Federal Budget 2021 announced the government’s intention to return a portion of the proceeds from the price on pollution directly to farmers in backstop jurisdictions (currently Alberta, Saskatchewan, Manitoba, and Ontario), beginning in 2021-22. It is estimated farmers would receive $100 million in the first year.
Budget 2021 also proposes to ensure the recently expanded $165.5 million Agricultural Clean Technology program will prioritize $50 million for the purchase of more efficient grain dryers for farmers across Canada.
The budget also proposes to provide an additional $200 million over two years, starting in 2021-22, to launch immediate, on-farm climate action under the Agricultural Climate Solutions program. $60 million will be allocated over the next two years, from the Nature Smart Climate Solutions Fund to target the protection of existing wetlands and trees on farms, including through a reverse auction pilot program. $10 million will be allocated over the next two years, from the Agricultural Clean Technology Program toward powering farms with clean energy and moving off diesel.
To implement and administer the Clean Fuel Standard, Budget 2021 proposes to provide $67.2 million over seven years, starting in 2021-22, with $0.05 million in remaining amortization, to Environment and Climate Change Canada. This standard creates new economic opportunities for Canada’s biofuel producers, including farmers and foresters, who are part of the diverse supply chain for low-carbon fuels.
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