The Agricultural Producers Association of Saskatchewan (APAS), Saskatchewan’s largest farm group, has indicated that the recently announced increases to the federal carbon tax will take hundreds of millions of dollars out of farmers’ pockets by 2030. The impact could be serious enough to put some of them out of business. The new carbon levy, announced in December, would see the cost gradually rise to $170 per tonne on fossil fuels, up from the current $40 per tonne, as part of the federal government’s goal of gradually reducing the country’s greenhouse gas emissions. While farmers get some exemptions on fuels they use, a lot is not covered and weather changes from year to year could have a significant impact on the amount of propane and natural gas required to ensure a good harvest with little waste. APAS indicated that the farmers cannot pass the higher costs onto their customers because most of their crops are sold in international markets where their competitors will not face a similar tax.
