Agriculture Committee on Nov. 20th, 2012

[The Chair, Conservative, Merv Tweed]

Good morning everyone. Welcome to the Standing Committee on Agriculture and Agri-Food, meeting number 57. Orders of the day are pursuant to Standing Order 108(2), a study of agriculture and agrifood products supply chain (grains and oilseeds).

Joining us today are: from the Canadian International Grains Institute, Rex Newkirk, director of research and business development; and from the Canola Council of Canada, Jim Everson, vice-president of corporate affairs. Welcome. I'm sure you know the drill. You have time to make a small presentation and then we'll move to questions from the committee members. Who wants to start?

Go ahead, Jim.

[Jim Everson, Vice-President, Corporate Affairs, Canola Council of Canada]

Good morning.

As the chairman indicated, I'm Jim Everson. I'm vice-president of corporate affairs for the Canola Council of Canada. Thank you for the opportunity to update the committee on the priorities for the canola industry value chain.

I'd like to begin by providing a brief overview of our industry, and then outline some of the key factors that affect the competitiveness of the canola value chain.

Of course, it all starts on the farm. Canola is grown by about 43,000 farmers in Canada, mostly in the Prairies, but also in the Peace River area of B.C. and as far east as the Maritimes. Canola acreage and production have been increasing in recent years, as producers have found increasing value and profit in canola.

This year 21.3 million acres were seeded in canola. Statistics Canada has estimated a total 2012 production at 13.36 million tonnes. It's been an incredible story of growth, more than doubling production in the last 10 years.

You may know that canola is Canada's most valuable crop, generating one quarter of all farm receipts and amounting to almost $8.5 billion to producers in 2011.

The confidence that producers have in canola is being matched by the whole value chain as new investments are being made in the industry. Since 2006, investments in new and expanded crushing facilities have close to doubled the crushing capacity. Some of the most recent investments include two plants in Yorkton, Saskatchewan, a new plant in Bécancour, Quebec, expansion of plants in Altona, Manitoba and Fort Saskatchewan, Alberta, and the announcement of a new plant to be built in the Camrose area in Alberta.

The seed developers are also investing in Canada with state-of-the-art breeding facilities and research facilities in Saskatoon and Winnipeg, and of course, producers invest constantly in upgraded machinery and equipment to improve production efficiency.

The canola sector is contributing to jobs and growth. Today the industry contributes more than $15.4 billion to the Canadian economy each year and generates more than 228,000 jobs.

To comment on the value chain, through the Canola Council, seed companies, growers, crushers, and exporters all sit together at the same table to set goals for the industry and strategies to achieve them. The industry is currently working on a strategic plan, which includes a goal of creating a sustained supply and demand for 15 million tonnes of canola by 2015. We are confident we will meet that target.

Producers deliver canola to a network of primary elevators and crushing plants in their area for processing. The vast majority of canola is delivered and shipped to export terminals, mostly off the west coast, by rail, where it is loaded on vessels for export. Canola is processed into oil and meal at crushing facilities and is shipped by rail or by truck to markets overseas and in North America.

Canola is crushed to produce oil for use as a premium quality vegetable oil. After crushing, the remainder of the seed produces canola meal, which is used as an animal feed. Canola oil is also an excellent feedstock for biodiesel production, as well, and can be used to reduce greenhouse gas emissions generated by traditional fossil fuel diesel.

Canola is the healthiest vegetable oil available. It has very low levels of saturated fat, no trans fats, and high levels of the beneficial fats, to help prevent heart attacks and strokes.

Canola meal is another product with a definite advantage over its competitors. It is high in protein, palatable, and has an excellent amino acid profile. Research shows that canola meal in animal feed can increase milk production in dairy cattle by one litre per cow per day.

That, in a nutshell, is the canola industry value chain. Together we provide the world with a superior, healthier product that contributes to economic growth in Canada.

Regardless of whether canola is exported as a whole seed or first processed into oil and meal, over 85% of the crop is headed for markets beyond our borders. We rely on a strong and steady flow of product to customers in the United States, Japan, Mexico, China, and 50 other countries. This reliance on export markets means that our industry needs to constantly innovate and work to remain competitive.

