Canada

One of North America’s Largest Farms Files for Financial Protection, Is Restructuring

Thu, 23 Apr 2026 14:50:03 GMT

Earlier this week, Monette Group, which farms more than 400,000 acres in Canada and the U.S. filed for financial protection and is restructuring.

The company filed for creditor protector in Canada via the Companies’ Creditor Arrangement Act (CCAA) and filed Chapter 15 in Delaware Bankruptcy Court.

The Cost of Expansion: Efficiency Erosion and the Leverage Trap

The group’s recent financial trajectory highlights a cautionary tale of aggressive, debt-fueled expansion meeting a volatile economic climate. While the organization successfully scaled its footprint and top-line revenue over the last several years, operational efficiency and debt sustainability have reached a critical breaking point. [all dollars are Canadian]

The Era of Aggressive Growth (2017–2022)
Driven by substantial borrowing, the Group underwent a massive scale-up, growing revenue from $45 million to $198 million and expanding its cultivated land from 97,000 to 269,000 acres. While total EBITDA initially followed this upward trend, the underlying efficiency—measured by EBITDA-per-acre—began to signal trouble, dropping significantly from its 2015 highs.
Operational Headwinds and Margin Compression (2024–Present)
The transition into 2024 saw revenue climb to a record $347 million across 440,000 acres, yet profitability decoupled from growth. Diversification into produce and cattle, intended to broaden the portfolio, instead acted as a drag on the bottom line. By 2024, EBITDA-per-acre plummeted to a decade low of $83—a nearly 50% decline. This downward trend was exacerbated in 2025; despite a projected $72 million EBITDA, actual earnings reached only $31 million due to a “perfect storm” of poor crop prices, high input costs, and yield losses.
The Sustainability Crisis
The group’s reliance on cheap capital (approximately 3% interest rates) and rising real estate valuations proved successful in a low-rate environment. However, the convergence of flat property values, persistent inflation, and high interest rates has rendered the current capital structure unsustainable. Despite holding significant underlying asset value, the group is now overleveraged, with compressed margins leaving little room to service debt or maintain liquidity.

What Is Monette Group?

Since 2010, Monette Group has been aggressively expanding from its family farm in Saskatchewan to Manitoba and British Columbia in Canada. Current President Darrel Monette took over the family farm in 2013. In 2019, the company expanded into the U.S. first in Montana and then Arizona and Colorado. The company’s website says its core values are: teamwork, efficiency, growth and ‘get shit done.’

With its expansion and diversification, the business expanded into four main brands:

Monette Farms: growing pulses, wheat, corn, sugar beets, barley, and alfalfa in Canada and the U.S.
Monette Produce: with growing locations in California, Arizona and Canada
Monette Cattle: ranches located in Saskatchewan and British Columbia
Monette Seeds: located in Saskatchewan in partnership with NexGen Seeds

The 18 business entities of Monette Group employ between 300 and 600 people, depending on the season.

Grain production, primarily canola, wheat and durum accounted for over 60% of group revenue in 2024 and more than 50% in 2025. Grain operations dominate the Canadian footprint with 68% of the group’s production occurring in Canada.

Fresh produce operations are primarily located in Saskatchewan and British Columbia, with significant fall and winter production in Arizona. In 2025, produce accounted for approximately 15% of group revenue. Crops include carrots, squash, broccoli, cabbage, pumpkin, cauliflower and watermelon. The group’s produce is mainly sold to Loblaws and the Little Potato Company.

Cattle ranching accounted for approximately 10% of revenue in 2024 and 17% in 2025. Cattle ranching operations focus on Black and Red Angus cattle, including herd breeding in British Columbia and feedlots across Alberta and Saskatchewan.

Seed processing accounted for 19% of revenue in 2024 and 16% in 2025.

Its main crops 10 years ago were green and red lentils, durum, canola and malting barley.

According to the company’s website, Monette Farms’ newest addition is west of Phoenix, Arizona. It’s a certified organic farm and headquarters to Monette Seeds USA.

What Monette Farms Has Said

President Darrel Monette has penned a letter sent to landowners and leasing partners as well as a press release distributed with general counsel as the point of contact. Both are dated April 21, 2026.

In both Monette says this process will allow them to stabilize finances, restructure debt, and continue operating.

The letter read: “This filing is a proactive response to current industry pressures (higher input costs, higher interest rates, and tighter credit) and is not a liquidation.”

It continued: “We are working with our advisors and a court-appointed Monitor to develop a restructuring plan for credit and court approval.”

Per a company press release, the day-to-day farming activities, spring seeding and livestock care are continuing as planned. The release also said all employees are being retained at this time.

The Assets of Monette Group

According to its 2025 financial statements, the group has $1.24 billion of total assets booked at cost (and not reflective of market value.)

As of April 12, 2026, the group owns 274,000 acres of land. In the U.S. Monette owns 61,700 acres in Arizona, Montana and Colorado.

For crop production, it leases 175,000 acres in Canada and 43,000 acres in the U.S. with annual total lease payments of $29.4 million. For its cattle business, Monette holds grazing licenses on 1.2 million acres of land in Canada.

The group owns three seed processing facilities in Canada.

It leases more than 1,700 separate units of farm equipment, with 1,600 units leased from John Deere Financial. Annually, the group spends $26 million on leased equipment.In 2023, it was newsworthy when the business transitioned from Case IH equipment to John Deere equipment in a reported $100+ million deal.

What Else Is There To Watch?

Monette Group is one of the largest privately held farming operations in North America.

The timing of this filing is critical for the farm to put in a 2026 crop. In the CCAA filing, Monette Group said its seed expenses are $40 million per year. To get set up for seeding, Monette’s operations may receive 41 truck loads of product a day (nearly 15,000 truck loads a year).

The main filing is in Canada with proceedings under the Companies’ Creditors Arrangement Act (CCAA) as part of a court-supervised restructuring process. From here is a process by which Monette will work with a court-appointed monitor to develop a restructuring plan for creditor and court approval.

The Chapter 15 filing asks the U.S. court to recognize the Canadian CCAA proceeding as the “foreign main proceeding” which can extend the protection of U.S. assets. It also prevents U.S. creditors from taking legal action such as seizing assets or filing lawsuits.

In the CCAA document, it is stated Monette Group held a $950 million secured credit facility dated December 5, 2018, which matured on April 15, 2026. Repayment of the obligations owing to the syndicate of lenders is a necessary component of the group’s overall restructuring strategy.

The CCAA filing comes after Monette per the guidance of its lending syndicate to sell assets. Two tracts were sold in 2025: in Regina, Saskatchewan for $41.18 million and 17,000 acres of land in Montana for $47.5 million. Additional sales were attempted this this winter, but with only one completed sale of 12,932 acres of farmland in the Stewart Valley of Swift Current, Saskatchewan for $54 million.

In the affadavit, Monette says a restructuring and selling of assets by the court appointed monitor is important to provide an orderly sale of assets and not cause a bulk liquidation which could result in lower values.

The farm has been active on social media:

Next Generation Teamwork: Team USA Blue and Red Dominate World Competition

Tue, 04 Nov 2025 14:30:20 GMT

“The cattle industry is not only about genetics or performance but about people who care deeply about preserving tradition, improving beef cattle and helping one another succeed,” explains Tar Tut, from Bells, Texas.

Tut was one of 44 young cattle producers from around the world who competed in the Young Breeders Competition, hosted in conjunction with the World Hereford Conference (WHC), hosted in Kansas City, Mo., Oct. 19-25.

“There are moments in life that are hard to put into words, and representing Team USA Red at the 2025 World Hereford Conference is one of them,” Tut says. “I have been part of plenty of shows, contests and events over the years, but nothing compared to standing shoulder to shoulder with breeders from across the globe, all connected by one shared passion for Hereford cattle.”

Much of the YBC was hosted at Kansas State University in Manhattan, Kan., before traveling to Kansas City for the WHC and remaining competition, which concluded with a team fitting and showmanship contest at the American Royal.

“Getting to meet the different teams from the around the world was without question one biggest highlights of the whole competition,” says Jacob Johnson, a member of the USA Blue Team from Ruth, Miss. “They were incredible people to get to know.”

Grand Champion Individual: Jacob Johnson, Ruth, Miss., from Team USA Blue, and Reserve Grand Champion Individual: Dylan Kottkamp, Clayton, Ind., from Team USA Red.

(American Hereford Assn.)

Johnson earned the grand champion individual title.

Fellow Blue Team member Trevor Johson from Centerville, S.D., add:, “The competition was a world-class event, and though it was challenging and intense, it was so rewarding to compete amongst the globe’s most talented young Hereford enthusiasts. The contest was also incredibly thought-provoking and stimulating. This exposure provided me better insight to global production practices, what drives value in the beef supply chain around the world and how we as the next generation of Hereford breeders may work together to ensure our breed and our industry’s future.”

Participating countries select their YBC teams, which are comprised of four members, ages 18 to 26. This year’s competition features 11 teams from seven countries, including two from the U.S.

“Competing in the Young Breeders Contest during the World Hereford Conference was absolutely an eye-opening experience for me,” says Logan Topp, a member of the USA Blue Team from Grace City, N.D. “To be able to connect with breeders from across the world, compete against some of the most progressive cattlemen my age and learn along the way was an absolute blessing. The competition was challenging to say the least, but to see the amount of skill and knowledge presented across the board no matter the country really makes me feel good about the next generation of Hereford breeders. They are truly some of the most forward-thinking people I have ever met.”

Team Blue was named grand champion team. Pictured (l to r) are Logan Topp, Grace City, N.D.; Blake Bruns, North Platte, Neb.; Jacob Johnson, Ruth, Miss.; and Trevor Johnson, Centerville, S.D.

(Topp Herefords)

As the scores were tallied, the two teams from the U.S. took the Grand Champion and Reserve Grand Champion honors.

“There’s no words to truly describe the honor of competing on a young breeders team and just the feeling of being surrounded by elite breeders from across the world,” says Ralston Braden, a member of the USA Red Team from Kearney, Neb. “It was wonderful to learn how young breeders from across the globe are selecting genetics, running cattle from a herd health management and marketing standpoint, and how they are progressing our breed in the beef industry as a whole.”

Reserve Grand Champion Team: Team USA — Red with team members JW Cox, Flemingsburg, Ky.; Tar Tut, Bells, Texas, Dylan Kottkamp, Clayton, Ind.; and Ralston Braden, Kearney, Neb.;

(American Hereford Assn.)

The Contest

“Growing up competing in a variety of different competitive youth events, I have been challenged in many different ways, but the Young Breeders Competition took that to a whole new level of toughness and challenge for all the contests we participated in,” says Blake Bruns, a member of the USA Blue Team from North Platte, Neb.

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The competition included six sections.

Industry Practicums and Hereford Bowl: This module included three parts — Herd Health and Animal Handling, Cattle Scoring Practicum and Nutrition Challenge, plus the results of the Hereford Bowl (quiz bowl).
Meat Animal Evaluation
Livestock Judging Competition
Communications Challenge: Teams were asked to work together on a presentation about Hereford genetics and the beef industry
Team Fitting Contest
Showmanship Contest

“Each competition tested a different skill set, from technical knowledge and reasoning ability to teamwork, composure and attention to detail,” explains Tut, who was a member of the USA Red Team.

“One of the contests we had to do was a communication challenge, where we had to describe four bulls and tell how they would be used in operations within our respective counties,” Johnson adds. “It was awesome getting to listen to the different teams and how they would utilize the bulls within their counties.”

Tuesday evening the participants enjoyed a visit to Springhill Herefords, Blue Rapids, Kan.

(American Hereford Assn.)

Much More than Banners and Buckles

“I believe we quickly learned just how important it was to be able to network and talk with all the producers and young breeders from across the world. I confidently would say that was by far the most rewarding part of the whole trip,” says Dylan Kottkamp, a member of the USA red team from Clayton, Ind. “Other than Canada, the way we raise cattle in America is night and day compared to many places across the globe. Learning and seeing how other countries operate, what they have to breed for, and why their cattle look the way they do created many educational conversations and grew an appreciation amongst everyone as a whole. It was a lot of fun to compare and grow together as producers.”

Kottkamp won the showmanship division as was reserve overall individual in the competition.

“Getting to tour operations and visit with people from the U.S. as well as all across the globe was an experience second to none,” says JW Cox, a member of the USA Red Team from Flemingsburg, Ky. “I am extremely grateful for this opportunity to compete, learn and connect.”

“I came home with a full heart, lifelong friendships and a deeper appreciation for what it means to be part of the Hereford family,” Tut says. “The Young Breeders Competition was not just a contest; it was a reminder of why we do what we do and who we get to do it with. This experience reignited my passion for the Hereford breed and the people behind it. I left feeling proud, humbled and more motivated than ever to keep growing both as a cattleman and as a person.”

No Trade Agreement Can Boast the Success of USMCA, The Meat Institute Says

Mon, 03 Nov 2025 21:13:19 GMT

The Meat Institute is calling on the Trump administration to renew the U.S.-Mexico-Canada Agreement (USMCA) for its benefits to American meat and poultry companies and the entire U.S. animal protein value chain.

“USMCA has been a boon for the American meat, livestock and poultry sector, along with the broader American food and agriculture economy and ancillary industries,” said Julie Anna Potts, The Meat Institute president and CEO, in a news release. “It has provided steady income to American farmers, ranchers, and meat and poultry exporters; it has created jobs for American truck drivers, ports, and transportation companies; it has strengthened American food retail and food service establishments; and it has accomplished all of this through transparent rules that allow American businesses to proactively plan supply chains and develop durable customer relationships.”

