Agriculture Committee on Feb. 12th, 2026

[The Chair, Liberal, Michael Coteau]

I'd like to call this meeting to order. Welcome to meeting number 23 of the House of Commons Standing Committee on Agriculture and Agri-Food.

Pursuant to the Standing Orders, some members are attending in person and others are online. Before I continue, I would ask all in-person participants to consult the guidelines written on the back of the cards on the table. These measures are in place to help prevent audio feedback incidents and protect the health and safety of all participants, including our interpreters. You'll also notice a QR code on the table, which links to a short awareness video.

I have a couple of comments before we start.

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Pursuant to Standing Order 108(2) and the motion adopted by the committee on Tuesday, January 27, 2026, the committee is commencing its study on the subject matter of clause 223, division 8 of Bill C-15, budget 2025 implementation act, number 1.

I'd like to welcome our witnesses today.

Minister, thank you for joining us.

Deputy Minister, thank you for joining us twice this week. Thank you so much for being here. We appreciate it.

We'll start by providing you five minutes to speak, Minister, and then we'll go into questions.

[Heath MacDonald, Liberal, Minister of Agriculture and Agri-Food]

Thank you, Chair. The deputy was pretty excited to come back, I can tell you that.

First, for all of us, I think, this has been a tough week for the House and many of our colleagues. I'd like to give my condolences for the victims in Tumbler Ridge and in the other places where horrible and senseless tragedies are happening.

Mr. Chair, amid all the change and disruption happening in the world, our government is working hard to tackle these challenges. Bill C-15 implements important elements of budget 2025 and is currently being studied at various committees, including this one.

I'm pleased to be here today to discuss specifically clause 223, in division 8, to amend the Farm Credit Canada Act. Farm Credit Canada is Canada's leading agricultural lender, with more than 100,000 customers across the country. For over 65 years, FCC has been there with an unwavering commitment to customers and the industry through good times and through challenges. FCC listens to its customers and continuously adapts its products and services to fit their unique needs.

Today, FCC plays a vital role in supporting farmers, food processors and the entire agri-value food chain, helping to drive growth, innovation and resilience in one of our country's largest economic sectors.

We're talking about an industry that drives more than $100 billion of our exports, more than 7% of our GDP and one in nine jobs in this country. FCC is much more than a lender. It is invested in the future of our agriculture and food sector. Today, FCC continues to evolve and develop creative new tools to help the sector continue to invest, grow and meet the changing needs of its customers.

In fact, this week, we announced, alongside FCC, $7 billion of new investment into Canadian agriculture and food by 2030. This will help grow ag-tech innovation in our agriculture food industry and sciences. FCC has also expanded its digital services, strengthened risk management and introduced new financing tools focused on sustainability.

As a government, we want to help make sure that FCC continues to have the tools and flexibility it needs to continue this great work.

Our discussion today comes at a moment when Canadian farmers and food processors are facing unprecedented change, uncertainty and instability from a perfect storm of pressures, including unjustified tariffs and other trade disruptions, extreme droughts and flooding, high input costs and animal and crop disease, as just a few.

We want to ensure that FCC can continue to meet the evolving needs of the sector, remain aligned with best practices and respond to future challenges and opportunities. That is why our government is moving forward with measures under the budget implementation act to enable regular legislative reviews of Farm Credit Canada aligning with existing requirements for Export Development Canada and the Business Development Bank of Canada.

The process will be inclusive to capture the different perspectives in this incredibly diverse sector. We will engage farmers, industry groups and all other stakeholders who have a passion to see the sector succeed. By committing to regular legislative reviews, we will ensure FCC's continued ability to support farmers and agribusiness for generations to come.

Lastly, I know there has been a lot of talk around science and research, and I'd like to share that yesterday I participated at the Canadian Agri-Food Policy Institute, where we had a productive conversation and I was able to reiterate Agriculture Canada's commitment to science and research.

Thank you again for this opportunity. I look forward to the discussion and to this committee study before you.

[The Chair, Liberal, Michael Coteau]

Thank you very much, Minister.

