SHAUNAVON — As planting season approaches in southwest Saskatchewan, the canola trade war with China is becoming a major concern.
China is one of the top markets for Canadian canola seed, with an export value of $4.9 billion in 2024. China was expected to purchase approximately 70 per cent of Canadian canola shipments.
However, recent developments in the trade relationship between Canada and China have led to the imposition of tariffs. In response to Canada's 100 per cent tariff on electric vehicles from China, China has introduced its tariffs, including a 100 per cent tariff on canola oil and canola meal.
These tariffs are having a significant impact on farmers, particularly those in Western Canada, who are now faced with the decision of whether to continue planting canola. With multiple factors at play, it ultimately falls to farmers on the front lines to decide whether they can make a profit from canola.
Lawrence Friesen, a longtime farmer from the Wymark-McMahon area of Saskatchewan, has already made up his mind.
"I grew canola last year, and the crop was poor because of the lack of rain," said Friesen. "I needed a significantly better yield than 30 bushels an acre to break even, and my crop did 10 bushels per acre"
Citing high input costs and the tariffs, Friesen has decided to switch out canola for another crop this year.
Many farmers, like Friesen, will have to take a serious look at their options before seeding begins soon.
As Friesen noted, "You don't know where the price is going to land in fall," and "farmers need to either do well or break even"
With the current trade uncertainty, farmers will have to carefully consider their planting decisions to ensure a profitable harvest.
