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Canola farmers across the Prairies are on track to harvest a strong crop, but fear they might not see a big profit — if any — as tight margins are further squeezed by China's tariffs.
"It's a nice tidy surprise, I think, to see canola production come through as well as it has this year in spite of its challenges," said Rob Stone, who farms near Davidson, Sask., between Saskatoon and Regina.
"Not a gangbuster, but it's certainly not as disappointing as the crops of [20]21, '22 or '23."
However, Stone said the success in the field may not mean much for his pocketbook.
When it comes to cash revenue from crops, canola is typically among the most profitable. But that's taken a big hit this year.
China, which slapped a 75.8 per cent duty on Canadian canola seed last month, is Canada's largest canola seed importer. Canada exported $4.9 billion in canola product to China in 2024, the vast majority of which — $4 billion — was canola seed, according to the Canola Council of Canada.
China's tariff on canola seed, coupled with 100 per cent tariffs on Canadian canola oil and canola meal imposed by China in March, is the cause of much concern among producers across Western Canada.
Canola prices dropped about $30 to $50 per tonne almost immediately after the Chinese tariffs were announced, said Derek Brewin, an agricultural economist at the University of Manitoba. The lower price means it could cost more to grow canola than producers are able to sell it for.
"They're in a tight situation. The thing that has been paying the bills is barely making any money, and so they might be looking at alternatives in the spring." See more.
Source: Online/GFMM
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