My name is William Van Tassel. I have been growing canola since 1988 in Lac-Saint-Jean.
The impact on markets only reveals one aspect of the problem. What is also detrimental to Quebec producers is the support given to competitors, particularly in the United States. This support, intended to stabilize the incomes of U.S. grain producers or to offset the effects of trade disputes or discriminatory economic and trade policies, create a significant competitive disadvantage.
In the case of canola, the U.S. PLC Program paid out between $90 and $125CAN per hectare during 2016 and 2017.
For pork, Quebec producers will receive, mostly from the Canadian government, support from the Agri-Invest Program, which amounts to less than $10 per hectare, or 1% of eligible net sales.
One should not underestimate the U.S. crop insurance program, which is very generous in the United States for canola. The average net premium fell between $35 to $40CAN per hectare, from 2016 to 2018. The comparable amount is approximately $8 per hectare in Quebec and we can say across Canada as well.
When it comes to soy beans, the core U.S. programs, the ARC and the PLC, anticipate paying out between $800 million and $900 million per year, over a total area of 34 million hectares. This amounts to between $20 and $26CAN per hectare. In the context of the trade dispute with China, the U.S. government will contribute nearly $9 billionCAN more to soy bean production in 2018 and 2019, which is nearly $269CAN more per hectare. The amounts paid in Quebec—and normally in Canada—under the Agri-Invest Program are between $10 and $12 per hectare for soy beans.
In addition, there is the trade dispute between the United States and Canada over tariffs on steel and aluminum. According to the industry, this trade dispute will add 6% to the price of machinery and parts. Given that depreciation costs are $125 per hectare for canola and $165 per hectare for soy beans, these are additional annual costs of $7 and $10 per hectare, respectively.
In closing, the trade dispute with China over canola has major impacts on production and income, and these impacts may continue. However, they must be put into perspective with regard to all the ongoing trade disputes, which affect grain producers in Quebec and Canada, particularly canola producers. We are seeing that the safety net in place in Canada to deal with these crises is insufficient and threatens the sustainability of our farms. The Government of Canada must adopt, as soon as possible, a farm business risk management policy that reflects the trade disputes, the subsidy policies of competing countries, and the market access restrictions that grain producers face on a daily basis.