Canada’s New Export Law Cripples U.S. Agriculture 7 States in Crisis | The Global Lens
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Aug 11, 2025
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► Canada’s New Export Law Cripples U.S. Agriculture 7 States in Crisis | The Global Lens
A new Canadian export law has brought U.S. agricultural trade to a near standstill — and the fallout is hitting America’s farming states hard.
In this episode of The Global Lens, we break down how Canada’s stricter rules on food safety, traceability, and licensing are crippling exports from key U.S. states like Iowa, Nebraska, Wisconsin, Minnesota, North Dakota, South Dakota, and Illinois.
From plummeting crop prices to processing plant shutdowns and mass layoffs, this is not just a trade dispute — it’s an economic crisis for rural America.
We’ll explore:
- Why Canada’s new law is seen as agricultural retaliation
- The specific damage in each state hit hardest
- The broader impact on jobs, supply chains, and U.S. competitiveness
- What’s next in the U.S.-Canada trade showdown
📢 Do you think this is a fair move by Canada or an attack on U.S. farmers? Comment below!
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#USCanadaTradeWar #AgricultureCrisis #USFarmCrisis #TradeRetaliation #TheGlobalLens #FoodSupplyChain #USFarmers #CanadaExportLaw #TradeWar2025 #AgricultureNews
Timeline:
- 00:00 Introduction
- 02:13 Iowa
- 05:38 Nebraska
- 08:30 Wisconsin
- 11:09 Minnesota
- 13:02 North Dakota
- 15:26 South Dakota
- 17:05 Illinois
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Peter Burgess COMMENTARY
Peter Burgess
Transcript
- Introduction
- 0:05
- [Music]
- A new export law recently enacted by
- Canada has brought the export of US
- agricultural products to this market to
- a near standstill. Under the new
- regulation, every shipment of
- agricultural goods imported into Canada
- must meet stricter standards on food
- safety, requiring rigorous quarantine
- procedures, analysis of pesticide and
- chemical residue. Traceability,
- mandating complete documentation from
- planting, harvesting, and processing to
- transportation. Import licensing
- requiring new permits accompanied by
- inspection certificates recognized
- bilaterally. On paper, this is a step
- aimed at improving product quality and
- ensuring food safety for Canadian
- consumers. However, trade experts
- believe that against the backdrop of
- escalating US and Canada trade tensions,
- this move bears the hallmarks of a
- carefully calculated agricultural
- 1:00
- retaliation, directly targeting
- America's key agricultural states, those
- with significant political influence and
- heavy dependence on exports to Canada.
- The consequences are not confined to the
- corn fields, soybean farms or dairy
- herds. This shock is rapidly spreading
- through the entire supply chain. Food
- processing plants have reduced capacity
- or temporarily shut down due to a lack
- of export outlets. Transport and
- logistics companies have lost export
- orders, leaving trucks idle and drivers
- with fewer trips. Agricultural service
- and supply businesses are reporting
- sharp revenue declines. In several
- localities, layoffs have already begun,
- particularly in industries directly
- reliant on agricultural exports. At
- present, federal and state governments
- are closely monitoring developments and
- weighing multiple response measures from
- trade negotiations to remove barriers to
- seeking alternative export markets to
- ease the pressure on farmers and aggra
- 2:00
- businesses. So, which states are being
- hit the hardest by Canada's new export
- law? Join the global lens as we take a
- closer look at the full picture and the
- extent of the damage each state is
- enduring.
- Iowa
<
- 2:14
- Seven, Iowa.
- Iowa, one of America's leading
- agricultural states, long known as the
- nation's corn and soybean belt, is now
- suffering a severe economic shock
- following Canada's implementation of its
- new export law. Previously, Canada was
- one of Iowa's largest agricultural
- export markets, purchasing millions of
- tons of corn, soybeans, and processed
- products each year. Crossber trade had
- been smooth with thousands of trucks
- every month carrying Iowa's farm goods
- into southern Canadian provinces. Yet,
- within only a few weeks of the new law
- taking effect, the situation has
- completely reversed. Food safety and
- traceability standards have been
- tightened, requiring documentation
- 3:01
- proving origin from the farm all the way
- through processing. Many shipments have
- been denied entry simply for lacking
- certification or failing to meet the new
- quarantine requirements. Iowa businesses
- report a sharp spike in additional costs
- for testing and licensing procedures,
- which has severely eroded profit
- margins. As a direct result,
- agricultural exports from Iowa to Canada
- have fallen by more than 40% in less
- than one month. Dozens of truckloads
- have been turned back at the border, and
- warehouse stockpiles have reached record
- highs. Local corn and soybean prices
- have plunged in some places, dropping by
- as much as 25% compared to the same
- period last year. Ripple effects across
- the state's economy. Sales revenues have
- collapsed, leaving many farms unable to
- cover bank loan interest payments. Some
- households have been forced to sell
- products below production cost just to
- ease storage pressure. Planting plans
- for the next season are being cut back
- over fears that investment costs will
- 4:01
- not be recovered. Soybean crushing
- plants, animal feed producers, and grain
- processors have reduced output by
- between 20 and 40%. Several factories
- have temporarily shut down or shortened
- work shifts to save on operating
- 4:16
- expenses. Thousands of processing
- 4:18
- workers and seasonal laborers have seen
- 4:20
- hours reduced or contracts terminated.
