Alberta Farmers Harvest Record Crops Amidst Global Trade Headwinds
Alberta's agriculture sector recorded a banner year for wheat, canola, and barley production, but faces significant trade challenges, particularly with China.
Alberta’s agricultural sector has experienced a remarkable year for its three largest crops: wheat, canola, and barley. According to Rob Roach, an economist with ATB Financial, 2025 was a “good year” from an output perspective, with production across the board exceeding five-year averages.
Specifically, Alberta’s wheat production in 2025 set an all-time record, reaching 12.3 million metric tonnes. This impressive figure reflects a 23.6% increase, driven by an 18.8% rise in yields to 57.0 bushels per acre, as reported by Statistics Canada. Alberta contributed approximately 31% to Canada's national wheat production, which also hit a record 40.0 million tonnes. Canola production similarly saw a strong year, increasing 13.4% to 6.3 million tonnes, with yields rising 16.1% to 45.4 bushels per acre despite a slight decrease in harvested area. National barley production also grew by 19.4% to 9.7 million tonnes, with national yields up 25.6%.
Economic Impact and Trade Challenges
Despite robust production, Alberta's agricultural gains are shadowed by significant trade disruptions. China's provisional tariff of 75.8% on Canadian canola seed, effective mid-August 2025, effectively closed what was Canada's second-largest canola export market. The Canola Council of Canada and the Canadian Canola Growers Association note this market was valued at nearly $5 billion in 2024. While Canadian Oilseed Processors Association indicates national crush capacity utilization has rebounded, some expansion plans are on hold.
Global wheat markets are also experiencing downward price pressure, with the USDA forecasting increased global supplies for 2025/26. In response, the federal government’s 2025 budget introduced measures to support the sector, including $75 million for the AgriMarketing Program and an increased AgriStability compensation rate of 90%. Alberta’s agriculture sector, despite strong output, continues to contend with what the Government of Alberta's Economic Trends report describes as "trade headwinds."
