A private member's bill that would create specific carve-outs for farmers in Canada's carbon pricing scheme has passed in the House of Commons.
The bill would exempt farmers from paying for emissions from natural gas and propane they use for certain activities performed on their farms, such as drying grain, preparing feed, irrigating and heating barns.
The Agriculture Carbon Alliance, which was created by industry groups in 2021 in response to the federal Liberals' climate policies and advocates for sustainable farming, celebrated the bill's progress on Thursday. "Exempting these high-emission activities from carbon pricing for farmers will only further encourage other sectors to demand similar treatment," he said in a statement.
But farm groups have long contended that further exemptions are needed, and have at times disputed the federal government's characterization of how much the carbon price is costing producers, especially when it comes to drying grain. Grain must be dried before it can be stored and sold, particularly during wet harvests.
The federal government says it is now spending $37.1 million on 99 grain drying projects as part of its $495.7 million Agricultural Clean Technology program.
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