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Agriculture

Diesel won’t be easily replaced on the farm

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From the Frontier Centre for Public Policy

By Brian Zinchuk, contributor to the Frontier Centre for Public Policy.

I was out at the cabin, trying to trim the reeds and weeds along the water, when I came across a stark reminder of how good we have it because of fossil fuels.

I was using the electric whipper snipper when the reel head decided to disassemble itself. But I still had a lot of weeds that needed to be cut.

So I went into the shed and dug out the old scythe Uncle Larry, the previous owner, put in there some time in the preceding 40 years. That scythe likely dates back to the 1930s, making it somewhere around 90 years old. A blacksmith hand-made that scythe.

I took a palm sander to it and put a usable edge on it.

My late grandfather, Harry Zinchuk, showed me how to use a scythe some 30 years ago, when I was around 18. I think he used one when he was 18, around 1935, twisting right to left. My technique was awful, my tool old and probably too dull. But I was able cut down about 40 square feet of reeds in a few sweat soaked minutes.

And with each stroke, I kept wondering how entire teams of men would go into the fields, slicing down crops entirely by hand. It would take days for them to do 160 acres.

It made me think of farming today. A few years ago I was hired to video and photograph a year on the farm for Jason and Sherrill LeBlanc of Estevan. They had their then 14-year-old daughter driving a mammoth Case combine, and doing so well. I wonder how much more productive one girl driving a combine was compared to teams of men with scythes, then stookers (a person who bends over and picks up the loose wheat that had been cut down), then threshing crews.

That same farm now continuously crops over 100 quarters (16,000 acres) of land, harvesting with a crew of around 20 people. They usually accomplish all of that in just a few weeks.

My grandfather worked on those threshing crews, from sun up to sun down. Lard sandwiches were his fuel. Hay fed the horses. How much more efficient are diesel combines now?

For some real-world explanations of this, I strongly encourage reading some of the books by Vaclav Smil, the University of Manitoba distinguished professor emeritus whose prolific writings on energy are a true wake-up call. Last summer I got through How the World Really Works: The Science Behind How We Got Here and Where We’re Going. Other titles of his I hope to get through are Energy and Civilization: A History, Invention and Innovation: A Brief History of Hype and Failure and Power Density: A Key to Understanding Energy Sources and Uses. The general thrust is how mankind’s mastery of energy supplies have allowed us to live the lives we currently enjoy.

Some people seem to think we can easily replace diesel with electric when it comes to farm equipment. One of those people is Canada’s Minister of Natural Resources Jonathan Wilkinson. I was present when he was in Kipling, Saskatchewan, on June 29, to announced $50 million for a wind power project. A local reporter asked him about electric tractors.

Focusing on cost of operations for farmers with regards to the Clean Fuel Regulations, the reporter noted, “That’s going to make life harder for them because, you know, the bottom line is there is no such thing in Saskatchewan right now as an [electric] tractor. You know, it’s just not feasible. And so, as they’re making this transition, what sort of investment is the federal government prepared to get to that?”

Wilkinson replied, “I think the first thing that you said about it’s just not feasible, people would have said exactly the same thing about an electric vehicle 10 years ago, and they would have said the same thing about an electric pickup truck. And now those are available to buy them. There are companies that are working on large scale equipment, including equipment for farming, that will be electric on a go-forward basis. So those kinds of solutions are actually driven by regulations like this. But what I would say is, and I do say, that this will create jobs and economic opportunity, including in the agricultural sector, because you use canola, and soy, and often agricultural residuals to make the products that are going to be driven by this whole thing. So, there are benefits associated with it.”

Electric tractors, eh? Just how large batteries will they require? Will they be the size of an air seeder tank, and pulled behind like a coal tender from locomotives of old? Do you need two, with someone towing one out to the field after charging, to allow continual operations?

Because that’s what farmers do these days. Jason’s seeding crew has their turnarounds to fuel, service, and refill the seeder with seed and fertilizer down to 18 minutes. They run shifts around the clock, many miles from home. And they have two mammoth Case 620 Quadtrac tractors doing so, plus an older tractor pulling a land roller, as well as two sprayers. Where and when are they supposed to charge up? How long will that take their equipment out of operation?

Are they just supposed to find the nearest power pole and hook up some big booster cables?

Farming requires enormous amounts of energy – a lot more than a lard sandwich or EV charger. And diesel is the answer, and will be for a long time to come. Sorry, Mr. Minister. Electric tractors won’t be cutting it anytime soon.

Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].

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Agriculture

Liberal win puts Canada’s farmers and food supply at risk

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This article supplied by Troy Media.

By Sylvain Charlebois 

A fourth Liberal term means higher carbon taxes and trade risks. Could Canada’s farmers and food security be on the line?

The Liberal Party, now led by Mark Carney, has secured a fourth consecutive term, albeit once again with a minority mandate. This time, however, the Liberals have a stronger hand, as they can rely not only on the NDP but also the Bloc Québécois to maintain power.

This broader base of parliamentary support could provide much-needed political stability at a crucial time, particularly as Canada prepares for a new round of trade negotiations with the United States and Mexico.

For the agri-food sector, the implications are significant. From carbon taxes to trade rules, federal decisions play a decisive role in shaping the costs and risks Canadian farmers face.

First and foremost, carbon pricing will remain a central issue. Carney has made it clear that the industrial carbon tax will stay—a policy that continues to erode the competitiveness of Canada’s agri-food sector, where fuel, fertilizer and transportation costs are especially sensitive to carbon pricing. The tax, currently set at $95 per metric tonne, is scheduled to climb to $170 by 2030.

