CN and CPKC Eliminate Carbon Tax Surcharges for Farmers

The elimination of carbon tax surcharges by CN and CPKC brings significant relief to Saskatchewan farmers, offering financial benefits and addressing long-standing concerns over railway fees. This is reported by the railway transport news portal Railway Supply.

The Agricultural Producers Association of Saskatchewan (APAS) has long advocated for the removal of carbon tax surcharges.

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This change, effective April 1, benefits farmers in Saskatchewan, Alberta, Manitoba, Ontario, and New Brunswick. The federal government’s removal of the fuel levy supports this positive development.

Impact of Carbon Tax Surcharges Removal on Saskatchewan Farmers

APAS President Bill Prybylski praised the move, noting that it would inject money directly into farmers’ pockets. “This is a huge boost, especially with current trade uncertainties,” he said. Between 2019 and 2024, Saskatchewan farmers faced approximately $200 million in carbon surcharges from the railways.

The removal of these surcharges is seen as a victory for farmers. “Axing the surcharges puts more cash where it belongs—into our rural communities,” Prybylski added. Farmers will now benefit from the elimination of the federal consumer carbon tax, ensuring their global competitiveness.

This change is especially critical as carbon surcharges were expected to cost Saskatchewan farmers an estimated $80 million in 2025 alone. The removal of these surcharges represents a major financial relief for the province’s agricultural sector.

APAS Urges Transparency in Carbon Pricing for Rail Freight

However, APAS remains cautious regarding the ongoing Low Carbon Fuel Standard (LCFS) in British Columbia. This regulation may increase shipping costs for grain transported by rail from Saskatchewan to BC ports, as it could raise fuel costs.

APAS has also advocated for full transparency regarding the federal Output-Based Pricing System (OBPS) and its impact on agricultural input costs.

Following the fuel levy’s removal, the organization seeks clarity on how continued provincial carbon pricing in British Columbia might affect rail freight costs for Saskatchewan producers.

“Understanding the implications of carbon pricing is essential for our farmers,” said Prybylski. “We need the federal government to ensure complete transparency on the OBPS and its impact on agriculture as climate policies evolve. It’s crucial to collaborate closely with agriculture to avoid unnecessary burdens on food producers.”

Source: farmnewsnow.com

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