Agriculture Committee on March 12th, 2020

[Richard Lehoux, Conservative, Beauce, QC]

With regard to full compensation for producers, you mentioned earlier that you have had discussions with producers, both poultry farmers and egg producers. However, no date has yet been set.

You know there's a great deal of concern. Even though no product has crossed the border yet, we know our neighbours: they are able to do so very quickly and create a certain a surprise. That's what producers are concerned about right now.

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

I hear what you're saying, and I can reassure you and reiterate our commitment in favour of full and equitable compensation. I have listened very carefully to the demands of the sector. However, I admit that it took a little longer than I had imagined. Having said that, our commitment is as strong as ever, and we will move forward.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you for your answer on that, Madam Minister.

I would also like to raise the topic of the new Canada-United States-Mexico Agreement. We know that the bill to implement it is currently at third reading and that the agreement should come into force fairly quickly.

It still means very significant loopholes, especially in relation to the whole issue of sovereignty, as evidenced by the limits it imposes on our export capabilities. It's a peculiar thing because this is the first time this has happened in negotiations between Canada and other countries.

What do you think?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

We are working with the industry and with the Canadian Dairy Commission. A committee has been set up to develop a vision for the future of the dairy sector and to study opportunities for innovation, as new markets and new products are not necessarily targeted in the agreement.

Again, this is a situation where we want to protect the supply management system. I don't want there to be any doubt in your mind when I suggest that we need to be creative. I think there's a lot of room for innovation and research in the dairy sector, particularly in terms of milk by-products, proteins, and non-fat solids. The sector has a future that is still a little unknown, but promising.

[Richard Lehoux, Conservative, Beauce, QC]

You will understand, Madam Minister, that companies are very concerned. We can indeed work to develop new markets in co-operation with processors and producers, who are also very much on the lookout for these opportunities. However, the fact remains that things get much more complicated when we have to ask our neighbour to the south for authorization before we can develop new markets.

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

However, it's not a big change. It's worded differently, but the reality is that the United States has always had the option of pulling out of the agreement if it doesn't like something. Certainly, the way it's worded now, it is more aggressive—

[Richard Lehoux, Conservative, Beauce, QC]

It's still different, Madam Minister.

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

—but in fact—

[Richard Lehoux, Conservative, Beauce, QC]

Being able to withdraw from a deal isn't like forcing you to come and consult with me before finding a new deal. We won't dwell on the wording, Madam Minister, because it is very simple to understand, at least for me and for all producers and processors in Canada.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Lehoux. Unfortunately, that's all the time you have.

Mr. Drouin, you have the floor for five minutes.

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

Thank you very much, Mr. Chair.

Madam Minister, thank you for being here before this committee. I'd also like to thank the deputy minister and the assistant deputy minister for being here.

My colleague was asking about compensation. We know that in 2013, the previous government announced to the world that Canada was prepared to make concessions. There was no agreement with the dairy producers. We know that in 2015, the agreement was announced less than 10 days before the election, with a program for which the agricultural community hadn't even been consulted.

We know that Minister MacAulay took office and that $350 million was announced to the industry: $100 million for processors and $250 million for dairy producers. Then you were appointed to this portfolio, Madam Minister, and you committed to establishing a working group to ensure that you meet the expectations of our dairy producers.

We know that you've come to an agreement because the amounts have been announced. Where do we stand now? I know that this concerned the Comprehensive Economic and Trade Agreement with the European Union, the CETA, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP. Could you provide the committee with an update?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Four committees have been formed, two of which, initially, are for the dairy sector. One of these two committees analyzed the impact of the three agreements: the agreement with Europe, the agreement with the trans-Pacific zone and the agreement with the United States and Mexico.

So we went ahead and made the announcement last summer of a $1.75 billion compensation program concerning the CPTPP and CETA.

As you mentioned, $350 million, including $250 million for producers and $100 million for processors, had already been granted.

The second part, which I was talking to Mr. Lehoux about a few moments ago, is the vision of the future of the dairy sector. The same exercise had been done with what is affectionately called the G0-4, that is, poultry and eggs. This exercise was done for all three agreements. The working groups made their recommendations, not only in terms of what they wanted in terms of financial compensation, but also in terms of the kind of mechanisms they preferred.

I've made very good note of it for the next step. For me, the next step will be to proceed with the payment of compensation for poultry and eggs and then to complete the compensation component following the CUSMA, for milk, poultry and eggs.

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

Madam Minister, if I understand correctly, the working groups have been set up for CETA and the CPTPP, but they will still continue these discussions once CUSMA is implemented. Is that correct?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Yes, we agreed to meet again to validate the situation, but the bulk of the work has already been done.

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

Earlier, we talked about tariff quotas. You are very aware that, when the industry was consulted several times over the past few years, it expected that all cheeses from Europe would be fine cheeses. In the end, there was a lot of cheddar. Even the industry expected that. The Minister of International Trade undertook to consult fully on all import tariffs. You've told the committee that you're in favour of ensuring that it's as close to the farm as possible, is that right?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Absolutely.

The first round of consultations is winding down. There are a few options on the table that will be made public shortly for a second round of consultations. The funnel for a second round of consultations is being closed a little bit and will be announced in part 1 of the Canada Gazette very soon. We're getting there soon. The agricultural sector, as we know it, has made excellent representations. So have we, internally.

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

As you mentioned, the risk management program will be reviewed. We're studying it here, in committee. Could you tell us about these programs? What are you hearing in the field? What's working well? What are our limitations? I think the federal government is providing 60% of the funding and the provinces, 40%.

If, for example, in an ideal world, we wanted to put more money into these programs, I imagine the provinces should join us in ensuring that we fund them fully.

[The Chair, Liberal, Pat Finnigan]

I'm sorry, Mr. Drouin, but I'm going to have to move on to the next speaker.

The time is up.

Mr. Calkins, a former colleague on fisheries and oceans, welcome to the agriculture committee.

Go ahead, for five minutes.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

Thank you, Chair.

Minister, do you or your department know what contribution family farm income is supplemented by off-farm income?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

I'm not sure I understood your question, Mr. Calkins.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

I'm not surprised.

In the west, for example, in the riding that I represent, many of the family farms have people working off that farm to supplement family farm income.

Is the Department of Agriculture aware of what the influence is for off-farm income in keeping family farms viable?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

I could have chosen to listen to the translation, but I think my English is good enough to try to understand your English.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

Okay.

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

I'll continue in French.

Yes, I'm very aware that there are many farm families, like many small SMEs across the country, that need additional income to make ends meet.

To answer your question, yes, I'm aware of it.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

Okay.

I would hope you would be aware of that and keep that in mind the next time you're making deliberations at the cabinet table about energy projects in western Canada. For many of the farmers in my area, the running joke is that we work in the oil and gas sector to support our farming habit. We say that lightly, but these days it's not taken lightly.

Now I would like to move on to talk about net farm income. Over the last number of years, depending on what trading arrangement we've had, we've lost about 45% or $5.6 billion in revenue from various countries like China, India, Italy, Peru, Saudi Arabia and Vietnam with the embargos or tariffs that we have with these countries. We have a carbon tax that's putting pressure of anywhere from 8% escalating upwards to 12% to 15%, depending on who you listen to, on farm income.

In your party's platform, you committed to putting $5 billion into Farm Credit corporation. Is it because of the mishandling of the trade relations and the agricultural file that you believe the fiscal solvency of farms in Canada is going to become a liability for our major financial institutions and so that you now you need $5 billion to prop up Farm Credit corporation to prop up the farms that are no longer making a profit because of government failed policy?