‘A lot more work’: Canadian farmers react to suspension of some canola tariffs from China

Farmers are getting ready for the growing season and remain hopeful the reap some of last year’s losses. Alex Karpa reports.

China has suspended some agricultural tariffs on Canada beginning Sunday.

On Friday, the country’s finance ministry announced that the 100 per cent tariffs on canola meal and peas, and a 25 per cent levy on lobsters and crabs, won’t be imposed.

The changes will continue until the end of 2026.

This comes following a recent visit to China by Prime Minister Mark Carney, where he and Chinese President Xi Jinping reached a deal on electric vehicles and canola.

The agreement sees Canada importing up to 49,000 Chinese electric vehicles each year at a tariff rate of 6.1 per cent in exchange for lower duties on canola seed.

The latest deal with China made no announcement regarding canola seed tariffs, which Carney had previously said would be lowered by now.

In August, China implemented a 76 per cent duty on canola seed after launching an anti-dumping probe on the crop. That investigation is expected to formally end in March.

Farmers optimistic

Curtis McRae is thinking about the upcoming farming season. He plans to grow around 2,000 acres of canola this year on his Manitoba farm.

“I’m holding the number very close to the same as last year,” he said, “hoping for the markets to rebound.”

But last year was anything but easy.

Punishing tariffs imposed by China on Canadian canola took a significant toll on farmers like McRae.

“I’m out of pocket a bunch of money from last year,” he said. “It took a billion dollars out of families farms’ pockets, and I don’t think there is anybody thinking of replacing that.”

“Unfortunately, when you have a country built on agriculture and when agriculture gets hit, everybody pays a price someway, somehow,” he said. “I’m sorry that prices in the grocery store have gone up, but those are beyond my control.”

Farmer Warren Ellis says while the relief is good news, there is still a lot of work to be done.

“It’s better, but it’s not the whole answer,” he said. “It’s better in that it will allow some through, but there needs to be a lot of work done yet on that. One other thing that hasn’t been mentioned, is oil which is still at 100 per cent.”

But Ellis says he is seeing a difference in the market since this deal was agreed upon in January.

“Canola prices have gone up a dollar a bushel, which on our farm would mean $50 an acre, which is the difference between profit and loss for us,” he said.

Economist Shiu-Yik Au says the suspension of some canola and seafood tariffs between Canada and China is a win-win for both parties but warns the duties could be reinstated if the relationship deteriorates again.

“Like many things, as long as Mr. Carney is able to have a good productive relationship with a wide-variety of leaders, it’s more likely that we are going to have a long-term positive trade outcome,” said Au, who is a associate professor in the Accounting & Finance Department at the University of Manitoba.

“This is a bit of welcomed relief because it should help the farmers sell more product at a higher price than they could before, as well as giving them a chance to diversify the markets, given what’s going on in the United States.”

Great news for canola industry: Manitoba Premier

Wab Kinew said canola is vital for his province but says more work needs to be done on the pork side.

“Pork is big in Manitoba too,” he said at a press conference on Friday. “We’re going to keep working with the federal government and keep pushing forward and hopefully we can see some positive news on the pork side too soon.”

As for McRae, who, like all farmers, will be starting to seed soon, he says he would like to see stronger support from Ottawa to help ensure family farms can weather future trade disruptions and remain sustainable for years to come.

“We were put over the firepit unfairly,” he said, referring to the tariffs from China. “Farmers have enough things out of their control that we don’t need government wrecking our system anymore. It’s very hard to deal with.”

“Farmers are a great source for building an economy. Any money that we make usually gets spent somewhere,” he said. “Ask our equipment sales guys how they are doing right now. Have they noticed the billion dollars out of our economy? I am sure they have. If you want to build an economy, start with your primary producers.”