Feed Grain Weekly: Tariffs could hurt feedlots, grain farmers

Cattle feed industry in Western Canada under threat

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Published: February 27, 2025

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(Geralyn Wichers photo)

Glacier FarmMedia | MarketsFarm — Proposed tariffs from United States President Donald Trump on Canadian and Mexican imports could cause major changes to Western Canadian feedlots.

Jim Beusekom, president of Market Place Commodities in Lethbridge, Alta., said buyers south of the border will be more inclined to purchase cattle being fed rather than finished animals, which could potentially send more head into the U.S.

Feed grain imports likely hindered

He also fears that Canada’s planned retaliatory tariffs will hinder feed grain imports from the U.S., as well as hurt grain farmers in Western Canada.

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Corn bids and offers have lately been far apart, with bids generally a dollar or more below the C$12 per bushel Ontario farmers would like to see. Photo: iStock/Getty Images

Feed Grain Weekly: Prices in a slow decline

Seasonal weakness and recent rains across the Prairies pressured feed grain prices according to a Moose Jaw-based trader.

“Corn and barley are the big ones. If (imports) are shut down across Canada, it could raise our feed prices here. That would further encourage feedlots to move our cattle into the U.S. to finish. It’s a double-edged sword, if you would call it that,” Beusekom said.

“It would be best if Canada would mind their own manners and not countervail feed grains, which is not going to help the cattle feed industry.”

Grain deliveries slow

Feed grain deliveries in Lethbridge have been “slow to steady”, Beusekom added, citing the ongoing decline in cattle numbers. At the moment, feed barley was selling at C$300 per tonne, with feed wheat at C$310/tonne and corn at C$315 to C$320/tonne.

“It’s more advantageous for livestock feeders to supply barley or wheat. They don’t need to buy anymore, so we’re not seeing a lot of action. It’s been on the quiet side,” he said, adding that corn demand only picks up if barley supplies are tight.

“As of right now, we still have plenty of barley around. There’s really no demand until we get into late spring or summer when barley will tighten up.”

About the author

Adam Peleshaty

Adam Peleshaty

Reporter

Adam Peleshaty is a longtime resident of Stonewall, Man., living next door to his grandparents’ farm. He has a Bachelor of Science degree in statistics from the University of Winnipeg. Before joining Glacier FarmMedia, Adam was an award-winning community newspaper reporter in Manitoba's Interlake. He is a Winnipeg Blue Bombers season ticket holder and worked as a timekeeper in hockey, curling, basketball and football.

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