Current Issues

1.  Domestic Biofuels Markets

1. Only allow fuels made from domestic or North American feedstocks to be eligible for new programs that support domestic biofuel production within these amendments. 
2. Reduce the risk of fuels made from potentially fraudulent foreign used cooking oil (UCO) from entering the Canadian clean fuels market by restricting the ability to generate credits until such time that it can be determined that foreign UCO is not adulterated with virgin oils, like palm oil. 
3. Provide a strong market signal that expands domestic biofuel production volumes, resulting in increased demand for local feedstock. 

These positions have been shared with Agriculture and Agri-Food Canada, Environment and Climate Change Canada, and Natural Resources Canada through multiple meetings and submissions over the past year. CCGA will continue to advocate to ensure that Canadian and North American feedstocks are not competitively disadvantaged by potentially fraudulent feedstocks.

A recent study conducted by CCGA shows Canada’s current domestic biofuel policy is estimated to bring nearly $600 million in value to farmgate prices in the 2025/2026 crop year. This equates to $27 per tonne or $0.62 per bushel. 

Another CCGA study shows that crusher basis levels are consistently at a premium over elevator bids. Meaning, crushers are drawing in more farmer deliveries due to higher demand, often resulting in better prices for farmers. 

3.  Transportation

Canola farmers are affected by the current state of labour relations at Canada’s federally regulated railways and ports. In 2023 and 2024, Canadian railways and ports experienced a series of unprecedented work stoppages due to a breakdown of the collective bargaining process within the Canada Labour Code (the Code), costing the grain sector hundreds of millions of dollars.

Approximately 94% of Canadian grain is transported by rail, and about 70% of Canada’s total annual grain production is exported. More than 80% of canola is exported as seed, oil or meal. 

Earlier this year, CCGA and industry partners commissioned an economic analysis examining the impacts of railway and port work stoppages on Canada’s grain sector. The study confirmed that labour disruptions cause significant economic damage to Canada’s grain industry. Some key findings of the report are:

• Due to the Canadian grain supply chain’s reliance on railway transportation, a one-week shutdown of the two major railways can cost the industry approximately $507 million.  

• Without rail service, elevators and processors reach capacity, limiting farmers' ability to sell canola and manage cash flow.

• Supply chain shutdowns create significant economic losses and damage Canada's reputation as a reliable global supplier.

In recent submissions, CCGA recommended several labour policy reforms that would strengthen Canada’s reputation as a reliable supplier of high-quality canola:

• Appoint a Special Mediator to oversee the entire collective bargaining process, manage timelines, and ensure progress is being made in good faith.
• Amend the Code to give the Minister clear authority to consider broader economic impacts and refer disputes to binding arbitration when negotiations reach an impasse. 

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