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.