Agriculture Committee on Nov. 29th, 2018

[Lawrence MacAulay, Liberal, Cardigan, PE]

First of all, thank you very much, Eva.

It's a vitally important issue. Of course, I was a farmer myself, and we would be kind of reluctant, man or woman in the agricultural sector, to indicate that we had problems.

We all have problems. The first thing is to make sure that there's nothing wrong with telling people you have a problem. There's nothing wrong with making sure you have places to go to talk to people.

That is why we have initiated a program. It's through Farm Credit, and they've addressed the program dealing with this. With 4-H, there was an announcement made here, and another announcement at the same time with Agrivision. We want to make sure that farmers understand.

There's a lot of money involved in farming. You have to spend a lot of money and hope that you get it back. That's simply how it is. I know what it's like. I was asked a number of times, “Are you wise to cover 100 acres of land with potatoes and expect to make some money?” You just don't know. There is a lot of pressure, but I would let my representative from CFIA.... Oh, I don't have that representative here, so I guess I won't be doing it. I'll have to answer it myself.

The fact is that I'm very supportive of this issue. It's a very important issue. Working with 4-H, Farm Credit and the provincial government, we have established lines and centres where people can go in order to address problems. It's a great stress. Quite simply, being at it myself, I know that you owe money. It takes a lot of money.

It's interesting that Farm Credit is involved in this. I've had loans from Farm Credit myself, and I had to pay them back. I can tell you that it can create heavy stress. It's not simple. It's hard. Things happen in the agricultural sector. You can owe money, and then, all of a sudden, you have a storm. Something happens and you lose.

Sure, there are programs in place, and all governments work hard to put programs in place, but simply, in the end, the farmer pays the price. Governments can help some, and they do, but in the end, in my view, farmers pay the price.

It's so vitally important that governments understand that and make sure they put everything in place in order to make it better. The opportunities for farmers in this country are endless because of what is taking place in the world today. The world is our market, and there's a lot of expansion. There's a lot of innovation. All of that costs us money. All of that costs us stress. It's not easy to deal with, having experienced it myself.

Frances and I farmed in P.E.I. We owed money, and you wonder.... We had a great crop of potatoes. Then PVY^N hit, and potatoes went from 12¢ to 4¢ overnight. That hurts. You have to deal with that in your own mind. I'm telling you, there's nowhere to go when you get a big slap like that. You need people to talk to, to be able to help you work around it. Farmers and renters are honest, but there are pressures. There are pressures from all directions.

I want to thank everybody at the committee for dealing with this issue. It's an ongoing, big issue to deal with, and anything that I and the government can do to help in order to make sure that the proper.... My parliamentary secretary, Jean-Claude Poissant, has initiated this. It's a very important thing because I know the feeling.

[Eva Nassif, Liberal, Vimy, QC]

Last week, Minister, we had the fall economic statement. Could you tell us a bit about what support was offered to farmers last week?

[Lawrence MacAulay, Liberal, Cardigan, PE]

Well, of course, there is the $25 million to increase agricultural exports and to have trade commissioners, and also to deal with the protectionist measures or tariffs that are put in place. We are very strong in this country on science-based regulatory systems. Most countries are.

I have some difficulty dealing with having a science-based system but then going to Parliament to vote on it. Most politicians are not scientists. My desire—and, I think, the North American desire—is to make sure that the world has a science-based system. If you have a science-based system and you have a problem with a shipment or a product anywhere around the world, it's pretty easy to go back.

What we want to try to do with this money is make sure we address some of the unfair issues that developed worldwide—and they continually rise up. We increased the accelerated tax depreciation from 15% to 45%. For example, if you have a $2-million investment, which is not very hard to have in agriculture, you can deduct $900,000 in the first year.

[The Chair, Liberal, Pat Finnigan]

Thank you.

[Lawrence MacAulay, Liberal, Cardigan, PE]

That's a big thing for agriculture. If you're wondering what it means, just price the cost of a 150-horsepower tractor. That'll tell you how much it costs to be a farmer. Also, all you can do on a tractor is drive around. You have to put equipment behind it.

