Latest news with #Prybylski
National Observer
3 days ago
- Business
- National Observer
'This is our livelihood': Farmers prepare for hit from new China canola tariff
Farmer Bill Prybylski says China's planned tariff on canola seed wasn't factored into his business equations this year. The president of the Agricultural Producers Association of Saskatchewan says the 75.8 per cent preliminary duty, announced Tuesday, has already caused canola prices to fall by $1 per bushel. That translates to a loss of about $200,000 for his farm. 'That's a pretty significant financial hit,' said Prybylski, who farms northeast of Regina near Yorkton. 'Most canola producers will be seeing the same thing, just depending on their number of acres and yields.' Canola is considered a high source of farm revenue for Canadian producers, but it's also among the most expensive to grow. Many farmers have begun harvesting their crops and are planning to sell them at local elevators, possibly at lower prices than they were a few days ago. Dean Roberts, who farms near Coleville in west-central Saskatchewan, said canola makes up about a quarter of his operation. 'It's a very important crop and our second largest customer just effectively closed their market to us,' said Roberts, chair of SaskOilseeds. '(The tariff) is very impactful to individual farmers, because this is our livelihood, this is how we feed our families, this is how we keep our operations going.' Andre Harpe, a farmer near Grande Prairie in northern Alberta, said the tariff announcement was an "absolute shock." "After the harvest, then decisions will start being made on how many acres of canola are we going to grow (next year)," said Harpe, who is also board chair of Alberta Canola. China has said the tariff would start Thursday, nearly a year after Beijing launched an anti-dumping probe into Canadian canola. The investigation is in response to Canada's 100 per cent tariff on Chinese electric vehicles. Ottawa has said China has until September, when its investigation formally ends, to make a final decision on the duties, but it can extend the deadline by six months. China's Ministry of Commerce argued Canadian canola companies were "dumping" the product into the Chinese market, hurting its domestic canola oil market. Ottawa and canola farmers have rejected that claim, saying companies are following international rules-based trade. Dumping is a trade practice where exports from one country flood a foreign nation's market with goods at prices lower than what the commodities cost domestically, undercutting local industry. The Canadian Canola Growers Association says the industry contributes more than $43 billion to the country's economy and employs roughly 200,000 people. China is the largest export market for Canadian canola seed, taking up about 67 per cent of Canada's shipments — worth billions of dollars. Agriculture Minister Heath MacDonald and International Trade Minister Maninder Sidhu were to meet Wednesday with canola groups to discuss the issue. The ministers have said they remain ready to speak constructively with Chinese officials to address their trade concerns. Last year, Ottawa imposed its tariff on Chinese-made electric vehicles and 25 per cent tariffs on Chinese steel and aluminum. Beijing retaliated with 100 per cent tariffs on Canadian canola meal and oil. China's latest move on canola seed now means all canola products face levies. Conservative member of Parliament Michelle Rempel Garner said the tariffs were "completely avoidable" and require an immediate response from the Liberal government. "As a western Canadian, I cannot stress how devastating this is to our economy and to our agricultural producers," the Alberta MP told reporters on Parliament Hill. Opposition Conservative Leader Pierre Poilievre said in a statement Ottawa should respond by cancelling a $1-billion federal loan it gave to BC Ferries, which is purchasing Chinese-made ships. Manitoba Premier Wab Kinew urged the federal government to support farmers with the electric vehicle revenues it has collected from China. He estimated those tariffs have provided Canada with $100 million, while China's levy has already wiped out $1 billion in canola values. "Let's get some of that money out the door to help our industry here in the West, the same way we've seen other industries supported," he told reporters in Winnipeg. The issue has caused some to talk about western alienation, he added. "A lot of people have said, 'Well, no, you can't lift these EV tariffs because it might piss off (US President) Donald Trump.' But (I think) that's a hypothetical. This thing that we're talking about here that canola producers are facing, this is real." Alberta, Saskatchewan and Manitoba, with assistance from Ottawa, have offered increased supports to producers through the AgriStability farm income stabilization program. It aims to increase compensation rates for farmers should their margins decline. Prybylski said while the program is helpful, it won't be enough to weather the tariff storm. He said he's counting on Ottawa to negotiate a settlement with Beijing. 'The consensus is that these tariffs are in retaliation for the (electric vehicle) tariffs Canada implemented against China. We need the federal government to be at the table,' he said. Producers who've already locked in their canola at a future price on a contract shouldn't expect an immediate hit, Prybylski said. But he worries for those who don't have contracts and need to sell immediately. Roberts said there's not much farmers can do, as many sell their crops around harvest time to generate much-needed cash to pay off inputs and debt. 'We're price-takers in the market,' he said. 'I'm a long way from Ottawa. I'm even further from Beijing. So for me to understand what the right decisions are is very tough. But I do know the implications of my farm gate are very, very real.' This report by The Canadian Press was first published Aug. 13, 2025.
