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Agriculture

While Europeans Vacation, Denmark Attacks Livestock Farmers With Cow Tax

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7 minute read

From Heartland Daily News

By Andrew Weiss

Economics aside, this policy will have no effect on global temperatures. Even if the entire European Union halted all emissions (including livestock) the global temperatures would be reduced by only 0.12 degrees Celsius by the year 2100, assuming the highest climate sensitivity to carbon.

As Europeans generate greenhouse gas emissions by driving or flying off on their long summer holidays, Denmark is trying to lower those emissions by taxing cow burps and flatulence to combat climate change.

The Danish government believes that taxing methane produced by animals will improve the lives of citizens by lowering global temperatures. Therefore, beginning in 2030, livestock farmers will be taxed $17 per ton of carbon dioxide-equivalent emitted by their livestock. That tax will increase to $43 by 2035.

The average cow emits the CO2 equivalent of about three tons per year in methane, so each cow will cost farmers $50 in 2030, reaching about $125 by 2035.

Other livestock such as sheep and pigs are also subject to the methane tax, but they emit less methane because of differences in the chemistry of their digestive systems.

But two professors—William A. van Wijngaarden of York University in Canada and William Happer of Princeton University—argue that restrictions on methane emissions are “not justified by facts.”

CO2 currently makes up about 420 ppm (parts per million), which is 0.042% of the atmosphere. Methane is a much lower 1.9 ppm, or about 0.0002% of the atmosphere.

Methane is increasing in the atmosphere at a rate of about 0.0076 ppm per year, while CO2 is increasing at a rate 300 times faster, or 2.3 ppm a year.

The methane molecule is about 30 times better at trapping heat than the carbon dioxide molecule. Therefore, methane contributes about one-tenth the warming of CO2.

Effect on the Economy

Denmark’s new animal tax will raise food prices. Prices for beef and milk will go up, percolating throughout the nation’s economy. Denmark’s economy contracted 1.8% last quarter and the inflation rate is 2.1%, but expect to see inflation increase with the new animal tax. The tax will disproportionately affect middle-income earners and the poor.

At the same time, farmers will see smaller profit margins. Some farmers will reduce their numbers of cows and shift to other animals or grain. Others might sell their farms and change occupations.

In America, the majority of beef farms are run by small operations. According to the U.S. Department of Agriculture, 54% of farms with beef cattle had fewer than 20 cows. On such a farm, raising a cow costs about $900 per year.

A U.S. methane tax identical to Denmark’s would be the same as an additional 15% tax on cattle. This would be devastating to small ranchers who are already pinched by increased overhead costs.

The Danish policy taxes carbon at $43 per ton. This so-called social cost of carbon is priced even higher here in America, and is an easily manipulated price tag that the government puts on carbon emissions.

Last fall, the U.S. Environmental Protection Agency proposed $190 per ton as the social cost of carbon to make its policies seem worth the regulatory burden. If taxed at this price level, a 20-cow operation would owe Uncle Sam an additional $11,000 per year.

Effect on Carbon Emissions

All 1.5 million cows in Denmark account for about 0.1% of the European Union’s annual 3.6 billion tons of greenhouse emissions.

The chart below compares greenhouse gas emissions by Danish cattle to emissions in all of Denmark and in the entire European Union.

When it comes to the atmospheric concentration of carbon dioxide, CO2 emitted in Denmark is no different than CO2 emitted anywhere else in the world.

If Danish lawmakers are concerned about CO2-caused climate change, the cost of the tax policy needs to be weighed against the global effect on emissions.

In 2022, India emitted 189 million metric tons more than it did in 2021. This is more than four times the entire carbon footprint of Denmark.

Effect on Global Climate

Economics aside, this policy will have no effect on global temperatures. Even if the entire European Union halted all emissions (including livestock) the global temperatures would be reduced by only 0.12 degrees Celsius by the year 2100, assuming the highest climate sensitivity to carbon.

These numbers are calculated using The Heritage Foundation’s climate calculator, which uses a government climate model. (You can use the calculator for yourself here.)

From Denmark to California

Although such policies may seem unlikely to take hold in freedom-loving America, similarly intrusive regulations already have been implemented across multiple sectors. These regulations affect everything in the U.S. from large-scale power plants and the automotive industry to everyday household items such as gas stoves, water heaters, and lawn equipment.

In some states, including New York and California, building codes now prohibit gas hookups in many new construction projects, denying residents the right to decide for themselves what energy sources to use.

As of Jan. 1, it became illegal to buy gas-powered lawn equipment such as lawnmowers, leaf blowers, or chainsaws in California. This law will cost landscaping businesses over $1 billion and raise the price of landscaping services, causing some to lose their jobs and business closures.

It is time to stop perpetuating the fairy tale that taxing cow burps will reduce global temperatures. Such regulations only increase food costs and inflation in general, making poverty even worse.

Andrew Weiss is a research assistant for domestic policy at The Heritage Foundation.

Originally published by The Daily Signal. Republished with permission.

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Agriculture

Ottawa may soon pass ‘supply management’ law to effectively maintain inflated dairy prices

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From the Fraser Institute

By Jerome Gessaroli

Many Canadians today face an unsettling reality. While Canada has long been known as a land of plenty, rising living costs and food insecurity are becoming increasingly common concerns. And a piece of federal legislation—which may soon become law—threatens to make the situation even worse.

