A week ago, things were looking up for Prairie farmers.
Canola prices were rising on news China would follow through on its promise to reduce its 75.9 per cent anti-dumping tariff on canola seed after Canada eased steep tariffs on imported EVs.
Those canola tariffs have now dropped to 5.9 per cent, plus the nine per cent standard import tariff already in place. While not zero, tariffs of just under 15 per cent make it possible to restore trade flows and maintain China as Canada’s second-largest canola customer.
As well, Canada’s prime minister was in India on another diplomatic defrosting mission with positive implications for agricultural exports. Any time the world’s largest exporter of pulse crops such as peas, lentils and chickpeas can make inroads into the world’s biggest market for those commodities, the sun shines a little brighter.
While more sales to India weren’t on the agenda, the talks between Mark Carney and Indian Prime Minister Narendra Modi still shouted progress.
Among the dozens of outcomes was an agreement to jointly develop an India-Canada Pulse Protein Centre of Excellence to advance co-operation in value-added agriculture and food innovation.
Then, the U.S and Israel launched their offensive against Iran.
While the rationale and the timing for this conflict remain openly debated, there is growing consensus the ensuing conflict won’t be over any time soon.
Of concern to farmers across North America is the significance of the Strait of Hormuz to the world’s fertilizer and fuel supply chains. Fertilizer and fuel account for more than 40 per cent of a crop farmer’s annual operating costs.
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