With average prices ranging around 65 cents per litre for diesel and 50 cents for gasoline with tax exemptions, producers quickly queued up at their local suppliers to shave some dollars off their farm fuel budgets.

Not surprisingly, higher-than-normal demand for fuel tanks quickly followed. Just ask Mike Brochu.

“We noticed a big surge in fuel tank sales both in our new and used tank sales,” said the general manager of All Peace Petroleum in Grande Prairie and Bar W Petroleum and Electric in Red Deer.

“In general there was a bit of a mad scramble in March, April and May when fuel prices went down and farmers were getting some extra storage.”

But more tanks can equal more risk. Tank location, choice in base and distance from buildings and water bodies all make a difference between a safe farm fuel setup and a potential disaster.

“There can be a human impact, an animal impact or an environmental impact for not storing fuel correctly,” said Brochu.

“There’s potential for creating fires and explosions. You can have leaks that damage the environment — animals shouldn’t be eating the vegetation that comes from contaminated soil. On the human side of things there are potential health problems.”

The rules

Although fuel storage used solely for agricultural purposes is exempt from the Alberta Fire Code, producers can still be charged under the Environmental Protection and Enhancement Act if they don’t employ “due diligence” in their storage practices. That’s why the province recommends using Alberta Fire Code guidelines.

Also, some municipalities may have specific bylaws requiring producers to, for example, enact certain setback distances or have secondary containment in place, said Brochu. Producers’ best bet is to contact their local municipalities and fire authorities before installing or adding to their fuel storage systems, he said.

“They also need to reach out to their insurance providers, which may have mandates in place in order to keep their liability insurance valid.”

The Alberta Environmental Farm Plan (EFP) program offers some tips on how to store and manage fuel safely (go to the Resources/Technical Tips section of www.albertaefp.com). As well, a publication called Farm Fuel Storage and Handling can be found at www.alberta.ca (search for ‘farm fuel storage’ and click on ‘farm safety fact sheets’).

Siting tanks

Location isn’t everything when it comes to farm fuel safety, but it’s close. Your tanks should be placed where they present the least damage to water sources and human and animal health in general.

“(Locate them) where a spill won’t run into a water course or a ditch or a slough, so it won’t run into a producer’s water well or an adjoining water well, it won’t run into a basement or an adjoining building or into an area with livestock,” said Brochu.

“Set up your fuelling area so if you have a bigger spill it’s going to stay contained in that area. Make sure your tanks are located in properly ventilated areas. Don’t have a gasoline tank inside of a building where you are breathing in fumes and potentially having fumes collect, creating a chance of explosion.”

The EFP program offers suggested minimum setback distances. They include placing tanks at least 50 metres from any water source, 30 metres from a water body or forested area, six metres from any source of ignition, six metres from propane cylinders and tanks, and one metre from another fuel tank.

“The best practice is to maintain as great a distance as possible between fuel storage and water sources and water bodies,” said Lisa Nadeau, program manager for the Alberta EFP program.

Setting up a tank

A double-walled tank or a secondary containment structure capable of capturing 110 per cent of a tank’s volume can prevent or minimize the costly and dangerous effects of a fuel leak. As previously mentioned, Brochu recommends checking in with your municipality and local fire authority to find out about any local rules around secondary containment.

Tank bases should consist of material such as concrete or compacted gravel in order to prevent fuel leakage into groundwater.

“Your base should be non-combustible,” said Brochu. “I was born and raised on a mixed farming operation. It was quite common to see tanks on wooden stands and that’s just not safe. If there was ever a fire your stand could be compromised and your tanks can fall over, causing more damage and more fire.

“You need to be able to reach the nozzle safely without stepping up on a block that is not designed for access,” said Brochu. “Use proper steps and ladders.”

Fuelling up

Fuel tanks should be ULC or CSA approved and actually designed for the purpose of storing fuel products. While some producers might consider this advice an insult to their intelligence, Brochu said he’s seen farmers use a lot of off-point — and potentially dangerous — workarounds over his 30 years of selling and servicing petroleum products.

“They might be using water tanks and you name it, that were never designed to hold fuel. That could create all kinds of different problems, from tanks leaking to not having the proper ventings.”

Ensure fuelling equipment is appropriate for the equipment being fuelled. A lot of farmers are buying high-speed pumps in order to fill large equipment faster, said Brochu. However, think twice before using that pump to fill your truck.

“If you have a fuelling system that might be filling 115 litres per minute to fill your combine, remember that your truck is not designed to take fuel at that capacity. There’s a good chance you will put the nozzle in and it will take it for the first 10 seconds and all of a sudden it’s blowing back at you.”

Although automatic nozzles that shut off when a tank is full are a great idea in theory, don’t depend on them, said Brochu.

“You should always attend and manage your fuelling operations — don’t walk away from them.”

On that same note, producers should diligently maintain fuelling equipment.

“Cracked hoses and older hoses that blow apart are things that can cause big problems. It’s the same with leaky fittings. A fitting that’s leaking a drop a second adds up to a huge amount of fuel over a short period of time, so make sure everything is in good condition.”

