The Canola Council of Canada has expressed concerns regarding new support measures announced by Prime Minister Mark Carney. The council's president, Chris Davison, stated that the initiatives do not adequately address the industry's current challenges, particularly in light of a significant tariff imposed by China.

"We don't believe there's been proper recognition of extensive impacts on the rest of the canola value chain," Davison said during an interview. He emphasized that exporters and processors are facing severe pressures on their assets and infrastructure. "And there was nothing specifically that was speaking to that," he added.

On Friday, Carney unveiled plans to introduce new biofuel production incentives and allocate over $370 million to support domestic canola producers. The prime minister also announced amendments to Canada's Clean Fuel Regulations aimed at fostering the development of a Canadian biofuel industry. Additionally, he proposed increasing loan limits for canola producers to $500,000 and investing in trade diversification measures to bolster agricultural sectors.

In a lengthy speech, Carney outlined various measures, including funds for retraining workers and businesses affected by tariffs. He described the current trade environment as experiencing a "rupture" due to China's recent imposition of a 75.8 percent tariff on Canadian canola. This move is widely viewed as a response to Canada's own tariffs on Chinese electric vehicles.

Davison noted that the canola industry is not seeking subsidies, stating, "The longer these tariffs remain in place, the more significant, the more negative, the more widespread the impact will be."

Rob Stone, a canola farmer from Saskatchewan, highlighted the financial strain caused by the trade conflict. He estimated that losing a dollar per bushel could result in a $150,000 loss for his farm this year. "There's just so many different impacts that it's really difficult to understand. And it's only going to get worse if we can't do trade with our largest market," he said.

While Stone appreciates the planned biofuel investments, he stressed that they cannot substitute for the critical issue of access to the Chinese market. He indicated that he cannot abandon canola production due to existing crop rotation plans but remains hopeful that the federal government will resolve the ongoing trade dispute.

In a related development, China announced it would extend its investigation into Canadian canola imports for an additional six months, pushing the deadline to March 9, 2026. The Ministry of Commerce cited the complexity of the case as the reason for the extension. This announcement came just before Saskatchewan Premier Scott Moe and Carney's parliamentary secretary, Kody Blois, traveled to China to discuss trade issues.

Moe has suggested that Canada should consider removing tariffs on Chinese electric vehicles to improve relations, although this proposal has faced opposition from Conservative Leader Pierre Poilievre. Poilievre argued that allowing Chinese vehicles into Canada poses a security risk and would be a strategic error.

Davison acknowledged that increased engagement between Canada and China is a positive sign. He stated, "Tariffs definitely need to be considered from a Canadian perspective, but we really need to understand what it's going to take to resolve this issue and then decide what levers we need to pull to get that done."