The Saskatchewan Association of Rural Municipalities (SARM), along with member RMs, knows that Saskatchewan’s farming community is grappling with challenges arising from the implementation of clean fuel standards.
Starting July 1, the new regulations will cover the entire life cycle of fuels, from production and transport to consumption. These stringent requirements will lead to increased fuel prices, directly affecting farmers’ bottom line.
The rising costs have created a financial strain, squeezed profit margins, and placed additional pressure on an already challenging industry. The Parliamentary Budget Office (PBO) predicts a price increase of 17 cents per litre. That’s on top of the 37 cents the carbon tax will add to a litre of gasoline by 2030, causing an economic cost to GDP of roughly $9 billion.
“We see this very much as a Carbon Tax 2.0” states Ray Orb, President of SARM “This will increase costs to all farm production, there’s no doubt about it.”
SARM continues to stress to the Federal Government that it is imperative to strike a balance between environmental stewardship and the economic well-being of Saskatchewan’s farmers. Agriculture is an energy-intensive industry, requiring fuel for machinery, transportation, and heating. The imposition of these carbon taxes directly increases the cost of these essential inputs, straining farmers’ profitability and jeopardizing the viability of their operations.
Moreover, they fail to consider the unique circumstances of Saskatchewan’s farming sector. The province experiences long and harsh winters, necessitating the use of heating systems to protect livestock and maintain optimal growing conditions in greenhouses and barns. This increased energy demand directly translates into higher carbon tax costs, creating an unfair disadvantage for farmers in Saskatchewan compared to those in regions with milder climates.
Saskatchewan relies on its ability to produce food and agricultural products efficiently and cost-effectively. Saskatchewan farmers have long been recognized for their ability to contribute to food security, and the clean fuel standards undermine their crucial role in feeding both local and global populations.
These carbon taxes continue to increase the production costs for farmers, putting them at a disadvantage. This threatens Saskatchewan’s agricultural exports and undermines the province’s economic growth and prosperity.
SARM strongly urges the federal government to reconsider imposing this next carbon tax.
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Background: SARM is the independent association that represents its membership of rural municipal government in Saskatchewan and is the principal advocate in representing them before senior governments.