Ontario farmers navigate trade uncertainty while pushing for progress

Trade and tariffs continue to be one of the biggest sources of uncertainty facing farmers today. That reality was front and centre again this year as the Ontario Federation of Agriculture, alongside the Canadian Federation of Agriculture, attended the American Farm Bureau convention for the second year in a row.

I farm with my family near Binbrook in the city of Hamilton, growing crops, raising horses and producing high quality milk and beef. I’m also the president of the OFA and I always welcome the opportunity to meet with fellow farmers, whether here in Ontario, across Canada or internationally.

What stood out most in those conversations with U.S. farmers and farm leaders was how similar the challenges are on both sides of the border. Farmers in Canada and the United States are both dealing with shifting trade policies, geopolitical tensions, and market volatility that make it difficult to plan and invest with confidence. That’s on top of weather, pests and diseases and rising production costs.

When tariffs and other policy changes are imposed, delayed, or changed with little warning, the impacts ripple quickly through farm businesses, suppliers, processors, and rural communities. That’s why recent developments on the Canada – China front are welcome news for Canadian agriculture.

The federal government recently announced that China will lower tariffs on Canadian canola seed to a combined rate of 15 per cent from the current level of 84 per cent by March 1, 2026. In addition, tariffs on Canadian canola meal and peas will be removed from March until at least the end of 2026.

Canada is the world’s largest exporter of canola, and China is our second largest market, so these changes represent meaningful progress for farmers who have been under intense pressure. The agreement does not yet address Chinese tariffs on other important agricultural products such as canola oil or pork, but it is an important step forward. We are also encouraged by signals that beef and pet food exports are expected to resume, which would bring further relief to affected sectors.

This deal is welcome progress for farmers who have been dealing with trade challenges on a number of fronts, and we encourage the federal government to continue its work to resolve outstanding agricultural trade issues. The OFA will continue to actively engage with all levels of government, our members and county federations, other industry stakeholders, and our national partners at the CFA on issues related to tariffs and trade that affect all farmers here in Ontario and across the country.

We’re also calling on the federal government to keep expanding and diversifying our trade relationships. Agreements like the Canada–Indonesia Comprehensive Economic Partnership Agreement, which eliminates or reduces tariffs on beef, pork, soybeans, and canola while locking in duty-free access for wheat, are an important part of that strategy.

Ongoing work with markets such as the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay), India, and others will be critical to reducing our reliance on any single trading partner and strengthening long-term resilience.

Despite growing diversification, however, the fact remains that approximately 60 per cent of Canada’s agriculture and agri-food exports go to the United States and that they remain our largest, most significant trading partner. That’s why it’s critical that we find a way to push ahead with the Canada-U.S.-Mexico Agreement (CUSMA) joint review this year that will satisfy and benefit all three countries.

Extending CUSMA without interruption supports our North American goals to supply consumers with an affordable, stable food supply and increased food security – the ability to produce as much of our own food and farm products as possible. These are critical elements of national security and farmers need ongoing support to help weather the storm created by global uncertainty.

As famers continue to see inflationary pressures from tariffs and cost of production increases caused by this uncertainty, OFA and others have been urging the federal government to permanently increase the interest-free portion of the Advance Payments Program to $350,000 from its current level of $100,000. This increase supports the purchasing power for a farm business and cash flow when its critical and supports an extended marketing window for farm produce.

OFA also continues to work with partners pressing for meaningful improvements to business risk management programming. We’ve recently asked the provincial government to accelerate the phased-in implementation of the $100 million funding increase for the Risk Management Program and Self-Directed Risk Management Program they announced last year to support challenging situations through the market uncertainty we’re facing.