USMCA entered into force on July 1, 2020, substituting the North America Free Trade Agreement (NAFTA) to create more balanced, reciprocal trade supporting high-paying jobs for Americans and grow the North American economy, according to the Office of the United States Trade Representative (USTR) .

“The domestic U.S. meat and poultry industry’s long-term economic viability, though, depends on robust international trade, particularly as domestic per capita consumption of meat and poultry remains stable, and 95% of consumers live outside the U.S,” The Meat Institute wrote in comments submitted to the USTR on Nov. 3. “International trade is, therefore, vital to the long-term strength of the U.S. meat and poultry industry, the American workers it supports, and the rural and farm communities it sustains.”

In 2024, U.S. meat and poultry exports exceeded $24.6 billion. Meat and poultry product exports to Canada and Mexico accounted for $7.5 billion of that total. Annually, approximately 14% of U.S. beef production, 15% of U.S. poultry production and 25% of U.S. pork production are exported, the organization noted. As well, exports add value to every animal produced, and in turn, increase demand for U.S. corn and soybeans.

“The Trump Administration’s America First Trade Policy Agenda has reinvigorated American trade policy and has reasserted American leadership to advance U.S. meat, poultry, food, and agriculture trade in a manner that revitalizes our farm communities and supports broad-based economic growth. President Trump’s negotiation of the USMCA during his first term resulted in the world’s gold-standard trade agreement,” the letter said. “Thanks to President Trump’s leadership, USMCA has bolstered U.S. meat, poultry, and livestock trade, has led to increased market integration in North America, and must be preserved without significant changes that would disrupt the U.S. meat and poultry industry’s substantial access to the Canadian and Mexican markets.”

The Meat Institute says it’s clear USMCA’s access terms – zero tariffs on most meat, poultry and livestock trade – have underpinned American economic and job growth, particularly in rural and farm communities across the U.S.

“No other trade agreement can boast the same success,” Potts said. “President Trump deserves enormous credit for this extraordinary achievement.”

See The Meat Institute’s full comments in response to the U.S. Trade Representative’s (USTR) “Request for Comments on the Operation of the Agreement Between the United States of America, the United Mexican States, and Canada.”

Right To Repair Granted? John Deere Launches Digital Self-Repair Tool for $195 Per Tractor

Thu, 31 Jul 2025 15:51:28 GMT

In what appears to be a direct response to anti-competition claims raised in the ongoing FCC v. John Deere Right to Repair lawsuit , the equipment manufacturer has released an updated digital service tool to enable equipment owners to maintain, diagnose, repair and protect farm equipment.

The new Operations Center PRO Service tool is available now in John Deere’s Operation Center app to equipment owners in the U.S. and Canada.

John Deere says it will charge farmers an annual license starting at $195 per machine for the tool. The company is charging independent service professionals $5,995.00 per year, which includes up to 10 local downloads.

The increased functionality of the new service tool replaces John Deere’s previous digital service iteration, known as Customer Service ADVISOR. John Deere representatives confirm ADVISOR will be phased out over the next year.

What farmers need to know

John Deere says the new Operations Center PRO Service “delivers digital repair content filtered by year and model number and provides users with additional relevant machine information to help troubleshoot, diagnose and repair Deere equipment. It’s designed to be intuitive and deliver support in real time.”

Here are the new service and repair capabilities within the tool:

Machine health insights and diagnostic trouble codes
PIN-specific machine content, including manuals
Software reprogramming for John Deere controllers
Diagnostic Readings
Diagnostic Recordings
Interactive diagnostic tests
Calibrations

Quick Analysis

If you’ve been following the FCC v. John Deere Right to Repair lawsuit, you may recall FCC’s legal team asking the equipment manufacturer to release a full digital repair and diagnosis tool for farmers and independent service technicians as part of its filed request for injunctive relief.

Related: What Does Right to Repair Really Mean?

Right to Repair advocates and antitrust attorney James Kovac, along with the FCC’s legal team, at the time were critical of the Customer Service ADVISOR, calling it an incomplete diagnostic tool. Kovacs himself says “independent repair pros and the farmers have access to (the tool), but (it) doesn’t give them the full suite of options to repair all the needs of their farming equipment.”

What John Deere is saying about the new tool

“Our development of these tools reaffirms John Deere’s support of customer self-repair,” says Denver Caldwell, vice president of aftermarket and customer support with John Deere. “We view continuously enhancing self-repair as consistent with our mission to ensure John Deere customers have the best machine ownership experience possible.”

What about independent repair technicians?

(John Deere )

In addition to equipment owners, a local service provider can also use Operations Center PRO Service, John Deere says. With a John Deere equipment owner’s permission, independent technicians can gain access to diagnostic and repair information to support the equipment owner’s needs.

(JohnDeere.com screenshot)

On the John Deere online store, it currently lists a Operations Center PRO Service annual license for a “Service Business” as costing $5,995.00 . The license provides for 10 local downloads of the PRO Service application, the listing says.

“Our message to our customers is clear,” Caldwell continues. “Whether you want the support of your professionally trained and trusted John Deere dealer, to work with another local service provider or to fix your machine yourself, we’ve created additional capabilities for you to choose the option that best fits your needs.”

How does it work?

Equipment owners must access Operations Center PRO Service through the John Deere Operations Center. Once connected to the platform, owners will add their equipment into their account using the machine’s serial number. Use of an electronic data link might be required for more advanced features within Operations Center PRO Service, including software reprogramming. Certain interactive tests, calibrations and reprogramming limitations will exist at initial release.

John Deere says it will deliver additional capabilities in future updates. See JohnDeere.com/PROService for further details.

How can I find out more?

Operations Center PRO Service is available today. For more information on how to access all of the digital support tools offered by John Deere, visit Deere.com/RunItYourWay or see your local John Deere dealer.

Your Next Read: Will the Nation’s First Possible Coast-to-Coast Railroad Benefit Agriculture?

Cattle Recover With Higher Cash: Grains Fall on CA Tariff News and Weather

Fri, 11 Jul 2025 14:49:12 GMT

Cattle futures are higher early Friday, as well as hogs. Grains are under pressure.

Nearby Live Cattle Negate Key Reversal With Higher Cash

Live and feeder cattle futures opened lower on Friday but quickly turned higher with strong cash news according to Scott Varilek, Kooima Kooima Varilek.

He says cash bids are surfacing on Friday morning at $238 to $240 in the North.

Some sales were reported in the North late Thursday as high as $380 dressed to a regional and a handful of sales at $370 to $372 dressed and $235 live. In the South a few sales were reported at $225.

(At midday Friday, light volume in developing in the North at $238-$240 live, dressed at $380, $10 higher than last week’s weighted average in Nebraska. Southern live deals range $228 to $230, $4 to $6 higher.)

Live cattle futures had a disappointing close on Thursday making record highs on bullish news and then closing with nearby contracts lower putting in bearish key reversals.

It was a classic buy the rumor sell the fact trade says Varilek as the markets worked in bullish news including President Trump proposing a 50% tariff on Brazil imports, including beef.

Plus, USDA announced Wednesday evening the Southern border was once closing again to Mexican cattle imports due to concerns regarding New World Screwworm (NWS).

What Happens if the U.S. Gets New World Screwworm?

Currently there is no indication of when the border will reopen to Mexican cattle imports after a case of (NWS) was found just 370 miles from the U.S. border.

However, it may be inevitable that the pest gets into the U.S.

So how does the market react with a case if detected?

Varilek says it will initially be negative because the markets have never had to trade it before and there will be concerns that consumer demand may fall since this is a flesh eating pest that leave horrific images.

However, he says once that wears off the pest could be positive for the cattle market because it will again tighten the already historically cattle numbers.

“Producers needs to be prepared and make sure they are putting on hedges to protect their operation,” he says.

Lean Hogs Back Higher

Lean hog futures were also higher early Friday in tandem with cattle, but still seeing buying by funds on the breaks and the Lean Hog Index was also slightly higher reversing its lower trend.

Varilek thinks the market is being supported by disease and supplies issues and points to some $95 feeder pig prices as evidence of that.

Funds continue to be record long in the lean hogs and so far have defended that position on breaks.

Grains See Risk Off Selling From Weather and Canadian Tariff News

Grains and outside markets are trading risk off as President Donald Trump announced Thursday evening the U.S. will impose a 35% tariff on imports from Canada, effective Aug. 1. An exclusion for goods covered by the United States-Mexico-Canada Agreement (USMCA) on trade was expected to stay in place.

However, Varilek says it still creates uncertainty in the markets and is a signal of rising tensions between the neighbors.

Weather has also been ideal and even dry areas of Northern Illinois received some rain over night with more in the forecast, which may also be pressuring grains ahead of the WASDE Report at 11:00 am.

Varilek doesn’t think the report will provide much meaningful news and even if it did it would not be traded long with the weather forecast so perfect for the Corn Belt and promoting ideas of a bumper crop.

Mark Carney’s Liberal Win: What It Means for Canadian Agriculture and U.S. Relations

Fri, 02 May 2025 18:13:31 GMT

America’s neighbor to the north has elected a new leader. The result is not a huge surprise to farmers across Canada, but it’s fair to say Liberal Party leader and new Prime Minister Mark Carney likely wasn’t many farmers’ first choice, either.

“I would say farmers are frustrated with the track record of what the (Liberal) Party’s done for agriculture over the last 12 years, and they are probably pretty concerned if they’ll see any change over the next four years,” says Saskatchewan farmer Kristjan Hebert when asked how his farming brethren felt about the result.

Shaun Haney, founder of RealAgriculture and host of RealAg Radio , thinks the aggressive rhetoric from President Donald Trump around the U.S. possibly annexing Canada as the 51st state had an impact. The Conservatives had a large lead in many polls leading up to the election, but there was a seismic shift as Election Day approached.

“The Conservatives couldn’t get out of the trough of many Canadians making the assumption they were just going to roll over to President Trump, which I don’t think was true but definitely was the branding they were labeled with, and now Mark Carney’s first election is over and he’s going to be the prime minister,” he says.

(iStock/Lori Hays)

If there is a silver lining for conservative-leaning Canadian farmers, Haney views Carney as better equipped to manage the high-wire tightrope walk that is dealing with Trump. The U.S. President did back away from the 51st state rhetoric post-election, and the two men share similar backgrounds in global finance. There appears to be a degree of respect between the two.

“I think (Carney) has the opportunity to get some respect (from Trump) in the sense that he’s worked in those circles, but he has been very pro on the climate file, which he backed off during the election. He’s going to want to park that if he’s going to stay out of some of the ire of President Trump,” Haney adds.

Haney talked about the Canadian Election results on AgriTalk today. You can listen to the “Free for all Friday” discussion here:

From the farmer point of view, Hebert says there are actually a few Trump policies that he and many Canadian farmers support; he just wants more respect from the U.S. leader.

“I think most (Canadian farmers) would argue he has enough things to right on his own ship before he needs to worry about everybody else’s,” he says.

One ag market that may become a political football is the dairy industry. There is a lot of shared interests between the two countries in that realm, and Canada has slapped a protectionist 200% tariff on U.S. dairy exports for years, as Dairy Herd Management editor Karen Bohnert wrote in an analysis piece in March.

“Dairy’s going to be really fascinating,” Haney says. “One of the outcomes of the election is the Liberals are going to need support from some of the other parties. That’s going to come from the New Democratic Party or it’s going to come from The Bloc Quebecois, which is based in Quebec. And where is the Canadian Dairy lobby the strongest? Well, it’s in Quebec. So, it’s going to be really fascinating to see where they go on dairy negotiations.”

Another industry with close cross-border ties is the farm equipment manufacturing world. The tariff situation has hit that market with brute force. Many farmers are delaying purchases of new tractors, combines and sprayers until the situation clears up. Manufacturers have responded by laying off factory workers and slowing production of new machines.

An example of the cross-border journey of one piece of agriculture equipment from raw material to delivery on the farm.

(AEM)

RELATED - From the Factory to Your Fields: Where Farm Equipment Is Made

“Six or seven years ago, spending was full bore and it was a good time (in the industry),” Hebert says. “Right now, operations are really looking for efficiencies, and that includes asset turnover, capital utilization and the efficiency of production models. You’re going to see producers really focus on using every dollar to maximize efficiency because the margins just aren’t wide enough right now.”

Haney hopes both countries can come to the table and realize a united North America is stronger than one divided.

“This is a critical trading relationship and economic partnership between two countries that neighbor each other; there are bigger fish to fry,” he says. “China, Brazil and India — those are the countries where we need to be working together and focusing on a partnership, rather than battling each other.”

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Canadian Meat Council Brings Protein PACT to Canada

Thu, 27 Mar 2025 20:45:42 GMT

The Canadian Meat Council (CMC) launched the Protein PACT sustainability framework for the Canadian meat processing sector on March 27. This significant initiative aims to enhance sustainability practices across the industry, aligning with global standards while addressing critical issues, CMC said in a release.

The Protein PACT, developed by the U.S. based Meat Institute, is a partnership uniting stakeholders across the animal protein industry to accelerate progress toward global sustainable development goals, focusing on people, animals, communities and the environment, the organization shared in a release.

Bringing the Protein PACT to Canada allows CMC members to collaboratively and pre-competitively advance the sustainability of the animal processing sector. By adapting this framework for Canada, CMC’s goal is to emplower Canadian meat processors to collaborate on shared sustainability goals and work together to improve North American-wide practices.

