Thank you very much, Mr. Chair, and thank you for the invitation.
First of all, I would like to applaud this committee for responding very quickly to the livestock situation. I think you had the cattle industry and the hog industry here the other day. All of the other CFA members support 100% the ideas that the Canadian Pork Council put to you on how to maintain the industry and dig themselves out of the hole they're currently in.
We would urge both levels of government to look not only at administrative ease in trying to solve the problem, but at the specific ideas they have. Often it's very easy to just throw money at the problem, but we want to make sure we don't create an even bigger problem through potential trade action. So thanks again for listening to them.
I'm going to make some brief comments on three specific areas. One will be on the federal-provincial ministers meeting that happened last weekend. I'm going to talk briefly about the Growing Forward document that came out of Whistler. Then I will have a few comments about the excellent list of recommendations this committee provided on agriculture.
First of all, on the FPT meeting last week, we think it was fairly positive. We were very happy that the ministers agreed to create an extension for all non-BRM programming.
One of the biggest issues that came up at the industry ministers round table in Whistler was an emphasis on making sure there is no disruption in programs or program funding. The ministers clearly came to grips with that, and we'd certainly like to thank them for it.
We're also very happy they spent the amount of time they did discussing the livestock situation. Again that's a clear indication of how serious they realize the situation is. We applaud them for that as well.
It was very gratifying to see that the provincial agriculture minister stepped up to the plate when it came to disaster programming, or agri-recovery as it's going to be called. As you know, there was a problem with the funding issue. It looks like they stepped up to the plate, and we thank the federal minister for being able to bring them together on that one.
We initially expressed concern about regional disaster programs, but we've since learned that the components for a disaster program would apply to a national disaster as well. When it comes to a huge disaster there might be a difference in the funding, but that's fine as long as there's something in place for it to trigger very quickly.
The one concern we have--and I've talked about this before here--is that CFA members are still pushing for what we call an AgriFlex component in business risk management. That was mentioned in your list of recommendations as well. It is simply the flexibility to provide some federal dollars to provinces to develop a provincial-specific component that would address a regional- or provincial-specific need. It should still meet national objectives. But we feel there's room for something there that would add a very constructive component to the entire suite of programs. So we will continue to ask you for support on that. I know they discussed it at the federal-provincial meeting, and we hope that work will continue and something will come out of it.
When it comes to the Growing Forward document, again we were happy with the document that came out of Whistler. It included a lot of the elements that CFA members had put in what we called our Canadian farm bill. Rather than have three pillars, they have three circles. We think that's a positive illustration, especially when you overlap those three circles and come up with a little triangle in the middle. That's the integration we need in agriculture with all the different policies we have.
We call those three circles the public goods and services element, the business risk management element, and the strategic growth element. We think that the Growing Forward document contains enough flexibility for the industry to continue to provide input to the process and come up with a very constructive final next-generation APF.
I can tell you that the industry is ready and raring to go to work on program details. It's very anxious to get at that. We'd really like to see what the whole thing is going to look like on the ground, so we can't wait to start the next round of consultations.
Let me very quickly touch on two areas.
I know that we've talked at great length about business risk management, and so I'm not going to spend any more time on that, except to say that we were very happy that we got the contributory top tier in CAIS. That couldn't have come at a better time for the grains and oilseeds industry. The only problem is that with the diversity we have in Canada and the different sectors we have in Canada, that top tier couldn't have come at a worse time for the livestock industry. We hope, again, that the governments will look at the suggestion that CPC had on how to deal with that, because in the long term that top tier will be positive for all industries.
Very quickly on public goods and services, I believe you've all heard about the agricultural land use services initiative that we have. There are three or four pilot projects now across Canada. We're very positive about those. Just as an example, one of those pilot projects deals with the community, the municipality, and the provincial government recognizing that there are quite a few farmers in an area where there's a lot of water. They want to make sure that the water isn't contaminated, so they're providing some money for farmers to create bigger buffer zones than what the regulation calls for. That's a very positive thing in that it creates a strong crosswalk between farmers and what we would typically refer to as urban people. Surprisingly enough, only 11% of people living in rural areas are actually farmers, so it's important that we have a strong crosswalk between farmers and non-farm rural and urban people. What the public goods and services pillar is meant to do--and these pilot projects are a good example--is to help farmers do what they otherwise might not be able to afford to do because they can't pass on the added costs on to the consumer. It helps to achieve a social objective in that it works towards maintaining and improving Canada's natural capital. Using public funds to help farmers who provide a public good would also eventually decrease the load on business risk management.
