Evidence of meeting #39 for Agriculture and Agri-Food in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was c-18.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Delaney Ross Burtnack  President and Chief Executive Officer, Canadian Association of Agri-Retailers
Jaye Atkins  Chief Executive Officer, Agricultural Credit Corporation
Susan Antler  Executive Director, Compost Council of Canada
Chidi Oguamanam  Professor, Faculty of Law, University of Ottawa, As an Individual
Ariane Gagnon-Légaré  Community Organizer, Les AmiEs de la Terre de Québec
Dennis Prouse  Vice-President, Government Affairs, CropLife Canada
William Van Tassel  First Vice-President, Fédération des producteurs de cultures commerciales du Québec
Stephen Yarrow  Vice-President, Biotechnology, CropLife Canada
Salah Zoghlami  Advisor, Agronomic and Research, Fédération des producteurs de cultures commerciales du Québec

12:05 p.m.

Conservative

The Chair Conservative Bev Shipley

I'll call the members back and we will start our second hour.

With us we have, from CropLife, Dennis Prouse, vice-president, government affairs, and Stephen Yarrow, vice-president, plant biotechnology; from the Fédération des producteurs de cultures commerciales du Québec, we have William Van Tassel, first vice-president, and Salah Zoghlami, adviser, agronomic research; and, also from Quebec, Les AmiEs de la Terre de Québec, with Ariane Gagnon-Légaré, community adviser.

Welcome.

I'm going to start with the video conference just in case we have any technical problems.

Madam Légaré, please, for six minutes.

12:05 p.m.

Ariane Gagnon-Légaré Community Organizer, Les AmiEs de la Terre de Québec

Good afternoon.

In Les AmiEs de la Terre de Québec, we are working towards a society that is green, united and just. We are concerned by the way in which Bill C-18 may or may not encourage a transition towards viable development.

Just like the federal government, we want to encourage innovation and prosperity. The innovation and prosperity we want improves the quality of the food the public consumes and fosters the well-being of those working in the agri-food sector, not just in Quebec and Canada, but also internationally.

The provisions that attract our attention are those dealing with plant varieties and those seeking to bring Canada's legislation into line with the UPOV 91 standard. We will discuss their impact on agricultural biodiversity, the recognition of the common good, innovation, citizen engagement and food sovereignty.

First, our fear is that the provisions governing plant varieties will adversely affect the free management of seeds. The provisions allow restrictions on the storage and distribution of seeds with a plant variety certificate. In reality, it is mostly the large companies that have the resources and the culture to do the administration required to obtain such certificates.

In recent decades, we have seen agricultural biodiversity eroding at an unprecedented rate. According to the Convention on Biological Diversity's agricultural biodiversity work program, the reduction in biodiversity is the result of the homogenization of agricultural production systems through the intensification and specialization of cultivation and breeding, and the standardization implicit in globalization.

Historical data show that, until now, the diversity of farming, especially the coexistence of many small farms, each of which chose and managed its seeds, while sharing them widely, fostered diversity among plant varieties, whereas the industrialization of agriculture introduced by large companies has contributed to a severe curtailment of agricultural biodiversity.

Therefore, by adopting standard UPOV 91, Canada could reduce the number of players involved in managing seeds, thereby further weakening the creativity of those players and adversely affecting the current level and the expansion of agricultural biodiversity.

The seeds we use today are the result of the work and the ingenuity of millions of farmers who, over millennia, have selected varieties that best match their conditions of climate and geography, their way of life and their taste. As the result of centuries-old processes of innovation and diversification, agricultural biodiversity and the seeds that contain it should be recognized as a common heritage of mankind. We feel that this heritage should not be patented, or almost patented, by plant variety certificates. Imposing a monopoly of that kind on certain varieties of seeds would not show deference to the collective work from which they emerged.

