Prairie farm groups are offering mixed reviews of the federal government’s new measures to support Canadian agriculture in the face of ongoing global trade disruptions.
While the Agricultural Producers Association of Saskatchewan (APAS) welcomed several initiatives, the canola industry voiced sharp disappointment, warning that Ottawa’s package falls short of what is needed.
Announced by the government Friday, the measures come in the wake of China’s 75.8% anti-dumping duty on imports of Canadian canola seed, and 100% tariffs on imports of canola meal and oil.
At the heart of the federal government’s plan is a new Biofuels Production Incentive valued at more than $370 million over two years, set to run from January 2026 through December 2027. The program will provide per-litre payments to Canadian producers of biodiesel and renewable diesel, capped at 300 million litres per facility.
On the financing side, the government is doubling down on supports through the Advance Payments Program (APP). The APP provides low-interest cash advances of up to $1 million, with a portion interest-free. Earlier this year, the interest-free limit was raised to $250,000. To address ongoing volatility, the government is now temporarily doubling that limit to $500,000 for canola producers through the remainder of the 2025 program year and into 2026.
Recognizing the risks of overdependence on a narrow set of trading partners, Ottawa is also investing in trade diversification. The government will inject an additional $75 million over five years into Agriculture and Agri-Food Canada’s AgriMarketing Program, beginning in 2026-27.
But the Canola Council of Canada (CCC) and the Canadian Canola Growers Association (CCGA) said the government’s plan underestimates the scale of the challenge and fails to deliver the direct financial support farmers and processors require. China is Canada’s second largest market for canola and canola products with exports to China valued at $4.9 billion in 2024.
“We are discouraged with the government’s support package for the industry,” said CCC President & CEO Chris Davison. “The measures announced today do not reflect the seriousness of the challenge facing the value chain.”
Rick White, CCGA President & CEO, added that “farmers should not be expected to borrow their way out of this situation,” arguing that expanding the Advance Payments Program (APP) does little to address immediate financial stress.
Industry leaders also criticized the limited impact of new biofuel production incentives and flagged uncertainty surrounding amendments to the Clean Fuel Regulations. In particular, they said the government failed to address the competitive threat posed by foreign used cooking oil (UCO) imports, which displaced the equivalent of nearly one million tonnes of domestic canola demand in 2024.
On the other hand, APAS described the federal package as a step in the right direction.
“These are positive and necessary steps forward,” said APAS President Bill Prybylski. “The expanded interest-free Advance Payments limits and AgriMarketing focus on market diversification are critical tools for Saskatchewan farmers dealing with the fallout from global trade disputes.”
Still, Prybylski warned the measures remain incomplete, especially given the omission of pulse crops, which he described as vital to both farm incomes and sustainable agriculture. Saskatchewan produced 1.5 million tonnes of peas in 2024, but tariffs and weak demand have left farmers with an estimated $150 million in losses.
“That’s a $150 million hit to farmers and their bottom lines,” Prybylski said. “Ignoring this sector fails to recognize its importance to our economic success and environmental sustainability.”
APAS also raised concerns that while biofuel incentives may boost canola demand, they do not address the broader need for domestic processing capacity across all commodities.
