Bill C-234

An Act to amend the Greenhouse Gas Pollution Pricing Act

This enactment amends the Greenhouse Gas Pollution Pricing Act to expand the definition of eligible farming machinery and extend the exemption for qualifying farming fuel to marketable natural gas and propane.

Economic and Fiscal Update Implementation Act, 2021

[John Nater, Conservative, Perth—Wellington, ON]

Madam Speaker, it is always a pleasure to rise in the House and contribute to a debate. Today, we are debating at report stage Bill C-8 , an act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021, and other measures. I always enjoy the long titles to bills because they give a sense of what the bill actually is. An economic statement or a fiscal update is kind of like a mini-budget. It is a chance for a government to provide some economic and budgetary measures without having an entire budget.

However, what we have seen now is that we have had the fall economic statement, we have had Bill C-8, we have had the actual budget, and in the coming days we will have the budget implementation act for this year's budget. Those are four different opportunities for the government to take meaningful action to help the people of Canada, to help people who are struggling with the cost of living, to help people struggling with inflation and to help those small business owners who over the last two years have faced lockdowns and restrictions, including restaurants, hospitality and tourism sector. The government has had all these opportunities and yet time and time again we have seen the government fail to meaningfully act to help the people in Perth—Wellington and the people across Canada.

What is equally concerning is that today's debate is being done under the threat of a guillotine motion. That guillotine motion is a time allocation motion, a motion that cuts off debate. We have seen this before. We have seen the Liberals rail for years against time allocation and against closure and then flip around and use that themselves. What is especially interesting this time is that it is being done in the shadow of Motion No. 11. Here we have the government using time allocation on this bill and yet at the same time it has given notice for closure on Motion No. 11.

Some may not know what Motion No. 11 actually would do. Motion No. 11 would allow the government not to show up for work. Motion No. 11 would allow the House of Commons to function without quorum. Just to show how out of the ordinary this is, the concept of quorum in the House of Commons, a minimum number of people being present in the chamber, is constitutionally protected. It is not a large number. We can count it on two sets of hands. It is 20 people. Some people may want to take off their socks to count that high, but it is not that high a number. That is including the Speaker. It is the Speaker plus 19 members.

In fact, if we consult the authorities of this place, including Beauchesne's Rules and Forms of the House of Commons of Canada, 6th edition, edited by our good friend Mr. John Holtby of Brockville, Ontario, we see that it says this at paragraph 280: “The Constitution Act, s. 48 specifies that the quorum of the House is twenty, including the Speaker.” Paragraph 281 states, “Any Member may direct the Speaker's attention to the fact that there is not a quorum present.”

This is something that is provided for in the authorities of this place, consistent with the Constitution of our country, Constitution Act, 1867. The government, with Motion No. 11, would withdraw the concept of quorum, allowing this place to function without the bare number of 20 people. This is simply unacceptable and in the coming days I hope to contribute more specifically to this debate. However, for now I will leave it at that and I will move on to some of the issues included in Bill C-8.

As I have mentioned in this House many times, the great riding of Perth—Wellington includes some of the most fertile farmland in the world. Quite literally, Perth—Wellington is the heartland of Canadian agriculture. There are more dairy farmers in Perth—Wellington than in any other electoral district in the country. Wellington County is number one for chicken production in Canada and in the top five in Ontario for beef and pork. What I hear all the time from farmers and farm families is the struggle they are facing, particularly when it comes to the rising cost of things. One thing in particular that we hear about time and time again is the carbon tax. The carbon tax is adding extra costs to farmers and farm families with no way to recoup those costs.

The Liberals will point to Bill C-8 saying there is going to be a rebate in it and that farmers can apply for those rebates. That is not what farmers are asking for. They are asking for the bill that was brought forward in the previous Parliament by my colleague, the member for Northumberland—Peterborough South, Bill C-206, which passed through the House of Commons with support from our friends in the Bloc, the New Democrats and the Greens. It made it through this place and was in the Senate. However, as we all know, it was killed when the government dissolved Parliament to call its unnecessary election. With the budget, the fiscal update, Bill C-8 and the budget implementation act, the government had the opportunity to do the right thing and adopt the measures that were contained in Bill C-206.

Our friend, our colleague, the member for Huron—Bruce, has introduced Bill C-234, which is in direct response to what farmers and farm families are asking for. They are asking for the on-farm use for drying of grain to be excluded from the carbon tax, when there are no alternatives. There are no ways for farmers to use other alternatives to dry their grains. They must use carbon-based fuel. Therefore, it makes no sense that the government is charging them, time and again, with no results. Once again, this is a missed opportunity for the government to take meaningful action when it comes to the cost of on-farm fuel.

That is not the only problem farmers are facing today. The other is the rising cost of fertilizer. I want to be clear. Every farmer, every farm business and every Canadian I have spoken to agree that tough sanctions against Vladimir Putin and his thugs are needed and warranted. However, those farmers and agri-businesses that purchased and have purchase orders for fertilizer pre-March 2, before the sanctions were introduced, should not be subject to a 35% tariff. That 35% tariff does nothing to Vladimir Putin and his thugs, because the purchase has already been made; it is simply money coming out of the pockets of farmers and farm families and going into the government coffers.

The government has not yet even addressed this. It has not provided a response. Yesterday in question period, in response to a question from the Bloc Québécois, the Minister of Agriculture and Agri-Food said:

Mr. Speaker, I want to assure my colleague that we are taking the situation very seriously. We are looking at various options.

We want to make sure our farmers have the inputs they need for a good season so Canada can contribute to food security at home and around the world.

The planting season is upon us. Farmers and farm families are making decisions right now. They are paying for fertilizer right now with a 35% tariff that they did not anticipate and could not have anticipated in October, November or December when they purchased it. They are now being levied a 35% tariff on top of it. It is completely unacceptable, because it hurts only farmers, not Vladimir Putin and his regime. I again encourage the Minister of Agriculture and Agri-Food, if she has any sway at the cabinet table, if she has any influence with her own government, to stand up for farmers and for those who are working hard to literally feed our country, to feed the world, and do the right thing.

We are going to be seeing challenges in the years to come based on the out-of-commission farmland that is currently in Ukraine. We are going to be called upon as Canadians, as Canadian farmers, to address that shortage, and if the government is hamstringing and preventing Canadian farmers from feeding the world, then it is a crying shame and simply unacceptable.

I have been given the one-minute warning, so I want to address very quickly the point of housing.

