Connect with us
[bsa_pro_ad_space id=12]

Agriculture

Robbing Western Canada’s Farmers to Pay for Eastern Canada’s Car Batteries

Published

17 minute read

From the C2C Journal

By Gwyn Morgan

That the Liberal government would put productive, self-supporting western Canadian canola farmers at risk in order to protect heavily subsidized jobs in Ontario and Quebec is despicable but hardly out of character

If one were to rank contenders in the global trade wars, Canada would likely sit somewhere between pint-sized and pipsqueak. Then why would such a nation’s government choose frontal assault against the world’s biggest and most ruthless economic combatant, one wielding a range of weapons and tactics to organize a counter-attack? Yet this is just what the Justin Trudeau government has done in imposing massive import taxes on electric vehicles from China, writes Gwyn Morgan. And worse, Morgan notes, Trudeau & Co. are sacrificing farmers from western Canada on an altar dedicated to eastern auto workers – while taxing those farmers to help pay for the vast subsidies needed to keep the auto workers employed.

October 1 the federal Liberals’ new “surtax” of 100 percent on the import of Chinese electric vehicles (EVs) kicked in. Announced in late August and echoing a U.S. move three months earlier, the surtax comes on top of an existing 6.1 percent import tariff and doubles the landed price of those considerably less expensive EVs made across the Pacific Ocean. (New tariffs are also being imposed on imported Chinese aluminum and steel products.) China wasted no time in striking back where it would hurt most, launching an anti-dumping “investigation” into exported Canadian canola. Since there’s no evidence Canada’s agriculture sector is engaging in this anti-free-trade practice – which technically involves selling a product in a foreign market at a lower price than domestic buyers pay in the producing country – there’s a very high likelihood China’s investigation is a procedural pretext to halting imports of Canadian canola.

China’s move on the versatile oilseed was predictable given what happened following Canada’s arrest of Huawei’s Chief Financial Officer, Meng Wanzhou, in 2019. Along with arresting two innocent Canadian expatriates and triggering the infamous “two Michaels” imbroglio, the Communist regime  also blocked imports of canola from two major Canadian export handlers. Canola producers in Alberta, Saskatchewan and Manitoba lost an estimated $1.5-$2.4 billion in revenue as a result of that year-long boycott.

Striking back where it hurts most: Following the Justin Trudeau government’s (top left) new “surtax” of 100 percent on the import of Chinese electric vehicles (EVs), China wasted no time in launching an anti-dumping “investigation” into exported Canadian canola, Canada’s second-most important farm crop. Shown at bottom right, Chinese President Xi Jinping. (Sources of photos (clockwise starting top-left): ©Kyodonews via ZUMA Press; Ethan Llamas, licensed under CC BY-SA 4.0Paul Kagame, licensed under CC BY-NC-ND 2.0Paul Howard Photo, licensed under CC BY-NC-SA 2.0)

Canola seeds are Canada’s second-most widely grown agricultural commodity, generating a critical 25 percent of the nation’s farm crop receipts, totalling $13.6 billion last year (agricultural prices fluctuate significantly). China has long been Canada’s biggest foreign canola buyer – importing 4.5 million tonnes worth nearly $4 billion last year – and was expected to purchase 70 percent of this year’s bumper crop.

The Justin Trudeau government’s initial press release described Chinese EVs as an “extraordinary threat” to Canada’s auto workers. (There aren’t any Chinese EV brands for sale in Canada yet.) But the reality is that Canada produces almost no EVs and there are few projects on the table to do so. The genuine long-term threat to Canada’s auto workers is the Trudeau government’s “mandate” that the auto industry phase out the manufacture of internal combustion engine-powered cars and light trucks by 2035.

Much of the global auto industry has been sliding into a state approaching panic over such national mandates, which are now regarded even by some of the industry’s most established and storied brands as an existential threat. Some countries are showing signs of abandoning the 2035 changeover or at least extending the timeline. Italian Prime Minister Georgia Meloni, for example, recently termed the European Union’s phase-out policy “self-destructive”, while her energy minister has urged the EU to lift the impending ban on gasoline/diesel-powered engines.

