OFA welcomes opportunity to work with federal government on resolution to fertilizer tariffs

The Ontario Federation of Agriculture (OFA) said in a news release Dec. 16 that it looks forward to continuing work with the Canadian government to find a fair resolution to tariffs that have been applied to fertilizer imported from Russia.

The tariffs were applied by the Canadian government in response to the Russian invasion of Ukraine in February.  On Dec. 13, Finance Minister Chrystia Freeland announced Canada will use $115 million, including revenue from the fertilizer tariff, to support the rebuilding of the Ukrainian power grid infrastructure damaged in the war.

[RELATED] Eastern Canadian farm groups call for refund on fertilizer tariff payments

However, Ms. Freeland also assured Ontario farmers she will continue to work with federal Agriculture Minister Marie-Claude Bibeau, Parliamentary Secretary Francis Drouin and farmers on a fair resolution to the tariff matter.

“The OFA has and continues to stand with the people of Ukraine and strongly condemns the illegal invasion by Russia,” says Peggy Brekveld, OFA president.

“We are also supportive of the federal government’s efforts to provide support and aid to Ukraine to urgently rebuild Kyiv’s power grid.

“Regarding collected fertilizer tariff dollars, the conversations continue, and we hope that the government is in a position to announce its plan to support farmers in Ontario and eastern Canada in the coming days and weeks ahead.”

The fertilizer tariff has driven up input costs for Ontario farmers, which in turn drives up food prices. Fertilizer costs for Ontario farmers in 2021 was more than $1.2 billion, which supported growing food on more than 6.8 million acres of farmland. According to research from Ridgetown College at the University of Guelph, 2022 urea prices have jumped 97 per cent, and mono-ammonium phosphate prices have increased 47 per cent.

“These tariffs have hit Ontario farmers particularly hard due to imported fertilizer,” Brekveld said.  She noted that most orders for fertilizer were placed before Russia’s show of aggression with Ukraine, but the tariffs were still applied. “The OFA has been working closely with federal officials to find a solution that continues to support relief in Ukraine while also ensuring fair treatment for eastern Canadian farmers who have paid more than $35 million in tariffs so far.”