GUELPH – The Ontario Federation of Agriculture (OFA) has engaged Agri-Meals Financial Techniques to conduct a monetary evaluation and evaluation of the potential value the federal carbon tax burden may have on Ontario’s agriculture business.
The Understanding the Value Burden of the Federal Carbon Tax on Ontario Agriculture research is presently underway with a focused completion date of late April. OFA will obtain a last report following the finished evaluation.
“This evaluation will assist to boost consciousness of the numerous monetary impression the carbon tax may have on our farm companies,” mentioned OFA president Peggy Brekveld.
“The federal authorities wants to grasp and work to minimize the destructive impacts of the carbon tax. It’s negatively impacting the power for farmers in Ontario to compete in each home and worldwide markets.”
OFA continues to advocate for the federal authorities to broaden the agriculture exemption underneath the carbon tax by together with pure fuel and propane within the listing of qualifying farming fuels underneath the federal Greenhouse Gasoline Air pollution Pricing Act.
OFA has advocated to revise the definition of eligible farming equipment to incorporate “equipment used for the aim of offering heating or cooling to a constructing or comparable construction” to make sure that agricultural actions of grain drying and the heating of livestock barns could be exempted from the gasoline cost.
The necessity for a broader agricultural exemption is made extra pressing given the federal authorities has pledged to greater than triple the value of carbon by 2030 underneath the proposed Wholesome Surroundings and a Wholesome Financial system Plan, officers state.
“Mandated pricing of carbon is a major growth impacting Ontario agriculture, probably requiring a broad vary of changes,” mentioned Dr. Al Mussell, founder and analysis lead of Agri-Meals Financial Techniques.
“This research will estimate the specific prices of the tax on power use for which agriculture has no exemptions and also will estimate the burden of implicit prices embedded within the costs paid by farmers for numerous inputs. This research will even embrace an evaluation of the prices of mitigation in response to carbon taxes.”