Farmers are increasingly getting a better deal in Canada’s export-driven economy than they used to, thanks to the federal government’s farm policy.
The country’s largest commodity exporter, the United States, is facing its own agricultural challenges as its crop yields decline.
So when Canadian farmers complain about the low prices they get for corn and soybeans they’ve been buying at $20 a bushel in the United Kingdom, the Canadian government responds by giving them $3 a bushell, a deal that’s helped the industry recover from the worst downturn since the 1970s.
But the Canadian farmers say the government’s recent decision to lower its grain prices has forced them to sell more grains than they thought they could sell and is squeezing the industry.
That has also hurt the export market, which was worth $3.7 billion last year.
“Canada’s agricultural sector is in the midst of a very challenging time, which is really hurting our economy,” said Rob Schindler, president of the Canada-U.S. Farmers’ Association.
“If we don’t get some relief from this, we’re in for a very difficult time.
The government needs to do more to help us,” Mr. Schindlersaid.
The United States is the largest grain exporter to Canada.
In the United Nations Food and Agriculture Organization’s 2013 report on the world’s largest grain supply chains, Canada ranked ninth out of the top 30 countries.
The Canadian government has also recently announced it will reduce its grain imports from the United Arab Emirates and the United Middle East, and reduce imports from China.
Canada’s grains exports were worth $1.3 billion last month.
The new crop-import restrictions have also forced Canadian corn farmers to sell some of their fields at a loss.
“It’s really frustrating for us, but it’s a lot easier to say, ‘This is a business decision,'” said Scott Thompson, a spokesman for the Corn Belt Council of Manitoba, which represents corn farmers.
In fact, some Canadian corn growers say they are not able to sell their corn because the new import restrictions will not last long enough to offset the loss of revenue from lower corn prices.
That’s partly because Canadian corn is a commodity that is highly subsidized, meaning that producers must make more than a third of the cost of corn they sell, said Dave Moulds, a senior economist with the Canadian Wheat Board.
“We have to get our money back in the form of export income and we’ve got to make a decision that will be good for our farmers and the Canadian economy,” Mr, Thompson said.
Canadian corn producers have also seen a decline in the number of fields they can buy from the U.S., as the price of corn in the U-19 market has dropped from about $13 a bushe to $7.75 a busher, according to the USDA.
Canadian wheat growers have also been forced to sell less of their corn due to the restrictions.
In response to the recent restrictions, Canadian wheat producers are looking to export a little more corn, because they are hoping that the government will ease some of the restrictions on exports.
Mr. Thompson said he expects that the corn price will remain high for a while.
Canadian grain exports have increased about 40% since 2009, and are expected to grow at a healthy rate of 2% in the coming years.
The U.K. corn futures traded on the Toronto Stock Exchange fell to $9.00 per bushel this week, down from $13.00, and the U,S.
futures traded at $8.65 per bushe, down 50 cents from a week earlier.
That is down from the $10.00 that the futures traded in the past week.
The price of U.N. grain has also dropped, from $4.65 to $3, according a report from the World Trade Organization.
“That’s a big blow for Canadian farmers, because it means they’re going to be unable to sell as much grain,” said Ms. Thompson.
“I’m not a big fan of the price increase.
It’s probably not sustainable,” she said.
The WTO report found that U.A.E. grain imports are now worth about $5 billion less than the value of Canadian corn exports, and that U,N.
corn imports are worth about half the value as the value in the grains traded in Canada.
The World Trade Organisation, which negotiates trade deals, is currently considering whether to lift the restrictions, and its chief economist, Olivier De Schutter, told reporters that it’s possible the new measures will be lifted.
The move will have ripple effects for U.M. corn, which has been one of the U.’s biggest export crops.
The grain is exported to more than 60 countries, and has been growing steadily since it was first introduced in the early 1980s.
The USDA recently announced that U-M.
could now sell its corn at a