Alberta ranchers, farmers speak out against U.S. tariffs as uncertainty looms over agriculture sector

Cattle stand in a pasture on a farm in Alberta Thursday, Nov. 30, 2023. (THE CANADIAN PRESS/Jeff McIntosh) (Jeff McIntosh/The Canadian Press)

Alberta ranchers and farmers are raising serious concerns about the short- and long-term ramifications of widespread 25 per cent tariffs implemented by the United States on Canadian goods.

The new measures come as southern Alberta is already dealing with scarce water supplies, which have led to the downsizing of cattle herds due to a lack of grass for grazing.

“I think we’re at 40-year lows in cow numbers right now on both sides of the border,” said John Smith, a rancher and owner of Plateau Cattle Co. in Nanton.

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Smith notes that the extra cost of exporting goods over the border is yet another devastating blow to the farming and agriculture industry.

“The United States needs our cattle for their packing plants and their industry down there,” he said.

“We’re a pretty integrated supply chain, so I think it’s going to it’s going to add definitely onto the cost in the U.S. to the meat products, but, you know, maybe our price is going to slide a little bit here. There’s a lot of uncertainty.”

These challenges, however, are nothing new for members of the cattle industry who are now looking to adjust.

Monica Schlosser, the owner of Rocky P Ranch west of Nanton, says now more than ever it’s important to work with local partners within Canada, but interprovincial trade barriers don’t make that process any easier.

“We need to be able to get our interprovincial barriers taken down a little bit because it’s easier to go south with our products,” she said.

“Throughout all of the provinces, we need to work on making things easier to go across Canada instead of across the border.”

Other ranchers, like Rachel Herbert, who owns Trail’s End Beef, add that food security on both sides of the border could be an issue in the long term if tariffs remain in place.

“We’re deeply intertwined with the number of cattle that go back and forth for finishing and processing, but even more so this is emphasized in the importance of food security in Canada,” she said.

“We need to be really talking about the ability for us to feed ourselves and feed our neighbours. We need to be really emphasizing that agriculture is a huge component of what built southern Alberta, and that’s what’s going to carry us forward.”

Negative impacts expected for grain, horticulture

Alberta Grains, a non-profit group that represents the interests of Alberta’s wheat and barley producers, is speaking out against the tariffs.

The organization says Alberta exports its grain internationally to around 80 different countries, but about $1 billion worth of wheat exports are sent to the United States each year and about $100 million worth of barley exports.

About seven per cent of the province’s common wheat is sent stateside, along with 12 per cent of all durum wheat and 11 per cent of all barley.

“So that’s obviously disconcerting,” said Jasen Aussant, Alberta Grains’ senior policy analyst.

“And then there’s impacts to the domestic market and to farmers as well, via farm machinery costs, input costs, and that’s still unpredictable at this time, but we know that the market is very interconnected, and so there’ll definitely be impact on multiple levels that are still waiting to be played out.”

The Canadian Federation of Agriculture (CFA), which represents over 190,000 family farms across Canada, is also extremely disappointed to see the widespread 25 per cent tariffs implemented by the U.S.

CFA president Keith Currie says one of the biggest concerns lies in the horticulture sector, particularly the greenhouse sector, where 90 per cent of Canada’s exports go south.

“Because of the nature of the product itself, being very perishable, the opportunity to extend to other markets quickly and from a distance just doesn’t exist,” he said.

“There is a real issue of the price of those products going up considerably and potentially that market being lost or hurt very badly. So we’re concerned for those farmers and the horticulture sector as a whole, but there’s many other sectors too feeling this impact.”

Alberta Beef Producers assess challenges

Alberta Beef Producers (ABP), which represents 18,000 producers across the province, says its team is now “assessing the details of the tariffs” outlined Tuesday.

Brodie Haugan, ABP chair, says there’s still a lot of uncertainty in how the tariffs will impact all Canadians, including cattle producers.

“The North American cattle and beef industry plays a vital role in food security and supporting local economies. U.S. small and medium-sized processors, as well as regional food systems, rely heavily on Canadian cattle to sustain their operations,” he said.

ABD vice-chair Doug Roxburgh went on to say that the support of Alberta’s government for the cattle industry has been vital so far ahead of the tariffs being implemented, but more conversations are needed to weather this storm.

“We will continue to be in discussions with political representatives as well as colleagues in the cattle industry to fully understand the implications of these tariffs and to begin to do what we can to mitigate these challenges together,” said Roxburgh.