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Western Canada farmers squeezed by diquat shortage and US tariff threat

Western Canada farmers squeezed by diquat shortage and US tariff threat

Threats of new US tariffs are adding further strain on farmers in Western Canada, who are now facing input shortages that could drive up food prices, according to CBC News. Jake Eyre, a farmer near Minto, Manitoba, said his crops are only starting to catch up after record rain, flooding and hail, with his land at 208 per cent of annual precipitation. A key concern is diquat, a herbicide used to control weeds and dry crops, which is in short supply after disruptions at the Strait of Hormuz slowed shipments of the bromide used to make it. On top of that, some seeds that farmers sell to the United States are the target of potential new 50 per cent tariffs on August 19, a move Seeds Canada warns would be devastating for food production in both countries.

Threats of new United States tariffs are adding further strain on farmers in Western Canada, who are now facing shortages that could drive up food prices, according to a report by CBC News. The combination of trade uncertainty and input shortfalls is landing on producers already dealing with a difficult growing season.

Jake Eyre, a farmer near Minto, Manitoba, said his crops are only starting to catch up after record rain, flooding and hail, according to the report. We are at 208 per cent of annual precipitation, he said, describing an unusually wet year for his fields.

Eyre said he is also watching supply chain disruptions in the Middle East and trade negotiations in Washington, pointing to fertilizer prices, fuel and the ongoing trade scenario, according to CBC News. This is looking to be one of, if not the most expensive, crops produced in Canada, he said.

The latest concern is diquat, a herbicide that farmers use to control weeds and dry crops, according to the report. It is especially important in a wet year like this one, when producers need help drying down their crops for harvest.

Chinese manufacturers use bromide from Jordan and Israel to produce diquat, and much of that supply moves through the Strait of Hormuz, according to CBC News. Disruptions there have slowed shipments and created shortages that are now reaching Canadian farms, and producers say it would be impossible to get more this season even if it could be manufactured.

On top of the input squeeze, some of the seeds that farmers like Eyre sell to the United States are the target of potential new 50 per cent tariffs on August 19, according to the report. The prospect has added another layer of uncertainty for producers heading into harvest.

According to Seeds Canada, the country exported nearly 500 million dollars of agricultural seed to the United States last year and imported about 530 million dollars, with Canada's main seed exports being forage and grass, corn, canola, soy and rye, CBC News reported. The group warned that 50 per cent tariffs would be devastating and would threaten both countries' abilities to produce food, feed and fibre, with farmers across Western Canada expected to feel the pinch.

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