Article content

OTTAWA — The federal government is changing a payment program for canola farmers to help those affected by China’s decision to ban the Canadian product.

The maximum loan limit through the program will be boosted to $1 million from $400,000, and the portion that will be interest-free is rising to $500,000 from $100,000, Agriculture Minister Marie-Claude Bibeau said on Parliament Hill Wednesday morning.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Ottawa doubles canola aid loans to $1 million to ease pain of China's ban Back to video

“We stand shoulder-to-shoulder with Canada’s canola producers and farm families across the country and we will continue to listen to their needs,” she said.

“Canada has the best canola in the world as well as a very robust inspection system.”

Photo by Canadian Press/Sean Kilpatrick

The government’s announcement comes after China barred canola shipments from two of Canada’s biggest exporters in what is considered retaliation for the detention of Huawei executive Meng Wanzhou.

China imported $2.7 billion worth of Canadian canola seed last year, and any prolonged blockage will hurt farmers, the industry and the broader economy. The seeds are the raw input for canola oil, used in cooking and industry.