The biofuel production incentive is designed to help address the current challenge with China
The federal government is providing support to Canadian canola farmers.
“We’re acting to protect Canada’s agriculture and seafood industries,” Prime Minister Carney said during a Sept. 5 news conference.
Focusing on canola, the government is creating a new program.
“Canada’s government will introduce a new biofuel production incentive, providing more than $370 million to assist domestic producers and help them restructure their value chains.
“We will make targeted amendments to the Clean Fuel Regulations to spur the development of a vibrant biofuels industry in Canada.”
Biofuel opportunities in Canada appear to be increasing.
Biofuels represent about 5 per cent of transport energy use, Allison Simmonds, a bioenergy and alternative fuels engineering specialist with Natural Resources Canada, wrote in the December 2024 edition of IEA Bioenergy’s Biofuel News.
“Demand for ethanol and bio-based diesels increased by 34% and 42% respectively between 2021 and 2023 due to supportive policies and are expected to continue to increase,” she wrote.
The federal government is also increasing loan availability.
The loan limits for Canadian canola growers will increase to $500,000.
The government also promises to invest in marketing and trade diversification efforts to support all of Canadian ag and seafood industries.
Some producers aren’t satisfied with some of the government’s actions.
Multiple measures don’t provide immediate support because the Chinese tariffs are still in place, said Daryl Fransoo, a Saskatchewan farmer and second vice chair of Grain Growers of Canada.
“The announcements from the federal government do very little today. Canola and pea farmers in western Canada are still facing the brunt of trade policies decided on by our federal government,” he said on X. “It’s long past due to FIX the issue or make farmers whole.
“Fix the PROBLEM instead of pushing it down the line. The announcements made today regarding biofuels is welcomed but it’s a shame it took a $1B+ hit to farmers to make it happen.”
These federal annoncements came a day after the prime minister revealed his parliamentary secretary Kody Blois will participate in a trade mission to China with Saskatchewan Premier Scott Moe related to the 75.8 per cent tariffs China imposed on Canadian canola.
Prime Minister Carney announces the ag support beginning at 22:53 of the video.