“Self-destructive”: While the Trudeau government continues to push for the phaseout of gasoline and diesel-powered vehicles by 2035 in order to force Canadians entirely into EVs, some European leaders are beginning to question similar mandates, including Italian Prime Minister Georgia Meloni (bottom left). (Sources of photos: (top right) DealerOn; (bottom left) AP Photo/Czarek Sokolowski; (bottom right) FaceMePLS, licensed under CC BY 2.0)

But not Canada, at least not under the current government. What is on the table are subsidies – some $52.5 billion as of April, according to the Parliamentary Budget Officer – to Honda, Swedish battery maker Northvolt, Ford, Stellantis, Volkswagen and General Motors to build EV battery plants in Ontario and Quebec. The total government support exceeds what the private-sector manufacturers are themselves investing. The labour forces at these facilities will thereby represent some of the costliest jobs ever “created” in Canada, and it is entirely guesswork whether any of these plants will ever recover their prodigious expense.

There are valid reasons for great concern about the importation of Chinese-made EVs. One is the recently voiced allegation that the regime is having EV manufacturers embed technology in the cars’ computers so that China’s military could one day remotely turn them off en masse, causing chaos in the targeted countries. But Canada’s options as a trade warrior are severely limited. A crude response like the one Trudeau has attempted – levying a “surtax” steeper than anything that was ever imposed by former U.S. President Donald Trump, the man Trudeau probably despises more than anyone else in the world – is definitely not one of them. Canada’s canola exports – our country’s number-one item sold to China – offered China an easy target for a punishing tit-for-tat response.

That’s because the American situation is substantially different from Canada’s. While the U.S. does manufacture EVs, the U.S.-China trading relationship is more complex and involves multiple large industries. This means there is no obvious single target for China to strike. And this makes Trudeau’s mimicking of the American tariff profoundly irresponsible. China holds the top cards at this trade table. Late last month, for example, China initiated further steps towards retaliation when its Commerce Ministry announced a three-month-long “anti-discrimination” investigation into Canada’s new tariffs.

Not-so-mighty trade warrior: With canola being Canada’s primary export to China, Trudeau’s crude “surtax” on Chinese EVs, steel and aluminum opened the country to a foreseeable – and foreseeably punishing – tit-for-tat response. (Source of graph: Janice Nelson)

That the Liberal government would put productive, self-supporting western Canadian canola farmers at risk in order to protect heavily subsidized jobs in Ontario and Quebec is despicable but hardly out of character. The Trudeau Liberals have a long record of making decisions or imposing policies that harm the West – and western farmers in particular.

Data from the Agricultural Carbon Alliance show that during just one month in 2023, livestock farmers paid an average of $726 per month each in carbon taxes, field crop farmers $2,024 and greenhouse operators $17,173. A sampling of 50 farms showed total carbon tax payments of $329,644 in just that one month. With the tax rate rising inexorably every year, within a few years those same 50 farms will be paying nearly $900,000 per month – $11 million in 2030 alone. There are 190,000 farms in Canada. The carbon tax has become yet another inter-regional financial transfer that skims wealth generated in the West to be spent on subsidy-dependent industries in Laurentian Canada.

A sampling of just 50 of Canada’s 190,000 farms showed total carbon tax payments of $329,644 in one month, an amount projected to triple by 2030 – while battery manufacturers based in eastern Canada are to receive $52.5 billion in subsidies. Shown at bottom, Ontario Premier Doug Ford and Prime Minister Justin Trudeau observe an assembly line at an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ontario, April 2024. (Sources: (graph) Agriculture Carbon Alliance; (photo) The Canadian Press/Nathan Denette)

The harmful new 100 percent EV tariff comes at a time when the entire Canadian farming sector’s future is in doubt. A study sponsored by the Royal Bank of Canada predicts that by 2033, 40 per cent of Canadian farm operators will retire. A shortfall of 24,000 general farm, nursery and greenhouse workers is expected over that period. “These gaps loom at a time when Canada’s agricultural workforce needs to evolve to include skills like data analytics,” the study states. “To meet our medium and long-term goals, we’ll need to build a new pipeline of domestic operators and workers.” Every new policy move that adds to the agriculture sector’s woes makes such a metaphorical pipeline as unlikely as the physical pipelines that the Trudeau government’s other policies have killed, from Energy East to Northern Gateway. Ruinous policies such as the carbon tax need to go, and new policies that place agriculture at risk must be avoided.