To stimulate innovation, rather than rehashing the traditional system of patents and copyrights by means of plant variety certificates, Canada would do much better to look for inspiration to the open-source software movement and the data liberation movement. Technology and electronics are eloquent demonstrations of how distributing source code stimulates collective intelligence into producing efficient tools while generating wealth. Data liberation is also being adopted by many government administrations and hundreds of universities and research institutions. Currently, data liberation is providing a host of examples of its relevance and its productivity. Adopting standard UPOV 91 would run counter to that movement.

Moreover, seeds are the basis of our food supply, one of the pillars of our survival and quality of life because of its effect on our environment, our health and our mental faculties. In our view, therefore, public management of seeds is critical.

In that context, we are concerned by two points in the bill. First, as we have highlighted above, the changes in plant variety management that Bill C-18 envisages, in addition to their negative effects on biodiversity, do not encourage public participation in seed management.

Additionally, it is critical in our view that the development of new plant varieties must in no way be in the hands of companies motivated by financial gain. We feel that a wider range of players, motivated by a much wider range of incentives rooted in a diversity of communities and contexts, are better able to bring about development in a way that will meet the needs of present and future generations. In that sense, always mindful of the vital role of agriculture and food supply, we would like public authorities to have responsibility for seed innovation and to respond to the directions set out as a result of public debate.

Through the points we have just presented, that is, our concern for agricultural biodiversity, recognizing it as a common heritage of mankind, free access to, and the democratic and participatory management of, seeds, what we fundamentally want to advocate is food sovereignty. La Via Campesina defines it as the right of peoples to healthy and culturally appropriate food produced through sustainable methods and their right to define their own food and agriculture systems.

A people or a state has achieved food sovereignty if it has “the right, the freedom and the ability to define its own unique agricultural, labour, fishing, food and land policies”. That is to say that a population's food sovereignty cannot be achieved to the detriment of others.

Food sovereignty puts agrifood matters in local hands. Food supply and agriculture must therefore, by definition, be collectively managed in order to be tailored to the environmental, social, economic and cultural characteristics of the communities.

This concept therefore is somewhat removed from current economic trends in which agriculture and food production are subject to economic rules that are disconnected with their social and environmental consequences. Food sovereignty represents a legitimate reason, for example, to adopt measures to protect local production, distribution and marketing and to set criteria for employment standards and for environmental respect. Measures that traditional economists may perceive as protectionist therefore become the basic tools of community development.

Adherence to the principle of food sovereignty means that the disappearance of small holdings observed in recent decades can be combatted. It is a way to stimulate the economy of rural regions and shield them from the vagaries of global markets. Encouraging small agricultural operations can also be a tool that provides access to fresh and high-quality local produce. Just like participation in agricultural activity, that high-quality produce can play a role in promoting healthy lifestyle habits.

I only have one more sentence to go.

12:10 p.m.

Conservative

The Chair Conservative Bev Shipley

I'll have to ask you to wrap up, please.

12:10 p.m.

Community Organizer, Les AmiEs de la Terre de Québec

Ariane Gagnon-Légaré

I will.

Starting from seed management, the vision we propose is one that considers environmental justice, public health and poverty reduction in broader terms. In our vision, our food system, given the critical role it plays in economics, the environment, regional vitality and public health is determined by debate and decisions made at community level for the benefit of present and future generations.

Thank you.

12:10 p.m.

Conservative

The Chair Conservative Bev Shipley

Thank you very much.

I'll go to Mr. Prouse from CropLife Canada, please, for six minutes.

12:10 p.m.

Dennis Prouse Vice-President, Government Affairs, CropLife Canada

Mr. Chair and members of the committee, thank you for inviting us here today. With me is my colleague Dr. Stephen Yarrow, our vice-president of biotechnology. It's our pleasure to offer some remarks to you today on Bill C-18, the agricultural growth act, on behalf of our members and answer any questions you might have.

CropLife Canada is the association representing the manufacturers, developers, and distributors of plant sciences technologies, including pest control products and plant biotechnology, for use in agriculture, urban, and public health settings. We strive to ensure that the benefits of plant science innovation can be enjoyed by farmers and consumers. CropLife Canada promotes sustainable agricultural practices, and we're committed to protecting and promoting human health and the environment.

