Agriculture
How oil and gas support food security in Canada and around the world
General view of the ‘TD Canadian 4-H Dairy Classic Showmanship’ within the 101st edition of Royal Agricultural Winter Fair at Exhibition Place in Toronto, Ontario, on November 6, 2023. The Royal is the largest combined indoor agriculture fair and international equestrian competition in the world. Getty Images photo
From the Canadian Energy Centre
‘Agriculture requires fuel, and it requires lubricants. It requires heat and electricity. Modern agriculture can’t be done without energy’
Agriculture and oil and gas are two of Canada’s biggest businesses – and they are closely linked, industry leaders say.
From nitrogen-based fertilizer to heating and equipment fuels, oil and gas are the backbone of Canada’s farms, providing food security for Canadians and exports to nearly 200 countries around the world.
“Canada is a country that is rich in natural resources, and we are among the best, I would even characterize as the best, in terms of the production of sustainable energy and food, not only for Canadians but for the rest of the world,” said Don Smith, chief operating officer of the United Farmers of Alberta Co-operative.
“The two are very closely linked together… Agriculture requires fuel, and it requires lubricants. It requires heat and electricity. Modern agriculture can’t be done without energy, and it is a significant portion of operating expenses on a farm.”
The need for stable food sources is critical to a global economy whose population is set to reach 9.7 billion people by 2050.
The main pillars of food security are availability and affordability, said Keith Currie, president of the Canadian Federation of Agriculture (CFA).
“In Canada, availability is not so much an issue. We are a very productive country when it comes to agriculture products and food products. But food affordability has become an issue for a number of people,” said Currie, who is also on the advisory council for the advocacy group Energy for a Secure Future.
The average price of food bought in stores increased by nearly 25 per cent over the last five years, according to Statistics Canada.
Restricting access to oil and gas, or policies like carbon taxes that increase the cost for farmers to use these fuels, risk increasing food costs even more for Canadians and making Canadian food exports less attractive to global customers, CFA says.
“Canada is an exporting nation when it comes to food. In order for us to be competitive we not only have to have the right trade deals in place, but we have to be competitive price wise too,” Currie said.
Under an incredible Saskatchewan sky, a farmer walks toward his air seeder to begin the process of planting this year’s crop. Getty Images photo
Canada is the fifth-largest exporter of agri-food and seafood in the world, exporting approximately $93 billion of products in 2022, according to Agriculture Canada.
Meanwhile, Canadians spent nearly $190 billion on food, beverage, tobacco and cannabis products in 2022, representing the third-largest household expenditure category after transportation and shelter.
Currie said there are opportunities for renewable energy to help supplement oil and gas in agriculture, particularly in biofuels.
“But we’re not at a point from a production standpoint or an overall infrastructure standpoint where it’s a go-to right away,” he said.
“We need the infrastructure and we need probably a lot of incentives before we can even think about moving away from the oil and gas sector as a supplier of energy right now.”
Worldwide demand for oil and gas in the agriculture sector continues to grow, according to CEC Research.
Driven by Africa and Latin America, global oil use in agriculture increased to 118 million tonnes of oil equivalent (Mtoe) in 2022, up from 110 million tonnes in 1990.
Demand for natural gas also increased — from 7.5 Mtoe in 1990 to 11 Mtoe in 2022.
Sylvain Charlebois, senior director, in the Agri-Food Analytics Lab at Dalhousie University, said food security depends on three pillars – access, safety, and affordability.
“Countries are food secure on different levels. Canada’s situation I think is envious to be honest. I think we’re doing very well compared to other countries, especially when it comes to safety and access,” said Charlebois.
“If you have a food insecure population, civil unrest is more likely, tensions, and political instability in different regions become more of a possibility.”
As a country, access to affordable energy is key as well, he said.
“The food industry highly depends on energy sources and of course food is energy. More and more we’re seeing a convergence of the two worlds – food and energy… It forces the food sector to play a much larger role in the energy agenda of a country like Canada.”
Agriculture
Federal cabinet calls for Canadian bank used primarily by white farmers to be more diverse
From LifeSiteNews
A finance department review suggested women, youth, Indigenous, LGBTQ, Black and racialized entrepreneurs are underserved by Farm Credit Canada.
The Cabinet of Prime Minister Mark Carney said in a note that a Canadian Crown bank mostly used by farmers is too “white” and not diverse enough in its lending to “traditionally underrepresented groups” such as LGBT minorities.
Farm Credit Canada Regina, in Saskatchewan, is used by thousands of farmers, yet federal cabinet overseers claim its loan portfolio needs greater diversity.
The finance department note, which aims to make amendments to the Farm Credit Canada Act, claims that agriculture is “predominantly older white men.”
Proposed changes to the Act mean the government will mandate “regular legislative reviews to ensure alignment with the needs of the agriculture and agri-food sector.”
“Farm operators are predominantly older white men and farm families tend to have higher average incomes compared to all Canadians,” the note reads.
“Traditionally underrepresented groups such as women, youth, Indigenous, LGBTQ, and Black and racialized entrepreneurs may particularly benefit from regular legislative reviews to better enable Farm Credit Canada to align its activities with their specific needs.”
The text includes no legal amendment, and the finance department did not say why it was brought forward or who asked for the changes.
Canadian census data shows that there are only 590,710 farmers and their families, a number that keeps going down. The average farmer is a 55-year-old male and predominantly Christian, either Catholic or from the United Church.
