Evidence of meeting #51 for Agriculture and Agri-Food in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was saskatchewan.
Conservative
The Chair Conservative James Bezan
I wonder if you could hurry up and answer, because Mr. Easter's time has expired.
Executive Director, Saskatchewan Alfalfa Seed Producers Association
Yes, I guess the take-home points here would be, one, there is a forage seed industry as opposed to a forage hay industry. And the other is that, yes, the forage and grass seed industry should be treated as the other grains and oil seeds, special crops in these national programs, yes.
Bloc
Roger Gaudet Bloc Montcalm, QC
Thank you, Mr. Chairman.
I'm very happy to be here today. Monday we were in British Columbia, yesterday, we were in Alberta, and here we are with you today.
The federal government allocates billions of dollars to agriculture. Farmers don't appear to be happy, but from our perspective, you aren't suggesting any ways that we could help you. Many people argue that Ottawa is far removed from the situation and that public servants only go through the motions Do you have any solutions to propose to us? I'd like to hear what each person has to suggest by way of a solution. Each sector of the agricultural industry is very interesting and important, but each one has a negative side to it as well, whether it be drought or some other problems. What solutions do you have to propose to us, because we only hear about the problems, never really about possible solutions. I'd like each of you to suggest two ways of improving the situation so that everyone is happy. Anyone can go first. The floor is all yours.
President, Possberg Grain Farms Inc.
I've done everything I can. I make my point as clearly as I can and I make it heard whenever I can. I think this production insurance is a huge issue. It's a simple fix, and it's something that will eliminate the need for these ad hoc programs. Nobody wants to survive on these ad hoc programs. These ad hoc programs, even when they're unveiled, never go where they need to go. This production insurance, if it is properly fixed and managed....That is a huge problem, especially in Saskatchewan.
Second, instead of taking statistics and doing a statistical analysis, take real farms, do an analysis based on real farms. That's why in my presentation I used my farm's numbers. If anybody wants, I'd be glad to help in any way and provide my numbers. You have to take specific farms and do a specific analysis rather than a big broad statistical analysis, because that doesn't get you anywhere.
Farm Pure Inc.
Thank you very much for the opportunity.
Eighty percent of Canada's agricultural products are exported. We have to continue our drive to open markets and make whatever changes are necessary in the way we handle the entire spectrum of agricultural issues with that focus in mind.
Second, the reality is that the growth in the last 15 years has all been on the value-added side. The second largest manufacturing industry in the city of Toronto is the agrifood industry. Agriculture in this country is far more important that most Canadians give it credit for, because the image is the vastness of the land, which is, of course, extremely important; that is the essence of the resource.
Colloquially, I would say that since Saskatchewan has 43% of Canada's arable land, if you're looking at creating agricultural policy for Canada and it doesn't work in Saskatchewan, then it doesn't work in Canada. In the same way, I would argue that if you're looking at automotive policy for Canada, if it doesn't work in Ontario and Quebec, it doesn't work in Canada.
I think the needs of the international marketplace are what is going to drive agriculture, because that's what's doing it now. Anything that stands in the way of the producer and the global consumer has to be looked at very carefully.
I've already dealt with the issue of capital formation in a substantial way.
Conservative
The Chair Conservative James Bezan
Does anybody else want to comment on that?
Mr. Gaudet, you have one minute left.
Bloc
Roger Gaudet Bloc Montcalm, QC
Let me just say one thing. The automotive industry is based in Ontario, not Quebec.
Farm Pure Inc.
Yes, but before that, the industry operated in both provinces.
Bloc
Farm Pure Inc.
As far as I'm concerned, it's a question of common courtesy.
Bloc
Roger Gaudet Bloc Montcalm, QC
I understand.
Do you have any suggestions to make to help us resolve the problems in the agricultural sector? I put the question to everyone. Do you have any solutions to offer?
Executive Director, Saskatchewan Alfalfa Seed Producers Association
First of all, I look at the problem within our sector of just having recognition, at the federal level, that we exist. That tends to supercede other considerations. We're asking to be included in programs. We're asking for fair and equitable treatment, but we also believe that government policy should not be based on ad hoc handouts. It should be based on giving every farmer the policy platform with an ability to compete in domestic and export markets. We just want to be able to use our energy to succeed and not have problems with these programs standing in our way.
That's about all I have to say.
Conservative
Director, Western Cervid Ranchers Association
Our elk industry is being linked with the cattle industry. When there was a payout with compensation for BSE, the cattle industry got a payout and the elk were linked in with them. The program started in August. It started at 45¢ a pound for the cervid industry to a maximum of $125 a carcass when you butchered it. For me, with farming, I'm busy through the summer. You had to have your animals slaughtered before December 15, so we butchered about 150 mature animals and we put in our forms and sent them in, and they said the prices in the cattle industry had risen a little bit, so compensation had dropped. We ended up with 9¢ a pound for our elk. It was 45¢ in August, and when we slaughtered and got into the program, we ended up with 9¢ a pound, which was about $24 an animal. We had to have an abattoir do it, to register the weights and everything. It cost us $35 an animal to butcher them, $12 to verify the weight, and we got $29 an animal, because they averaged out around 325 pounds. They're not like beef cattle, which are heavier.