The most perverse aspect of this lengthening saga is that the future of those battery plants that the Liberals intend to subsidize with $52.5 billion and counting, raised through carbon taxes and additional debt we cannot afford to incur, is itself in serious jeopardy. That is because the grandiose global plan to transition the world to EVs is looking increasingly like a house of cards, as we have long warned (please see herehere or here). As this has seeped into public consciousness, the once-exponential growth in EV sales has flattened.

As Forbes magazine recently reported, “Fully-electric passenger car demand is softening, fast. Unsold inventories have been clogging dealers’ lots. Manufacturers – from the biggest brands down to the smallest startups – are cutting back on production and investment plans.” Some prospective EV builders – like Apple – are dropping out entirely. Even before the U.S. and Canadian tariffs on Chinese EVs, reports and images came out of China showing fields packed with unsold (and possibly abandoned) EVs, a problem that lately is being “exported” as tens of thousands of Chinese EVs clog ports and shipping hubs in destination markets.

How does the future of Canadian EV manufacturing relate to the future of farming? The answer is that the first cannot exist at all without gigantic taxpayer-funded subsidies, while Canada’s farming sector – despite being an innately risky undertaking at the mercy of fickle Mother Nature and unpredictable market swings – is generally self-supporting and on balance profitable, at times highly so. What it needs above all is to be relieved of debilitating policies – first and foremost the carbon tax. We should not be robbing Canadian farmers to pay subsidies to battery-makers.

Global house of cards: With consumers awakening to the profound shortcomings of EVs, tens of thousands of unsold battery-powered cars have been clogging Chinese ports and shipping hubs (top right) – a problem now being “exported” to destination markets including Canada’s auto dealerships (bottom right). (Source of bottom right photo: Golden Shrimp/Shutterstock)

Instead, we need to encourage young people to enter the farming industry and provide them with the skills needed to “build that new pipeline” of agricultural workers. A country that can’t fuel and feed itself is a vulnerable country even in good times, and a starving, freezing one in bad. We Canadians are fortunate to have the natural resources needed to both fuel and feed ourselves plus create wealth by exporting the products that we derive from those resources. Canada’s oil, natural gas, coal, forests, fisheries and soils represent natural advantages that Canadians long ago became adept at leveraging into livelihoods and prosperity.

We have every reason to be outraged at a government that spends tens of billions of dollars subsidizing an entirely artificial industry in which our country has no innate economic advantage, while imposing heavy taxes on an industry that is absolutely vital to thousands of rural communities and to the food security of us all.

Gwyn Morgan is a retired business leader who has been a director of five global corporations.

Source of main image: bill barber, licensed under CC BY-NC 2.0.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Agriculture

The Climate Argument Against Livestock Doesn’t Add Up

Published on

From the Frontier Centre for Public Policy

By Joseph Fournier

Livestock contribute far less to emissions than activists claim, and eliminating them would weaken nutrition, resilience and food security

The war on livestock pushed by Net Zero ideologues is not environmental science; it’s a dangerous, misguided campaign that threatens global food security.

The priests of Net Zero 2050 have declared war on the cow, the pig and the chicken. From glass towers in London, Brussels and Ottawa, they argue that cutting animal protein, shrinking herds and pushing people toward lentils and lab-grown alternatives will save the climate from a steer’s burp.

This is not science. It is an urban belief that billions of people can be pushed toward a diet promoted by some policymakers who have never worked a field or heard a rooster at dawn. Eliminating or sharply reducing livestock would destabilize food systems and increase global hunger. In Canada, livestock account for about three per cent of total greenhouse gas emissions, according to Environment and Climate Change Canada.

