Canadian farms are at risk amid punishing tariffs levied by the American government beginning Tuesday, says the Grain Growers of Canada (GGC).
The 25% tariffs, which will apply to most Canadian goods exported south of the border - including grain and grain products – not only threaten the viability of family-run Canadian farms, but will also increase food costs for US consumers, the organization said in a statement.
“Canadian family-run grain farms are already facing death by a thousand cuts through increased input costs, regulatory burdens, and taxation,” said GGC executive director Kyle Larkin. “Uncertainty with our largest trading partner for grain and grain products, on top of ongoing instability with our second-largest trading partner, China, could push many family farms to the brink.”
The US imports over $17 billion worth of Canadian grain and grain products every year to meet domestic demand. These imports include wheat for bread, durum for pasta, oats for food products, canola for oil and biofuels, barley for feed and brewing, and other grain and grain products for widespread usage.
In 2023, Canadian wheat exports to the US totaled over $1 billion, oats reached $580 million, barley accounted for over $200 million, and canola exports — crucial for cooking oil and biofuels — were valued at $8.5 billion.
The prices Canadian farmers receive for such crops such are tied to international markets. Disruptions to trade networks drive down farmgate prices, “making it harder for growers to stay afloat,” the GGC said.
“As price takers, grain farmers are at the whim of the global markets that we export to,” said Tara Sawyer, Chair of GGC and an Alberta grain farmer. “Margins are already razor-thin, and an added financial burden like this could put the future of many family farms in jeopardy.”
The Canadian government has announced retaliatory trade action against the US in response to the tariffs, but the GGC said the full removal of the tariffs is what’s needed for farmers.
Meanwhile, the Agricultural Producers Association of Saskatchewan (APAS) announced today that provincial farm groups are planning to jointly host a Saskatchewan Ag Summit later this month. The event will bring together producers, industry experts, and stakeholders to focus on critical issues facing the province's agricultural sector, including farm advocacy efforts and trade concerns.
Experts from University of Calgary, the Canadian Association of Agri-Retailers, the Canadian Agri-Food Policy Institute, and the Saskatchewan Trade and Export Partnership will be among the presenters at the summit, which will be held March 27 in Saskatoon.
"This summit is a crucial opportunity for Saskatchewan's agricultural community to come together, share insights, and chart a course forward on pressing issues," said Jake Leguee, Chair, Saskatchewan Wheat Development Commission.
