Sask. farmers mixed on aid for canola sector

The financial aid coming to help the Canadian canola sector weather a trade dispute with China is getting mixed reviews on Saskatchewan farms.

The federal government is boosting the borrowing limit for farmers to $1 million under the Advanced Payments Program with the portion of loans that are interest-free also increasing from $100,000 to $500,000.

Jeff Hoiness is just days away from starting to seed on his Allan-area farm. He said canola will make up 60 per cent of his crop this year.

Having access to cheaper money will provide short-term relief until markets stabilize, but he call it a “band-aid on a bigger issue”

“At the end of the day, it doesn’t help us get our customer back,” Hoiness said.

“(Ottawa) needs to repair the damage that’s been done with our trading partners,” he said, blaming the trade spat on political decisions by Ottawa.

Aaron Siemens, who farms south of Lucky Lake, said he’s pleased something has been done to help the struggling sector.

“I wish there was something more we could do to solve this somehow,” he said. “I don’t know what the answer is, but its definitely hurting us price-wise.”

Hoiness estimated the price of canola has dropped close to 20 per cent since China started banning Canadian shipments over allegations of contamination.

He said he’s considered planting less canola this year.

“In today’s ag market, there aren’t many alternatives that might be better,” he said. “Some of our rotations are kind of set agronomically.”

Trade Diversification Minister Jim Carr will lead a canola trade mission to Japan and South Korea in early June to help farmers find new markets for their products.