'Can't be green if you're in the red': Tariff response takes priority over sustainable farming, producers say

Southern Manitoba farmer Alexander Boersch knows that using innovative sustainability measures to improve soil health, water infiltration and nutrient efficiency isn't cheap — and he worries the costs could deter farmers from taking new approaches as tariffs threaten their livelihoods.

Boersch, who runs Abtshof Farms near Elie, about 45 kilometres west of Winnipeg, is focused on regenerative agriculture, which aims to limit the use of pesticides or synthetic fertilizers. He uses methods like cover cropping — planting crops specifically intended to protect soil health.

But 25 per cent tariffs imposed by the U.S. on steel and aluminum imports — and the threat of more levies in the coming week — along with 100 per cent retaliatory tariffs from China on Canadian canola oil and meal are causing uncertainty in the agriculture industry, he said.

Lower profit margins may discourage sustainability practices like crop rotation or cover cropping, which can be costly and may not produce benefits for two to three years, said Boersch, who is also the co-founder of Re-Gen Ag Solutions, a company that helps farmers implement soil and crop health strategies.

"It's such an important industry for Canada in terms of bringing in a lot of economic benefits … and if we want to produce healthy food, you need good farming practices."

Seeding will begin soon, but so far, few crops are expected to turn a profit for most Prairie farmers.

Boersch is convinced sustainable agriculture "is the right thing to do," but said he'll have to be strategic with costs.

While there are some subsidies for sustainability available, for the most part, farmers foot the bill for those initiatives, he said. 

That means for farmers who "really like this idea, but aren't 100 per cent sure and they don't want to take too much risk … they're going to drop things like this, because they just see it as an extra cost," he said.

'Scary for farmers right now'

Abtshof Farms has more than 2,000 hectares (5,000 acres) and has been certified as a regenerative farm by the U.S. company Regenified. But the trade war between Canada and the U.S. is limiting new partnerships that would let them capitalize on that certification, with some companies reluctant to work with the farm amid the uncertainty, said Boersch.

"It's scary for farmers right now," Boersch said. 

"If we don't address these tariffs soon, there's going to be a lot of pain in the agricultural sector going into next year."

Colin Hornby, the general manager with the Manitoba industry association Keystone Agricultural Producers, said while reducing carbon emissions is important, international trade and tariffs are top priorities for farmers right now.

"You can't be green if you're in the red, so we really have a hard time talking about things other than the trade and other financial issues," Hornby said. 

With a new government set to be elected April 28, both Hornby and Boersch say finding a resolution with China — after Canada put 100 per cent tariffs on Chinese-made electric vehicles and a 25 per cent levy on Chinese aluminum and steel products last fall — is a key issue.

Hornby said the government also needs to ensure any new environmental policies won't stymie growth for agricultural producers, which might involve rethinking what "sustainability" means.

"We want to make sure that if somebody's able to grow more with less inputs, that that's considered sustainable, that we're not focusing solely on emissions," he said.

Boersch said the government needs to address the effect of China's tariffs on farmers as canola prices drop. He said farmers in Western Canada haven't felt heard on the issue, and will need support.

Operating costs have soared in the last decade due to inflation, which has been "horrendous in agriculture," he said, emphasizing the need to prioritize the industry's concerns and promote free trade to lessen the burden producers face, he said.

Without that, farmers may have to cut costs, reduce wages and take a step back from opportunities for growth, Boersch said. 

"Obviously we have to protect ourselves when we need to, but we're in a position now where we've been painted into a corner by policies against China when our biggest customer, the U.S., is in a battle with us," he said.