Geopolitics
12 min read
Saskatchewan Farmers Hail Canola Deal as Positive Sign of Co-operation
CBC
January 18, 2026•4 days ago

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Saskatchewan farmers view a new canola trade deal with China as a positive development. The agreement, reached after a joint visit by the Prime Minister and Premier, is expected to lower tariffs on canola seed and remove "anti-discrimination" tariffs on canola meal and peas. This cooperation between provincial and federal governments offers optimism for market access and potentially signals a reduction in western alienation.
Some farmers in Saskatchewan say they hope a new deal on canola tariffs struck with China following a visit by both Prime Minister Mark Carney and Saskatchewan Premier Scott Moe this week will not only improve the market, but also signal a step away from western alienation .
Doug Logan, who farms in the Gull Lake area of southwestern Saskatchewan, had record output for canola last year, but the state of the market made it seem like a lot less.
That's why he says he was "extremely happy" by the announcement of a deal Friday, under which Beijing is expected to drop canola seed duties to 15 per cent by March.
Canadian canola meal and peas will no longer be subject to Chinese "anti-discrimination" tariffs from March to at least the end of the year, officials said Friday.
In return, Canada, which imposed 100 per cent tariffs on Chinese electric vehicles in 2024, will allow up to 49,000 Chinese EVs into the Canadian market each year, at a 6.1 per cent tariff.
There was no mention of canola oil on Friday.
"On my farm alone, it's going to be a huge impact," Logan said. "We've got a lot of canola acres going in this year."
Thirty-five per cent of Logan’s farm is canola and 40 per cent is durum wheat, which he says is a much less profitable crop in the current market.
"It's frustrating for us in Western Canada, I won't lie — we do feel neglected out here," said Logan.
"It's a nice change to see a Liberal government that — so far — is maybe throwing a little optimism out this way," he said. "I'm cautiously optimistic."
Moe, who joined Carney on his visit to China, described the deal Friday as a "positive day" for Canada's agricultural industry, giving credit to the prime minister and other ministers for "engaging here in China."
Monty Reich, the CEO of South West Terminal — which provides grain marketing and crop input services in southwestern Saskatchewan — says it's refreshing to see the provincial and federal governments work together on a favourable agricultural deal.
"We can see this as definitely a marked improvement from where we were," said Reich.
"Any time we can improve market access for western Canadian farmers, I think it's a huge positive. This is the right step forward, for sure."
Despite a solid canola crop in the southwest this year, Reich says the main strains on farmers were rising input costs and reduced marketability due to trade barriers.
"If you take China out of the marketplace, that's just one big destination that growers can't get their product to, which ultimately decreases demand for our product, which decreases value for our growers," he said.
'I'm more optimistic today'
Codie Nagy, the vice-chair on the board for Sask Oilseeds — an advocacy group for Saskatchewan canola and flax growers — said he's been a part of multiple meetings with Ottawa in the past few months, looking for an end to the trade issue.
Friday was that day.
"The phone was ringing off the hook early on. I think the first message that came in was shortly after 3 a.m.," said Nagy, who farms with his family near Ogema, south of Regina.
"I already had a couple meetings accomplished by the time the kids got out of bed. Everyone's a little bit more calm and happy, and we're out at the skating rink.
"So I guess everything's good in our world today."
He says most commodities he could grow are in a depressed market at the moment, so his seeding plans for 2026 hadn’t changed.
If the canola market picks up, Nagy will look at seeding more.
"I'm more optimistic today than I was a couple days ago. I think if we can get average to above-average yields, and with the prices they are today, we'll definitely make it through the year," he said.
But "it's all dependent on Mother Nature at this moment, like it always is."
Nagy hopes the federal government will continue to advocate for Western Canada.
"I know Scott Moe and Mark Carney, they disagree on a lot of things, but seeing them actually work together is positive."
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