Alberta encourages more biofuels, but tariff threat looms large on the industry

Alberta’s government is bringing legislation to encourage more biofuels in the province. This comes as farmers face an incoming tariff storm.

Updates to the Agricultural Operation Practices Act, if passed, would help reduce waste, allow farmers to supplement fertilizer with organic materials and help the province attract job-creating investment.

Biodigesters are already operating in the province, and this change will provide certainty for those who store and use biogas production byproducts as a nutrient source to grow crops.

“Updates to this act will build our economy, advance sustainability and support our producers. With access to abundant organic material near livestock operations, Alberta will continue to be seen as an attractive place for investment for the biogas industry,” says RJ Sigurdson, Minister of Agriculture and Irrigation.

However, like most business conversations right now, the threat of tariffs looms large, as Trump has promised 25 per cent tariffs on everything from Canada from April 2. But it is unclear if he will follow through or switch up the plan like he has done before.

“The tariff threat is unknown and is a stressor to our industry at this time. A 25 per cent tariff on a $4,500 live animal going south of the line will have a huge impact,” says Chad Meunier, board member of the Alberta Cattle Feeders’ Association. He calls updates to the act a win. “Investing in biodigesters is a win-win for both cattle feeders and the environment. These systems allow us to capture methane, reduce our environmental footprint, and turn waste into renewable energy,” he added.

Producers say that tariffs will jam up a highly integrated system and force them to turn to other markets namely- Mexico, Japan and Korea.

Sigurdson says Chinese tariffs on things like Canola and peas are already hurting the farmers. “The federal government needs to step up for our producers right now and find a resolution to these issues. It is a federal issue, of course we advocate to the federal government on behalf of farmers and ranchers, and we have been having active conversations.”

NDP leader Nahed Nenshi says the premier should be working with Ottawa right now to build a plan to protect farmers and ranchers. “Let’s do cost-shared income support programs, let’s do cost-shared programs for farmers who are going to lose out, let’s help farmers diversify and plant crops that are not subject to international tariffs. Smith hasn’t done a single one of those because she doesn’t know how to negotiate, she only knows how to pick fights,” he said.

Alberta is currently working to introduce a buy local campaign and drop interprovincial trade barriers to help farmers. Sigurdson said the province’s budget also has a $4 billion contingency fund and aid programs will also be considered.

— With files from Sean Amato