On February 3, 2020, APAS released updated estimates on the financial impacts of the carbon tax to Saskatchewan producers.
APAS’s costing review takes into consideration all major farm expenses not currently exempt from the carbon tax. These include grain drying, rail transportation, heating and electricity, and truck hauling of crops off the farm.
The evidence is stark: on average, Saskatchewan farmers can expect to lose 8% of their total net income in 2020 to the carbon tax. For a household managing a 5,000-acre grain farm in Saskatchewan, this will take the form of a $8,000-10,000 bill.
In less than two years, when the carbon tax increases to $50/tonne in 2022, this bill will go up to $13,000-17,000 for the same household – the equivalent of a 12% decrease in net income.
For more information:
Press Release (February 3, 2020) - "Carbon costing review confirms huge loss to farm income"
Backgrounders - "Preliminary Costs of the Federal Carbon Backstop on Saskatchewan Agriculture" and "Estimated Impact of the Federal Carbon Backstop on Farm Net Income"