Farmers wait as bill on carbon pricing exemption remains with the Senate

Canadian farmers are expecting to pay more to heat their barns and dry crops after a bill that would have exempted natural gas and propane from aspects of the carbon pricing scheme remains in the Senate.

The House of Commons passed Bill C-234 in March, with the support of the opposition Conservatives, NDP, Bloc Quebecois and Green Party along with three Liberal members. 145 Liberals voted against the bill.

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The private member's bill would exempt farmers from paying the carbon price on natural gas and propane used for farming activities such as heating barns, drying grain, preparing feed and irrigation.

Farmers had already been exempt for gasoline and light fuel oil costs used in tractors and trailers.

However, the Senate is still reviewing Bill C-234, which did not pass before the start of the summer recess, leaving it unaddressed until the fall at least.

"It's definitely more money out of our pockets," Chuck Fossay, a farmer from Starbuck, Man. and president of the Manitoba Canola Growers Association, told CTV National News. "Makes us less competitive in the international market."

With thousands of farmers impacted, Fossay says some crops need to be dried in order to maintain their quality, particularly during a wet fall.

Those who live on the Prairies also know the importance of keeping their livestock buildings warm during the winter, which can reach lows of -30 or -40 C with the wind chill.

"And if you don't heat those buildings, those animals are going to suffer," Fossay said.

Jill Verwey, president of the Keystone Agricultural Producers of Manitoba, said the added cost puts Canadian farmers at a disadvantage when it comes to competing with other countries leaving "less dollars in our pocket to innovate, to get better, to improve environmentally, and sustainability on our farms."

"All producers, all individuals that are going to the grocery store know what's happening with ... what we're coming out of with increased food costs and the bottom line is that we need this (bill) passed to ensure that we remain competitive," Verwey told CTV National News.

Last month, the Senate referred Bill C-234 to its agriculture and finance committees.

Conservative Sen. David Wells said the bill could be delayed even further if it has to go back to the House for amendments, which is "too long" and "unfair" for farmers.

"They see the opportunity for this year slipping by," he told CTV National News. "And it's just a pure cost that cannot change their behaviour. They have no alternative."

With files from The Canadian Press

Editor's note: This article has been updated to clarify that three Liberals voted for Bill C-234, while 145 voted against it.