Latest news with #SaskOilseeds
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.
Yahoo
4 days ago
- Business
- Yahoo
Canadian farmers reel as China blocks top canola seed market
By Ed White WINNIPEG, Manitoba (Reuters) -Canadian farmers are reeling from China's decision to impose hefty duties on their canola seed, after the surprise move spooked grain buyers into halting purchases and stoked worries there will be little demand for crop deliveries this autumn. China hit Canadian canola seed imports with preliminary 75.8% duties on Tuesday following an anti-dumping investigation, escalating a year-long trade dispute. Grain buyers reacted by yanking their bids to buy crops in the next few months, said Dale Leftwich, the policy manager for SaskOilseeds. "It throws everything into confusion," said Leftwich, whose organization represents oilseed growers in Saskatchewan. "It's a huge hit." China is by far Canada's biggest canola seed market and will not be easy to replace, canola trade experts told Reuters. Canada exported almost C$5 billion ($3.63 billion) of canola products to China in 2024, about 80% of which was seed, and the steep duties would likely all but end those Chinese imports if they are maintained. Futures prices fell as much as 6.5% on Tuesday, hitting a four-month low at one point, and some traders said prices could fall further if the Chinese tariffs linger. China did not say on Tuesday how long the duties would last. A permanent decision on tariffs was expected for September but the preliminary duty had some wondering whether the timeline might be extended. Farmers sell their crops to local grain elevator companies who temporarily store the grain, before loading it onto trains and then ships for export to overseas markets like China. Grain elevator companies are worried they will not be able to ship out canola seed that they buy from farmers, so are unlikely to buy more until they have a clear sense of what will happen, traders said. Farmers are wondering how they are going to pay the bank and cover bills, said Saskatchewan farmer Chris Procyk, who was having an early morning coffee with his wife when he received a flood of texts and emails about the Chinese trade action. With the Canadian canola crop maturing and within days or a few weeks of harvest, selling the crop quickly is vital for farmers who need to cover bills for expensive inputs like fertilizer that they bought on credit. "This is the worst possible time," Procyk said. ($1 = 1.3778 Canadian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
4 days ago
- Business
- CTV News
Canadian farmers reel as China blocks top canola seed market
Canadian farmers are reeling from China's decision to impose hefty duties on their canola seed, after the surprise move spooked grain buyers into halting purchases and stoked worries there will be little demand for crop deliveries this autumn. China hit Canadian canola seed imports with preliminary 75.8% duties on Tuesday following an anti-dumping investigation, escalating a year-long trade dispute. Grain buyers reacted by yanking their bids to buy crops in the next few months, said Dale Leftwich, the policy manager for SaskOilseeds. 'It throws everything into confusion,' said Leftwich, whose organization represents oilseed growers in Saskatchewan. 'It's a huge hit.' China is by far Canada's biggest canola seed market and will not be easy to replace, canola trade experts told Reuters. Canada exported almost C$5 billion ($3.63 billion) of canola products to China in 2024, about 80% of which was seed, and the steep duties would likely all but end those Chinese imports if they are maintained. Futures prices fell as much as 6.5% on Tuesday, hitting a four-month low at one point, and some traders said prices could fall further if the Chinese tariffs linger. China did not say on Tuesday how long the duties would last. A permanent decision on tariffs was expected for September but the preliminary duty had some wondering whether the timeline might be extended. Farmers sell their crops to local grain elevator companies who temporarily store the grain, before loading it onto trains and then ships for export to overseas markets like China. Grain elevator companies are worried they will not be able to ship out canola seed that they buy from farmers, so are unlikely to buy more until they have a clear sense of what will happen, traders said. Farmers are wondering how they are going to pay the bank and cover bills, said Saskatchewan farmer Chris Procyk, who was having an early morning coffee with his wife when he received a flood of texts and emails about the Chinese trade action. With the Canadian canola crop maturing and within days or a few weeks of harvest, selling the crop quickly is vital for farmers who need to cover bills for expensive inputs like fertilizer that they bought on credit. 'This is the worst possible time,' Procyk said. (Reporting by Ed White)
