The Canadian Canola Growers Association is glad to see China mostly re-open as a market for Canadian canola.
Currently, China's tariff on Canadian canola seed is down from nearly 76 per cent to a combined 15 per cent, while the levy on canola meal went from 100 per cent to zero per cent now until the end of this year. Those tariffs were in place since last spring.
President Rick White says it's also good to see canola prices recovering, adding the measure of success will be "how much, and for how long, the trade with China lasts."
White expects canola exports to increase, but wonders if they will return "to normal levels of four or five million tons a year or not."
"We're kind of about a short marketing season left here, because we missed out on a lot with China, of course, over the last six months or so, so it's catch-up time now." he added.
White noted the CCGA met with Prime Minister Mark Carney prior to the trade mission to China in January, and encouraged Carney to "get to China as quickly as he could and try to get a deal done, because otherwise it wouldn't get done."
"To be honest, he did what he said he was going to do, and he did what we asked him to do, and you know what, you can't fault him for that. So I think the real question is, okay, the political stuff has been done on that, and now we look toward the actual doing business now and see if the trade is actually going to flow to the levels that it once was." White said.
As far as producers' feelings about reduced tariffs are concerned, White believes most are expressing "cautious optimism".
"So it's just going to take some time to see if this is real, longer term, and not just a flash in the pan. And to be honest, I don't think it's a flash in the pan, but time will tell."
Asked if the smaller tariff rates could influence producers' decision to apply to the Advance Payments Program, White expects 2026 to be "another big year" based on the $400 thousand interest-free portion of cash advances for canola and $100 thousand interest-free for other eligible commodities.
"We expect to continue to have a very, very busy year on the advanced side of things, as farmers take advantage of that for at least the upcoming year."
