I'm William Van Tassel. I'm vice-president of the Ontario–Quebec Grain Farmers' Coalition, and I'm also vice-president of the Fédération des producteurs de cultures commerciales du Québec.
I would like to thank the members of the standing committee for letting me give input on this serious problem, farm income, that Canadian farmers are facing, and also the chance to be able to offer solutions adapted to our environment.
Who are we? The Ontario–Quebec Grain Farmers' Coalition, represents the interests of 41,000 grains and oilseeds farmers in Ontario and Quebec. The coalition was established in recognition of the shared interests and challenges between the Ontario Grain & Oilseed Safety Net Committee and the Fédération des producteurs de cultures commerciales du Québec.
The issue is that international farm subsidies create uncertainty, resulting in a steady stream of farmers abandoning their farms each year. In Ontario alone, more than 1,200 farmers leave the industry each year.
I don't have the figures for Quebec, but I can tell you about a case that touches me more closely. The past president of my Quebec federation had his grain farm seized just last fall. It was a place where he and his family were earning a living, and it was also the family farm for many generations. So it touched our families very closely.
I'll maybe give you some ideas to solve the problem, what we need to survive. Ontario and Quebec grains and oilseeds farmers need a federally funded companion safety net program that provides regional flexibility. We understand that problems can't be solved in exactly the same way all over Canada. It's a big country. We have different problems and we have different ways to remedy the problems.
The program also needs to act as an insurance program to offset losses in a given year due to depressed global prices. Our solution for Ontario is a business risk management insurance program. In Quebec, we have had the ASRA program for thirty years. It's a program that works very well, except that with the continued low prices, our premiums are becoming sky-high. In those times, we need the federal government to provide some help.
We have a federal program now, but at least for the grain farmers, CAIS does not work due to our steady decline in margins. It does not meet the unique needs of Ontario and Quebec grains and oilseeds producers. As I was saying, it does not cover the steady decline of the farm margins due to, amongst other things, the U.S. Farm Bill.
What we need is a companion safety net program designed with input from producers. It must be one that is regionally focused in order to avert WTO trade challenges and is also designed to ensure regional flexibility to meet the local needs of farmers. It must provide a reasonable, cost-effective solution for producers, by producers. Producers are prepared to shoulder some of the cost, but they need the federal and provincial governments to invest their fair share.
In terms of principles of the risk management program, RMP would be funded by farmer premiums and by both levels of government. Producers would supply one-third of total funding, which is happening right now with the ASRA in Quebec. Federal and provincial governments will invest the remaining two-thirds based on a 60-40 percentage formula.
As for other principles of the risk management program, it ensures that government funds are invested where the need is greatest, which means that fewer dollars are needed to address the needs, giving a bigger bang for the buck, and it utilizes a regional funding model, and therefore should not affect current trade agreements.
Looking at conditions for RMP, or the risk management program, participants would be required to participate in production insurance and to also participate in CAIS. That means they have to have the responsibility to take all the programs possible so that they can't go running in saying they need an ad hoc program. RMP/ASRA targets and meets the unique needs of Ontario and Quebec grain farmers.
As for benefits, RMP provides grains and oilseeds farmers with required funds that are invested in a program that allows for planning, stability, and predictability. It's bankable, long term, and stable. Those are things you need when you want to address the farm and get ready for the long term.
What are the implications? Without a long-term solution, this crisis will be extremely damaging to the future of the family farms and rural economies. Ontario and Quebec grains and oilseeds farmers are asking for a long-term solution to sustain their operations in the face of devastating international agriculture subsidies.
We're looking for leadership. We are looking to the federal government to show leadership in securing a risk-management ASRA program to demonstrate to grains and oilseeds farmers that they are serious about helping the family farm survive.
I was very short in my presentation, so thank you very much for your attention.