There are all manner of idioms about staying calm in turbulent times: “Keep your head,” “stick to your knitting,” “keep calm and carry on,” “stay the course,” and so on. They have a new weightiness these days, what with the frenetic news headlines about tariffs and trade wars. Farmers are understandably worried.
“My take, in terms of agriculture, is the U.S. tariff threats appear to be a negotiating position that is mostly aimed at Canada’s industrial policy,” says Bruce Burnett, director of markets and weather information with Glacier FarmMedia. “Tariffs will have a significant impact, particularly with livestock because it’s a very integrated sector.”
Which isn’t to say that the crop sector is immune; it’s not. Indeed, tariffs levied by China in mid-March have had a real impact on canola markets. But there may be more options here, more room to maneuver, and Burnett’s advice to farmers is to keep their heads and plan ahead as best they can.
U.S. TARIFFS: CANOLA AND OATS REVEAL A STORY
What Canada has going for it is that we have multiple customers for our grain commodities, and most of what we sell is shipped in an unprocessed state. “There are very few cases where the U.S. is our only market,” says Burnett. “So even if they impose tariffs, offshore markets would provide some cushion on products we ship raw.”
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