Senator Batters: Isn’t it true that brand-new grain dryers that are the most efficient do have a saving on the energy costs; however, the substantial cost is that a brand-new very efficient grain dryer could be $150,000 or more? Isn’t that correct?

Senator Wells: Thank you, Senator Batters.

A grain dryer is a huge cost. If you have a larger farm, you are going to require more drying capacity. That would either be multiple dryers or a dryer that has that higher capacity. I can only imagine that will be a higher capital cost. Certainly, if it is on‑farm, then at least you have some of the benefit of not having to pay the tax on the drying operation.

Senator Simons: To clarify again, for the record, if this bill is to pass, it will have no impact whatsoever on industrial dryers who will still have to pay the full carbon tax?

Senator Wells: To be clearer, off-site dryers will not have the benefit of an exemption from the carbon tax. I can’t say they won’t have a benefit, or it will be worse, because they will have a different volume.

In that respect, it may be different. But that is not what we’re talking about. I have been doing production costing since my early twenties. Their production costs will be different because their production balanced against their fixed costs and their variable costs will be different.