Joint letter urges federal government to protect energy choice for farmers

July 9, 2027  

The Honourable Tim Hodgson
Minister of Energy and Natural Resources
House of Commons
Ottawa, Ontario

Dear Minister Hodgson, 

Re: Powering Canada Strong: A National Strategy for an Electrified Canadian Economy 

On behalf of the Canadian Propane Association (CPA) and the Canadian Federation of Agriculture (CFA), we are writing regarding the proposed Powering Canada Strong: A National Strategy for an Electrified Canadian Economy and its implications for Canadian agriculture, rural communities and food security. 

Together, our organizations represent critical components of Canada’s agri-food value chain—from energy and crop nutrients to primary agricultural production. We share a common interest in ensuring that federal policies strengthen the competitiveness, resilience and affordability of Canada’s food system. 

The Government of Canada’s recently announced National Food Security Strategy reflects a renewed focus on building a more resilient agri-food sector, improving farm competitiveness and making food more affordable for Canadians. The strategy includes substantial investments to strengthen domestic food production and supply chains while helping ensure Canadians continue to have access to affordable food. 

That objective cannot be achieved without reliable and affordable energy for farms. 

Propane is an essential energy source for Canadian agriculture. It powers grain drying systems, heats livestock barns, sanitizes milking equipment, fuels irrigation equipment, supports crop production, and provides backup energy during emergencies. For many producers who do not have access to natural gas, propane is not optional. It is critical to maintaining animal welfare, protecting crop quality, managing weather risks and supporting food production in rural and remote regions. 

For example, propane is widely used for grain drying across Canada. Grain drying is an essential part of modern crop production, helping farmers protect crop quality and reduce spoilage. Without access to affordable and reliable propane, many producers would face significant operational challenges and increased costs that would ultimately affect the competitiveness of Canadian agriculture and the affordability of food. 

While Canadian farmers support steps to provide more and better energy options to support their operations, we are concerned that the proposed electrification strategy does not adequately reflect these on-farm realities. Many farms operate in areas with limited infrastructure, constrained grid capacity or no access to natural gas. In these regions, electrification alone is not practical, affordable or reliable. The resiliency of our Canadian businesses is improved by utilizing energy from multiple sources (including propane, electricity, natural gas, and renewables) and having alternative backup sources available during power interruptions. As noted in the paper, the approaches adopted will need to reflect varied regional realities. 

Canadian agriculture operates in highly competitive global markets, and producers have limited ability to absorb or pass on higher energy costs. Policies that reduce energy choice or make propane less available would increase costs for farm businesses and undermine the government’s own objectives of improving farm competitiveness and food affordability. 

We are also concerned by recent public comments suggesting that propane is an expensive energy option. For many Canadian farmers, that characterization does not reflect reality. In many regions of Canada, propane remains one of the most practical and affordable energy sources available where natural gas is not an option. Propane is often significantly less expensive than heating oil/diesel and is relied upon for critical agricultural applications that have few practical alternatives. Policies built on the assumption that propane is inherently unaffordable risk increasing costs for producers, reducing competitiveness and ultimately contributing to higher food prices for Canadians. 

Propane also supports emissions reductions today. Compared to heating oil and diesel, propane can lower emissions while maintaining the reliability farms require. Renewable propane and hybrid electric-propane systems offer further opportunities to reduce emissions using existing equipment and infrastructure. 

A national energy strategy should support the objectives of the National Food Security Strategy by strengthening the resilience, affordability and competitiveness of Canada’s agri-food sector—not creating new operational or cost pressures for farmers. 

We respectfully request that the Government of Canada: 

• Recognize propane as an essential, affordable and lower-emission energy source for agriculture, rural communities and food security; 

• Ensure agricultural energy needs are fully considered in the National Strategy for an Electrified Canadian Economy; 

• Support technology-neutral policies that allow farmers and agri-food businesses to choose the most practical and affordable energy solutions;  

• Recognize the role of hybrid electric-propane systems in reducing emissions while maintaining reliability and affordability; and 

• Avoid policies that could increase costs for producers, weaken farm competitiveness or make food less affordable for Canadians. 

Canadian farmers and agri-food businesses are committed to reducing emissions and strengthening Canada’s food system. Achieving those goals requires practical energy solutions that reflect the realities of rural Canada, and the essential role propane plays in keeping farms operating. 

A resilient food system depends not only on productive farms, but also on access to affordable and reliable energy. Policies that unnecessarily restrict affordable energy choices for farmers risk undermining Canada’s objectives on food security, farm competitiveness and food affordability. 

We would welcome the opportunity to meet with you and your officials to discuss these concerns and identify practical ways to align Canada’s electrification strategy with the government’s food security, affordability and economic growth objectives. 

Sincerely, 

Cc:  

Honourable Heath MacDonald

Honourable Pleaman Forsey 

Honourable Bloyce Thompson

Honourable Greg Morrow

Honourable Pat Finnigan

Honourable Donald Marte

Honourable Trevor Jones

Honourable Ron Kostyshyn

Honourable David Marit 

Honourable Tara Sawyer

Honourable Lana Popham

Honourable Ted Laking 

Honourable Caitlin Cleveland

Honourable Craig Simailak