Carbon tax economic realities could dampen the provincial government’s late summer harvest of upbeat agriculture industry news.
Recent numbers show 2015 sales of food grown in B.C. totalled $13 billion, 7% higher than in 2014 and 24% more than in 2010.
Early last week, the province’s Ministry of Agriculture also reported that B.C. businesses sold a record $3.5 billion in food products outside of Canada in 2015. According to the ministry and Agri-Food Canada, that’s close to 20% more than in 2014. Hoping to build on that growth, the provincial and federal governments have produced an Export Ready Business Catalogue to promote B.C. food and beverage sales online and at trade offices and shows. It’s an admirable initiative to leverage the international demand for B.C. food. In countries where similar attention to detail and quality is absent, the integrity B.C. farmers, ranchers and growers invest in cultivating their produce and livestock has a steadily appreciating value.
However, B.C.’s food industry faces numerous challenges. Newest among them is the carbon tax. As pointed out in a recent opinion piece co-written by Todd MacKay, Prairie director for the Canadian Taxpayers Federation, and Robin Speer, executive director for the Western Canadian Wheat Growers Association, the tax has significant financial consequences for farmers. B.C.’s carbon tax on diesel, they estimate, adds $89 per combine harvester fill-up to farmers’ bills. That gets expensive during harvest time. It also erodes market share for B.C. farmers competing with their counterparts in the United States and other jurisdictions that don’t have carbon taxes.
B.C.’s carbon tax has been successful in applying a price to carbon emissions. That’s worthy of applause. Carbon tax advocates have criticized the provincial government for failing to raise it above its current $30 per tonne rate, but it will be farmers and other businesses that will be dealing with its economic realities while politicians and activists reap the rewards of touting its theoretical environmental benefits.