- 4:23
- Agricultural truck drivers face fewer
- 4:25
- trips, lower incomes, or mandatory
- 4:28
- layoffs. Towns dependent on farming
- 4:30
- report declining sales at stores, gas
- 4:33
- stations, and logistics services. Rising
- 4:36
- unemployment risks and falling domestic
- 4:38
- consumption threaten to push local
- 4:40
- economies into recession. Strategic
- 4:43
- outlook. Trade experts say this is one
- 4:45
- of the most direct hits to Iowa's
- 4:47
- agriculture since the US and China trade
- 4:50
- war in 2018. Canada's decision to raise
- 4:53
- export standards in the midst of
- 4:55
- escalating trade tensions is widely
- 4:57
- viewed as a deliberate act of
- 4:59
- agricultural retaliation. am squarely at
- 5:02
- politically influential states heavily
- 5:04
- dependent on farm exports. If the
- 5:07
- situation drags on for more than 3
- 5:09
- months, Iowa could lose hundreds of
- 5:11
- millions of US dollars in export value
- 5:13
- and face a wave of bankruptcies among
- 5:16
- small and medium-sized farms. The
- 5:18
- resulting job losses would ripple from
- 5:20
- farmers and processing plant workers to
- 5:23
- the service, transport, and retail
- 5:25
- sectors.
- 5:33
- [Music]
- Nebraska
- Six. Nebraska.
- 5:42
- Nebraska, a state located in the heart
- 5:45
- of America's agricultural belt, is
- 5:47
- experiencing a double shock as Canada's
- 5:49
- new export law simultaneously strikes
- 5:52
- both its livestock and crop sectors.
- 5:55
- Unlike Iowa, which depends heavily on
- 5:57
- corn and soybeans, Nebraska has a mixed
- 6:00
- agricultural economy. It is both one of
- 6:02
- the nation's leading producers of beef
- 6:04
- and dairy cattle and an important grain
- 6:07
- producing state. Canada has long been a
- 6:09
- major buyer of beef and processed meat
- 6:12
- products from Nebraska, as well as an
- 6:14
- importer of grains used for food
- 6:16
- processing and animal feed. Since
- 6:18
- Ottawa's new export regulations came
- 6:20
- into effect, trade disruption has been
- 6:23
- immediate. Beef and powdered milk from
- 6:25
- Nebraska have been rejected for failing
- 6:28
- to meet the new requirements for
- 6:29
- traceability documentation and
- 6:31
- quarantine procedures. Some meat
- 6:33
- exporters report that certification
- 6:35
- costs have doubled while extended
- 6:37
- clearance times increased the risk of
- 6:40
- product quality deterioration. Many
- 6:42
- grain shipments have also been held up
- 6:44
- due to demands for additional
- 6:45
- documentation on seed origins,
- 6:48
- fertilizers, and pesticide use.
- 6:50
- Statewide impacts. Local beef prices
- 6:53
- have dropped sharply due to over supply.
- 6:55
- Many cattle operations have been forced
- 6:57
- to reduce herd size or liquidate at low
- 7:00
- prices to avoid prolonged losses.
- 7:03
- Slaughterhouses and meat processing
- 7:05
- plants have reduced production shifts
- 7:07
- with some temporarily shutting down.
