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RealAg LIVE! with Todd Lewis and Marla Orenstein on what’s next for the carbon tax

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The federal authorities has the proper to impose a nationwide value on air pollution, says the Supreme Courtroom of Canada. Which means the authorities can set the normal by which the provinces ship carbon pricing.

A number of provinces and producer teams disagreed with the carbon pricing scheme — and nonetheless do, in precept — however with this ruling should transfer ahead with the carbon tax as a actuality. What occurs now?

To delve in to that, RealAg LIVE! host Shaun Haney is joined by Todd Lewis, of Agricultural Producers Affiliation of Saskatchewan, and Marla Orenstein, with the Canada West Basis.

Take a look at a brand new RealAg LIVE! Q&A each weekday at 3 pm E on our social media livestream!

  • Supreme Courtroom ruling on proper to a carbon tax: was it a shock? No
  • Marla wasn’t, however was shocked by a few of the robust opinions and the why
  • Todd knew it was an uphill battle
  • It wasn’t about is it the proper strategy or the finest strategy, it was about does the authorities has the RIGHT to impose a carbon tax
  • Gives certainty to that that is going to occur. So, now, we are able to make decisions based mostly on it being a actuality
  • Is the federal authorities utilizing it as a proof of idea? In fact they do
  • How does a farm group pivot now? Todd: carbon credit, how will we deal with carbon sequestration (retro energetic?), even when it is going to be troublesome
  • Just like well being care, there’s a minimal degree of “service”
  • Every province is probably going going to finish up doing its personal factor — to a sure system
  • Feds are accumulating and returning to individuals in the provinces the place they don’t have their very own system in place
  • Is ten or 12 completely different applications actually the finest thought? It’s what we’re going to have
  • Rebates and exemptions: Todd prefers exemptions to rebates
  • What’s the reasoning for rebates vs. exemptions? Lots goes into it
  • The significance of the ag sector has been bolstered to the public
  • Does all this influence investments into completely different industries? Do funds stream in?
  • Nicely, oil and gasoline industries get to move prices on, farmers don’t, Todd says
  • The buyer goes to pay on finish merchandise, and processors can pay on
  • It turns into a contest issue on commerce, too
  • That is the place carbon tariffs are available in…oh boy
  • Canada could find yourself in a great spot with the U.S. on this, nonetheless
  • Questions! Carbon Alliance, does APAS preserve going? Sure, strikes ahead.
  • Direct to client payouts …how does this alteration your behaviour? You’re in control of your individual margin
  • The payout occurs regardless, so how a lot you spend on gas, and so on., eats into that, Marla says
  • Agriculture is a part of the answer, not the downside
  • And spending cash to pay the tax eats in to cash you possibly can use to enhance effectivity
  • There are alternatives for partial wins for ag: biofuels (gasoline and diesel), offsets, renewable diesel

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