Significant majority of Canadians want carbon tax scrapped on farms

From the Canadian Taxpayers Association

Canada is a big country filled with lots of opinions. It’s tough to talk about which hockey team you should cheer for without voices being raised, let alone getting into politics.

When a vast majority of Canadians think the same way on something, it’s a good idea for the government to stop and listen.

A new poll conducted by Leger shows that seven-in-10 Canadians want farmers to get an exemption on the carbon tax for natural gas and propane.

That means members of Parliament need to listen to Canadians and pass Bill C-234, a proposed piece of legislation that gives farmers this exact exemption.

Currently, the federal government already exempts the carbon tax from gasoline and diesel used on farms. And this bill simply extends that same carbon tax exemption to natural gas and propane.

The new national poll shows there is support for farmers across the country – Canadians want the carbon tax scrapped on farms.

Albertans leads the way with 76 per cent of them supporting giving a break to farmers, but other parts of the country aren’t far behind. British Columbians are 72 per cent in favour of the relief and even 68 per cent of people in Quebec and the Atlantic provinces support the exemption.

Canadians understand that just like the carbon tax costs them big money to fuel up their cars and heat their homes, it also costs farmers, but on a much larger scale. Without any relief, the carbon tax on natural gas and propane will cost farmers almost $1 billion by 2030, according to the Parliamentary Budget Officer.

That’s a lot of money that farmers are paying on their bills every month and it also hurts their competitiveness because farmers in the United States aren’t paying a carbon tax. Plus, if farmers aren’t paying millions of dollars every year in the carbon tax, it’s likely to help the rest of out with prices at the grocery store.

And passing bill C-234 is something farm groups have already been calling for. The Agriculture Carbon Alliance is a coalition of 15 farm associations is pushing the federal government to pass the bill and provide relief to farmers.

That’s because individual farmers are paying up to thousands of dollars every month in the carbon tax. The average livestock farmer can expect a $726 carbon tax bill every month, while crop farmers can look forward to a $2,024 bill according to the ACA.

Greenhouses are the worst off, with an average $17,173 carbon tax bill. In some cases, up to 40 per cent of a farmers energy cost is just carbon tax.

This new poll and the huge carbon tax bills for Canadian farmers should be a wake-up call for politicians in Ottawa to stop sitting on their hands and get farmers some relief, because this legislation has been through the wringer at this point.

Bill C-234 was originally introduced more than two years ago and it finally passed the House in March 2023, where it got unanimous support from the Conservatives, Bloc, NDP and Greens. Three Liberal MPs even voted for it.

But then it got to the Senate.

Unelected Senators amended the bill and got rid of much of the relief for farmers. They removed the exemptions for heating barns and decided that the relief should end after three years. The bill in its current form would still see farmers paying $910 million in the carbon tax by 2030, according to the PBO.

Now Bill C-234 is back in the House and MPs need to reject the amendments from the Senate and pass the bill in its original form.

It’s what Canadians want.

It’s time for Ottawa to start listening to Canadians and stop charging farmers carbon taxes that make all of our lives more expensive.

Related Topics:#CanadianTaxpayersFederation #CarbonTax #CarbonTaxScrappedOnFarms #GageHaubrich

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Agriculture

Liberal win puts Canada’s farmers and food supply at risk

Published on May 1, 2025

Todayville

This article supplied by Troy Media.

By Sylvain Charlebois

A fourth Liberal term means higher carbon taxes and trade risks. Could Canada’s farmers and food security be on the line?

The Liberal Party, now led by Mark Carney, has secured a fourth consecutive term, albeit once again with a minority mandate. This time, however, the Liberals have a stronger hand, as they can rely not only on the NDP but also the Bloc Québécois to maintain power.

This broader base of parliamentary support could provide much-needed political stability at a crucial time, particularly as Canada prepares for a new round of trade negotiations with the United States and Mexico.

For the agri-food sector, the implications are significant. From carbon taxes to trade rules, federal decisions play a decisive role in shaping the costs and risks Canadian farmers face.

First and foremost, carbon pricing will remain a central issue. Carney has made it clear that the industrial carbon tax will stay—a policy that continues to erode the competitiveness of Canada’s agri-food sector, where fuel, fertilizer and transportation costs are especially sensitive to carbon pricing. The tax, currently set at $95 per metric tonne, is scheduled to climb to $170 by 2030.

While consumers may not see this tax directly, businesses certainly do. More concerning is the Liberals’ intention to introduce a border carbon adjustment for imports from countries without equivalent carbon pricing regimes. While this could theoretically protect Canadian industry, it also risks making food even more expensive for Canadian consumers, particularly if the U.S., our largest trading partner, remains uninterested in adopting similar carbon measures. Acting alone risks undermining both our food security and our global competitiveness.

Another looming issue is supply management. Although all parties pledged during the campaign not to alter Canada’s system for dairy, poultry and eggs, this framework—built on quotas and high import tariffs—is increasingly outdated. It is almost certain to come under pressure during trade negotiations. The American dairy lobby, in particular, will continue to demand greater access to Canadian markets. The Liberals have a chance to chart a more forward-looking path. Modernizing supply management could lead to a more competitive, resilient industry while providing consumers with greater choice and better prices.