- 7:09
- Corn and wheat stockpiles have grown
- 7:11
- large and falling prices have pushed
- 7:13
- farm profits to their lowest levels in
- 7:15
- years. Planting plans for the new season
- 7:18
- are being scaled back to reduce the risk
- 7:20
- of further inventory buildup. Meat and
- 7:23
- dairy processing facilities have laid
- 7:25
- off hundreds of workers or reduced
- 7:27
- working hours. The agricultural
- 7:29
- transport sector has lost export
- 7:31
- contracts, forcing many truck drivers to
- 7:34
- seek alternative work to maintain their
- 7:36
- income. Sales for local stores,
- 7:39
- logistics services, and agricultural
- 7:41
- supply businesses have dropped
- 7:43
- significantly. Some local banks have
- 7:45
- begun tightening credit to farmers over
- 7:47
- concerns about declining repayment
- 7:49
- capacity. Immediate risks. Nebraska farm
- 7:53
- organizations warned that without a
- 7:54
- trade resolution or emergency federal
- 7:57
- assistance, many farms and livestock
- 7:59
- operations will not survive the coming
- 8:01
- winter. The risk of a regional economic
- 8:04
- recession is growing as job losses and
- 8:07
- income declines continue to spill over
- 8:09
- into other service industries.
- 8:28
- [Music]
- Wisconsin
- 8:32
- Five. Wisconsin.
- 8:35
- Wisconsin, long known as America's dairy
- 8:37
- state, the nation's dairy capital, is
- 8:40
- facing a severe crisis following
- 8:42
- Canada's implementation of its new
- 8:44
- export law. The state's dairy industry
- 8:46
- has long been heavily dependent on the
- 8:48
- Canadian market, not only for fresh
- 8:51
- milk, but also for high value dairy
- 8:53
- products such as cheese, butter,
- 8:55
- powdered milk, and whey protein. These
- 8:58
- products account for a significant share
- 9:00
- of Wisconsin's total agricultural export
- 9:02
- revenue.
- 9:04
- However, Canada's new law has completely
- 9:07
- changed the landscape. Stricter quality
- 9:10
- control and traceability requirements
- 9:12
- have caused many shipments to be delayed
- 9:14
- or denied entry. Canada's dairy import
- 9:17
- quota system has tightened, prioritizing
- 9:19
- domestic production and significantly
- 9:21
- reducing purchases from the United
- 9:23
- States. Some cheese exporters report
- 9:26
- revenue drops of up to 50% in just a few
- 9:29
- weeks. Fallout across the entire dairy
- 9:32
- value chain. Farmgate milk prices have
- 9:34
- fallen to their lowest level in many
- 9:36
- years. Many dairy farmers cannot
- 9:38
- generate enough income to cover feed,
- 9:41
- labor, and operating costs. Hundreds of
- 9:44
- small farms face the looming threat of
- 9:46
- permanent closure. Processing capacity
- 9:48
- has dropped sharply with cheese and
- 9:51
- powdered milk inventories piling up.
- 9:53
- Long-term contracts with Canadian buyers
- 9:55
- have been cancelled or suspended.
- 9:57
- processing, packaging, and
- 9:59
- transportation workers have had their
- 10:01
- hours cut. Several plants have announced
- 10:04
- layoffs of hundreds of employees in
- 10:06
- order to remain operational. Communities
- 10:08
- built around the dairy industry, from
- 10:10
- agricultural supply stores and equipment
- 10:13
- repair services to restaurants, have
- 10:15
- been hit hard by declining purchasing
- 10:17
- power. Local banks have tightened credit
- 10:19
- over concerns about farmers ability to
- 10:21
- repay loans. long-term risk. If this
- 10:24
- situation lasts for more than one
- 10:26
- quarter, Wisconsin could lose its
- 10:28
- position as one of the leading exporters
- 10:30
- of dairy products to Canada. This would
- 10:33
- not only strike a blow to the state's
- 10:35
- agricultural economy, but also weaken
- 10:37
- America's dairy industry in the broader
- 10:40
- North American market. Dairy industry
- 10:42
- associations are urging the federal
- 10:44
- government to move quickly to negotiate
- 10:46
- with Canada to remove export barriers
- 10:49
- while also providing emergency financial
- 10:51
- support to farmers and domestic
- 10:54
- processing companies.
- 10:55
- [Music]
- 11:02
- [Applause]
- 11:03
- [Music]
- Minnesota
- 11:11
- Four, Minnesota,
- 11:13
- [Music]
- 11:14
- one of the largest grain producing hubs
- 11:16
- in the US Midwest, is being hit hard by
- 11:19
- Canada's new export law. The state is
- 11:21
- well known for its abundant production
- 11:23
- of wheat, corn, and soybeans, much of
- 11:27
- which is consumed domestically and
- 11:29
- exported to nearby markets, with Canada
- 11:31
- being a key partner. However, Ottawa's
- 11:34
- new regulations have choked the supply
- 11:36
- chain right from the transportation
- 11:37
- stage. Grain shipments are now required
- 11:40
- to provide additional traceability
- 11:42
- documentation and quality certification
- 11:44
- before customs clearance. Many freight
- 11:47
- trains and trucks have been forced to
- 11:48
- wait for weeks at ports and border
- 11:50
- crossings, driving up logistics costs.
