Province raises concerns over clean fuel standards; offers $9.5M in ag funding

Like farmers in the province and the Saskatchewan Association of Rural Municipalities (SARM), the Government of Saskatchewan sees problems with the clean fuel standards set to take effect across the country on Saturday.

“We’re concerned about it; we are,” Agriculture Minister David Marit said Thursday in Saskatoon.

Of particular concern, the minister noted, is the cost and potential impact to Saskatchewan farmers.

That’s why Marit said these standards — along with other issues impacting the agriculture industry, like the carbon tax — will be discussed at the upcoming first ministers’ conference.

The meeting will involve Prime Minister Justin Trudeau along with provincial and territorial leaders.

While Marit is unsure any changes will be made to the new standards, he reiterated the province’s concerns and noted expectations that other provinces likely have similar reservations.

The clean fuel standards, which are meant to reduce greenhouse gas emissions in fuel production and importation, are expected to add 17 cents to the price of a litre of fuel, along with the 37-cent increase that will be added through the federal carbon tax by 2030.

In a statement Thursday, SARM said the big jumps in fuel prices will directly affect the bottom line of farmers in the province.

“We see this very much as a Carbon Tax 2.0,” SARM president Ray Orb said in the statement. “This will increase costs to all farm production, there’s no doubt about it.”

Province provides funding commitment

Saskatchewan is continuing its relationship with a big player in the agriculture biotechnology sector with a new funding commitment.

Marit made the announcement, provided under the federal-provincial-territorial Sustainable Canadian Agricultural Partnership, on Thursday in Saskatoon.

After 10 years of providing funding for Ag-West Bio, Marit announced a new $9.5-million commitment over the next five years.

“We feel it’s really important for AgWest Bio to continue the work they do, where they really put scientists together with the commercializing and also the investment side,” Marit said.

He also talked about the opportunity to collaborate and work with research — and the province’s financial commitment to research efforts — which can attract more “bright young minds” to the province.

Marit called that another goal of the government.

The funding investment also helps Saskatchewan’s growth strategy to 2030, where Marit said the province wants to see receipts and value-added increase, alongside growth to 45,000,000 metric tonnes.

“Obviously you need science and innovation to get there,” he said.

Marit could not offer specifics about what Ag-West Bio will use the funding for, but said he leaves that to the expertise of the company’s board.

“The companies around the world are really looking at what we’re doing. They want to see how we’re growing high-quality, sustainable food in a sustainable manner,” he said, adding that Saskatchewan farmers and ranchers are the first to adapt to new and innovative technologies.