moved that Bill C-206, An Act to amend the Greenhouse Gas Pollution Pricing Act (qualifying farming fuel), be read the second time and referred to a committee.
Mr. Speaker, our farmers are the backbone of our community and the engine of our economy. They are the hard-working men and women who take to the fields every day in the searing heat and, lately, the snow and freezing temperatures. They make sure we have food on our tables and, literally, the clothes on our backs. Our agriculture industry represents more than 7% of the GDP, and it still bears repeating how important, vital and essential our agriculture community is and its impact on our economy.
Farmers contribute over 2.3 million employment positions, including people who own farms and those who are involved in farming. That is one in eight jobs that is there because of farmers and the great work they do. We are an agriculture dynamo.
We are a leader in many categories. We are number one in the world in maple syrup. We produce 75% of the world's maple syrup, so let us hear it for maple syrup. We are in the top five in many agricultural productions, such as flax seed, canola, pulses, oats and durum wheat.
During the pandemic, and in fact, at any time in recent history, Canadians have not had to worry about food supply. Canadians have some of the least expensive, highest quality and safest food in the entire world, and that is because of our terrific farmers and agri-food workers.
During the pandemic, farmers kept going. As we all battled the pandemic, they kept making sure that their fields were planted and their animals were fed, so we could be fed.
As we start contemplating what a stronger Canada looks like going forward, one of the questions we will no doubt think about is self-sufficiency. One thing I can tell the House about the future is that, as long as we take care of farmers, we will always be able to feed ourselves here in Canada.
Unfortunately, farmers have had difficult times in the recent years. Whether it was due to difficult weather conditions, global trade wars or pricing disputes, there have been numerous challenges. This includes, unfortunately, the latest free trade agreement with the United States of America, CUSMA, where there was a watering down or a reduction of the market share for many of our farmers, which is disappointing.
Different governments have responded to the pandemic differently in how they have supported the agriculture community. Our neighbours to the south have literally given billions of dollars to farmers to help them bridge to a better day and get the farms through this. Unfortunately, here in Canada, our farmers have not had the same benefit. Instead, our farmers are getting recycled funding announcements and endless platitudes. Farmers deserve better.
Even in our domestic marketplace, farmers are facing challenges. Multi-million dollar grocery stores are setting record profits. However, they are doing it, at least in part, on the backs of Canadian farmers. We need to give Canadian farmers a break.
Farmers are not asking for a handout. In fact, they are not even asking for a hand-up. They just want a level playing field because they know, as I know, that our farmers are the best in the world. Where they have an opportunity, they will be successful and they will win.
In 2008, before the government even contemplated a federal carbon tax, in British Columbia the government put in place a carbon tax. In fact, many commentators have highlighted the fact that our current carbon tax is built on the chassis of the British Columbia carbon tax. However, there are notable differences, one of which is that before that British Columbia carbon tax was ever put in place, its government contemplated deeply the effect it would have on agriculture.
The result was more fulsome exemptions for Canadian farmers and fairer treatment for B.C. farmers. They have a full exemption on all farm fuels, including natural gas and propane, which is exactly what my private member's bill calls for. As well, in British Columbia, most commentators have said this exemption actually strengthens the carbon tax and helps farmers. Why would we not do this federally?
In a world where much of our competition is not subject to pollution taxing, the carbon tax is an unfair barrier for our farmers. The government has hummed and hawed, saying, “Maybe it costs this much, or maybe it costs that much.”
We do have numbers on the cost of the carbon tax, but they are not from the federal government, unfortunately. They come from from producers, such as the Saskatchewan producers, who calculated that an unbelievable 8% of net income will go to the carbon tax for Saskatchewan producers.
In 2022, because of set escalators for everyone out there, there will be an automatic increase without parliamentary consent to the tax. It is a nefarious regime, no doubt. By 2022, because of those escalators, that tax will actually go to 12%. That means, to put it in the language of my neighbours, that one in ten cows that farmers raise would go to pay the carbon tax, one in ten pigs would go to pay the carbon tax and one in ten tonnes of grain would go to pay the carbon tax.
Many farmers have sent my office their bills. These are exorbitant bills, particularly during last year's harvest when the grain was wet and they had to spend extra time and money drying it. I have numerous invoices that show that the carbon tax was $10,000 to $20,000.
To add insult to injury, the government decided to charge HST on the carbon tax. Come on. What we are seeing is that this tax is not only making our producers less competitive, it is also reducing their margins.