[The Chair, Liberal, Pat Finnigan]

Thank you, Minister.

We'll go to Mr. Shipley for six minutes.

[Bev Shipley, Lambton—Kent—Middlesex, CPC]

Thank you very much, Mr. Chair.

Minister, congratulations on 30 years of serving your constituents in P.E.I. I was just looking across the aisle. I think you've been around longer than all of them put together.

[Some hon. members]

Oh, oh!

[Bev Shipley]

Maybe on this side, even....

We have great friends in P.E.I., and you're very much respected. Thank you for your service.

I also understand you're going to keep going.

[Lawrence MacAulay, Liberal, Cardigan, PE]

Who knows?

[Bev Shipley]

There you go.

The Prime Minister referred to the U.S.-Canada-Mexico agreement yesterday as the “new NAFTA”, so I'm not sure now where we're going with that.

Did you have input into accepting the accelerator clause in terms of the import of milk into Canada?

[Lawrence MacAulay, Liberal, Cardigan, PE]

Thank you very much, Bev, for your question.

I was involved, really, from before the time it started. I wasn't sitting at the table. We have very capable negotiators. I think you're fully aware that the desire of the American government was to totally eliminate the system. That's simply what they said and what they wanted to do.

Again, I have to congratulate our negotiators at the table—not credit for politicians—and the people who were on the front line on this issue. It was so vitally important that they were able to accomplish what they did.

Bev, the dairy and the supply management sector took a hit. They indicated quite clearly that this was going to happen.

[Bev Shipley]

We know that, Minister.

I'm just trying to figure out where you're sitting in terms of these negotiations, because an accelerator clause.... First, we've now allowed fluid milk to come into Canada. There is now an escalator clause in the amounts that can come in.

Second, can you tell me how you're going to deal with milk that comes in from the United States, where they are allowed to use growth hormones, such as BST, which is illegal in Canada? How does that work in terms of our consumers' confidence in what the agreement has allowed to come into Canada? It's illegal, and it is now going to be part of the agreement.

[Lawrence MacAulay, Liberal, Cardigan, PE]

Bev, I very much appreciate your question.

Of course, you said you knew—and I think you know this, too—that there's absolutely no food allowed into this country unless it's safe food. Without question, CFIA has the authority to indicate whether food is safe or not safe. Anything that comes in—

[Bev Shipley]

Would they be able to use—

[Lawrence MacAulay, Liberal, Cardigan, PE]

Whether it's milk or anything else, if it's to be approved to enter into this country, it has to meet the requirements of the Canadian Food Inspection Agency. I can assure you that anything that does come in will do this.

[Bev Shipley]

I think all of us understand that. That's why Canada has some of the safest food in the world, and not only from what we bring in. If there is a problem, it never gets to the consumer. That's the way it should be.

I'll expand my question a bit, because we do have products that come in from the States where, in other areas.... PMRA, which is under Health Canada, is now in the process of reviewing and looking at neonics. Have you asked for an analysis by your department to find out what the impact would be on agriculture if we lose access to this significant crop input?

[Lawrence MacAulay, Liberal, Cardigan, PE]

Bev, I'm going to let my deputy deal with this question to make sure you get—

[Bev Shipley]

I can ask him in the next hour.

[Lawrence MacAulay, Liberal, Cardigan, PE]

He's going to respond now if—

[Bev Shipley]

I have some other questions for the minister, so can I come back to that?

Minister, I was actually hoping that you would be able to say “yes”. I asked the Minister of Agriculture because I actually have a big concern about this. I need to know what the impact on my industry is, but—

[Lawrence MacAulay, Liberal, Cardigan, PE]

Bev, is it unsafe food that you're concerned about?

[Bev Shipley]

No. This is not about safe food. This is about—

[Lawrence MacAulay, Liberal, Cardigan, PE]

Bev, on the cost of imports and what has to be done.... That's why these committees are put together, to make sure that the evaluations are done properly and that they are fully and fairly supported. That's why this is done. But I can't answer the question as to exactly what costs there are going to be right now—

[Bev Shipley]

Then let me—