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Saskatchewan Premier Scott Moe said he appreciates the changes made Wednesday for canola farmers and is supporting the federal government getting back to the table with China.
Moe spoke Wednesday morning, shortly after the federal government announced changes to the Advanced Payments Program (APP) to help out farmers who could be affected by the ongoing trade dispute with China.
China has banned some Canadian companies from bringing in canola and imposed tighter restrictions, effectively cutting off the Canadian canola supply.
Moe and his government have been pushing for weeks for the federal government to help out canola farmers by boosting the loan limit in the APP to $1 million interest free. Last week, Moe sent a letter to prime minister, essentially asking him what was taking so long.
The federal government’s changes increase the loan limit from $400,000 to $1 million for each farmer, but only half of that would be interest-free.
Moe said he’s happy with the move.
“I think, in fairness, the federal government has shown that they do support western agriculture, and Canadian agriculture by extension,” Moe said. “I’ve always said we’ll call ’em as we see ’em and we are appreciative that (the federal government has) moved forward with this plan.”
While the change isn’t as much as Moe was asking for, he said what would really help out farmers is restoring market access to China.
Moe said the change gives farmers more breathing room to figure out a way through the China dispute, and the provincial government supports the federal government on that front.
“We have, ultimately, what the world needs and that includes China, (in) agri-products and fertilizer products,” Moe said. “We just need to ensure that we have the relationship that we’re actually able to trade that commerce, and we’re going to support our federal government in those conversations moving forward.”
On Tuesday, Moe suggested Canada should take reciprocal action on Chinese imports, but he seems to have backed away from that idea for now. He certainly isn’t advocating that Saskatchewan take a leading step in such actions when it comes to things like Chinese potash companies in the province, or Huawei deals with SaskTel.
“That may be one of the options that we ultimately get to at some point in time, with respect to some of the products that we bring in to Saskatchewan and Canada,” he said. “But at this point in time, we’re going to continue to work with our federal government to ensure that we can work on the challenge that is right at hand here today and that’s the access of our canola products into that nation.”
Moe said the federal government needs to be firm with China, but it’s an important market and shouldn’t be taken for granted.
APAS applauds program increase
The Agricultural Producers Association of Saskatchewan (APAS) is welcoming the federal government’s announced increase to the APP to help farmers stuck in the middle of the Chinese canola dispute.
“The cash advance program has been at $400,000 for a number of years now so this crisis has been kind of a catalyst,” APAS president Todd Lewis said.
While the new $1-million loan limit may seem significant, Lewis stressed it is a fraction of what producers spend annually.
“As we go into spring seeding here, (Saskatchewan) farmers are putting millions of dollars per farm into the ground, in some cases,” Lewis explained.
He sees the limit increase as a short-term tool to help producers dealing with the uncertain canola market in China.
“Hopefully we won’t need any more help,” Lewis said. “Hopefully the market smartens up and we’re able to get our crop in and sell it at a good price.”
Lewis hopes a trade mission in June will bring a new customer base for canola to help steady the volatile market.
— With files from 650 CKOM