Yahoo
4 days ago
- Business
- Yahoo
Canadian farmers reel as China blocks top canola seed market
By Ed White WINNIPEG, Manitoba (Reuters) -Canadian farmers are reeling from China's decision to impose hefty duties on their canola seed, after the surprise move spooked grain buyers into halting purchases and stoked worries there will be little demand for crop deliveries this autumn. China hit Canadian canola seed imports with preliminary 75.8% duties on Tuesday following an anti-dumping investigation, escalating a year-long trade dispute. Grain buyers reacted by yanking their bids to buy crops in the next few months, said Dale Leftwich, the policy manager for SaskOilseeds. "It throws everything into confusion," said Leftwich, whose organization represents oilseed growers in Saskatchewan. "It's a huge hit." China is by far Canada's biggest canola seed market and will not be easy to replace, canola trade experts told Reuters. Canada exported almost C$5 billion ($3.63 billion) of canola products to China in 2024, about 80% of which was seed, and the steep duties would likely all but end those Chinese imports if they are maintained. Futures prices fell as much as 6.5% on Tuesday, hitting a four-month low at one point, and some traders said prices could fall further if the Chinese tariffs linger. China did not say on Tuesday how long the duties would last. A permanent decision on tariffs was expected for September but the preliminary duty had some wondering whether the timeline might be extended. Farmers sell their crops to local grain elevator companies who temporarily store the grain, before loading it onto trains and then ships for export to overseas markets like China. Grain elevator companies are worried they will not be able to ship out canola seed that they buy from farmers, so are unlikely to buy more until they have a clear sense of what will happen, traders said. Farmers are wondering how they are going to pay the bank and cover bills, said Saskatchewan farmer Chris Procyk, who was having an early morning coffee with his wife when he received a flood of texts and emails about the Chinese trade action. With the Canadian canola crop maturing and within days or a few weeks of harvest, selling the crop quickly is vital for farmers who need to cover bills for expensive inputs like fertilizer that they bought on credit. "This is the worst possible time," Procyk said. ($1 = 1.3778 Canadian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 days ago
- Business
- Reuters
Canadian farmers reel as China blocks top canola seed market
WINNIPEG, Manitoba, Aug 13 (Reuters) - Canadian farmers are reeling from China's decision to impose hefty duties on their canola seed, after the surprise move spooked grain buyers into halting purchases and stoked worries there will be little demand for crop deliveries this autumn. China hit Canadian canola seed imports with preliminary 75.8% duties on Tuesday following an anti-dumping investigation, escalating a year-long trade dispute. Grain buyers reacted by yanking their bids to buy crops in the next few months, said Dale Leftwich, the policy manager for SaskOilseeds. "It throws everything into confusion," said Leftwich, whose organization represents oilseed growers in Saskatchewan. "It's a huge hit." China is by far Canada's biggest canola seed market and will not be easy to replace, canola trade experts told Reuters. Canada exported almost C$5 billion ($3.63 billion) of canola products to China in 2024, about 80% of which was seed, and the steep duties would likely all but end those Chinese imports if they are maintained. Futures prices fell as much as 6.5% on Tuesday, hitting a four-month low at one point, and some traders said prices could fall further if the Chinese tariffs linger. China did not say on Tuesday how long the duties would last. A permanent decision on tariffs was expected for September but the preliminary duty had some wondering whether the timeline might be extended. Farmers sell their crops to local grain elevator companies who temporarily store the grain, before loading it onto trains and then ships for export to overseas markets like China. Grain elevator companies are worried they will not be able to ship out canola seed that they buy from farmers, so are unlikely to buy more until they have a clear sense of what will happen, traders said. Farmers are wondering how they are going to pay the bank and cover bills, said Saskatchewan farmer Chris Procyk, who was having an early morning coffee with his wife when he received a flood of texts and emails about the Chinese trade action. With the Canadian canola crop maturing and within days or a few weeks of harvest, selling the crop quickly is vital for farmers who need to cover bills for expensive inputs like fertilizer that they bought on credit. "This is the worst possible time," Procyk said. ($1 = 1.3778 Canadian dollars)