We have seen house prices in Canada skyrocket over the last two years. I have seen it in the small rural communities within Perth—Wellington. We are seeing prices skyrocket, which makes housing unaffordable for young families, people getting out of university and newly married families with young kids trying to find a spot. It is unacceptable. The cost is being driven up for young people and it is driving them out of the market. The government needs to address it. We need to increase the supply of housing in Canada, and it needs to be done now, not five or 10 years from now.

I look forward to questions from my colleagues.

Small Business

[Martin Shields, Conservative, Bow River, AB]

Madam Speaker, it is great to be here tonight. The initial question I asked had to do with an agricultural issue, and I would like to continue along that theme.

The president of the Western Canadian Wheat Growers Association recently stated, “Absolutely we are unfairly targeted because we are a primary producer have no way of dealing with the carbon tax.... It is a pure cost to us, and there isn’t really a way for us to become more efficient.”

That is the problem our agriculture producers face. It is not only the carbon tax, but also the carbon tax that is applied to truckers, to rail and to the moorage of the ships parked in the harbour waiting to be loaded. All of those taxes are downloaded back to the primary producer, the farmer, the agricultural producer, who has no way to recover against those costs.

Recently, there was a 25% increase in the carbon tax. That is a huge add-on to our agricultural producers. To get specific, in my riding, where we have huge irrigation districts, this is a cost that affects that irrigation. It is millions of dollars if we look at all of the irrigation districts, but particularly for the four largest ones in my riding, it is a significant cost. This is money that leaves the communities and the producers and is not returned in a rebate. That is the percentage that is not returned, the millions of dollars paid to provide that irrigation.

As well, 4% of the arable land in Alberta produces 29% of the agricultural production of the GDP in Alberta, which is huge, but their increased costs are also huge.

We have the most significantly efficient high-producing agricultural producers in Canada, but what they do not get credit for is the 384 billion tonnes of carbon they store in the soil. They use practices that keep improving the storage of carbon, but they get no credit for it.

A private member's bill from a member in our caucus, Bill C-234, is moving forward on exempting farm fuels from the carbon tax. That would be the first step.

Then we get to the issue of fertilizer. Agricultural producers work very hard on the four Rs: right source, right rain, right time and right place. They are getting incredibly efficient at it. The fertilizer industry contributes $23 billion annually to Canada's economy. That is 76,000 jobs. Now the government is talking about reducing the use of fertilizer by 30%, without a benchmark. Farmers do not want to buy fertilizer that is not needed. It is very expensive and harder to get.

Agriculture employs 2.1 million people and generates $139 billion of Canada's GDP. By continuing to go after those things that increase production, which we are going to need in this world, Canadian farmers, who are the most efficient, the best equipped and the best at it, will not be supported by this, which is a challenge for the agricultural producers in our country.

National Strategy Respecting Environmental Racism and Environmental Justice Act

[Kyle Seeback, Conservative, Dufferin—Caledon, ON]

Madam Speaker, I am happy to join in the debate for this bill. I want to thank the member for Saanich—Gulf Islands for putting forward this legislation. I know she is a passionate defender of the environment and always has good intentions when she puts forward a piece of legislation.

I share her concern with bills dying on the Order Paper as a result of an unnecessary and costly election that was brought forward by the Liberal government. Bill C-206, to exempt farm fields from the carbon tax, also died on the Order Paper. I hope members of the House, including the member for Saanich—Gulf Islands, will try and help with speedy passage of new Bill C-234.

With respect to this exact piece of legislation, I certainly have some concerns. First of all, I start off with my concern in general with national strategies. The current government has had difficulty dealing with existing pieces of legislation that it is trying to bring forward with respect to the environment. We had five reports today from the environment commissioner, and the government got zero for five on all five reports. As a batting average when playing baseball, that is a terrible day. When it is the government, it is a tragedy for our country.

When we talk about developing a new national strategy for something, we have to look at the capacity of the government to actually carry out this ambitious project. My concern is that there is not this capacity. We can look at, for example, the motion that was unanimously passed in the House with respect to the suicide prevention line, the 988. We heard about that just recently. It has been 500 days since this was passed unanimously in the House. Absolutely nothing has been done, and Canadians are still waiting for some progress.

The approach of trying to deal with this through a national strategy is not the right one. There could perhaps be ways of looking at making amendments to existing pieces of legislation. For example, the member talked about enshrining the right to a healthy environment. That is actually in the update to CEPA that is in the Senate right now. Something like that has already been dealt with in a piece of legislation.

We already have a complicated regulatory environment when we are developing projects in this country. I am unsure about this national strategy, what it will do and how it will add to the complication of these kinds of processes. When I look at the legislation and what it talks about, possible amendments to federal laws, policies and programs, that is a very broad power that is being granted here as part of this legislation. We do not know exactly where that is going to lead. Whether it will lead to more uncertainty in other things, I am not 100% sure.

On compensation for individuals or communities, there are no parameters around this statement as to what that is going to look like, how it is going to be developed and what it is going to mean. I generally do not like open-ended or blank cheques that are given to any government, and in particular the current government. Right now, we certainly have concerns with this piece of legislation, because we do not know 100% what it is going to mean.

We do, of course, as Conservatives, want to support a healthy environment. We absolutely want to combat racism. However, I do not believe this piece of legislation is going to accomplish any of those goals, for the reasons that I have been setting out. I just do not think the government is actually going to get it done, and the proper way to deal with things like this is to look at existing legislation like the Canadian Environmental Protection Act. If we want, for example, to collect information and statistics for incomes, we could look at modifying an existing piece of legislation to deal with that. If we are trying to look at information and statistics relating to the location of environmental hazards, I also think these are things that could be looked at within existing legislation if we want to add some additional protections for Canadians.

I do not think that the way to do this is to wait two years for the government to set up a national strategy. It would then be debated endlessly, and whether anything would actually be implemented, I do not know.

I appreciate the member's earnest hard work on this piece of legislation, but as this piece of legislation stands, we will not be in a position to support it.

Financial Statement of Minister of Finance

[John Nater, Conservative, Perth—Wellington, ON]

Mr. Speaker, it is, as always, a privilege to rise in the House to share the concerns of the people of Perth—Wellington and bring those concerns to this place.

This year's budget was the third opportunity the Liberals had to address the real concerns of Canadians. Since the election, they could have addressed the concerns of Canadians in the fall economic statement, in the implementation act for the fall economic statement or in this budget. Sadly, the issues I am hearing about every day in phone calls, emails and conversations at community events were not addressed by the Liberals in this year's budget.