This is what I'm saying. We just want recognition. If we're going to be linked under agriculture with the cattle industry, we want to play with the same fairness as the cattle industry. We don't want handouts; we just want a little help to get our markets back. Once we get our markets back, we can survive. It was a good industry.
Conservative
Conservative
Larry Miller Conservative Bruce—Grey—Owen Sound, ON
Thanks, Mr. Chairman.
Thank you, gentlemen, for coming today. There are a number of questions I'm going to throw out and then let each individual answer them.
Roger, going back to the permit process between the Province of Saskatchewan and the U.S. that you talked about, I'd like to know if the same type of process applies in other provinces—for example, Alberta.
To Richard and Wayne, you both touch on the issue of recognition of your industries, and I'm sure there's innovation and change in agriculture all the time where new products come up. I'd like to hear your comments on what kind of process should be in place to recognize that. Should it be some kind of grassroots advisory board that reviews and passes on to government new crops that are out there that we should be taking a look at?
To Kenton, when you were talking about crop insurance, I think you were implying.... And you can verify this. Do you think that there should be some kind of national crop insurance program? I know there are inequities in Ontario, where I farm, as well. Crop insurance doesn't work. There's obviously a large difference between Saskatchewan and Alberta. Another question is do you think crop insurance should be mandatory in order to collect on government programs?
To John, I'd like to hear just a little bit more, if we have time, on what you talked about. I'm very interested in your tying research to health. I'm intrigued by that.
I'll turn it over to you, gentlemen, if you could answer them.
President, Western Cervid Ranchers Association
I'll answer you.
These permits don't refer to many provinces, because the only hunt farms that operate in Canada are in Quebec and Saskatchewan. I'm not sure what Quebec is doing, but we know what's going on here in Saskatchewan. If it's under provincial jurisdiction in Quebec, it would be nice to know how their system is operating. I believe there are a lot more hunt farms in Saskatchewan than in Quebec, though. I don't think there are too many down there.
Director, Western Cervid Ranchers Association
I guess when we talk about recognition with our industry, it's basically that before we ended up having the CWD, we didn't need any help from CFIA or anybody. Our industry was growing, and growing fast, and it was promoted by the federal government as a way to diversify. Now that we've run into the disease problem, what we need is CFIA or federal policies to endorse our industry back again, to give us confidence, to give Korea confidence that we've managed the disease problem well, that we have it under control, just like BSE, so that the borders can be opened back into the markets, into Korea, into China.
New Zealand has a very healthy market, into the meat market and the antler market. They deal strictly with Korea or China. Today, the product is selling for $140 to $150 a kilogram, which relates to about $70 a pound. We were at that price six years ago, and higher, because our Canadian product is superior to New Zealand's because of our growing season here—“northern vigour” is what they call it—the same as Siberia, in Russia.
This is what we need. We need the federal government to open those doors again that were closed on us. If they're opened again, we will survive on our own.
Executive Director, Saskatchewan Alfalfa Seed Producers Association
As far as the issue of recognition of an industry like ours, the forage seed industry, is concerned, we have a couple of ways to look at that. One of them is that 35 or 40 years ago, farmers were being urged to diversify in western Canada. Our growers, particularly the alfalfa seed growers in Saskatchewan, who've been involved in this industry for over 35 years, have often joked that we were encouraged to diversity, we did, and we've been paying for it ever since, through exclusion from various programs. The one that still bothers a lot of guys, believe it or not, is the WGTA payout. Farmers have a long memory, and we've worked through the different programs, such as AIDA, CFIP, and CAIS, to let government departments know about our industry and about the special parts of our industry.
For instance, in alfalfa seed production, we have an entire alfalfa leaf-cutting bee side that has to be considered under CAIS in reference margins. What we find is that it's very hard. There doesn't seem to be a system in place federally to recognize and gather information on an industry like ours. There's no continuity among the officials involved with these programs. These are some of the problems we've been having.
I don't like to talk only about our industry, because I know every farm sector is under problems due to long-term price fluctuation and that type of thing, but for us, the recognition is key. We're not asking for programs as much as asking for equitable treatment with other crop groups.
President, Possberg Grain Farms Inc.
On your first question, as to whether I'm suggesting a national program, yes, I am. I think it gives a lot more flexibility when there's one person, one office, that's making the policy and the programming throughout Canada, rather than each different province laying out theirs and whoever has more money to throw into the pot, their program becomes that much better.
I think it would also create some cost savings, based on some overlap that's done from province to province, and even through reinsurance. If you can throw all those acres into the pot, there'd probably be some savings.
There would be a way to do it. The CAIS program is done that way. I don't see why crop insurance couldn't be done that way. You could have regional differences based upon specialities or whatever. I don't know specifically how it would be designed, but yes, I would like to see that.
On your second question, as to whether it should be mandatory, I do think it should be mandatory in order to participate in programs such as CAIS and any other programs that are coming out, but I have a hard time justifying that, especially with the program that we have in place this year and in past years in Saskatchewan. We've always insured at the highest levels, and this year we're only ensuring at the 50% level, because the coverage just isn't there. Yes, we have had big payouts in the past, insurance payouts, but it's declining and the risk protection just isn't there.
Conservative