carbon tax

Sarah Rennie – LJI reporter

The Fédération de l’UPA de la Montérégie has launched a campaign against the province’s carbon trading system, saying the policy is hurting the agricultural sector. Dozens of producers gathered in Saint-Jean-sur-Richelieu on May 1 to denounce the government’s current cap-and-trade emissions pricing system, the Système de Plafonnement et d’Échange des Droits d’Émission, which is commonly referred to as SPEDE.

Quebec is now the only province to tax carbon following the federal government’s recent decision to remove the consumer carbon price. The system is designed to reduce the province’s carbon footprint by requiring that large emitters such as fossil fuel distributors pay to pollute; however, this cost is often transferred directly to consumers at the time of sale.

“If all provinces and economic sectors participated fairly in this effort, this system would have real potential to change our practices in a structured and sustainable way, but this is not the case,” said Jérémy Letellier, president of the Montérégie UPA. He argued that as no viable alternatives exist to replace fossil fuels within the agriculture sector, the SPEDE unfairly penalizes producers who are already facing a very difficult economic situation.

The UPA acknowledged the greenhouse gas cap and trade system is not exactly a tax, and as a result it may be more difficult for the government to dismantle. “It is time to recognize that despite its administrative and legal complexity, the damage it causes fully justifies a serious review – or even the complete withdrawal of the system as it is currently being applied,” said Letellier.

“We are not asking for a free pass. We are just asking that our realities be taken into account,” added Letellier, noting the farming community is aware of the climate emergency. “We are already seeing the effects of climate change on our crops, our working conditions, and our livelihoods,” he continued, insisting that farmers have been at the forefront for years in searching for solutions to reduce the sector’s carbon footprint.

Quebec farmers are technically exempt from the provincial cap-and-trade system; however, they contribute to the Fonds d’Électrification et de Changements Climatiques in the form of costs billed by fossil fuel distributors. Sylvain Pilon, the president of the Producteurs de Grains du Québec, pointed out that over the last decade producers have contributed over $480 million to the electrification and climate change fund, which is fed by the money collected through SPEDE.

“We are not opposed to the idea of reducing greenhouse gas emissions. But for the system to work, it must be fair, consistent, effective, and equitable. It is not up to our farms to pay for a system that does not work,” said David Phaneuf, an administrator representing the Producteurs d’Oeufs d’Incubation with the Federation. He estimated he loses around $25,000 per year in direct costs for propane, natural gas, and fuel to run his farm. He suggested the the average chicken farm pays around $4,150 to the electrification and climate change fund.

Phaneuf argued that farmers are always being challenged to become more competitive. “I feel like the coach is telling me to go out and play, but to leave my stick in the locker room,” he explained, saying these transferred costs represent net losses that are not recoverable.

Haut-Saint-Laurent producer Alain Primeau, who was present for the campaign launch, said the situation has reached a point where it no longer makes any sense. “We are being charged for fuels that are essential in agriculture. It prevents us from being more competitive, more efficient, and we can’t invest,” he explained, noting the additional charges cost him around $5,000 per year. “Even though we respect the environment, it is a roadblock,” he stated.

The UPA’s general president, Martin Caron, pointed out that while Quebec farmers are leaders in terms of their environmental efforts, they are shouldering too much. “Now, this injustice, where we pay these additional costs while not being able to pass them on, must stop. And it can’t stop in six months or a year. It has to stop now!” he exclaimed.