Agriculture
EU Farmers Rise Against the Climate Cult
From the Brownstone Institute
BY
The EU Commission is playing a dangerous game. On the one hand, they are attempting to placate farmers by making expedient short-term concessions to them. On the other hand, they are holding fast to their commitment to cut greenhouse gas emissions in Europe by 90% by 2040
Many major arteries connecting Europe have been obstructed or brought to a standstill in recent days by a wave of protests by farmers against what they claim are overly burdensome environmental targets and unsustainable levels of bureaucracy associated with EU and national farming regulations.
The warning shots of this showdown between policymakers and farmers had already been fired on 1st October 2019, when more than 2,000 Dutch tractors caused traffic mayhem in the Netherlands in response to an announcement that livestock farms would have to be bought out and shut down to reduce nitrogen emissions. Early last year, Polish farmers blocked the border with the Ukraine demanding the re-imposition of tariffs on Ukrainian grain.
But it was not until early this year that an EU-wide protest was ignited. German and French protests and tractor blockades made international news, and the blockades were soon replicated in Spain, Portugal, Belgium, Greece, Netherlands, and Ireland. Major highways and ports were blocked and manure was poured over government buildings, as farmers across Europe expressed their frustration at rising farming costs, falling prices for their produce, and crippling environmental regulations that made their products uncompetitive in the global market.
It seems the farmers have European elites rattled, which is hardly surprising, given that EU elections are just around the corner. While the European Commission announced Tuesday it was still committed to achieving a 90% reduction of greenhouse gas emissions in Europe by 2040, it conspicuously omitted any mention of how the farming sector would contribute to that ambitious target. Even more tellingly, the Commission has backed down or fudged on key climate commitments, at least temporarily.
According to politico, EU Commission President Ursula von der Leyen announced on Tuesday that “she was withdrawing an EU effort to rein in pesticide use.” The climbdown on this and other Commission proposals relating to farming was rather embarrassing for the Commission but politically inevitable, given that the protests were spreading rapidly and farmers were showing no signs of going home until their demands were met. As reported by politico,
A note on the possibility of agriculture cutting down on methane and nitrous oxides by 30 percent, which was in earlier drafts of the Commission’s 2040 proposal, was gone by the time it came out on Tuesday. Similarly excised were missives on behavioral change — possibly including eating less meat or dairy — and cutting subsidies for fossil fuels, many of which go to farmers to assist with their diesel costs. Inserted was softer language about the necessity of farming to Europe’s food security and the positive contributions it can make.
The EU Commission is playing a dangerous game. On the one hand, they are attempting to placate farmers by making expedient short-term concessions to them. On the other hand, they are holding fast to their commitment to cut greenhouse gas emissions in Europe by 90% by 2040, while fudging on the fact that a 90% emission cut in 16 years would have drastic implications for farming.
It is clearly politically expedient, especially in an election year, to put out this fire of farming discontent as soon as possible, and buy some peace ahead of June’s European elections. But there is no avoiding the fact that the Commission’s long-term environmental goals, as currently conceived, almost certainly require sacrifices that farmers are simply not willing to accept.
Independently from the merits of EU climate policy, two things are clear: first, EU leaders and environmental activists appear to have vastly underestimated the backlash their policies would spark in the farming community; and second, the apparent success of this dramatic EU-wide protest sets a spectacular precedent that will not go unnoticed among farmers and transport companies, whose operating costs are heavily impacted by environmental regulations like carbon taxes.
The Commission’s embarrassing concessions are proof that high-visibility, disruptive tactics can be effective. As such, we can expect more of this after June’s EU elections if the Commission doubles down again on its climate policy goals.
Republished from the author’s Substack
Agriculture
Ottawa may soon pass ‘supply management’ law to effectively maintain inflated dairy prices
From the Fraser Institute
Many Canadians today face an unsettling reality. While Canada has long been known as a land of plenty, rising living costs and food insecurity are becoming increasingly common concerns. And a piece of federal legislation—which may soon become law—threatens to make the situation even worse.
According to Statistics Canada, rising prices are now “greatly affecting” nearly half of Canadians who are subsequently struggling to cover basic living costs. Even more alarming, 53 per cent are worried about feeding their families. For policymakers, few national priorities are more pressing than the ability of Canadians to feed themselves.
Between 2020 and 2023, food prices surged by 24 per cent, outpacing the overall inflation rate of 15 per cent. Over the past year, more than one million people visited Ontario food banks—a 25 per cent increase from the previous year.
