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Manitoba Grain Growers Seeking Relief from Grain Drying Carbon Tax

Manitoba’s grain growers are seeking financial relief after multiple groups conclude they are paying significant carbon taxes related to drying grain.

Keystone Agricultural Producers (KAP) found that over the course of the most recent harvest season, Manitoba’s grain farmers paid an average of $3.69 per acre in carbon taxes including propane and natural gas on grain drying (mostly corn).

The Manitoba Corn Growers Association, the largest farm policy organization in the province with 4,000 members, said that this tax not only hits farmers’ profitability, but also weakens Canada’s competitiveness on the world market, comparing these costs to those paid by grain farmers in the Northern U.S., who do not pay a carbon tax and who shoulder lower drying costs. This leads to U.S. corn coming into Manitoba at a lower price than domestically grown corn.

As a result, the farmers of the province are calling for an exemption under the established carbon tax for all costs related to drying grain, along with an exemption for the costs of heating barns and farm buildings.

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