To meet its commitment to the Kyoto Protocol (KP), Canada must reduce its current annual GHG emissions (694 MT CO2 equivalent) by 240 MT CO2. Canada’s agricultural industries have the potential to generate a carbon sink of 10 MT CO2 (Government of Canada, 2003). The purpose of this article is to consider the manner in which Canadian agricultural policy has responded to Canada’s KP commitment and the likelihood that Canadian agriculture will participate significantly in carbon emission trading.