We also work very closely with a number of stakeholder groups. We're very proud of the fact that all of Canada's major farmer-based grower groups are members of our GrowCanada partnership. We are strongly supportive of Bill C-18, and hope that the House of Commons and Senate can pass it promptly.

We are particularly pleased about the potential to amend the current Plant Breeders' Rights Act, a key plank of the bill. We are also very encouraged by the portions of the agricultural growth act that relate to providing the Canadian Food Inspection Agency with the authority to consider foreign reviews, data, and analyses during the approval or registration of new products in Canada. Both these elements, after all, have certainly been a long time coming. As committee members know, Canada is still operating under the provisions of the Plant Breeders' Rights Act that was passed in 1990. That act, however, only conforms to UPOV 78, not to the updates of the UPOV convention that took place in 1991. I believe only New Zealand and Norway join us on the list of developed countries not currently conforming to UPOV 91.

Our lack of conformity to UPOV 91 has had consequences. It acts as a disincentive to bring to Canada plant varieties that have been developed elsewhere. An associated issue is that it builds in an incentive to invest outside of Canada. As we've pointed out to this committee in the past, agricultural innovation is going to take place, and is taking place, globally. The question becomes, will Canada provide the environment that encourages this innovation to take place in our country? Bill C-18 takes a long overdue step to correct this issue.

Encouraging the development of new varieties of plants is not just a corporate issue. It has direct benefits for Canadian farmers, who use innovation to both increase yields and improve sustainability. Only a modern legislative framework for intellectual property protection, one that brings us into alignment with our global trading partners, can encourage the kind of investment that leads to innovation.

The introduction of Bill C-18, even before it has become law, has already had a positive impact on the environment for investment in innovation. Just last month one of our member companies performed the sod-turning on another new research facility, this time for wheat breeding, near Saskatoon. The prospect of Bill C-18 and the adoption of UPOV 91 was a critical factor for this global company to consider when deciding on where best to invest its research dollars. Other companies are actively working to bring new varieties to Canada, as they can now be assured that Canada will be in line with international standards.

The real-world implications of not modernizing our laws are clear; when these investments in innovation are made elsewhere, immediate benefits, such as increased yield or improved disease resistance, go to farmers who are global competitors of ours. It is well worth noting that universities, government departments, and smaller independent breeders, of which there is an increasing number, also benefit from compliance with UPOV 91. Almost half of Canadian plant breeders' rights applications come from public institutions, and royalties will continue to accrue to them.

There is a need to address the issue of farmer-saved seed and the myth that somehow this bill will prevent this from taking place. This is, of course, completely untrue. Ironically, the current version of the legislation does not address farmer-saved seed in any way. Bill C-18 explicitly addresses it and provides a clear farmers' exception for the saving and planting of farmers' own seed.

Those are some of the areas around plant breeders' rights in Bill C-18. There are other stakeholders who can give you very fulsome explanations of this issue. I gather that at one of your first meetings you heard from Cereals Canada, the Canadian Canola Growers Association, and the Barley Council. We believe the Canadian Seed Trade Association will also provide some very helpful testimony to the committee on a number of fronts.

The less-discussed element of Bill C-18 that we believe deserves attention, and indeed praise, is the portion that provides CFIA with the authority to consider foreign reviews, data, and analyses during approval or registration of new products in Canada.

A key challenge moving forward for the CFIA will be their efforts to streamline and modernize the approvals process. We know that the number of approvals for consideration by the CFIA will continue to rise. This is good news. It clearly demonstrates modernization and confidence in Canada.

The challenge will come in assuring that these approvals and registrations are considered in a timely and predictable manner. Canada needs to work with other nations that adhere to global standards on science-based regulation. There's absolutely no need for Canada to collect a second set of data, perform yet another review, and conduct yet another analysis when it has already been performed by another nation whose standards meet ours. It is needless waste and duplication that can and should be eliminated.

