Senator Simons: This is the editor and fact checker in me. Senator Quinn asked you a question about whether this would lower costs for off-site grain drying.

To clarify for everyone, is it not true that this bill does not apply to off-site commercial grain dryers but only, in fact, applies to farmers using grain dryers on their own farms?

Senator Wells: Thank you, Senator Simons. You are right. This only applies to on-site grain drying. But having been in business and having done quite a bit of production costing in my life, I would make the assumption that it would be more expensive per unit for the off-site grain dryer, regardless of the tax, only because they would have less volume. They would still have their drying costs but less volume. Perhaps I should not assume, but normally the higher the volume you have, to a certain point, the less costly your per-unit costs are.

Senator Simons: To clarify again, for the record, if this bill is to pass, it will have no impact whatsoever on industrial dryers who will still have to pay the full carbon tax?

Senator Wells: To be clearer, off-site dryers will not have the benefit of an exemption from the carbon tax. I can’t say they won’t have a benefit, or it will be worse, because they will have a different volume.

In that respect, it may be different. But that is not what we’re talking about. I have been doing production costing since my early twenties. Their production costs will be different because their production balanced against their fixed costs and their variable costs will be different.

Hon. Paula Simons: Senator Wells, will you take a question?

Senator Wells: I will, Senator Simons.