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By: Beatriz Baleeiro
Ontario grain growers – caught in the crossfire of Canada’s trade war – speak about how tariffs will affect their operations
By: Beatriz Baleeiro
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LONDON, ONT. — Ontario grain growers — caught in the crossfire of Canada’s trade war with the United States and China — gathered Tuesday at RBC Place in London for their annual spring meeting.
Top of mind at the conference organized by the Grain Farmers of Ontario were looming 25 per cent U.S. tariffs on $17 billion worth of Canadian grain and grain products, starting April 2, and a 100 per cent tariff on Canadian canola meal, canola oil and peas, valued at $1.7 billion.
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Postmedia’s London Free Press asked six farmers what’s at stake for them as they ramp up to get their crops in the ground
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Bryan said America’s sweeping 25 per cent tariffs are “needless and unjustified.” The loss of a good relationship with the U.S. is also a concern for Bryan, who said trust will be hard to rebuild.
“It (tariffs) doesn’t seem to make any sense. It’s going to harm both sides and it’s frustrating. And the benefits, there just aren’t any,” he said.
“It takes a long time to build those relationships. And the trust is not going to be there going forward, which is a very sad thing to have taken place.”
As for how the tariffs could affect his farm operations, Bryan said they could cause a loss of income, increase risks to the grain markets and “hurt badly” the younger generation of farmers who might not be as prepared for uncertainty.
Hyland said looming tariffs are “concerning, with a lot of unknowns,” which has led him to stop all investment in the stock market and buy more land instead.
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“Land will never disappear … we can always work the land and have a business to work, we hope,” he said.
“I definitely won’t tap into that (funding) unless I really have to. We’re making only improvements on replacement parts. Keep things moving, but nothing new on the horizon.”
“I’m not going to be spending any money on capital improvements until I know where I am in this changing world.”
Podolinsky said “if tariffs disappear would be really nice,” but if they are implemented things could get “uglier and uglier,” resulting in increased costs and lower grain sales.
“This year I’m not as worried, but if it keeps persisting, next year will be definitely a difficult year,” he said. “
We already pre-bought a lot of stuff like seeds and fertilizers … but 2026 could be a different story.”
Tight profit margins, if “there are any to capitalize on,” Podolinsky said, are a major source of concern.
“There may not be anything left at the end of the day for us.”
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Lennan said he’s guaranteed for this year’s crops with pre-bought seeds and fertilizers and crops contracted ahead of time.
“But if this tariff issue keeps going for another few years, it’s definitely going to be harder to be able to lock in a profit long term,” he said. “Like the higher cost of inputs, and then if the crop price keeps dropping … it’ll make the margins a lot tighter. But I think it’s really nothing you can’t control.”
As for how the financial pressures could impact his business long term, Lennan said he might not be able to live off the farm. “We might have to resort to trying to find other sources of income, something like that, to try to cover everything.”
McKinlay said there will be “some pain” with the upcoming tariffs, but he believes Canada will look different and perhaps stronger depending on how the country responds.
“It’s going to hurt the pocketbook no matter what because we’re putting tariffs on them, they’re putting tariffs on us, so prices will go up,” he said. “Those are all kinds of things we don’t know about and we’re just sitting back and wondering what it will be.
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Dawson said he sold all his soybeans in storage last week due to the uncertainty of tariffs.
“I’m very concerned. I don’t know what the hell’s going to happen,” he said. “And nobody knows what Trump’s going to do tomorrow or even next hour.
“So how can you plan ahead? How are you going to do it?”
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bbaleeiro@postmedia.com
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