The federal government policy and programs are important to setting the environment for innovation, market access, and growth. Currently, Agriculture and Agri-Food Canada is developing a Growing Forward 2 policy framework and programs, and these will play an important role for canola in the future. As this framework is being developed, there are five priorities that the Canola Council can point to for future success.

The first is innovation. Canola is a product born of innovation. Innovation is what we must pursue to increase our competitive advantage. This is an area where teamwork through a value chain has been a big advantage. Over the past four years, the Canola Council has coordinated the canola and flax science cluster under Growing Forward. This approach has brought industry, government and university researchers together and pooled knowledge and resources to make the most of every research dollar.

The science cluster is funding a total of about $20 million of research over a five-year period. It includes over 80 researchers in more than 30 institutions across Canada, and some in the United States. Research is directed to canola oil and meal and to improved production. In the production area, the research amounts to about $10 million and involves over 30 projects.

Because of this cluster approach, our industry now has a greater understanding of how to increase yields and minimize disease, and we have more scientific evidence of canola's health benefits to drive oil promotion. Looking ahead to the new Growing Forward 2 framework, we are very strongly supportive of the continuation of the science cluster approach and continued public investment in innovation.

Another priority is open markets. Our industry thrives in a trading environment that's predictable, competitive and transparent. We support the federal government's ambitious trade agenda in key markets like Europe, South Korea and Japan. Canada's entry into the trans-Pacific partnership is good news for our industry. If Canada can make the most of these trade agreement opportunities and conclude some of these trade deals, producers and the industry will have more opportunity to grow the industry.

Also on our priority list is market development and promotion. This is another area where the federal government is an important partner. Our members and Agriculture Canada cost share a $2.4 million promotion program over four years that spreads the word about canola's health and culinary benefits in key markets around the world. We're looking forward to a continuation of this program in Growing Forward 2.

Intertwined with market development is market access. Both of these priorities demand attention. Our industry is very grateful for the strong support of agriculture Minister Ritz and the federal government in maintaining and building market access. The Market Access Secretariat, which is a cooperative approach of the Canadian Food Inspection Agency and Agriculture Canada, has been instrumental in responding to difficult market access issues, such as China's concerns with blackleg.

In recent years, the industry and government have maintained markets with a value of over $1.6 billion per year by working strategically to resolve issues that threaten market access. Our efforts allow the canola industry the opportunity to earn most from international markets and we hope to build on this progress in Growing Forward 2.

Finally, an important issue is science-based regulation. Transparent and science-based regulations are critical to ensuring predictable trade and food security both in Canada and abroad. Canada needs to set a strong example. We need to build on the understanding this approach works best for all nations. In this regard, we are hopeful that major trading nations will develop policies regarding low-level presence of genetically modified products, an important goal because of a growing number of GM crops in commercial production around the world. We support Minister Ritz's efforts to develop a Canadian LLP policy and to promote the adoption of LLP policies internationally.

To sum up, Canola is one of the most exciting sources of economic development in Canada in the years ahead, and to capitalize on that potential we'd like to stay focused on innovation, open markets, market development, market access, and science-based regulation. The canola industry has enormous potential to create economic growth, jobs and wealth for Canadians if we continue to do things right. The Canola Council brings together the entire value chain, and we look forward to a continued partnership with government toward these goals.

Thank you. I look forward to answering your questions.

[The Chair, Conservative, Merv Tweed]

Mr. Newkirk.

[Dr. Rex Newkirk, Director, Research and Business Development, Canadian International Grains Institute]

Good morning. My name is Rex Newkirk, and I'm, as mentioned, the director of research and business development at the Canadian International Grains Institute, which is an independent not-for-profit organization that provides ongoing technical support to buyers of Canadian field crops around the world and has done so for 40 years.

Thank you very much for this opportunity to present an understanding of the grain supply chain in Canada. Jim has already done an excellent job of providing information on the canola industry, so I'll focus my attention on other aspects of the grain industry. I will attempt to provide an overview of the grain supply chain with a focus on the issues that affect the system, and in particular, the role of the federal government in addressing these challenges.

Canada has a very efficient and effective supply chain. We have been providing grains to the world for over a century, and it continues to improve and change with globalization. The supply chain includes: plant breeders, who develop varieties that address ongoing needs; a variety registration system that ensures customers' needs are met by the new lines of grain; seed growers, who propagate the seed; farmers, who efficiently produce the grain; primary elevators that collect the grain and transfer it into the rail system; transfer elevators or terminal elevators that move the grain to the end customers; flour milling companies, which convert the grain into food ingredients; and finally bakeries, which produce finished products and deliver them to consumers around the world.