Canadians are feeling the impact of inflation. I hear from families who have lost hope on ever owning their own home, and I hear from others who are struggling to find rental housing that is not only affordable but also large enough for their families. I hear from seniors who have worked hard their entire lives and who are now struggling to pay the bills. They are on fixed incomes that are stagnating while the costs of groceries, utilities and housing keep going up. Their costs keep rising, but their incomes remain that same. That is the cruelty of inflation.

No one saw any humour in the government’s April Fools' Day joke to once again raise the carbon tax, which is a tax that impacts the people in the lowest income spectrum the most. These are the people who can least afford to pay it.

The government had options that could help Canadians. It could have taken the advice of our Conservative motion to temporarily remove the GST portion of the HST to give all Canadians a temporary 5% reduction on the cost of gas. Any Canadian who has filled up their tank recently knows the impact of $1.84 per litre and the impact it has on families commuting to work or taking their kids to soccer practice or baseball practice. The government did not take our advice and our modest, common sense proposal was voted down by the Liberal government and the other opposition parties.

I am very proud to represent a strong rural and agriculture-based community. Here in Canada, one in eight jobs is linked to the agriculture and agri-food sector. This generates 140 billion dollars' worth of economic activity each and every year. In Perth—Wellington alone, agriculture is a billion-dollar industry, with grain farmers cultivating some of the most fertile farmland in the world. Dairy, beef, pork, egg, chicken and other farmers provide high-quality food to feed our communities, our country and the world.

Anyone who tuned in to hear the Liberal government's budget speech would be sorely disappointed to know that this economic powerhouse of agriculture was not even mentioned in the finance minister's budget speech. In her 3,000-word speech, she did not once mention agriculture or agri-food, farmers and farm families, or food processing and rural communities. Not once was this economic powerhouse of agriculture and agri-food mentioned in the Minister of Finance's speech.

When a speech is used to highlight the priorities of a government, what is left unsaid is awfully telling. Farmers and farm families quite literally feed the world. They work hard, and they innovate each and every day. Thousands of farmers are up early every morning, while most of the country is still sleeping, making sure the food supply chain remains intact.

Agriculture has always been a challenging field. There are unknowns no one can predict. What farmers do not need is the uncertainty caused by their own government. Even before the Russian invasion of Ukraine, fertilizer costs and supply issues were a problem. This included the ongoing efforts of the Liberal government to limit the fertilizer farmers use on their crops.

On March 2, when the government announced sanctions that were supposed to target Vladimir Putin and his thugs, it was Canadian farmers who were left feeling the greatest impact. As we approach the spring planting season, farmers and agribusinesses still do not have certainty from the government on whether the 35% tariff will apply on fertilizer purchased pre-March 2, but delivered after that date. In a case like this, the farmer and only the farmer is feeling the impact, not Vladimir Putin and his thugs.

No one is disagreeing with the need for sanctions against Putin, but those sanctions should not penalize those who prepurchased fertilizer last fall and now are being left with the bill. The budget was an opportunity to provide clarity on this issue and, once again, the Minister of Agriculture and Agri-Food and the Minister of Finance failed to do so.

The cost of fertilizer is not the only challenge facing Canadian farmers. There is also the cost of the carbon tax, as I mentioned earlier. For farmers there are very few, if any, alternatives to the use of carbon-based fuels to dry their grain or to transport grain to elevators for export around the globe. However, the Liberals continue to unfairly and punitively charge the carbon tax in situations where there are simply no alternatives, and the cost simply accrues to those who feed our country. Canadian farmers have long used the most sustainable measures to protect and preserve our land and national resources, but while they are doing the work necessary, they do not get the credit, and they are actually penalized for their work.

Once again, there is an easy solution. My friend and colleague, the member for Huron—Bruce, wisely introduced a private member's bill that would exempt farmers for the responsible use of fuel on their farms. Bill C-234 would achieve this. In fact, a year ago, a bill similar to this one, Bill C-206, passed through this House and was well on its way to passing through the other place when the Liberals dissolved Parliament for the unnecessary summer election.

In a perfect world, we could have passed Bill C-206 a year ago, but the next best option would be to pass Bill C-234. The budget could have done this. Sadly, it failed to do so. Farmers and farm families deserve better than what they are receiving from the Liberal government. For the sake of our food sovereignty and food security, they must do better.

In the six and a half years I have been in this place, at almost every opportunity in almost every budget, I have raised the concerns about rural broadband in my riding and in rural communities across the country, but these past two years especially have shown the necessity of reliable Internet service. The Liberal government has been slower than dial-up. Every day I hear from constituents who cannot complete their education, grow their businesses, communicate with loved ones or even access mental health services because the high-speed Internet infrastructure is not there. Let me highlight that point. They cannot access mental health services because they do not have high-speed Internet.

I have heard from constituents who have had to drive to a Tim Hortons parking lot to use its Wi-Fi to access services. In 2022, this is not acceptable. In fact, yesterday in the House, we heard the Minister of Rural Economic Development highlight their plans to get Canadians connected by 2030. Eight years from now is not good enough. It is not good enough for the families in Perth—Wellington, and it is not good enough for the rural communities across this country who need reliable high-speed Internet for their families, their communities and their country.

I know my time is running thin, but I must highlight the issue of housing. In my community and in communities across Perth—Wellington, housing has simply become unaffordable. In some places we have seen an increase of 30%, 40%, 50% or more in the cost of housing, year over year. In a single year this has driven up the cost to where families are just priced out of the marketplace. There are things we could do. We could use the advice of the Ontario Home Builders’ Association and its efforts. It has stated that one million new homes need to be built in the next 10 years. We need to work toward that outcome. We need to remove the red tape blocking communities and home builders so families and communities can grow.

Sadly, this budget has left out rural communities. It has left out rural communities in Perth—Wellington and across the country. That is why I will be voting against this budget.

Economic and Fiscal Update Implementation Act, 2021

[Rosemarie Falk, Conservative, Battlefords—Lloydminster, SK]

Madam Speaker, as we have been hearing over the last couple of weeks especially, across the country, Canadians really are feeling the squeeze. Their budgets are being stretched further and further, and for too many, their pocketbooks simply cannot keep up. Inflation has ballooned to record levels and costs are skyrocketing.

Canadians need some financial relief, and this is something that we on this side of the House have been saying and asking for on their behalf. However, those who are desperately looking for a break will not find it here in the legislation before us. The Liberal government is asking Parliament to approve significant spending through the bill. In fact, in all, the fall economic statement and the fiscal update add $70 billion of new spending to the books, which will, in turn, fuel inflation in this country and send it to even higher levels.

