Hello. My name is Lincoln Wolfe. I'm the chair of the Manitoba Pulse Growers Association. I'm a grower from the Portage la Prairie area, where we specialize in edible bean production. Business risk management is an important component of our operation, as it is for all other producers in the province.
We do not feel it would be beneficial to replace the CAIS program entirely, but we support intentions instead to transform CAIS to make business risk management simpler and more responsive. The concept of margin-based programming has been the basis of several risk management programs in the past. Continuing to overhaul the existing program to adjust to current needs is superior to developing a new program that farmers would have to re-learn.
CAIS is not working for many Canadian growers because of time delays on processing the claims and time delays on payment. Long-term declining reference margins are also a concern, as is the difficulty of predicting payments, if any, once a loss is incurred. The lack of bankability is also a concern.
A long-term solution must also be developed, one that is bankable, sustainable, and predictable, given the divergent needs of farmers across Canada. Provincial governments are very diverse in their ability and desire to support agriculture. The federal government should encourage their provincial counterparts to participate to the fullest extent. The federal government has the primary responsibility over farm income catastrophes, especially when due to trade policies in other countries of the world. This is not an area that has purely provincial jurisdiction.
Any program should take into account Canada's WTO position and the expected outcome of an eventual WTO agreement. Programming should be as trade-neutral as possible, given our reliance on exporting production.
The impact of low commodity prices and crop failures is only heightened when the cost of production is also rising. With little or no leverage over crop input suppliers, support payments could end up going through farmers' pockets directly to input and service providers. Consideration should be given to how programs can be structured to address that reality.
Payments should not based on calendar year or income taxes, but rather compatible to the individual farm's year-end. Decreasing complexity would reduce the administrative burden, including reducing paperwork for producers and the cost of hiring accountants.
Increased bankability for producers: producers need the assurance of predictable support programs when they go to their lending institutions.
Addressing declining reference margins: Reference margins have declined significantly in recent years due to consecutive difficult production years. The Olympic average currently utilized is too limited to completely assess the profitability of a farm, and a more comprehensive approach should be utilized for assessing relevant reference margins.
Assessing structure changes based on land base alone is not reflective of other input costs, such as labour costs. The future of agriculture depends on making sure that there is a return to farmers' bottom line before pursuing opportunity. We need to continue support of research for the public good, including research in the area of genetics, breeding, and agronomics to enhance the potential for value-added opportunities. We need a business risk management program that works to ensure the industry will be sustainable.
Transportation is a serious concern for producers. It continues to be an area of concern to producers. Interruption of rail service and inadequate levels of service are reducing the ability of producers to service export markets and jeopardizing any market development and trade opportunities.
Without assurances that rail services will be improved, there is significant doubt that Canada's reputation regarding servicing markets will continue to degrade and will negatively impact on our ability to export. Rail service should be considered an essential service, or some of our support programs should compensate producers for the inability to market their product due to transportation.
Turning to minor use and pesticide harmonization, the accomplishments of our minor-use program and the minor-use research initiatives as well as the risk-reduction program are beneficial to producers and to the general public, making this an area that should continue to be publicly funded. The activities of the PMRA are important and should be continued. We are optimistic that the outputs and activities of the PMRA have a future in meeting the pest-management needs of Canadian growers, registering new chemicals, improving access to existing products, and moving towards the ultimate goal of NAFTA labelling for pesticides.
Regarding the environment, renewable fuels are an opportunity that pulse crops are uniquely positioned to provide benefits in, based on the suitability of the feedstock and the added benefit of their nitrogen-fixing ability.
Pulses are well positioned as a nutritious food source with significant health benefits. Public health cost could be reduced by encouraging growth in the production of functional foods and nutraceuticals with research funding provided for the processing and for enhancing the ability to produce healthy foods and their health-related properties.
Thank you very much.