Farmers need to file form to be exempt from fuel charge

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[UPDATED: Mar. 28, 2019] The federal carbon pollution pricing system will add a charge to fuel delivered within Ontario for use in air, marine, rail and road use. Farmers are exempt from this additional charge but must complete an exemption form available through the Canadian Revenue Agency.

The new program starts April 1, so farmers are encouraged to fill out the form soon, although there appears to be no deadline to complete the form.

The Ontario Federation of Agriculture, other farm organizations and fuel companies want farmers to be aware of the need to file the form.

The exemption is available to farmers if the fuel is delivered to a farm. The fuel must be exclusively used in the operation of eligible farm machinery and must be used in the course of eligible farming activities.

That requirement for on-farm delivery is also creating some concern for farmers and farm organizations, as some farms use a card lock at a local fuel depot to fill their equipment.

The Greenhouse Gas Pollution Pricing Act established a federal standard that aims to reduce carbon pollution in provinces where carbon pollution pricing systems don’t exist. With the provincial Conservative government’s cancellation of Ontario’s cap and trade system for carbon pricing, farmers here will fall under the federal rules.

Exemption forms are available on the Canadian Revenue Agency website. Producers must provide a copy to their fuel distributor and should keep a copy for their own records. Search for “fuel charge exemption certificate for farmers” in a search engine in order to find the form.