This government's tax-and-spend agenda hurts our economy and it hurts Canadians. Just last Friday, we know that Canadians were hit with the latest Liberal tax hikes: The escalator tax on alcohol went up, and the failed Liberal carbon tax went up by 25%. That is an extra 2.2¢ a litre, bringing the carbon tax to 11¢ a litre. Of course, that is on top of the already high gasoline prices. The carbon tax is adding to the costs of groceries, home heating and everyday essentials that Canadians need and rely on. It is contributing to the inflation in this country, and in doing so it is actually punishing all Canadians. It is even more punishing for Canadians on fixed incomes who, frankly, can afford it the least.

I hear from my constituents on this issue all the time. I have received countless copies of energy bills from my constituents, who are anxious and distressed about the impact on their bottom line. Simply put, my constituents cannot afford this Liberal carbon tax, and they certainly do not accept this Liberal government's tired old talking points that they will receive more money back than they pay through the climate action incentive rebate. This government's math simply does not add up, and my constituents know that.

We also know that the Bank of Canada recently revealed that the carbon tax alone has increased inflation by nearly half a percent. That is, in essence, an additional tax on everything, and this government cannot simply ignore it when it is considering the cost of a carbon tax on Canadians. In fact, we all know now that the Parliamentary Budget Officer has confirmed that, contrary to what this Liberal government says, most households subjected to the Liberal carbon tax will, in fact, see a net loss. What is worse, this tax punishes Canadians while failing to accomplish anything for the environment. On top of that, it is even more punishing for rural Canadians, such as my constituents in Battlefords—Lloydminster. Farm families and farm businesses know that all too well. Their bottom line has taken a massive hit specifically from this Liberal carbon tax. The cost of business is going up, but they cannot pass those costs along. It is shrinking an already very slim profit margin.

While this legislation might seemingly acknowledge some of the hardships that are faced by our farmers, it fails to actually acknowledge the Liberal government's contribution to these hardships. The bill also fails to deliver a common-sense solution of simply exempting farm fuels from the carbon tax.

The reality is that our farmers are always looking to improve the efficiency of their operations. The agricultural community has developed and adopted modern technologies to reduce their carbon footprint and to protect our environment, which takes investment on their part. We know that the carbon tax is not accomplishing anything for the environment, and it would go a lot further to leave more money in the pockets of our farm businesses so that they could reinvest into what would work best for their own operations.

As our farmers face massive carbon tax bills on farm fuels including propane and natural gas, typically used in grain drying, I had hoped to see a full exemption on farm fuels in the fall economic update, but surprisingly that is not what is contained in the bill. Fortunately, a private member's bill to that effect has been brought forward by my colleague, the member for Huron—Bruce, and I hope that all members of the House will stand up for our hard-working farmers and support Bill C-234. Our farmers, as I have said, make tremendous contributions to our environment, our food security and our economy. We cannot take that for granted.

We need to ensure that the economic agenda of our country is working toward opportunity and a prosperous future for all Canadians. That is what is problematic with this legislation, and more generally, I would say, with the fiscal mismanagement of the Liberal government. This many years later, it really does seem like the Prime Minister still thinks and believes that budgets will balance themselves. However, we cannot dig ourselves out of a hole.

The Liberal government continues to spend money that is not there to fund its partisan-driven agenda. We know that since the start of the pandemic, the Liberal government has brought in $176 billion, not million, in spending that is completely unrelated to COVID-19. Our national debt is over $1 trillion. The Liberal government rarely talks in millions anymore and announcements in the billions have become more commonplace.

The finance minister certainly does not talk about what Canadians are paying to service that debt, nor does she acknowledge her government's contribution to rising inflation. Unfortunately, ignoring these factors does not negate their existence. With the federal budget set to be released later this week, I think Canadians would be right to brace themselves. They have been left to wonder what the new NDP-Liberal government will cost them and their children. The budget will likely give us our first glimpse of what an economic agenda driven by the NDP will cost. An ideological and activist-driven agenda that cripples our economic drivers and spends massively could only lead to higher taxes and more debt, and it is Canadians who will be left holding the bag, as usual.

The ease at which the government continues down this road shows just how out of touch it is with the reality of everyday Canadians. The Parliamentary Budget Officer has told Parliament that the rationale for the government's $100 billion in planned stimulus no longer exists. The government needs to start reining it in. If the government was serious about growing our economy, it could start by abandoning its policies that are crippling our economic drivers. It has chased away countless projects and investment dollars in our Canadian energy sector, a sector that has contributed so much to our Canadian economy and that could contribute so much more. That is not to mention its potential to contribute to the stabilization of global energy security.

The government's policies push Canada to the sidelines while leaving demand to be filled by other countries with lower environmental and human rights standards than we have here in Canada. Canada finds itself at a disadvantage with nothing really gained. This is particularly devastating for my constituents, many whose livelihoods have been taken away or threatened while the cost of everything continues to go up.

When considering this legislation, we cannot simply ignore the inflation tax. Inflation is eating into the paycheques of my constituents and those of every single Canadian. A dollar today does not go nearly as far as it used. The government's spending is only pouring gasoline on the fire, leaving so many Canadians behind. Canadians need real solutions in the immediate term.

On this side of the House, the Conservatives have proposed a number of common-sense and practical solutions to help Canadians, but the Liberals have rejected each and every one. With record high inflation and skyrocketing costs of living, it is time to give Canadians a break. We need real solutions, tangible solutions, to alleviate the inflationary burden on Canadians. We cannot keep going down this risky and expensive path that is leaving far too many Canadians behind.

[Mike Ammeter, Chair, Canadian Canola Growers Association]

Thank you very much, Mr. Chair, for the invitation to speak today.

My name is Mike Ammeter and I'm the chair of the Canadian Canola Growers Association. I farm at Sylvan Lake, Alberta, which is an hour and half north of Calgary. I grow canola, pulses, wheat and barley on approximately 1,400 acres of land.

With me today is Dave Carey, CCGA's vice-president of government and industry relations, who is based in Ottawa.

CCGA is the national organization representing Canada's 43,000 canola farmers. Canola is Canada's most widely seeded crop, generating the largest farm cash receipts of any agricultural commodity and earning farmers over $12 billion in 2021. Ninety percent of our crop is exported as seed, oil and meal. The canola sector contributes $29.9 billion to Canada's economy every year and supports over 200,000 jobs.

