On May 15, The Quebec government announced plans on to offset the carbon costs associated with on-farm activities for more than 15,500 producers.
In a speech delivered via social media, Premier Christine Frechette indicated that farmers could expect to begin receiving reimbursements as early as this July. “This will be implemented automatically,” she said. “There is no action required, no paperwork to fill out,” she added.
The government has allocated an $87 million budget to La Financière Agricole du Québec (FADQ) to develop a program to automatically reimburse producers based on their 2024 and 2025 carbon-related expenses.
The measure acknowledges that agricultural businesses contend with high operating costs, particularly for fuel. The program objectives aim to not only reduce the financial burden on farmers, but to support the overall competitiveness of the sector across all types of production.
The Fédération de l’Union des Producteurs Agricoles (UPA) de la Montérégie was quick to welcome the government’s announcement, while applauding Frechette for swiftly acting to uphold a commitment made during her campaign to replace François Legault as leader of the Coalition Avenir Quebec and premier.
Referring to the announcement as “a significant step in the right direction,” the regional federation suggested the new program was a clear response to demands from the UPA and the agricultural community over the past year.
“The government has once again recognized that agricultural producers face a significant competitive disadvantage due to carbon pricing and that it must correct the situation. This is a positive signal for our sector, and we commend the premier’s willingness to act quickly,” said federation president Jérémie Letellier.
The financial package includes $41 million for 2024 expenses that will be reimbursed in 2026, as well as $46 million for costs incurred in 2025 that will come back to farmers in 2027. The amount granted to each business will be calculated based on the most recent fuel expenses reported as part of the FADQ’s AGRI programs. Eligible businesses must be registered with one of the FADQ’s AGRI programs and have reported fuel expenses to receive a refund.
The UPA is critical of the fact that costs related to natural gas will only be partially offset, and that only those producers enrolled in one of the AGRI programs are eligible. The union is also concerned that the program is temporary and limited to the next two years.
“The commitment made by the premier during the leadership race was clear: to fully and permanently reimburse the costs of the carbon tax borne by agricultural producers,” said Letellier, before noting the union will continue to press the government towards a long-term solution.
Support for young producers
Frechette also announced plans to increase support for the next generation of producers. “It is essential that we have a strong new generation of farmers in place, so we’re going to increase financial support for them by 30 per cent,” she said, referring to an $8.8 million investment to enhance the Programme d’Appui Financier à la Relève Agricole (PAFRA).
The program supports young farmers under the age of 40 who are starting a new farm, acquiring an existing business, or completing agricultural training. This increase will raise the maximum grant amount within the program, which had not been adjusted for inflation in over ten years, from $50,000 to $65,000.
“Farmers play a vital role: they feed the people of Quebec. To help them do what they do best, we must support them,” added Frechette, while suggesting the government is stepping up to protect its food autonomy by building a strong new generation of farmers who are trained to meet the challenges that lie ahead.
Frechette signalled that along with additional finding, the government will eliminate the distinction between full-time and part-time farmers. “There is now just one broad category that will bring everyone together: the next generation – period,” she explained.
“I’ve been involved with the FRAQ for ten years, and we’ve been asking for a revision of the program for even longer,” said dairy farmer David Beauvais, who is also the president of the Fédération de la Relève Agricole du Québec.
“The increase in the grant represents true recognition of the essential role of the next generation in the sustainability of our agriculture and, ultimately, our collective food supply,” added Beauvais, while commending the government’s announcement.
The FRAQ also highlighted how ending the distinction between farmers who work full-time or part-time on their farms better reflects the reality of many young producers. Full-time status was determined by the proportion of income derived from outside employment and the number of hours worked off the farm, which previously impacted the amount of available funding.
“As a young farmer who started out a few years ago, my part-time job is necessary and provides financial security, but that doesn’t mean I’m not fully committed to my business,” said bison producer Anouk Caron, who sits on the FRAQ board of directors.
According to the FRAQ, around half of the next generation of farmers currently work off the farm in addition to running their own businesses. “Eliminating this distinction is a significant step forward that will better meet our needs,” added Caron.