Canadian farmers want reimbursement for millions spent on Russian-Belarusan fertilizer tariffs
According to Finance Minister Chrysita Freeland, at least $34.1 million of the $115 million Canada committed to Ukraine in December for restoring its power grid came from the fertilizer tariffs.
A coalition of farming associations wants farmers reimbursed for paying over $34 million in tariffs on fertilizer from Russia and Belarus.
In March 2022, the Trudeau Liberals slapped a 35% tariff on all Russian and Belarusian imports — including fertilizer — as a retaliatory measure for the Ukraine war.
"Canada is the only G7 nation penalizing its farmers with this tariff. The United States has never imposed a tariff on fertilizer from Russia or Belarus," said Ryan Koeslag, executive director of Ontario Bean Growers, who notes that the feds imposed the tariffs without consulting the country's agriculture sector.
The Atlantic Grains Council, Christian Farmers Federation of Ontario, Grain Farmers of Ontario, and the Grain Growers of Quebec adamantly oppose having farmers bear that cost when providing Canadians food.
Ontario Bean Growers’ chairman Dave Woods said last July that if the federal government does not remove the tariffs and provide assistance to the fertilizer sector, prices will continue to increase for farmers and consumers.
Canada's Food Price Report 2023 predicts a 5–7% food price increase in 2023 following 10% increases last year. Vegetables, dairy, and meat bore the more substantial portion of food inflation — its highest since 1980.
"We recognize the mistakes the Russian government made in invading Ukraine, but making farmers, and ultimately Canadian consumers, pay for a tariff during high inflation, and a time of increasing food shortages, is unfair and unwise, especially when most purchases were made before the war," said Woods.
While the farming groups stand with the people of Ukraine in their war against Russia, they also question why Canada is the only G7 country "asking its farmers to pay for tariff retaliation that doesn’t hurt Russia but does hurt Canadian farmers."
"The federal government regulations placed Ontario at a huge price disadvantage for our crops," continued Woods, who, alongside Quebec and Atlantic Canada, rely heavily on fertilizer imports for farming.
Approximately 660,000–680,000 tonnes of nitrogen fertilizer is imported from Russia to the Atlantic provinces annually, representing between 85-90% of the total nitrogen fertilizer used in the region.
The farming associations said they've met with federal officials to raise awareness of the tariff-induced challenges over 50,000 Canadian farmers face east of Manitoba.
They noted that even the United Nations wants to lower the price of fertilizers to avoid a global food crisis.
According to Finance Minister Chrysita Freeland, at least $34.1 million of the $115 million Canada committed to Ukraine in December for restoring its power grid came from the fertilizer tariffs.
"Direct compensation for the costs Canadian farmers have incurred already due to this unfair fertilizer tariff is the right thing to do," said Koeslag.
"In a time of global uncertainty, reimbursing Canadian farmers for the tariff will balance some of the inflationary costs and help farmers grow more crops and food we need to feed Canadians and the world."
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