The previous Parliament’s passage of Bill C-282, which sought to shield supply managed sectors from all future trade negotiations, was a deeply flawed move.

Fortunately, the new parliamentary makeup should make it far less likely that such protectionist legislation will survive. A more pragmatic approach to trade policy appears possible.

On the domestic front, there are reasons for cautious optimism. The Liberals have promised to eliminate remaining federal barriers to interprovincial trade and to improve labour mobility, longstanding obstacles to the efficient movement of agri-food products across Canada. For example, differing provincial rules often prevent products like cheese, meat or wine from being sold freely across provinces, frustrating farmers and limiting consumer choice. Momentum was building before the election, and it must continue if we are serious about building a stronger domestic food economy.

Infrastructure investment is another bright spot. The Liberals pledged more than $5 billion through a Trade Diversification Corridor Fund to upgrade Canada’s severely undercapitalized export infrastructure. Strategic investment in trade gateways is overdue and critical for agri-food exporters looking to reduce reliance on the United States and expand into global markets.

Finally, the Liberal platform was alone in explicitly committing to support food processing in Canada, a crucial pillar of domestic food security. An increased focus on manufacturing will not only create jobs but also reduce reliance on imported food products, making Canada more resilient in the face of global disruptions.

Farmers have long felt sidelined by urban-centric Liberal governments. The past four years were marked by regulatory and trade clashes that deepened that divide. The hope now is that with greater political stability and a clearer focus on competitiveness, the next four years will bring a more constructive relationship between Ottawa and Canada’s agri-food sector.

If the Liberals are serious about food security and economic growth, now is the time to reset the relationship with Canada’s farmers, not ignore them yet again.

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.

Agriculture

It’s time to end supply management

Published on March 23, 2025

Todayville

From the Frontier Centre for Public Policy

By Ian Madsen

Ending Canada’s dairy supply management system would lower costs, boost exports, and create greater economic opportunities.

The Trump administration’s trade warfare is not all bad. Aside from spurring overdue interprovincial trade barrier elimination and the removal of obstacles to energy corridors, it has also spotlighted Canada’s dairy supply management system.

The existing marketing board structure is a major hindrance to Canada’s efforts to increase non-U.S. trade and improve its dismal productivity growth rate—crucial to reviving stagnant living standards. Ending it would lower consumer costs, make dairy farming more dynamic, innovative and export-oriented, and create opportunities for overseas trade deals.

Politicians sold supply management to Canadians to ensure affordable milk and dairy products for consumers without costing taxpayers anything—while avoiding unsightly dumping surplus milk or sudden price spikes. While the government has not paid dairy farmers directly, consumers have paid more at the supermarket than their U.S. neighbours for decades.

An October 2023 C.D. Howe Institute analysis showed that, over five years, the Canadian price for four litres of partly skimmed milk generally exceeded the U.S. price (converted to Canadian dollars) by more than a dollar, sometimes significantly more, and rarely less.

A 2014 study conducted by the University of Manitoba, published in 2015, found that lower-income households bore an extra burden of 2.3 per cent of their income above the estimated cost for free-market-determined dairy and poultry products (i.e., vs. non-supply management), amounting to $339 in 2014 dollars ($435 in current dollars). Higher-income households paid an additional 0.5 per cent of their income, or $554 annually in 2014 dollars ($712 today).

One of the pillars of the current system is production control, enforced by production quotas for every dairy farm. These quotas only gradually rise annually, despite abundant production capacity. As a result, millions of litres of milk are dumped in some years, according to a 2022 article by the Montreal Economic Institute.

Beyond production control, minimum price enforcement further entrenches inefficiency. Prices are set based on estimated production costs rather than market forces, keeping consumer costs high and limiting competition.

Import restrictions are the final pillar. They ensure foreign producers do not undercut domestic ones. Jaime Castaneda, executive vice-president of the U.S. National Milk Producers Federation, complained that the official 2.86 per cent non-tariffed Canadian import limit was not reached due to non-tariff barriers. Canadian tariffs of over 250 per cent apply to imports exceeding quotas from the European Union, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Canada-United States-Mexico Agreement (CUSMA, or USMCA).

Dairy import protection obstructs efforts to reach more trade deals. Defending this system forces Canada to extend protection to foreign partners’ favoured industries. Affected sectors include several where Canada is competitive, such as machinery and devices, chemicals and plastics, and pharmaceuticals and medical products. This impedes efforts to increase non-U.S. exports of goods and services. Diverse and growing overseas exports are essential to reducing vulnerability to hostile U.S. trade policy.

It may require paying dairy farmers several billion dollars to transition from supply management—though this cartel-determined “market” value is dubious, as the current inflation-adjusted book value is much lower—but the cost to consumers and the economy is greater. New Zealand successfully evolved from a similar import-protected dairy industry into a vast global exporter. Canada must transform to excel. The current system limits Canada’s freedom to find greener pastures.

Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy.