In early September 2024, Grain Farmers of Ontario advocated for the removal of Canadian fertilizer tariffs.
This appeal follows a detailed report by StoneX, which points out the significant negative impacts these tariffs have had over the past four years on the local agricultural sector.
The StoneX report illustrates how global fertilizer market disruptions—exacerbated by high prices, limited supply, and Canadian trade restrictions—have adversely affected Ontario’s farmers.
“The imposition of tariffs on some fertilizers has had a profound impact on our agricultural industry,” says Jeff Harrison, Chair, Grain Farmers of Ontario. “Farmers across the country are facing increased costs and tighter inventories, which jeopardize their ability to maintain productive and profitable operations. 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.”
Unlike their international counterparts who benefit from lower prices and better supply, Canadian farmers are at a distinct disadvantage due to these tariffs.
The report suggests several remedial actions to alleviate these challenges- abolishing duties on Russian fertilizer imports, fostering relationships with major global fertilizer-exporting nations, implementing price subsidies, supporting the development of new nitrogen facilities, and encouraging upgrades to existing ammonia production facilities in Canada.
Improving the overall Canadian fertilizer supply chain and forming partnerships with phosphate-rich countries are recommended to secure agricultural stability and enhance food security.
By adopting these measures, Canada can reinstate its competitive edge in the global agricultural market and support its farmers more effectively.
Grain Farmers of Ontario urge immediate government action to implement these changes, emphasizing the urgency of the situation for sustaining farm productivity and economic stability.