By explicitly granting this authority to the CFIA, Canadian consumers will be far better served, and Canada continues to become an attractive place to invest and do business due to a predictable, timely, science-based regulatory system. It's a common-sense step forward that we support fully.

To conclude, Mr. Chair, as one of the leading agricultural producers and exporters in the world, we believe it's critical that Canada modernize its legislative framework to encourage innovation and investment. To do otherwise would be a tremendous disservice to Canadian farmers, consumers, and our economy as a whole.

The potential for Canadian agriculture is immense. There's a growing world population that is anxious for quality Canadian agriculture and agrifood exports. We have the land, the climate, and the people to fill that need. There's never been a better time to be part of agriculture in Canada. To realize our potential, however, we have to constantly move forward and modernize, keeping pace with our global competitors. Bill C-18 is an important step in that process.

Thank you, Mr. Chair. We would be pleased to answer any questions the committee has.

12:20 p.m.

Conservative

The Chair Conservative Bev Shipley

Thank you very much.

Now I'll move on to William Van Tassel, please, for six minutes.

12:20 p.m.

William Van Tassel First Vice-President, Fédération des producteurs de cultures commerciales du Québec

Thank you very much for inviting my federation here.

I'll give my presentation in French, but I'll answer in whatever language you want, in either one of the two.

Founded in 1975, the Fédération des producteurs de cultures commerciales du Québec is made up of 14 regional associations that can be found anywhere in Quebec that grain is grown. The federation has more than 11,000 members. The grain sector generates about $1.1 billion in farm income.

Let me give you a summary of grain production in Quebec.

In Quebec, almost a million hectares is devoted to grain production. For 2014, the area under cultivation is estimated at 910,000 hectares. The two main crops are corn and soybeans, with 39% and 38% of the total acreage respectively. The diagram in my presentation shows the relative extent of the principle grain crops in Quebec. Corn and soybean production is greater in the south and centre of the province. Other crops are more prevalent in regions to the north and the east.

Genetically modified crops take up about 300,000 hectares for corn, from a total of 355,000 hectares and 200,000 hectares for soybeans, from a total of 345,000 hectares. Almost 57% of the area under cultivation uses biotechnology, with the remainder using conventional production methods. For the first production method, the applicable legislation is the Patents Act, while for the second production method, the applicable legislation is the Plant Breeders' Rights Act, the PBRA. I will give you more details about that later.

I am now going to talk about our understanding of Bill C-18, and grain research.

Although Bill C-18 proposes changes to several laws related to the agricultural sector, the federation is particularly concerned with the proposed changes to the PBRA. The federation supports those changes, which would make the PBRA consistent with the 1991 convention of the International Union for the Protection of New Varieties of Plants (UPOV), which governs breeders' rights and protects the intellectual property resulting from research into the development of new crop varieties. This harmonization is necessary in an environment where research collaboration is increasingly global and no longer restricted by geographical borders.

Our position is also evident in our commitment to Partners in Innovation, which brings together 20 groups and represents most of the agricultural producers in Canada. Moreover, all partners welcome the update to the regulatory environment to bring Canadian laws into compliance with UPOV 1991.

The federation believes that protecting intellectual property can only encourage investment in research by various stakeholders in the grain industry, which will offset the reduction in public efforts in scientific agricultural research. It is also an incentive for researchers from different UPOV countries to make their research findings available to Canada, thereby promoting the diversity of genetic resources and the availability of varieties for Canadian and Quebec grain growers. With a diverse range of genetic resources, the industry can be more responsive to market needs and maintain farm competitiveness.

I would like to share a few figures that show the need for another law so that suppliers, that is to say those who produce the seed, are better protected. In 92% of cases, certified seed is used for canola crops. Of course, it is a hybrid and producers have to use it. The fact remains that in Canada the percentage of investment is 74% in the case of canola. For small-grain crops, barley and wheat among others, the percentage of producers who use certified seed is 18%. In total, private investment in small-grain production totals 2% in Canada. We can see that these crops need better protection if we want to see more investment.

