Local Canola Farmers Focus on Quality Crop Despite Tariffs: It’s “Out of Our Control”
China upped the stakes in the tariff war this week, imposing 76 percent tariff on Canadian canola seed, heaping more stress upon farmers already seeing lower prices for canola due to China’s earlier 100 percent tariffs on canola oil and canola meal. These tariffs are China’s response to the Canadian government’s tariffs on Chinese electric vehicles, steel and aluminum.
When the latest tariff was announced, the price per bushel for canola immediately dropped, putting a bigger strain on a sector that’s already seeing low prices.
Volatility in the market is something canola growers are used to, but as China is Canada’s second largest market for canola, it’s becoming worrisome for farmers.
“China is a big market, and that’s a little nerve-wracking because we put a lot of money into this crop,” said Malcolm Odermatt, BC Grain Producers president and North Peace canola farmer.
“We did have some rain, so there’s actually a few bushels out there, so we should do okay this fall. It’s just whether or not we can make money on it, that’s out of our control,” he said.
Canola is by far the most expensive crop for farmers to grow, Odermatt explained.
“It’s very hungry for nutrients, and nutrients are expensive. The seed is also very expensive, because 95 percent of the canola we grow is genetically modified and have to pay the big companies for that technology.”
The equipment is also very expensive, with combines costing around $1.3 million. Unlike homes that can be paid for over 25 years, farmers have between three and six years to pay for a combine.
"Those are some big payments.”