The Canadian system also includes a robust grain grading and quality assurance system through the Canadian Grain Commission. Canada provides technical marketing support, which helps ensure customers are informed of the valuable properties of Canadian grain, and this ultimately encourages them to purchase the product. Research is conducted that develops new products from the grains, which creates new opportunities for the crops in food and industrial applications.

The system in Canada is primarily a bulk handling system, as Canada produces a great deal of high-quality grains that are for the most part exported and must be transported in a very cost-effective and efficient manner. The system has been designed to primarily move a homogenous product and maintain purity and the quality of the grain so the customer ultimately receives the product that they purchased in a timely and cost-effective manner.

There have been numerous changes to the grain industry over the last two decades that have resulted in improved efficiencies. There has been a great deal of consolidation, resulting in larger companies that operate very efficiently and in a cost-effective manner. The old wooden grain elevators have been replaced with much more efficient facilities that collect grain from a wide region and efficiently transfer it to the rail system. Recently, as you are aware, the government made changes to the marketing system for wheat and barley, and now the farmers and companies are selling the wheat directly rather than through a monopoly.

The federal government has some key roles in Canada's supply chain, and as such, supports the best interest of the farmer, the Canadian public, and increases trade. This includes research into the customers' needs and ensuring the products that are produced and delivered are addressing these requirements. It includes investment in research and plant breeding, which results in germplasm and new varieties that address customers' and farmers' needs.

It is important that the federal government maintain investment in this area as there is insufficient investment by private companies in the area. Companies often foresee limited potential for return on investment in these crops because unlike genetically modified crops such as canola, where farmers buy seed and license technology from companies each year, farmers typically do not purchase certified seed for non-GM crops such as wheat, barley, and pulses. Therefore, the return to the plant breeder is relatively small and often too little to entice private companies to make this investment. Without a genetic investment, the advances in genetics will not be made and future production efficiencies are lost. Therefore, it is important that governments, in partnership with producers and private companies, make investments in the development of these genetics.

The federal government conducts research to ensure the grain grading system is efficient and meeting customers' needs and therefore maintaining market share. This is a wise investment as it builds customer trust and supports the entire supply chain.

The Government of Canada plays a pivotal role in ensuring food safety through inspection and oversight of pesticide usage. This system has on the whole been very effective, and the grain industry is well respected worldwide as a result. It must be responsive yet predictable, and so far this has been the balance often achieved in Canada.

The government supports market development through its trade commissioners and organizations such as CIGI that work one on one with customers to ensure they are supported and aware of the products that Canada produces. Farmers cost share this activity with government. This has been very effective, and in conjunction with the grain handling and safety roles previously mentioned, has resulted in Canada being well known for producing some of the highest quality and safest grains in the world. Canada is often the preferred supplier for grain, and long-term success of Canadian grains in the world markets relies upon continued investments in this area.

As you are likely aware, during this time of transition of the grain industry, CIGI made a commitment to maintain the level of customer care, knowledge building, and brand maintenance, and in partnership with the federal government, we have been working diligently to keep that promise.

The Canadian government funds research into innovation that can create or support future markets. Typically, basic research is funded that can identify new products and opportunities. Whenever possible, CIGI uses this research to support customers around the world. This is one area where CIGI believes additional attention from the government is required.

Canada has invested heavily in research, but many express frustration that too few of these research projects become commercially relevant. It is CIGI's experience that the issue is not that the research is not of high quality, but that the funding often ends at the discovery stage and does not take the research and development far enough.

For research to become an innovation with commercial successes, it must be demonstrated well beyond the initial discovery stage and be promoted at a commercial level. Commercial customers are not willing to utilize new products unless a long-term continual demonstration of their production and benefits is supported. To ensure Canada reaps benefits from the research, it is critical that new innovations be demonstrated at a commercially relevant scale directly and consistently with potential users.

CIGI, food centres, and other agencies that are capable of demonstrating commercial pilot-scale production and have long-term trusted relationships with companies are well positioned to help move this research to commercial reality. However, this requires a long-term and conscious effort of government investment to be truly effective.

