Good afternoon. I will make half of the presentation in French, and Mr.Tuinema, the President of the Coalition, will make the other half in English.
Thank you for giving me the opportunity to tell the committee about this issue.
The Ontario-Quebec Grain Farmers' Coalition represents more than 41,000 grain and oilseed farmers in Ontario and Quebec. In 2005, 6,000 Ontario grain and oilseed farming families drew a household income of less than $25,000, according to Statistics Canada. Grain and oilseed producers need the predictability of an income-support program that is paid out when prices fall below an agreed-upon floor price per bushel. More than 1,250 Ontario farmers have left their family farms because they were unable to cope with the prospect of declining world prices. We do not have the statistics for the number of Quebec farmers who have put an end to their activities.
Unfair international subsidies mean that Canadian grain and oilseed producers face a consistently declining income. They need an income-support program that is triggered only when prices fall below an agreed-upon floor price per bushel. This would ensure Canadian G & O family farmers can remain viable and competitive until WTO subsidy issues are settled.
CAIS is simplistic. It does not meet the diverse needs of Canadian farmers. Canadian farmers produce more than 200 different commodities across 10 provinces. Saskatchewan farmers can grow up to 15 different field crops. Ontario and Quebec farmers, because their climate is different, can grow only three major field crops: corn, wheat and soybeans. They also grow some barley and some oats. This shows how diverse and large a country Canada is, and why it is necessary to have different types of programs.
CAIS is an income stabilization program that penalizes grain and oilseed producers. It benefits price-cyclical agricultural sectors, but grain producers need an income-support program to provide income predictability in spite of persistent income pressures due to unfair international subsidies. In recent years, or at least, since 1995, grain prices, even though they increased in 2006, have been steadily dropping. There were peaks and valleys, and that is why CAIS did not work.
CAIS is based on production margins, which penalizes grain and oilseed producers, because they face consecutive years of low income and are thus ineligible to trigger payments under the CAIS program.
I will now turn to the President of the Coalition, Mr. Tuinema, who will finish the presentation.