Canada's Agriculture Sector Affected by Trade Tensions

18-Mar-2025 10:21 AM

Canada's Agriculture Sector Affected by Trade Tensions
★ Trade tensions with China and the United States have placed significant economic and financial pressure on Canadian grain farmers.
★ The 2025 Pre-Planting Survey was released last week in Canada.
★ It is estimated that the acreage for wheat, corn, oats, and peas will increase this year, while canola, soybeans, barley, and lentils may see a decline.
★ The total sown area for major crops in 2025 is projected at 43.1 million hectares, up 0.8% from 42.76 million hectares in 2024.
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Peas
★ The area under yellow peas is expected to rise by 9.5% to 1.42 million hectares, but prices may remain affected due to China’s imposition of a 100% import tariff.
★ India has set the Bill of Lading (BL) date for duty-free yellow pea imports as May 31, 2025, which coincides with mid-sowing season in Canada.
★ This timing may prompt farmers to think carefully before planting decisions.
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Lentils
★ Lentil planting is expected to decline by 0.8% to 1.69 million hectares compared to 2024.
★ India’s 10% import duty is not expected to significantly impact sowing, but increased competition from Australia, Russia, and Turkey may force Canada to sell lentils at lower prices.