Canola farmers are committed to a sustainable future and play an important role in advancing our collective environmental ambitions. By 2025, canola farmers plan to reduce their fuel usage by 18% per bushel, increase land use efficiency by 40% per bushel and sequester an additional five million tonnes of CO2 using 4R nutrient stewardship practices on 90% of canola acres. They continue to safeguard the more than 2,000 beneficial insects that call canola fields and surrounding habitat home.

To reach these goals, we need all the tools in the tool box in terms of access to innovative technologies and practices that will help us continue to soften our environmental footprint while ensuring our farms remain economically sustainable and competitive.

Farmers have a proven track record of adopting innovation that benefits the environment, like conservation tillage or zero till. Over a decade ago, I personally began to practice zero till on my farm as a way to use finite resources more efficiently and to improve soil conditions. By voluntarily adopting this practice, farmers like myself have improved soil cover, sequestered carbon and reduced soil erosion risk while reducing fuel and labour requirements. In 1991, 7% of Canadian farmland was seeded with no-till practices. By 2016, this number had increased to over 60%.

To accomplish these sustainability goals and practices, the canola sector has also set a production target to reach 26 million tonnes and 52 bushels per acre of canola by 2025. Not only is this a sector goal, but it also aligns with the Government of Canada's own objective of expanding agri-food exports to $85 billion by 2025. It will be difficult to increase production given that farmers are also tasked with meeting the target of reducing absolute levels of fertilizer emissions by 30%.

The announcements to expand crush capacity domestically—adding up to an additional seven million metric tonnes of demand annually—illustrates that industry is willing to invest in Canada and the canola sector. However, they need to feel confident that the regulations in the clean fuel standard enable canola production as a feedstock for biofuel and that we can also meet our own production goals to see these investments become a reality. Agriculture clearly has a unique role to play in expanding Canada's economy, but production will need to continue to increase to meet demand.

To meet government and industry targets, farmers will need to invest in our operations—in new technologies or equipment—and potentially take risks on implementing new practices. Farmers will make these investments when they are confident in the economic stability and sustainability of their operations. Specifically, government can help facilitate this by ensuring farmers have access to predictable and reliable risk management programs, such as AgriStability and AgriInvest.

Another way to encourage farmers to invest in new technologies and practices is by supporting Bill C-234. By providing relief from carbon pricing on natural gas and propane, those dollars that would otherwise be paid by farmers can be invested in technologies that will have a positive environmental outcome. Rebates will not make up for the costs incurred by carbon pricing.

Lastly, it is vital that the government stick to science-based decision-making, especially when reviewing pest control products and associated maximum residue limits. Streamline approval processes for seed varieties where possible, so Canadian farmers can remain competitive and sustainable.

In conclusion, it's vital that the focus of sustainability be not just environmental but also economic to ensure that our collective goals are achieved. Canola farmers take pride in how we care for our natural resources. No one has more of a vested interest in the environment and in ensuring the sustainability of our farms to be able to pass them on to the next generation than we do.

Thank you for the opportunity to appear today. I look forward to questions.

Taxation

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Mr. Speaker, my Conservative colleague for Huron-Bruce introduced a bill that would remove the Liberal carbon tax from grain drying and heating.

At a time when global food security is so important, the government continues to restrict our agriculture industry. This bill would have passed in the last Parliament if the Liberals had not called an unnecessary election.

Will the government help to support Canadian farm families by supporting Bill C-234?

Economic and Fiscal Update Implementation Act, 2021

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Madam Speaker, I would like to thank the member for Foothills for his speech. I think he realizes the NDP is supporting Bill C-234. He comes from one of the most beautiful ridings in the country. It is almost as beautiful as mine. What it does have is some of the most fabulous native grasslands in the country.

I used to serve on the board of the Nature Conservancy of Canada. We did a lot of work in that area, working with ranchers to help conserve one of the most endangered ecosystems in the country. It was valuable to have ranchers on side to help us with that cause. Could he expand on that?

[John Barlow, Conservative, Foothills, AB]

Madam Speaker, it is an honour always to rise in the House to speak on behalf of my constituents in Foothills and, in my role as shadow minister for agriculture and agri-food, to speak on behalf of farmers and farm families across Canada.

We are talking about Bill C-8. There is one key element of Bill C-8 that I want to address today and discuss. That is the sharp contrast between what the Liberal government is proposing in its carbon tax rebate for farmers and what Conservatives are proposing in the private member's bill, Bill C-234, brought forward by my colleague from Huron—Bruce. We have seen a very sharp response from the Parliamentary Budget Officer that certainly counters the claims that have been made by the Liberal government.

From the very beginning, when the Liberals have talked about their carbon tax, they have always said it is going to be revenue-neutral and that whatever anyone pays into the carbon tax they are going to be getting it back in a rebate. We know, from the report of the Parliamentary Budget Officer that came out last week, that this is completely untrue. In fact, Canadian farmers only get about $1.70 for every $1,000 of eligible expenses that they pay on the farm. That is definitely not revenue-neutral. In fact, that is only a fraction of what a farmer or a farm-family producer or agri-food business would spend in a carbon tax.

All of us in this room who have farmers in their constituencies have received carbon tax bills from our constituents. I have had bills that have gone from a few thousand dollars to tens of thousands of dollars in one month, depending on the size of the operation. Therefore, to say that this carbon tax rebate is going to be revenue-neutral is misleading Canadians and certainly misleading farm families. We know now that the carbon tax is disproportionately more punitive on rural communities and especially on farmers.

If that were not bad enough, we have seen already that the carbon tax has been quite punitive on farmers. We saw the numbers that have been put forward by the Canadian Federation of Independent Business. The average farmer paid about $14,000 in the first year of the carbon tax. That went up to $45,000 last year, and this is going to go up again on April 1.

What is that going to mean, moving forward? MNP has stated that, in the canola industry alone, the carbon tax of 2022 cost about $71 million. By 2030, that carbon tax as it continues to increase is going to cost the canola industry alone $1.7 billion. Those are funds that are not going back into investments in technology and innovation. They are not funds that are going into the local rural economies. That money is going directly into Liberal government coffers and is not going to be redistributed, as the Liberals have claimed that it would be, to the farm families who are having to pay that.

This is unsustainable, especially with the precarious situation that Canadian agriculture already faces with skyrocketing input costs on things like fertilizer, herbicides, diesel, propane and natural gas. Farmers are also facing very critical supply-chain problems and a crisis in labour supply. All of these things are having a compound negative impact on Canadian agriculture. It is almost nonsensical at this very tenuous time, when there is a global food shortage looming as a result of the conflict in Ukraine, that the government would continue to add to that burden by increasing the carbon tax on Canadian farmers.