4 days ago
- Business
'Uncertainty is the only thing that is certain': Sask. farmers react to Chinese duty on canola
Canola producers say they're not surprised about China's latest move in its ongoing trade war with Canada. Everybody was kind of expecting this day to come. It was just a matter of when and what level the tariffs were going to be applied at, said Bill Prybylski, president of the Agricultural Producers Association of Saskatchewan. On Tuesday, China's Ministry of Commerce announced a 75.8 per cent preliminary duty (new window) on Canadian canola seed after an anti-dumping investigation it began last year. China claims the dumping of Canadian canola into the Chinese market is hurting its domestic canola oil market. The investigation — and the 100 per cent tariff levied on Canadian canola oil and meal in March — were launched in response to Canada's 100 per cent tariff on Chinese electric vehicles. Ottawa has said China has until September, when its investigation formally ends, to make a final decision on the duties, but it could extend the deadline by six months. 'Caught in the middle' While the latest round of canola tariffs were expected, that doesn't make the process any less frustrating for producers like Prybylski. We feel like we're caught in the middle of a trade war that we neither wanted, or started, or have any influence on, he said, speaking with CBC News from his farm near Yorkton, Sask., about 175 kilometres northeast of Regina. Multiple agricultural and canola associations say China's move effectively shuts Canadian canola out of the Chinese market. According to the Canola Council of Canada, China is the largest market for canola seed and the second largest market for Canadian canola. The latest data provided by the council (new window) shows Canada's canola exports to China totalled $4.9 billion in 2024. For now, producers are cautiously watching the price of canola. Rick White, president and CEO of the Canada Canola Growers Association, said it is too early to tell what those prices might look like. But with the harvest of this season's crop set to get underway in the coming weeks, there's no doubt this is going to be economically painful, he said. The price is likely to sag, the opportunity to deliver will likely be slowed and it could be a rough road here for the next year, White said. Prybylski agreed, saying he believes many producers will likely have to sell their products at a loss. Premier Scott Moe said he wants a quick resolution to this dispute and hopes to speak with Prime Minister Mark Carney soon. Photo: CBC / Don Somers Saskatchewan Premier Scott Moe lamented the new duty's effects on producers in the province. Speaking in Saskatoon on Tuesday, Moe said he has reached out to Prime Minister Mark Carney to speak with him on the issue and get it dealt with immediately. Moe said the Canadian canola sector is larger than the steel, aluminum and electric vehicle industries combined. Our federal government cannot sacrifice a $43-billion canola industry, 200,000 jobs in that industry that is largely based, in fairness, in Western Canada, to protect the fledging electric vehicle industry, largely based in Eastern Canada, Moe said. WATCH | Canola farmers feel forgotten amid trade war, ongoing Chinese tariffs: In early June, Canadian and Chinese trade ministers committed to meet to address trade issues. In a post on social media Tuesday (new window) , the Chinese Ministry of Commerce said officials from both countries met four days ago and discussed trade and ways to deepen co-operation. The Prime Minister's Office deferred comment on China's latest canola tariff to the minister of international trade, who did not immediately respond to a request for comment. Saskatchewan Opposition NDP Leader Carla Beck urged Moe to visit China immediately. Given the level of threat we see right now, it doesn't make any sense to me that we are not using that office today to deal with this, she said in Regina. Moe said he's open to going on a trade mission to China with Carney. Saskatchewan has a trade office in Shanghai and