In an attempt to create awareness of the economic possibilities from effective innovation in agriculture, CIGI is planning a two-day event in Winnipeg in January, where four current examples of innovation will be discussed. During this time, the participants will meet with innovators and be able to discuss government's and industry's role in innovation and develop clearer plans to success.

In summary, the grain supply chain in Canada is very efficient and is one that all Canadians should be proud of. The investments that the Canadian government makes into the supply chain, including plant breeding, grading, food safety, technical market support, and market access, have been very effective and will continue to be so in the future.

[The Chair, Conservative, Merv Tweed]

Thank you.

Go ahead, Mr. Atamanenko.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Thank you very much, gentlemen.

Mr. Everson, you mentioned low-level presence. I'd like some clarification on that.

It's my understanding that the canola industry is successful. You've developed markets and you export to certain countries that accept canola, but you cannot export to those that do not accept GM canola, I would imagine. That's the state of the world today.

I don't understand how low-level presence affects canola, because either there's a high-level presence or there's no presence. Are you saying that if there's contamination of other crops, such as wheat or any of our other exports, there should be a certain amount of low-level presence because there's a possible contamination from other genetically modified crops, such as canola?

I'd like clarification on that.

The other thing is there are certain commodity groups and certain people who believe that before any new crops are released—for example, in B.C. we have the Arctic apple that's scheduled to be released, or alfalfa in eastern Canada—we should be looking at the potential of market loss. That should be a criterion in approving any new genetically modified crops, for example such as they use in Argentina. I know that in British Columbia, the Union of British Columbia Municipalities passed a resolution saying it does not want any GM tree fruit product at all in the province.

Both of you, please, if you have any comments on my questions, I'd really appreciate them.

[Jim Everson]

Those are a couple of very good questions.

The issue around low-level presence is the possibility of the contamination of shipments that are qualified, that are approved, by low-level presence genetic traits that are not qualified.

If I could define “low-level presence” for this discussion, it is the unintended presence of products, GM traits, that have been approved in the market that's exporting, or in another market, but have not been approved in the market that you're importing into.

Most countries have very specific sets of laws and regulations to ensure that any product that's genetically modified coming into their territory is approved beforehand, and it's approved by a science-based process that uses codex internationally accepted risk-based standards to approve a GM trait.

In the canola industry, we ensure that before a product is introduced to the Canadian farmer, that product is approved in all of our major markets through this kind of science-based process.

The challenge with low-level presence is that there's a large expansion of the number of biotech products being produced around the world by a number of different countries and for different commodities. Acreage is going up, and the number of products is going up. The challenge there is that the process for approving these products is not universal around the world, and in some markets it's very slow. Therefore, you'll end up having some products approved in some territories but not in others. It's called asynchronous approval.

We will ship only products that are approved to our major markets. The concern is that we use conveyance means, railcars, ships, and so on, that are used for all products around the world. You may have a GM trait in a vessel. The vessel is used, and then it empties that commodity. We put canola in that ship and send it over to a market, and there are traces of an unapproved trait in our canola supply.

Canola is a GM crop, but it's not just canola. It's an issue for all Canadian exports, for example, wheat and barley. If you have any kind of unapproved trait found in those kinds of vessels, in those kinds of shipments, that will disrupt trade.

It's important to make the distinction that the products we're talking about are all approved in one or two countries already using a codex-based process, a risk assessment and safety process, at 100% exposure. In every case in which we're talking about LLP, we're talking about a product that has been approved by a competent authority using codex-based regulations of safety assessment. We're not, in any of these circumstances, talking about a product that is not already approved using those standards.

There have been examples. One example would be a vessel shipping soybeans to a market. The vessel had dust in it from biotechnology corn that had not been approved in that market. There was a very low-level presence. The product had been approved under a science-based risk assessment in another country. It's unintentionally there. It's just been picked up because of dust in the air around a port. That stopped a vessel that's worth millions of dollars—some of these vessels are worth $20 million or $25 million—really, in our assessment, for no good reason. The product is not a threat to health or animal safety. It's been approved by a science-based process, and it's not intentionally in that shipment.

Another part of the story is that some countries are developing new biotechnology products, and they expect that they will be used only in their domestic territory. They're creating that biotechnology product to be used in their country only, and they're not seeking approvals from export markets, but if that product were to end up in one of our shipments, it could contaminate the shipment and cause some trade disruption.

