Canada’s most valuable crop is in crisis, and farm leaders say Ottawa’s response is falling dangerously short.
The federal government on Friday unveiled support measures intended to cushion the blow of China’s sudden closure of its market to Canadian canola seed, oil, and meal. But industry groups argue the package is out of touch with the scale of the disruption — one that has erased billions in export opportunities overnight.
“We are discouraged with the government’s support package for the industry. The measures announced today do not reflect the seriousness of the challenge facing the value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “We have communicated the need for appropriate financial and policy supports, and the federal government has missed the mark.”
Rick White, president & CEO of the Canadian Canola Growers Association (CCGA), was even more blunt: “Farmers should not be expected to borrow their way out of this situation. The Advanced Payments Program (APP) is not designed to provide the required support canola farmers need under this situation.”
Ripple effects across the supply chain
Industry leaders warn the damage goes far beyond farmers’ fields. Exporters and processors — the backbone of Canada’s $29 billion canola industry — are also under strain.
“The government has also not recognized extensive impacts on the rest of the canola value chain, including exporters and processors who are also facing significant financial impacts as a result of the Chinese market closure. This must be addressed,” says Davison.
Biofuels boost falls short
Ottawa’s relief plan includes support for biofuel production, a move that could, in theory, redirect some of Canada’s stranded canola supply into domestic energy markets. But the industry says the details are underwhelming.
“While the industry is encouraged there will be some support for biofuel production, the announced Biofuel Production Incentive (BPI) does not go far enough and will not drive meaningful additional domestic demand for canola,” the CCC said.
Further complicating matters are amendments to the Clean Fuel Regulations. Instead of creating a level playing field, industry groups argue the rules still leave Canadian canola at a disadvantage compared to cheaper, possibly adulterated foreign used cooking oil (UCO).
“In 2024, foreign UCO-based fuels represented the equivalent of nearly one million tonnes of domestic canola demand,” the groups noted — a staggering figure that illustrates what’s at stake.
What the industry wants
The message from both CCC and CCGA is clear: stopgap measures won’t cut it.
“We are calling on the federal government to urgently work with us to provide meaningful and impactful support for the industry as we continue to navigate this trade crisis,” say Davison and White. “The federal government must pursue all avenues to resolve the current trade dispute with China and re-open that market for the Canadian canola industry.”
