Agriculture Committee on March 12th, 2020

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

I think you're right. We all have a responsibility as leaders to behave in a way that reassures Canadians that we have here in Canada, working in good collaboration with the provinces as well, all the resources to face the situation. We have a good health system and a good economy as well. I'm very confident that in working together with the provinces and with the different industries that are being impacted in one way or another together we will face the crisis.

If the coronavirus affects Canada more significantly, there will likely be variations in both demand and supply. It may become more difficult to obtain supplies from some suppliers. There may also be less demand as events unfold.

There may be a redistribution based on what we export or what is domestic. There are already links between the provinces, the industry and our entire team in the federal government to deal with the situation.

[The Chair, Liberal, Pat Finnigan]

Thank you, Madam Minister.

Mr. Blois, you have up to six minutes.

[Kody Blois, Liberal, Kings—Hants, NS]

Thank you, Mr. Chair.

Thank you, Minister, for being here. It's great to see you in the room.

I want to start with the advance payments program. Just to give you some context, Minister, we've had the conversation. Of course, this is something that has just been debated and discussed in the House. Back on February 27, we had the chance to learn more about the advance payments program. Essentially, they are loans to provide cash flow for farmers who are facing difficult times. We know that 2018 and 2019 have been challenging years.

What we learned, Minister, at the last meeting on February 27 was that our government had increased the limit for all farmers up to $1 million. I believe you might have referenced that in your speech. We had raised the interest-free portion on the loan from $100,000 to $500,000. We actually provided a stay of default, which allows farmers more time to pay back these loans that have been provided. This is certainly important, particularly in western Canada where we've seen a lot of moisture and challenging times with regard to grain drying. Then we also provided an additional two months for farmers to file their applications.

I just want to make sure that this is correct. Is that what has been done, certainly in 2018?

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

Yes, you're absolutely right. After the closure of the Chinese market to canola, mainly, was when we decided to increase the condition allowing all farmers to get higher loans, and specifically for canola farmers to have a bigger amount of interest-free loans. We are working through 34 different administrations that are administering the system for us.

You're right. In 2018, they asked for a stay of default, so the payment that was due October 2019 has been postponed until April. We are in regular contact with these administrators. For the time being, they do not expect any stay of default.

I don't know the correct term in English.

[Kody Blois, Liberal, Kings—Hants, NS]

That's fine, and that's a great point. You talked about the APP administrators. We learned about that last time in the committee, that there are 34. The reason I'm bringing this up is that the leader of the official opposition has asked the Prime Minister to provide a stay of default to the farmers. Some of the members of this committee have certainly done so and have spoken up in the House and asked why you haven't been doing that.

I asked this question before in the committee. I asked about when the minister can actually choose to review a stay of default, and we learned that the actual APP administrator is required to submit and ask you to do so.

I asked the officials last time. They weren't sure at the time, but I'll ask you, Minister. Have you received a stay of default request from the APP administrator in any of the forums, in western Canada particularly?

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

No, we haven't.

[Kody Blois, Liberal, Kings—Hants, NS]

No. Okay. Thank you.

I assume that once you do receive something like that you would review the application on its merits and make a decision. Obviously, given the fact that we've done this in the past, it very well could be likely that it would be extended moving forward. Is that correct?

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

Absolutely.

[Kody Blois, Liberal, Kings—Hants, NS]

Great.

I want to move us towards studying ways in which the Government of Canada can reduce GHG emissions for farmers. Mr. Barlow brought forward a motion, so we're going to have the chance to study how we can lower GHG emissions for farmers.

In my riding of Kings—Hants, one very important institution is the Kentville research station. Minister, part of our job is to not only work with the private sector but also make sure that government itself is greening. I know that my predecessor, Scott Brison, was part of that initiative under the Treasury Board. Can you speak about our work to green agriculture, particularly internally with some of our own operations?

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

You're right. We have put in place different types of programs to support farmers to access new technologies and best practices.

I was in Nova Scotia recently to make an announcement about a greenhouse that now uses 100% green energy. Actually, I think I referred to it in my speech. Closer to your place, we have also supported a centre to allow them to get equipment, such as tractors, that are zero emission. These are good, concrete examples.

