CFA’s submission outlines how industrial carbon pricing policies should be designed to reflect the realities of agricultural production while supporting Canada’s climate objectives. Although primary agriculture is not a major direct industrial emitter, farmers are indirectly affected by industrial carbon pricing through higher input costs such as fuel, fertilizer, machinery, and crop protection products. Given tight farm margins and global competition, it’s very important to avoid unintended financial burdens on producers to safeguard food security and rural economic viability.
CFA recommends that industrial carbon pricing focus on high-emission sectors where mitigation potential is greatest, include safeguards to address competitiveness and carbon leakage, minimize administrative burden, and ensure ongoing engagement with agricultural stakeholders.
CFA called for a balanced approach that enables farmers to contribute to climate action without undermining the sustainability and resilience of Canada’s agriculture and agri-food sector.