‘Happy to see progress’: Saskatchewan canola producers react to tariff deal

Allison Bamford speaks with a farmer in Saskatchewan about the impact of Canada's new deal with China and how it provides a bit of certainty moving forward.

In an industry where almost nothing is guaranteed, word that China will slash its punishing tariffs on canola and peas is offering Saskatchewan producers a bit of predictability.

Canola producer Dean Roberts set his alarm for 3 a.m. this morning just to check for any trade developments that might come out of the prime minister’s meeting with the Chinese president.

“I’m very happy to see progress,” said Roberts, who is board chair for Sask Oilseeds. Beijing is expected to drop canola seed tariffs to 15 per cent by March 1.

Canadian canola meal and peas will no longer be subject to Chinese “anti-discrimination” tariffs from March until at least the end of the year.

“At this point, we’re very much welcoming the certainty that a deal brings,” Roberts said.

Roberts farms near Coleville, Sask., about 215 kilometres southwest of Saskatoon.

Canola typically makes up about 25 per cent of what he grows.

The yellow plant is often considered a cash crop that helps farmers turn a profit. However, prices dropped, and trade essentially halted when Chinese tariffs came into play last March. It’s estimated the industry lost billions of dollars as a result.

“We had a very good crop this year, so we had lots of grain to market. But finding a place for that crop to enter the world market has been a concern,” he told CTV News.

“With the trade environment we were operating under, canola couldn’t be counted on.”

Some farmers held off on selling their crops in hopes that tariffs would lift and prices would improve. Others were forced to sell to cover costs.

In general, profitability is questionable heading into this growing season, Roberts said. Producers have been at odds with what to grow because nothing looks to be very profitable with current prices.

Canola prices are a little lower than they were a year ago, according to Stuart Smyth, a professor of agriculture and bioresources at the University of Saskatchewan. But they have rebounded since plummeting last March.

Smyth expects the amount of canola planted this year will be on par with the 10-year average.

“I think there is significantly more upside potential in the canola commodity price than there is downside at this point in time,” he said.

Canola oil was not mentioned in the agreement. It is subject to a 100 per cent tariff. But those in the industry say it was more important to lower the tariffs on canola seed since most of Canada’s oil goes to the United States.

The deal with China gives growers time to adjust their spring seeding plans before they hit the fields in April.

“We have to plant something. We don’t get paid to leave the land idle, so this provides some optimism,” said pulse grower Terry Youzwa.

Youzwa farms near Nipawin, Sask., about three hours northeast of Saskatoon. Like many producers, he’s held off on selling his peas that have been subject to a 100 per cent tariff.

He said market prices were already showing slight improvements after Canada announced the deal with China. He’s hoping the trend continues in the coming weeks leading up to March 1 when most of the tariffs are dropped.

“We look forward to that getting back on track,” he said.