Thank you very much, Mr. Chair and dear members.
Climate change is a real problem and concerns us greatly. Everyone agrees that we need to act quickly. The carbon tax seems to provide a simple and fair solution, but for farmers, a $170-per-tonne carbon tax is a game-changer. By 2030 a typical 5,000-acre farm would have to shell out a significant sum, which could reach tens of thousands in new tax based on some estimates, and without compensation. This is enough to compromise any farm's ability to make a profit. Across the food supply chain, not all carbon taxes are created equal.
Furthermore, the impact of a $170 tax on the competitiveness of the sector will depend greatly on what happens at Canada's borders and beyond. Given the competitiveness of national and international food markets, a $170 tax per tonne imposed in Canada but not imposed in other major exporting and importing countries will undoubtedly penalize our own farmers. Producers cannot increase their prices even if production costs increase on the farm. This is quite simply price-taking economics. Unlike the food processing and distribution sectors, this economic reality afflicts production significantly. By taxing our domestic food production, importers will have a significant competitive advantage. Protecting our own farmers is imperative.
Farmers are among the best environmental stewards in the world. They earn their living mainly by having access to abundant natural resources. Environmental recklessness is just not an option for them. In fact, many Canadians are not aware of how much carbon sequestration does occur at the farm gate. In the last 30 years, we have seen more technological changes on farms in Canada than in grocery stores. This may explain why Canadians may underappreciate the progress made by farmers regarding sound environmental practices over the last generation.
One example is the fact that there is little tillage being done on the Prairies. Manitoba still tills to some extent, but that is due to the heavy clay soils that must be dried out over several years in order to facilitate seeding. An unreleased study by Dr. Stuart Smyth and Chelsea Sutherland from the University of Saskatchewan looks at carbon sequestration on the farm. Tillage practices pre-1995—pre-GM herbicide-tolerant canola—are compared with 2016 to 2019 rotation data. Continuous cropping allows for ongoing CO2 sequestration. Removing tillage has greatly reduced the amount of soil carbon that is released into the atmosphere.
Such progress is largely due to research in genetic engineering. Farmers have embraced these new technologies, allowing agriculture to reduce its carbon footprint. In lieu of being unfairly targeted, the work that farmers are doing should be celebrated and recognized. Incentives to make big changes are lacking. For example, there is no technological substitute for propane to dry out grain at harvest. We need to develop new technologies to offer environmental options to our producers.
Safeguarding our farmers' competitiveness while assuring Canada of more food autonomy will be critical, especially if our country aspires to reach our goal of becoming an agricultural powerhouse, as set by the Barton report a few years ago.
I would also like to give the committee an important message which goes beyond agriculture. You should know that consumers are facing big risks as well. Farmers are still claiming that the price of food will go up because of the carbon tax, which will be $50 per metric ton next year. This is not really true. Quebec and British Columbia have had a carbon tax since 2007 and 2008 respectively and food prices have barely budged.
If, however, the carbon tax increases to $170 a ton, it would be risky to downplay any potential effect on food affordability without conducting an in-depth evaluation.
Obviously, more research needs to be conducted, but a considerable hike in food prices is certainly possible.