Agriculture Committee on Nov. 30th, 2010

[Wayne Easter, Liberal, Malpeque, PE]

Ernie, first, in terms of Atlantic Canada, we're a deficit area in beef and hogs. If you look at the numbers for how much we produce, it always amazes me how for a deficit area, the price of beef in our area is Toronto plus transportation, when you think it should be the other way around for beef in our area because you had to bring it in. So I'd like a comment on that.

Second, with regard to the impact of the loss of the cash advance payment program on a second commodity, I know the government is saying there's low interest on the default, and low interest sounds good there--it doesn't sound good, but it's better than nothing--but what would be the financial impact of the loss of up to $400,000 for a potato operation?

[Ernie Mutch]

I don't know if that figures on what it would mean financially, but in most cases, the potato operation was the large part of their operation. If they did in excess of $400,000 through that program--and that industry is struggling as well--and they don't have the ability to roll that over with their livestock or they don't have livestock anymore, it's going to be very difficult for them to repay that in such a short term.

[Wayne Easter, Liberal, Malpeque, PE]

So if the committee could recommend to the minister, and it would take a little political will, that a quick legislative change be made--and a legislative change is required, but we've done that in a day around here before now--at least for a temporary period of time, five years or whatever, so that your second commodities advance payments would not be affected, that would be a help.

[Ernie Mutch]

It would certainly help, definitely. The potato industry is the largest user of the advance payment program in our province.

[Wayne Easter, Liberal, Malpeque, PE]

Okay.

[The Chair, Conservative, Larry Miller]

Thanks, Mr. Easter.

Now we move to Mr. Storseth.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Thank you very much to the witnesses for coming today. It's always good to hear from actual farmers.

We don't have much time, so I'm going to be brief.

Ms. Oliver, you made a comment about farm groups being too intimidated to criticize the Minister of Agriculture or the government for fear of not being allowed back in the door. Could you tell me which organizations or who said that to you?

[Linda Oliver]

The Saskatchewan Cattlemen's Association. Mr. Hextall is the president, and he told us that at our meeting in Yorkton. And the Canadian Cattlemen's Association. I talked to Mr. Masswohl, and he told me not to get too excited because we have this agreement. I said I thought it should be changed.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

That's certainly something we're going to have to take up, because people should feel they have access to their government. I know my cow-calf producers certainly feel they have the right to criticize.

[Linda Oliver]

I want them to be there, yes.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

One of the things I do take umbrage at is the constant criticism of Alberta farmers. Mr. Easter calls Alberta farmers the most socialist farmers out there, when the fact is, when it comes to the things you're talking about, Ms. Oliver, with AgriRecovery for the drought last year, Alberta and Saskatchewan were in the same boat.

One of the criticisms I did have is that it took too long. The criticisms I received from my producers aren't about the amounts of the program, and they generally aren't about the intent of the government; it's about the triggers: what is going to trigger this program, and what is the basis on what's going to be paid out? Those are the two criticisms I get. Would you agree with those? In all reality, although I did complain a bit, the crop year ended, the harvest was in October, and we got paid in January-February, which was relatively quick. Then this year, with the flood, was probably the quickest a federal government has ever responded to a disaster.

So I'm not sure if timing is necessarily.... Would you agree with me that's not necessarily a fair criticism, as much as what the triggers are?

[Linda Oliver]

The triggers are important, but the time...it was very quick, but livestock is not included in that. We're dealing with live animals here, which is a whole lot different from dealing with the grain situation. Nothing was triggered.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

I was talking about the drought recovery. That was for feed, was it not, which was livestock—

[Linda Oliver]

We had to wait for that. It was a very long time coming.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Yes, it was four months.

[Linda Oliver]

No, no.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

The crop year ended in October.

[Linda Oliver]

I think the drought areas waited two years for their cheques.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

The drought areas from 2009?

[Linda Oliver]

The drought areas being paid on hay. I'm not talking about crop.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

They're being paid on hay. That's something we should talk to the Saskatchewan government about, because I know my producers in Alberta have already been paid on that program.

[Linda Oliver]

Yes, but the drought was not just last year; it was two years ago.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Yes, it was 2009.

[Linda Oliver]

Was it not 2008?

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

It was 2009, and then it was announced this February, but the drought was in the 2009 crop year in the Alberta-Saskatchewan AgriRecovery.

I don't want to get into too many of the details on that.

I did want to ask you a quick question. I have a whole bunch I'd like to ask you. I constantly hear from producers, from my cow-calf guys, that the slaughter waste innovation program, the $40 million, increased the base price of our calf at market for them. Would you agree with that?