Daily Herald Staff
The Agriculture Producers Association of Saskatchewan (APAS) has started talks with the federal government to immediately increase the Advance Payments Program (APP) to $350,000 as a response to Chinese tariffs.
China has placed tariffs on canola oil, canola meal, and peas. APAS president Bill Prybylski said that threatens Saskatchewan farmers’ cash flow. In a press release, APAS described the situation as a “trade crisis”, and said Increasing the APP payments will help provide producers with rapid access to capital during a challenging time.
Prybylski said current programs like AgriStability but do not address immediate challenges. He said increasing the APP in an immediate action that can help producers while long-term support measures are finalized and implemented.
“While AgriStability offers whole farm protection, payments are often received long after significant financial losses have occurred,” he said in a press release. “Saskatchewan farmers will potentially have to borrow a lot of money in the interim to manage critical cash flow due to these market disruptions.”
In their press release, APAS said the federal government quickly increased the APP interest-free limit to support Eastern Canadian farmers hit hard by fertilizer tariffs, but there has been a discrepancy in their response to western farmers. However, Prybylski said meetings with federal Agriculture and Agri-Food Minister Kody Blois have been positive.
“We recognize that the Minister’s action-oriented efforts over his first week are very positive and represent more progress than has been seen in recent years,” Prybylski said.
APAS has also called on the Saskatchewan government to begin talks with the feds to agree to implement enhanced AgriStability measures. Those measures would include an increased compensation rate, higher payment cap, and options for interim and targeted advance payments.
Prybylski said enhancing AgriStability is a positive step, but can’t be done without the provincial government.
In a press release on March 22, the federal Ministry of Agriculture said they have proposed increasing AgriStability compensation rates from 80 per cent to 90 per cent, and doubling the current payment cap to $6 million for the 2025 program year.
The Ministry also said it would provide provincial governments with the opportunity to enter into an agreement to issue interim payments at a higher payment rate, and initiate Targeted Advance Payments, in the event of tariffs.
China enacted a number of tariffs, including 100 per cent tariffs on canola oil, meal, and peas, following a domestic investigation launched in Sept 2024. Canola is Canada’s second largest acreage crop, with more than 21 million acres produced annually, generating $13.6 billion in farm cash receipts in 2023.
The tariff on canola was one of several implemented by China. Others include a 25 per cent tariff on certain pork, fish, and seafood products.
“China’s decision to apply these tariffs will have a devasting impact on our farm families and their communities,” Agricultre Minister Kody Blois said in a press release. “We’re working hard to diversify our trading partnerships and establish new markets, but we know the sector needs support now. Today’s announcement is a direct result of their advocacy – and our commitment to them.”
