U.S. rules frustrate Canadian organic exporters
Organic grain and food exporters are struggling to get their products to the American market.
U.S. regulations designed to curb organic fraud require all products to have a National Organic Program import certificate. This wasn’t required for Canadian companies until this July.
In the past, many Canadian organic exporters would sell directly to U.S. customers or retailers. Now, many are realizing those buyers aren’t certified organic. To get around this requirement, the Canadian exporters must be the importer of record. That’s a huge change and major cost.
While organic fraud is a real issue, the new rules are frustrating the Canadian industry, which historically has had a good relationship with U.S. partners.
Tia Loftsgard is executive director of the Canadian Organic Trade Association. She said they question “why the organic equivalency arrangement process we have had in place for 16 years is no longer sufficient for export into the U.S.A.”
Canadian dairy farmers firm on expectations of trade protection
Canada’s national dairy group is leaning on the trade shield promised by recently passed legislation.
That’s despite recent reports suggesting Canada may be weighing whether to give ground to the U.S. on dairy access. In early October, the Globe and Mail cited unnamed sources who said concessions were under consideration.
Dairy Farmers of Canada pointed to government commitments, namely bill C-202. That bill, passed this June, limited Canada’s ability to make trade concessions around supply-managed goods.
The dairy group also cited comments from the office of Canada’s minister responsible for trade with the U.S. These reiterated that Canada’s supply management system will never be on the table.
“It remains DFC’s expectation that no further concessions will be made to supply management,” the group said in a statement.
Access to Canadian dairy markets has been an ongoing pain point in trade negotiations with the Trump administration.
FCC bullish on Canadian grain farms despite cost pressures
With chronically high prices for crop inputs and machinery and softer grain prices, some Canadian farmers are struggling financially. However, from a high level view, Farm Credit Canada says grain farms are financially solid.
Perry Wilson is senior vice-president of ag production with the farm lender. He said that in terms of dollars they’re putting out to the industry, the stability of their portfolio, and activity in lending, the industry seems stable.
Wilson said there are farmers who financially strained. However, he’s not seeing a trend.
This runs counter to narratives that grain farmers are in peril, and to anecdotal reports that banks are reluctant to finance grain farming. The broader picture is brighter, Wilson said, and there is financing available.
Roy Arnott is a farm management expert with Manitoba Agriculture. He said prices are poor. Input prices are high and expected to stay that way next year, creating a cash squeeze. Some farmers will be profitable, he said. Some won’t.