We'll start with the Conservatives for six minutes.

[John Barlow, Conservative, Foothills, AB]

Thank you, Mr. Chair.

Thank you, Minister.

When the Liberals invoked the Emergencies Act, which was found to be unconstitutional by the courts, we were told initially that Farm Credit Canada did not share information on its clients and farmers who may or may not have participated in or provided financing for a peaceful protest.

With further research and ATIPs, we found out that FCC did indeed share a list of farmers and clients who may have participated in that peaceful process with the Liberal government. It is frustrating that we were told wrong information initially.

Is there anything in Bill C-15 that would ensure that FCC, as a Crown corporation, would not share private banking and account information with the government should they again be active in an unconstitutional crackdown on Canadians?

[Heath MacDonald, Liberal, Malpeque, PE]

As far as I know, I don't believe there's anything in the act in reference to that question.

It's a good point.

[John Barlow, Conservative, Foothills, AB]

Has FCC reached out to farmers whose names were on that list and told them their information was shared?

I would hope that there would be an apology or acknowledgement that it happened and that it will not happen again.

[Heath MacDonald, Liberal, Malpeque, PE]

I'm unaware, but that would be a good question for FCC.

[John Barlow, Conservative, Foothills, AB]

Thank you, Minister.

You did raise the issue about research, and you have now announced you are closing about seven agricultural research centres in Canada.

Your deputy also said that you have increased the funding to the on-farm climate action fund by an additional $300 million for $700 million in total. The entire budget of Agriculture and Agri-Food Canada's research is $300 million.

When the Auditor General audited the on-farm climate action fund, her comments were that there were no “measurable outcomes” or strategy to actually meet its expected contributions. There were poor results in management, “missing...performance targets for climate change mitigation” and no proof that any climate emissions or climate reductions actually happened.

Minister, would it not make more sense to use the limited resources that Agriculture and Agri-Food Canada has to provide those resources to actual research on the ground that shows measurable results, like minimal-till technology and new forage to reduce methane emissions in cattle? Would that not be a better use of your dollars, rather than throwing good money after bad to a program that clearly has no measurable results and does not work?

[Heath MacDonald, Liberal, Malpeque, PE]

I think the national policy framework would be a great place to initiate that conversation. I believe that money was announced prior to all of this.

I hear from farmers that it works in some areas, and I hear from some that it doesn't. Maybe a better analytic on the outcomes going forward, as we move forward with some of the changes that we're making, would be appropriate.

I can certainly charge ahead in that regard to see if there's something we should or shouldn't be doing with OFCAF.

[John Barlow, Conservative, Foothills, AB]

I'm going to pass the rest of my time off to my colleague, but lastly, I guess that would show the frustration.... You are making a significant cut to Canadian agricultural research, and it doesn't sound like you did your due diligence on where those dollars should be spent and where the best benefit is for the Canadian taxpayer.

Also, you've said to Canadian farmers, “We should have taken a look at this,” but you should have done that before you announced these cuts to Canadian agricultural research.

I'll pass my time to Mr. Epp.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Thank you.

Minister, you referenced FCC's participation in the $5-billion program. It was announced Tuesday, yet two of the panellists in the afternoon, in response to the question, “Is access to capital your number one problem?” specifically stated, “No, it's trade markets and regulatory reform.”

Our committee just finished a report on regulatory reform where you stated, regarding the PMRA and the CFIA, that there needed to be an economic lens put to their decisions. Those two agencies pushed back and said that their mandate did not require change.

When the CFIA makes a decision to shut down destination inspection services, which have significant downstream impacts on trade, competitiveness and food prices, are they not expressing that an economic lens should not be applied?

[Heath MacDonald, Liberal, Malpeque, PE]

It's a good question.

I think everyone around this table senses my frustration, sometimes, with those entities.

I can tell you that we're doing further work on that issue alone, and we may have more information to come in the near future.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Did your department do an economic impact analysis of exactly that decision, that cost benefit, including the projected increase in landed costs, dispute resolution delays, price markups by exporters and food waste and, if so, would you table it with this committee?