According to Statistics Canada, rising prices are now “greatly affecting” nearly half of Canadians who are subsequently struggling to cover basic living costs. Even more alarming, 53 per cent are worried about feeding their families. For policymakers, few national priorities are more pressing than the ability of Canadians to feed themselves.

Between 2020 and 2023, food prices surged by 24 per cent, outpacing the overall inflation rate of 15 per cent. Over the past year, more than one million people visited Ontario food banks—a 25 per cent increase from the previous year.

Amid this crisis, a recent academic report highlighted an unforgivable waste. Since 2012, Canada’s dairy system has discarded 6.8 billion litres of milk—worth about $15 billion. This is not just mismanagement, it’s a policy failure. And inexcusably, the federal government knows how to address rising prices on key food staples but instead turns a blind eye.

Canada’s dairy sector operates under a “supply management” system that controls production through quotas and restricts imports via tariffs. Marketing boards work within this system to manage distribution and set the prices farmers receive. Together, these mechanisms effectively limit competition from both domestic and foreign producers.

This rigid regulated system suppresses competition and efficiency—both are essential for lower prices. Hardest hit are low-income Canadians as they spend a greater share of their income on essentials such as groceries. One estimate ranks Canada as having the sixth-highest milk prices worldwide.

The price gap between the United States and Canada for one litre of milk is around C$1.57. A simple calculation shows that if we could reduce the price gap by half, to $0.79, Canadians would save nearly $1.9 billion annually. And eliminating the price gap would save a family of four $360 a year. There would be further savings if the government also liberalized markets for other dairy products such as cheese, butter and yogurt. These lower costs would make a real difference for millions of Canadians.

Which brings us back to the legislation pending on Parliament Hill. Instead of addressing the high food costs, Ottawa is moving in the opposite direction. Bill C-282, sponsored by the Bloc Quebecois, has passed the House of Commons and is now before the Senate. If enacted, it would stop Canadian trade negotiators from letting other countries sell more supply-managed products in Canada as part of any future trade deal, effectively increasing protection for Canadian industries and creating another legal barrier to reform. While the governing Liberals hold ultimate responsibility for this bill, all parties to some degree support it.

Supply management is already causing trade friction. The U.S. and New Zealand have filed disputes (under the Canada-United States-Mexico Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership) accusing Canada of failing to meet its commitments on dairy products. If Canada is found in violation, it could face tariffs or other trade restrictions in unrelated sectors. Dairy was also a sticking point in negotiations with the United Kingdom, leading the British to suspend talks on a free trade deal. The costs of defending supply management could ripple farther than agriculture, hurting other Canadian businesses and driving up consumer costs.

Dairy farmers, of course, have invested heavily in the system, and change could be financially painful. Industry groups including the Dairy Farmers of Canada carry significant political influence, especially in Ontario and Quebec, making it politically costly for any party to propose reforms. The concerns of farmers are valid and must be addressed—but they should not stand in the way of opening up these heavily regulated agricultural sectors. With reasonable financial assistance, a gradual transition could ease the burden. After all, New Zealand, with just 5 million people, managed to deregulate its dairy sector and now exports 95 per cent of its milk to 130 countries. There’s no reason Canada could not do something similar.

Bill C-282 is a flawed piece of legislation. Supply management already hurts the most vulnerable Canadians and is the root cause of two trade disputes that threaten harm to other Canadian industries. If passed, this law will further tie the government’s hands in negotiating future free trade agreements. So, who benefits from it? Certainly not Canadians struggling with food insecurity. The government’s refusal to modernize an outdated inefficient system forces Canadians to pay more for basic food staples. If we continue down this path, the economic damage could spread to other sectors, leaving Canadians to bear an ever-increasing financial burden.

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Agriculture

2024 harvest wrap-up: Minister Sigurdson

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As the 2024 growing season comes to a close, Minister of Agriculture and Irrigation RJ Sigurdson issued the following statement:

“While many Albertans were enjoying beautiful fall days with above-average temperatures, farmers were working around the clock to get crops off their fields before the weather turned. I commend their continued dedication to growing quality crops, putting food on tables across the province and around the world.

“Favourable weather conditions in August and early September allowed for a rapid start to harvest, leading to quick and efficient completion.

“The final yield estimates show that while the South, North West and Peace regions were slightly above average, the yields in the Central and North East regions were below average.

“Crop quality for oats and dry peas is currently exceeding the five-year average, with a higher rate of these crops grading in the top two grade categories. In contrast, spring wheat, durum, barley and canola are all grading in the top two grades at rates lower than the five-year average.

“Crop grading is a process that determines the quality of a grain crop based on visual inspection and instrument analysis. Factors like frost damage, colour, moisture content and sprouting all impact grade and affect how the grain will perform during processing or how the end product will turn out. Alberta generally produces high-quality crops.

“Farmers faced many challenges over the last few years and, for some areas of the province, 2024 was a difficult growing season. But Alberta producers are innovative and resilient. They work constantly to meet challenges head-on and drive sustainable growth in our agricultural sector.

“Alberta farmers help feed the world, and I’m proud of the reputation for safe, high-quality agricultural products that this industry has built for itself. Thank you to our producers, and congratulations on another successful harvest!”

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