“Canada’s red meat processing sector have sophisticated science-based practices and outcomes across their establishments and systems in place,” CMC president and CEO Chris White said in a release. “This initiative will provide a vehicle to broadly communicate these initiatives and demonstrate our leadership to key stakeholders.”

Through initiatives like the Protein PACT, the North American meat processing industry is poised to make even greater strides in advancing sustainability and meeting the challenges of the future together, the release said.

“By uniting industry stakeholders under a common framework, the Protein PACT will ensure that Canada’s meat processors can continuously improve their operations to achieve the highest standards of sustainability, transparency, and accountability,” Meat Institute President and CEO Julie Anna Potts said in a release.

Your Next Read: Millennials and Protein Craze Boost Meat Sales to Record High

Take Our Poll: Do You Agree With President Trump's Use of Tariffs?

Wed, 19 Mar 2025 17:07:06 GMT

Tariff whiplash is consuming the commodity markets — and the possible impact is stirring up quite the debate. At present, President Donald Trump says he’s sticking to his plan to impose additional tariffs on the United States’ top three trading partners starting April 2.

In early February, President Trump announced a 25% additional tariff on imports from Canada and Mexico , a 10% additional tariff on imports from China and a 10% tariff on energy resources from Canada.

Those tariffs were scheduled to go into effect in early March. However, President Trump made the decision to exempt goods from Canada and Mexico under the U.S.-Mexico-Canada Agreement (USCMA) from the 25% tariffs for another month.

What we know today is those exemptions for goods from Canada and Mexico covered under USMCA are scheduled to expire on April 2.

As agriculture waits to see what happens, the commodity markets continue to trade headlines and concerns are mounting about possible retaliatory tariffs. Tariff talk is already impacting input prices for farmers heading into spring.

Share Your Thoughts on Tariffs
In light of the ongoing tariff battle, we have two questions for you:

Do you support President Donald Trump’s use of tariffs as a negotiation strategy?
Do you believe USDA will compensate farmers for losses if agriculture is affected by a trade war, similar to the compensation provided through the Market Facilitation Program?

Click here to share your answers.

NOTE: We appreciate your input. The poll has been closed. Check back on Monday, March 24 for results and analysis.

Mexico and Canada Take Additional Actions to Ward Off U.S. Tariffs

Fri, 28 Feb 2025 20:18:21 GMT

A global stock selloff extended from Asia into Europe as investors worried that President Donald Trump’s planned tariffs on Canada, Mexico, and China could hurt economic growth. Asian shares fell as much as 2.5%, while the dollar strengthened. Trump announced 25% tariffs on Canada and Mexico starting March 4, with Chinese imports facing an additional 10% levy.

Economists warn the move could slow U.S. growth, fuel inflation, and trigger recessions in Mexico and Canada. China vowed “all necessary measures” in response, while Hong Kong saw some of the biggest losses, particularly in Chinese tech stocks.

The euro is at risk of further falls as markets are not fully priced for the prospect of a global trade war, ING analyst Chris Turner says in a note.

The U.S. economy is also showing early signs of strain as President Trump’s aggressive tariffs and federal spending cuts disrupt businesses, weaken consumer confidence, and spark concerns over inflation.

Job cuts across government agencies and funding freezes are forcing local officials to explore tax hikes and bond issuances to stabilize budgets.

Economists warn that escalating trade tensions and regulatory uncertainty could further dampen growth, with projections of higher inflation and slower economic expansion. While the administration insists its policies will strengthen the private sector, financial markets and businesses remain uneasy about the near-term outlook.

Trump Confirms Tariffs on Canada and Mexico, Additional Hike on China

President Trump announced that tariffs on imports from Canada and Mexico will take effect on March 4 as planned, citing inadequate efforts to curb drug trafficking.

Additionally, he declared a new 10% tariff on Chinese goods, doubling the previous levy imposed earlier this month. The move has drawn criticism from businesses and trade groups, warning of economic strain and higher consumer costs.

While Canada and Mexico have taken measures to address U.S. concerns, China’s response remains muted, potentially setting the stage for further trade tensions.

Mexico Extradites Top Cartel Figures to U.S.
In a historic crackdown on cartel operations, Mexico has transferred 29 high-profile cartel operatives to U.S. custody, including Rafael Caro Quintero, the infamous Sinaloa cartel leader wanted for decades.

The move, seen as a major victory for the Trump administration, signals increased co-operation between Mexican President Claudia Sheinbaum and U.S. authorities. Among those extradited is Miguel Ángel Treviño Morales, the notorious ex-leader of the Zetas cartel.

The mass transfer underscores ongoing diplomatic efforts to combat cartel violence and the drug trade across the U.S./Mexico border.

Will this and perhaps other measures that may be announced in the coming days be enough to impact the Trump threatened 25% tariffs on Mexico currently slated to take place March 4? Mexico authorities have arrested more than 700 people since early February, when President Claudia Sheinbaum agreed to deploy 10,000 National Guard troops along the U.S.-Mexico border. Sheinbaum said she was planning to have a telephone conversation with Trump in the coming days to follow up on the agreements reached by both leaders early this month. “We hope that we can make this call to close the agreement,” she said this week.

Canada’s ‘Fentanyl Czar’
As for Canada, it sent the country’s new “fentanyl czar” and cabinet ministers to meet with Trump’s border czar, Tom Homan, this week. Canada named the czar as part of an agreement earlier this month with Trump to increase its efforts to curb the amount of fentanyl crossing over from Canada to the U.S. Canada has argued that the amount of fentanyl seized at the Canadian border is a fraction of what is found at the southern border.

Even More U.S. Tariff Hikes Ahead
There are several actions set for April 2, from the completion of trade policy reviews ordered on Inauguration Day to the unveiling of 25% tariffs on automobiles, pharmaceuticals and semiconductors.

That is also the planned date for the announcement of Trump’s levies on reciprocal trade, which will seek to equalize U.S. tariffs with the duties and nontariff barriers imposed by other nations.

A White House official said a report will be released on April 2 that will “outline the equivalent tariff rate” for other nations and the “mechanics for how they would be implemented.” Details for some countries might be released before others, the official added. The official also declined to comment on the timeline for reciprocal tariffs, but said any talk of a bottleneck in implementing the trade agenda is “premature.”

Trump Trade Strategy Unfolding
Trump administration officials believe that a trade policy combining reciprocal trade action with sector-specific tariffs would be legally stronger and cause less disruption than a broad tariff approach.

This strategy would still allow the U.S. to impose tariffs on significant parts of the economy while minimizing harm to consumers and markets. The sectoral tariffs, particularly on steel, aluminum, and copper, could be announced on April 2. However, their implementation would likely fall under Section 232 of the Trade Expansion Act, which permits tariffs on national security grounds.

This process generally requires a 30-day notice and comment period, except for steel and aluminum tariffs, which are based on an existing investigation and may be enacted more quickly.

Trump Sows Confusion on Tariffs for Canada and Mexico, Floats 25% Duty for EU Goods

Wed, 26 Feb 2025 21:25:23 GMT

U.S. President Donald Trump on Wednesday raised hopes for another month-long pause on steep new tariffs on imports from Mexico and Canada, saying they could take effect on April 2, and floated a 25% “reciprocal” tariff on European cars and other goods.

A White House official, however, said Trump’s previous March 4 deadline for the 25% tariffs on Mexican and Canadian goods remained in effect “as of this moment,” pending his review of Mexican and Canadian actions to secure their borders and halt the flow of migrants and the opioid fentanyl into the U.S. Trump sowed confusion during his first cabinet meeting on Wednesday, when he was asked about the timing for the start of the duties for Canada and Mexico and replied that it would be April 2.

“I have to tell you that, you know, on April 2, I was going to do it on April 1,” Trump said. “But I’m a little bit superstitious, I made it April 2, the tariffs go on. Not all ofthem but a lot of them.”

Trump’s comments prompted jumps in the value of the Canadian dollar and Mexican peso versus the greenback.

Canada’s Finance Ministry and Mexico’s Economy Ministry both declined to comment on Trump’s remarks.

U.S. Commerce Secretary Howard Lutnick said the fentanyl-related actions were paused for 30 days but referred to “overall” tariffs on April 2. He did not specify whether the March 4 deadline was still in effect.

“So the big transaction is April 2, but the fentanyl-related things, we’re working hard on the border,”
Lutnick said during the cabinet meeting. “At the end of that 30 days, they have to prove to the president that they’ve satisfied him in that regard. If they have, he’ll give them a pause, or he won’t.”

EU Tariff Rate

Trump has targeted early April for imposing reciprocal tariffs that would match the import duty rates of other countries and offset their other restrictions. His trade advisers consider European countries’ value added taxes to be akin to a tariff.

Trump, asked whether he has decided on a tariff rate for goods from the European Union, replied: “We have made a decision, and we’ll be announcing it very soon, and it’ll be 25%, generally speaking, and that’ll be on cars, and all of the things.”

He said the EU is a “different case” from Canada and takes advantage of the U.S. in different ways.

“They don’t accept our cars. They don’t accept, essentially our farm products,” Trump said, adding that the EU was formed “in order to screw the United States.”

Roberta Metsola, president of the European Parliament, is in Washington and will meet U.S. lawmakers on Wednesday, a spokesman said. She is not slated to meet with any Trump administration officials.

New U.S. Trade Representative Confirmed

Also on Wednesday, the U.S. Senate voted 56-43 to confirm Jamieson Greer as Trump’s new U.S. Trade Representative, putting a veteran of the Republican president’s first-term trade wars fully on the job.

Greer, who served as chief of staff to former USTR Robert Lighthizer, won the support of five Democrats, including both senators from Michigan, the center of the U.S. auto industry.

Trade groups welcomed Greer’s confirmation, lauding his commitment to consulting with industry and standing up for U.S. businesses, farmers and workers. “We share Ambassador Greer’s desire for an active and pragmatic trade policy that creates

U.S. jobs and more resilient supply chains,” said Jake Colvin, president of the National Foreign Trade Council.

Greer told senators during his Senate confirmation hearing that he wanted to quickly renegotiate the U.S.-Mexico-Canada Agreement on trade to ensure China does not use it as a back door to the U.S. market to avoid other tariffs.

“Right out of the gate, I expect that we’ll be taking a second look at the USMCA,” Greer said.

Asked what changes he would like to see in the pact, Greer zeroed in on further tightening automotive content rules.

“I think we should look at the rule of origin for automobiles and aerospace and other things to look and see if we need to have any kind of restriction on content or value added from foreign countries of concern, or non-market economies,” he said, using language that U.S. trade officials often use to describe China.

(Reporting by David Lawder and Andrea Shalal; additional reporting by Bo Erickson and Ryan Jones in Washington, Brendan O’Boyle in Mexico City and Ismail Shakil in Ottawa; Editing by Dan Burns, David Gregorio and Paul Simao)

What to Expect During USDA's Ag Outlook Forum This Week

Wed, 26 Feb 2025 18:53:44 GMT

USDA’s 101st Annual Agricultural Outlook Forum will be held Feb. 27-28 near Washington, DC, with the theme of “Meeting Tomorrow’s Challenges, Today.” The look at corn and soybean acreage under current conditions will be among the key focal points during the event, but it will also be key to see how USDA paints an export outlook with so much uncertainty surrounding tariffs and trade.

Farm Journal Washington correspondent Jim Wiesemeyer says USDA produced its budget-related figures last fall that were part of the agricultural projections publication that was released ahead of the conference.

“It is not clear how much the figures released next week will change relative to the initial budget-related outlooks,” Wiesemeyer says.

We interviewed Seth Meyer, chief economist with USDA, during the Top Producer Summit last week. He provided a preview for the Ag Outlook Forum, saying he will talk about farm income margins for crops and livestock, which are two very different stories. Meyer says one of the challenging parts is trying to forecast the trade picture, even with the uncertainty around tariffs. USDA will also look at the impact of foreign animal diseases on the livestock sector during the Ag Outlook Forum this week.

What’s Meyer’s overall outlook on 2025? It’s a tad more positive than 2024.

“This is a strange statement to appear bullish, but maybe we’ve hit the bottom. Six months ago, things were getting pretty bad, pretty fast. Hopefully we’ve hit a bottom on some of this and seen a little bit of rebound and maybe a little bit better on demand, especially on corn, as we see a little bit of a rebound. So, I’m kind of hopeful that maybe things aren’t going to get a bunch worse on the crop side,” Meyer says.

While he’s more optimistic, Meyer points out here are still a plethora of challenges in the ag economy, especially with tight margins on the crops side.

“For things like cotton, we’ve continued to see price erode,” Meyer says. “We started at an 80 cent forecast. We’re now down to 64.5 cents, and 80 cents wasn’t going to make you a bundle of money at the time either. So I think we go through these periods of crop prices where input prices are slower to correct. And it makes a really disruptive time as that adjustment happens, and we’re in that disruptive time.”

The Difficulty of Forecasting Trade
USDA analysts in the forecasts released later this week are not expected to make any assumptions on the impact of potential tariffs on U.S. agricultural commodities. For the WASDE report, the analysts use the policy actions that are in effect at the time and their outlooks presented next week should follow that track.

“We will produce an outlook which is policy in place,” Meyer says. “So, while there’s been a lot of talk about tariffs, reciprocal tariffs, tariffs on Canada and tariffs on Mexico, right now, we don’t have anything in place. So we’ll do an outlook absent that.”

