Canada
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Farmers closer to carbon pricing exemptions after House passes bill

A private member’s bill that would create specific carve-outs for farmers in Canada’s carbon pricing scheme has passed in the House of Commons.

The bill would exempt farmers from paying for emissions from natural gas and propane they use for certain activities performed on their farms, such as drying grain, preparing feed, irrigating and heating barns.

It passed with the support of Conservative, NDP, Bloc Quebecois and Green Party MPs, with a few Liberals, including agriculture committee chair Kody Blois, joining the opposition parties to vote in favour.

Read more: The federal carbon tax is set to rise April 1. How will that affect gas prices?

The bill was introduced by Conservative MP Ben Lobb in February 2022 and would not exempt farmers from the carbon price for activities performed off-site. It will now be debated in the Senate.

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Farmer groups have said they are facing rising production costs, and the proposed law would give them critical financial relief from rising costs.

Agriculture Minister Marie-Claude Bibeau maintains that the federal government is helping farmers reduce their carbon footprints and ease financial burdens through a $3.5-billion sustainable agricultural partnership with provinces.