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Ontario Stands up for Farmers by Opposing Job-Killing Federal Carbon Tax on Agriculture

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Ontario Stands up for Farmers by Opposing Job-Killing Federal Carbon Tax on Agriculture

Premier Ford Meets with Agriculture and Agri-Food Leaders

Office of the Premier

WOODSTOCK — Ontario's government is standing up for farmers and fighting the imposition of a job-killing federal carbon tax on the agricultural sector, which would increase the cost of food on tables across Ontario.

Premier Doug Ford, Ernie Hardeman, Minister of Agriculture, Food and Rural Affairs, and Rod Phillips, Minister of the Environment, Conservation and Parks, were at Veldale Farms today with farmers and agribusiness representatives. They discussed the impact of the disguised, unconstitutional carbon tax and restated the government's ongoing support for Ontario farmers and agri-food businesses.

"Ontario's farmers and agribusiness leaders have told us that a carbon tax will increase the cost of doing business, from heating fuels to transportation costs of shipping products to market. This not only hurts their businesses, but also negatively affects our economy," said Hardeman. "When costs go up, consumers often pay the price, and less money goes into the pockets of farmers and workers. That's why I am standing up for our farmers and agribusinesses — to protect the sector, our economy and Ontario jobs."

Stakeholders across the agri-food sector have raised concerns that the federal carbon tax will further reduce the competitiveness of Ontario's agribusinesses in the global marketplace. Many are also concerned about its economic impact and potential job losses as a result of increased costs, and feel that the federal carbon tax will not help the environment or reduce emissions.

"Our Environment Plan meets emissions targets without imposing a carbon tax on farmers or families, and serves as proof that you can both oppose a carbon tax and continue to do more to fight climate change, you don't have to choose," concluded Phillips. "Ontario deserves a healthy environment and a healthy economy."

The Made-in-Ontario Environment Plan considers our province's specific priorities, challenges and opportunities, and commits to reducing our emissions to 30 per cent below 2005 levels by 2030, a target that aligns with the federal government's Paris commitments, without imposing a carbon tax on students, patients, families and seniors. Through the efforts of individuals and industry, Ontario is already most of the way to this target, with the province's emissions down 22 per cent since 2005.

Today's event is part of a series of conversations underway across the province. Premier Ford and his ministers are travelling across Ontario to talk with families, small business owners and communities about how the federal carbon tax will make life more unaffordable, while putting the province's economy at risk. The Ontario government is committed to cutting red tape to help Ontario's economy grow. Fighting the federal carbon tax is an important step to keeping Ontario open for business and open for jobs.

Quick Facts

  • Starting January 1, 2019, the federal government’s Output-Based Pricing System came into force.
  • The federal carbon tax on fuels takes effect in April. It will cost a typical household $258 per year in 2019 and will rise to $648 by 2022.
  • There are no exemptions for fuel used to transport goods to market in a non-farm vehicle, making it more expensive for farmers to move their goods.
  • The greenhouse sector will be at a competitive disadvantage due to the 20 per cent of propane and natural gas not exempted from the tax.
  • Exemptions from the carbon tax are only proposed for large emitters regulated by the Output-Based Pricing System, which will exclude some food and beverage processing.
  • Including the additional HST cost, the federal carbon tax will increase the price of gasoline in Ontario by 5 cents per litre. This will rise to 7.5 cents in 2020, 10 cents in 2021 and 12.5 cents per litre in April 2022.
  • Including the additional HST cost, the federal carbon tax will increase the price of natural gas in Ontario by 4.4 cents per cubic metre. This increase will rise to 6.6 cents in 2020, 8.8 cents in 2021 and 11.1 cents per cubic metre in April 2022.
  • Including the additional HST cost, the federal carbon tax will increase the price of diesel by 6.1 cents per litre in 2019, rising to 15.2 cents by 2022.
  • Ontario is part of a coalition of provinces that pledged to fight the federal government’s unconstitutional carbon tax. Saskatchewan, New Brunswick and Manitoba have joined Ontario’s challenge to the federal government's Greenhouse Gas Pollution Pricing Act, which is an unconstitutional, disguised tax. Ontario’s case challenging the constitutionality of the federal carbon tax will be heard by the Court of Appeal from April 15 to 18, 2019.
  • In a survey of business owners in Ontario, Saskatchewan, Manitoba and New Brunswick, the Canadian Federation of Independent Business found that 87 per cent opposed this federal carbon tax plan.

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