Activists speak as if livestock suddenly appeared in the last century, belching fossil carbon into the air. In reality, the relationship between humans and the animals we raise is older than agriculture. It is part of how our species developed.

Two million years ago, early humans ate meat and marrow, mastered fire and developed larger brains. The expensive-tissue hypothesis, a theory that explains how early humans traded gut size for brain growth, is not ideology; it is basic anthropology. Animal fat and protein helped build the human brain and the societies that followed.

Domestication deepened that relationship. When humans raised cattle, sheep, pigs and chickens, we created a long partnership that shaped both species. Wolves became dogs. Aurochs, the wild ancestors of modern cattle, became domesticated animals. Junglefowl became chickens that could lay eggs reliably. These animals lived with us because it increased their chances of survival.

In return, they received protection, veterinary care and steady food during drought and winter. More than 70,000 Canadian farms raise cattle, hogs, poultry or sheep, supporting hundreds of thousands of jobs across the supply chain.

Livestock also protected people from climate extremes. When crops failed, grasslands still produced forage, and herds converted that into food. During the Little Ice Age, millions in Europe starved because grain crops collapsed. Pastoral communities, which lived from herding livestock rather than crops, survived because their herds could still graze. Removing livestock would offer little climate benefit, yet it would eliminate one of humanity’s most reliable protections against environmental shocks.

Today, a Maasai child in Kenya or northern Tanzania drinking milk from a cow grazing on dry land has a steadier food source than a vegan in a Berlin apartment relying on global shipping. Modern genetics and nutrition have pushed this relationship further. For the first time, the poorest billion people have access to complete protein and key nutrients such as iron, zinc, B12 and retinol, a form of vitamin A, that plants cannot supply without industrial processing or fortification. Canada also imports significant volumes of soy-based and other plant-protein products, making many urban vegan diets more dependent on long-distance supply chains than people assume. The war on livestock is not a war on carbon; it is a war on the most successful anti-poverty tool ever created.

And what about the animals? Remove humans tomorrow and most commercial chickens would die of exposure, merino sheep would overheat under their own wool and dairy cattle would suffer from untreated mastitis (a bacterial infection of the udder). These species are fully domesticated. Without us, they would disappear.

Net Zero 2050 is a climate target adopted by federal and provincial governments, but debates continue over whether it requires reducing livestock herds or simply improving farm practices. Net Zero advocates look at a pasture and see methane. Farmers see land producing food from nothing more than sunlight, rain and grass.

So the question is not technical. It is about how we see ourselves. Does the Net Zero vision treat humans as part of the natural world, or as a threat that must be contained by forcing diets and erasing long-standing food systems? Eliminating livestock sends the message that human presence itself is an environmental problem, not a participant in a functioning ecosystem.

The cow is not the enemy of the planet. Pasture is not a problem to fix. It is a solution our ancestors discovered long before anyone used the word “sustainable.” We abandon it at our peril and at theirs.

Dr. Joseph Fournier is a senior fellow at the Frontier Centre for Public Policy. An accomplished scientist and former energy executive, he holds graduate training in chemical physics and has written more than 100 articles on energy, environment and climate science.

Continue Reading

Agriculture

End Supply Management—For the Sake of Canadian Consumers

Published on

This is a special preview article from the:

By Gwyn Morgan

U.S. President Donald Trump’s trade policy is often chaotic and punitive. But on one point, he is right: Canada’s agricultural supply management system has to go. Not because it is unfair to the United States, though it clearly is, but because it punishes Canadians. Supply management is a government-enforced price-fixing scheme that limits consumer choice, inflates grocery bills, wastes food, and shields a small, politically powerful group of producers from competition—at the direct expense of millions of households.

And yet Ottawa continues to support this socialist shakedown. Last week, Prime Minister Mark Carney told reporters supply management was “not on the table” in negotiations for a renewed United States-Mexico-Canada Trade Agreement, despite U.S. negotiators citing it as a roadblock to a new deal.