Moe went there in 2018. China remains a top importer of Canadian canola, but it exports few electric vehicles to Canada. Canada has justified its levies on Chinese electric vehicles by arguing they protect planned investments at home. Canada also matched a similar move by then-U.S. president Joe Biden, who hit Chinese EVs with American tariffs. Chinese EVs are significantly cheaper than North American-made EVs, in part because of lower labour and environmental standards, and state subsidies. WATCH | From April: 'That's a big hit': China slaps 100% tariff on Canadian canola products: Cathy Holtslander, director of research and policy at the National Farmers Union, said that although the latest canola announcement is not ideal, Canadians shouldn't panic. Speaking in Saskatoon, Holtslander said the sale of canola to export markets doesn't really begin until October. That means the effect may not be immediate. Holtslander said she believes the latest announcement is a negotiation tactic and could be resolved politically. The politics are extremely complex and unpredictable. I think uncertainty is the only thing that is certain now. Alexander Quon (new window) · CBC News · Reporter Alexander Quon has been a reporter with CBC Saskatchewan since 2021 and is happy to be back working in his hometown of Regina after half a decade in Atlantic Canada. He has previously worked with the CBC News investigative unit in Nova Scotia and Global News in Halifax. Alexander specializes in municipal political coverage and data-reporting. He can be reached at: Facebook (new window) Twitter (new window) With files from Alexander Silberman, Chris Edwards and The Canadian Press
CBC
09-03-2025
- Business
- CBC
Saskatchewan farmers brace as China imposes tariffs on crops
Social Sharing Saskatchewan farmers are feeling the weight of an escalating global trade war after China announced retaliatory tariffs on Canadian canola oil, peas and oil cakes. The move follows the federal government's decision on Oct. 1 to impose 100 per cent tariffs on Chinese electric vehicles and a 25 per cent levy on its aluminum and steel products. Bill Prybylski, president of the Agriculture Producers Association of Saskatchewan, says producers saw this coming. "We're not surprised," Prybylski said. "Ever since the federal government announced tariffs on Chinese electric vehicles, it was highly anticipated that the Chinese government would retaliate in some manner." Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, says China's decision is part of a strategic geopolitical move. "China has a history of using tariffs as a political tool," Charlebois said. "This isn't just about trade — it's about exerting pressure on Canada." Prybylski says canola is a cornerstone of Saskatchewan's economy, with about 20 million acres seeded annually. Lee Moats, a Saskatchewan farmer and former board member of Saskatchewan Pulse Growers, says the tariffs are going to hurt farmers in western Canada. "Canola and peas are two very important markets for western Canadian farmers," Moats said. "In a world of uncertainty, this just adds a new and disturbing level of uncertainty for us." Prybylski says China and the United States are the province's biggest export markets, meaning any disruption in trade has serious financial consequences for producers. "Anytime there's a tariff like this, it's going to affect prices," Prybylski explained. "When there was talk of tariffs going into the United States, our canola prices took a sharp drop. They've since recovered somewhat, but now they're on a decline again. This is just going to exacerbate the situation." Moats agrees. "If we're shut out of these marketplaces, that would have a very significant and perhaps catastrophic impact on our canola industry," he said. Moats says farmers like himself have no choice but to move forward in this new market reality. "We have no way of impacting what the governments of the U.S. or China do. We're just having to adapt. This will be a test of whether we have the resilience and financial planning to tolerate a shock to our marketplace."