Amid this crisis, a recent academic report highlighted an unforgivable waste. Since 2012, Canada’s dairy system has discarded 6.8 billion litres of milk—worth about $15 billion. This is not just mismanagement, it’s a policy failure. And inexcusably, the federal government knows how to address rising prices on key food staples but instead turns a blind eye.
Canada’s dairy sector operates under a “supply management” system that controls production through quotas and restricts imports via tariffs. Marketing boards work within this system to manage distribution and set the prices farmers receive. Together, these mechanisms effectively limit competition from both domestic and foreign producers.
This rigid regulated system suppresses competition and efficiency—both are essential for lower prices. Hardest hit are low-income Canadians as they spend a greater share of their income on essentials such as groceries. One estimate ranks Canada as having the sixth-highest milk prices worldwide.
The price gap between the United States and Canada for one litre of milk is around C$1.57. A simple calculation shows that if we could reduce the price gap by half, to $0.79, Canadians would save nearly $1.9 billion annually. And eliminating the price gap would save a family of four $360 a year. There would be further savings if the government also liberalized markets for other dairy products such as cheese, butter and yogurt. These lower costs would make a real difference for millions of Canadians.
Which brings us back to the legislation pending on Parliament Hill. Instead of addressing the high food costs, Ottawa is moving in the opposite direction. Bill C-282, sponsored by the Bloc Quebecois, has passed the House of Commons and is now before the Senate. If enacted, it would stop Canadian trade negotiators from letting other countries sell more supply-managed products in Canada as part of any future trade deal, effectively increasing protection for Canadian industries and creating another legal barrier to reform. While the governing Liberals hold ultimate responsibility for this bill, all parties to some degree support it.
Supply management is already causing trade friction. The U.S. and New Zealand have filed disputes (under the Canada-United States-Mexico Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership) accusing Canada of failing to meet its commitments on dairy products. If Canada is found in violation, it could face tariffs or other trade restrictions in unrelated sectors. Dairy was also a sticking point in negotiations with the United Kingdom, leading the British to suspend talks on a free trade deal. The costs of defending supply management could ripple farther than agriculture, hurting other Canadian businesses and driving up consumer costs.
Dairy farmers, of course, have invested heavily in the system, and change could be financially painful. Industry groups including the Dairy Farmers of Canada carry significant political influence, especially in Ontario and Quebec, making it politically costly for any party to propose reforms. The concerns of farmers are valid and must be addressed—but they should not stand in the way of opening up these heavily regulated agricultural sectors. With reasonable financial assistance, a gradual transition could ease the burden. After all, New Zealand, with just 5 million people, managed to deregulate its dairy sector and now exports 95 per cent of its milk to 130 countries. There’s no reason Canada could not do something similar.
Bill C-282 is a flawed piece of legislation. Supply management already hurts the most vulnerable Canadians and is the root cause of two trade disputes that threaten harm to other Canadian industries. If passed, this law will further tie the government’s hands in negotiating future free trade agreements. So, who benefits from it? Certainly not Canadians struggling with food insecurity. The government’s refusal to modernize an outdated inefficient system forces Canadians to pay more for basic food staples. If we continue down this path, the economic damage could spread to other sectors, leaving Canadians to bear an ever-increasing financial burden.
Author:
Agriculture
2024 harvest wrap-up: Minister Sigurdson
As the 2024 growing season comes to a close, Minister of Agriculture and Irrigation RJ Sigurdson issued the following statement:
“While many Albertans were enjoying beautiful fall days with above-average temperatures, farmers were working around the clock to get crops off their fields before the weather turned. I commend their continued dedication to growing quality crops, putting food on tables across the province and around the world.
“Favourable weather conditions in August and early September allowed for a rapid start to harvest, leading to quick and efficient completion.
“The final yield estimates show that while the South, North West and Peace regions were slightly above average, the yields in the Central and North East regions were below average.
“Crop quality for oats and dry peas is currently exceeding the five-year average, with a higher rate of these crops grading in the top two grade categories. In contrast, spring wheat, durum, barley and canola are all grading in the top two grades at rates lower than the five-year average.
“Crop grading is a process that determines the quality of a grain crop based on visual inspection and instrument analysis. Factors like frost damage, colour, moisture content and sprouting all impact grade and affect how the grain will perform during processing or how the end product will turn out. Alberta generally produces high-quality crops.
“Farmers faced many challenges over the last few years and, for some areas of the province, 2024 was a difficult growing season. But Alberta producers are innovative and resilient. They work constantly to meet challenges head-on and drive sustainable growth in our agricultural sector.
“Alberta farmers help feed the world, and I’m proud of the reputation for safe, high-quality agricultural products that this industry has built for itself. Thank you to our producers, and congratulations on another successful harvest!”
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