One of the other issues with it that was highlighted by stakeholders is that there are no viable alternatives presented in Bill C-8. I would invite some of my colleagues to come to rural Canada and see exactly how things work. A Canadian farmer cannot haul cattle with an electric car. It is physically impossible. A Canadian grain farmer cannot move his grain from the farm to the terminal on the subway. My riding is 25,000 square kilometres. Public transit does not exist. It certainly does not exist for the average citizen, but it definitely does not exist for a farm operation that needs to move product and drive very long distances to deliver its product to market and that needs to drive a tractor to spray and plant and drive a combine to harvest. There are no alternatives for these things. They have no choice.

However, we have seen that they have managed and worked hard to improve efficiencies: their carbon footprint has gone down substantially as a result of modern technology and innovations such as zero tillage, precision farming and 4R nutrient stewardship. They have gone to great lengths to ensure that Canadian farmers are doing all they can to protect their environment and their soil, but government policy needs to be based on reality and the realities that Canadian farmers and farm families are having to face every single day.

It is even more frustrating for those farmers who are investing money each and every year to improve their operations, because they are the frontline stewards of our environment. I would say that is known around the world, as Canadian farmers are world leaders when it comes to environmental sustainability. Looking at the Parliamentary Budget Officer's report on the carbon tax, it clearly states that the carbon tax does not even reduce emissions. It does not force people to reduce emissions because there are no viable alternatives when it comes to our ability to reduce emissions on farms.

In fact, I would argue that it is quite the opposite. There was a study done by the Keystone Agricultural Producers two years ago. The report noted that agriculture has about 100 megatonnes of emissions a year, which has remained quite stable despite a massive increase in yield, so we are doing much better with much less because of our commitment to efficiency and sustainability. However, reading further on, what is very important in that study is that not only do farms emit about 60 megatonnes of C02 a year, but they also capture 100 megatonnes of C02 a year in carbon sequestration by taking care of the land. When that product leaves the farm gate and goes into the market, not only is agriculture already net-zero, but it is actually a 30-megatonne carbon sink.

If that is the case, as agriculture stakeholder groups have said in their data, why are they not being celebrated or encouraged to continue on with the work that they are doing? Instead, we are doing exactly the opposite by punishing them with the carbon tax. They now clearly know from the Parliamentary Budget Officer's report that they will not be made whole: This is going to cost them money. That is money that they should be able to keep in their pockets and reinvest into their operations, reinvest into new energy-efficient equipment, and reinvest into more efficiencies in terms of agronomy, drones, precision agriculture and those types of things. When we take tens of millions of dollars out of farmers' pockets, it makes it very difficult for them to do that.

In contrast to what is being offered by the Liberals in Bill C-8, the Conservatives have put forward a private member's bill, Bill C-234, that would exempt farm fuel from the carbon tax, specifically natural gas and propane used for heating and cooling barns and buildings, as well as for drying grain. That would allow those farmers to hold that money in their accounts and reinvest those dollars into their operations, again to make them more efficient and more sustainable.

Unlike the Liberals' carbon tax in Bill C-8, Bill C-234 has almost unanimous support among agriculture stakeholders, including the Agriculture Carbon Alliance, which is a coalition of 14 different national farm organizations that represent 190,000 farm businesses and more than $70 billion in cash receipts. I think that is pretty critical, when all of those groups are supporting our approach to reducing emissions compared with the Liberals' obviously failing option. I will give some examples. Mary Robinson, the president of the Canadian Federation of Agriculture, is in support. The Agriculture Carbon Alliance is supporting it. Jan VanderHout, president of Fruit and Vegetable Growers of Canada, has given notes of support.

In conclusion, to have these stakeholders and our farm families across Canada supporting one direction in addressing emissions that is in complete contrast to and opposite from what the Liberals are proposing in Bill C-8 is, I think, something we need to listen to. Getting money back into producers' hands as quickly as possible is more beneficial, and it is more effective in reducing emissions, becoming more efficient and continuing to ensure that we can not only feed Canadians but carry that burden of feeding the world as well.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, it is great to be here in the House again today rising on Bill C-8. As members are aware, Bill C-8 is an omnibus bill and a large piece of legislation, so I will spend my time focusing on several elements of it, particularly with respect to the carbon tax. However, before I do that, I think it is important to put down the context for Bill C-8.

From the time it was initially introduced to where we are right now, things have changed dramatically. Canadians are finding it harder and harder to get by. They are challenged to put gas in their tanks, feed their families and get through these cold months of early spring. The reason is that there has been profligate spending by the Liberal Party, and this unnecessary spending is being put right on the backs of Canadians.

What happens when we spend and spend is that the money has to come from somewhere. Either it has been coming from the taxpayer directly or it has been going to our loans. For people who are not aware, through quantitative easing we are actually borrowing money from ourselves, which is challenging because where is that money coming from? Well, the Bank of Canada is printing that money. It is a basic concept of economics that where we have more of something it is worth less, so what we are getting by having our printing press on overdrive through quantitative easing is more and more currency. There is $400 billion of extra currency out there, and we have driven down the value of money in our country. Not surprisingly, shock upon shock, guess what? We have inflation, which means the value of goods is going up and the value of money is going down.

Scotiabank is saying that we may in fact face inflation of up to 8% going forward. Let us put that in context. We call this the “inflation tax” because what it is really doing, just as sure as income tax or sales tax, is taking value from the taxpayer and putting that value into the vaults of government. To give members an idea, at 8% inflation, a Canadian earning $40,000, such as a single mother in Cobourg or Port Hope trying to get by earning a bit more than minimum wage, is going to be paying $3,200 in extra inflation tax just this year. Imagine a couple earning $50,000 each, and let us say they have a family four. That is $100,000 total. As we know, with housing prices and everything else going up, that is not a tremendous amount of money to get by on. They are going to be paying an additional $8,000 in inflation tax at 8% interest. This is robbing Canadians of the value of their labour and they are working so hard. The billionaires and millionaires will get by, but for those folks at the lowest rung of the economic ladder, those who are struggling, this inflation tax is enough to knock them down into poverty.