Any electric components — pumps, for example — should be installed by a certified electrician, said Brochu.

“Consult with an electrician in regards to when grounding is required and when it’s not required,” he said. “That will vary from one system to another. Tanks usually need to be grounded in order to be safe and sometimes you need to ground between your fuelling equipment and what’s being fuelled, depending on the situation.”

In some cases producers may be able to completely avoid the risks of on-farm fuel storage by simply not having it. This might be an option for smaller farms located close to a fuel supplier, said Brochu.

“A smaller producer might say, ‘I don’t want to even have tanks on my farm,’ or, ‘I’m going to keep a minimum amount of tanks on my farm. To get to my land I have to drive by a UFA Cardlock — I’m just going to fill up my slip tanks that way.’”

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“Our members are committed to minimizing disruptions to the Canadian fuel supply as a result of the pandemic response,” Canadian Fuels Association spokesperson Jason Vaillant said in an email.

“Our members are working tirelessly to maintain operations while keeping our employees and communities safe through this challenging time.”

Association members have all activated their existing business continuity plans in response to the pandemic.

Federated Co-operatives, now in the midst of a labour lockout as well as pandemic protocols at its Regina fuel refinery, said Wednesday its on-site work camp “will continue to ensure that the temporary operations personnel on site are isolated” and not travelling in and out of the facility.

FCL on Tuesday also announced it would defer the refinery’s spring turnaround until at least May 15. The turnaround “typically sees an influx of hundreds of additional workers on site.”

The Co-op Refinery Complex (CRC) is part of Saskatchewan’s critical infrastructure network, FCL said, and “wants to assure residents that the refinery will continue to produce fuel during this time.”

FCL also said March 6 it had already launched early spring delivery of fuel to Prairie farmers. Ron Healey, the co-op’s vice-president of ag and consumer business, said “we have positioned fuel to be as close to our farm customers as possible.”

Alberta’s UFA, one of Canada’s largest distributors of fuel for the agriculture industry, has increased cleaning in all of its stores and facilities. And while the co-operative has seen increased demand for products such as cleaning supplies and face masks, fuel supplies so far seem unaffected.

But that could change, Vaillant added.

“This is a very dynamic situation, and we will continue to monitor and respond accordingly,” he said.

“We are part of Canada’s critical infrastructure, and we will continue to work collaboratively with federal and provincial governments to maintain the operation of refineries, terminals, and the fuel supply chain.

“Our focus remains on continuing to provide secure and reliable access to transportation fuels for Canadians.”

— Jennifer Blair reports for Alberta Farmer from Red Deer. Includes files from Glacier FarmMedia Network staff.

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“It does exempt some farm costs — farm fuel, for example,” he said. “I know we’ll get pushback from some industry groups that are not agriculture. But the farmer is in a different situation. For the most part they are a taker of international price. They don’t have the ability to raise a fee or a levy on a customer so it would handcuff the ag community to a degree.

“I also know… initiatives that farm families have taken to green up their place, to clean up the environment. We could talk about the benefits of zero-till just as one example. There are many, many farm families in this province that are the reason we’re the greenest province in the country right now. And I am asking for respect from the federal government on this issue.”

The news is sure to be welcomed by Keystone Agricultural Producers (KAP), the province’s general farm organization, which has asked for agriculture to be exempt from a direct carbon tax on fuel used to produce crops and livestock.

Pallister and Sustainable Development Minister Rochelle Squires will release the plan, more than a year in the making, at Oak Hammock Marsh near Stonewall on Friday.

Although Manitobans will have an opportunity to help shape some aspects of the plan, Pallister said he’s certain it plan will be better than the federal government’s.

“We just can’t sit back and say no. If we do say no we get Mr. Trudeau. That’s the threat from Ottawa.”

As part of Canada’s commitment to cutting carbon emissions in the battle to slow climate change the federal government says it will impose a $50/tonne carbon tax, starting at $10 in 2018 and peaking by 2022, if provinces don’t do it themselves.

“We have a plan that we will be announcing tomorrow with Manitoba specific priorities in mind, essentially designed by Manitobans for our situation, respectful of our green record,” Pallister said Thursday.

In a previous interview he said Manitoba’s plan will recognize the contribution Manitobans have made to reducing carbon emissions by investing in hydroelectricity, which is nearly emissions-free.

A leaked document suggests Manitoba’s plan will include a $25/tonne carbon tax — half of what Ottawa wants imposed by 2022. Pallister has declined to comment on that report.

“We are dedicated environmentalists,” he said. “Each and every one of us knows the threats of climate change. Each of us understand also that we’re stewards for the resources entrusted to us for the generation and those who follow thereafter. We understand the intergenerational obligation we have towards sustainability.”

Pallister said concerned citizens were able to get the federal government to revise its controversial tax reforms and Manitobans might be called again to defend the province’s climate plan.

“If the federal government doesn’t like our plan and they come down and try to invoke theirs,” he said, “I am going to need Manitobans to stand up and say ‘Hold it, we’ve got a plan that is better.'”

