Summary of KAP's position on carbon taxes
Farmers are concerned the carbon tax will make them uncompetitive with the U.S.
Therefore, KAP is calling on the provincial government to:
- Exempt agricultural production (see explanation below).
- Credit farmers for their beneficial practices that protect the environment.
- Show where every carbon tax dollar is raised and spent.
- Consult further with farmers across the province.
1. Exempt agricultural production
- Agricultural producers should be exempt from the carbon tax, including tax on:
- purple gas and diesel
- heating fuels
- emissions from animals and manure storage
- emissions from fertilizer application
- Producers need these exemptions to remain competitive with countries that do not tax carbon, especially the United States.
- Farmers should receive financial credit for their beneficial practices that sequester carbon in the soil, and produce other ecological goods and services for society.
- For example, when farmers maintain healthy riparian areas, this keeps excess nutrients out of waterways.
- The province should also invest in helping the agriculture industry adapt to climate change.
- In particular, we need to address long-standing flooding and drought issues that will only become more pronounced as the climate changes.
- These priorities should be funded by society, not just farmers, because this work benefits everyone.
- The province should be required by law to publish a report every year explaining where every dollar of carbon tax revenue was raised and where it was spent.
- No dollars should go into general revenue. They should be focused on protecting farm competitiveness and the environment.
- The government’s carbon tax survey is only the tip of the iceberg of the consultations that need to happen. The government needs to talk face-to-face with farmers across Manitoba.