Grain farmers look for fertilizer tariff compensation

Farm groups from eastern Canada are calling for compensation for fertilizer tariffs which are disproportionately affecting farmers in that region.

The Canadian government placed a 35 per cent tariff on all imports of fertilizer from Russia on March 3 in response to its invasion of Ukraine.

Why it matters: Canadian crops are uncompetitive as the only ones grown with a tariff on fertilizer.

Ontario, Quebec, and Atlantic Canada rely heavily on fertilizer imports. Approximately 660,000 – 680,000 tonnes of nitrogen fertilizer are imported from Russia to Eastern Canada each year, which represents between 85-90 per cent of the total nitrogen fertilizer used in the region.

The farm groups are joined by the fertilizer sector in asking for compensation, along with removal of tariffs by fall planting.

Canada is the only G7 country that has put a tariff on fertilizer and puts it at a disadvantage against international competitors.

“We need compensation for farmers negatively impacted by the tariffs, and we want a secure and reliable supply of fertilizer so we can roll up our sleeves and do our part to help the world through this crisis,” said Brendan Byrne, chair, Grain Farmers of Ontario.

A statement from the organizations said, “Our industry strongly supports the people of Ukraine and condemns the Russian invasion. We also support sanctions and other measures imposed by the Canadian government and our allies aimed at quickly ending the war. However, action by the Canadian government should not jeopardize Canada’s capacity to produce food today or in the future.”

“Farmers bore the costs of tariffs which has put Canadian farmers at a disadvantage to farmers in other countries who did not have tariffs on fertilizers,” said Christian Overbeek, chairman, Québec Grain Farmers.

“The fall planting season is quickly approaching as well as procurement preparations for 2023,” said Russel Hurst, executive director, Ontario Agri Business Association. “Compensation for growers and predictability for industry will be important in the coming months as Canada’s agriculture industry steps up to do our part in this global crisis.”

The group represents the Canadian fertilizer sector as well as farm groups representing more than 50,000 farmers. This includes Atlantic Grains Council, Christian Farmers Federation of Ontario, Fertilizer Canada, Grain Farmers of Ontario, Ontario Agri Business Association, Ontario Bean Growers, Ontario Canola Growers, Québec Grain Farmers, Sollio Agriculture, and Sylvite Agri-Services.