Pallister said also his government will be accountable for its plan, which he described as “a realistic, balanced strategy that balances the sustainability needs for our economy with our environment… You can’t deal with one and ignore the other.

“We need to marry the prospects of a made-in-Manitoba plan for both the economy and the environment and we have it and it is going to work better than the federal plan. I am confident of that.”

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man. Follow him at @AllanReporter on Twitter.

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The provincial government on Wednesday rolled out a budget designed to dial back the province’s reliance on resource revenue in the face of slumping markets for oil and potash, while substantially boosting provincial revenue from consumption taxes.

For farmers, one of the biggest changes in Finance Minister Kevin Doherty’s budget is the elimination of the tax exemption for bulk purchases of gasoline starting April 1, along with a cut in the related exemption for bulk diesel, down to 80 per cent of the purchase.

That measure alone, the province said, “impacts farmers and other primary producers and increases fuel tax revenue by $40.2 million.”

The cuts to farm fuel exemptions, the province said, “reflect the changing nature of farming and primary production operations and on-road and personal use of this fuel.”

Pre-budget discussion about farmers’ fuel tax exemptions had already spurred Todd Lewis, president of the Agricultural Producers Association of Saskatchewan (APAS), to write an open letter Monday emphasizing such exemptions “are not subsidies” for farmers.

The “vast majority of tax exempt fuel is not used on the provincial highway system, but is used for field work, or for hauling on the rural municipal roads that farmers already pay for through our property taxes,” he wrote.

“Tax exemptions for farm inputs and machinery do not cost any other taxpayer a nickel. Just like tax exemptions on children’s’ clothes or home heating do not cost anything to other provincial taxpayers.”

The province noted Wednesday it has lowered the educational property tax (EPT) mill rates for all classes of property, but reassessments and increased property values will amount to a 9.8 per cent increase in EPT revenue.

For agricultural property, the province said, the 2017 EPT mill rate will be 1.43, down from 2.67 in 2016, but EPT revenues from agricultural land are still expected to rise to $46.1 million, up from $39 million in 2016.

In a move affecting all Saskatchewan residents, provincial sales tax (PST) will rise to six per cent, from five, and various PST exemptions — such as for construction and renovation services, restaurant meals, snack foods and children’s clothing — will also end, effective April 1.

A PST exemption for insurance premiums will also end starting July 1, the province said.

Effective April 1, the value of a trade-in will also no longer be deductible in determining PST on the purchase of a new vehicle, though the PST exemption for used vehicles will continue.

Grain cars for sale

The province on Wednesday also set a request for offer (RFO) deadline of May 12 for buyers interested in the fleet of about 900 grain hopper rail cars owned by the Saskatchewan Grain Car Corporation (SGCC), as that operation is to be wound down.

“By selling the fleet now, the cars will still move Saskatchewan grain,” David Marit, the provincial minister for SGCC, said in a separate release. “At the same time, the province will get a higher return by selling the cars while they still have significant useful service life left.”

Saskatchewan’s 13 commercial shortline railways will be given “the first opportunity” to purchase the rail cars, the province said.

Under Association of American Railroads rules, the province said, rail cars can be interchanged between railways for up to 50 years, meaning SGCC’s cars have about 14 years of service life left. The replacement cost for SGCC’s original fleet of 1,000 cars is estimated at $100 million.

Pasture program ending

The province on Wednesday also announced it would end the 95-year-old Saskatchewan Pastures Program (SPP), which today oversees 51 pastures on about 780,000 acres.

An online survey will run starting Monday (March 27) until May 8, in tandem with consultations including stakeholders, First Nations and the Metis community, on how the affected pasture land should be managed in the future, the province said.

Set up in 1922, the SPP was developed to help Saskatchewan’s agriculture industry diversify by providing assistance to small cattle producers, but “the agriculture industry has evolved, as have the needs of producers, and the program is no longer necessary,” the government said Wednesday.

In 2015, the province said, the SPP supported about five per cent of the provincial cattle herd. Based on 2011 census data, about 12 per cent (1,300) of Saskatchewan cattle producers use the SPP.

Overall agricultural programming in Wednesday’s budget will see $264.1 million earmarked for business risk management (BRM) programs, up nearly four per cent, with $71.2 million for Growing Forward 2 “strategic initiatives,” $26.8 million for ag research and $172.2 million for crop insurance premiums and program delivery.

Among other changes announced in the budget, personal income tax rates will be cut in half-point increments in July 2017 and July 2019, as will general corporation income tax rates.

Sin tax hikes will see tobacco taxes rise by two cents per cigarette starting Thursday and wholesale markups rise on liquor — most notably by 6.8 per cent on most types of beer — starting April 1.

Milk containers will be added to the provincial beverage container recycling program starting April 1, allowing milk containers to be returned to SARCAN depots for refunds of a paid deposit. Deposits on most other types of containers, including cans, cartons and tetra paks, will also increase.

The province also announced it will wind down the Crown-subsidized bus company, STC, affecting 224 employees. Passenger services are to end May 31 and freight will be accepted for delivery until May 19. — AGCanada.com Network

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