I'd like to start by thanking the standing committee for the opportunity to be here today. I'm a grain farmer in southwest Saskatchewan who, like many other producers across Canada, is very concerned about the notices of non-compliance we are seeing from China with regard to our canola seed exports. I'm sure many of you already know that China is the largest market for Canadian canola, accounting for approximately 40% of all canola generated in Canada.
In 2018, canola seed exported to China generated $2.7 billion, and according to the Canola Council of Canada, the Canadian canola crop contributes $26.7 billion annually to the Canadian economy.
Canola is a very important crop for the producers who grow it. Traditionally, it has been one of the main commodities to generate revenue for our operations. Canola is often a crucial part of a crop rotation, allowing for producers to diversify with crops that do not bring in as much revenue but allow for more sustainable farming practices. On my farm, we rotate between cereals, oilseeds and pulses. An example of a four-year crop rotation is lentils, barley, canola and durum wheat.
Farmers are resilient. We are often referred to as eternal optimists. We have worked hard to hedge our bets. We have worked hard to find ways to mitigate the risk that we face day to day. We grow a variety of crops not only to be more sustainable but also to allow us to manage the risk that comes from relying on a global market to sell our product.
If canola were the only commodity we grow that was currently facing a trade barrier—and I'm sorry but I don't believe for a second that this has anything to do with science; this is political retaliation—we would be able to hunker down and take a couple of years of lower prices. The frightening reality is that almost every crop being grown in Canada is currently struggling with one trade barrier or another.
Italy has shut out our durum wheat. India has enforced heavy tariffs on Canadian pulses, effectively shutting their border to our product. Saudi Arabia has cancelled grain imports, affecting approximately 122,000 tonnes of barley feed. Now China is turning away our canola seed. Let's add to this a carbon tax and areas that are heading into their third year of challenging weather, be that extreme drought or excess moisture. What we have brewing are conditions for the perfect storm.
According to Statistics Canada's 2016 census of agriculture report, there are just over 107,000 farms in western Canada. These farms account for approximately 85% of the crop acres in Canada, and approximately 97% of these farms are family owned and operated. Agriculture and crop production are very important to the Canadian economy, so much so that the recent Barton report named agriculture as one of six possible top drivers for the Canadian economy moving forward.
This information was used to create ambitious targets for us to hit both domestically and internationally by 2025. Now, I ask you, how are we in agriculture going to have any hope of meeting these targets when we do not have healthy bilateral trade agreements, relationships or respect on the global trading platform that our country relies on?
There are different possibilities for how this can all play out. I think it's safe to say that we will see some last-minute changes being made to the number of canola acres planted. I stood beside a farmer at the local co-op a couple of days ago and listened to him cancel some of his canola seed order to take 160 acres out of his canola rotation. He's still going to seed that 160 acres, so the question becomes what crop is a safer bet? If he's looking to keep his oilseed rotation, then it's most likely flax or mustard that he will put down. These are more niche markets, and what we can see happening is that these contract prices will drop as supply increases. We also could be looking at other end markets using China's notices of non-compliance to push the canola price lower as we have limited trading options and, quite frankly, are still trying to move 2018's crop.
Farmers are not looking for a handout, nor are we wanting to require a subsidy for cash flow in our operations. That being said, increasing the amount farmers have access to in the cash advance program would help many manage the capital required to get through this year. Many producers are sitting on canola, lentils and other crops from last year in the hopes that prices will go up and trade disputes will be resolved.
We want regulations and policies in place that are science-based allowing us to grow, invest and continue fuelling our sustainability and the Canadian economy. We want a government in power that isn't so internally focused on scandals that it forgets the importance of our global trade. Canada is a nation dependent on global trade and we are at a logistical disadvantage when it comes to our location and the means by which we transport our export goods to market. We need to be very aware of these challenges and put the appropriate level of respect into our trade agreements and partners.
As a grain farmer, I deal with a huge amount of risk and uncertainty because I cannot control the weather. We can control our actions, our relationships and our bilateral trade agreements. Trade should not be the biggest wild card in the deck when it comes to the success of my family farming operation.
Thank you.