Meyer says the team at USDA is in the middle of building tools to show the possible impacts of tariffs on trade.

“We’re making sure we have the tools in place to understand what the impact on agriculture is from such actions. So we are prepared internally to do the calculations necessary to support the secretary of agriculture,” Meyer said.

2025 Acreage in Focus
This is USDA’s first glimpse at acreage. Even though it’s not the survey-based estimate, which will be released at the end of March, it’s still the market’s first 2025 acreage data to digest. While Meyer couldn’t reveal any early acreage projections, he acknowledged the trend for more corn acres this year, but says soybeans are also trying to compete for acres.

Meyer wasn’t able to give his acreage estimates, but Dan Basse, founder and president of AgResource Company, says if USDA is aggressive and pencils a 94 million acre number on corn, that could be bearish to the market.

“We’re at 93 million acres at AgResource Company, and I just got back from a conference in Jonesboro in the Delta, and I was just shocked how many Delta farmers want to plant corn and abandon cotton and rice,” Basse told U.S. Farm Report. “We will do a survey again in the middle of March, but our surveys are pointing upward, and I wouldn’t be surprised by 94 million plus at some point.”

Arlan Suderman, chief commodities economist for StoneX Group says his current estimates aren’t quite to 94 million, but close.

“Right now we’re at 93.5 million acres, which is up about 3 million from last year,” Suderman said during the live taping of U.S. Farm Report during the Top Producer Summit. “But I have an alternate scenario I’m using right now, which is 95.5 million acres, which would be 5 million acres, essentially, higher than last year. We’re going to do another survey and collect more data right around March 1 when USDA does, because we’re just hearing enough of the feedback from the seed industry about how big their corn seed sales are versus their soybean seed sales. And so if there’s a bias to it, it’s to the upside right now.”

All Ag Outlook Forum sessions will be streamed on a virtual platform this week.

Canada, Mexico Hit Back with Retaliatory Tariffs on U.S. Imports

Sun, 02 Feb 2025 13:56:54 GMT

In response to President Donald Trump’s decision to impose 25% tariffs on Canadian and Mexican goods , Canada announced its own 25% tariffs on $155 billion worth of U.S. imports. Mexican President Claudia Sheinbaum also announced its own retaliatory measures to Trump’s 25% tariffs, but no specifics were unveiled.

Canada Strikes Back
Prime Minister Justin Trudeau stated that the tariffs will roll out in two phases, starting Feb. 4 on $30 bil. targeting American products such as alcohol, produce, household goods, and industrial materials, the same day the American tariffs are set to begin.

The tariffs on the other $125 billion worth of goods will come in 21 days, to allow impacted Canadian companies to adjust their supply chains. Trudeau emphasized that Canada’s response would be “strong but appropriate,” while also considering non-tariff measures like restrictions on critical minerals.

The move has drawn mixed reactions within Canada, with provincial leaders urging strategic countermeasures while ensuring minimal harm to the domestic economy. Meanwhile, the White House justifies the tariffs as a measure against drug trafficking and illegal border crossings, further straining trade relations between the two countries.

American items that Canadians tariffs will be applied to include:

Beer, wine, and bourbon
Fruits and fruit juices including orange juice, as well as vegetables
Perfume, clothing, and shoes
Major consumer products such as household appliances and furniture
Sports equipment
Other materials such as lumber and plastics

The government of Canada says a more detailed list of impacted products will be released soon.

More Tariffs Coming
Foreign Affairs Minister Mélanie Joly said on Jan. 31 that Canada’s retaliatory tariffs would be coming in rounds. “There would be a first round of measures, second round of measures, and a third round of measures,” Joly said at a press conference in Washington. “And we’ll keep ourselves also some leverage.”

When asked if Canada would be shutting off oil exports to the U.S., Trudeau said he will be ensuring Canada’s response will be “equitable” and won’t be damaging to one part of the country more than the others. Energy-rich Alberta has strongly opposed any export tariffs on oil, or for Canada to stop oil exports altogether. Trump said on Jan. 31 that the U.S. tariffs will be lower on Canada’s oil and gas exports, at 10%, while other goods will have a tariff of 25%.

Canada’s trade surplus in merchandise with the U.S. was around $100 billion (US$59 billion) last year, according to a report by TD Bank. If Canadian oil exports to the U.S. are removed from the figure, the “scales tip to America’s favor,” the report says, meaning the United States would have a $60 billion (US$41 billion) trade surplus.

Canada and U.S. Conduct Two-way Trade Worth $1.3T Every Year

According to the Canadian Chamber of Commerce, 2.3 million Canadian jobs are supported by exports to the U.S., and 1.4 million American jobs are supported by exports to Canada. A Bank of Canada analysis says that under a mutual 25% tariffs scenario, Canada’s GDP would take a 2.4% hit.

Mexico Announces Plans for Retaliation
Mexican President Claudia Sheinbaum announced its own retaliatory measures to Trump’s 25% tariffs, but no specifics were unveiled. Sheinbaum said she had told her economy minister “to implement Plan B” which she said “includes tariff and non-tariff measures” though it was not clear what those measures were exactly.

China Reacts
China’s Ministry of Commerce denounced Trump’s tariffs, saying they undermine “the normal economic and trade cooperation” between the U.S. and China.

The ministry said it would challenge the U.S. action at the World Trade Organization (WTO) and take countermeasures “to firmly safeguard its own rights and interests.” The WTO dispute settlement mechanism has been dysfunctional for years amid U.S. opposition to the appointment of new judges.

Your Next Read:
Trump Officially Signs Three Executive Orders Imposing 25% Tariffs on Canada and Mexico, 10% Tariffs on China

Trump Officially Signs Three Executive Orders Imposing 25% Tariffs on Canada and Mexico, 10% Tariffs on China

Sat, 01 Feb 2025 23:01:55 GMT

Big tariffs, big risks, big impacts: When populism and commercial agriculture collide.

President Donald Trump signed three executive orders for tariffs Saturday, the first time a president has used powers granted under the International Emergency Economic Powers Act of 1977. The orders also include retaliation clauses that would ramp up tariffs if the countries respond in kind. Trump cut the levy on imports of Canadian energy to 10%.

Trump officially announced plans to impose new tariffs on imports including computer chips, pharmaceuticals (without specifying which, at what level or when it would take effect), steel, aluminum, copper, oil, and gas by mid-February, expanding his administration’s trade war strategy. He said he would put new taxes on imported oil and gas on Feb. 18 and aimed to do the same for steel and aluminum this month or next month. This move is separate from scheduled tariffs — 25% on Canadian and Mexican goods and 10% on Chinese products set for Saturday, Feb. 1 — and aims to pressure Mexico, Canada, and China to address issues such as border security, drug trafficking, and migration.

Here’s the detailed Fact Sheet from the White House .

Of note: Canadian officials were told by U.S. officials on Saturday that the tariffs would be implemented on their goods on Tuesday, according to people familiar with the situation. Senior figures on Capitol Hill were briefed on the decision.

Trump also hinted at additional tariffs on EU products, citing poor treatment of the United States, though details remain vague. The president said he “absolutely” would impose tariffs on their shipments to the United States. “We are treated so badly: They don’t take our cars, they don’t take our farm products; essentially, they don’t take almost anything. And we have a tremendous deficit with the European Union. So, we’ll be doing something very substantial with the European Union,” he said.

Related News: Canada, Mexico Hit Back with Retaliatory Tariffs on U.S. Imports

Big impact. Such levies targeting imports from America’s top three trading partners — which together accounted for more than 41% of the U.S.’ goods trade in the January-November period of 2024 — potentially affect trillions of dollars in merchandise, like cars and farm products.

Trump said there was nothing the three countries could do now to stop the tariffs.

Trump announced general tariffs at his Mar-a-Lago, Florida estate. White House spokesperson Karoline Leavitt said the tariffs would be implemented immediately, but as noted, Canada said tariffs would be implemented on their goods on Tuesday. It typically takes weeks for tariffs to take practical effect.

Key points:

Sector-specific tariffs: New duties will target high-tech and industrial sectors, potentially covering more imports by dollar value than previous tariffs on China. Trump also suggested Friday he’d consider new tariffs on oil and gas, potentially by Feb. 18, though it wasn’t clear what he was referring to.
The duties come on top of existing tariffs on those products. The first Trump administration imposed tariffs on more than $300 billion worth of Chinese goods to respond to an array of unfair trade practices, including intellectual property theft. The Biden administration kept all of them in place and increased rates on $18 billion in goods, including electric vehicles, solar panels, medical equipment, lithium-ion batteries, steel, and aluminum.
A second wave of tariffs could follow a comprehensive review of the trade relationship among the three countries (Canada, Mexico and China) that Trump has ordered completed by April 1.
Exemptions and negotiations: There are ongoing discussions about potential carve-outs for critical industries (like oil and automobiles) amid intense lobbying by U.S. business and labor groups. Some hope for exemptions to mitigate domestic economic risks. Trump told reporters in the Oval Office on Friday that there was nothing Canada, Mexico and China could do to avoid the tariffs before Saturday. “Not right now,” he said, telling reporters that his tariff threat wasn’t a negotiating tool. “It’s a pure economic [decision],” he said. But he did say he was considering a lower tariff on Canadian crude oil — 10% instead of 25% (and that it was he announced on Saturday). At nearly $100 billion in 2023, imports of crude oil accounted for roughly a quarter of all U.S. imports from Canada, according to U.S. Census Bureau data. The tariff on China would be for what Trump said was failing to stop the manufacturing of fentanyl precursor chemicals.

Why a lower tariff on China? Trump’s threats on tariffs are clearly not all bark and no bite, said Wendy Cutler, vice president of the Asia Society Policy Institute in Washington and a former acting deputy U.S. trade representative in the Obama administration. “He’s clearly in an action-oriented mode and wants to use these tariffs to pressure the three countries to address serious U.S. concerns,” Cutler said. “This is the beginning of the story, this is the first salvo in what’s going to be a long four years,” she said. On why the tariff on Chinese goods will be 10% and not 25%, Cutler said this shows that Trump “may be more interested in seeking a trade deal” with Beijing.

Trump said the Biden administration had not enforced trade deals beneficial to U.S. farmers. During a Friday press conference in the Oval Office, Trump criticized the previous administration’s handling of trade agreements. During his previous term, Trump initiated trade disputes, particularly with China, which significantly impacted U.S. agricultural exports. He stated that China had committed to buying $50 billion a year in farm products, but claimed that former President Joe Biden didn’t enforce this commitment. Trump said, “We’re going to enforce it,” referring to this $50 billion annual purchase agreement with China. His recent statements suggest a continuation of this aggressive stance on trade, framing it as necessary to protect American farmers and correct perceived imbalances left unaddressed by the Biden administration.

· Trump’s team was initially considering a grace period between the announcement of the tariffs on Saturday and when they would be imposed, but White House press secretary Karoline Leavitt played down that possibility on Friday. Leavitt said that a Reuters report stating that the tariffs wouldn’t be implemented until March 1 was “false.”

· Reasons for the tariffs. Trump on Friday said, “We’ll be announcing the tariffs on Canada and Mexico for a number of reasons. Number one is the people that have poured into our country so horribly and so much,” he said about migrants that have entered the United States via its southern and northern borders. “Number two are the drugs, fentanyl and everything else, that have come into the country and number three are the massive subsidies that we’re giving to Canada and to Mexico in the form of [trade] deficits,” Trump said. “I’ll be putting the tariff of 25% on Canada and separately 25% on Mexico and we will really have to do that because we have very big deficits with those countries. Those tariffs may or may not rise with time,” he said.

· International reactions: Leaders from Canada, Mexico, and China are preparing responses. The scale of their responses will depend on whether Trump’s actions match his rhetoric, according to officials in Canada and Mexico.

Canada comments. “You will find when we do respond, at least initially, that we will focus on tariffing American goods that actually are sold in significant quantities in Canada, and especially those for which there are readily available alternatives for Canadians,” Natural Resources Minister Jonathan Wilkinson said in an interview cited by Bloomberg on Friday ( link ), hours after Trump reiterated his plan to bring in tariffs on Canada, Mexico and China.
Of note: Canadian officials were told by U.S. officials on Saturday that the tariffs would be implemented on their goods on Tuesday, according to people familiar with the situation.

Canadian Prime Minister Justin Trudeau warned of economic fallout, and Canada even weighed an export tax on oil to undercut Trump’s ability to exclude gasoline price hikes from his tariff fight. Mexican and Canadian officials have expressed frustration that they don’t know what actions would satisfy Trump’s demands, despite weeks of meetings between senior officials. A Canadian contact said Trump “keeps on moving the goal post… If Trump was trying to build anti-American sentiment in a country like Canada (who get mad about little except for hockey), he is executing well.” Trudeau’s government won’t unveil its retaliation list until it sees what the Trump administration moves forward with. After Trump tied tariffs to what he called an “invasion” of migrants and fentanyl, Canadian officials in December unveiled a $900 million border plan, to add helicopters, drones and other surveillance capacity. “Canada’s border is strong and we’re making it stronger,” said Public Safety Minister David McGuinty, speaking to reporters. “When our largest ally raises concerns, we take it seriously.” McGuinty was in Washington Friday to meet with U.S. border czar Tom Homan. Bloomberg reports that Canadian officials come to the discussions armed with documents, charts and even time-lapse videos of certain border crossings. Only 1.5% of migrants apprehended by U.S. Customs and Border Protection in the 2024 fiscal year and 0.2% of fentanyl seized at U.S. borders came from Canada.

