Canada's Agriculture Sector Impacted by Trade Tensions

18-Mar-2025 10:17 AM

Canada's Agriculture Sector Impacted by Trade Tensions
★ Trade tensions with China and the United States have placed significant economic and financial pressure on the country’s grain farmers.
★ The 2025 Pre-Planting Survey was released last week in Canada.
★ It is estimated that the acreage of wheat, corn, oats, and peas will increase this year, while canola, soybeans, barley, and lentils may see a decline.
★ The total crop area for planting in 2025 is estimated at 43.1 million hectares, up 0.8% from 42.76 million hectares in 2024.
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Canola
★ In 2025, Canada’s total canola acreage is expected to decrease by 1.7% to 8.76 million hectares, which is close to the five-year average.
★ In Saskatchewan, acreage is expected to rise by 1.2% to 4.94 million hectares, while in Alberta, it may drop by 4.3% to 2.47 million hectares, and in Manitoba, it could fall by 6.4% to 1.25 million hectares.
★ Following China’s imposition of a 100% import tariff on canola oil and canola meal, canola prices have declined.
★ ICE canola futures fell from C$680.10 per ton in February 2025 to C$560.50 per ton in March 2025, marking a 17.6% decline.
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Soybeans
★ Soybean acreage is projected to decline by 1.3% to 2.28 million hectares.
★ In Ontario, soybean area may shrink by 7.8% to 1.17 million hectares.