The Canadian Federation of Agriculture (CFA) was pleased to see the Prime Minister’s recent announcement to set the consumer carbon price to zero after March 31st, 2025, providing much-needed relief for Canadian farmers.

“Farmers are being squeezed from seemingly all sides at once with inflation and tariffs from both the US and China. The long-awaited removal of the carbon tax will provide farmers a bit of relief from this pressure and can be seen as recognition for the difficult place Canadian farmers and consumers find themselves in today,” said Keith Currie, CFA President.

For years CFA has been pushing the government to allow for exemptions to the carbon tax for farmers to help improve competitiveness and increase farm financial sustainability. Based on estimates in 2023 from the Parliamentary Budget Office, farmers would save over $100 million a year with the removal of the consumer carbon tax.

“The signing of this order-in-council is a reassuring step in the right direction, but we need to see Parliament reconvene and provide a long-term solution that removes the consumer carbon price from legislation and ensures farms of all sizes are exempt from the carbon price. We look forward to continuing to work with the Government of Canada to ensure future environmental policies enable long-term sustainable productivity growth and the competitiveness of Canadian agriculture,” added Currie.