I am now going to talk about genetic research in Quebec. Quebec has several public and private institutions that specialize in plant breeding research. These institutions work in the area of genetic selection and are the first to be affected by the section of Bill C-18 amending the PBRA.

These companies are relatively small compared to multinationals that produce and distribute grain seed. As mentioned previously, companies that target niche markets that do not use genetically modified crops are essential to ensure a seed supply to more northern parts of the province that are focused primarily on grain production.

These crops are less attractive to multinationals specializing in seed production because of the low return on investment and small market share compared to GM crops. This supports the arguments for such a research model in order to meet producers' needs for all grain crops. Better protection of plant breeders' rights is therefore essential to ensure the presence of small companies in the market.

In Quebec, our crop insurance forces us to use certified seed.

I will now discuss the federation's involvement in the grain network and the link with everything involving the PBRA.

In Quebec, cash crop producers contribute to grain research through levies on grain sales. A research fund, managed by the federation, was created to co-fund the CEROM, Centre de recherche sur les grains, a grain research centre. The federation also funds the Canadian Field Crop Research Alliance.

Since I have to pick up the pace, I am becoming nervous.

12:25 p.m.

Conservative

The Chair Conservative Bev Shipley

You're well, well over. We won't have time for questions if we keep going.

As the committee knows, we'll go in camera for business at 12:45 or so.

Madame Raynault, you have five minutes, please.

12:25 p.m.

NDP

Francine Raynault NDP Joliette, QC

Thank you, Mr. Chair.

There are about 15 minutes left for questions. That is not much time.

Ms. Gagnon-Légaré, you said that seed was used to create new varieties, and that these were the outcome of the work of several generations of farmers. Could you tell us more about that, please?

12:25 p.m.

Community Organizer, Les AmiEs de la Terre de Québec

Ariane Gagnon-Légaré

In fact, from the beginning, humanity has co-evolved with its environment. I am not an historian, but a biologist. We know that in the beginning, human beings were more nomadic. They began to select seeds and fruit in their environment. Since that time, they have contributed to creating biological varieties.

So this work has been going on for thousands of years and was not subject to obtaining a plant variety certificate. To a certain extent, when individuals or a business appropriate a seed, that is not recognized.

Moreover, it is that development which took place in the whole of humanity over thousands of years that leads our organization to support the recognition of seed as a common good that belongs to humanity.

12:30 p.m.

NDP

Francine Raynault NDP Joliette, QC

You know that industrialization reduced the number of potato varieties. We know that in Ireland, for instance, there was a serious problem in that regard and a lot of Irish people came to live in Canada.

It is possible that farmers' prerogatives might be curtailed and lead to a certain food insecurity. What do you think?

12:30 p.m.

Community Organizer, Les AmiEs de la Terre de Québec

Ariane Gagnon-Légaré

Yes, that is what we think, to some degree. There is a program under the United Nations' Convention on Biological Diversity to deal with this very issue. Historically, if you look at the trends over the past decades, you see a decrease in agricultural biodiversity and a homogenization of genetic stocks.

In fact, when this capacity to choose and share seed belongs to a greater number of actors, we see greater biological diversity. It is through these processes that biological diversity was created, and not through plant variety certificates or the patents that are being promoted today.

12:30 p.m.

NDP

Francine Raynault NDP Joliette, QC

So it is important for us to maintain our food sovereignty if we want to avoid famines.

12:30 p.m.

Community Organizer, Les AmiEs de la Terre de Québec

Ariane Gagnon-Légaré

That is our first concern.

12:30 p.m.

NDP

Francine Raynault NDP Joliette, QC

Mr. Van Tassel, you wanted to add some things to your presentation.

What would you like to add that you did not have time to tell us?

12:30 p.m.

First Vice-President, Fédération des producteurs de cultures commerciales du Québec

William Van Tassel

In Quebec, crop insurance requires the use of certified seed. For that reason, companies invest because there is a certain return on their investment. There are some small companies in Quebec, but there are also research centres such as Ceresco, Semican et Céréla. The producer has to pay a levy on the seed. This funds research and related work. That is what I meant. This is done elsewhere, to some extent.

