Farm fuel exclusion sought by UPA from carbon market
Farmers Urge Quebec Government to Exempt Agricultural Fuels from Carbon Market
The plea's been made - and it's not the first time - the Union des producteurs agricoles (UPA) is pushing for the Legault government to exclude farm-used fuels from Quebec's carbon market. Fuel costs are adding up, and farmers argue it's an unjust burden.
On a chilly morning in Saint-Jean-sur-Richelieu, around a hundred farmers gathered to support the UPA's Montérégie region's request. This call is backed by the national federation and is rooted in an "injustice" that needs to cease immediately.
"Competitiveness" was the topic on Martin Caron's lips, the UPA's general president. He pointed out that their competitors outside Quebec don't have to bear these costs, while they do. The agricultural union estimates an annual burden of over 80 million dollars, which equates to 0.6% of the total earnings of its members.
The agricultural sector in Quebec is currently excluded from the cap-and-trade system or carbon market (SPEDE). The greenhouse gas emissions from animal digestion, manure management, and soil management - which account for 10% of Quebec's GHG balance - are free for producers. However, farmers are indirectly subject to SPEDE by having to buy the fuels mentioned above. Currently, SPEDE rights correspond to around 10 cents per liter of gasoline.
A farmer producing eggs, David Phaneuf, shared his financial struggle, stating that the carbon market costs him $25,000 each year - money that could be used to reduce the carbon footprint of his business or to improve the economy. "Received benefits for farmers elsewhere in Canada are of little comfort, as the federal carbon tax on fuels was eliminated on April 1, 2023," he said.
The plight of organic producers like Hélène Campbell is more profound, as they rely on tractors for weed control due to their absence of pesticides.
The agricultural sector is well aware of the urgency of the climate crisis, but they argue that the current SPEDE model doesn't work. They are struggling to find realistic and affordable alternatives to reduce their fuel consumption.
Carbon Tax Elsewhere in Canada
Away from Quebec, the federal carbon tax on fuels ended on April 1, but farmers in other regions have traditionally been granted refunds on tractor and combine diesel and a tax credit. However, these benefits have little impact on Quebec's farmers. According to carbon pricing specialist Charles Séguin, a "justice gap" exists between Quebec and the rest of Canada, but it's a gap that's been around for years.
Mr. Séguin emphasized that the arguments of Quebec farmers do not prove that the SPEDE doesn't meet its targets. He believes that the market puts effective pressure on the most difficult sectors to decarbonize, and the agricultural sector will need to innovate or change production, perhaps by moving towards market gardening.
Proponents of the UPA's demands argue that agricultural enterprises benefit least from the revenues generated by the SPEDE, contributing nearly 500 million dollars since 2015 yet receiving little in return.
As the atmosphere tilts colder, the press attaché of the Ministry of the Environment stated that they've "taken note" of the UPA's request and reminded farmers of several programs funded by the SPEDE aimed at the agricultural sector. The next update to their Green Economy Plan is expected soon.
- The Union des producteurs agricoles (UPA) in Quebec is urging the Legault government to exempt agricultural fuels from the carbon market, citing an annual burden of over 80 million dollars for farmers.
- Kamala, a farmer producing eggs, shares her financial struggle, stating that the carbon market costs her $25,000 each year, which could be used to reduce her business' carbon footprint or improve the economy.
- Organic producer Hélène Campbell's plight is more profound, as she relies on tractors for weed control and is not eligible for carbon tax refunds or credits, unlike farmers in other regions of Canada.
- Proponents of the UPA's demands argue that agricultural enterprises in Quebec contribute nearly 500 million dollars since 2015 to the revenues generated by the carbon market, yet receive little in return, leading to a perceived 'justice gap' between Quebec and the rest of Canada.
