Growers reduce canola acres amid China tariffs

Farmers in Westman are rethinking their crop choices as trade tensions between Canada and China continue to impact canola exports.

With China imposing retaliatory tariffs on Canadian canola oil and meal, growers are reducing their canola acreage and diversifying into other crops such as oats, soybeans, wheat, and even perennial forage crops to stabilize operations.

Canola oil and meal are the key export products from the region affected by the tariffs. Canola seed is not included in the tariff regime.

In March, China announced retaliatory tariffs on more than $2.6 billion worth of Canadian agricultural and food products, including a 100 per cent tariff on its imports of Canadian canola and peas. The move is a response to the levies Ottawa introduced last October.

The Chinese commerce ministry said the tariffs, which took effect on March 20, match the 100 per cent and 25 per cent import duties Canada slapped on Chinese-made electric vehicles and steel and aluminum products last year.

In response to the new tariffs, farmers had to adjust their planting strategy, Black Creek Farm owner Simon Ellis told the Sun on Monday.

“We’ve reduced our canola acreage by about 10 per cent this year,” Ellis said. “We’ve replaced it with oats and added a few more acres of soybeans.”

While canola remains an essential part of crop rotation, he said, the uncertainty in international markets has prompted farmers like him to adapt.

Although canola prices have recently shown signs of strength, suggesting that exporters are finding alternative markets, Ellis expects overall acreage across the region to decline, though not as sharply as initially feared.

“My expectation is canola will likely be down … though maybe not too much compared to where we had initially thought.”

Ellis added there are practical advantages in switching to oats and soybeans.

“Those two crops work well in our rotation, and we have good experience growing them, so we are usually successful.”

However, he said current demand for these alternatives is relatively stable and heavily dependent on U.S. trade policy.

“If the U.S. puts tariffs on, that could affect oat prices significantly,” he warned.

At Boyd’s Beef, Ryan Boyd sees the issue in broader economic and political terms.

“The canola market is being tariffed by China as retaliation for Canada following the U.S. lead on tariffs against Chinese electric vehicles,” Boyd said. “It’s ridiculous. The canola market is what drives agriculture here in Western Canada, and we’re sacrificing it to make a political point.”

Boyd, whose diversified operation includes cattle, wheat and canola, believes diversification is key to survival.

“We’re seeing more farmers shift to soybeans and corn. The volatility has shown that relying too heavily on one or two crops leaves us exposed,” he said.

Boyd also emphasized the long-term benefits of incorporating perennial hay and other forage crops into rotations, which not only support cattle operations but also improve soil health.

To weather market volatility, Boyd’s farm is also investing in additional grain storage infrastructure.

“We’re increasing our storage capacity so we’re not forced to sell during trade disruptions,” he said, adding that it’s part of a broader strategy that includes securing access to credit and ensuring cash flow during downturns.

Both Ellis and Boyd pointed to environmental challenges this season as well, with a particularly dry spring raising concerns about soil moisture and fire hazards.

“We’re seeding a little bit deeper right now,” Ellis said, “hoping we catch a rain later this week.”

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