While consumers may not see this tax directly, businesses certainly do. More concerning is the Liberals’ intention to introduce a border carbon adjustment for imports from countries without equivalent carbon pricing regimes. While this could theoretically protect Canadian industry, it also risks making food even more expensive for Canadian consumers, particularly if the U.S., our largest trading partner, remains uninterested in adopting similar carbon measures. Acting alone risks undermining both our food security and our global competitiveness.

Another looming issue is supply management. Although all parties pledged during the campaign not to alter Canada’s system for dairy, poultry and eggs, this framework—built on quotas and high import tariffs—is increasingly outdated. It is almost certain to come under pressure during trade negotiations. The American dairy lobby, in particular, will continue to demand greater access to Canadian markets. The Liberals have a chance to chart a more forward-looking path. Modernizing supply management could lead to a more competitive, resilient industry while providing consumers with greater choice and better prices.

The previous Parliament’s passage of Bill C-282, which sought to shield supply managed sectors from all future trade negotiations, was a deeply flawed move.

Fortunately, the new parliamentary makeup should make it far less likely that such protectionist legislation will survive. A more pragmatic approach to trade policy appears possible.

On the domestic front, there are reasons for cautious optimism. The Liberals have promised to eliminate remaining federal barriers to interprovincial trade and to improve labour mobility, longstanding obstacles to the efficient movement of agri-food products across Canada. For example, differing provincial rules often prevent products like cheese, meat or wine from being sold freely across provinces, frustrating farmers and limiting consumer choice. Momentum was building before the election, and it must continue if we are serious about building a stronger domestic food economy.

Infrastructure investment is another bright spot. The Liberals pledged more than $5 billion through a Trade Diversification Corridor Fund to upgrade Canada’s severely undercapitalized export infrastructure. Strategic investment in trade gateways is overdue and critical for agri-food exporters looking to reduce reliance on the United States and expand into global markets.

Finally, the Liberal platform was alone in explicitly committing to support food processing in Canada, a crucial pillar of domestic food security. An increased focus on manufacturing will not only create jobs but also reduce reliance on imported food products, making Canada more resilient in the face of global disruptions.

Farmers have long felt sidelined by urban-centric Liberal governments. The past four years were marked by regulatory and trade clashes that deepened that divide. The hope now is that with greater political stability and a clearer focus on  competitiveness, the next four years will bring a more constructive relationship between Ottawa and Canada’s agri-food sector.

If the Liberals are serious about food security and economic growth, now is the time to reset the relationship with Canada’s farmers, not ignore them yet again.

Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.

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Agriculture

It’s time to end supply management

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From the Frontier Centre for Public Policy

By Ian Madsen

Ending Canada’s dairy supply management system would lower costs, boost exports, and create greater economic opportunities.

The Trump administration’s trade warfare is not all bad. Aside from spurring overdue interprovincial trade barrier elimination and the removal of obstacles to energy corridors, it has also spotlighted Canada’s dairy supply management system.

The existing marketing board structure is a major hindrance to Canada’s efforts to increase non-U.S. trade and improve its dismal productivity growth rate—crucial to reviving stagnant living standards. Ending it would lower consumer costs, make dairy farming more dynamic, innovative and export-oriented, and create opportunities for overseas trade deals.

Politicians sold supply management to Canadians to ensure affordable milk and dairy products for consumers without costing taxpayers anything—while avoiding unsightly dumping surplus milk or sudden price spikes. While the government has not paid dairy farmers directly, consumers have paid more at the supermarket than their U.S. neighbours for decades.

An October 2023 C.D. Howe Institute analysis showed that, over five years, the Canadian price for four litres of partly skimmed milk generally exceeded the U.S. price (converted to Canadian dollars) by more than a dollar, sometimes significantly more, and rarely less.

A 2014 study conducted by the University of Manitoba, published in 2015, found that lower-income households bore an extra burden of 2.3 per cent of their income above the estimated cost for free-market-determined dairy and poultry products (i.e., vs. non-supply management), amounting to $339 in 2014 dollars ($435 in current dollars). Higher-income households paid an additional 0.5 per cent of their income, or $554 annually in 2014 dollars ($712 today).

One of the pillars of the current system is production control, enforced by production quotas for every dairy farm. These quotas only gradually rise annually, despite abundant production capacity. As a result, millions of litres of milk are dumped in some years, according to a 2022 article by the Montreal Economic Institute.

Beyond production control, minimum price enforcement further entrenches inefficiency. Prices are set based on estimated production costs rather than market forces, keeping consumer costs high and limiting competition.

Import restrictions are the final pillar. They ensure foreign producers do not undercut domestic ones. Jaime Castaneda, executive vice-president of the U.S. National Milk Producers Federation, complained that the official 2.86 per cent non-tariffed Canadian import limit was not reached due to non-tariff barriers. Canadian tariffs of over 250 per cent apply to imports exceeding quotas from the European Union, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Canada-United States-Mexico Agreement (CUSMA, or USMCA).

Dairy import protection obstructs efforts to reach more trade deals. Defending this system forces Canada to extend protection to foreign partners’ favoured industries. Affected sectors include several where Canada is competitive, such as machinery and devices, chemicals and plastics, and pharmaceuticals and medical products. This impedes efforts to increase non-U.S. exports of goods and services. Diverse and growing overseas exports are essential to reducing vulnerability to hostile U.S. trade policy.

It may require paying dairy farmers several billion dollars to transition from supply management—though this cartel-determined “market” value is dubious, as the current inflation-adjusted book value is much lower—but the cost to consumers and the economy is greater. New Zealand successfully evolved from a similar import-protected dairy industry into a vast global exporter. Canada must transform to excel. The current system limits Canada’s freedom to find greener pastures.

Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy.

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