Agriculture Committee on Oct. 27th, 2016

[Brett Halstead]

I'll go first.

We don't necessarily have a solution. There's a lot of talk in the industry about returning to the 85%. We're also currently working with other farm groups to come up with a common suggestion or policy. That's why we suggested that maybe a national committee of associations get together and work on this. More groups than just the grain industry, though, are going to want input into this solution.

As I mentioned earlier, right now the program is speaking for itself in the fact the farmers have lost confidence in it. We do need to do something better than where it's at now. We don't have a specific solution, but the 85%, returning to that trigger, has been discussed.

[Patti Miller]

Farm income programs are not something that my organization is involved in. If your question is specific to that, I wouldn't have anything to add.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

My next question is about the sector's resilience vis-à-vis climate change and its ability to adapt to that new reality. We know the government has signed an international agreement to reduce its greenhouse gas emissions. That agreement sets out very specific targets that must be met.

What assistance do you expect from the government so that you can contribute to the reduction of greenhouse gases? Now that the government has signed the agreement, we expect it to introduce a plan that mobilizes all greenhouse-gas-producing sectors. How do you expect the government to assist you in contributing to the reduction effort?

Mr. Halstead can go first, followed by Ms. Miller, and then Mr. Vander Ploeg.

[Patti Miller]

Reducing greenhouse gas emissions is really important to the canola industry.

One of the things I'd like to mention is that canola is the only Canadian crop certified under the international sustainability and carbon certification program, and we have been for a number of years. Greenhouse gas emissions per tonne of canola have fallen 65% from 1986 to 2006. It's an area that our industry has paid a lot of attention to for a number of years.

Innovation is really going to be important to improve sustainability and to adapt to climate change. Our experience in this industry around biotechnology has really shown us what kind of a return on investment you can make in tackling some problems like this. Since biotechnology was introduced into the canola industry, 86% of farmers have seen a reduction in soil erosion. Carbon dioxide emissions have been reduced by a billion kilograms, and that's the equivalent of taking half a million cars off the road. We've reduced our environmental footprint at the same time that we've increased yields and improved profitability.

We look at this as another opportunity. In terms of your question on what the government can do, I think it's important for us to continue investing in innovation, to continue investing in understanding the impact of agriculture, and, where we can, to not only improve our environmental footprint but to do that profitably.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Vander Ploeg, your turn.

[Casey Vander Ploeg]

The whole issue of the environment and carbon, of course, is a significant concern for our sector. As was mentioned earlier this morning, in essence, producers are price-takers and, as such, it is very difficult for us to recoup or to pass on any increased costs, such as taxes, as a result of production. Of course, that raises the larger issue of how we can participate in ongoing discussions and the development of new carbon strategies.

I would think, first of all, that the government should have a very strong interest in ensuring that the agricultural industry can manage and also adopt technologies and should support changing practices that could help improve our outcomes. I'm thinking here of a recent announcement in Alberta, where the province has said that it is starting a new program, with tens of millions of dollars were being provided to the provincial farm community to increase on-farm fuel efficiency and energy efficiencies. That's important.

I do think that we need to take a very good look at this and ensure that specific exemptions are made. Under the new provincial carbon tax policy, I know that farm fuels—diesel and gasoline—are exempt. I think another part of the deal, too, is to look not just at the emissions side of the question, but also at sequestration. It was mentioned earlier this morning that carbon was being kept in the soil as a result of agricultural activity—

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Vander Ploeg.

[Casey Vander Ploeg]

—so we should be looking at the other side of the equation too.

[The Chair, Liberal, Pat Finnigan]

We'll now move on to Monsieur Breton.

Mr. Breton, you have six minutes. You may go ahead.

[Pierre Breton, Liberal, Shefford, QC]

Thank you, Mr. Chair.

I'd like to thank the witnesses for joining us today.

I would especially like to thank you for the high quality of your presentations and all the insight you have given us.

It pleases me to hear all three of you highlight the tremendous importance of innovation and research and development in your respective sectors.

As everyone knows, in the coming years, the Canadian population will experience significant growth, as will the global population, more importantly.

You talked about exports. Inevitably, then, we have to talk about increasing productivity. That means figuring out how you can increase your output to meet demand, not just here, in Canada, but also around the world, given that you export 90% of your products.

How can the Government of Canada better support you in your research and development and innovation efforts?

All three of you raised this important issue, so you can each have a turn answering.

[Patti Miller]

It's a very good question and a very broad question. I'm not sure how to tackle it. As all three of us have talked about, investment in innovation is really key to growth in our sectors in agriculture. I have referred to agriculture in particular as a high-tech industry, and it truly is.

Globally, countries are putting more and more emphasis on food and feed safety. That requires understanding the products and their safety and how to manage that, so investment in that area is critical. We've all touched on that in terms of support in our efforts in international trade.

In the canola industry, we have started to develop an innovation strategy that really looks at where the critical areas are that require investment for future growth. We've talked about canola being born in innovation, and really, we're looking now at the next stage of our life as an industry. Where we need to invest in terms of public research institutions, university, and academia? More importantly, how do we work better together? We are a small country with limited resources. If we don't work effectively and collaboratively, if we don't have really good research networks, we will not be able to compete.

