U.S. versus Canadian prices

The average price for Canadian cultivated farmland was $6,900 per acre in 2025 compared to $8,150 (all figures Cdn$) per acre in the U.S. However, comparing value is a complex calculation, FCC economist Justin Shepherd wrote in an April 15 report.

WHY IT MATTERS: Historically an advantage for Canadian crop producers, your land ownership costs per acre may not be the competitive edge they used to be.

For example, some U.S. farmland sits in zones with warmer climates and much longer cropping seasons, whereas some Canadian farmland stays snow-covered late into spring.

There are also variations in how Canadian farmland values are calculated.

To address this, Shepherd said, FCC calculated farmland value based on crop acres only and compared it to the equivalent U.S. value.

While U.S. cultivated farmland is more expensive, on average, than Canadian, the dollar per acre gap between the two countries has largely stayed similar since 2000.

Canadian land values have seen fairly consistent growth, averaging 8.7 per cent over the past decade, Shepherd said. U.S. growth rates have seen sharp spikes, such as between 2010 and 2015, followed by flat growth (2015 to 2020). The average growth rate for U.S. farmland was 5.6 per cent.

Since 2020, Canadian farmland values have risen faster than those in the U.S.

Canadian versus U.S. farmer revenue from land

Despite higher average land prices, U.S. farmers had a slight advantage over Canadians in ability to generate revenue from their land.

Using both countries’ agricultural balance sheets, Shepherd said FCC calculated the average farm is making mortgage payments on roughly 15 per cent of their farm’s real estate value.

Using the Saskatchewan Ministry of Agriculture’s formula for land investment cost, in 2025 newly-purchased Canadian farmland averaged a cost of $367 per acre. Owned land cost $143 per acre.

Using U.S. interest rates, newly-purchased U.S. farmland costs producers $381 per acre and owned land cost $127.

Last year, cultivated farmland payments accounted for 39 per cent of Canadian farmers’ grain and oilseed cash receipts.

“Meaning for every dollar earned, 39 cents went toward land payments,” Shepherd wrote.

The U.S. average was 33 cents per dollar of revenue.

“Although this calculation doesn’t include income from livestock or other sectors, it demonstrates that land costs as a percentage of grain revenues are comparable between Canadian and U.S. farmers,” Shepherd said.

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“(This) is a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors,” he said.

In a news release, the federal government said it intends to introduce amendments to the Excise Tax Act that would temporarily suspend the application of federal fuel excise taxes on gas, diesel and aviation fuel.

The excise taxes are currently set to 10 cents per litre on gas and four cents a litre on diesel fuel and aviation fuel. Once the suspension expires, the excises taxes will return to those amounts.

The federal government estimated that the tax suspension would provide more than $2.4 billion in total tax relief.

Truckers pleased

The Canadian Truck Operators Association welcomed the announcement. In a statement, the association said it had raised concerns in late March when diesel prices exceeded $2.39 per litre in parts of the greater Toronto area.

“For many small carriers and owner-operators, every cent matters. This measure will provide meaningful short-term relief and signals that government recognizes the challenges facing an essential industry,” said association spokesperson Tej Dulat.

The effectiveness of the measure will depend on how efficiently fuel costs reductions are reflected across the supply chain, the association said. It will be important that fuel costs reductions are clearly reflected at the pump.

Provinces may consider similar short-term measures, Dulat added.

-With files from Reuters

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“Producer perspectives from across the country help ensure the code reflects the diversity of Canadian beef production systems and remains practical for producers who raise cattle,” Canadian Cattle Association president Tyler Fulton said in a news release.

WHY IT MATTERS: The national code serves as a reference point for provincial animal enforcement officers and courts and sets a basic standard of care for beef cattle in Canada, the Canadian Cattle Association says.

The current code of practice was published in 2013. An update began in 2023 with a 15-person committee that includes representatives from the cattle, processor and transport sectors, veterinary and animal welfare experts, researchers, government representatives and others.

The process involves “respectful dialogue, evidence-based decision-making, and shared accountability,” the news release said.

The draft code of practices includes changes such as:

• Added requirements for monitoring cattle “more frequently” during heat waves and cold weather
• Added requirements for natural or man-made shelter from wind in cold weather
• Expanded guidlines around low-stress handling
• Added requirements around not branding cattle on the face or sensitive areas, and use of pain medication when branding cattle under six months old
• An added section on spaying of female cattle — a practice it says isn’t common in Canada
• Expanded requirements and information around euthanizing cattle, including acceptable methods

Public consultation is open until June 12.

