The Canadian government has released a second wave of emergency measures for the agriculture sector. This action is a welcomed relief from the oppressive Chinese tariffs on key U.S. exports such as canola, peas, pork, and various seafood products. Producers, processors, and provincial leaders have worked doggedly to beat back these tariffs. Their public advocacy has brought nationwide attention to just how harmful these tariffs have been. The government’s move to strengthen the AgriStability program is welcome relief and a lifeline for the farmers faced with a volatile economy.
China's tariffs, set at 100 percent on canola and peas and 25 percent on pork and some seafood products, have been implemented in retaliation against Canada's tariffs on Chinese-made electric vehicles, steel, and aluminum. New developments have recently been piling on the pressure facing Canadian ag exports. Provinces such as Alberta, Saskatchewan and Manitoba, that rely most on China for canola exports, are already starting to feel the impacts.
Saskatchewan Premier Scott Moe has been the most vocal on the disastrous effects these tariffs have had. He says they would be disastrous for the sector. In alignment with these concerns, the federal government has announced that the AgriStability program's payment cap will double to $6 million for the 2025 program year. AgriStability will increase its compensation level from 80 per cent to 90 per cent. This increase will result in more meaningful financial relief to farmers facing hardships.
"Today's announcement is a direct result of their advocacy — and our commitment to them," stated Agriculture Minister Kody Blois.
The program is available to all farmers in Canada, with the federal and provincial governments cost-sharing the program. Under the plan, the federal government would fund 60 percent of costs while provinces pay 40 percent. The estimated federal cost of these supports would be $108.7 million in 2025-26.
And the financial repercussions of these tariffs are already being felt on the ground. Clinton Monchuck, a fourth-generation canola farmer from Saskatchewan, is bracing for a long year. As a result, he will lose an extra $100,000 because of the tariff hikes. To avoid such losses, there is an urgent need for improved support mechanisms for farmers.
"China’s decision to apply these tariffs will have a devastating impact on our farm families and their communities," emphasized Agriculture Minister Kody Blois.
