Manitoba Farmers Brace for Price Drops in the middle of Trump Tariff -Trussel – Winnipeg

With US President Donald Trump’s promise to impose 25 percent tariffs on Canadian imports starting February 1st, Manitoba farmers are encrypted to understand what it means for their products and their livelihoods.

Oats, Canola and soybeans from Colin Penners Gård near Elm Creek usually go straight to the United States. Now he is not sure where they want to go.

“Our Canola, I have marketed it to a processor here in Manitoba, but their final product ends up going into the states.”

Farmers throughout the province are stiffened for price declines. Penner believes he will still be able to pay his bills, but his profit margins will be slim. He also expects to pay much more for the American products he needs to operate his farm.

“Much of our equipment comes from the states. So with the weak Canadian dollar it will really affect us negatively there, ”says Penner. “Much of our phosphate fertilizer comes from the states. We have it at home, it’s in the trash right now, but for next year it can really affect us negatively.

“Tariffs will be bad for farmers on both sides of the line,” he continues. “Whether it is Canadian or American, it will not be positive.”

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The United States is Canada’s largest trading partner. Manitoba exported $ 4.5 B (CAD) in agricultural foods south of the border last year.

Colin Hornby, general manager of Landstone Agricultural Producers, says the market impact could be massive.

“We need to diversify and look at other markets where we can sell our things,” says Hornby. “This is potentially, could the domestic market in Canada take some of that relax? We do not necessarily have capacity or demand here with Canadian consumers. We are not a big enough country. “

Hornby says they will not know the full influence before the tariffs kick in. But he adds that some American grain buyers are prevented or slowed down their Canadian purchase.

“It’s not like there’s a wait to see what’s happening. Things have already happened. “

It will not only be breeders who will fight, but also livestock producers. Tyler Fulton, Vice-President of the Canadian Cattle Association and a director with Manitoba cooking producers, says 35 percent of all Canadian beef exports are intended for the states.

“It really throws a wrench into whether the feeding area can buy our cattle and whether the processors can sell the beef in the normal currents,” says Fulton.

Experts say farmers will have to focus on products they have a viable market for, but it is extremely difficult to plan a route forward with so much uncertainty, causing fear of farmers.

Penner says he can plan for market variability and insure against bad weather, but it is unclear how he can protect himself from a threat so great.

“Some of these unique insurance products that end up in the long term that cost me a lot of money, I think they will probably be the route I will have to go,” he says.

“It’s just how I assure myself to make sure I am able to pay my loans and pay myself at the end of the day.”

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