Island farmers face uncertainty as planting season begins with trade tensions looming

As planting season gets underway for many potato farmers on Prince Edward Island, growers say they are facing an unusual level of uncertainty this year, for reasons ranging from rising costs to global trade tensions.

It's colder than usual this spring so some operations are planting a little later, including Steijn Potato Farms in York.

Robin Steijn, whose farm sells about 30 per cent of its potatoes to the U.S., said the current market is difficult to read, especially with political uncertainty stemming from U.S. President Donald Trump's trade war and tariff threats.

"There are some unpredictabilities in the market right now, and it's a little harder to predict how many acres you should put in, and things like that," he told CBC News.

Besides trade concerns, Steijn said farming inputs such as equipment and fertilizers are "shockingly expensive" at the moment, while the price of potatoes has remained essentially the same.

"The potatoes have never really gone up too much in price, especially not for us. I have a saying that I've never sold potatoes as expensive as my grandfather, and that's kind of something that I think needs to change," Steijn said.

Lower contract prices

Greg Donald, general manager of the P.E.I. Potato Board, echoed Steijn's concerns.

Besides weather worries, Donald said financial pressure is top of mind for many Island farmers, with political uncertainty around tariffs adding another layer of worry.

"This year, I'd say there's a little more anxiety than normal," Donald said. "When there's uncertainty, there's less confidence in making those bigger purchases and investments in a business, whether it's buildings or warehouses or farm equipment."

Meanwhile, potato processing contract prices are down about five per cent — a situation seen not only on P.E.I. but also across North America, Donald said.

If we have a dry or too wet… season that impacts the yield... that means it's not going to be a good year financially.— Greg Donald

He attributes this to economic pressures and restaurant market softening.

"Contracts have been settled for less price than last year, so that certainly creates another layer of concern going into the spring," he said.

"We're always subject to the weather, you know, and its impact on crop. And if we have a dry or too wet… season that impacts the yield, such that we have average or less than average yields, that means it's not going to be a good year financially."

However, Donald noted that efforts are underway here on P.E.I. to diversify markets beyond the United States. Exporters are exploring opportunities in regions like Mexico, the Caribbean and Southeast Asia — all markets that could have traditionally taken the industry years to break into.

"There's challenges, but there's still opportunities in our business as well," he said.

Local support lasting

For Soleil Hutchinson, owner of Soleil's Farm in Bonshaw, the current uncertainty has brought some unexpected benefits.

Her organic farm sells produce within P.E.I., and she said more Islanders have been turning to local food sources since the trade tensions began.

"Actually, the support seems to be lasting a little longer, too, because they're seeing that we have this uncertainty, and people are starting to talk about import substitution," she said.

"We've been talking about that for years, and the focus has always been about export. And now people are starting to kind of catch on of, the importance of import substitution and really focusing on our agriculture here at home on the Island."

Still, Hutchinson said she's concerned about the long-term future of farming on P.E.I. With land prices soaring and farmland changing hands, attracting young people to agriculture is becoming more difficult.

"As an island, we know we're pretty precarious. Like, if there's a storm, we know that the bridge closes and the grocery stores — you kind of have to stock up, and they go kind of empty really quickly," Hutchinson said. 

"If we don't have our own farmers, we rely on outside sources. So we need to have young farmers to replace the older farmers."