Grain Farmers of Ontario is calling for federal tariffs that were slapped on fertilizer imports following the Russian invasion of Ukraine to be removed in the wake of a new study that concludes they are not having the intended impact.
The study, authored by StoneX Vice-President of Fertilizer Josh Linville, said the continued imposition of tariffs on fertilizer are creating a competitive imbalance for Ontario grain farmers, as many peer countries have not followed suit and do not have tariffs of their own.
“Farmers across the country are facing increased costs and tighter inventories, which jeopardize their ability to maintain productive and profitable operations,” said Jeff Harrison, Chair, Grain Farmers of Ontario. “Removing these tariffs is a critical step toward stabilizing the supply chain and ensuring that our farmers have access to the fertilizers they need at affordable prices.”
Along with the Canadian tariffs, high prices, tight inventories, regional conflicts, and attacks on shipping lanes have also significantly disrupted global fertilizer markets over the past four years, the report said.
The Canadian government implemented a 35% tariff on all Russian imports in March 2022 in reaction to Russia’s aggression against Ukraine. However, Canada was the only G7 nation to extend the tariff to fertilizer. Eastern Canadian farmers were disproportionately impacted, as producers in Ontario, Quebec, and Atlantic Canada 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% of the total nitrogen fertilizer used in the region.
The StoneX report recommends the following steps be taken to address the current fertilizer supply challenges:
The full StoneX report can be viewed here:
https://gfo.ca/government-relations/fertilizer-report/