We are also making significant investments in our research centres. We have 20 around Canada. To give you an example, in my riding of Lennoxville, we have a research centre working on pigs and dairy cows. They are working on how to feed the animals and generate less gas emission. These are interesting new ways. It's also diminishing the need for supplies.

[Kody Blois, Liberal, Kings—Hants, NS]

That's great, Minister. I really appreciate that. I look forward to working collaboratively in this committee in the days ahead to continue to support those efforts.

I'm the youngest member of the governing party here in Ottawa. Minister, what are we doing to support young farmers? We know that's important in terms of being able to have the next generation of farmers.

You probably have about 45 seconds. I'll let you talk about what we're doing for young farmers, particularly people my age.

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

Through Farm Credit Canada, we have some special loans with lower interest to help them. You can see in my mandate letter and the mandate letter of the Minister of Finance that we are working on fiscal measures to facilitate intergenerational transfers.

I'm also very proud to launch the first youth council. We have received 825 applications for this council. I will be announcing the names very shortly.

[Kody Blois, Liberal, Kings—Hants, NS]

Thank you very much, Minister. I really appreciate your answers.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Blois.

Mr. Perron, you have six minutes.

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

Thank you very much, Mr. Chair.

Good afternoon, Ms. Bibeau, Ms. Walker and Mr. Forbes. Thank you for being here. Since our time is limited, I will try to ask you some simple questions.

The first item of expenditure is compensation for dairy farmers. We are obviously very pleased about this. Last week, I met with other people whose products are subject to supply management. Earlier, you quickly mentioned that you had made progress with regard to compensation.

Do you have any idea of the dates? These people are a little anxious, especially since the budget is going to be tabled soon and they haven't heard anything.

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

I'm not going to get trapped into giving you a date again. I've learned my lesson. However, I can assure you that we have come a long way and that our work with these people has been completed for some time. This has clarified not only the financial implications, but also the kinds of mechanisms they want. Each sector has made recommendations and has spoken out on the different financial mechanisms they want to see. I am at the stage of final discussions with the Department of Finance, among others.

We remain committed to full and fair compensation for the supply-managed poultry and egg sectors. It is also worth noting that to date there has been no entry of chickens, poultry or eggs at our borders. Therefore, the impact has not yet been felt. Having said that, we understand very well that these people must be given the means to make their purchases and the necessary investments to improve their ability to adapt for the future.

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

From what I understand, you're going to respect the demands of each industry, which may be distinct from the others.

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

Absolutely.

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

You can't give us an exact date, which I can understand. That said, since the agreements were costed out a long time ago, last April, I believe, can we expect to see any numbers or a forecast in the budget? That would reassure people in the sector.

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

I understand your question, but I can't speculate on the budget.

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

Okay. I'll move on to a second question.

I understand the advance payment system. It's a good idea, and it's useful. It's an interest-free loan. The committee has already started to look at business risk management systems. We have heard from a number of stakeholders about an emergency fund. This is an idea that we also talke about during the election campaign.

Shouldn't we be looking at direct support for commodities like canola and pork, which are the subject of conflict with China? The U.S., on the other hand, is not shy about heavily subsidizing its pork production. I'm giving you that as an example, but I could mention many others.

Could direct support be considered?

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

That can always be considered. The purpose of risk management programs is to ensure the long-term viability of our industry, that is, to ensure that farms in different sectors have programs in place to deal with difficult years. It's all about impact. The impact may often seem bigger in the moment, but when you look at the numbers, it's different.

These programs are not like private insurance, but the goal is to ensure long-term viability and to ensure that producers can manage their business and get through a tougher year. We're targeting risks that are unpredictable.

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

I'm sorry to interrupt, but I'm running out of time. I'm beginning to understand how committees work.

I'm not necessarily talking about the system in general, but about an emergency fund that could be used in exceptional cases. You're talking about support measures for the energy transition, and that's fine. A few weeks ago, I met with a producer in my riding. He was unable to harvest any crops in 2017 or 2019 because of the flooding. These are extreme cases where people are uninsured.

Is it possible to consider one-off assistance? We should have to start thinking about it, if the committee were to make recommendations to that effect.

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

Different programs exist. Take AgriInvest, for instance, which allows producers to get $10,000 a year, unconditionally, or just about.

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

However, you don't plan to offer any direct assistance at all.