So that's what we mean when we talk about public goods and services. They don't have to be only LS initiatives. They can be environmental farm plans. They can be food safety programs, because food safety programs are for the public good as well, in that they help us to brand Canada internationally. And so we think there's some positive potential there.
I won't mention business risk management again, but I would like to talk a little bit about the strategic growth pillar. In the last APF, there was recognition that we needed funding pillars. That's what the first APF was. There were very important funding pillars, but not enough time was spent on developing strategy to make sure that our industry grows and that it can achieve better profitability.
Aside from the usual things such as making sure we get better market access or profitable market access internationally either through the WTO or bilaterals, maintaining our ability to have marketing structures such as supply management, voluntary marketing boards, legislation for co-ops, or even single-desk selling--all these farmer empowerment tools--I would like to touch on two things that we started working on. They are certainly not a magic bullet for the entire industry but, we believe, an incremental step towards being strategic in agriculture. One is what we call the co-op investment plan. I don't think I've mentioned this to this committee before, but we looked to Quebec for the model. All of you know how co-ops work. Typically if they work everywhere else as they do in Manitoba, you have a $10 membership or a $20 membership in a co-op, but there's no incentive for you to invest any more in a co-op because you don't get any investment return.
In Quebec they've created a tax concession if you invest in a co-op, because that's the only benefit then that accrues back to you, other than, of course, patronage payments by either buying volumes or selling volumes through an input or buying co-op. So they've created a tax concession, and in Quebec $6 million worth of tax concessions has resulted in $36 million of direct capital investment in co-ops and a further $100 million investment by the co-ops in rural areas.
We're saying that if we were to apply that nationally, somewhere between $16 million and $20 million of tax concessions would eventually result in hundreds of millions of dollars of direct capital investment and the accruing of further benefits to rural areas. We think that would be a great model, at not too much expense, to create a stronger environment for co-ops, because we know that the co-op system can be a good farmer empowerment tool.
Secondly, I want to touch very briefly on what I talked about the last time I was at the committee. That's the “grown in Canada” idea. You mentioned that in your recommendations. We did the research. I believe we sent you a copy of the results of that research, which said 90% of Canadians would like Canadian products clearly identified; 50% said--and I know this is easy to say on the phone--that they would be willing to pay a premium for Canadian products; and 73% of those 50% said that they would be willing to pay a higher premium if they knew part of the premium went back to the farm gate. We've initiated a lot of work on this. We're going to create task teams now to talk to other farmer organizations that are not members of CFA. We're already working with Food Processors of Canada, with grocery distributors. We want to include everybody in this initiative and really start branding Canadian products in Canada.
I think I have two minutes left, Mr. Chair. Very quickly, I want to touch on three recommendations. By the way, the entire document, we think, was very positive.
One recommendation that you had was to create an advisory committee to look at agricultural policy. The response there says that they improve consultation by creating task teams, etc., but I have to emphasize the importance and the value of having a strong advisory committee for the federal government, for the federal minister. The advisory committee we had before brought together the Western Canadian Wheat Growers Association, the Canadian Cattlemen's Association, the Western Barley Growers Association, and the Canadian Canola Growers Association. That table, when it came to a consensus, had a powerful recommendation for the minister, which also then gave the minister help when he negotiated with provincial ministers.
Your recommendation 19 talks about companion programs. I've already mentioned that. We believe that's a strong part of where we need to go. Recommendation 9 talked about “grown in Canada”. Thank you very much for that one. Recommendation 17 talks about programs such as SDRM and SDPI. There I would only like to comment that the horticulture industry across Canada has come up with a very good national production insurance program, better than anything else that could be designed. We'd ask for your support on that.
Thank you very much, Mr. Chair. I'll stop there. I would be willing to answer any questions.