With the commitment of American president Donald Trump to impose 25% price On imports from Canada from February 1, Manitoba farmers rush to understand what it means for their products and their livelihoods.
Oats, Canola and Soy of Colin Penner’s Farm near Elm Creek generally go directly to the United States. Now he doesn’t know where they will go.
“Our canola, I marketed it with a processor here in Manitoba, but their final product ends up entering the United States.”
The province’s farmers are preparing for price reductions. Penner thinks he will always be able to pay his bills, but his beneficiary margins will be thin. He also expects to pay much more for the American products he needs to manage his farm.
“A large part of our equipment comes from the states. So, with the weak Canadian dollar, it will really impact us negatively, ”explains Penner. “Many of our phosphate fertilizers come from states. We have this at home, it’s in the bac at the moment, but for next year, it could really have a negative impact on us.
“The prices will be bad for farmers on both sides of the line,” he continues. “Whether Canadian or American, it will not be positive.”
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The United States is the largest trading partner in Canada. Manitoba exported $ 4.5 billion (CAD) to agro-food south of the border last year.
Colin Hornby, director general of Keystone agricultural producers, says the impact of the market could be massive.
“We have to diversify and look at other markets where we can sell our things,” explains Hornby. “Could we speak, could the internal market in Canada occupy part of the soft?” Well, we do not necessarily have the capacity or demand here with Canadian consumers. We are not a large country.
Hornby says they will not know the full impact until the prices come into play. But he adds that some American cereal buyers have stopped or slowed down their Canadian purchases.
“It’s not like there was an expectation to see what’s going on. Things have already happened.
It will not only be producers who will have trouble, but also livestock producers. Tyler Fulton, vice-president of the Canadian attachment association and director of Manitoba beef producers, says 35% of all Canadian beef exports are intended for states.
“This really throws a key to knowing if the batches of food can buy our cattle and if the processors can sell the beef in normal flows,” explains Fulton.
Experts say that farmers will have to focus on the products for which they have a viable market, but it is extremely difficult to plan a route with so much uncertainty, causing anxiety to farmers.
Penner says that he can plan the variability of the market and ensure against bad weather, but we do not know how he can protect himself from such a great threat.
“Some of these unique insurance products that will end, in the long term, cost me a lot of money, I think they will probably be the route that I will have to take,” he said.
“It’s just, how can I make sure I make sure I’m able to pay my loans and pay myself at the end of the day.”
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