfunction doesn’t stop at chicken. Egg imports under the shortage allocation program have already topped 14 million dozen, a 104 per cent jump from last year. Not long ago, Canadians were mocking high U.S. egg prices. Now theirs have fallen. Ours haven’t.

All this in a country with $30 billion in quota value, supposedly designed to protect domestic production and reduce reliance on imports. Instead, we’re importing more and paying more.

Rather than addressing these failures, Ottawa is looking to entrench them. Bill C202, now before the Senate, seeks to shield supply management from future trade talks, making reform even harder. So we must ask: is this really what we’re protecting?

Meanwhile, our trading partners are taking full advantage. Chile, for instance, has increased chicken exports to Canada by more than 63 per cent, now accounting for nearly 96 per cent of CPTPP-origin imports. While Canada doubles down on protectionism, others are gaining long-term footholds in our market.

It’s time to face the facts. Supply management no longer guarantees supply. When a system meant to ensure resilience becomes a source of fragility, it’s no longer an asset—it’s an economic liability.

Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain. 

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.

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