14Canada’s Agriculture Day Celebrates Nation’s Trusted Food System

FEBRUARY 23, 2021 - CELEBRATING CANADA’S AGRICULTURE DAY

A CHANCE TO REFLECT ON THE IMPORTANCE OF CANADIAN AGRICULTURE AND

GOOD GOVERNMENT POLICY TOO. By Virginia Labbie

This year, Canada’s Agriculture Day is set for February 23rd. Canada’s Agriculture Day was the brainchild of Ag More than Ever and was initiated as a way to celebrate agriculture and foster a closer connection between consumers and those in the farming and food sectors.

A lot has changed since last year’s Agriculture Day and I can’t think of a better time than now to celebrate the important contributions of those who work in Canadian agriculture. We all know the challenges that COVID-19 created for everyone in the supply chain. 2020 was difficult for many in the agriculture sector and shone a light on our food supply system. Remarkably, our food supply chain adapted fairly well during this very difficult time and Canadian consumers have recognized the importance of our safe and reliable food system. After the year we’ve had, who is not ready for some positive news and to celebrate the importance of our farmers and food producers? I can’t tell you how proud I am to work in the agriculture industry and advocate on behalf of our agri-business members for the Canadian Federation of Independent Business (CFIB). I have been amazed at the stories of how many of our agriculture members have persevered through this unprecedented global pandemic.

The challenge is that things are not back to normal quite yet and the reality is that many small businesses across Canada are struggling to survive. It is hard not to forget that due to public health restrictions, many of our restaurant and hospitality businesses are contemplating permanent closure or are struggling to keep their doors open. According to CFIB’s latest dashboard for the hospitality sector, only 11 per cent of small businesses are fully open, 10 per cent are fully staffed and only 9 per cent are making normal sales.

These are important parts of our food industry and a reminder that there is much more work to be done to get our economy back on track.

The good news is that agriculture can play a key role in Canada’s economic recovery, but the right policy environment must be in place so the industry can perform to its potential.

Interestingly enough, Canada’s Agriculture Day currently coincides with the next reading of a Private Members’ Bill C-206, An Act to amend the Greenhouse Gas Pollution Pricing Act (qualifying farming fuel). As you probably know, the federal government recently announced that the federal carbon tax is scheduled to rise to $170 per tonne by 2030- an increase of more than 467 per cent in 10 years.

Last year, CFIB surveyed our farm members and on average, farmers estimated they paid almost $14,000 in federal carbon taxes in the first year it applied to them (April 1st, 2019 to March 31, 2020). Can you imagine what their costs will balloon to in 2030?

Dr. Sylvain Charlebois, Professor in Food Distribution and Policy at Dalhousie University recently penned a column and said “For some farmers, a tax of $170 per tonne is a game-changer. By 2030, a typical 5,000-acre farm would have to shell out more than $150,000 in new tax, based on some estimates, without any compensation. That’s enough to compromise any farm’s ability to make a profit.”

These are eye-popping figures and ones that should be a wake-up call for all Canadians. How will farmers survive with these massive costs coming right out of their bottom line? CFIB farm members have told us they can not pass these additional costs on to their customers. We know farmers care about the environment – their livelihood depends on it. However, given most farmers are price takers, the magnitude of these increases in federal carbon taxes will hamstring farmers’ ability to compete and invest in their business and new technology.

The good news is that Bill C-206 aims to provide carbon tax relief for farmers and would extend the exemption for qualifying farming fuel to include natural gas and propane from the federal carbon tax (e.g. fuels used for drying grain and heating on farms). Some exemptions already apply to greenhouses, so fully exempting all farms just makes sense. CFIB views this bill as a positive first step in addressing the unfairness of the federal carbon tax on farmers.

February 23rd is a wonderful opportunity to celebrate the men and women who work in the agriculture sector. It is also an opportunity for Members of Parliament of all political stripes to help farmers and protect Canada’s food supply by passing Bill C-206.

SO ON THIS CANADA’S AGRICULTURE DAY, DO WHAT YOU CAN TO HELP OUT!

• Raise a fork to the food we love and the people who produce it- visit Ag More Than Ever https:// agriculturemorethanever.ca/cdn-ag-day/

• Do what you can to shop local and support a small business or restaurant – they need our help now more than ever! Visit www. smallbusinesseveryday.ca for more info.

• Get involved in CFIB’s campaign to support Bill C-206 and Sign our new online Petition “Help defend farmers & protect our food supply. Expand carbon tax exemptions for farmers!” Feel free to share the online petition with other farmers.

Virginia Labbie is the Senior Policy Analyst, Agri-business for the Canadian Federation of Independent Business (CFIB). CFIB has 110,000 small and medium-sized member businesses (7,200 agri-business members) across Canada. To find out more about how to support local business go to www.smallbusinesseveryday.ca.