Then we exacerbate that problem with the carbon tax. I had the opportunity to ask the Governor of the Bank of Canada, Tiff Macklem, some questions about inflation and about the impact of the carbon tax. Surprisingly, he did not know what the impact was when I asked him. However, he wrote back to the finance committee and said that, at the time, nearly 10% of inflation was caused by one tax: the carbon tax. Imagine that. We have income tax, sales tax and taxes on tax, but just one tax, this carbon tax, is responsible for 10% of the pain being inflicted by the inflation tax.

The reality is that the purpose of the carbon tax is to increase the cost of certain goods and services that emit high amounts of GHG so that people will not want to buy them. We then push those individuals into buying lower GHG-emitting goods and services, which in itself is not a bad thing. The challenge, though, is that it is often a fallacy, because there are no other options available. As I said earlier, a single mother earning $40,000 a year simply cannot afford to buy a $50,000 or $100,000 Tesla. It is the equivalent to saying, “Let them eat cake” when we say to buy an electric vehicle.

For farmers, this problem is particularly acute, and for many of them, at least at this point, there are no alternatives. We are starting technologies for electric tractors, which is great, but they are not there yet, so when we increase the carbon tax on propane, natural gas and other fuels, we are putting that directly on our farmers.

One particular example I have is with respect to propane and natural gas. I had the great privilege and honour of introducing Bill C-206 in the House last Parliament, and what that called for was an exemption for farmers, not just on gasoline and diesel, as that already exists, but on cleaner fuels as well, like natural gas and propane. That gave farmers a full exemption, because they do not have the ability to use other technology right now. It does not exist. We listened to expert after expert at the agriculture committee, and they said there is not a commercially viable alternative to fossil fuels when it comes to drying grain or heating livestock barns. We live in a cold country, as we know. Those who do not know that should walk outside here in Ottawa. We need clean Canadian energy to allow our farmers to be competitive.

Bill C-8 offers a rebate to farmers instead of an exemption, and this rebate is a step in the right direction. However, I remember being in this very House about a year or two ago when the Minister of Agriculture and Agri-Food said the cost of the carbon tax is not a serious issue for farmers. Well, the farmers disagreed. They rose to the occasion and we were able to bring the discussion to Ottawa. We said that it is an issue and that farmers are paying tens of thousands of dollars. However, as is often the case, the new NDP-Liberal government is up here a day late and a dollar short, because this rebate only covers a very small amount of the cost. It is incredibly inequitable.

Let me explain what I mean by inequitable. Of course, this country is very different climate-wise, region-wise and even farming-wise. The type of farming someone does in Victoria, B.C., is much different from the farming someone does in St. John's, Newfoundland, and all parts in between. The system set up with Bill C-8 is one size fits all. It says that depending on expenses, the government will give a certain amount of a carbon tax rebate. That is a terrible proxy. It makes no sense because the expenses for farming in Victoria, B.C., will be different from those in Regina, Saskatchewan, and Northumberland—Peterborough South. We are just grabbing this one-size-fits-all solution. What I can guarantee will happen is that farmers will have no choice but to be in high carbon-intense areas of farming that will receive minuscule rebates, whereas other areas where carbon is not as important in a particular industry may receive higher rebates. We are creating inequity because the calculation in Bill C-8 makes no sense.

Here is a better idea. My colleague from Huron—Bruce has reintroduced the new and improved Bill C-206 as Bill C-234. It says we should just give them an exemption. That way they get 100% of the dollars they spend on propane and natural gas back in their pockets. It is a broader discussion we need to have. We need to decide whether we can trust Canadians with their own money.

Members will remember that back in the Paul Martin era, the Liberal government, now the Liberal-NDP government, famously said that if we leave Canadians alone, they are going to spend their money on beer and popcorn. This reeks of that. It reeks of this conversation. Why would we not just allow them to exempt that money instead of transporting all of it to Ottawa, since, shocker, some of it gets lost and stays here in Ottawa? Why would we not just leave it in the jeans of our farmers, instead of having that money go to Ottawa, where some of it will be left over, and then having a small portion go back to farmers? I will give an exact equation. A farmer in Manitoba would pay $9,000 in carbon tax and will get $3,000 back, whereas under Bill C-234, they would get all $9,000 back. I believe in the individual—

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Thank you, Mr. Chair.

My first question will go to the Canadian Federation of Agriculture. I want to say thank you to Mr. Currie for attending Mr. Pommainville's wake yesterday. I know the community really appreciated it.

On the issue of Bill C-234, I know that on Bill C-206 there were some conventions with regard to putting a timeline on that exemption.

Are you in favour of putting a 10-year exemption on there or just a complete exemption for as long as it lasts?

[Keith Currie]

I think Dave and Scott highlighted the main key concerns around the exemption versus the rebate.

The other thing I will add is that rebates are an administrative burden on everybody, both farmers and ranchers, but also government. It's very costly to initiate a rebate type of system; whereas an exemption is simply a signature on a piece of paper by a farmer or rancher that they are a registered producer and then away we go. There are no administrative costs beyond that.

Getting that money back into producers' hands in a timely fashion is what's necessary, along with not costing the government a lot of money to administer the program as well. That's why we are fully on board with Bill C-234 for the exemption, as opposed to the rebate system.

[John Barlow, Conservative, Foothills, AB]

Thank you very much, Mr. Chair.

Thank you to our witnesses for being here today and providing us with some excellent information.

I want to start with the Agriculture Carbon Alliance. I think it's such a great organization, to see some of our agriculture stakeholders working together to be proactive when it comes to our agriculture sector and the role it will play in stewardship of our environment. It's certainly an opportunity to highlight some of the incredible things that agriculture has already done. Kudos to this group for getting together and forming this alliance.

I don't know who wants to answer from the ACA, but you mentioned your support for Bill C-234. I know my colleagues across the way will talk about Bill C-8 and the carbon rebate, but we've already seen the report from the Parliamentary Budget Officer that the rebate does not reduce emissions and also is not revenue neutral. In fact, when we see the numbers of $1.70 per $1,000 of eligible expenses, it is only a fraction of what producers will be spending in terms of their carbon taxes.

Why is it important to have that full exemption from the carbon tax, which would be provided under Bill C-234, compared to the rebate program that's being proposed in Bill C-8?

[Keith Currie, First Vice-President, Canadian Federation of Agriculture]

Thank you.

I'm Keith Currie. I'm the first vice-president of the Canadian Federation of Agriculture. We represent some 200,000 farmers, ranchers and farm families nationwide. I'm joined by Frank Annau, our director of environment and science policy.

We appreciate this opportunity to discuss how to continue the hard work of farmers on reducing emissions and improving soil health. Producers are stewards of the land, and manage significant carbon sinks that play a key role in soil health and the fight against climate change.

