Agriculture Committee on June 10th, 2020

[Chris Forbes]

I would be surprised by a number of that size, but, as I said, I don't have it in front of me. I don't want to get into speculation, but that seems high.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Forbes. Thank you, Mr. Lawrence.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Thank you.

[The Chair, Liberal, Pat Finnigan]

We'll go to Mr. Ellis for five minutes.

Go ahead.

[Neil Ellis, Liberal, Bay of Quinte, ON]

When we talk about the U.S. and the global marketplace, we know the importance of competitiveness. We've lowered taxes and we've introduced the accelerated investment incentive, which allows farmers and producers to write off three times the deductible amount in their first year [Technical difficulty—Editor] on purchases of new machinery and equipment in relation to COVID-19, compared to Canadian programs?

[Chris Forbes]

I'm sorry, but that cut out for me in the middle. I apologize. I got part of it, but not all of it.

[Neil Ellis, Liberal, Bay of Quinte, ON]

I guess the end of the question would be this: Can you elaborate on U.S. BRM programs in relation to COVID-19, as compared to Canadian programs?

[Chris Forbes]

In Canada, there are a couple of things that we've done. We obviously have in place a BRM suite. The minister went through that, including AgriStability, which has what I would call a counter-cyclical aspect, in the sense that if it's a difficult year, payments would go up. It's kind of a safety net. It's akin to employment insurance in the sense that if it's a worse year, it will respond naturally. We would expect that to happen in a difficult year.

The U.S. programming suite is a bit different. Obviously, they have some ad hoc programs, but not the level of base BRM support that Canada has.

[Neil Ellis, Liberal, Bay of Quinte, ON]

Thank you.

Social distancing requirements will make traditional farmers' markets and roadside stands difficult this year, resulting in reduced access to such things as honey, maple syrup and fruits and vegetables. Has there been any talk with the province or you about any avenues of distribution we can achieve in these COVID-19 times?

[Chris Forbes]

I think there are a couple of things. In discussion with the provinces and with stakeholders, we're already seeing some innovation in how stakeholders are delivering products. Farmers' markets are a fine example, as some individual farms or farmers' markets have already gone online.

As the minister said, we're working with the local food infrastructure fund to support some of those investments for producers and markets. We're working to try to support innovation that will get more food from farms to consumers.

[Neil Ellis, Liberal, Bay of Quinte, ON]

My last question is on the extension of the Farm Credit Canada lending capacity. How has the uptake been for that, and where are we at with that program?

[Chris Forbes]

That's largely the $5 billion that was announced in the early days, in late March. That's largely, I think, been subscribed. It's a lot of take-up across the sector for the deferral of existing credit. It's not adding new debt so much as giving farmers and food processors relief on existing lines of credit.

[Neil Ellis, Liberal, Bay of Quinte, ON]

Thank you. Thank you, Mr. Chair.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Ellis.

Mr. Perron, we'll stretch your two and a half minutes to at least three minutes.

Go ahead, Mr. Perron.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Thank you, Mr. Chair. I appreciate that very much.

I want to thank the witnesses for joining us and for patiently coping with the technical difficulties.

Mr. Forbes, I want to hear your opinion on the AgriInvest program issue that I raised with Minister Bibeau earlier. The witnesses we heard from argued that the AgriInvest program is used to invest in and modernize businesses. The producers didn't necessarily want to empty their accounts, especially since they don't all have money in those accounts.

Where do you stand on this in the current situation? Should people be asked to use up their savings before they receive assistance?

[Chris Forbes]

AgriInvest is one of our risk management programs. It was designed to respond to emergencies, difficult situations. As the minister said, along with AgriStability, it's one of the programs that meet needs in times of difficulty. The cost is shared with the provinces. These programs help producers when they need money. The accounts contain about $3 billion.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

What can you tell us about the conditions imposed on people who accept foreign workers and who want the $1,500 compensation? Producers are telling us that they're being asked for invoices and proof, whereas the original announcement stipulated a lump sum per foreign worker.

Where do things stand on this issue?

[Chris Forbes]

I'm a little surprised that people are finding the administrative burden heavy. We've really tried to streamline the process.

We want producers to fill out an application form and to provide information about the types of expenses to check whether any expenses are eligible. We sometimes conduct audits because we're managing public funds.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

I gather that it should be a simple process and that everyone should receive the amount.

My colleague Ms. Desbiens may have a brief question for our witnesses.

[Chris Forbes]

Okay.

[Caroline Desbiens, Bloc, Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC]

Yes. I want to ask Mr. Forbes a question.

Thank you for joining us, Mr. Forbes.

My concern is that the Canada emergency response benefit is coming to an end and that food bank use is likely to increase dramatically.

Will the local food infrastructure fund or surplus food purchase program have flexible criteria?

[Chris Forbes]

We'll try to keep the criteria flexible. As I said, the $50 million investment has two purposes. The first purpose is to help producers who have surplus products. The second purpose is to make sure that the products reach the consumers or the food banks that need them. We'll try to do this quickly and flexibly to ensure that the assistance is effective. That's our goal, and we understand that the situation is urgent on both sides.

[Caroline Desbiens, Bloc, Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC]

Let's hope that the Canada emergency response benefit will also be extended.

[Chris Forbes]

Thank you.

[The Chair, Liberal, Pat Finnigan]

Thank you, Ms. Desbiens.

Now we have Mr. MacGregor for three minutes or more.