Ontario Progressive Conservative Leader Doug Ford spoke in anticipation of Trump’s tariffs on Canadian imports, which are set to be implemented on Saturday, calling them “reckless… I wish I had better news to share but Donald Trump couldn’t have had been more clear. He’s moving forward with these reckless tariffs. He’s chosen to tear up decades of good will that has made life better for workers on both sides of the border, for businesses on both sides of the border, for families on both sides of the border,” Ford said at a campaign event in Brampton.”

Mexican President Claudia Sheinbaum vowed to counter with retaliatory measures. Sheinbaum said: “We have Plan A, Plan B, Plan C, depending on what the government of the United States decides. It’s very important that Mexicans know that we will always defend the dignity of our people, respect for our sovereignty and a dialogue among equals [with the U.S.], not with subordinates.” Sheinbaum noted that Mexico has been open to receiving its citizens sent back under Trump’s plan for mass deportation of unauthorized migrants and that it was prepared to take some from other countries, which represented a concession. Deputy Economy Minister for Trade Luis Rosendo Gutierrez is expected to travel to Washington on Monday, according to reports. But he can’t meet with U.S. trade or Commerce Department officials until they’re formally ratified, they said. Instead, he’ll talk to business leaders and associations. Sheinbaum has also pointed to Foreign Minister Juan Ramon de la Fuente as a key interlocutor to US Secretary of State Marco Rubio. High-level teams from Mexico’s foreign ministry and the State Department are in frequent communication working on security and migration, Mexico is the No. 1 trade partner of the United States, and sends 80% of its exports north. Mexico supplies around half of America’s imported fruit and two-thirds of imported vegetables, in dollar terms — tomatoes, berries, bell peppers, cucumbers. And it’s the largest source of imported beer. Mexico also is the No. 1 provider of medical devices to American hospitals and doctor’s offices, from surgical gloves to scalpels. Mexico emerged last year as the top market for American agricultural exports, totaling $30 billion.

· USMCA impact. While the U.S., Canada and Mexico have a standing free-trade agreement, it isn’t clear that the expected tariff action would immediately violate that pact. The U.S.-Mexico-Canada Agreement (USMCA), like most trade pacts, includes a provision that allows for the imposition of tariffs on national-security grounds.

One of Trump’s tariff goals is to push Canada and Mexico to accelerate a renegotiation of USMCA, now slated for July 2026. President Trump and his supporters believe that imports of cars and steel from Mexico (and China’s involvement in such activity) are weakening U.S. manufacturers. And they say the USMCA, the trade deal Trump signed in 2020 to replace the North American Free Trade Agreement, needs to be updated — or perhaps, scrapped.

Of note: According to economists at S&P Global, of the imports coming into the United States from Canada and Mexico, more than 18% of their value was created in the United States, before being sent to those countries. That’s far more than the proportion for other countries, and a sign of how closely the economies are integrated.

One out of three cars sold in Mexico last year came from China. That means Chinese exports are now meeting Mexican demand for cars, rather than exports from the United States, a blow to the U.S. auto industry.

· Economic impact concerns: “I think there could be some temporary, short-term disruption and people will understand that,” Trump said. Trump said the tariffs “will reinvigorate industry. “The way you bring it back to the country is by putting up a wall. And the wall is a tariff wall,” he said. “The tariffs are going to make us very rich and very strong.” He dismissed concerns that placing steep taxes on many foreign goods would lead to renewed inflation in the United States, where prices are still rising faster than the Federal Reserve’s target. “Tariffs don’t cause inflation. They cause success,” the president said.

Although Trump dismissed worries about inflation and supply chain disruptions, critics warn that broad tariff applications could disrupt trade and lead to higher prices for consumers, especially in border regions heavily reliant on imports from North America. Tariff-related price increases would hit consumers’ wallets at a time when beef prices are near record highs and costs for eggs have climbed after bird flu eliminated millions of egg-laying hens. “Any increase in expenses in the form of a tariff subsequently serves as a ‘food tax’ on consumers for imported products and is not a workable solution,” National Grocers Association spokesman David Cutler said.

Tariffs are paid by American importers and borne by consumers, though offset potentially by price reductions abroad. The burden will fall disproportionally on low-income households who spend more of their income on physical goods relative to higher income households who spend more of their income on services and experiences, which aren’t subject to tariffs.

A new analysis from the Budget Lab of Yale estimated that the proposed tariffs could raise annual costs on households by roughly $1,300. Researchers at the Peterson Institute for International Economics in Washington estimate that a 25 percent tariff on all exports from Mexico and Canada would lower U.S. gross domestic product by about $200 billion for the duration of the second Trump administration. A model gauging the economic impact of Trump’s tariff plan from EY Chief Economist Greg Daco suggests it would reduce U.S. growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in “stagflation” at home. “We have stressed that steep tariff increases against U.S. trading partners could create a stagflationary shock — a negative economic hit combined with an inflationary impulse — while also triggering financial market volatility,” Daco wrote on Saturday.

Facts and figures: 17% of U.S. goods exports go to Canada, 16% go to Mexico and 7% go to China and totaled $763 billion in the first 11 months of 2024.

Of note: For many items, there is roughly a three-month wait until the tariffs impact consumer prices as retailers sell their existing inventory that are not subject tariffs. Getting a firm impact assessment of tariffs is difficult because some exporters will absorb some of the additional costs, and currency changes by some countries will temper the impacts. There will also mean changes to trade flow patterns as buyers seek alternatives sources and sellers look for other importers.

Mexican Economy Minister Marcelo Ebrard said a 25% duty on Mexican goods would have a multibillion-dollar impact on U.S. consumers, affecting millions of households. “Mexico is the main exporter of finished products like automobiles, computers, TV screens and refrigerators,” he said, adding that tariffs would also raise prices of fresh fruit and vegetables, meat and beer. “This impact will be greater in border states and cities that are big consumers of Mexican goods, like California, Texas, Florida and Arizona,” Ebrard said.

A Wall Street Journal opinion item ( link ) was headlined: The Dumbest Trade War in History; Trump will impose 25% tariffs on Canada and Mexico for no good reason.

House Ag Committee Chairman GT Thompson (R-Pa.): Trump’s tariff policy is a crucial tool. Following the imposition of tariffs on Mexico, Canada, and China by the United States, House Ag Chairman GT Thompson issued the following statement: “President Trump’s tariff policy has been an effective tool in leveling the global playing field and ensuring fair trade for American producers. Look no further than Colombia’s about face on accepting repatriated criminal migrants at the mere threat of tariffs. After four years of the Biden/Harris administration’s failure to expand foreign markets, which led to an inflated agricultural trade deficit of $45.5 billion, America’s producers deserve an administration that will fight for them. I look forward to working alongside of President Trump to support our hardworking producers and to make agriculture great again.”

House Ag Committee Ranking Member Angie Craig (D-Minn.) released the following statement ( link ): “No one wins in a trade war. The last time President Trump started a trade war, costs went up for America’s family farmers and consumers. The same will happen today. The cost of imported goods like oil, lumber, avocados, tomatoes, bell peppers, lettuce, broccoli, cucumbers, onions and mushrooms and other fresh food are likely to go up for Americans. At a time when farmers are struggling with high input costs and the American people continue to struggle with the cost of groceries, these tariffs will make it more expensive for farmers to grow food and for consumers to buy it. Additionally, when American farmers face the inevitable retaliatory tariffs from our trading partners, their profits take a hit. This action is especially questionable since President Trump’s previous administration negotiated our last trade agreement – USMCA — with Canada and Mexico.”

Imported goods.

(Bloomberg)

Tariffs coverage. Depending on carve-outs, this round of Trump tariffs could cover more trade in dollar value than his first-term duties on China. Trump’s four tranches of tariffs on Chinese goods in 2018-19 covered imports valued at around $360 billion at the time. New tariffs on Canada and Mexico plus additional tariffs on China would — if all items are subject to the action — cover imports valued at more than $1.3 trillion in 2023. Canada and Mexico combined supplied about 28% of U.S. imports in the first 11 months of 2024, according to Census Bureau data. China accounted for an additional 13.5%.

Price hikes: From Tonka trucks to tequila. While cars and lumber are obvious price hike targets, some unexpected items could see increases, too, according to the Wall Street Journal ( link ):

Cherry tomatoes: Canada and Mexico supply much of the U.S. market.
Tonka trucks: Made exclusively in China, these toys may see a price jump from $29.99 to nearly $40.
Maple syrup: With most commercial production coming from Canada, costs could rise. Canada and the U.S. are the only two countries that produce this at commercial scale, according to Canada’s agriculture department. More than 60% of Canada’s production is exported to the U.S.
Tequila & avocados: Mexico is the top supplier, meaning Super Bowl snacks and drinks could cost more.
Smartphones: Previously spared, they may now be hit with new tariffs.
Sledgehammers: Already taxed at 25%, additional tariffs could push prices even higher.

Securing the U.S. border and dealing with fentanyl are the two major goals of the Trump tariffs. According to Robert Marbut, former homelessness czar for the first Trump administration, fentanyl has killed more Americans in the past five years than all wars combined in the past 100 years. Marbut criticized Canada’s liberal drug policies and Mexico’s unstable regions, where cartels control the drug trade. He said that if the U.S. government is going to tackle fentanyl, it needs to recriminalize drugs domestically, stop China from sending precursors, get the biker gangs in Canada under control, and force Mexico to rein in the cartels. “Fentanyl is a hundred times more powerful than morphine,” he said. “Fentanyl dusts will kill children, fentanyl dusts will kill adults. So just three grains of salt equivalent will kill anybody.”

Tariffs as a revenue raiser. Peter Navarro, a Trump trade adviser, told CNBC on Friday that the tariff effort can replace the revenue of tax cuts. “Tariffs can easily pay for that,” Navarro said. “President Trump wants to move from the world of income taxes and countless IRS agents to the world where tariffs, like in the age of McKinley, will pay for a lot of government that we need to pay for and lower our taxes.” Perspective: The non-partisan Congressional Budget Office has put the cost of extending the 2017 tax cuts — Trump’s top legislative priority — at $4.6 trillion over 10 years. A 25% tariff on the more than $900 billion in annual imports from Canada and Mexico would raise roughly $225 billion annually or $2.3 trillion over 10 years if the tariffs had no impacts on trade, which many economists see as unlikely.

Of note: Navarro thinks corn exports haven’t been entirely benign. Navarro said that NAFTA had kick-started America’s illegal immigration problem, because when the United States began exporting corn to Mexico after the trade pact took effect, that put Mexican agricultural workers out of jobs, sending some of them into the United States. “That’s where that began, our illegal immigration problem,” he said.

Tariffs impact on the U.S. ag sector. American Farm Bureau Federation President Zippy Duvall wrote ( link ) to President Trump Friday urging him to consider U.S. farmers before proceeding with tariff action. “American farmers and ranchers rely heavily on export markets for their business success, especially during these times of economic distress across rural America,” Duvall wrote. A targeted approach to tariffs, with specific exemptions for fuel and fertilizer imports, Duvall added, could “minimize negative repercussions” for farmers. Mexico and Canada account for around a third of all U.S. agriculture exports, buying $30 billion and $29 billion, respectively. China received around $26 billion of ag products last year, Duvall said.

U.S. farmers face rising costs amid proposed Canadian import tariff. The proposed 25% tariff on Canadian imports is expected to have significant repercussions for U.S. farmers, particularly in their access to potash and fertilizers. Key Impacts:

Increased fertilizer costs: U.S. farmers rely on Canada for 85-86% of their potash. The tariff could raise fertilizer prices by $50 to $75 per ton, cutting into profit margins and potentially reducing crop yields.
Short-term supply challenges: With spring planting nearing, farmers may struggle to meet urgent fertilizer needs, as domestic production accounts for less than 10% of U.S. demand. Many farmers have already purchased and applied fertilizer for the 2025 crop season, potentially mitigating immediate impacts, but farmers are unclear as to whether their undelivered fertilizer from Canada will be impacted.
Long-term market shifts: Importers may seek alternative suppliers, and Canadian producers could absorb some costs, but a more significant price increase is expected for the 2026 crop season.
Broader economic consequences: Higher fertilizer costs may lead to rising food prices, strain U.S./Canada agricultural ties, and provoke potential retaliatory trade measures from Canada.

Survey quantifies Canadian farmers’ concern about impact of tariffs, potential trade war. New data from Real Agriculture’s RealAgristudies ( link ) confirms and quantifies the level of concern in Canada’s agriculture sector if the U.S. implements 25% tariffs on Canada on Feb. 1. Farmers who primarily produce livestock are slightly more likely to expect an impact on their farm business than mixed or primarily crop-focused farmers. Interestingly, there wasn’t much difference in how farmers see the potential impact when you compare age, farm size and geography.

Results of a survey of 660 Canadian farmers between Jan. 23 and Jan. 29 showed: 59% of respondents expect the proposed Trump tariffs will negatively impact their business. Only 7% feel there will be no effect. Another 7% don’t know if there will be an impact, while 27% see a possible impact of the Trump tariffs on their farm business.

When it comes to the likelihood of a trade war that significantly decreases Canadian agricultural exports, 29% of respondents feel that scenario is very likely, while 46% say it’s likely; 11% feel a trade war that hurts ag exports is unlikely.

Livestock producers tend to see a trade war as more likely (88%) than mixed (72%) or primarily crop producers (75%).

