Grain Growers of Canada react to U.S. tariffs

Glacier FarmMedia—Canadian grain farmers are bracing for significant economic hardship following the United States’ decision to impose a 25 per cent tariff on Canadian grain and grain products.

The Grain Growers of Canada is now urging the Canadian government to take immediate action to eliminate the tariffs, highlighting the potential for widespread market instability, increased financial burdens on Canadian crop producers and increased food costs for American consumers.

The newly implemented tariffs threaten a vital trade relationship, with Canada exporting more than $17 billion worth of grain and grain products to the U.S. annually.

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Canadian Federation of Agriculture executive director Scott Ross said the CFA has been working for months on a plan to help support the industry and producers around the country, focusing on three main points.

Kyle Larkin, executive director of GGC, expressed deep concern.

“Tariffs of this magnitude will put family-run grain farms at risk by introducing widespread market uncertainty,” he said.

Canada, which exports more than 70 per cent of its grain production globally, relies heavily on international markets. The tariffs are expected to drive down farmgate prices for key crops such as wheat, canola, oats, barley, and pulses, making it increasingly difficult for farmers to remain financially viable.

“As price takers, grain farmers are at the whim of the global markets that we export to,” said Tara Sawyer, chair of GGC and an Alberta grain farmer.

“Margins are already razor thin, and an added financial burden like this could put the future of many family farms in jeopardy.”

Added Larkin: “Canadian family run grain farms are already facing death by a thousand cuts through increased input costs, regulatory burdens and taxation.…

“Uncertainty with our largest trading partner for grain and grain products, on top of ongoing instability with our second-largest trading partner, China, could push many family farms to the brink.”

GGC argues that the tariffs will negatively impact American consumers.

“A 25 per cent tariff on Canadian grain and grain products is in effect a 25 per cent tax on American consumers who purchase groceries every day,” said Larkin.

He predicted price increases for a range of everyday products, including bread, pasta, beer, oatmeal and canola oil, which will exacerbate the current affordability crisis.