QUESTION PERIOD — Agriculture and Agri-Food
Exemption of Grain Drying Cost from Federal Carbon Tax
December 12, 2019
Senator Harder, over the last four years I have raised many different issues impacting our agricultural and agri-food sector. Today is your last Question Period as the Government Leader in the Senate, and I will once again raise some concerns from our farmers and see if your last answer to me is a direct one.
Statistics Canada reports that net farm income fell almost 10 per cent in 2018, while operating expenses went up 5.6 per cent. While 2018 was a challenging year for farmers, it’s hard to believe that 2019 was any better. Market access problems are everywhere we look. India, China, Italy, Saudi Arabia and Vietnam have all placed barriers on agricultural trade with Canada.
The carbon tax is another challenge. Keystone Agricultural Producers of Manitoba recently pointed out that farmers have incurred unavoidable grain-drying costs due to the wet harvest conditions, and the carbon tax made the situation even worse.
Senator Harder, will your government help our farmers in these difficult times and exempt their grain-drying costs from the federal carbon tax?
I thank the honourable senator for his question. It is with some relief that I can say this is my last Question Period.
He is absolutely right about the importance of the agricultural sector to Canada and that in the global marketplace there are challenging times in trade, which is why the government is pursuing such an active agenda in trade diversification and ensuring that the markets have the best trade agreements.
The recently re-concluded NAFTA provides some degree of assurance within the North American marketplace. The opening up of the European market and the Asia Pacific Trade Agreement through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership is important for us. I dare say that ensuring that the existing markets in Asia beyond the TPP, such as China, remain open to Canadian products is very important for us, even in times of strained bilateral relations.
The honourable senator will know that this diversification agenda is one that requires cooperation with provinces that have a role here, and the government has the responsibility of all stakeholders in the bilateral and multilateral fora. I hope the government can continue to count on the support of the honourable senator opposite and his colleagues on these initiatives as they make their way through Parliament.
With regard to the specific question of the impact that carbon pricing is having on the drying of lentils and other products, I can tell honourable senators that the Minister of Agriculture and the Minister of Environment are reviewing this issue to ensure that the ongoing support, where necessary, is provided.
Thank you for that answer. Hopefully that review will be finished sooner rather than later.