In terms of how Canada should respond to the tariffs, 34% of respondents said “all of the above” to including export tariffs on key items to the U.S., dollar for dollar retaliation and cutting off certain U.S. imports into Canada; 23% of farmers see an export tariff on key items like potash and energy as the best response as the best singular option.

· Tariff impact support for some industries. Canadian government officials have said that they would consider bailing out businesses and supporting workers who are most affected. Some industries would be swiftly disrupted: Agriculture, automobiles and energy suppliers, pillars of all three economies, would be upended by blanket tariffs.

Tariff aid for U.S. farmers. During her Senate confirmation hearing on Jan. 23, USDA Secretary nominee Brooke Rollins addressed concerns regarding potential tariffs and their impact on U.S. farmers. She acknowledged the possible adverse effects of such tariffs on the agricultural sector and emphasized her preparedness to implement support measures to mitigate these impacts. Rollins stated that she had consulted with former USDA Secretary Sonny Perdue, who oversaw $23 billion in trade aid to farmers during the previous Trump administration, and expressed readiness to execute a similar approach if necessary. She affirmed her commitment to working with the White House to ensure that any negative consequences of tariff implementations on farmers and ranchers are effectively addressed. While acknowledging the potential challenges posed by the proposed tariffs, Rollins conveyed confidence in Trump’s understanding of the agricultural community’s concerns. She described Trump as “the consummate dealmaker” who recognizes the significant support he has received from rural America and the agricultural sector.

U.S. farmers and various trade groups are very apprehensive about not only the potential negative impacts of tariffs on the U.S. ag sector, but what they do to garner new trade agreements, especially as they see China, Brazil, Russia and Ukraine announcing new trade accords or in the process of inking new ones.

Upshot: This latest tariff announcement underscores the escalating tensions in international trade policies and the potential for significant economic consequences if the disputes deepen. The tariff moves will test (1) the limits of Trump’s honeymoon period in his second term in the White House; (2) the U.S. economy and its tentative victory over inflation; (3) American consumers’ appetite to swallow fresh price increases; and (4) the patience of allies. The move against allies Canada and Mexico is a signal that no country is safe from his push to reshape global trade. Big experiment, big impacts, big risks, both economically and politically.

Trump Moves Forward With Plans to Impose 25% Tariffs on Canada and Mexico Starting Saturday

Thu, 30 Jan 2025 22:59:42 GMT

President Donald Trump announced that his administration will impose 25% tariffs on imports from Canada and Mexico starting Feb. 1, citing concerns over trade deficits, illegal immigration, and the fentanyl crisis.

Speaking from the Oval Office, Trump justified the tariffs as a response to what he described as excessive migration, drug trafficking, and unfair trade practices. While he suggested the tariff rate could rise further, he indicated that a decision on whether oil imports would be exempted would come soon.

“Mexico and Canada have never been good to us on trade. They’ve treated us very unfairly on trade,” Trump said, pointing to the huge trade deficits between those countries and the United States. Trump also complained about fentanyl entering the country, especially from Mexico.

Trump also reiterated plans to impose tariffs on China over its alleged role in fentanyl trafficking and suggested additional sectoral tariffs on industries such as pharmaceuticals, semiconductor chips, and steel. The policy shift signals a potentially disruptive turn in North American trade relations, threatening key industries like automotive and energy.

Market Reacts
Market reactions were immediate, with oil prices rising above $73 a barrel, the U.S. dollar strengthening, and the Canadian dollar and Mexican peso dropping. The move has triggered warnings of economic fallout, with both Canada and Mexico vowing to respond with retaliatory measures.

Five Key Questions to Ask

There are five key questions regarding tariff situation:

Will they be announced Sat., Feb. 1?
Will there be a last-minute agreement with Canada and/or Mexico?
What authority will be used to implement any tariffs?
Will there be any exemptions? Ongoing negotiations suggest a possible shift toward targeted measures, particularly affecting steel and aluminum, while oil may receive exemptions.
Will there be an implementation grace period to enable more negotiations?

Tariffs as a Tool to Pressure Canada and Mexico
The proposed tariffs are intended to pressure the two countries into negotiating on migration, drug smuggling, and reforms to the USMCA. The strategy reflects Trump’s preference for using tariffs as a tool to secure compliance with U.S. demands, as seen in a recent, albeit reversed, threat against Colombia.

While both Canada and Mexico have made overtures to address U.S. concerns, Trump’s administration remains unsatisfied. Canadian officials have prepared a list of retaliatory measures and expressed frustration over unclear demands and limited communication. Mexico, meanwhile, has stepped up efforts to curb migration and drug trafficking but faces similar obstacles in negotiating directly with Trump’s yet-to-be-confirmed economic team.

If enacted, the tariffs could disrupt key industries, particularly the ag sector and automotive manufacturing, where supply chains depend on cross-border collaboration. Critics warn of potential economic fallout, including higher consumer prices and a possible recession in Canada.

Despite these risks, Trump’s advisers, including Commerce Secretary nominee Howard Lutnick, advocate for a “tariffs-first” approach to bring trade partners to the table.

If tariffs going into effect on Feb. 1 and the tariff threats materialize, it potentially triggers a new trade war on the continent.

Too Soon?
Some feel Feb. 1 will be too early for any serious tariffs action. Reasons: Trump wants his top trade officials (Commerce Secretary, U.S. Trade Representative, Treasury Secretary, etc.) at their desks. That may take beyond Feb. 1, depending on Senate confirmations.

Also, Trump’s 23 trade executive orders assigned a review of prior trade agreements, trade deficits, practices, etc., with an April 1 deadline. One task involves the White House Office of Management and Budget assessing how foreign government subsidies impact U.S. procurement, with that report due by April 30.

Trump’s Pick for Commerce Secretary Back Tariffs, Slams Canada on Dairy
Howard Lutnick, President Trump’s nominee for Commerce Secretary, strongly defended tariffs and criticized Canada over dairy trade during his Senate confirmation hearing.

Lutnick accused Canada of treating U.S. dairy farmers “horribly” and vowed to secure better trade conditions under the USMCA, which President Trump wants a renegotiation on an accelerated timeline.

Of note: Canadian Pacific Kansas City says it expects shipments in North America to grow this year despite the looming threat of tariffs from the Trump administration.

Lutnick dismissed concerns that tariffs drive inflation, citing China and India’s policies, and expressed support for broad-based tariffs over a selective approach.

Lutnick also linked Trump’s proposed 25% tariffs on Canada and Mexico to border security and fentanyl concerns.

Lutnick said he prefers an “across-the-board” approach to imposing tariffs on foreign goods to put pressure on other countries to lower their own barriers to U.S. exports.

“Our farmers, our ranchers and our fishermen are treated with disrespect” by countries around the world, Lutnick said. “We need the disrespect to end.”

To accomplish that, Lutnick said he favors using across-the-board tariffs on all imports from a particular country, rather than a much more targeted approach.

“I think when you pick one product in Mexico, they’ll pick one product,” Lutnick said. “You know, we pick avocados, they pick white corn, we pick tomatoes, they pick yellow corn. All you’re doing is picking on farmers, which is just not going to happen.”

Canada Gears Up for Potential Trade Tensions with Trump

Tue, 07 Jan 2025 17:41:24 GMT

As expected, Prime Minister Justin Trudeau announced his resignation after more than nine years in office, citing declining approval ratings and internal party discord.

Trudeau, currently the longest-serving leader among G7 nations, plans to step down as head of the Liberal Party within months but will remain prime minister until a successor is chosen. Parliament is suspended until March 24 as the leadership transition unfolds.

“Canadians deserve a real choice in the next election, and it has become obvious to me, with the internal battles, that I cannot be the one to carry the Liberal standard,” Trudeau said.

The incoming Liberal leader will become Canada’s 24th prime minister but faces an uphill battle, with the Conservative Party currently favored to win the next election.

Meanwhile, Mark Carney, the former governor of the Bank of Canada and Bank of England, said he’s considering entering the race to replace Justin Trudeau as Canada’s prime minister. Canada’s currency strengthened after Trudeau said he plans to resign.

Bottom line:

Trudeau’s resignation reflects a culmination of long-standing issues, including declining popularity, internal party dissent, and external political pressures. Conservative leader Pierre Poilievre amplified demands for Trudeau’s resignation and early elections.

Gearing Up for Trade Tensions

As President-elect Donald Trump’s inauguration nears, Canada is preparing for potential trade challenges following Trump’s threat of a 25% tariff on Canadian imports. The Canadian government is considering a proactive approach, including the possible early release of a retaliatory tariff list.

A report from The Globe and Mail reveals that Canada might unveil a list of American goods subject to retaliatory tariffs ahead of time. This strategy was deliberated during a Canada/U.S. cabinet committee meeting on Jan. 6, 2025, though no final decision has been made.

Outgoing Prime Minister Justin Trudeau and his cabinet have been holding strategic meetings, emphasizing the importance of the issue. Canadian officials, including Trudeau, have engaged with Trump’s team to mitigate tensions. Ontario Premier Doug Ford proposed restricting energy supplies to certain U.S. states as a retaliatory option.

Says a Canadian contact: “This retaliatory list idea is very similar to past Canadian strategies and will likely strategically target certain states to influence reaction.”

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Trump Vows New Canada, Mexico, China Tariffs That Threaten Global Trade

Tue, 26 Nov 2024 17:00:15 GMT

By Costas Pitas

President-elect Donald Trump on Monday pledged big tariffs on the United States’ three largest trading partners - Canada, Mexico and China - detailing how he will implement campaign promises that could trigger trade wars.

Trump, who takes office on Jan. 20, said he would impose a 25% tariff on imports from Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border, in a move that would appear to violate a free-trade deal.

Trump separately outlined “an additional 10% tariff, above any additional tariffs” on imports from China. It was not entirely clear what this would mean for China as he has previously pledged to end China’s most-favored-nation trading status and slap tariffs on Chinese imports in excess of 60% - much higher than those imposed during his first term.

The two posts on Truth Social represent some of Trump’s most specific comments on how he will implement his economic agenda since winning the Nov. 5 election on promises to “put America first”.

“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump said.

The U.S. accounted for more than 83% of exports from Mexico in 2023 and 75% of Canadian exports.

The tariffs may also spell trouble for overseas companies like the many Asian auto and electronics manufacturers that use Mexico as a low-cost production gateway for the U.S. market.

Trump’s threatened new tariffs would appear to violate the terms of the U.S.-Mexico-Canada Agreement (USMCA) on trade. The deal which Trump signed into law took effect in 2020 and continued the largely duty-free trade between the three countries.

Canada and the United States at one point imposed sanctions on each others’ products during the rancorous talks that eventually led to USMCA. Trump will have the opportunity to renegotiate the agreement in 2026, when a “sunset” provision will force either a withdrawal or talks on changes to the pact.

After issuing his tariff threat, Trump held a conversation with Canada’s Prime Minister Justin Trudeau in which they discussed trade and border security, a Canadian source familiar with the situation said.

“It was a good discussion and they will stay in touch,” the source said.

Trump could be counting on the threat of tariffs to prompt an early renegotiation of USMCA, said William Reinsch, a former president of the National Foreign Trade Council.

“This strikes me more as a threat than anything else,” Reinsch said. “I guess the idea is if you keep hitting them in the face, eventually they’ll surrender.”

Mexico’s lower house leader Ricardo Monreal, a member of the ruling Morena party, urged “the use of bilateral, institutional mechanisms to combat human, drug and arms trafficking.”

“Escalating trade retaliation would only hurt the people’s pocketbooks and is far from solving underlying problems,” he said in a post on social media platform X.

Trump’s announcement sparked a dollar rally. It rose 1% against the Canadian dollar and 1.6% against the Mexican peso, while share markets in Asia fell, as did European bourses in early trade. S&P 500 futures were little changed.[FRX/][MKTS/GLOB]

China: No One Wins Trade Wars

On China, Trump accused Beijing of not taking strong enough action to stop the flow of illicit drugs into the U.S. from Mexico.

“Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America,” Trump said.

A Chinese embassy spokesperson in Washington said China believed that China-U.S. economic and trade cooperation was mutually beneficial. “No one will win a trade war or a tariff war,” Liu Pengyu said.

The embassy also cited steps it said China had taken since a 2023 U.S.-China meeting after which Beijing agreed it would stem the export of items related to the production of the opioid fentanyl, a leading cause of drug overdoses in the United States.

“All these prove that the idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality,” the spokesperson said.

Chinese foreign ministry said in a statement that China was willing to continue anti-drug cooperation with the U.S. on the basis of “equality, mutual benefit and mutual respect.”

“The U.S. side should cherish China’s goodwill and safeguard the hard-won sound situation of Sino-US drug control cooperation,” the ministry said.

Chinese Vice President Han Zheng, speaking at a supply chain expo in Beijing on Tuesday, said China was ready to work with other countries to build an open world economic system and maintain the stability of global industrial and supply chains.

China’s economy is in a vulnerable position amid a prolonged property downturn, debt risks and weak domestic demand.

In the run-up to the Nov. 5 election, Trump floated plans for blanket tariffs of 10% to 20% on virtually all imports. He also said he would put tariffs as high as 200% on cars coming across the U.S.-Mexico border.

Mexico’s finance ministry said of Trump’s tariff pledge: “Mexico is the United States’ top trade partner, and the USMCA provides a framework of certainty for national and international investors.”

