Ottawa Announces Ag Sector Support Amid Tariffs

With Canadian producers facing Chinese tariffs and threatened levies from the US, the federal government has announced new support for the agricultural sector. 

The federal government said Saturday it is increasing the compensation rate under the AgriStability program from 80% to 90%, as well as doubling the current payment cap to $6 million for the 2025 program year. Temporarily doubling the AgriStability payment cap, which has not been updated in over 20 years, would ensure that more producers receive support at a level appropriate to their farm size, said a government statement. 

The agriculture sector is “experiencing multiple challenges,” including the tariffs imposed by China, trade uncertainty with the US, and other risks like animal disease, the statement added. 

To get money to producers faster, Ottawa said it 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 an outbreak 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% 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 statement added. 

China last week imposed 100% tariffs on canola oil, canola meal and peas, as well as 25% tariffs on certain pork, fish and seafood products. The trade action is in response to earlier Canadian tariffs on imports of Chinese EVs, as well as aluminum and steel. Meanwhile, US President Donald Trump has threated 25% tariffs on US imports of most Canadian goods, including more than $17 billion in annual Canadian grain and grain products. The American levies could be imposed as early as next month. 

AgriStability is cost-shared between the federal and provincial/territorial governments with the federal government contributing 60% and the provincial/territorial government contributing 40% of the costs