Billions in new funds, faster approvals and biofuel promises — but will it be enough to keep Prairie canola from backing up at the bin?
Canada’s agriculture ministers closed ranks today in Winnipeg, pledging unity and swift action as farmers brace for one of the toughest harvest seasons in recent memory. At the conclusion of the federal-provincial-territorial agriculture ministers’ meeting, trade disputes with China, drought conditions, and regulatory reform dominated the agenda — with canola front and centre.
Federal Agriculture Minister Heath MacDonald announced that the Advance Payment Program’s interest-free limit for canola will rise to $500,000 for the 2025–26 program years. He emphasized that while the move won’t solve the sector’s problems, “it’s important, because some farmers will take advantage of that.” Additional measures include a $5 billion Strategic Response Fund (SRF) and $1 billion in regional tariff supports.
But ministers acknowledged what farmers have been saying for weeks: the real solution is market access. “Farmers support these measures to some extent, but what they want is markets open. And we get that,” MacDonald told reporters. With Saskatchewan Premier Scott Moe currently in China leading a political delegation, the stakes are high. If no breakthrough comes in the next few weeks, industry analysts warn Canadian canola could start piling up.
Red Tape and Regulatory Pressures
The meeting also zeroed in on red tape reduction, with both CFIA and PMRA under pressure to speed up regulatory decisions. MacDonald confirmed progress, noting CFIA has moved on 20 regulations in recent months. “We need an even playing field with our trading partners, and we need to expedite those decisions much more quickly and effectively,” he said.
The issue resonates deeply in the seed industry, where regulatory delays around seed treatments, variety registration, and biotechnology approvals have long been a concern. When asked about the CFIA’s Seed Regulatory Modernization (SRM) initiative, MacDonald stressed the consultation process is ongoing and producers must make their voices heard.
A Fragile Trade Environment
The ministers struck a sober tone on the international front. Reporters pressed MacDonald on whether Canada might loosen tariffs on Chinese electric vehicles in exchange for progress on canola trade. He stopped short of committing but acknowledged the issue is under review. “Every decision we make, we want to ensure that we’re not jeopardizing a situation that could be even broader,” he said.
Industry groups have also raised alarms over cheap used cooking oil imports from China, which undercut Canadian canola oil in biofuel markets. MacDonald called it “on our radar” but said now is not the right moment to press Beijing while high-level diplomatic talks are underway.
