Description
Canada's canola sector is breathing a sigh of relief following China’s commitment to extend the suspension of tariffs on Canadian canola meal for another two years.
The extension, coinciding with the federal trade and agriculture ministers' visits to China last week, provides a much-needed period of predictability, says Andre Harpe, who farms at Valhalla Centre, Alberta and is chair of the Canadian Canola Growers Association (CCGA).
"I can probably wrap that up in one word: stability," he says, when asked what the tariff relief means for canola growers.
The extension came just in time, as exporters were weeks away from loading ships in Vancouver that would have otherwise arrived in January facing 100 per cent duties, notes Harpe.
While the tariff on canola seed was also reduced earlier in 2026, canola oil still faces tariffs entering China.
Harpe says diversification remains critical for canola demand, including the development of the renewable fuel market in Canada, with domestic crush capacity set to cover around three-quarters of Canada's typical 20-to-22-million-tonne crop.
CCGA and the Canola Council of Canada held their annual Hill Day in Ottawa last week, where directors and staff met with MPs and senators to advocate for canola’s role in Canada’s energy future.
Speaking with RealAg the day after attending the release of the federal budget, Harpe says CCGA welcomes the expanded tax-deferral eligibility for generational family farm transfers—which now better accommodate transitions to nieces and nephews—but says CCGA was hoping to see stronger language supporting renewable fuels and sustainable aviation fuel.
He says they're also still studying Environment and Climate Change Canada’s (ECCC) proposed amendments to the Clean Fuel Regulations (CFR), which feature a credit multiplier instead of strict domestic content requirements. Harpe says CCGA remains cautiously optimistic about the technical formulas, but wants to ensure it prioritizes canola as a primary feedstock.
While acknowledging ECCC has lagged in prioritizing domestic agricultural feedstocks in its renewable fuel policy, he sees a promising shift in the federal government's overall tone. For example, Harpe notes the Parliamentary Secretary to the Minister of Energy, Claude Guay, delivered the keynote speech at CCGA’s reception for the first time, signaling that Ottawa increasingly views canola as a component of Canada's energy strategy rather than only an agricultural export.
Sudden CEO change
Amid these policy discussions, CCGA's board is also navigating a sudden internal transition. Rick White, who served as CEO for 18 years, exited the role in late October. Dave Gallant, who leads the CCGA's cash advance administration, has been appointed interim CEO.
"I really can't comment on that right now, but we really do value what Rick has done for CCGA and agriculture in general," says Harpe, when asked about White's abrupt departure.
Harpe says CCGA's day-to-day operations—including the cash advance program—will not be disrupted by the CEO change.
#canola #farming #china
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