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“We kept hearing anecdotally that these Californian honeybees were surviving with way fewer treatments. I wanted to test them rigorously and understand the driving force behind what the beekeepers were seeing,” said Genesis Chong-Echavez, a UCR graduate student and lead author of the study, in an article from the university.

WHY IT MATTERS: Varroa mites can devastate Canadian beekeepers’ hives, and go-to control methods have become less effective, leading producers to look for new methods to protect honeybees.

Varroa mites are an invasive parasite that has plagued North American beekeepers since the late 1980s. The mites weaken the bees by feeding on their fat stores, and also can carry viruses. Varroa mites are a consistent contender among the top four causes of winter bee loss in Canada, as noted by the Canadian Association of Professional Apiculturists.

Chong-Echavez’s team found bee colonies led by locally-raised Californian hybrid honeybee queens had about 68 per cent fewer mites, on average, than hives with commercial queens.

While these populations were not entirely varroa mite-free, they were more than five times less likely to hit the threshold at which chemical treatment is necessary.

Local bee larvae attract fewer mites

The resistant bees came from a genetically-mixed population established in southern California — often from “feral” colonies living in trees, the UC Riverside article said. They were found to have mixed ancestry steming from African, eastern European, Middle Eastern and western European genetics.

Varroa mites must enter bee brood cells to reproduce. In lab experiments with developing honeybee larvae, researchers found mites were less attracted to the locally-adapted bees than commercial bees.

“What surprised me most was the differences showed up even at the larval stage,” Chong-Echavez said. “This suggests the resistance mechanism may go deeper than some kind of behaviour and may be genetically built into the bees themselves.”

The research team next intends to investigate the signals that may make the locally-adapted larvae less attractive to mites.

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“After extensive producer engagement and input from provincial beef organizations, the Canadian Cattle Association (CCA) does not support proceeding with the Canadian Food Inspection Agency’s (CFIA) currently proposed amendments to Part XV of the Health of Animals Regulations (Identification and Traceability),” the organization said in a post to social media on Monday.

It added that it supports livestock traceability for disease preparedness, market access and confidence in the beef sector. The association said it and provincial groups will convene a task force “to work for producers on a risk-based, industry-led approach to disease preparedness and emergency management.”

The stance comes after outcry from beef producers across Canada earlier this year, who expressed concerns about “government overreach” and burdensome regulation.

The changes, which included reporting animal move-ins within seven days and more robust requirements around premise identification numbers and required reporting, were first intended to roll out this spring. The Canadian Food Inspection said in January that it would pause the publication of proposed amendments after hearing producer concerns.

The proposed regulations are aligned with the industry-led Cattle Implementation Plan, which was established by all sectors of industry at the National Cattle Traceability Summit in August 2011 and adopted in 2016.

On Jan. 9, CCA president Tyler Fulton posted a message to social media platform X, noting those concerns from membership.

“Be assured the Canadian Cattle Association has and will continue to advocate for a traceability system that works for ranchers and feeders and beef farmers,” he said.

He added, however, that being able to. move quickly to disease threats is key to the beef sector’s business.

“Given the Canadian cattle industry’s reliance on export markets, we need to be prepared and have the tools available to manage animal disease events quickly and efficiently,” he said in the same post.

—With files from Janelle Rudolph

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On March 22, the federal government announced it would develop such a strategy, calling it “an opportunity to discuss how we can address freshwater-related threats and opportunities,” protect freshwater ecosystems, and secure water for communities and the economy, according to a news release.

The Canada Water Agency, which was repurposed in 2024 as a stand-alone freshwater management agency separate from Environment and Climate Change Canada, will spearhead the strategy’s development.

While the announcement was scant on details of what such a strategy might look like, it said the agency will work with provinces and territories, First Nations, Inuit and Métis partners, “stakeholders across sectors” and the public.

Farmers should be among those consulted, the CFA said in a statement to Glacier FarmMedia.

“Water security is absolutely critical for the future of Canadian farmers. Farmers in different regions of Canada have been devastated by water issues over the past few years, such as the floods in B.C., or the ongoing long-term drought in the Prairie provinces,” a federation spokesperson said.