- 11:53
- Exporters have lost on-time delivery
- 11:55
- contracts, resulting in penalty fees and
- 11:58
- diminished credibility with clients.
- 12:01
- Widespread impacts. Local wheat and
- soybean purchase prices have dropped
- sharply due to over supply. Farmers are
- forced to store their products for
- longer periods, increasing storage costs
- and the risk of quality degradation.
- Trucking and rail freight companies have
- lost revenue as export volumes decline.
- Many drivers and loading crews have had
- their hours reduced or have been
- temporarily laid off. Export revenue
- losses have directly impacted the
- state's tax base. Towns dependent on
- agricultural transportation face the
- risk of prolonged economic slowdown.
- Immediate risks. Experts warn that if
- this situation is not resolved within 3
- to 4 months, Minnesota will not only
- lose a significant share of the Canadian
- market, but also forfeit its competitive
- advantage in the North American region.
- [Music]
- North Dakota
- 13:02
- [Music]
- 13:03
- Three. North Dakota.
- 13:06
- North Dakota, a state bordering Canada
- 13:09
- and one of America's leading producers
- 13:11
- of soybeans and wheat, is facing a major
- 13:14
- blow to its agricultural sector
- 13:16
- following Ottawa's implementation of its
- 13:18
- new export law. Canada has long been a
- 13:21
- strategic customer for North Dakota.
- 13:23
- importing large volumes of soybeans, mil
- 13:26
- wheat, and processed grain products for
- 13:28
- use in its food and livestock sectors.
- 13:31
- But since the new law began requiring
- 13:33
- stricter traceability and higher
- 13:35
- quarantine standards, many shipments
- 13:37
- have been delayed or outright rejected.
- 13:39
- In addition, extended customs clearance
- 13:42
- times, sometimes lasting several days at
- 13:44
- border crossings such as Pima, Portal,
- 13:47
- and Northgate, have driven
- 13:48
- transportation costs sharply higher.
- 13:51
- impact on agriculture. Purchase prices
- 13:53
- have fallen by between 20 and 25%
- 13:56
- compared to the beginning of the year
- 13:58
- due to the loss of a major sales
- 14:00
- channel. Stockpiles at storage
- 14:02
- facilities along the border have grown
- 14:04
- rapidly, adding pressure from increased
- 14:06
- storage costs. Exports of mil wheat and
- 14:09
- raw grain have dropped significantly,
- 14:11
- hurting both processing plants and crop
- 14:14
- farmers. Many agricultural cooperatives
- 14:16
- have temporarily suspended purchasing or
- 14:19
- reduced purchase prices to limit
- 14:21
- inventory buildup. Transport companies,
- 14:24
- milling facilities, and storage
- 14:26
- warehouses have scaled back operations,
- 14:28
- laying off or cutting the hours of large
- 14:31
- numbers of workers. Border towns that
- 14:33
- rely on crossber trade have seen sharp
- 14:35
- declines in retail and service revenues.
- 14:38
- Long-term risk. Experts warned that if
- 14:41
- North Dakota cannot secure alternative
- 14:43
- markets within the next few months,
- 14:45
- soybean and wheat production will be
- 14:47
- forced to contract. This would not only
- 14:50
- reduce the incomes of thousands of
- 14:52
- farming households, but also threaten
- 14:54
- the state's position as an agricultural
- 14:56
- export leader in global trade. The North
- 14:59
- Dakota Farmers Union has urged the state
- 15:01
- government to work with federal
- 15:03
- authorities to negotiate urgently with
- 15:05
- Canada to remove trade barriers while
- 15:08
- also providing preferential credit
- 15:10
- support to farmers so they can maintain
- 15:12
- production through this difficult
- 15:13
- period.
- South Dakota
- 15:29
- Two, South Dakota.
- 15:32
- The state is well known for its large
- 15:34
- beef cattle herds and is also a
- 15:36
- significant producer of corn and wheat
- 15:38
- for both domestic consumption and
- 15:40
- export. Canada has long been an
- 15:42
- important market, particularly for fresh
- 15:45
- beef, processed meat products, and whole
- 15:47
- grains. However, Ottawa's new
- 15:49
- regulations have disrupted this supply
- 15:51
- chain. Beef products are now required to
- 15:54
- include additional traceability
- 15:56
- documentation and adhere to stricter
- 15:58
- quarantine procedures, lengthening
- 16:00
- clearance times and increasing costs.
