The Grower February 2021

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FEBRUARY 2021

CELEBRATING 142 YEARS AS CANADA’S PREMIER HORTICULTURAL PUBLICATION

THEGROWER.ORG

DECARBONIZING

Carbon taxes vs climate change: a hot potato for farmers

The cost of energy-intensive fertilizer is set to increase under a new carbon tax regime. A fertilizer delivery is captured in progress at the onion and carrot operations of Gwillimdale Farms, Bradford, Ontario. Photos by Glenn Lowson.

KAREN DAVIDSON Up, up and away. That’s the real-world trajectory of fertilizer prices, one of the most energy-intensive inputs in agriculture. Increases, current and proposed, to Canada’s carbon tax are set to have a seismic impact on fuel costs, reverberating with unintended, negative consequences on food production. “At the gas pumps in my hometown of Meaford, Ontario, gasoline went up $0.15/litre early in January 2021, when it was predicted to increase by only $0.05/litre due to the carbon tax,” reports Brian Gilroy, an Ontario apple grower and president of the Canadian Horticultural Council. “I have also heard from fertilizer

Short potato seed supplies Volume 71 Number 02

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suppliers that significant increases are anticipated and locking in pricing now is recommended.” That advice is confirmed by Spenser Greenfield, sales manager for Niagara Orchard and Vineyard Corporation. “Nitrogen supplies were brought in last fall at stable prices, but the big one will be phosphorus. That price will be going up significantly,” he says. It's a strange marketplace right now, with ocean freight rates going up and fewer boats on the water, adds Greenfield. Some growers may have pre-purchased fertilizer for some of the 2021 season. Refill prices will depend on your local supplier. As recently as early December 2020, the federal government announced that carbon taxes will increase to $170/tonne by 2030.

PG 8 $3.00 CDN

That’s a jump of $15/tonne every year, starting in 2023. Canadian horticulture is primed to lobby hard for exemption on all on-farm energy use, says Gilroy. “You have heard the statement that the carbon tax system as currently structured is a death by a thousand cuts for agriculture in Canada,” says Gilroy. “It has created greater competitive challenges for Canadian farmers in a global economy. We’re price takers. We can’t produce food for less than last year.” The case for exempting horticulture on energy use is complex. Not all growers are created equal when it comes to carbon reduction. Orchardists, by virtue of their perennial crops, are able to sequester carbon because they don’t disturb their soils. Potato growers, on the other hand,

The value of food is changing PG 13 @growernews

use annual tillage which stimulates the loss of organic carbon to the atmosphere as carbon dioxide. Consider the regional differences. Approximately 75 per cent of the grains and oilseeds grown on the prairies is planted under minimum or zero-till conditions points out Mitch Rezansoff, executive director of the Canadian Association of Agri-Retailers (CAAR). Practically speaking, the region is a carbon sink. In contrast, Ontario and Quebec vegetable crops, grown in abundance, need tillage so not surprisingly these commodities have an added hurdle when it comes to carbon offsets. Continued on page 3

Making decisions in COVID’s shadow PG 14


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