These sinks are maintained by a number of farm-driven practices that regenerate soil organic matter, which in turn improves carbon sequestration and long-term carbon storage in agricultural soils. These practices are wide ranging, but can include intercropping, cover cropping and rotational grazing, all of which are eligible for funding under the on-farm climate action fund.

With Canada being as large and as vast as it is, the success of these approaches can vary by region, and it is critical that initiatives, such as living laboratories, expand to western Canada, so that innovations in soil health can be refined in areas hit hard by recent flooding and drought.

Farmers are also well versed on the environmental and cost reduction benefits of efficiently managing critical inputs, such as fertilizers, fuels and pest control products.

As you may be aware, industry-led approaches, such as 4R nutrient stewardship, help producers select the right source of fertilizer to apply the right amount in the right place at the right time.

Research shows that correct implementation of this protocol results in a 15%-25% reduction in nitrous oxide emissions. These efforts can be greatly enhanced by precision agricultural technology, such as crop and soil sensors, that optimize the rate of fertilizer, pesticide and weed control application. This, combined with practices that regenerate soil organic matter, help prevent our overapplication of inputs, which protects soil biodiversity and improves soil health.

Precision ag technology also significantly improves fuel efficiency by using fleet analytics and auto-guidance systems, which reduces the number of passes needed for sprayers, tillage and harvesters. One U.S. study found that this would decrease fuel use by up to 6%, which is the equivalent of 18,000 flights. The same study stated that this fuel use could decrease a further 16% with a broader adoption of this technology.

In Canada, there are a number of barriers to this adoption, including the lack of reliable rural broadband Internet needed to run the equipment, and the fact that adoption rates drop significantly on farms that are under 500 acres in size, or that have an annual income of under $75,000. As such, it is recommended that government prioritize rural Internet and scaling down this technology in order to realize those fuel efficiencies.

With respect to greenhouse gas reduction, the largest cattle methane reduction study was concluded in Alberta in 2020. It showed that methane emissions per cattle could be reduced by 30%-80% by including an additive call 3-NOP in different combinations of feed. The additive was developed by DSM technologies, which has applied for registration in various countries to bring the product to market in 2022.

Unfortunately, here at home, the product may not be on the market for years, because Health Canada has classified it as a veterinary drug. This puts livestock sustainability efforts in Canada behind countries that have registered the product as animal feed, including EU countries, China and Brazil. We recommend the government follow suit with our trade partners and competitors by ensuring 3-NOP reaches Canadian markets as soon as possible.

All of these solutions, while effective, come at a significant investment and cost to farmers. It is therefore essential that we ensure they have the cash in hand to invest in solutions, and participate in government cost-sharing where available. The cash is being significantly reduced by record high costs for inputs, such as fuel and fertilizer, brought on by Russia's invasion of Ukraine. These events put greater pressure on Canadian farmers to produce more than ever before to mitigate impacts from a world food shortage brought on by the war. We must ensure farmers have cash resources to rise to this occasion, and to do it sustainably.

The price on carbon acts as a market incentive to switch to lower-emission fuels and improve fuel efficiency. This signal is dwarfed by the blaring alarm of current gas prices. While gas and diesel are exempt from carbon surcharges on farm, natural gas and propane used for grain dryers and livestock heating and cooling systems are not. These activities are critical to mitigating severe climate impacts, such as extreme rainfall and drought.

We therefore recommend support for House Bill C-234. Removing the carbon price on these fuels will provide farms with additional cash to invest in the input efficiency needed to respond to record input prices and help Canadian farmers feed the world.

We thank you for your attention.

[Scott Ross, Co-Chair, Agriculture Carbon Alliance]

Thank you, Dave.

ACA also works proactively on behalf of Canadian agriculture to advocate for constructive and evidence-based environmental policies. To date, we have focused on three major priority areas.

Carbon offset protocols open to science-based measurement should incorporate flexibility to recognize incremental improvements in on-farm practices that have already taken place and will take place, while accommodating advancements in verification that would allow for more outcome-based measurements.

ACA welcomes the opportunity for targeted producer engagement on the enhanced soil organic carbon protocol. We also look forward to engaging on future protocols for livestock feed management, the avoided conversion of grasslands, 4R climate-smart offset protocols and livestock manure management.

We understand that the proposed offset protocols will not apply to farms that began those activities prior to 2017. However, we do not believe that this should serve as a barrier to recognizing early adopters for their contributions to the sector. Instead, protocols and support programs should also be developed for producers who were early adopters of best management practices. Protocols or direct payment for long-term carbon storage would help ensure that this critical ecosystem service is recognized for its vast contribution to on-farm environmental efforts.

On research and rebates, the climate action incentive fund returned a portion of revenue collected by the carbon tax for rebates and retrofits that reduce carbon emissions for small and medium-sized enterprises. Farms were the largest pool of applicants demonstrating their commitment to climate action. Unfortunately, CAIF has not been open for applications since 2019, and our members are looking for clarity on the future of this program.

The ACA also welcomes the opportunity for further engagement on the agricultural climate solutions program. The government should ensure that living lab sites are expanded to the west, for example, where mounting climate extremes are having profound impacts on producers.

In conclusion, farmers and ranchers continue to face rising costs for producing food, particularly inputs and transportation. These costs are compounded by the carbon surcharge. Farmers and ranchers are required to dry their grain, and heat or cool their barns and greenhouses in order to feed Canadians and drive our export market. These are the very activities needed to mitigate the impacts of climate change, including drought and extreme rainfall. With no alternative fuel sources available, these necessary practices are penalized by an increase in the price of carbon. As such, amendments must be made to the Greenhouse Gas Pollution Pricing Act to extend exemptions for qualified fuel to marketable natural gas and propane, and include machinery used for grain drying, irrigation and heating and cooling of livestock barns and greenhouses.

Farmers are environmentalists and have been improving their sustainability for decades through innovations and BMPs. With record fuel prices, there are already strong incentives to invest in fuel efficiency, but farmers need to have available capital to be able to make investments in improving their operations, which are often very expensive and can amount to hundreds of thousands of dollars.

By adopting policies that support competitiveness, the government will ensure that farmers can further invest in the sustainability of their operations, leveraging the sector's potential to lower emissions and sequester carbon. As such, ACA and our members are strong supporters of Bill C-234 and would encourage all members to support the bill and expedite its review at committee stage.

Thank you, all, for your time. We look forward to your questions.