Thank you.
I will provide a brief introduction, and then Lincoln Wolfe, our president, will provide his comments.
The Manitoba Pulse Growers Association is a producer-funded association representing producers of pulse crops including dry beans, peas, soybeans, lentils, chickpeas, and fava beans. The acreage of pulse crops peaked in 2002 with over 620,000 acres, and the five-year average is over 500,000 acres in the province. The major pulse crops grown in Manitoba continue to be dry edible beans, field peas, and soybeans.
On behalf of our association, the key areas of focus that we pursue include research, market development, and policy representation.
In the area of research, approximately 50% of our annual budget is provided for research activities, including areas of agronomics, pest management, breeding initiatives, and value-added opportunities. We continue to encourage the federal and provincial governments to support these essential activities.
In the area of market development and access, we have focused on bean markets in Cuba and Mexico, as well improving relations with the U.S., including participation in the NAFTA meetings.
On policy, MPGA has addressed various issues including production insurance, safety nets, trade, and other regulations that impact on the ability of pulse producers to produce their commodity.
As a final initiative, member relations is key, aimed at providing relevant information to producers about the activities of the association and how they may impact on farms.
Business risk management is a necessary part of production, although not one that producers prefer to rely on. Commodity prices are steadily declining in real terms over time, and this has recently been compounded by the strength of the Canadian dollar. Safety nets provide producers stability from highly variable commodity markets.
It's important to note that farmers across the globe have access to a series of different tools to manage risk. One of the options to consider is that Canadian producers need a similar set of tools as American producers, given our close proximity to our U.S. counterparts.
Production insurance is vital as a risk management strategy. The linkages between CAIS and production insurance must not penalize the farmer for utilizing production insurance, as was mentioned by other members here today. Price determination for coverage levels is also a concern. Inaccurate forecasting significantly impacts on coverage levels, but it also may have impact on seeding intention, which we would like to avoid.
Market development and safety nets have been working together to help build the industry. The market development Initiatives build a long-term strong industry, and safety nets provide the stability until the potential of market development can be realized. Safety nets provide stable supplies for processors, and dramatic swings in prices typically cause large shifts in supply, which could jeopardize the building of infrastructure for those processors.
Trade is critical in general for agriculture in Canada, but it is especially critical for pulse crops because we export 85% of our production. Canadian producers require freer, fairer, and open international trade for the long-term stability of the industry. Unilaterally reducing Canadian business risk management programs prior to other nations will definitely have a negative impact on Canadian agriculture.