SoVote

Decentralized Democracy

House Hansard - 69

44th Parl. 1st Sess.
May 11, 2022 02:00PM
Context: House Hansard - 69 - May/11/22
Mr. Dave Epp (Chatham-Kent—Leamington, CPC)
Madam Speaker, it is always a privilege to rise in the chamber and speak on behalf of the residents of Chatham-Kent—Leamington and, indeed, on behalf of agriculture across Canada. I am also pleased to speak to my colleague from Huron—Bruce's private member's bill, Bill C-234, which affects so many constituents, including our own family farm. The bill seeks to amend the Greenhouse Gas Pollution Pricing Act by adding natural gas and propane to the list of qualifying farm fuels, and that is for the purposes of both grain drying and heating and cooling farm buildings. I did have the opportunity to speak to this bill's predecessor, Bill C-206, in the previous Parliament where it was passed, only to die in the other place when the Prime Minister called the unnecessary election. Our farmers are the first environmentalists and our farmers are great competitors. They can hold their own against anyone, but not with one arm tied behind their back. They cannot continue to be first-rate environmentalists when they are hamstrung by policies that their competitors do not face. Before getting into the specifics of this bill, I wish to remark on four different framing points that will outline where I am going. One, as I just stated, as individuals, farmers are environmentalists by nature and by necessity. The drive to leave the land in a better condition than when they found it is innate to every farmer that I know. Farmers are environmentalists by necessity. It is the condition of their land, the condition of their flocks and of their herd that supplies the farm family with a return on their labour, on their investments and on their inputs, so it is in their own self-interest to leave the vehicle of their own prosperity in better condition for the next generation. Two, collectively, agriculture has a strong record of reducing its environmental footprint, be it through the adoption of low till or no till; be it through the refinement of working through nutrients, such as through the lens of the 4Rs, putting the right nutrient at the right place at the right time with the right amount; be it through more intensive use of cover cropping or rotational grazing. Farmers have largely done all of this without regulation and without additional taxation or without an additional government-imposed price signal. I will come back to that point in a moment. Three, agriculture has a strong record of innovation, of adopting new technologies, such as the use of GPS technology on the farm, the use of variable rate technology in seeding and in crop protection products, robotics in our dairy sector, and climate controls and automation in our greenhouse sector. Believe me, as soon as a viable commercial alternative to fossil fuels is available in rural Canada, farmers will adopt it and quickly, without the stick or a price signal embedded in a tax. That leads me to my final framing point. Four, by and large, farmers are price takers. They cannot effectively pass along cost-input increases to their buyers. Let these four points set the stage for my remarks on Bill C-234. When we initially debated its predecessor, Bill C-206, the harvest from hell in 2019 had just occurred in western Canada. That really demonstrated the need for this carbon tax exemption. It was a particularly wet fall where, with frost and rainfall, et cetera, interrupting the harvest, the use of natural gas and propane was required to put the grain into a storable condition. Farming in Ontario and in eastern Canada requires the use of grain dryers each and every year, particularly for grain corn, but also for soybeans, wheat, canola, oats, et cetera. When we studied Bill C-206 in the previous Parliament at committee, we did look at alternatives to fossil fuels. In many parts of our economy, electrification is a potential alternative, but given the obvious nature of agriculture being situated in rural Canada and the lack of our grid capacity, this is simply a non-starter. We also looked at a second option, and that was the use of crop residues as a fuel source. That means gathering them after harvest and then burning them in heaters. While there are some prototypes being trialed, they are simply not available at scale. Even more problematic with this approach, crop residues are incorporated into the soil or are left on the surface, and they become organic matter for our soils. They sequester carbon and they increase soil organic matter levels, which help both with crop production and our climate goals. The voluntary adoption of reduced or eliminated tillage provided improvements in soil moisture retention, a reduction of soil erosion and, of course, an increase in carbon sequestration, all without the imposition of a tax. This is something that was not acknowledged in the Greenhouse Gas Pollution Pricing Act. It does not make sense to apply a tax to reverse the environmental improvements that the farmers put in place voluntarily. However, the question remains, does it make any sense at all to apply such a tax on fossil fuels to increase the agricultural community's focus on reducing the use of fossil fuels? The answer to that is no, for several reasons. There simply are not commercially viable, scalable alternatives to using natural gas and propane available today, but because there are not viable alternatives, the demand for fuel tends to remain unaffected by price. That makes these additional fuel charges simply an additional tax and an inefficient policy to lower carbon emissions. This very fact was confirmed by the Parliamentary Budget Officer. The recent budget, which has been alluded to in other speeches here this evening, did put some more funds into the agricultural clean technology fund to upgrade present drying systems to a higher efficiency, but these funds only have the potential to update 500 of the 50,000 grain dryers across Canada. That is 1% of them. Also, as opposed to granting an exemption from paying the carbon tax, they have proposed in Bill C-8 a rebate program to maintain, in their words, a “price signal” to the farm community to change their ways even though there are no viable alternatives. I explored with several of my constituents the impact of these two approaches. My riding is a large rectangle and in the northeastern corner, Ron and Francine Verhelle farm with their family. This past year, they needed 89,670 litres of propane to dry their almost 7,000 tonnes of corn. They paid over $5,550 in carbon tax. If the 2022 conditions on their farm are the same, they are anticipating that cost to go up to almost $7,000 this year. Under the Liberal plan, the eligible farm costs on their farm would have to be over $3.2 million using the planned $1.73 per thousand in eligible farm expenses in order for that rebate to recoup their carbon tax cost. Farm input costs are definitely skyrocketing, but fortunately they will not be that high or no farmer will be in business this coming year. Paul Tiessen and his family farm just down the road from my home farm. They are a third generation grain farm and their total natural gas bill for 2021 to dry 107,000 bushels, or just over 2,900 tonnes, of corn this past year was $10,010, of which almost $2,500 was a carbon tax. Under the Liberal proposal that would have been in place for 2021 rebating back $1.47 per thousand in expenses, they would only get a fraction of their carbon tax cost returns from this past crop. My final point is simply to call for basic fairness in the marketplace. Our Canadian grain competes directly with American grain. It is priced off of the Chicago Board of Trade. No customer of grain will pay more for Canadian grain because it incurs a carbon tax, not if they can source it from the Americans. The Greenhouse Gas Pollution Pricing Act did exempt gasoline and diesel fuel on the farm for this very reason and Bill C-234 is looking to correct the oversight regarding natural gas and propane for grain drying and barn heating and cooling. Surely if the government cannot control its spending ways, it does not have to use farmers' bank accounts as a cashflow mechanism to finance its own spending. Making farmers pay this carbon tax in the fall and then having them file their taxes the following spring to apply for a rebate, all that does is return a portion of their costs plus now incurring all the administrative costs on the farm and the administrative burden on government to manage this program. In fact, this past budget estimated that cost for the government alone to be $30 million. What does that do? All that does is serve to increase the size of government and not add any additional value to our climate goals. In conclusion, I would again urge all members of the House to support passing a bill that removes the potential of being at cross purposes for lower greenhouse gas emissions. Please support the removal of a tax where the users have absolutely no viable options and please support basic inherent market fairness.
1567 words
All Topics
  • Hear!
  • Rabble!
  • star_border
Context: House Hansard - 69 - May/11/22
Mr. Dave Epp
  • May/11/22 6:25:44 p.m.
  • Watch
Madam Speaker, I respectfully ask for a recorded division.
9 words
  • Hear!
  • Rabble!
  • star_border