By Alice McFarlane

Feds announces $370 million to support canola farmers as China extends anti-dumping investigation

Sep 5, 2025 | 1:50 PM

The federal government is coming through with a new $370 million production incentive to help Canada’s canola producers.

Prime Minister Mark Carney said its new biofuel production incentive is meant to address “immediate competitiveness challenges” as China imposes massive tariffs on Canadian canola seed.

“Given all those changes, given the rupture, we can’t rely on our most important trading partner as we once did,” Carney said.

The government will also amend its Clean Fuel Regulations to support the biofuels industry.

Support for the incentives is coming from other agricultural sectors.

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The Canadian Pork Council (CPC) said it supports the decision to assist Canada’s agriculture producers due to increased trade uncertainty.

CPC chair René Roy said producers were caught in tariff challenges not of their own making.

“Our industry can sometimes be impacted by decisions not involving our industry. The Prime Minister’s announcement today is a recognition that pork, canola and seafood producers have been impacted by decisions unrelated to the quality of our products,” he added.

Carney announced improvements to the Advanced Payments Program, increases in AgriMarketing funding, boost funding to support diversification to new markets and explore more ways to bring affordable EVs to Canada.

Roy said CPC welcomes the recognition of agriculture’s crucial role in the Canadian economy.

“Growth in the economy will come from the agriculture sector, and our pork sector, in particular, offers significant promise for growth,” Roy said. “We look forward to continuing our work with the Government of Canada, and governments at the provincial level, to increase our sector’s economic impact for all Canadians.”

In addition to today’s announcement from Prime Minister Carney, China’s Ministry of Commerce (MOFCOM) announced that it has extended its anti-dumping investigation into canola seed imports from Canada until Mar. 9, 2026.

The anti-dumping investigation was initiated on Sept. 9, 2024, and was due to be completed within a year, with the possibility of an extension of up to six months.

In a joint statement, the Canola Council of Canada (CCC) and Canadian Canola Growers Association (CCGA) said they were hopeful the extension signals a willingness by the Canadian and Chinese governments to work towards a timely resolution to the tariff issues, having a widespread impact on the Canadian canola value chain.

“With farmers currently in the field harvesting this year’s crop, the need for action by government is urgent,” the statement said.

Since the beginning of China’s anti-dumping investigation, the Canadian canola industry has been consistent in its position that Canada’s canola trade with China is aligned with and supports rules-based trade, fair market access, and competitiveness

CCC and CCGA said China is a highly valued market, and the Canadian canola industry has and will continue to work to meet Chinese customers’ and food security needs.

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alice.mcfarlane@pattisonmedia.com