Much of the world was shocked by the extent of the farmers’ protests in the Netherlands which are still ongoing. Is Canada next?
Prime Minister Justin Trudeau is pursuing the same climate policy that sparked mass protests in Europe. On Friday July 22nd 2022, the Trudeau government introduced a plan to reduce nitrogen emissions from fertilizer use, similar to the Dutch government’s directives to limit nitrogen pollution that sparked protests among thousands of farmers.
For more info on the Dutch side of things, check out my article where I explained the Dutch farmer protest and why it matters. Canada is following the same road.
Now I get that we have to do something about the climate crisis. But targeting agriculture right now is such a bonehead move given the potential of food shortages and problems. These type laws by the Dutch and Canadian government really increase the probability of a food crisis. At this point I struggle to answer if these people are really this stupid, or if they are doing this on purpose.
The Canadian government’s plan to reduce fertilizer-related emissions 30% from 2020 levels by 2030 was part of a meeting among federal, provincial and territorial ministers of agriculture to discuss the new Sustainable Canadian Agricultural Partnership, a five-year agricultural policy framework. Provinces such as Alberta, Saskatchewan, Manitoba and Ontario urged the Federal government to reconsider their “shortsighted” fertilizer emissions goals which would slash farmers income, worsen the current food crisis and continue to put upward pressure on food prices in Canadian grocery stores.
Just to be clear, the goal to achieve emission targets set by the Federal government does now require the absolute reduction in fertilizers. However, farmers say that reducing nitrous oxide emission can’t be done without reducing fertilizer use.
A joint press release from the governments of Saskatchewan and Alberta stated:
“Western Canadian farmers already produce the most sustainable agri-food products in the world, and they’re continually being asked to do more with less. We cannot feed the growing world population with a reduction in fertilizer,” the press release stated.
“The world is looking for Canada to increase production and be a solution to global food shortages. The Federal government needs to display that they understand this,” Alberta minister Nate Horner said.
Many other analysts agree that this is very concerning:
“The fact that Trudeau is pushing forward with these plans mere weeks after the economic collapse of Sri Lanka proves what many of us already suspected. These Green plans and this ESG craze are … all about rigid adherence to political dogma, regardless of the consequences or tradeoffs,” Pete Earle, an economist at the American Institute for Economic Research, told the Daily Caller News Foundation.
If you didn’t know, Sri Lanka banned organic fertilizers which cut crop yields in half. And as we found out, when people are hungry, they have more incentive to protest… and occupy Presidential Palaces.
The Federal government wants to reduce emissions because agriculture contributes to 10% of Canada’s greenhouse gas emissions, according to the agricultural ministry. Canadian cereal production also has one of the highest levels of emissions intensity, or amount of greenhouse gasses emitted relative to production quantity, among major exporters.
The government of Canada has offered incentives to farmers to reduce fertilizer use including organic alternatives and more efficient application methods. They also announced an additional $500 million for the Sustainable Canadian Agricultural Partnership program. But as we all know, transitions do not come with the snap of a finger. It takes time.
The reason why there is not the best rapport between farmers and the Federal government is because this reduction proposal comes months after the Canadian government imposed a 35% general tariff on all Russian imports. A major issue because Canadian farmers rely on nitrogen fertilizer from Russia to boost crop yields. Before tariffs were imposed, Eastern Canada annually imported 660,000 tonnes of nitrogen fertilizer, or about 85-90% of the total fertilizer applied.
Fertilizer prices is one of the major input costs for crops. A 35% tariff when combined with higher energy costs and gasoline bills really hit farmers with already low-margin cash crop operations. In a way, you can blame our own governments for the rising inflation in grocery stores. As Ryan Koeslag from the Ontario Bean Growers has said:
“Take a second look at it, determine if this is ultimately the outcome that they wanted to achieve with applying this tariff and then compare that with what we see as being an inflationary problem in the grocery store,” Koeslag told CBC News.
The timing of this tariff happened at the worst time. Weeks before the start of the Spring planting season, when farmers make decisions on what crops to grow and place order for seeds and fertilizers months in advance. You can understand why they are unhappy and feel like the Federal government is trying to crush them.
The solution? Farmers believe the government should invest to expand the domestic supply of fertilizers. Canada has all the natural gas resources to become self-sufficient in fertilizer if the government invests in domestic nitrogen production. But instead, the government is doing the opposite with this new reduction proposal. Agriculture and Agri-Food Minister Marie-Claude Bibeau said the government was investing in the fertilizer industry by funding research and innovation and helping farmers find new suppliers.
This is great but then again just as I said, not all growers can pivot on a dime. “It’s hard to be a green farmer when you’re operating in the red,” Koeslag said.
So what now? Well there isn’t much love lost between farmers and the Federal government, but the government will continue to work with farmers to find a solution.
“With the experience of fertilizer industry representatives, farmers and other pertinent groups, we can work together to identify concrete and innovative steps to help meet our targets,” said Canadian Minister of Agriculture and Agri-Food Marie-Claude Bibeau.
There is some hope because the Federal government recently said they would consider extending emissions reduction targets for the oil and gas industry. If we do not make progress, then I would not be surprised to see Dutch farmer like protests across Canada, which would just exacerbate the food problem heading into Fall.