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Agriculture This Week: Sector at least gets federal budget mentions

The Mark Carney led Liberal government in Ottawa unveiled its first budget week, and agriculture actually featured more significantly than one might have anticipated.

The two most obvious items have direct farm implications.

  • The federal government proposes to increase the AgriStability compensation rate to 90 per cent from 80 per cent and the payment cap per farm to $6 million from $3 million.
  • The Advance Payments Program for canola will see $97.5 million spent over two years to increase the interest-free limit on advances to $500,000 for the 2025 and 2026 program years.

But it is what might be called agriculture-adjacent items within the budget which might off the greatest intrigue for farmers.

Not surprisingly given the upheaval and uncertainty caused by the prone to change his mind US president Donald Trump, the budget sets a goal to double non-U.S. exports over 10 years.

This is a forced measure to be sure, but even if Trump is out of office at some point – you don’t have to be too far into conspiracy theories to at least wonder if he will leave office quietly – it’s appositive. Growing exports beyond the US simply diversifies options for Canada if things were to settle back to a pre-Trump reality.

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Canada reaches tariff deal with China on canola, electric vehicles

Video: Canada reaches tariff deal with China on canola, electric vehicles

Canada has reached a deal with China to increase the limit of imports of Chinese electric vehicles (EVs) in exchange for Beijing dropping tariffs on agricultural products, such as canola, Prime Minister Mark Carney said on Friday.

The tariffs on canola are dropping to 15 per cent starting on March 1. In exchange for dropping duties on agricultural products, Carney is allowing 49,000 Chinese EVs to be exported to Canada.

Carney described it as a “preliminary but landmark” agreement to remove trade barriers and reduce tariffs, part of a broader strategic partnership with China.