(OTTAWA) – The Canadian Federation of Agriculture (CFA) is welcoming the Canadian Renewable Fuels Association’s proposed renewable fuels strategy as a significant step forward in developing an Canadian biofuels strategy that will benefit both the environment and Canadian farmers.

“The CRFA proposal should definitely form part of the foundation of a Canadian biofuels strategy and I encourage all stakeholders with an interest in biofuels to give its recommendations due consideration,” said Bob Friesen, CFA President. “The CRFA echoes many of the ideas CFA has been advocating in its framework biofuels strategy.”

Significant highlights from the CRFA proposal that CFA concurs with include:

• At least a five per cent renewable fuel standard for Canada by 2010, with minimum two per cent for ethanol and two per cent for biodiesel
• The elimination of the $0.10/litre excise tax exemption on ethanol and the creation of a $0.10/litre ethanol producer tax credit. Also the removal of the $0.04/litre biodiesel excise tax exemption and the creation of a $0.30/litre biodiesel producer tax credit.
• A $0.10/litre direct production support for ethanol processors for the first two years, and a similar production support for biodiesel.
• Changes to income tax classifications for biofuel plants to allow flow-through shares to investors.
• A consumer awareness marketing program for biofuels.

CFA particularly supports the CRFA proposal for encouraging primary producer ownership with government matching funds for primary producer investment into a plant. “The CRFA has recognized the vital importance having producers buy into the industry and take ownership at the processing level of the biofuels industry,” said Friesen.

CFA members would also like to see a Canadian biofuels strategy include more components to ensure Canadian primary producers benefit from the industry, such as:

• strong investment in research and development at the primary production level to develop new biofuel crop varieties and technologies
• direct supports for domestic feedstocks to ensure competitiveness
• greater federal and provincial government extension services to assist with  preparing business models, accessing financing, accessing information on new technology, etc

CFA is also thanking Agriculture and Agri-Food Minister Chuck Strahl and the federal government for the $11 million in funding initiatives announced last week to help ensure farmers and rural communities have opportunities to participate in and benefit from increased Canadian biofuels production.

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Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations as well as national and inter-provincial commodity organizations from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.