Farm groups call for compensation for impact of tariffs on Russian fertilizer

  • National Newswatch

Fertilizer situation needs to be resolved in time for fall planting.Ottawa—Eastern Canada farm groups have jointly called for compensation from the federal government for high fertilizer prices caused by the 35 per cent tariff on Russian imports imposed on March 3.The groups also want the tariff removed in time for fall planting.The groups said in a statement the tariff was imposed without any prior consultation with the agriculture sector and, as a result, Ontario, Quebec and Atlantic Canadian farmers were disproportionately impacted because they rely heavily on fertilizer imports.Approximately 660,000 – 680,000 tonnes of nitrogen fertilizer is imported from Russia to Eastern Canada annually, which represents between 85-90 per cent of the total nitrogen fertilizer used in the region.The groups said they support the Ukraine and its efforts to halt the Russian invasion. They noted the war in Ukraine “has added considerable strain to global food security and Canada's agriculture industry is well-positioned to help, but farmers' ability to do this relies on a secure, predictable supply of fertilizer to maximize crop yields.“We also support sanctions and other measures imposed by the Canadian government and our allies aimed at quickly ending the war. However, action by the Canadian government should not jeopardize Canada's capacity to produce food today or in the future.”Brendan Byrne, Chair of Grain Farmers of Ontario, said, “We need compensation for farmers negatively impacted by the tariffs, and we want a secure and reliable supply of fertilizer so we can roll up our sleeves and do our part to help the world through this crisis.”Agriculture Minister Marie-Claude Bibeau has said there are no plans to exempt farmers from the tariff and the government was looking at other options to support our producers. “We're working with the industry to really understand the needs, what sector and where, and what mechanism would be the most appropriate to support that.“However, we also want to acknowledge that our producers are facing a significant increase in input costs this year, particularly as a result of this tariff. We've made changes to the advance payments program, and we're also considering other options.”The farm groups said Canada was the only G7 country that put tariffs on Russian fertilizer, which placed their members at a competitive disadvantage compared to other countries around the world.“Fertilizer is the most important input for ensuring strong, hearty yields,” said Karen Proud, president and CEO, Fertilizer Canada. “We need to support our growers and the industry needs predictability for the 2023 growing seasons as the planning is happening now. Now, more than ever, the world needs more Canada.”Russel Hurst, executive director of the Ontario Agri Business Association, said, “The fall planting season is quickly approaching as well as procurement preparations for 2023. Compensation for growers and predictability for industry will be important in the coming months as Canada's agriculture industry steps up to do our part in this global crisis.”The groups, which represent more than 50,000 farmers, also included Atlantic Grains Council, Christian Farmers Federation of Ontario, Ontario Bean Growers, Ontario Canola Growers, Quebec Grain Farmers, Sollio Agriculture, and Sylvite Agri-Services,