[The Chair, Conservative, Merv Tweed]

Thank you. I have to stop you there.

Mr. Lemieux.

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

Thanks very much, Mr. Chair.

Thank you to our two guests today. I really enjoyed my visit to CIGI. Actually, I'd recommend to my colleagues that if they're ever in Winnipeg to visit CIGI. It's a real educational experience in terms of the services that they provide, particularly to international customers.

I want to ask some questions regarding canola. We seem to be focusing on the canola side.

Mr. Everson, you were mentioning that 85% of canola is exported. I'd like to know where you might see choke points that inhibit, slow down, or somehow restrict the export of canola. You mentioned that sometimes it's exported as an oil and sometimes it's exported as canola itself, not crushed.

Are there enough crushing facilities in Canada? Rail support might be something you could talk about. Does the industry get enough support from the rail sector to move product to the ports, and that type of thing?

I wonder if you could comment on that, please.

[Jim Everson]

I think by and large in terms of the infrastructure, and this is an important comment on the value chain, by working and pulling together around the Canola Council table and setting goals for the future, the industry has been able to work towards those goals in a collective manner.

As production has increased, farmers have grown more canola. Infrastructure and facilities have gone along with that. There has been a doubling of our crushing facilities, so I think we do have adequate crushing facilities and there's more expansion of that happening.

The rail system fills and unloads the elevator system something like five or six times in a year. It is a highly efficient transportation system. I think we have good throughput.

Most of those issues around physical infrastructure, I think, can always be improved, but they are in pretty good shape in Canada.

I think a lot of our issues in terms of choke points have to do with regulations, with ensuring that we are able to bring products to market and put new seed technology in the hands of farmers in an efficient way. In our case, being able to do that means relying on other countries to approve those biotechnology products in a timely manner.

There are market access issues. Increasingly trade disruptions come up as a result of sanitary and phytosanitary issues and so on, such as blackleg in China. We have to respond to concerns and be able to address them to make sure we keep the markets open.

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

Okay, thank you.

You mentioned value chain round tables a number of times. Do you find that having a value chain round table is a positive contribution to the canola industry and its supply chain issues?

[Jim Everson]

Yes. There's a grain industry round table, and it has been very helpful. The model there is that the industry works closely with government officials and they develop policies together so there is an understanding of what the issues and challenges are. There's understanding from the industry perspective of what the limits of government are. It's a way of rolling up sleeves and working together.

I think that kind of cooperation is really important for Canada. For the canola industry, we are a large crop in Canada, but internationally we are not a large crop. Soybeans, rice, and cotton are all bigger crops that attract more investment and research.

In Canada I think we need to work very closely together to make sure we are competitive against those bigger commodities.

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

Rex, let me ask a question about CIGI.

When I was visiting CIGI in Winnipeg, with the change in the marketing of grain here in Canada you were explaining to me that you also had to change the way in which you approach customers. The mandatory Wheat Board is no longer there, although the voluntary Wheat Board is there. I'm wondering if you could explain to us what kind of successes you've had and what kind of changes you've made that keep you in the supply chain that way in offering your services to customers.

[Dr. Rex Newkirk]

That's an excellent question.

As you mentioned previously, the Wheat Board was our primary source of direction as to which customers to deal with. As of March 31 of this year, the Wheat Board stopped funding market development and therefore providing that direct support to us. Now, in place of that, we have two committees of a group of farmers that are represented across the Prairies.

We also have representation from the grain industry through the Western Grain Elevator Association.

We look at what markets we should be addressing, what the customers' needs are, and then we take those things before the committees. Our last meeting was last week. We ask whether these are customers they feel we should support. We have carried on and we are probably busier now than we have ever been, because customers are looking for that support.

They want to know if we still have the same quality assurance system, whether we still have access to the grain, and who they can buy it from.

We're in there and we're doing that. Our team just came back from Southeast Asia. It gave out the new crop information. They will be heading out again in about a week to carry on in another region of the world.

That was the primary change to our model: whom we work with. These committees have been providing that change. We're hoping that in the not-too-distant future, although we recognize that it takes a while for it to come around, we will have an organization like the Canola Council in the grains industry that will provide that direction and be that organization we can work with. In the meantime we are diligently out there working and using the knowledge we can obtain and using those committees to direct us.