“A lack of water has severe negative impacts on any type of farm, no matter what they grow or raise.”

Prioritizing food security, agriculture

The strategy should protect farmers and mitigate the effects of water-related events. It should also secure predictable access to water so farmers can maintain food production — for example, through effective water management policies and investment in water infrastructure, CFA said.

“Farmers need to make it clear that food security and agriculture production should be prioritized if there was any issues with access to water.”

“Farmers are also on the front-line of climate change, dealing with the on-ground realities of water-related events,” CFA added. “They have experience and knowledge that will be critical in developing this strategy.”

While the announcement made no specific mention of the agriculture industry, the sector will have an opportunity to share its views during the public engagement process, “recognizing that freshwater is fundamental to our economy, powering industries, agriculture, and the growth of communities,” a federal spokesperson told Glacier FarmMedia.

The federal government has not yet set timelines for consultations, but said those will be announced “in the coming months.”

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The farm lender maintained its prediction that GDP growth would slow to around one per cent.

The effective blockade of the Strait of Hormuz, which has restricted the flow of oil and gas from the region, has pushed commodity prices to multi-year highs, FCC economist Krishen Rangasamy wrote in a March 18 report.

Pros and cons

The jump in prices could spell opportunity for Canada, Rangasamy said.

WHY IT MATTERS: Higher fuel and fertilizer prices for farmers today could be followed by higher borrowing costs in the future if core inflation persists.

“Given its high historical correlation with commodity prices, nominal GDP (which matters for government revenues) is likely to also perk up.”

If commodity prices stay high, the federal government and governments in resource-rich provinces such as Alberta or Newfoundland and Labrador could see higher revenues. That doesn’t mean governments will spend more, Rangasamy said, but there’s potential for a spending-related GDP boost.

However, fertilizer prices are among those surging due to the conflict which is weighing on the ag sector. Higher prices for fuel can also push up inflation and erode consumers’ buying power.

Trade war damages

Last year, Canada’s economy saw the worst performance since the 2020 pandemic recession — growing just 1.7 per cent, Rangasamy wrote. Export volumes fell on an annual basis for the first time in five years.

Government and consumption spending offset weaknesses in housing and business investment. However, based on a slumping household savings rate, consumers also dipped into savings to maintain lifestyles. This means Canadians have little cushion to absorb future shocks.

“With no end in sight to America’s trade war … look for trade and business investment to act as a drag on Canada’s economy again in 2026,” Rangasamy said.

Government and consumption spending may not provide as much of an offset this time. Rangasamy noted the government has telegraphed caution related to public spending. While ambitious public projects are in the works, that spending isn’t expected this year.

Interest rates and the loonie

If commodity prices stay high long enough, businesses may be forced to raise prices which could lead workers to demand higher wages.

“That could potentially trigger a wage-price spiral,” said Rangasamy.

The Bank of Canada could pre-emptively raise interest rates to prevent core inflation from taking off. However, he predicted the bank would stay in “pause mode” for several months.

FCC predicted the Canadian dollar would trade in the 72- to 74-U.S. cent range for most of the year, but acknowledged currency volatility could temporarily take it outside that range.

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“Which is not sustainable,” the organization said in a statement to Glacier FarmMedia. 

“Access to additional credit does not address the underlying issue.”

FCC announced it would extend its Trade Disruption Customer Support Program, originally established in early 2025 in response to tariffs. Agriculture and food borrowers will be able to receive a new or additional credit line of up to $500,000 to modify terms and to defer principal payments on existing loans.

FCC will now also provide support to help producers and agribusinesses “manage financial pressures caused by unexpected market shocks,” Friday’s statement said.

Middle east conflict spikes input prices

Fertilizer prices have soared since the Iran war began at the end of February and led to the closure of the Strait of Hormuz to most shipping, disrupting urea and sulphur supplies from the Gulf.

As a result, farmers around the world are struggling with fertilizer costs as the northern hemisphere spring planting season approaches.

“I would be faced with financial stress and I would have to maybe not buy as much fertilizer, or I would not plant what I was supposed to plant,” said FCC chief economist J.P. Gervais. “The liquidity in the credit is to actually, hopefully help businesses not having to deviate from what they believe is in their best interest long-term.”

Looking for immediate action

Grain Growers of Canada argues that the federal government should reduce farmers’ costs by dropping fertilizer tariffs.