- 16:03
- Grain shipments must now prove the
- 16:05
- origins of seeds, fertilizers, and
- 16:07
- pesticides, a requirement that has left
- 16:10
- many shipments unable to meet export
- 16:12
- conditions. Consequences for livestock
- 16:15
- and crop farming. Beef prices have
- 16:17
- fallen sharply due to over supply as
- 16:19
- exports are blocked. Many cattle
- 16:21
- operations have been forced to reduce
- 16:23
- herd size or liquidate at low prices to
- 16:26
- cut feed costs. Meat processing plants
- 16:29
- have reduced work shifts with some
- 16:31
- temporarily shutting down in certain
- 16:33
- areas. Corn and wheat inventories have
- 16:35
- risen rapidly, driving down domestic
- 16:38
- market prices. Some farms are reducing
- 16:41
- planting acreage for the next season to
- 16:43
- avoid prolonged stockpiles. Workers in
- 16:45
- meat processing, transportation, and
- 16:48
- agricultural services have seen reduced
- 16:50
- hours or job losses.
- Illinois
- 17:07
- One, Illinois.
- 17:10
- [Music]
- 17:11
- The state is not only a major producer
- 17:13
- of corn and soybeans, but also a leader
- 17:16
- in exporting high value processed
- 17:18
- agricultural products such as soybean
- 17:20
- oil, industrially processed corn,
- 17:22
- ethanol, and animal feed. However, since
- 17:26
- Ottawa's new regulations took effect,
- 17:28
- this trade has almost come to a
- 17:30
- standstill. Processed shipments now face
- 17:32
- strict certification requirements on the
- 17:35
- origin of raw materials and production
- 17:37
- processes. Many long-term contracts with
- 17:40
- Canadian partners have been suspended or
- 17:42
- cancelled due to rising compliance costs
- 17:44
- and prolonged customs clearance times.
- 17:47
- Several processing plants have reduced
- 17:49
- capacity, disrupting the state's
- 17:51
- internal supply chain. Impact on the
- 17:53
- state economy. Purchase prices for raw
- 17:55
- agricultural products have dropped
- 17:57
- sharply due to reduced demand from
- 17:59
- processing facilities. Farmers incomes
- 18:02
- have fallen, particularly in central and
- 18:04
- southern Illinois regions, heavily
- 18:06
- dependent on exports via ports and
- 18:09
- transport routes to Canada. Ethanol,
- 18:11
- vegetable oil, and animal feed plants
- 18:13
- have cut shifts with some facilities
- 18:16
- temporarily shutting down. Logistics
- 18:18
- companies, inland ports, and transport
- 18:21
- services have reduced throughput.
- 18:23
- Processing, loading, and transport
- 18:25
- workers have had their hours reduced or
- 18:27
- have been laid off. Seasonal laborers
- 18:30
- have lost jobs abruptly, directly
- 18:32
- impacting rural household incomes.
- 18:44
- From trade dispute to regional
- 18:46
- agricultural crisis,
- 18:48
- [Music]
- 18:49
- Canada's tightening of export laws is
- 18:51
- not merely a technical adjustment to
- 18:54
- food safety or traceability standards.
- 18:56
- In the context of escalating US and
- 18:59
- Canada trade tensions, this move has
- 19:01
- evolved into a sophisticated
- agricultural retaliation, striking
- directly at states heavily dependent on
- the northern export market. Seven key
- agricultural states from Iowa, Nebraska,
- Wisconsin, Minnesota, North Dakota, and
- South Dakota to Illinois are
- experiencing simultaneous declines in
- revenue, export volumes, and employment.
- The consequences go far beyond the
- fields and farms spreading into
- processing plants, logistics and
- transportation networks, and entire
- rural communities whose livelihoods
- depend on agriculture. If this situation
- drags on for another 3 to 6 months, many
- experts predict that the United States
- will face the largest wave of farm
- bankruptcies in decades. a rural
- employment crisis with tens of thousands
- of workers losing their jobs. A drop in
- the production of strategic agricultural
- commodities, weakening America's
- competitive position in the North
- American market. Meanwhile, Canada
- 20:00
- continues to maintain its protective
- shield for its domestic market,
- strengthen its internal production base,
- and apply pressure on the US to
- reconsider its bilateral trade policies.
- Now, the challenge for Washington is not
- only to restore trade relations with
- Canada, but also to protect the
- livelihoods of millions of farmers and
- agricultural workers, those on the front
- lines of this new trade war.
| |