Good morning. I thank you, Mr. Chair and members of the committee for giving me the opportunity to speak this morning. I am here as an individual. I am an agricultural producer, a dairy farmer. I co-own a dairy farm with my brother. I have two sons who are 25 and 29. They love agriculture they live and breathe it. However, getting them settled in the agricultural world is a very difficult task.
I am also the mayor of my municipality, and reeve of my regional county municipality, in Nouvelle-Beauce. I should mention that it is the second-largest agricultural RCM in Quebec, after the RCM of Maskoutains, in the Saint-Hyacinthe region. Chaudière-Appalaches is a very agricultural area. The next generation plays a very important role for the future, if we want to continue to see this agricultural industry develop.
I hope you will forgive me if I start by saying that I believe in maintaining supply management, in dairy farming, among others. It exists and it is unavoidable. Supply management ensures the durability of the productions, such as eggs or poultry. Other productions could have something to gain by changing to this type of management.
I am not against the globalization of the markets. However, when it is a matter of feeding the planet, we must pay attention. Mr. Groleau's comments earlier were right on the money and I agree with him.
We need only look at the European Economic Community, which stopped using it a few years ago, to see how important some kind of management is. We need only look at the decreased prices being paid to producers. There is no way we can think of bringing in strong and competitive new producers if that were to happen here. I have friends who are producers in Switzerland, Belgium and France, and they have a hard time recruiting replacements, because of all the problems that currently exist in Europe in the dairy farming sector.
We must also be careful not to destabilize the regions by changing programs or policies, or simply by abandoning a policy that is there to support them. The vitality of our regions—I am saying this as a mayor—depends greatly on the vitality of its agriculture and agri-food processing industries. Agri-food processing in our regions is very important to our communities' economies.
I still believe that for a country that is so strong, the agriculture must be as strong as possible and must be supported by a development plan and by better suited policies. A medium- and long-term agricultural policy would be very important in helping to bring in the next generation.
I would also like to mention some other things to think about. We could have lower interest rates for new entrants. There is currently a commitment from the Financière agricole du Québec, but could we not see lower rates supported by Agriculture and Agri-Food Canada? That could be significant, because starting up an agricultural farm, whether it is dairy or other, requires a considerable amount of money. Lower interest rates could make a difference.
With respect to increasing support for new entrants, there is the AgriInvest program, which helps farmers for five to ten years. The current contribution is 1.5%, but it could perhaps be increased to 3% or 4%. Also, Agriculture and Agri-Food Canada could simply take on the producer contribution for new entrants, for young farmers, for the first five to ten years after they start their businesses.
I would also like to mention another important thing regarding assistance for family transfers, a reality that I live every day. I own a family business with my brother. We both have children who want to get into farming. We want to expand this business. We do not want to see it grow, but perhaps split. That requires a considerable contribution from the parents. Increasing the capital gains exemption when selling the business to children could make a huge difference.
We should also consider adjusting the taxable value of businesses, for example, finding a happy medium between the actual value at the time of sale and the market value.
We know it is impossible to think about selling property to our children at market value. No one is able to buy the farm at that price. In dairy production, no young person would be able to pay for the quotas, the land, the herds.
One of my children has tried twice to get financing. Even if I try to support him, it is not possible, it will not go through. My other son was able to start his own farm, a business separate from our own, but we had to provide a considerable amount of support from the assets of the business that I share with my brother.
I think some serious thinking needs to be done if we want to bring in the next generation. I will stop there. If you have any questions, we can discuss them later.
Thank you, Mr. Chair.