The Agricultural Producers Association of Saskatchewan (APAS) estimates the cost of producing wheat could go up to over $12.50 an acre in 2030—if planned increases to the carbon tax proceed.

The federal government announced last month that after 2022, the carbon tax would rise by $15 a tonne annually until it reaches $170 a tonne in 2030.

The APAS estimates were calculated using key indirect costs not exempt from carbon taxation, such as rail and road transportation, electricity and grain drying.

“This cost increase is carried entirely by farmers and can’t be passed along to our customers,” said Todd Lewis, APAS president. “We’re looking at a reduction of net farm income by hundreds of millions of dollars in Saskatchewan along, and the modest rebates provided by the federal government won’t make up for these losses.”

You can check out the initial calculations for wheat here. APAS plans to develop cost estimates for other crop and livestock commodities over the coming months as part of a concerted effort to obtain further exemptions and other forms of financial relief from the additional carbon tax costs.

(CJWW)