[The Chair, Conservative, Merv Tweed]

Thank you.

Mr. Valeriote.

[Frank Valeriote, Liberal, Guelph, ON]

Thank you, gentlemen, for speaking to the committee today.

Last week when we were on our break, I had an opportunity to read an article by Alina Konevski in the Peace Country Sun. She was talking about the advances in evolving seed production with new-traits canola seed production, which is marvellous. She also spoke about the lack of value-added industry really being created, at least in Peace Country.

It got me thinking. Why is it that as Canadians, we tend to export much of our commodities, whether it is oil or canola. As you said, we export most of our canola. You spoke of animal feed and biodiesel being a natural by-product of crushing.

I'm just wondering, Jim, if you could talk to us about the challenges or impediments to a more value-added industry growing as a result of our obviously growing canola industry.

[Jim Everson]

That's a good question.

First of all, I think I'd point out that we are doing a lot more value added in Canada with the expansion of our crushing facilities—really, a doubling of our crushing facilities—over the last many years. We're now doing more value-added crushing of the seed in Canada and producing oil and meal. Oil has a higher value when it's on the export market, so if we're able to crush in Canada and ship oil, we're contributing to the economic development that canola produces. We're also now in the process in Canada—it's a nascent kind of industry—of building more biodiesel facilities, where we further process the oil into biodiesel usages.

There's more value added going on in Canada now. I think we have had a tradition of growing, and we were the experts at selling seed, but there is a transformation going on in Canada, partly towards more processing in Canada. I think some of the issues are that in some of the markets we work in, some of our major markets, there are situations where you have tariff escalation. There are zero tariffs on seed and then you have high tariffs on oil. Those policies are in place I think mostly to keep the value added in that market.

That's part of why we are supportive of the free trade agenda, in that you can go to some of these markets and negotiate for tariff parity across our products so that we don't have a difference between seed and oil. That would make it much more competitive for our oil processors, who are investing in this country, to be able to sell oil to that market.

[Frank Valeriote, Liberal, Guelph, ON]

You spoke of rail service. I'm wondering if you could tell us, on behalf of the people that your organization represents, the status of the rail service review, as you see it, and, in regard to the impediments from the absence of the implementation of the recommendations, about the impact that's having on our canola growers and the proper transport of canola.

[Jim Everson]

Actually, I'm not very close to the rail service review. The way we approach issues in the canola industry, we are focused mostly on the growers associations. I don't know that I would comment too much on that. I would encourage you, if you want to know more about that, to ask the Canadian Canola Growers Association, the producer group, to appear before the committee.

[Frank Valeriote, Liberal, Guelph, ON]

Okay. There will be some others who I can ask in the next hour.

I do have another question. What are the biggest challenges facing the grains and oilseeds sector right now? You've told us about the progress you've made. What are the absolute challenges you face that the government could help you with?

[Jim Everson]

First, I think, is innovation. It's the public investment and working well together on research and innovation. We constantly have to innovate with the product. We have new specialty canola oils, high-oleic canola oils that have special characteristics for the food processing market, which are a real innovation and are driving the industry now. That's a result of constant investment and reinvestment in the industry to stay competitive.

As I was saying earlier, the private sector in canola is spending somewhere in the neighbourhood of about $100 million on canola research in Canada currently—the seed companies—and you can compare that to the North American investment in soybeans, which would be in the range of $500 million to $600 million.

[Frank Valeriote, Liberal, Guelph, ON]

Are you concerned that there's a reduction in investment in public research?

[Jim Everson]

We're interested in being sure there's a robust public investment and that we work together, as we are doing through the science cluster, to ensure we're making the best use of those dollars.

The other element is rules-based trade and science-based regulation. In the canola industry, we have 85% to 90% reliance on exports, and to a fairly small number of large markets. If there's any disruption in any of those markets for any reason, it can have an impact on canola farmers pretty quickly. We're very keen on being sure that we have predictable, transparent, science-based policies, regulations, and trade rules around the world.

[The Chair, Conservative, Merv Tweed]

Thank you.

Mr. Payne.

[LaVar Payne, Conservative, Medicine Hat, AB]

Thank you, Chair.

Thank you to the witnesses for coming.

I need some clarification, Mr. Everson. Did you say that 25% of income for farmers now is from canola?