This act will mean that the companies will focus more on grain. Personally, I farm in northern Quebec, in the Lac-Saint-Jean area. We produce grain. More work needs to be done to increase yields and to develop varieties that have a certain resistance.

You mentioned the disease that blighted the potatoes in Ireland. In a case like that one, you would need something that would bring about improvement, that is to say a company that would work to make the potato resistant to the disease.

And that is in summary why we need people who work on developing new varieties that are good for the producers, and for everyone generally.

For instance, regarding wheat, we could develop plants that are resistant to fusariosis, but that would require some considerable investments.

12:30 p.m.

NDP

Francine Raynault NDP Joliette, QC

That is correct.

I believe that in Saint-Amable they can no longer produce potatoes because there is a disease in the soil. Potatoes are no longer viable in that area.

12:30 p.m.

Conservative

The Chair Conservative Bev Shipley

Thank you very much.

I'll go to Mr. Dreeshen, please, for five minutes.

October 21st, 2014 / 12:30 p.m.

Conservative

Earl Dreeshen Conservative Red Deer, AB

Thank you very much, Mr. Chair.

Welcome to all of our guests. I have just a couple of things.

We've talked about food security and we've talked about biodiversity.

Mr. Van Tassel, you were speaking about some of the advances in Quebec and how corn and soybeans are key components. Of course, you also talked about the significance of the yield increases that you've had because of GMOs and other opportunities and advancements.

Also, Ms. Gagnon-Légaré, I believe that you are taking the opposite approach on these types of things with the way you have spoken about your concerns about agriculture and how it doesn't follow some anthropological and historical approach.

I guess I'm looking at the conflict that both organizations must have in order to advance this further, because we have had people who have come forward with petitions to say that you want to save your seed, which of course is what this is designed to do, but we have all these conflicting issues.

Mr. Van Tassel, one of the things you mentioned that I found very significant was that for your crop insurance you needed to have certified seed. You must have a great bank of information with respect to yields you're getting by using the certified seeds versus what you would get with second-generation seeds. Do you have information in that regard?

12:35 p.m.

First Vice-President, Fédération des producteurs de cultures commerciales du Québec

William Van Tassel

We don't have information, really, from our crop insurance; the Financière agricole takes care of our crop insurance. We do not have information because normally the farmer is obliged to use certified seed, so right away if you have a problem and you're not using certified seed, well, you don't have a payment. Normally they have to get it.

Like I was saying, though, and like you're talking about, corn has been a hybrid since the 1930s. The yield increase is around 2% per year. Wheat is not really...well, now it's going to be a little more protected for the breeders, but on the yield increase, if it's 1%, it's the maximum, and it's probably less than that. As for what we're seeing in Quebec and why there's so much more corn than soybeans, it's because of the return on investment for the farmers. It's not there for wheat, barley, or oats, because the increase in yields is not there as much.

12:35 p.m.

Conservative

Earl Dreeshen Conservative Red Deer, AB

Mr. Prouse, you were talking about some of the groups in your organization and the things they're looking at as far as increase of crop yields and crop resistance go, and also working as the global trade demands.

I'm just wondering if you could describe how the proposed changes in plant breeders' rights will encourage investment in research and development.

12:35 p.m.

Dr. Stephen Yarrow Vice-President, Biotechnology, CropLife Canada

I think my colleague Dennis Prouse explained fairly well in his presentation that the plant breeders' rights do increase the possibility for greater investment in Canada and greater innovation and so on. It's about protecting the investments. That's the key thing for us.

12:35 p.m.

Conservative

Earl Dreeshen Conservative Red Deer, AB

Are we going to start finding more plant breeders coming into Canada, then, and developing products that are made for the Canadian market?

12:35 p.m.

Vice-President, Biotechnology, CropLife Canada

Dr. Stephen Yarrow

That's what our members are informing us of. That's what we anticipate, yes.