Ottawa increases AgriStability cap to help industry as it faces Chinese tariffs

The Canadian government has announced support for the country’s agriculture sector as it deals with tariffs imposed by China.

The federal agriculture department says in a news release that the current payment cap under AgriStability, a program that works similarly to crop insurance, will double to $6 million for the 2025 program year.

Support also includes increasing the compensation rate from 80 per cent to 90 per cent.

Agriculture businesses are facing 100 per cent tariffs from China on canola oil, canola meal and peas, as well as a 25 per cent levy on pork and some seafood products in retaliation for Canada’s tariffs on Chinese-made electric vehicles, steel and aluminum.

Former prime minister Justin Trudeau said those vehicles have an unfair advantage that’s hurting the Canadian auto sector. 

The news release says the Chinese tariffs come as the agriculture sector also deals with trade uncertainty with the United States, and other risks like animal disease.

“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,” Agriculture Minister Kody Blois said in the news release.