Reuters
12-02-2025
- Business
- Reuters
Drought leaves Canadian farmers unpaid, reveals holes in safety net
Summary Farmers face delayed payments due to grain company bankruptcies Drought worsens financial strain on Canadian farmers Failure of unlicensed companies, complaint deadline, insufficient security seen as holes in farm support REGINA, Saskatchewan, Feb 12 (Reuters) - Canadian farmer Bill Prybylski planned to buy a new tractor with proceeds from crops sold to two grain companies in early 2024. He delivered the grain before both companies declared bankruptcy, leaving him short C$165,000 ($113,487.86) they owed. Now Prybylski has no money to replace his old tractor. Hundreds of Canadian farmers have received delayed payments for their crops or not been paid at all, as a growing number of grain-buying firms declare bankruptcy amid drought and low commodity prices, according to interviews with dozens of farmers, a government agency, and a review of bankruptcy documents. Farmers are discovering they are not necessarily protected from the failures, revealing holes in Canada's farm safety net. The bankruptcies are adding to farmer troubles in Canada, the world's top canola and No. 3 wheat producer, while they also brace for tariffs from the United States. Prybylski, who farms in Willowbrook, Saskatchewan, is relying on a line of credit to cover the shortfall until he harvests the next crop in autumn. "Where do we cut our expenses? Or how do we get more revenues to do the things we need to do?" Prybylski asked. As planting season approaches, he needs to buy fertilizer, seed and fuel. Farmers can sell crops to companies that operate storage terminals, merchants and other farmers who fatten livestock. They are generally paid a few weeks after they deliver grain and have long incurred most of their costs, a problem for those who deliver to a buyer that goes broke before paying. Canadian farmers have some financial protection through the federal government-run Canadian Grain Commission, which regulates crop transactions, oversees grain company failures and at times covers some of what farmers are owed by failed companies. The CGC pays compensation from bonds and other security that licensed companies are required to post. The CGC managed four company failures in 2024, compared to zero or one most years, and the most since at least 2001, according to government data. But some unlicensed companies have also failed, suggesting the troubles may be broader. Farmer Christi Friesen said grain buyer Agfinity tried to delay paying her for three loads of peas, though it ultimately paid the C$75,000 it owed plus interest. Agfinity declared bankruptcy on November 25. "I needed to fight," said Friesen, who farms 5,000 acres (2,023 hectares) of cropland in Alberta's Peace region. "I kept being a pain in the ass." Discovering that some failing companies, such as Agfinity, are unlicensed, has alarmed farmers, as has finding out that some licensed companies are not fully insured. The situation "has fully exposed that we are not secure," said southern Saskatchewan farmer Cherilyn Jolly-Nagel. Companies directly buying crops from farmers must, by law, be licensed with the CGC, with few exceptions. For legal enforcement, the agency must complain to the Public Prosecution Service of Canada, which then decides whether to take action. The CGC has not made such a complaint in at least seven years, said spokesperson Christianne Hacault. Other flaws in farmer protections are the CGC's requirement that farmers report non-payment within 90 days, and licensed firms who fail to post adequate security, farmers say. The CGC is holding consultations with farmers about its protection system, Hacault said. "We know there are gaps." The federal agriculture minister's office, which oversees the CGC, did not respond to a request for comment. Agfinity owner Joseph Billett told Reuters that reduced sales due to smaller crops, farmers' reluctance to sell at low prices and competition from imports of U.S. corn to feed cattle pushed the company over the edge. "These three factors made profitability very challenging, and for us, impossible, these past few years," Billett said. DUST BOWL Farmers in the western half of Canada's Prairies have grown stunted crops for four years due to dry conditions. In some places, farmers say they are facing the worst prolonged drought since the 1930s Dust Bowl. Crop insurance claims between 2021 and 2024 shot up seven-fold compared to the previous four-year period due to drought-damaged crops, according to agencies in Alberta and Saskatchewan. Numerous small grain companies, brokers and merchants are among Canadian crop buyers, unlike some countries that are dominated by global players. In the United States, farmers also had low prices to deal with, but their crops had better growing conditions, allowing them to salvage revenue. Some states regulate grain companies so that farmers have protection against non-payment, but the situation varies state-to-state. In Canada, some companies have avoided bankruptcy, but are still struggling. Farmer-built North West Terminal in Unity, Saskatchewan, said in September it would stop buying grain at least through July to avoid losses. In an interview, NWT CEO Jason Skinner said intense competition to buy reduced crops hit his company, though it has avoided bankruptcy. "We've seen some significant headwinds and . . . margins that aren't covering costs," Skinner said. In May, LSM Grain picked up two truckloads of red lentils, worth about C$50,000, from Saskatchewan farmer Kelly Arthurs, but did not pay him. The CGC revoked LSM's license in July. The company could not be reached for comment. Arthurs complained to the CGC within 90 days of delivering his grain and was eventually compensated. But 17 farmers owed a combined $842,000 by LSM waited too long and will not qualify for compensation, according to a bankruptcy document and the CGC. Prybylski is one of them. Global Foods and Ingredients also went broke owing Prybylski money in the spring. He submitted his complaint in time to qualify for coverage, but only received 75% of what he was owed because Global had posted insufficient security. A law firm representing Global Foods did not respond to a request for comment. Arthurs said he felt so much stress from months of fighting to get paid that he may quit farming. "It's time to retire." ($1 = 1.4295 Canadian dollars)