Economists say Trump’s overall tariff plans, likely his most consequential economic policy, would push U.S. import duties back up to 1930s levels, stoke inflation, collapse U.S.-China trade, draw retaliation and drastically reorder supply chains.

(Additional reporting by Kylie Madry, Jasper Ward, David Lawder, Andrea Shalal, David Ljunggren, Brendan O’Boyle, Joe Cash, Ethan Wang and Liz Lee; Editing by Stephen Coates, Edwina Gibbs and Mark Potter)

Canada Meat Sector Calls on Government to Reverse Course

Thu, 30 May 2024 15:03:40 GMT

Recent changes to foreign worker rules from the Government of Canada are having a disproportionate impact on the rural Canadian economy, and the national organizations representing the Canadian meat industry are calling on the government to reconsider these changes.

The Canadian Meat Council, the Canadian Cattle Association, National Cattle Feeders’ Association and the Canadian Pork Council are asking government to restore the Temporary Foreign Worker Program’s Workforce Solution Roadmap, a roadmap introduced, in 2022, to address the industry’s critical labor shortage.

“While we understand the federal government is seized with a housing shortage, temporary foreign workers are not the problem, representing only 9% of the temporary resident population. Meanwhile, the decision to reduce temporary foreign worker numbers is having the precise opposite impact the government says it wants on food affordability in Canada,” the Canadian Pork Council said in a release.

On May 1, producers and processors faced not only the reduction of the 30% cap but a reduction in the time limit for a labor market impact assessment (LMIA)s, the release said. These changes were made without industry consultation, which has resulted in an impact on productivity, competitiveness and levels of food production possible in Canada, the Canadian Pork Council claims.

“Every job unfilled in our barns, in our processing facilities, and in our supply chain has an outsized impact on rural areas because Canada does not have additional people living in these areas who can fill these jobs,” Rene Roy, chair of the Canadian Pork Council, said in a release. “If there’s a shortage of workers in the processing sector, it runs the risk that producers can’t ship their product to market, causing uncertainty for producers and consumers alike. We need to help recruit more new Canadians to rural areas, and creating uncertainty defeats our efforts to convince people to come join our industry.”

Agriculture accounts for almost 10% of Canada’s gross domestic product, and the sector provides one in nine jobs in the Canadian economy.

“Beef producers are integral to Canada’s rural economy and changes to the temporary foreign worker program will increase pressures on our labor challenges,” said Nathan Phinney, president of the Canadian Cattle Association. “It is essential that we have a reliable supply chain for our economic sustainability and ability to produce for Canadians and global consumers. Our trade partners need steady, consistent supply—any disruption can impact our ability to compete on a global scale, while keeping costs down at home.”

The Canadian meat industry urges the government to work on these important issues through advanced consultation and dialogue.

“Industry has proven its case time and again to government, the government decision to reduce the cap did not consider the impact to food security data but was instead a knee-jerk reaction to a housing challenge that our industry is not responsible for,” Chris White, president and CEO of the Canadian Meat Council, said in a release.“ Our industry is mostly located in rural communities, and those communities still depend on these workers to keep our operations going so we can feed Canadians at an affordable price and bring quality Canadian products to the world.”

The Canadian Wildfires Never Fully Died Down In 2023, And That's Why They're Back With A Vengeance Now

Wed, 22 May 2024 18:07:03 GMT

The wrath of wildfires is something Canada knows all too well. After a historic season, 2024 is off to an active start with some fire forecasters saying this year’s wildfire threat could rival 2023.

“2023 in Canada was a historic wildfire season by many means. We absolutely shattered all records. Millions upon millions of acres of forests were burnt,” says Matt MacDonald, the lead fire weather forecaster for the B.C. Wildfire Service.

MacDonald says those blazes burned across the country–from coast to coast, top to bottom.

“All 13 provinces and territories has significant wildfire on the landscape. And particularly here in western Canada and British Columbia, 1.8 million acres were burned last season,” says MacDonald. “So, it was a tremendous ground-shattering year. And we’re hoping we don’t see that again this year.”

(Farm Journal)

Dormant Threat Under The Snow

He’s hopeful 2024 doesn’t see a repeat, however this year’s wildfire season is already off to a fierce and early start much of that due to fires leftover from 2023.

“We’re already off to a busier start than we were last year, primarily due to these holdover fires. It’s one thing to have the drought to have the dry fuels. But at least last year, we were waiting for that ignition, whereas this year, the ignition is already there. Those fires actually never went away. They just kind of went dormant under the snow.

MacDonald says the wildfire season in 2023 lasted unusually long, not dying down until early November.

“And then finally, we put snow on the landscape and there’s nothing like snow to calm a fire. But what ends up happening is these fires continue to smolder, believe it or not below the snow,” says MacDonald. “So, while it may appear white on the landscape, these fires continue to burn at root bulbs into what we call the duff layer, which is the top foot or so of soil.

He says scientists were already detecting heat signals even before the snow melted.

“And sure enough, the snow melted, we put a little bit of wind on these holdover fires, and just earlier this week we had a cold front push through the northern part of the province. The explosive growth at which these fires came back to life was truly incredible,” says MacDonald.

What’s happened in just a week’s time is astonishing. Tens of thousands of acres are scorched from a fire in British Columbia. The province of Manitoba is fighting a massive blaze that had burned more than 86,000 thousand acres late last week.

While part of the problem is fires left over from 2023, the bigger issue is a multi-year drought continuing to fuel the blazes.

“The drought is very real. It’s very, very deep. And it’s very persistent,” MacDonald explains. “So, once we get fire on the landscape, it really digs in becomes difficult to control and to respond to. And then we just end up with these massive configurations, you know, fires that grow into 10s of 1000s, and even hundreds of 1000s of acres per fire.”

(Farm Journal)

MacDonald says in British Columbia, 122 wildfires are on the landscape today, 8% of which are out of control as forecasters brace for more blazes this year.

“June is really that critical month for us will really determine, you know, the severity of our fire season. But again, this this drought is just so deep and persistent that it’s hard to think you know, a few weeks, even a month worth of rain is going to wash away all our problems. I think we’re in for another act of fire season here in 2024,” he adds.

The wildfires are already causing air quality concerns in the Plains and Midwest. The fires triggered air quality alerts across the U.S. starting last week.

The Smoke Effect on Crop Yields

The wildfire smoke was a constant issue most of the summer last year; however, there was a bright spot.

“Between corn and soybeans, corn is a little more susceptible to reductions in light. The wildfire smoke came through in June when we were experiencing drought-like conditions, and a lot of crops were experiencing stress at that point,” explains Dan Quinn, Purdue University extension corn specialist. “Those reductions in light reduced leaf surface temperatures and transpiration off those plants, which alleviated some of that stress.”

A Purdue report showed despite the temporary benefit in light reduction for crops, wildfire smoke still caused other harmful effects on crops and the environment. Since wildfires emit various air pollutants to form ozone when reacting with sunlight, Quinn said the ozone can cause harm to both corn and soybeans by entering the plant through the stomata, which burns plant tissue during respiration.

Summer Precipitation and Temperature Outlook

Is the U.S. in for another dry and hot summer in 2024? The National Weather Service (NWS) Climate Prediction Center (CPC) just released its summer forecast, which is taking into account the transition from El Niño to La Niña. The CPC thinks El Niño will transition to the neutral state of the El Niño-Southern Oscillation (ENSO) next month. The summer outlook shows areas of the Plains and Western U.S. could see drought and dry conditions this summer, while much of the U.S. is expected to be warmer than normal.

(Farm Journal)

Which Foreign Country Owns the Most Farmland in the U.S.? Hint: It's Not China

Thu, 11 Jan 2024 17:24:37 GMT

Controversy continues to grow across the U.S., and China is the primary target of the new rules. However, China doesn’t own the most farmland in the U.S., according to a new USDA report. It’s actually Canada, which accounts for 32%, or 14.2 million acres.

Rounding out the top five are the Netherlands at 12%, Italy at 6%, the United Kingdom at 6% and Germany at 5%. Together, citizens in those countries hold 13 million acres, or 29%, of the foreign-held acres in the U.S. China owns less than 1%, or 349,442 acres.

(Farm Journal)

All told, 43.4 million acres of forest and farmland in the U.S., or 3.4% of all ag land, is foreign owned as of Dec. 31, 2022. Roughly 30 million of those acres are reported as foreign-owned, with the remainder primarily under a 10-year-or-longer lease. Of the 30 million, 66% is owner-operated, 14% has a tenant or sharecropper as the producer and 12% report a manager other than the owner or a tenant/sharecropper as producer. The remaining 7% are “NA.”

USDA says the two biggest Chinese-owned companies with land holdings in the U.S. are Brazos Highland and Murphy Brown LLC, which owns Smithfield Foods. Brazos Highland reported owning 102,345 acres, and Smithfield owns 97,975 acres.

(Farm Journal)

The top five states with the largest Chinese holdings are:

Texas at 162,167 acres
North Carolina at 44,776 acres
Missouri at 43,071 acres
Utah at 32,447 acres
Virginia at 14,382 acres

USDA reports those five states combined account for 85% of China’s farmland ownership. In Texas, USDA reports China has long-term leases associated with wind energy, and in North Carolina and Missouri, ownership is tied to Smithfield and producers who contract for pork production.

More States to Take Up Possible Bans in 2024

Foreign-held farmland has become a hot button topic on Capitol Hill. Farm Journal Washington correspondent Jim Wiesemeyer thinks it will continue to gain momentum in 2024 as a political ploy used by candidates.

“It’s an emotional issue, and it’s not a simple issue either,” Wiesemeyer says. “I was recently in Missouri, and some commodity leaders worry about the negative consequences of going too far. No one’s saying China should not be watched relative to buying farmland near airports, national security is involved in that case, but more than a few farmers are looking at the potential downsides for pork producers who contract with Smithfield and the number of acres they own.”

One of those unintended consequences is playing out in Arkansas.

“I’m announcing Syngenta, a Chinese state-owned agrichemical company, must give up its landing holdings in Arkansas,” says Gov. Sarah Huckabee Sanders, referencing a 160-acre research site owned by Northrup King Seed, a Syngenta subsidiary.

Eric Boeck, president of Syngenta Seeds North America, told Farm Journal editor Clinton Griffiths: “EPA and USDA many times require us to do work and permitting right in the same state as we’re going to sell products. One of the first things we have to make sure we figure out is how we work with the local community to make sure we’re still getting products tested in their backyard, so we have the ability to sell those products.”

(Farm Journal)

Syngenta argues if they sell that particular farm, Arkansas farmers will be at a disadvantage because research can’t be done in the same weather and soil conditions.

“We’re heavy in the soybean market in Arkansas, some of those maturity zones, we have a very significant market share and savings,” Boeck says. “We want to make sure we’re protecting those farmers’ abilities to be able to use our products.”

Wiesemeyer says the bigger issue for U.S. farmland might be solar panels, with farmers in states like Missouri reporting companies have offered to pay more than $1,000 per acre cash rent to put solar panels on their farm. At such a high price, he says it’s eating up acres of farmland, with the potential to grow even more in 2024.

USTR Comments on USMCA Meetings

Fri, 07 Jul 2023 19:00:00 GMT

During a bilateral meeting on Thursday, U.S. Trade Representative (USTR) Katherine Tai discussed with Mexico’s Secretary of Economy Tatiana Clouthier various issues concerning energy and biotech corn.

According to the Office of the USTR, Tai highlighted concerns about the recent upsurge of steel and aluminum imports from Mexico into the U.S. Further, the regulatory uncertainties confronted by American electronic payment service providers operating in Mexico, and Mexico’s telecommunications spectrum fee method were also issues that were discussed.

Tai said that trade dispute settlement consultations over GMO corn that the U.S. requested in June began with Mexico last week.

Mexico’s Health Ministry on Monday published a draft proposal to modify the Official Mexican Standard (NOM) that governs products made from masa, or corn dough. The proposal is part of an overall federal government effort to stop Mexicans from eating white GMO corn imports, most of which comes from the U.S.

“The use of genetically modified corn as a raw material must be avoided in the making of the products covered by this Mexican Official Standard,” states the document.

Interested parties have 30 days to comment on the proposal, after which the government could publish a modified NOM in its official gazette that bans the use of GM corn in tortillas. The modified NOM would take effect 60 days after publication. The National Chamber of Industrialized Corn (Canami) said that the proposed measure “creates restrictions on international trade and members of the International Trade Organization must be notified.”

Canami also said that the costs of laboratory tests to determine whether corn is GMO or not aren’t being considered. The chamber said that those costs could cause their members to record net losses.

The Health Ministry’s publication came just over a week after the federal government imposed a 50% tariff on white corn imports to limit human consumption of GMO corn. The tariff, which ends access to white corn imports, is scheduled to remain in force until Dec. 31, 2023, after which Mexico intends to ban the importation of GMO corn for human consumption. A ban on GMO corn for animal feed is slated to come in at an unspecified later date, depending on supply.

What’s Next with Mexico and the U.S. in GMO Corn

Despite the contentious nature of these topics, Tai remains hopeful of solutions. She affirmed to reporters that the U.S. has noted some progress in negotiations about energy with Mexico, expressing optimism that the dispute would eventually be resolved.

In a second readout, USTR said Tai discussed the disputes over Mexico’s energy and biotech corn policies with Canadian Trade Minister Mary Ng. Tai also underscored the need for Canada to fully meet its USMCA commitments, including dairy and home shopping, and urged Canada to refrain from imposing a digital services tax.