Data shows that 6.9 percent of farmers are immigrants, with about 3.7 percent being “from racialized groups.”
National census data from 2021 indicates that about four percent of Canadians say they are LGBT; however, those who are farmers is not stated.
Historically, most farmers in Canada are multi-generational descendants of Christian/Catholic Europeans who came to Canada in the mid to late 1800s, mainly from the United Kingdom, Ireland, Ukraine, Russia, Italy, Poland, the Netherlands, Germany, and France.
Agriculture
Farmers Take The Hit While Biofuel Companies Cash In
From the Frontier Centre for Public Policy
Canada’s emissions policy rewards biofuels but punishes the people who grow our food
In the global rush to decarbonize, agriculture faces a contradictory narrative: livestock emissions are condemned as climate threats, while the same crops turned into biofuels are praised as green solutions argues senior fellow Dr. Joseph Fournier. This double standard ignores the natural carbon cycle and the fossil-fuel foundations of modern farming, penalizing food producers while rewarding biofuel makers through skewed carbon accounting and misguided policy incentives.
In the rush to decarbonize our world, agriculture finds itself caught in a bizarre contradiction.
Policymakers and environmental advocates decry methane and carbon dioxide emissions from livestock digestion, respiration and manure decay, labelling them urgent climate threats. Yet they celebrate the same corn and canola crops when diverted to ethanol and biodiesel as heroic offsets against fossil fuels.
Biofuels are good, but food is bad.
This double standard isn’t just inconsistent—it backfires. It ignores the full life cycle of the agricultural sector’s methane and carbon dioxide emissions and the historical reality that modern farming’s productivity owes its existence to hydrocarbons. It’s time to confront these hypocrisies head-on, or we risk chasing illusory credits while penalizing the very system that feeds us.
Let’s take Canada as an example.
It’s estimated that our agriculture sector emits 69 megatonnes (Mt) of carbon dioxide equivalent (CO2e) annually, or 10 per cent of national totals. Around 35 Mt comes from livestock digestion and respiration, including methane produced during digestion and carbon dioxide released through breathing. Manure composting adds another 12 Mt through methane and nitrous oxide.
Even crop residue decomposition is counted in emissions estimates.
Animal digestion and respiration, including burping and flatulence, and the composting of their waste are treated as industrial-scale pollutants.
These aren’t fossil emissions—they’re part of the natural carbon cycle, where last year’s stover or straw returns to the atmosphere after feeding soil life. Yet under United Nations Intergovernmental Panel on Climate Change (IPCC) guidelines adopted by Canada, they’re lumped into “agricultural sources,” making farmers look like climate offenders for doing their job.
Ironically, only 21 per cent—about 14 Mt—of the sector’s emissions come from actual fossil fuel use on the farm.
This inconsistency becomes even more apparent in the case of biofuels.
Feed the corn to cows, and its digestive gases count as a planetary liability. Turn it into ethanol, and suddenly it’s an offset.
Canada’s Clean Fuel Regulations (CFR) mandate a 15 per cent CO2e intensity drop by 2030 using biofuels. In this program, biofuel producers earn offset credits per litre, which become a major part of their revenue, alongside fuel sales.
Critics argue the CFR is essentially a second carbon tax, expected to add up to 17 cents per litre at the pump by 2030, with no consumer rebate this time.
But here’s the rub: crop residue emits carbon dioxide, methane and nitrous oxide whether the grain goes to fuel or food.
Diverting crops to biofuels doesn’t erase these emissions: it just shifts the accounting, rewarding biofuel producers with credits while farmers and ranchers take the emissions hit.
These aren’t theoretical concerns: they’re baked into policy.
If ethanol and biodiesel truly offset emissions, why penalize the same crops when used to feed livestock?
And why penalize farmers for crop residue decomposition while ignoring the emissions from rotting leaves, trees and grass in nature?
This contradiction stems from flawed assumptions and bad math.
Fossil fuels are often blamed, while the agricultural sector’s natural carbon loop is treated like a threat. Policy seems more interested in pinning blame than in understanding how food systems actually work.
This disconnect isn’t new—it’s embedded in the history of agriculture.
Since the Industrial Revolution, mechanization and hydrocarbons have driven abundance. The seed drill and reaper slashed labour needs. Tractors replaced horses, boosting output and reducing the workforce.
Yields exploded with synthetic fertilizers produced from methane and other hydrocarbons.
For every farm worker replaced, a barrel of oil stepped in.
A single modern tractor holds the energy equivalent of 50 to 100 barrels of oil, powering ploughing, planting and harvesting that once relied on sweat and oxen.
We’ve traded human labour for hydrocarbons, feeding billions in the process.
Biofuel offsets claim to reduce this dependence. But by subsidizing crop diversion, they deepen it; more corn for ethanol means more diesel for tractors.
It’s a policy trap: vilify farmers to fund green incentives, all while ignoring the fact that oil props up the table we eat from.
Policymakers must scrap the double standards, adopt full-cycle biogenic accounting, and invest in truly regenerative technologies or lift the emissions burden off farmers entirely.
Dr. Joseph Fournier is a senior fellow at the Frontier Centre for Public Policy. An accomplished scientist and former energy executive, he holds graduate training in chemical physics and has written more than 100 articles on energy, environment and climate science.
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