Canadian potato farmer Juston Schmidt was initially concerned when U.S. President Donald Trump announced 25 per cent tariffs on Canadian goods, including potatoes, set to come into effect on February 4, 2025. Schmidt worked to ship as many potatoes to the States as possible before the tariffs were implemented. However, Canada announced retaliatory tariffs on February 2, prompting President Trump to suspend the tariffs for 30 days and eventually exempt CUSMA-compliant goods from the levies. Schmidt’s exports to American customers are currently tariff-free, but he fears that pivoting to sell exclusively to Canadian buyers would be detrimental to his business.
While Schmidt is able to shift his sales to avoid the impact of tariffs, not all potato farmers have that option. The Manitoba Seed Potato Growers Association expressed concern about the significant challenges faced by their growers, as their product cannot be stored and must be sold. The association estimates that 15-20 per cent of this year’s yield may need to be composted or discarded due to the tariffs. Traditional programs like crop insurance do not protect against market-driven losses, leaving the financial burden on individual farms. The reduction in planted acres could have far-reaching impacts on seed potato farms in Manitoba.
The instability caused by the tariffs has caused stress among producers across the country. Canadian Federation of Agriculture (CFA) President Keith Currie highlighted the nervousness among vegetable greenhouse growers, whose market is predominantly south of the border. While most agricultural products are currently exempt from tariffs, Currie emphasized the potential long-term impacts on the industry’s sustainability. He called for more government support for the industry after the upcoming election on April 28, recognizing the challenges faced by farmers in dealing with the effects of tariffs on their operations.
Currie also raised concerns about the impact of tariffs on interest rates and inflation rates for farmers. He noted that added borrowing incentives may lead farmers to accumulate more debt to sustain their businesses, which is not a sustainable solution. The CFA is advocating for more supports for the industry in response to the challenges posed by tariffs. For Schmidt, the steel tariffs and counter-tariffs imposed by Canada are a greater concern, as they affect the cost of inputs such as farm machinery, tires, and other supplies. Manitoba’s 2025 provincial budget includes significant funds for producer-government cost-sharing and insurance programs, as well as a contingency fund to address any significant damage caused by tariffs.
Despite the challenges posed by tariffs and trade instability, Schmidt remains confident in his operations’ ability to adapt to the changing trade landscape. He acknowledges the inherent risks involved in farming and views tariffs as just one of many uncertainties faced by farmers. As the industry navigates the impact of tariffs and trade tensions, farmers like Schmidt are hopeful that they can find ways to mitigate the challenges and continue to sustain their businesses.
