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Alberta

Saskatchewan entrepreneur says government thwarted his ag-plastics recycling business

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7 minute read

Dallon Leger thought he was part of the solution. 

The entrepreneur from Yorkton, Sask., about 190 kilometres northeast of Regina, says he collected more than 1.8 million kilograms of used grain bags over the past few years, helping his neighbours deal with their mounting plastic problem.

Leger’s business, EcoGenX, transported the grain bags to a company in the United States that would recycle them. The company would turn the bags into various agricultural plastic products, including new grain bags. EcoGenX would then sell the recycled product in Saskatchewan.

But he says the Saskatchewan government has stifled his business through rules he believes are unfair.

The province recently took Leger to court and won, fining him for not following the province’s grain bag regulations. It effectively forced him to close his business.

“I’m not perfect, no entrepreneur is, but my government was my biggest hurdle,” said Leger, a farm worker, in an interview earlier this month. “That should never have happened, not when climate change and environment as a whole is the hot topic right now.”

Leger pleaded guilty in late April for failing to comply with the government’s Agricultural Packaging Waste Stewardship Regulations, therefore violating a section of Saskatchewan’s Environment and Management Protection Act. 

Court determined he did not operate a product stewardship program that was approved by the environment minister. He was fined $580 and must pay $10,604 to Cleanfarms, a regulated non-profit that also collects grain bags in the province.

Leger explained his lawyer advised him to plead guilty because it wouldn’t have been a winning fight. 

However, he said the province’s position is still not right.

“How can you charge me under the environmental act, find me guilty of anything, when I did no harm to the environment? That says a lot,” he said. “I felt I did something good.”

The Saskatchewan government regulates the industry, requiring grain bag sellers to participate in an approved product stewardship program.

EcoGenX didn’t operate under an approved program.

Environment Minister Dana Skoropad said the legislation is meant to ensure agricultural plastics recycling is sustainable in Saskatchewan. 

“The community of sellers of these products is quite small in Saskatchewan, so it’s certainly important that all first sellers be compliant with the regulations and a level playing field be existent,” Skoropad said. “And that ensures the financial stability and sustainability of the program.” 

Cleanfarms is the only approved product stewardship program in Saskatchewan, which means grain bag sellers must work with Cleanfarms or get their own program rubber-stamped if they want to participate. 

Under the Cleanfarms program, farmers can deliver bags to more than 40 collection points set up by the organization.

Sellers collect an environment handling fee when they sell the bags. The sellers then remit those fees to Cleanfarms so the organization can operate its collection sites.

Leger didn’t remit environmental handling fees to Cleanfarms when he sold bags, arguing he didn’t need to because his company did all the work in partnership with the American recycler. 

“I would travel anywhere in the province, roll up their bags. I would do all the work,” he said. “I had the best answer for this fairly large problem —  like it’s a significant amount of plastic.”

The $10,604 Leger is required to pay to Cleanfarms represents the environmental handling fees he was supposed to pay to the organization. 

Skoropad said he’s open to working with anyone who would meet the requirements in the legislation. 

He said Leger did not submit a proposal.

However, Leger said he tried to work with the provincial government but was told the province was not interested in another operator. 

“I’m told, ‘We have to focus on the sustainability of the current approved program,'” he said. “Well, I’m sorry I’m a threat to this non-profit organization. That’s kind of what a business is meant to do, is grow and succeed.”

Leger accused the government of siding with Cleanfarms, pointing to past lobbying by CropLife Canada, a sister organization of Cleanfarms. 

In 2016, CropLife representatives lobbied Saskatchewan ministers about “promoting the benefits of industry stewardship programs.” It noted Cleanfarms had been active in the province. 

CropLife, which is based in Ontario, lobbied former environment minister Scott Moe, who’s now premier, and former agriculture minister Lyle Stewart. Ted Menzies, CropLife’s former president, was among those lobbying. Menzies had previously served as a Conservative MP and cabinet minister before moving to CropLife. 

In 2018, the province’s Agricultural Packaging Waste Stewardship Regulations came into effect. 

“I believe this created a monopoly and gives an out-of-province organization 100 per cent of the money that Saskatchewan farmers pay,” Leger said.

Skorpopad denied the accusations.  

“Cleanfarms submitted an application to be a product stewardship operator and that would be the extent of my knowledge of that,” he said. “As I said before, we’re open to working with anyone who would meet the requirements of the regulations on this program.”

Skoropad said he doesn’t know if there have been previous applications to become an operator. He said there are 14 regulated grain bag sellers in Saskatchewan. 

Leger said he has plans to continue fighting his case. 

“I was demonized, so to me that’s worth continuing to fight for and why I didn’t give up.”

This report by The Canadian Press was first published May 28, 2023. 

Jeremy Simes, The Canadian Press

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Alberta

Low oil prices could have big consequences for Alberta’s finances

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From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Alberta

Governments in Alberta should spur homebuilding amid population explosion

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From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in CalgaryEdmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute
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