SASKATOON — Terry Youzwa is already feeling the positive impact of Canada’s agreement with China that will eliminate the 100 per cent import tariff on peas effective March 1, 2026.
“I got a good bid from a broker today that is $0.50 a bushel better than it was,” said the chair of Pulse Canada.
“We still have a way to go. We were getting $12 to $14 a bu. a year ago for peas and now it’s more like eight bucks.”
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China agreed to eliminate tariffs on Canadian peas and canola meal and to greatly reduce tariffs on canola seed in exchange for concessions on imports of Chinese electric vehicles.
WHY IT MATTERS: Peas were facing tariffs in its top two markets.
Youzwa said that agreement has lifted the gloom and doom that has been hanging over the pea market since March 2025.
“Today we look ahead with some optimism,” he said.
“We look forward to those signals entering the marketplace and creating some optimism. It is definitely a good day.”
He expects further price increases once grain handlers figure out all the logistics. There should be enough time to move old crop peas in a meaningful way before the next crop comes off in August and September.
That’s a good thing because working capital has been depleted on many farms, and growers are having to sell crops to meet cash flow requirements and pay the bills.
Youzwa said there is still plenty of time for farmers to adjust their seeding plans to factor in the new realities of China reopening to peas and canola.
He added that the price boost canola and peas will be getting should also lift prices for other crops competing for acres in 2026.
“We look forward to those signals entering the marketplace and creating some optimism. It is definitely a good day.”
Terry Youzwa, chair
Pulse Canada
The Canadian Canola Growers Association sponsored a study by LeftField Commodity Research that determined Canada’s canola farmers have lost $2 to $4 billion from the closure of the Chinese market.
The CCGA intends to lobby Ottawa for compensation for that loss.
“In the case of pulses, we haven’t crossed that bridge yet,” said Youzwa.
He said growers prefer to get their returns from the marketplace, but the losses have been significant.
The five-year average of Canadian pea movement to China is 1.6 million tonnes per year valued at $743 million annually.
Pea growers not only lost the Chinese market but are facing 30 per cent tariffs in India as well.
Those two markets account for 75 to 80 per cent of Canada’s annual pea exports, so the impact on peas is more pronounced than it has been for canola.
Prices are down about 43 per cent, said Youzwa.
However, the pulse sector is still uncertain whether it wants to follow canola’s lead in lobbying Ottawa for financial aid.
“Time will tell where this goes,” said Youzwa.
“We haven’t reached that decision as an organization.”
In the meantime, he is looking forward to a “transparent, commercial and meaningful” trade relationship with China getting back on track.
“This is a positive for exporters, processors, railways, ports and growers,” he said.
