Canada’s farmers face trade challenges in 2025
The swearing-in of a new government in Washington, DC, has brought concerns about potential tariffs on Canadian agricultural exports. With approximately 60% of Canada’s agricultural exports heading to the United States, such measures could significantly impact farmers and consumers alike.
Canadian agriculture is deeply interconnected with the U.S., relying on them for livestock feed, machinery, and other essential inputs, reinformces the Ontario Federation of Agriculture (OFA).
Canada exports significant amounts of beef, pork, canola oil, and nearly all greenhouse vegetables to the U.S. Disruptions to this trade could lead to higher costs for farmers, impacting grocery prices for consumers. Despite news that tariffs are not being implemented immediately, agricultural stakeholders stress the need for collaboration.
“We’re all in this together; it’s a Team Canada approach that we need right now.” said Drew Spoelstra, President of the Ontario Federation of Agriculture (OFA).
Collaborative efforts include representatives from Agriculture and Agri-Food Canada (AAFC) and the Canadian Federation of Agriculture (CFA) attending major cross-border agricultural events to reinforce the importance of mutual trade benefits.
Farmers already face multiple challenges, from unpredictable weather to regulatory hurdles and rising costs. “Farming is already a tough business, with weather extremes like floods, drought and storms, as well as pests and diseases that can impact our crops and livestock a constant threat."
"Added to that are an increasingly cumbersome regulatory environment, a growing tax burden at all levels of government, and prices paid to farmers for their products that in some sectors are not keeping pace with inflation and rising production costs.” said Spoelstra.
He also highlights the burden of inflation and production costs that outpace the prices farmers receive for their products.
These challenges underscore the importance of government support. Spoelstra urges the federal government to prioritize food production as a critical national activity and calls for expanded funding for programs like Ontario’s Risk Management Program.
“This underscore more than ever the need for government to step up and support the agri-food sector. Federally, this means prioritizing food production as an activity of critical national importance. In Ontario, this includes expanding funding for the Risk Management Program and other initiatives that provide a safety net for farm businesses in uncertain times like these.” said Spoelstra.
Canada’s agricultural sector contributes significantly to the economy and provides food worldwide.
“We should be proud of our agricultural industry and its ability to feed not just Canadians but also Americans and others around the world and work together to keep the sector strong in ways that will bring benefit to both sides of the border,” said Spoelstra.
Maintaining strong cross-border partnerships remains essential for the prosperity of both nations he says.