Canola tariffs hit hard as AgriStability program falls short: Sask Oilseeds

Saskatchewan farmers might not be getting the help they need after China slapped a 100 per cent tariff on Canadian canola oil.

Codie Nagy, vice-chair of Sask Oilseeds, said the federal government’s move to increase the cap on the AgriStability support program doesn’t go a long way to helping most farmers.

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“It’s not the lifeline we’ve been waiting for,” he said during an appearance on the Evan Bray Show on Wednesday.

Listen to the full interview here:

Part of the issue, Nagy explained, is that the program is “unpredictable.”

“The problem with the program is it’s so varied,” he said.

“It may have a benefit for one farm, but not a benefit at all for another.”

Nagy said there is also low uptake in the program, with only 30 per cent of farms registered for AgriStability, and the other 70 per cent receiving zero benefits unless they enrol before the end of April.

“It’s not a wide benefit for the agriculture sector,” he said.

“I think it’s the unpredictability of the program. When you think you may be in a claim position, you can submit the file and you may find later on that you’re not in the position. So I think it’s just overall frustration and misunderstanding of the program is why there’s not uptake.”

He said AgriStability is a margin insurance program, which ensures that each farm is able to secure its reference margin.

“If your reference margin is reduced by 30 per cent – so you’re at a 70 per cent level of your average reference margin – then that’s when the insurance kicks in. And then, after you’re in the claim position, they will pay you out at 80 per cent of the difference… they moved that number from 80 to 90 per cent,” explained Nagy.

“So there is an additional payment coming our way, potentially.”

Sask Oilseeds chair Dean Roberts said the organization is “very much engaged with the province.”

“We’ve met with several different ministers and Premier Scott Moe to have our concerns heard, hear what they’re hearing from folks in Ottawa and abroad, and try and position our Saskatchewan farmers for success; advocate for what we need as farmers to continue making canola a successful crop in the province,” Roberts said.

He said the organization is clear in its message to Ottawa, that canola producers need a resolution to the issues caused by the tariffs.

“The longer the tariffs go on, the greater the damage. So if we could get the tariffs off, we wouldn’t have to dwell on compensation or how do we remediate the damage.”

Roberts said there are roughly 40,000 canola farmers in the country, with roughly half of that number based in Saskatchewan.