Supply management relies on a web of production quotas, fixed farmgate prices, strict import limits, and punitive tariffs that can approach 300 percent. Bureaucrats decide how much milk, chicken, eggs, and poultry Canadians farmers produce and which farmers can produce how much. When officials misjudge demand—as they recently did with chicken and eggs—farmers are legally barred from responding. The result is predictable: shortages, soaring prices, and frustrated consumers staring at emptier shelves and higher bills.

This is not a theoretical problem. Canada’s most recent chicken production cycle, ending in May 2025, produced one of the worst supply shortfalls in decades. Demand rose unexpectedly, but quotas froze supply in place. Canadian farmers could not increase production. Instead, consumers paid more for scarce domestic poultry while last-minute imports filled the gap at premium prices. Eggs followed a similar pattern, with shortages triggering a convoluted “allocation” system that opened the door to massive foreign imports rather than empowering Canadian farmers to respond.

Over a century of global experience has shown that central economic planning fails. Governments are simply not good at “matching” supply with demand. There is no reason to believe Ottawa’s attempts to manage a handful of food categories should fare any better. And yet supply management persists, even as its costs mount.

Those costs fall squarely on consumers. According to a Fraser Institute estimate, supply management adds roughly $375 a year to the average Canadian household’s grocery bill. Because lower-income families spend a much higher proportion of their income on food, the burden falls most heavily on them.
The system also strangles consumer choice. European countries produce thousands of varieties of high-quality cheeses at prices far below what Canadians pay for largely industrial domestic products. But our import quotas are tiny, and anything above them is hit with tariffs exceeding 245 percent. As a result, imported cheeses can cost $60 per kilogram or more in Canadian grocery stores. In Switzerland, one of the world’s most eye-poppingly expensive countries, where a thimble-sized coffee will set you back $9, premium cheeses are barely half the price you’ll find at Loblaw or Safeway.

Canada’s supply-managed farmers defend their monopoly by insisting it provides a “fair return” for famers, guarantees Canadians have access to “homegrown food” and assures the “right amount of food is produced to meet Canadian needs.” Is there a shred of evidence Canadians are being denied the “right amount” of bread, tuna, asparagus or applesauce? Of course not; the market readily supplies all these and many thousands of other non-supply-managed foods.

Like all price-fixing systems, Canada’s supply management provides only the illusion of stability and security. We’ve seen above what happens when production falls short. But perversely, if a farmer manages to get more milk out of his cows than his quota, there’s no reward: the excess must be
dumped. Last year alone, enough milk was discarded to feed 4.2 million people.

Over time, supply management has become less about farming and more about quota ownership. Artificial scarcity has turned quotas into highly valuable assets, locking out young farmers and rewarding incumbents.

Why does such a dysfunctional system persist? The answer is politics. Supply management is of outsized importance in Quebec, where producers hold a disproportionate share of quotas and are numerous enough to swing election results in key ridings. Federal parties of all stripes have learned the cost of crossing this lobby. That political cowardice now collides with reality. The USMCA is heading toward mandatory renegotiation, and supply management is squarely in Washington’s sights. Canada depends on tariff-free access to the U.S. market for hundreds of billions of dollars in exports. Trading away a deeply-flawed system to secure that access would make economic sense.

Instead, Ottawa has doubled down. Not just with Carney’s remarks last week but with Bill C-202, which makes it illegal for Canadian ministers to reduce tariffs or expand quotas on supply-managed goods in future trade talks. Formally signalling that Canada’s negotiating position is hostage to a tiny domestic lobby group is reckless, and weakens Canada’s hand before talks even begin.

Food prices continue to rise faster than inflation. Forecasts suggest the average family will spend $1,000 more on groceries next year alone. Supply management is not the only cause, but it remains a major one. Ending it would lower prices, expand choice, reduce waste, and reward entrepreneurial farmers willing to compete.

If Donald Trump can succeed in forcing supply management onto the negotiating table, he will be doing Canadian consumers—and Canadian agriculture—a favour our own political class has long refused to deliver.

The original, full-length version of this article was recently published in C2C Journal. Gwyn Morgan is a retired business leader who was a director of five global corporations.

Continue Reading

Trending

X