One day after signalling a compromise on a carbon tax, Manitoba Premier Brian Pallister pitched a plan to agriculture producers who have faced big bills from the federal levy.

Pallister told an agricultural exposition Tuesday that a provincial carbon tax, unlike the federal one, would not apply to grain-drying costs.

"Just that alone is a significant indication of the cost benefits of having a Manitoba plan," Pallister told a few hundred people at Manitoba Ag Days.

"We are going to implement our made-in-Manitoba green plan because it is better for the economy than Ottawa's, it is better for the environment than Ottawa's and, most importantly it is better for us, our children and grandchildren than Ottawa's."

Other details of the provincial plan are yet to be revealed.

The announcement follows Pallister's decision Monday to open a door to negotiate with the federal government toward a provincial carbon tax. Manitoba originally proposed a flat $25 per tonne levy, but withdrew the plan when Ottawa said it was not good enough. The federal government imposed its own tax, which is set to rise to $50 per tonne by 2022.

Prime Minister Justin Trudeau, who met with Pallister Monday while in Winnipeg for a Liberal cabinet retreat, said he's happy to no longer be at odds with the premier on the issue of climate change.

"Because I know Manitobans recognize, with the greater extreme weather events, with the real challenges facing our farmers, facing workers and industries, that we need to take real action on climate change in ways that support communities," he said. "And I'm pleased to be engaged in discussions with Premier Pallister on that."

Pallister's stance breaks with his fellow Prairie conservative premiers. Alberta's Jason Kenney and Scott Moe of Saskatchewan are vocal opponents of the federal tax.

It has also been widely opposed in Manitoba's farming areas — a big base for Pallister's Progressive Conservatives.

Keystone Agricultural Producers, the province's largest farm group, said it is pleased with Pallister's promise to exempt grain-drying costs,

"I would think it is a step in the right direction," said Keystone president Bill Campbell.

"When you put (it) all together, it looks like … about $1.7 million that Manitoba agriculture is paying in a carbon tax for grain corn alone."

Farmers across much of the West faced a soggy harvest in the fall and have had to spend time and money drying grain with natural gas and propane. Campbell said they also face competition from farmers in the United States who do not pay a carbon tax.

Pallister promised other help for producers in his speech. He reiterated a campaign intention to increase the amount of ethanol required in gasoline and the amount of biofuel required in diesel, and said the change will come this year.

While Pallister is working to convince people of the benefits of a provincial carbon tax, he is not prepared to say what dollar amount he is planning. He has only said he wants credit from the federal government for the billions of dollars Manitoba has spent on developing clean hydroelectricity.