China-U.S. spat could mean more financial aid needed by Canadian farmers

Discussion of proposed AgriStability changes may need to be stepped up.Ottawa—The ramping up of the U.S.-China trade war will put more pressure on the Canadian government to increase its financial assistance to farmers who are already suffering from the early stages of the superpower skirmish.China has announced it will stop buying U.S. agricultural products and it may impose additional tariffs on U.S. farm products bought shortly before the purchase ban took effect. That announcement came on the heels of President Trump saying Beijing had not fulfilled a promise to buy large volumes of U.S. farm products and in retaliation he vowed to impose new tariffs on about US$300 billion of Chinese goods. China responded that his claim was groundless.Before the trade war started, China bought US$19.5 billion worth of farm goods in 2017, mainly soybeans, dairy, sorghum and pork, the American Farm Bureau said. Those sales dropped to $9.1 billion in 2018.Meanwhile the Trump administration has announced plans to spend up to US$28 billion compensating U.S. farmers, upping the ante for the federal government, which says it will stand behind Canadian producers. While Agriculture Minister Marie-Claude Bibeau has announced financial support for the beef, pork and grain sectors in recent weeks, it doesn't begin to match what Washington is promising American farmers.During last month's federal and provincial agriculture ministers meeting, there was agreement for officials to study changes to AgriStability to support farmers from marketplace risks and report back by the end of the year. Otherwise there was no action on requests for immediate measures to help farmers cope with growing trade and financial pressures, which began with the arrest of a Chinese hi-tech executive in Vancouver under a U.S. extradition request. Canola, pork and beef exports are among the products China has blocked mostly for violations it has yet to prove.As Ag-Growth Coalition Chairman Markus Haerle said after the ministers' meeting, escalating global trade volatility imposes greater risk for producers. “Farmers need urgent action by the ministers to address this critical situation created by geopolitical decisions and market risks outside of their control.”In addition to the challenges facing export-oriented farm sectors, dairy and poultry producers are still waiting to hear what compensation will be coming their way for increased access of foreign products to their domestic markets under the European and Pacific trade deals and the still unratified new NAFTA.Jacques Lefebvre, CEO of Dairy Farmers of Canada, said “Dairy farmers are looking for certainty, not just promises regarding compensation given that the impact of the trade deals with the EU and Transpacific countries is already being felt at the farm. There is much work to do in our discussions with government in order to reach an agreement.  But, for the time being, we remain optimistic.”Bibeau spoke to the recent DFC conference in Regina but did not provide any details on the compensation other than to say that they would come before the end of the government's mandate this fall. She did not take questions from delegates.After the conclusion of the free trade deal negotiations with the United States and Mexico last fall, Prime Minister Justin Trudeau promised fair and equitable compensation to dairy and poultry farmers. That was followed by meetings of special working groups. The government has provided no details on the status of those discussions.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.