If passed, Bill C-206 would also have exempted natural gas and propane used for grain drying from the carbon tax.
The Agricultural Producers Association of Saskatchewan is disappointed with the news.
“Bill C-206 would have provided cost relief for farmers and ranchers who are already struggling with additional costs from the carbon tax as well as a tough year because of the drought,” vice-president Ian Boxall said Tuesday in a statement to Global News.
“Producers are at the mercy of market prices and can’t pass additional carbon tax costs down the supply chain, which means all those added costs are taken off the bottom line of their farms and from local economies.”
The bill was introduced by Conservative MP Philip Lawrence of Ontario and supported by the Bloc Quebecois, the NDP and the Green Party.
It passed second reading in February and was sent to the agriculture committee for further study.
At the time, Lawrence said the carbon tax creates an undue hardship on farmers dealing with global trade wars and weather uncertainty.
The Liberals opposed the bill, stating at the time that it provided no relief for farmers as it did not add grain drying as an eligible farming activity.
In June, the Trudeau government announced $50 million for farmers to purchase more fuel-efficient grain dryers.