The Rising Cost of Propane for Farmers: Impact of Carbon Tax

💰Farmers in Manitoba are experiencing a significant increase in costs due to the rising carbon tax on propane and natural gas.

🌾While certain farming equipment is exempt from the carbon tax, propane used for heating barns and drying grain is not exempt.

👨‍🌾The carbon tax on propane and natural gas adds a substantial amount to the overall expenses of farmers in Manitoba.

🏭Despite being one of the largest carbon sinks in Western Canada, grain farming is being penalized by the carbon tax.

📜A private members Bill aims to address the challenges faced by farmers by exempting grain drying and barn heating from the carbon tax.

Why are farmers facing increasing costs for propane?

—Farmers in Manitoba are facing increasing costs for propane due to the rising carbon tax, which is applied to propane and natural gas used for heating barns and drying grain.

Which farming equipment is exempt from the carbon tax?

—Certain farming equipment is exempt from the carbon tax, but propane used for heating barns and drying grain is not exempt.

How much does the carbon tax add to the overall expenses of farmers in Manitoba?

—The carbon tax adds a substantial amount to the overall expenses of farmers in Manitoba, as they have to absorb the cost of the tax without being able to pass it along.

Why are grain farmers being penalized by the carbon tax?

—Despite being one of the largest carbon sinks in Western Canada, grain farmers are being penalized by the carbon tax on propane and natural gas used for heating barns and drying grain.

Is there any proposed solution to address the challenges faced by farmers?

—Yes, a private members Bill aims to exempt grain drying and barn heating from the carbon tax, which would help alleviate the financial burden on farmers.

00:04The time of year has come for Manitoba farmers to start using their farming equipment, including propane-fueled grain dryers.

00:10Roger Vogs, a Manitoba farmer, explains that running his propane-fueled grain dryer has become more costly each year due to the rising carbon tax.

00:29The federal carbon tax has risen to $80 per ton, leading to increased costs for farmers using propane.

01:06The carbon tax is exempt for certain farming equipment, but propane and natural gas used for heating barns and drying grain are subject to the tax.

01:19The cost of the carbon tax on propane and natural gas can sometimes exceed the actual fuel cost for heating buildings, creating a substantial expense for farmers.