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Agriculture

While Europeans Vacation, Denmark Attacks Livestock Farmers With Cow Tax

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7 minute read

From Heartland Daily News

By Andrew Weiss

Economics aside, this policy will have no effect on global temperatures. Even if the entire European Union halted all emissions (including livestock) the global temperatures would be reduced by only 0.12 degrees Celsius by the year 2100, assuming the highest climate sensitivity to carbon.

As Europeans generate greenhouse gas emissions by driving or flying off on their long summer holidays, Denmark is trying to lower those emissions by taxing cow burps and flatulence to combat climate change.

The Danish government believes that taxing methane produced by animals will improve the lives of citizens by lowering global temperatures. Therefore, beginning in 2030, livestock farmers will be taxed $17 per ton of carbon dioxide-equivalent emitted by their livestock. That tax will increase to $43 by 2035.

The average cow emits the CO2 equivalent of about three tons per year in methane, so each cow will cost farmers $50 in 2030, reaching about $125 by 2035.

Other livestock such as sheep and pigs are also subject to the methane tax, but they emit less methane because of differences in the chemistry of their digestive systems.

But two professors—William A. van Wijngaarden of York University in Canada and William Happer of Princeton University—argue that restrictions on methane emissions are “not justified by facts.”

CO2 currently makes up about 420 ppm (parts per million), which is 0.042% of the atmosphere. Methane is a much lower 1.9 ppm, or about 0.0002% of the atmosphere.

Methane is increasing in the atmosphere at a rate of about 0.0076 ppm per year, while CO2 is increasing at a rate 300 times faster, or 2.3 ppm a year.

The methane molecule is about 30 times better at trapping heat than the carbon dioxide molecule. Therefore, methane contributes about one-tenth the warming of CO2.

Effect on the Economy

Denmark’s new animal tax will raise food prices. Prices for beef and milk will go up, percolating throughout the nation’s economy. Denmark’s economy contracted 1.8% last quarter and the inflation rate is 2.1%, but expect to see inflation increase with the new animal tax. The tax will disproportionately affect middle-income earners and the poor.

At the same time, farmers will see smaller profit margins. Some farmers will reduce their numbers of cows and shift to other animals or grain. Others might sell their farms and change occupations.

In America, the majority of beef farms are run by small operations. According to the U.S. Department of Agriculture, 54% of farms with beef cattle had fewer than 20 cows. On such a farm, raising a cow costs about $900 per year.

A U.S. methane tax identical to Denmark’s would be the same as an additional 15% tax on cattle. This would be devastating to small ranchers who are already pinched by increased overhead costs.

The Danish policy taxes carbon at $43 per ton. This so-called social cost of carbon is priced even higher here in America, and is an easily manipulated price tag that the government puts on carbon emissions.

Last fall, the U.S. Environmental Protection Agency proposed $190 per ton as the social cost of carbon to make its policies seem worth the regulatory burden. If taxed at this price level, a 20-cow operation would owe Uncle Sam an additional $11,000 per year.

Effect on Carbon Emissions

All 1.5 million cows in Denmark account for about 0.1% of the European Union’s annual 3.6 billion tons of greenhouse emissions.

The chart below compares greenhouse gas emissions by Danish cattle to emissions in all of Denmark and in the entire European Union.

When it comes to the atmospheric concentration of carbon dioxide, CO2 emitted in Denmark is no different than CO2 emitted anywhere else in the world.

If Danish lawmakers are concerned about CO2-caused climate change, the cost of the tax policy needs to be weighed against the global effect on emissions.

In 2022, India emitted 189 million metric tons more than it did in 2021. This is more than four times the entire carbon footprint of Denmark.

Effect on Global Climate

Economics aside, this policy will have no effect on global temperatures. Even if the entire European Union halted all emissions (including livestock) the global temperatures would be reduced by only 0.12 degrees Celsius by the year 2100, assuming the highest climate sensitivity to carbon.

These numbers are calculated using The Heritage Foundation’s climate calculator, which uses a government climate model. (You can use the calculator for yourself here.)

From Denmark to California

Although such policies may seem unlikely to take hold in freedom-loving America, similarly intrusive regulations already have been implemented across multiple sectors. These regulations affect everything in the U.S. from large-scale power plants and the automotive industry to everyday household items such as gas stoves, water heaters, and lawn equipment.

In some states, including New York and California, building codes now prohibit gas hookups in many new construction projects, denying residents the right to decide for themselves what energy sources to use.

As of Jan. 1, it became illegal to buy gas-powered lawn equipment such as lawnmowers, leaf blowers, or chainsaws in California. This law will cost landscaping businesses over $1 billion and raise the price of landscaping services, causing some to lose their jobs and business closures.

It is time to stop perpetuating the fairy tale that taxing cow burps will reduce global temperatures. Such regulations only increase food costs and inflation in general, making poverty even worse.

Andrew Weiss is a research assistant for domestic policy at The Heritage Foundation.

Originally published by The Daily Signal. Republished with permission.

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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