Evidence of meeting #5 for Agriculture and Agri-Food in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was agristability.
A recording is available from Parliament.
5:25 p.m.
Liberal
The Chair Liberal Pat Finnigan
Thank you, Ms. Rosher.
Thank you, Mr. Soroka.
Mr. Drouin, the floor is yours for three minutes.
5:25 p.m.
Liberal
Francis Drouin Liberal Glengarry—Prescott—Russell, ON
Thank you very much.
My question goes to the officials from the Union des producteurs agricoles.
I will not ask you to take a position on the situation in other provinces, but we do know that the costs of the risk management programs are shared. The federal share is 60% and the provincial share is 40%.
Have you had discussions with officials from the Government of Quebec? Have they shown any willingness to invest more money in risk management programs?
5:25 p.m.
First Vice-President, Union des producteurs agricoles
We have had no discussions about that ratio.
However, we have consulted farmers. In terms of specific programs, the general opinion is that, very often, an element of the risk management must be federal.
I was talking earlier about conflicts that have flared up on international markets like the one with China. I feel that the federal government must invest in order to support the producers affected. In general, trade conflicts break out between countries, not between provinces. Those aspects have to be clearly separated.
I would add that the biosafety of our companies is another aspect where the federal government should respond.
5:25 p.m.
Liberal
Francis Drouin Liberal Glengarry—Prescott—Russell, ON
Okay.
You also brought up the price-taker concept. To enlighten the committee and the Canadians listening to us, what do you understand by that concept?
5:25 p.m.
First Vice-President, Union des producteurs agricoles
Let's take grain producers as an example. The Chicago Exchange fixes the price for the product, so they use the American price. We do not actually choose the price for our products, nor are we able to increase the prices. In that example, our price is based on the North American price—which explains the expression “price takers”. It also explains why we feel the impacts of that situation.
5:25 p.m.
Liberal
Francis Drouin Liberal Glengarry—Prescott—Russell, ON
Thank you very much.
Ms. Ward, you mentioned that individual farms should be capped for total payments at $750,000. Is there a rationale behind that number?
5:30 p.m.
President, National Farmers Union
Our greater concern is to ensure that we're keeping up with the purpose, which was to eliminate making a profit off these programs. For the vast majority of farms to cover their expenses, even for many of the larger operations out on the Prairies, that should be sufficient to cover losses in extreme years. Again, this is not intended to roll over into the profit side of things.
5:30 p.m.
Liberal
Francis Drouin Liberal Glengarry—Prescott—Russell, ON
Thank you.
Rapid fire, Mrs. Rosher, my colleague, Mr. Soroka, touched on it, and you've talked about the story of the brother not being able to buy crop insurance because he doesn't have enough assets. You may not have enough time to respond, but is there a solution to that where we could see a transition program to get access to crop insurance? If you have ideas, I'd like you to share them with the committee. Thank you.
5:30 p.m.
Some hon. members
Agreed.
5:30 p.m.
Liberal
5:30 p.m.
General Manager, Keystone Agricultural Producers
Okay. I don't have the answer—
5:30 p.m.
Some hon. members
Oh, oh!
5:30 p.m.
General Manager, Keystone Agricultural Producers
That won't keep me from talking, though.
FCC has a loan program specifically for young farmers that really speaks to them directly. We've had them come talk to our young farmers committee, and we can see that when you're communicating and when you really understand the needs of the young farmers, you can develop a program that really fits them. They are very appreciative of FCC's programs.
It's the same with MASC in Manitoba. They also have lending programs specifically for farmers.
If you have a relationship with young farmers and understand what they are dealing with on the farm, yes, you can do lots of good things with those programs.
5:30 p.m.
Liberal
The Chair Liberal Pat Finnigan
That is all the time we have. I certainly want to thank all of you: Patty Rosher from Keystone Agricultural Producers, and from National Farmers Union, Katie Ward.
My thanks also go to Martin Caron and David Tougas, from the Union des producteurs agricoles, for taking the time to help us with our study of these programs, a study that will be the subject of our next report to the government.
Thank you, everyone.
The meeting is adjourned.