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Marie-Claude Bibeau. (Twitter/@mclaudebibeau)
Canadian canola

Canola farmers receive support amidst trade issues

May 1, 2019 | 11:17 AM

Additional supports were announced for farmers as market access issues continue to block canola exports to China.

The Advance Payment Program limit will be increased to one million dollars for all farmers while the interest free portion will increase from $100,000 to $500,000 for canola farmers.

The AgriStability program deadline will be extended by two months, from April 30 to July 2.

While technical discussions have taken place between the two governments, the scientific basis for China’s action remains unclear.

At a news conference this morning in Ottawa, Trade Diversification Minister Jim Carr said this isn’t the first time that Canada has had a trade issue with China.

“We had an issue with blackleg in 2016 and were able to resolve it. The Harper government had an issue in 2009 and we were able to work through it,” Carr said. “So we have some experience in having a science to science conversation with the Chinese about canola. That’s what we seek to do here.”

Agriculture Minister Marie-Claude Bibeau said the government will continue to stand behind its inspection system.

“Protecting Canadian reputation in terms of the quality of our Canadian production and exports, we have to stand by these two very fundamental elements of our relations with importing and exporting countries,” Bibeau said.

Carr said he will be leading a canola trade mission to Japan and South Korea in early June.

“We will be working closely with the sector to identify other opportunities for trade missions in Asia as well,” Carr said. “I will, of course, promote canola in all of my upcoming visits, including in France for a meeting of the OECD and Chile for a meeting of APEC ministers.”

Saskatchewan Agriculture Minister David Marit was very happy with the changes to the Advance Payment Program.

“I know we had asked for the million cash advance interest free but we got a half million interest free but you can go up to the million dollars so this is a good announcement by the federal government this morning,” Marit said. “Obviously it`s going to improve the cash flow to a lot of farmers in rural Saskatchewan and give them the opportunity to access that money through the cash advance program which many know how that process works so they can start that process very soon.”

The Canola Council of Canada (CCC) said the announcement that canola producers will be supported during uncertainty is welcomed news for the sector.

CCC President Jim Everson said the early action to support growers will help until the issues are resolved and canola markets are diversified.

“Timely action to help producers deal with unprecedented uncertainty is good news,” Everson said. “With our largest market for canola seed effectively closed, it’s important for everyone that producers can pay their bills while efforts are made to resolve the issue.”

Everson said the trade minister’s efforts to expand exports to other Asian markets is welcomed.

“It’s an ideal time to bolster our efforts to provide our top quality products to other customers,” Everson said. “We need to seize the opportunity to develop markets, especially in Asia, building on our trade agreements.”

alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF

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