[Heath MacDonald, Liberal, Malpeque, PE]

No, my department didn't. That would be in the hands of the CFIA. I can tell you that we'll continue to work and push the envelope on the CFIA and the PMRA on issues that we feel have a major impact on farmers and ranchers in this country.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Are you aware of the implications of shutting down this for the potential re-implementation of PACA provisions in this country? It basically removes that possibility. Is this one way the government is expressing its lack of support for reinstituting PACA?

[Heath MacDonald, Liberal, Malpeque, PE]

I don't think there's a lack of support from AAFC or anybody else in government. I think we certainly recognize the importance of this industry and all the sectors involved in it.

[The Chair, Liberal, Michael Coteau]

Thank you.

I'll go to MP Harrison for six minutes.

[Emma Harrison, Liberal, Peterborough, ON]

Thank you, Mr. Chair.

Thank you, Minister, for being here this morning.

The world is changing quickly and our government is responding. Could you speak to our government's most recent trip to China and what kind of access we've enabled for our producers?

[Heath MacDonald, Liberal, Malpeque, PE]

The result of the China trip came upon us relatively quickly. I think we were leaning on an open door and we had the opportunity, with the leadership of our Prime Minister, to move forward a little more rapidly than maybe even anybody expected, including ourselves. We were ready and our industries and sectors were ready.

I think what we've seen is certainly trade diversification, but re-entering that market was extremely important to many sectors, including canola, seafood, etc., and we have to continue to build on that relationship. It's a people-to-people relationship.

China's not the easiest in the world to deal with; we know that. It's a volatile market, but it's something that our industries and sectors are certainly supportive of and very grateful for the outcome to date.

[Emma Harrison, Liberal, Peterborough, ON]

Thank you.

You mentioned in your opening that there will be legislative reviews of FCC. How frequently will those be done, and is there yet a framework in how they'll be administered?

[Heath MacDonald, Liberal, Malpeque, PE]

That's something that I think is needed. Every Crown corporation out there should have these reviews and it should be legislated.

There have been some issues raised by the opposition that I think could be challenged with these sectors during these legislative reviews. I think more communication and oversight is something I would be in favour of as a minister.

I'm not sure, Deputy, if it's one in five years.

[Lawrence Hanson, Deputy Minister, Department of Agriculture and Agri-Food]

The first such review will happen within five years of the act's coming into force, and then every 10 years thereafter.

[Emma Harrison, Liberal, Peterborough, ON]

Thank you.

I'm going to share my time with my colleague, Ms. Dandurand.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you.

Thank you so much, Minister, for being here.

You know that there are a lot of questions currently about research in agriculture. You also know there's a research centre in my riding, and people are wondering what type of research we are aiming at in the future. Can you explain your vision of research in agriculture in the upcoming years?

[Heath MacDonald, Liberal, Malpeque, PE]

I have two things.

One, the operational cost of these facilities is something that the opposition government of the past I think really let get out of hand. We have almost $700 million in deferred maintenance sitting on the books, and now it's getting close to a billion dollars.

My vision is to make sure that we do as much research as we've done in the past. It's not going to be easy. I sympathize with those affected by these closures and the people who work there. We're trying as much as possible to mitigate and minimize the pain. I've spoken to two ministers recently, one within the last few hours and the other within the last 48 hours, in regard to this and how we can work together to move forward on this. I haven't spoken to the minister from Quebec, but I will.

It's my vision to ensure that we do as much research as we've been doing, but it's also important to note that we need to involve the stakeholders in what research they want done going forward.

We live in a rapidly changing world. Research is a major component of everything I do. With every trade deal, every time I sit down to do something relevant to another country, research is on the table. Therefore, we can't lose sight of that and I won't lose sight of it as a minister.

I'll challenge my department to ensure that we're doing as much research as we were. It may be more coordinated and collaborative. I have had the opportunity to meet with three universities so far to talk about their solutions and how we can incorporate some of what we've done and what we're doing into their facilities. It's going to take a little time to iron this out, but we do have what we think is a year, so we'll move forward.