Thank you very much, Mr. Chair.
I was asked late last week whether I could bring some of the former NSNAC members with me. You know what most farmers are doing this time of year, so regrettably, several of the ones I invited couldn't make it. But I do have Terry Betker with me, who was an industry person from NSNAC, so he can certainly answer questions as well.
I would also like to preface my comments by saying we support 100% what Ms. Dewar has talked about. We are signatories to that science and innovation document. In fact, that science and innovation document fits very well into our strategic growth pillar in the Canadian farm bill, so I would like to express and emphasize that support.
CFA members hosted a farm income symposium several years ago, and at that symposium they decided to start looking at solutions, at how we can develop policy that will create an environment within which farmers can be successful. We decided not to talk about how much more money we needed. We decided not to talk about redesigning business risk management programs at the time, but rather focus on solutions. That's exactly what they did for two days. What we came up with is what we call a Canadian farm bill that has three pillars. It's not meant to be in contradiction to the current consultation work that's going on for the next generation of the agricultural policy framework, but instead to give members an opportunity for input and to submit the ideas from the Canadian farm bill into the process that's going on in developing the next agricultural policy framework.
They recognized--and this emphasizes the strategic growth pillar we have--that while the first APF was an important collage of funding programs, that's really all they were. We didn't spend enough time on strategy, on what are some strategic things we can implement to create policies that will make us more profitable.
As I said earlier, we divided the farm bill into three pillars. As the chair has already mentioned, we were here talking about business risk management. We are continuing to do the work on that, together with the minister. There has already been some very good work done. We continue to work on the catastrophic disaster component, production insurance, as well as a definition of supply management as a business risk management program. We look forward to continuing that work, as well as the details on the top tier that the minister announced a while ago.
The other two pillars that we have in the Canadian farm bill are a public goods and services pillar and a strategic growth pillar. I'm not going to ask you, of course, to have us read the documents that we put in front of you, but let me first read the vision that members decided to develop for agriculture. It kind of prefaces our entire Canadian farm bill and all three pillars.
The vision is that Canadian agriculture and agrifood be a vibrant, dynamic industry where all partners of the production chain have the opportunity to succeed, be profitable, and are world leaders as solution providers for the world's economic, environmental, and health objectives.
Within that context, let me talk briefly about the public goods and services pillar. For that, I'll go to the four principles that we set for the public goods and services pillar: one is sustainability of public good initiatives. That basically says if farmers don't have an ability to pass on additional costs for programs that are provided for the public good, if they can't pass those costs on to the marketplace, then they need the public to help them pay for some of those costs.
Another principle is continual innovation.
Third is policy coordination.
Last is integrated management systems. All of you who are farmers around the table know that farmers have an increasing number of system management documents that they have to fill out, and we need some sort of integration there.
To drill down a little deeper on public goods and services and ecological goods and services, we'd like to continue the funding for the environmental farm plans we got funding for in the first APF. They're important. They have helped farmers set indicators. They have helped farmers measure and analyze what they are doing within the context of environment on their farms. It has helped them identify areas where they need to continue to improve.
Ecological goods and services--you're all familiar with the ALUS program. Again, we believe that incentive programs can really help farmers do things they otherwise could not afford to do for the environment. It continues to keep that land in the hands of farmers, but they can implement an environmentally friendly program.
It's really a win-win-win for governments, producers, and the public. It's a win for the public because, again, it helps maintain and improve Canada's natural capital. It's a win for governments because eventually, we believe, it would decrease the load on business risk management. And it's a win for farmers because they would be able to do things that they otherwise could not afford to do.
We believe we need to spend a lot of time and energy on a renewable energy strategy. We think there's a lot of potential for farmers within renewal energy. We' like to develop a strategy there.
We would also like to get a real handle on carbon credit trading. We think there's a potential here to create a revenue stream for farmers. We know that, say, in the U.S., farm organizations are already publicly trading carbon credits for their members. We think we need to move fast on this one and create regulation so there is some stability so we can address liability issues and so on. Then we can create that revenue stream that we think is there for farmers for the contribution they have made to carbon sequestration.
Lastly, we talk a bit about the strategic growth pillar. Again, this is something we thought we needed to spend more time on when we developed the last agricultural policy framework. It can include things like bio-energy. Are we developing competitive policy in the bio-energy field? Are we making sure, say, in the biofuel industry, that production of our feedstock will be competitive? Will we be competitive at the manufacturing level? Do we have adequate criteria or standards for farmer ownership at the manufacturing level so they can accrue benefits from that industry as well?
We have four specific suggestions. One is to develop Canadian agricultural business development and innovation centres across Canada. For farmers to be competitive and to avail themselves of opportunities, we feel that we need cutting-edge information for farmers so they can be where they need to be at the right time.
I've often used this analogy in the last little while. When Wayne Gretzky was asked once why he was so good, he said that he learned to go where he thought the puck was going to be. It wasn't where the puck was or where the puck is, but where the puck was going to be. And we believe that these innovation centres across Canada could help farmers do exactly that: be where the opportunity is going to be.
Second, in addition to maintaining the marketing structures that are empowering farmers, we believe there's a lot of potential for helping farmers invest in co-ops and for developing co-ops for farmers so they can build alliances with each other as well as with downstream industry.
We would really like to look to Quebec for an example on co-ops. In Quebec they have what they call a cooperative investment plan. It has leveraged $6 million in Quebec in the way of tax deductions. It has leveraged a lot of capital investment in co-ops. That, then, has resulted in more investment, as much as $100 million in co-op investments, in rural areas. We think the federal government, say, for a mere $20 million, could leverage hundreds of millions of dollars in investment in co-ops and the resulting investment in rural areas. We think that would be an excellent way to empower farmers, without a huge cost to the government.
We also emphasize the need for more public research. Research is very important. Private research is important, including proprietary rights for those researchers. But we also believe we should have more public research. And we should make sure that the results of that research get into the hands of farmers and that they can get some real utility out of the research results.
Lastly, some of you may have already heard about the green label initiative we started. It is to identify what the Canadian public would be willing to do to buy Canadian products. We talk a lot about branding Canadian products internationally, but we feel we should also brand Canadian production domestically. We found that 90% of Canadians would be willing to buy Canadian products if they were identified as Canadian products, and almost 50% said they would be willing to pay a premium for those Canadian products if they knew the premium would go to farmers.
So we believe there's real potential there for us to identify Canadian products, say, through a green label that would identify that it is Canadian produced, that it is produced within very high Canadian food safety and environmental standards, and that farmers have received a fair price.
I'll briefly hand it over to Terry Betker, who will talk a little about renewal, which again fits very well into our strategic growth pillar.