Farmer demand for low-cost loans surging, growers group says
24 March 2025
2 minute learn
Canadian farmers are dealing with a two-front commerce struggle, with China’s tariffs on Canadian canola oil, canola meal and peas taking impact on Thursday and US tariffs anticipated on further Canadian merchandise inside two weeks, reported Reuters.
The double whammy from two main buying and selling companions makes for a grim temper going into spring planting.
“It is a horrible time,” mentioned Calgary space farmer Tara Sawyer of the Chinese language tariffs.
“The seed has already been purchased. The inputs have already been purchased. We have now to seed it. We have now no alternative however to maneuver ahead,” mentioned Sawyer, who grows barley, wheat and canola.
China introduced on March 8 that tariffs on over $2.6 billion price of Canadian agricultural and meals merchandise would kick in on March 20, retaliating in opposition to levies Ottawa launched in October.
The levies match the 100% and 25% import duties Canada slapped on China-made electrical automobiles and metal and aluminum merchandise simply over 4 months in the past.
China mentioned it will apply a 100% tariff to only over $1 billion of Canadian canola oil, canola meal muffins and pea imports, and a 25% responsibility on $1.6 billion price of Canadian aquatic merchandise and pork. It excluded unprocessed canola seed, also called rapeseed.
Canada’s commerce ministry didn’t instantly reply to a request for remark. On March 8, the commerce ministry mentioned Canada was disenchanted with the tariff announcement and remained open to dialogue with Chinese language officers.
China additionally has an ongoing anti-dumping investigation into Canadian canola seed exports, which make up the overwhelming majority of Canada’s canola exports to China.
China is the No. 1 export marketplace for Canadian canola seed, and No. 2 for meal exports, after the US.
China’s announcement got here in the midst of an escalating commerce struggle with the US, the place President Donald Trump on March 6 delayed a broad 25% tariff on some Canadian items for 30 days.
Trump has since imposed tariffs on metal and aluminum imports and threatened reciprocal tariffs on further items together with Canadian dairy and lumber on April 2.
Equipment producers at a Canadian farm present mentioned farmers are shopping for much less new tools, citing low crop costs and the dangers of tariffs.
Farmers seem like getting defensive with funds, securing low cost loans to fund this yr’s crop, however backing away from main purchases.
The Canadian Canola Growers Affiliation, which gives government-backed zero-interest and low-interest loans, reported seeing a surge in mortgage functions.
“We’re positively seeing much more demand,” mentioned Dave Gallant, a vice chairman at CCGA.
“A whole lot of our prospects are very involved about whether or not they’re going to have the ability to promote their product this yr, and what the costs are going to be.”
