Critics of the federal carbon tax say it continues to increase costs and place a a significant financial burden on Canadian agriculture.
The Liberal government introduced the carbon tax in 2019 at $20 per tonne of greenhouse gas emissions, but the tax has steadily climbed, reaching $80 per tonne in 2024. It is set to rise to $170 per tonne by 2030.
Internal government estimates show that the tax’s economic impact is more severe than previously disclosed. While the government initially claimed the carbon tax would have “almost zero” effect on the economy, the data suggests otherwise.
Former Lambton-Kent-Middlesex MP Bev Shipley spoke to CKNXNewsToday.ca about the issue, highlighting the disproportionate burden placed on the agriculture sector. Shipley emphasized that agriculture is foundational to Canada, feeding not just Canadians but people around the world.
"Agriculture is not just an industry, it's the second-largest in the country and it's being attacked by policies like the carbon tax," he said. "Whether it's seed, fertilizer, or equipment, every step of the process is taxed. And that tax gets passed on to consumers. The rebates are not enough to counter the rising costs that farmers are facing."
Shipley further criticized the carbon tax on fertilizers, a crucial input for Canadian farmers.
"Fertilizer is essential for crop production. If the carbon tax applies to fertilizers, we are looking at cataclysmic levels of impact for Canadian agriculture," Shipley warned.
He advocated for a more efficient and supportive approach, calling on the government to remove the carbon tax from essential agricultural products.
John Nater, MP for Perth-Wellington, echoed these concerns, calling for a reconsideration of the carbon tax's impact on agriculture. Nater stressed that the federal government needs to focus on reducing its spending rather than imposing policies that hurt essential industries.
"The federal government needs to understand the severity of this issue and support farmers, who are key to our food security," Nater said.
He also highlighted the need for a dedicated minister of agriculture who can stand up for the farming community at the federal level.
Nater criticized the lack of focus on the broader economic implications of the carbon tax, especially for small businesses, which are already struggling with the financial strain of rising operational costs.
"Small businesses are already facing challenges, and the carbon tax only adds to that burden," he said.
While the federal government exempted taxes on diesel and gasoline farmers use to cultivate their land, the exemption does not apply to he natural gas and propane used to dry crops.
Shipley and Nater both agree that the Liberal government must reassess its approach to the carbon tax, particularly its impact on industries that are essential to the Canadian economy, such as agriculture, which is expected to face increasing financial strain.
The federal government has been contacted for comment, but no response was received by the time of publication.