Discussions surrounding different agricultural policies and their impacts on Canadian industry have been a common theme in the last while. A few of those policies that could end up having a notable impact are three that are in the process of being introduced in the United States.
In an interview about these three policies and what impact they could have on the Canadian agricultural market, RealAgriculture’s Shaun Haney is joined by Graeme Crosbie and Justin Shepherd, both senior economists with Farm Credit Canada (FCC).
One of the first bills that the trio discuss is vCOOL, or voluntary country of origin labelling. The USDA has announced a final ruling on the bill that states that meat processors who display a “Product of USA” label on their beef and pork must only use animals that are born, raised, and processed in the U.S. As Crosbie mentions in the interview, livestock imported but fed or processed in the U.S. could use the label.
This bill is expected to not only impact Canadian beef and pork producers, but processors as well. While surveys may show that there is a demand, Crosbie points out that it is still to be seen on whether or not consumers will pay a higher price once they actually get to the grocery store.
The next bill discussed in the interview is the Inflation Reduction Act, part of which includes a tax credit change in the U.S. regarding biofuel production that will be implemented January 1, 2025. This change will switch the current blender tax credit to a producer credit, which makes only U.S. produced biodiesel or renewable diesel eligible for the credit.
When it comes to the U.S. Farm Bill, Shepherd says that it has a big impact on Canadian agriculture because it can impact insurance prices and can change how conservation programs are run in the country. Any changes that are made on U.S. acres ends up impacting Canadian pricing, he explains.
All three of these policies, while being mostly outside of Canada’s control, are expected to influence the entire spectrum of Canadian agriculture.
Listen/watch the full interview below.
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