Of note: The latest Commerce Department report shows the U.S. trade deficit with Mexico rose to a record $14.1 billion in May.

USMCA Up for Debate in Mexico This Week

Thu, 06 Jul 2023 17:16:27 GMT

This week’s talks in Cancun, Mexico between U.S. Trade Representative (USTR) Katherine Tai, Canadian Trade Minister Mary Ng, and Mexican Economy Minister Raquel Buenrostro will allow them to assess the state of the agreement and discuss a series of disputes. Issues include:

• U.S. and Canadian concerns about Mexican energy and biotech policies

• U.S. concerns on Canadian dairy barriers

• Canadian objections to U.S. softwood lumber duties

Another issue is auto rules of origin regulations. Canada and Mexico previously contested the Trump administration’s approach to implementing these rules, arguing the U.S. interpretation was more burdensome than originally negotiated. Even though they won the case in December 2022, the Biden administration has yet to modify the approach, inviting possible retaliation from Canada and Mexico.

Stakeholders plead for answers

U.S. business groups want the Biden administration to formally request a dispute settlement panel to challenge Mexican energy policies that they believe are a violation of the USMCA that went into force three years ago.

The American Petroleum Institute and more than a dozen other business groups raised the energy concern in an 11-page letter to Tai ahead of her attendance today and tomorrow at a meeting of the USMCA Free Trade Commission in Cancún, Mexico.

“We commend the Biden administration’s decision last year to request consultations under the USMCA regarding Mexico’s energy policies,” the groups said in the letter. “However, we are concerned by the Mexican Government’s failure to fix the issues raised by the United States. Mexico continues to hinder the operations of private companies in its energy sector, contrary to its own laws.”

Tai requested consultations with Mexico on the energy issues nearly one year ago on July 20, 2022, and was joined by Canada in the dispute. However, neither country has taken the next step of asking for a panel of trade experts to hear their complaint and decide whether Mexico has violated the three-year-old pact.

Regarding U.S. disputes against Mexico’s biotech corn policies and Canada’s dairy market access barriers, the U.S. has formally requested a dispute settlement panel to issue a decision.

USMCA dispute bottom line

USTR officials said that while the issues on biotechnology, dairy and energy may come up during the discussions, the dispute settlement process was the “primary” venue for such discussions.

“While there are areas of disagreement, of course, some of which may come up in these bilateral meetings, they do not outweigh the productive nature of our trade relationship,” an official said.

The official said those items are not “walled off” from being discussed, the primary format on those topics is the consultations that are ongoing.

Expiration date stamped on the USMCA

The USMCA has an expiration timeline of 16 years, with the opportunity for extension depending on the consensus of Canada, Mexico, and the U.S. The review process starts in year six (2026), where each country can express desire to extend or can raise issues to be addressed. In the latter case, annual reviews will continue until the issues are resolved or the agreement ends in year 16.

Canada Warns on 'Product of USA' Regulation

Thu, 27 Apr 2023 15:41:48 GMT

In early March, the USDA proposed the label be restricted to meat, poultry and eggs that are born, raised, slaughtered and processed in the United States. Currently, foreign meat that is processed in U.S. plants can be labeled “Product of USA.” Arun Alexander, Canada’s deputy ambassador, isn’t convinced this is a good practice.

Canada’s “Product of USA” Outlook

Alexander in Washington, said Tuesday, “We are concerned about the real-world consequences” of changing the rules on the voluntary “Product of USA” label. He went on to say the integrated livestock market “is a real reflection of the value and importance of local and regional food systems.”

With animals from both nations available to processors, plants can operate at full capacity, he said. “Small and medium-sized processors are the ones that can least afford to segregate products.”

Related story: USDA Seeks to Limit Use of ‘Product of USA’ Label By Packers

Of the voluntary “Product of USA” label, Alexander said, “I think we have to look at the specific products to make sure we don’t disrupt those effective supply chains. And so we are willing to work together with the United States to implement measures that achieve the objective but also not disrupting those supply chains.”

The Upshot

According to Alexander, Canada “will participate in USDA’s consultation process” on the regulation. The public comment period on the proposal runs through June 11.

Peel: Cattle Feeding in Ontario, Canada

Mon, 30 Jan 2023 18:59:11 GMT

Recently I had the opportunity to visit Ontario for the Ontario Cattle Feeders Association Annual Beef Industry Convention in London, Ontario. The organization is celebrating its 25th anniversary in 2023.

In addition to a great convention, I had the opportunity to visit a number of cattle feeding operations and learn a bit about how cattle feeding works in this unique environment.

Cattle feeding in Ontario is almost entirely indoors due to the cold and wet climate of the region. The photos show several different cattle feeding operations. Ontario is a significant crop production region and feeders utilize corn (dry and high-moisture) and co-products (mostly wet distiller’s grains) intensively.

Waste management is a major issue with barns using either solid floors, which must be scraped and re-bedded weekly or slatted floors with liquid waste lagoons. In either case, farms must have several months to a year of manure storage as manure can only be applied to cropland in short summer windows of time. Manure is an increasingly valuable output, especially with current fertilizer prices.

The Ontario cattle feeding industry utilizes several sources of cattle. Most of the beef cows in Canada are in the Prairie Provinces and feeder cattle have historically moved east to supply the feedlot industry in Ontario. Cattle are also sourced from Virginia and surrounding regions in the U.S. at times when cattle prices and exchange rates are favorable. Increasingly now, however, the rapidly growing source of cattle are beef x dairy crossbred calves from Ontario and Quebec.

The organization is also celebrating 25 years of the Ontario Corn Fed Beef program, which continues to have success in both domestic and international beef markets. The program has been particularly successful in Japan.

Seeing cattle feeding in this environment emphasizes again to me, the extraordinary ability the beef industry to adapt to a wide range of locations and environments.

I enjoyed tremendous hospitality from cattle feeders in Ontario and I wish continued success for them.

Photos provided by Derrell Peel.

Four Ag Topics Discussed in Mexico City During USMCA Meetings

Fri, 13 Jan 2023 18:40:59 GMT

Mexico City ran the headlines this week, as Mexican President Andrés Manuel López Obrador hosted President Biden and Canadian Prime Minister Justin Trudeau for the 10th North American Leaders’ Summit.

In their Tuesday meeting, the three leaders shared a conversation including these top takeaways for the ag industry:

1. Semiconductor manufacturing

The three agreed to organize a semiconductor forum with industry representatives and government officials in early 2023 to coordinate semiconductor supply chain needs and investments. Semiconductor companies building new manufacturing facilities in the U.S. would like to put parts of their supply chain in Mexico.

Read more: What to Watch in 2023

2. Methane and food waste reduction

The countries also committed to reducing methane emissions from the solid waste and wastewater sector by at least 15% by 2030 compared with 2020 levels, and to develop a proposal to cut food loss and waste in half by 2030.

3. Energy

Biden, López and Trudeau agreed to create a plan for standards and installation of electric vehicle chargers along their international borders.

The energy topic comes as Mexican officials are in consultations with the U.S. to avoid a U.S.-Mexico-Canada Agreement (USMCA) dispute panel over Mexican energy policy. Canada has also joined in the complaint.

The U.S. Trade Representative’s office says the policy puts billions of dollars in U.S. investments at risk.

Canada also has concerns over the implementation of an electric-vehicle provision in the Inflation Reduction Act signed by Biden last year.

While Trudeau did not elaborate on his concerns, Biden said Trudeau has “always been there” when he reached out. With that, Biden intends to travel to Canada to discuss the matter in March.

Read more: Title 42 Talks Continue with Biden at U.S./Mexico Border

4. U.S./Mexico Border Wall

Biden, in the meeting, was met with thanks from López Obrador for not building “even one meter of wall.”

“You are the first president of the United States in a very long time who has not built even one meter of wall. We thank you for that, sir,” said López Obrador.

The comments come as the Biden administration announced a program to allow 30,000 migrants from Cuba, Haiti, Nicaragua and Venezuela, collectively, to enter the U.S. legally each month.

Still, López Obrador suggested Biden “insist” Congress regularize undocumented Mexican migrants who work in industries where American employers are struggling mightily to find enough workers.

By the end of the discussion, López Obrador labeled Biden as “a man with conviction.” López Obrador then moved to challenge Biden to improve life across the region, telling him he “holds the key” to change.

“This is the moment for us to determine to do away with this abandonment, this disdain and this forgetfulness for Latin America and the Caribbean,” López Obrador said.

While López Obrador and Biden reserved a moment for a border wall discussion, no commentary was shared regarding GMO corn trade .

Read more: Mexico’s GMO Corn Debate Tabled Until 2025, According to Mexico

Alberta Man Linked To Multi-Million-Dollar Hay ‘Scam’

Tue, 17 May 2022 18:28:37 GMT

A Canadian man alleged to have orchestrated a multi-million-dollar hay fraud scheme in the U.S. has been charged with similar crimes in Canada.

Scott James Piggott will go on trial May 1, 2023, in Lethbridge, Alta., on two charges of theft over $5,000 and one count of fraud over $5,000. Piggot also faces similar charges in Drumheller and Taber, Alta.

Last month Montana Attorney General Austin Knudsen warned Montana ranchers about hay scams. The state’s Office of Consumer Protection said in a statement it estimated a Canadian company has stolen up to $5 million from Montanans.

The company, New Way Ag, according to the statement, promised grain hay, barley straw, and wheat straw at low prices to quickly make sales, collected payments, and then never delivered any product to their victims. To aid in the investigation, Montanans who made payments to New Way Ag should contact the Montana Office of Consumer Protection at 406-444-4500. The Monana Attorney General’s office believes Piggot is linked to New Way Ag, though the details still remain unclear.

According to CBC News, the specialized prosecution unit involved in the Piggott case ordinarily handles cases involving alleged frauds and thefts greater than $500,000.

Kyler Nerison, communications director for the Montana Department of Justice, told CBC News that New Way Ag was brought to their attention through tips from across the state. One Montana rancher lost $100,000, Nerison said, and since the department put out the warning they’ve received numerous calls from other people who claim to have had the same experience.

“They took the money and ran, essentially. It’s bad news. It’s distressing to see people take advantage of others in that way,” Nerison said.

Canada Beef Announces Global Marketing Plans

Tue, 03 May 2022 19:09:27 GMT

Canada Beef says it will spend $3.6 million to promote Canadian beef and veal exports globally.

The funds are available from the AgriMarketing Program, under the Canadian Agricultural Partnership (CAP), which is a five-year, $3 billion federal-provincial-territorial investment in the agriculture, agri-food and agri-based products sector that began in April 2018.

In addition to promoting Canadian beef abroad, the program will enhance awareness of the value proposition created by farmers and other participants within the beef and cattle supply chain.

The Canadian Beef Global Market Development and Promotion project contains strategies and tactics to support growth in 19 new and existing export markets.

Canada Beef President Michael Young said the ability to partner with the Government of Canada to deliver important programs is crucial to Canada’s beef industry, especially at a time when the pandemic and world events contribute to an ever-evolving marketplace.

“Government-industry development funding that Canada’s cattle producers are able to leverage with their own producer check-off investment is important to position the industry for growth and success in international markets,” Young said.

Canada exports 45% of its beef and cattle production to international markets each year, and international trade adds more than $600 per head of additional value for Canadian rancher and feeders.

“Canadian cattle producers deliver high-quality, internationally recognized products. Building on this reputation, our government’s investment will help the industry capture opportunities for growth and ensure that Canada’s beef sector remains a driver of our economy,” said the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food.

Exports of Canadian beef (January to December 2021) were up 20% in volume and up 37% in value from last year. Most of these sales came from export markets identified and targeted in Canada Beef’s project.

Canada Reports First BSE Case In Six Years

Thu, 23 Dec 2021 15:49:27 GMT

Canada reported a case of bovine spongiform encephalopathy (BSE) in an eight-and-a-half-year-old beef cow, the World Organization for Animal Health (OIE) confirmed. The cow originated in the province of Alberta and is the first case of BSE in Canada in six years.

As a precaution, South Korea announced it has suspended beef imports from Canada. The fourth-largest beef importer in the world, South Korea said it is seeking more information before lifting its suspension.

Patrick Girard, spokesman for Canada’s Food Inspection Agency, said no other countries have said they are considering trade action. Canada is the world’s eighth-largest beef exporter.

Alberta Agriculture Minister Nate Horner said the newly discovered BSE case is atypical and presents no risk to human health and is not transmissible. Horner said in a statement that he does not expect the case to affect the market and said the quick detection demonstrated that inspectors and producers were dedicated to keeping the disease out of Canada’s cattle herd.

The OIE has reported that on December 6, 2021, a private veterinarian visited a farm reporting that an eight-and-a-half-year-old beef cow that was injured and displaying some neurological signs.

Samples were taken as part of the national surveillance program for BSE in Canada. Rapid tests conducted at the provincial laboratory in Edmonton, Alberta were non-negative which was reported to Canadian Food Inspection Agency (CFIA). The results were confirmed by CFIA’s OIE BSE reference laboratory in Lethbridge, Alberta on December 16, 2021 as an Atypical (H-type) case of BSE.

The carcass was held and did not enter the human food or animal feed chains.

The OIE said the detection of atypical BSE in Canada underscored the ongoing effectiveness of Canada’s robust targeted BSE surveillance program.

“Canada continues to have in place an enhanced feed ban that includes strict controls for the exclusion of specified risk materials from the entire animal feed chain and fertilizers,” the OIE report said.