{"id":10616,"date":"2025-04-07T12:53:03","date_gmt":"2025-04-07T12:53:03","guid":{"rendered":"https:\/\/www.rbc.com\/en\/?post_type=rbc_tl&#038;p=10616\/"},"modified":"2025-05-09T06:07:33","modified_gmt":"2025-05-09T06:07:33","slug":"the-big-chill-how-canola-farmers-are-adapting-to-trade-blows","status":"publish","type":"rbc_tl","link":"https:\/\/www.rbc.com\/en\/thought-leadership\/the-trade-hub\/the-big-chill-how-canola-farmers-are-adapting-to-trade-blows\/","title":{"rendered":"The big chill:\u00a0How canola farmers are adapting to trade blows"},"content":{"rendered":"\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner pad-b-qtr\" style=\"border-radius:0x\">\n<p><em><strong>Field Notes:<\/strong>&nbsp;How Canadian businesses are navigating trade tensions<\/em><\/p>\n\n\n\n<p>China\u2019s 100% tariff on canola oil and meal has Canadian farmers concerned. That stress level could climb, as China also has its eye on Canadian canola seeds\u2014the largest segment of our canola exports to China\u2014, which have been spared for now. \u201cThat would be the other big shoe to drop,\u201d said Rick White, CEO of the Canadian Canola Growers Association (CCGA), which represents approximately 40,000 farmers across Canada.<\/p>\n\n\n\n<p>Canola was developed by Canadian scientists in the 1960s\u2014hence the name. It\u2019s considered healthy oil as it\u2019s low in saturates (an unhealthy fat) and high in monounsaturates (considered good). Canada is the world\u2019s largest canola producer and counts, with 40,000 farmers generating $43.7 billion, with the U.S., China and Japan\u2014in that order, its three biggest export markets. Australia is among Canada\u2019s biggest canola rivals.<\/p>\n\n\n\n<p>As the Chinese tariffs hit Canadian canola farmers, they are freezing investments and need support. White shared some ideas on ways to soften the blow:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-canola-is-a-popular-china-target\">Canola is a popular China target<\/h2>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-black-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>White says the tariffs were not a surprise, as past disputes with China (2019-2020) had targeted canola.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>China has once again targeted the agriculture sector in direct response to Ottawa implementing tariffs on Chinese EVs, aluminum and steel.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>The industry feels the Canadian government \u201cabsolutely bears the responsibility\u201d of that action and should compensate farmers for the financial losses that they will incur.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Other major canola seed exporting countries include Australia, Ukraine, Russia. Canada specifically grows canola, which is defined as having low erucid acid and low glucosinolates. Australia and the EU are also significant growers of canola or double low rapeseed, which is of comparable quality.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-canola-seeds-in-the-crosshairs\">Canola seeds in the crosshairs<\/h2>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-black-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>A looming Chinese anti-dumping investigation on Canadian canola seed could trigger more tariffs. That\u2019s \u201cthe big shoe to drop.\u201d<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Canola seed is Canada\u2019s primary canola export to China, with canola oil and meal accounting for a smaller portion. In 2024, China imported six million metric tonnes of Canadian canola seed, worth $4 billion.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>The Chinese are following World Trade Organization (WTO) rules around anti-dumping. WTO challenges take time but provide legal recourse. The CCGA has registered as a party to China\u2019s investigation.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-farmers-are-looking-to-freeze-investments\">Farmers are looking to freeze investments<\/h2>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-black-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Farmers rotate crops for agronomic reasons, but canola is a Canadian staple crop, which limits alternatives. Agronomics involves soil and crop management and helps optimize distribution, management and productivity of land.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Farmers are already expressing concerns about market risks from China and the U.S. with some suggesting delays in capital investments and equipment purchases due to uncertainty.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Plus, purchase of new equipment could possibly come from the U.S. that could be subject to countervailing duty by Canada.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>\u201cFarmers are not going to take that risk of investing big pieces of capital into renewing infrastructure \u2026 there\u2019s going to be a big chill on investment, at least this year.\u201d<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-across-the-border-more-trouble-is-brewing\">Across the border, more trouble is brewing<\/h2>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-black-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>The U.S. is Canada\u2019s largest canola export destination, valued at $7.7 billion in 2023. The U.S. has not yet imposed a 25% tariff on canola, as CUSMA (the Canada-U.S.-Mexico Agreement) remains in effect. But once exemptions expire, new U.S. tariffs could further harm Canadian canola exports.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-there-are-ways-to-build-a-tariff-less-ecosystem\">There are ways to build a tariff-less ecosystem<\/h2>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-black-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Last December, the CCGA sent a letter to the federal government, forecasting farm gate losses of between $1.76 billion to $4.33 billion for 2025-26 due to the Chinese tariffs.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Ottawa has announced new&nbsp;<a href=\"https:\/\/www.canada.ca\/en\/agriculture-agri-food\/news\/2025\/03\/government-of-canada-announces-support-for-agricultural-sector-following-the-imposition-of-tariffs-by-china.html\" data-dig-id=\"LP-10616-58f937ac\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"loan products\" class=\"rbc-link-format\">loan products<\/a>&nbsp;to sustain the industry, but farmers argue they cannot borrow their way through this crisis and need cash compensation.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>\u201cThe federal government needs to compensate farmers commensurate with the losses that they will incur because of China\u2026 farmers can\u2019t, nor should they, be expected to borrow their way\u2014they need to be compensated.\u201d<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>The CCGA is advocating for the development of a domestic biofuels and sustainable aviation market.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>It could be a new domestic market for at least 2-3 million tonnes of canola seed. It would help soften the blow for canola farmers, as the risk and uncertainty around U.S. and Chinese markets is going to remain for a long time. It is an opportunity to help diversify and reduce Canada\u2019s heavy dependence on China and the U.S. markets.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-light-grey-color has-alpha-channel-opacity has-light-grey-background-color has-background is-style-wide wide\" \/>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"h-dig-deeper\"><strong>Dig deeper:<\/strong><\/h5>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-black-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><a href=\"https:\/\/www.rbc.com\/en\/thought-leadership\/the-trade-hub\/food-fight-chinas-tariffs-adds-to-exporters-woes\/\" data-dig-id=\"LP-10616-ca8b95a8\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"China\u2019s tariffs add to exporters\u2019 woes\" class=\"rbc-link-format goto-link\" data-icon-class=\"goto-link\">China\u2019s tariffs add to exporters\u2019 woes<\/a><\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><a href=\"https:\/\/www.rbc.com\/en\/thought-leadership\/the-trade-hub\/food-first-how-agriculture-can-lead-a-new-era-for-canadian-exports\/\" data-dig-id=\"LP-10616-6175c660\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Food First: How agriculture can lead a new era for Canadian exports\" class=\"rbc-link-format goto-link\" data-icon-class=\"goto-link\">Food First: How agriculture can lead a new era for Canadian exports<\/a><\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":298,"featured_media":10617,"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"disable_focal_point":true,"featured_image_focal_point":{"x":0.5,"y":0.5},"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"rbc_tl_category":[198],"rbc_tl_tag":[138],"class_list":["post-10616","rbc_tl","type-rbc_tl","status-publish","has-post-thumbnail","hentry","rbc_tl_category-the-trade-hub","rbc_tl_tag-trade"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The big chill:\u00a0How canola farmers are adapting to trade blows - RBC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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