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Groups representing canola producers and the Agricultural Producers Association of Saskatchewan (APAS) believe measures announced by Ottawa on Friday don't go far enough to adequately support farmers and the agriculture sector, amid ongoing trade instability with China.
Federal supports were announced in the context of challenges with the United States.They include an increase to the interest-free portion of a cash advance loan under the Advance Payments Program to $500,000 for the 2025 and 2026 program years; a $75 million expansion of the Agri-Marketing Program over five years to help the agriculture sector diversify into other markets such as Africa, the Indo-Pacific, and the Middle East; the Regional Tariff Response Initiative designed to quickly address tariff barriers that specifically impact regional agriculture sectors, so they can remain competitive on the global stage; and $370 million in a new bio-fuel production incentive, with a commitment from the federal government to make targeted amendments to the clean fuel regulations to spur development of a vibrant bio-fuels industry in Canada.
“We are discouraged with the government’s support package for the industry. The measures announced today do not reflect the seriousness of the challenge facing the value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO in a statement on the CCC website published Friday. “We have communicated the need for appropriate financial and policy supports, and the federal government has missed the mark.”
“Farmers should not be expected to borrow their way out of this situation,” says Rick White, President & CEO of the Canadian Canola Growers Association (CCGA). “The Advanced Payments Program (APP) is not designed to provide the required support canola farmers need under this situation,” says White.
“The government has also not recognized extensive impacts on the rest of the canola value chain, including exporters and processors who are also facing significant financial impacts as a result of the Chinese market closure. This must be addressed,” says Davison.
Both groups are encouraged by support for bio-fuel production with the incentive program, but it "does not go far enough and will not drive meaningful additional domestic demand for canola." They add, " the announced amendments to the Clean Fuel Regulations provide no clarity on disincentivizing fuels made from possibly adulterated foreign used cooking oil (UCO). In 2024, foreign UCO-based fuels represented the equivalent of nearly one million tonnes of domestic canola demand."
Meanwhile, APAS was pleased to see the measures announced last week but similar to the CCC and CCGA, feel they won't fully compensate what producers might lose as a result of trade uncertainty.
"Right now, producers are worried about this year's crop and how canola prices have certainly declined and we're looking for some relief in the short-term. These programs, while they're certainly welcome, aren't going to help us in the short-term." said Bill Prybylski, President of APAS.
Prybylski says pea producers have been omitted from the federal measures.
“Canola has been garnering all the attention in the media...because it is certainly a significant crop in Saskatchewan in particular, but it has implications for the whole of Canada. The peas aren't getting nearly as much attention, they are more of a smaller crop, but they're certainly very important to Saskatchewan and particularly important to producers that grow the peas.”
“The tariffs are equally or even more harmful to the pulse growers than the canola tariffs. It's certainly something that we're concerned about. In all the discussions, canola seems to be getting attention, but the tariffs on the peas are equally as important and as equally as devastating to producers that are pulse growers. We're looking for some recognition that the pulse growers in the province need some support as well.” he explained.
In a news release, "APAS notes that in 2024, Saskatchewan farmers produced 1.5 million metric tonnes of peas." They add with today's market conditions, farmers would be losing $150 million due to trade disruptions.
The groups call on the federal government to pursue all avenues in resolving the trade dispute with China and restore market access.
