Government of Canada announces support for agricultural sector following the imposition of tariffs by China

OTTAWA, ON, March 22, 2025 /CNW/ - Our hard-working producers provide world-class food to Canadians and the world. Their products meet the highest standards, our inspection systems are robust, and we adhere to rules-based trade.

Following the conclusion of China's domestic 'anti-discrimination' investigation launched against Canada on September 26, 2024, China imposed 100 percent tariffs on canola oil, canola meal and peas, as well as 25 percent tariffs on certain pork, fish and seafood products. The Government of Canada is deeply disappointed by this decision, which will hurt Canadian farmers, harvesters and businesses, and will raise prices and diminish choice for Chinese customers, as well as in the agriculture, fish and seafood, retail, restaurant, and food-preparation industries.

The agriculture sector is experiencing multiple challenges, including the tariffs imposed by China, trade uncertainty with the United States, and other risks like animal disease. To help our hard-working producers get through these challenges, today, the Honourable Kody Blois, Minister of Agriculture and Agri-Food and Rural Economic Development announced supports for the agricultural sector through AgriStability.

AgriStability offers affordable, whole farm protection to support producers when challenges are beyond their capacity to manage. The additional proposed supports include increasing the compensation rate from 80 percent to 90 percent and doubling the current payment cap to $6 million for the 2025 program year.

To get money to producers faster, the Government of Canada has also provided provincial and territorial governments with the option to proactively enter into an agreement to issue interim payments at a higher payment rate and initiate Targeted Advance Payments in the event of tariffs, or for the hog sector in the event of African Swine Fever. In provinces and territories that adopt these enhancements, it would mean producers enrolled in AgriStability will be eligible to apply for an interim payment up to 75 percent of their estimated final payment for the 2025 program year. Additionally, an administrator will be able to establish a Targeted Advance Payment for the 2025 program year, for example, where analysis shows that market disruptions have resulted in a sufficient loss to trigger AgriStability payments for a particular sector or region.

The Government of Canada will always stand up for the Canadian agricultural industry and support their interests and success at home and in markets abroad. The Government of Canada will continue to work with provincial and territorial partners and industry stakeholders moving forward and remains open to engaging in constructive dialogue with China to resolve our trade differences on the basis of mutual respect and equality. 

Quote

"China's decision to apply these tariffs will have a devastating impact on our farm families and their communities. We're working hard to diversify our trading partnerships and establish new markets, but we know the sector needs support now. Today's announcement is a direct result of their advocacy – and our commitment to them. As Canada's Minister of Agriculture and Agri-Food and Rural Economic Development, I will continue to stand shoulder-to-shoulder with our producers and will defend the sector every step of the way."
     -       The Honourable Kody Blois, Minister of Agriculture and Agri-Food and Rural Economic Development

Quick facts

• Canola is Canada's second-largest acreage crop, with over 21 million acres produced annually. It generated $13.6 billion in farm cash receipts in 2023.
• Canadian exports of canola meal to China were valued at $920.9 million in 2024 while exports of canola oil were worth approximately $21 million. Canada's pea exports (dried and fresh) to China were worth $303.6 million in 2024.
• In 2024, Canada exported $468.6 million worth of pork products to China.
• Canada and the United States are important trade partners for agri-food, with bilateral trade in these areas reaching $101.3 billion (CAD) in 2024.
• Temporarily doubling the current AgriStability payment cap to $6 million, which has not been updated in over 20 years, would ensure that more producers receive support at a level appropriate to their farm size.
• AgriStability is cost-shared between the federal and provincial/territorial governments with the federal government contributing 60 percent and the provincial/territorial government contributing 40 percent of the costs.
• Producers are encouraged to take advantage of the business risk management programs at their disposal to help them navigate uncertainty and safeguard their livelihoods, including AgriStability, AgriInvest, AgriInsurance and the Advance Payments Program.
• The second intake of applications for the AgriMarketing, AgriCompetitiveness and AgriDiversity programs, under the Sustainable Canadian Agricultural Partnership, is now open. The AgriMarketing Program helps industry expand exports and seize new market opportunities.
• To support the Canadian agriculture and food industry as U.S. tariffs are implemented, Farm Credit Canada is providing $1 billion in new lending through the Trade Disruption Customer Support program to help alleviate financial challenges.

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SOURCE Agriculture and Agri-Food Canada