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‘It Hits Home’: Canadian Farmers Face Challenges from Chinese Tariffs on Canola and Peas

Photo credit: globalnews.ca

Canola cultivation runs deep in the legacy of Margaret Rigetti’s farm in southern Saskatchewan.

Her grandfather was a pioneer in growing this vibrant yellow crop since the 1970s, making it a cornerstone of their agricultural practices ever since.

“In much of Saskatchewan, the agricultural economy revolves around canola,” Rigetti, a director at SaskOilseeds, remarked during an interview at her property close to Moose Jaw.

“People’s passion for canola hits home for me because it’s more than just a crop; it represents a distinctly Canadian narrative—rooted in western Canada, and profoundly connected to the land I steward.”

Recently, China imposed a 100% tariff on Canadian canola oil, canola meal, and peas in retaliation for Canada’s tariffs on certain Chinese products, including electric vehicles, steel, and aluminum.

Canadian farmers now grapple with a complex trade environment, especially with U.S. tariffs from President Donald Trump, which have affected aluminum, steel, and potentially automobiles.

Within the framework of the Canada-U.S.-Mexico Agreement (CUSMA), agricultural and energy products are generally shielded from U.S. tariffs, and Canada has enacted its own countermeasures in response to these developments.

With the news increasingly dominating her living room, Rigetti emphasizes the necessity of staying informed. “I’ve begun following the news closely to keep up with the constant changes,” she says.

“While we’ve faced challenges in the past, being caught in the crossfire between our largest trading partners is unprecedented,” she adds.

As she explores her family history, she comes across a poignant photo of a combine harvesting canola. An accompanying excerpt reads, “The new crop that changes everything.”

The term ‘canola’ itself is a blend of “Canada” and “ola,” a reference to oil. It was developed in Saskatchewan and Manitoba in the 1970s specifically to reduce erucic acid present in rapeseed.

Canola is versatile, being utilized for cooking oil, animal feed, and biodiesel, significantly bolstering the financial stability of farmers, especially since more than half of the crop is produced in Saskatchewan.

On Rigetti’s farm, large steel bins are filled with dark brown canola seeds as her husband and son load them onto a truck, destined for a grain terminal.

“This year, my son will plant his first field of canola,” Rigetti shares.

“We have to maintain perspective and not instill fear in our kids,” she continues. “The emphasis should be on what we can control: planting the crop, nurturing it to its full potential, managing costs, and safeguarding our mental health.”

In the Fillmore area, just southeast of Regina, farmer Chris Procyk echoes Rigetti’s sentiments, stating, “Unfortunately, we find ourselves ensnared in yet another trade conflict, one that we did not instigate.” He serves as the vice-president of the Agricultural Producers Association of Saskatchewan.

Procyk also warns of potentially severe repercussions should the U.S. impose further tariffs on agricultural commodities. “Canadian crops and potash are crucial exports to the U.S., while we import vital farm machinery in return,” he explains.

He advocates for the federal government to deliver financial support or assistance to those farming families impacted by the ongoing trade tensions. “There’s no clear path for us,” he states. “Our entire agricultural sector is embroiled in this dispute, with minimal control over its resolution.”

Canadian farms have contended with similar obstacles in the past. In 2019, China halted imports of Canadian canola from two companies, citing contamination concerns. However, this action was widely perceived as retaliation for Canada detaining Meng Wanzhou, a high-profile Chinese executive, which coincided with the detention of Canadians Michael Spavor and Michael Kovrig in China.

After their releases in 2021 and the subsequent lifting of the canola ban in the following year, the Canadian economy was estimated to have incurred a loss of approximately $2 billion due to these disputes.

“While farms can handle temporary hardships,” Rigetti assesses, “a prolonged crisis raises significant concerns about the future.”

Source
globalnews.ca

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