Canada placed 35 per cent tariffs on Russian fertilizer levied in response to Russia’s war against Ukraine. That tariff stopped imports of Russian urea, which had previously made up more than 63 per cent of Canadian imports according to a 2025 report from Grain Farmers of Ontario.

“Canada should also explore targeted, temporary support tied to fertilizer affordability, activated during periods of extreme price volatility, to provide a short-term safety net for farmers while longer-term solutions are implemented,” Grain Growers of Canada said.

-With files from Reuters

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The project’s lead researcher is so excited she’s putting off retirement.

“I want the first experiment in a system like this. This is so exciting,” Karen Schwean-Lardner said in a University of Saskatchewan news release.

Earlier this month, the Canadian Foundation for Innovation announced $6.2 million in funding to build a state-of-the-art poultry laying facility at the University. The foundation is a federal government-created non-profit set up in 1997 to fund research infrastructure in Canada.

WHY IT MATTERS: The proposed facility will allow researchers to improve poultry barn lighting, housing and food systems for better animal welfare and egg production.

The Saskatchewan Egg Producers contributed $3 million while the university’s agriculture and bioresource department added $1 million.

“This will move us so far forward in poultry research,” said Schwean-Lardner in the release. Schwean-Lardner is a professor in the university’s department of animal and poultry science.

The nearly 24,000-square-foot facility is set to include three types of hen housing: enriched, free run and free-range. Ten individual housing rooms will have controls for lighting, temperature and other environmental factors.

“Each one is like a little mini-barn,” Schwean-Larder told media.

“Big data is getting more attention these days. We have a lot of data that can be gathered over time, and this unit is going to allow us to manage that data and collect it over a long period of time,” assistant professor Deborah Adewole said. “There are going to be a lot of new things that we can do for poultry research.”

The facility will also include viewing rooms so public groups — for example, schoolchildren — can see the chickens and housing systems while reducing biosecurity risks.

“We can control the environment. Right now, we cannot do that in the same way,” said Adewole. “This facility is one of its kind in Canada. There are other universities that have built new facilities, but this one is encompassing all systems and has space for public viewing systems as well — which is a first in Canada.”

Schwean-Larder said her first experiment would look at the effects of light on the hens and will involve researchers from the U.S.

“To be able to do that kind of research with an international perspective, I can’t stand it. I’m losing my voice because I’m excited.”

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“In response to a formal request from the Canadian Association of Vegetable Growers and Processors, the government has directed the Canadian International Trade Tribunal to conduct an inquiry,” federal finance minister François-Philippe Champagne said in a March 13 news release.

A statement via Ottawa government relations consulting firm Maple Leaf Strategies bills the association as “the voice of Canadian vegetable growers, harvesters, employees and processors from coast to coast to coast, working to protect and strengthen the sector from farm to consumer.”

The CITT will have 180 days to decide if imports of frozen and canned vegetables are harming or threatening to cause harm to domestic growers and processors. If so, it will propose remedies to the federal government.

It has also been asked to consider impacts to food affordability and security for Canadians, the news release said.

The CITT, in a separate release March 16, confirmed it has launched the inquiry as requested and will report back to Champagne by Sept. 9.

In its notice of inquiry, the CITT said anyone wanting to make submissions to the tribunal on this matter must file notice by April 2 of their intent to do so, and it will hold its hearing on the inquiry in Ottawa starting June 15.

In an order in council, the government said that it appears importation of increased quantities of vegetables is a result of obligations under the World Trade Organization Agreement and “unforeseen developments in global trade.”

These have led some WTO members to restrict imports of vegetables into their markets, which has led those goods to be diverted into Canada.

In 2024, 55 per cent of Canadian fruit and vegetable preserving and specialty food were imported, according to Farm Credit Canada’s 2025 food and beverage report. That category includes frozen and canned vegetables and fruit, pickling and drying.

The Canadian Association of Vegetable Growers and Processors, in its separate statement, described the government’s move as “an important first step,” saying the domestic frozen and canned vegetable sector “has been facing a sudden surge of low-priced imports that is disrupting the Canadian market. Temporary, rules-based safeguard measures will restore fair competition and allow Canadian growers and processors to compete on equal terms.”

Such measures, it said, “will help stabilize supply chains that retailers and consumers depend on.”

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