Although the government will not admit it, the carbon tax is not neutral for farmers. The claim that the carbon tax is neutral is in dispute, but what is not in dispute is that, for farmers, as a particular sector, it is not revenue neutral. Farmers' prices are not set by themselves, but rather by governments and international markets. They cannot just push that cost along. It is coming directly out of the pockets of our farmers, and that is money they could be using to reinvest in their farms, invest in clean technologies and help support their families.
I come from a small town called Orono, Ontario. I think it is one of the prettiest towns in Canada. In this town, our economy is based on farming. Farmers go out and buy food at the local restaurants. They go to the feed store and buy feed for their stock. They go to the tractor dealership and buy tractors. There are countless jobs that are created by the farmers, and when we take this money out of rural Canada, we take this money out of Canadians' hands. Rural Canada does not need more taxes. What we need is more support.
The Greenhouse Gas Pollution Pricing Act currently includes a partial exemption on fossil fuels for farmers. It exempts diesel and gasoline. For whatever reason, and I still have not been given a good explanation of why this is, it does not exempt natural gas and propane. However, natural gas and propane, by nearly every environmentalist's account, are actually cleaner fuels.
I do not understand why we would not exempt cleaner fuels but exempt dirtier fuels. It does not make sense. This impacts all of the agricultural sector, but it has specific impacts on grain farmers, who have to dry their crops with natural gas and propane. There is nothing that our farmers would rather than to not have to do that, or to find an alternative way of doing it using renewable energy, but the reality is that that does not exist right now.
Now, if we could pause, give the farmers a break from the carbon tax and let them reinvest that money into innovation and clean technology, maybe that would occur. Maybe the free market could come up with some great ideas that could clean our environment, but as of now, the carbon tax is a continuing burden on farmers. It is slowing innovation and making our environment dirtier.
As the member of Parliament for Northumberland—Peterborough South, I have the great pleasure of representing some of the best farmers of all of Canada. I have had numerous conversations with our farmers, and whether we are at the back of a tailgate, out in the fields or in the boardroom, they tell me over and over that they spend more time in the environment than anyone. They tell me that of course they want a clean environment, of course they recognize that climate change is real and they want to fight climate change, but they do not want to do it by being taxed.
What we want to do is to come up with innovation: clean tech to have us go forward. Examples of that are already happening. Farmers are among the leading environmentalists in Canada. They have advanced technologies such as no-till farming and precision farming.
One thing that I have gotten to know about from talking with some of our farmers is precision farming. It seems like it is out of the Jetsons, for people my age. It actually uses satellites. The satellites beam down GPS coordinates so that every inch of productive farm area is used and so that no extra drop of gasoline, diesel, natural gas or propane is used. This reduces emissions. The farmers are working hard to be environmental stewards for us.
The reality is that the grain growers have done analysis based on Statistics Canada's numbers. They emit about 66 megatonnes of carbon dioxide, which is not good. However, on the other side of equation are the crops they plant: their carbon sinks. These actually absorb over 100 megatonnes of carbon dioxide. Farmers are already carbon-neutral, 20 years ahead of the government's schedule. However, farmers, unlike nearly every other industry, are not given credit for this. They are not given an offset for the great work they do for the environment. We are just asking that we allow farmers the same playing field as other industries.
Why would we not get support for this private member's bill? In B.C. the NDP have done the same. The province strengthened its carbon tax. From an environmental perspective, I give it a check. It will help farmers be more competitive. There is a check. It will help our economy be stronger. There is a check. I do not see any xes.
I know that this cannot be true and I am hoping it is not true, but the only reason to oppose this bill would be pure politics. I know that the members on the other side want to support this. Whether they are from the Bloc Québécois, the NDP or the Liberal Party, members want to go back to farmers to tell them they are proud of having voted for a bill today that will make their lives a little bit easier and make things a little less difficult for them. We have to get beyond this.
I was in the House about two weeks ago, proudly speaking for small business owners and asking for a simple pause of audits during the pandemic. We were opposed. Only one party voted against us. I think we have had great amendments for a number of bills that were being legislated, but every time they are opposed, opposed, opposed.
I am calling upon my great friends across the aisle to do what is right for their constituents. Put down your sabres, extend your hands and work with our government-in-waiting to develop constructive solutions for Canadians. We want to work with our colleagues. We want to make life better for Canadians. Please join us.