GFO Sends End Fertilizer Tariffs to Boost Farm Profit

GFO Sends End Fertilizer Tariffs to Boost Farm Profit
Sep 03, 2024
By Jean-Paul McDonald
Assistant Editor, North American Content, Farms.com

By Jean-Paul MacDonald
Farms.com

A new industry report by StoneX has cast a spotlight on the detrimental effects of fertilizer tariffs on the agricultural sector in Ontario – and the country.

Representing 28,000 farmers, the Grain Farmers of Ontario have voiced a strong appeal for the Canadian government to lift these tariffs, which are undermining the competitiveness of local farmers.

The report underscores that global disruptions in the fertilizer market—such as high prices and limited supplies exacerbated by tariffs have placed undue stress on Canadian farmers.

“The imposition of tariffs on some fertilizers has had a profound impact on our agricultural industry,” says Jeff Harrison, Chair, Grain Farmers of Ontario. “Farmers across the country are facing increased costs and tighter inventories, which jeopardize their ability to maintain productive and profitable operations. Removing these tariffs is a critical step toward stabilizing the supply chain and ensuring that our farmers have access to the fertilizers they need at affordable prices.”

In response, the StoneX report suggests several key measures:

  • Removing tariffs on Russian fertilizer imports to alleviate cost pressures.
  • Building robust relationships with leading global fertilizer exporters.
  • Implementing subsidies to make fertilizers more affordable.
  • Supporting the construction of new nitrogen facilities.
  • Incentivizing Canadian producers to modernize existing ammonia facilities.
  • Enhancing the efficiency of the national fertilizer supply chain.
  • Investing in partnerships with countries rich in phosphate resources.

These recommendations aim to reposition Canada as a frontrunner in agricultural stability and food security.

The call for action is clear: the government needs to respond decisively to protect its agricultural sector by eliminating fertilizer tariffs and implementing the report’s strategic recommendations. 

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