[Brett Halstead]

The Canadian Canola Growers Association is an active member of the Canola Council of Canada. That's where that work is done. To echo what Patti said, it's very important, and our innovation does bring us all together. In our provincial and national organizations, we work together. We develop those goals in conjunction with our partners in government and private industry. I like that collaborative approach.

[Casey Vander Ploeg]

Research and innovation in the beef industry are ongoing and will continue to take place. Industry certainly invests a lot of its own money in its own research, and we desire to partner with government as part of that too.

There are some specific challenges around agricultural research right now. One of the big ones is simply the number of agriculture graduates who are engaged in specific research activities. Those numbers have been declining in, for example, researchers available to conduct work in the area of forage research.

As for some of the top priorities, I think there will be increasing industry consensus around the top priority areas as the Beef Cattle Research Council develops its five-year plan. In our organization, we're currently working on identifying what the priorities are for cattle feeders as well.

We do have a certain sense of some of the areas that we need to continue looking at: forage quality, certainly; feed additives, certainly; improving animal genetics, which is very important in terms of being able to increase our production while lowering our environmental footprint, because certain genetics of animals simply are better able to produce pounds of beef; and then, of course, there are things like animal health. There is a wide range of areas on which research needs to continue, and the industry certainly looks forward to partnering with government to make sure those areas are properly funded going forward.

[Pierre Breton, Liberal, Shefford, QC]

Do I still have a bit of time, Mr. Chair?

[The Chair, Liberal, Pat Finnigan]

You have between 20 and 25 seconds left.

[Pierre Breton, Liberal, Shefford, QC]

My question is for you, Mr. Vander Ploeg. I'd appreciate it if you could answer quickly.

What you said about the labour shortage in the beef industry really caught my attention. How do you think the problem could be fixed? How could the government work with your important industry to address the problem? Obviously, the lack of labour seriously limits output. Perhaps you can answer later. I believe the chair is about to cut me off.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Breton.

Mr. Drouin, you may go ahead for six minutes.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Thank you, Mr. Chair.

I, too, would like to thank the witnesses for being here today. Their participation is appreciated.

Casey, it's good to see you on TV. I'll follow up on Mr. Breton's question. I'll let you answer that question with regard to labour.

[Casey Vander Ploeg]

In 30 seconds or less, I think the government should be looking very closely at the recommendations contained in the workforce action plan of the Canadian Agricultural Human Resource Council. That workforce action plan has a set of recommendations for government and for industry to grow the labour pool for agriculture, and we think that in there lies a big part of the solution to this challenge. The report is available to the committee through CAHRC.

That's my 30 seconds.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Thanks.

You did mention that you were somewhat worried about climate change and the policies that are being put forward. The APF does mention.... I know that in the Calgary statement one of the pillars is environment and climate change. I've heard your call for help in transitioning into that new economy.

What kind of help could we provide in terms of funding? Right now it's just one pillar, but for your industry, what kind of help would be useful for that in terms of the climate change and environment pillar? Would it be what's in the Calgary statement?

[Casey Vander Ploeg]

Broadly speaking, I guess, government's role is in terms of conducting research on new technologies that will reduce the carbon footprint. Secondly, it would be government funding and assistance for industry to adopt those new technologies that are available.

Aside from that more general description, I would hesitate to provide specifics at this point. Although certainly as a result of the conversation we're having this morning, I think I'm going to be sending out a survey to our members and saying, look, this policy area is now coming forward, so from your view on the ground, from your view in the field, what sorts of things should the government be doing to provide assistance as this rolls forward? I think that maybe then we can provide a more holistic answer to that question.

I will commit to doing that and then will follow up with a letter to you, Mr. Drouin.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

That would be great.

Do you see different needs varying by province? For example, with Alberta beef farmers versus Ontario beef farmers, do you see different needs in terms of that transition into a more sustainable environment? I guess you'll know by the survey.

[Casey Vander Ploeg]

I'm not entirely sure. I know that in the cattle-feeding sector things are fairly consistent in terms of production. The only real difference is the type of feed grains being used, such as more corn in the east and more barley in the west, for example. I'm not sure how that would impact what we're talking about this morning.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

For my canola folks here, I note that most of the growing is done in the west, but it is a growing market in Ontario. In eastern Ontario, some farmers have taken up growing canola.

Again, going back to just the environmental policies that are being put forward in the APF, what types of programs would you see that would help your farmers in the transition? I know that you already have a good story, but if we do need to take it to another level, what type of transition funding would you see?

[Patti Miller]

Some of the data that I talked about was really focused on the farm community. We have talked about needing to transition through some of the research in investment and innovation, but I think it's important to remember that we can't lose sight of the competitiveness of our industry. As my colleague has said, I think we need to do a little more homework in terms of the implications for our industry before we can come back with a really specific recommendation.

It's important to think about this fact for canola: in world trade terms, we're 5% of the world vegetable oil market, so whatever we do in Canada, we need to maintain that competitiveness. Certainly, improving our environmental footprint and the sustainability of how we grow this crop is going to help us differentiate ourselves in the market, but the margins are thin and the competition is hard, so we have to look at both of those in balance. That will be very important to us.