Thank you very much for the invitation to be here today with you to provide a canola farmer's perspective on the market access challenges with canola seed exports to China. China's decision to suspend Richardson International's and Viterra's registration, and its move to stop buying our canola seed has created significant concern and uncertainty throughout the canola value chain and particularly for canola farmers.
CCGA represents 43,000 canola farmers from Ontario west to British Columbia. We are also a member of the Canola Council of Canada and are working with them on a science-based resolution and a resumption of trade as quickly as possible. We welcome the government's announcement yesterday of a working group of farmers, industry and government, and the message by Minister Bibeau and Minister Carr that a resolution is a top priority for Canada. CCGA looks forward to participating in this group.
I cannot overstate the importance of this issue to canola farmers and the uncertainty cast over the 2019 production season. With 90% of our canola exported as seed, oil or meal, canola farmers rely heavily on international trade for their farm's viability. The loss of any market is a concern. The loss of our largest market based on actions that appear to have little in the way of scientific backing is of particular concern. In 2018, China purchased $2.7 billion of canola seed or roughly half of our seed exports.
Farmers are now weeks away from planting the 2019 crop. Seed and fertilizer are already purchased and crop production plans are set. Farmers plan months in advance and consider a variety of factors such as healthy crop rotations, disease pressures, crops in the bin, price and risk management and marketing strategies. All these factors are limiting their ability to change their plans so close to seeding. For example, in central Saskatchewan, seed, chemical and fertilizer costs alone are roughly $215 an acre for canola. With 1,500 acres, this means just over $322,000 to put the crop in the ground and get it growing. That's just one crop for one farmer.
Many farmers choose to grow canola for its stable returns. This year we expect another 23 million acres of canola will be planted. That production will be added to an estimated 10 million tonnes of last year's crop currently remaining in on-farm storage. This will create cash flow challenges for farmers still needing to sell. Delivery and price options will be affected until the market in China reopens or new customers are found. Situations vary by farm, but it is normal practice to sell some grain in the spring to generate cash flow to cover their short-term expenses.
As the government reviews options to assist farmers, cash flow, market diversification and price uncertainty are top of mind for canola farmers. Following are some options to consider.
One is to increase the advance payments program limits. This program provides farmers access to short-term financing at competitive interest rates. An increase in the APP limit beyond the current $400,000 maximum would provide farmers more flexibility to manage their cash flow and prepare for the upcoming production season. We have been asking for this change for quite a few years now, and now is the time to do it.
Agri-stability and agri-invest could be used to help farmers manage income and margin declines. Consideration should be given to how enrolment in agri-stability can be increased and adjustments to these programs can be made to make them more responsive to the current situation.
Initiatives to diversify the canola market, such as increasing the existing biodiesel mandate of the renewable fuels regulations from 2% to 5%, would allow for more canola to be utilized in Canada. Currently the Canadian fuel market uses about 500,000 tonnes of canola annually. At a 5% blend, it would take about 1.3 million tonnes of canola.
Grain and oilseed farms are family-owned small businesses that depend on trade. They are the backbone of thousands of communities throughout Canada. With little warning, they saw the rules of trade practically change overnight without a solution for the foreseeable future. These businesses are now ready to begin a new production season without certainty of market, delivery or price options. Their experience highlights the importance of stable market access and predictable, science-based rules of trade for all Canadian businesses to succeed around the world regardless of the industry.
The longer this blockage persists, the harder it will be for farmers, the agriculture industry and Canada to manage and absorb the negative impact. Canola farmers are confident in the quality of their canola and they need a science-based solution and resumption of trade as soon as possible. Government leadership is critical. We look forward to finding a resolution.
Thank you, and I look forward to your questions.