Agriculture Committee on March 11th, 2021

[Lyne Bessette, Liberal, Brome—Missisquoi, QC]

Thank you, Mr. Chair.

I'd like to thank the minister very much for being with us today to answer our questions.

In the budget, there is a $468 million expenditure for the dairy direct payment program. When we had the opportunity to talk to our dairy producers in the Eastern Townships, they told us how much they appreciated this program and that the payments were a real help during this more difficult time.

Could you tell us a little more about how the second round of payments is going and how it's being received by dairy farmers?

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

I have nothing but good things to say. Last year, we had already gone through this with the Canadian Dairy Commission, which was mandated to calculate and make payments and manage the process. They made sure they informed all the dairy farmers, who had to fill out a fairly simple form. The transfer was done pretty quickly.

The last I heard, 89% of producers had received their second instalment, and I believe over 92% of them had applied. For the few producers who still haven't applied, which they must do by March 31, the team at the Canadian Dairy Commission is calling them one by one to make sure everyone will receive their second instalment.

[Lyne Bessette, Liberal, Brome—Missisquoi, QC]

All right. Thank you very much.

I'd like to talk about the other supply-managed sectors. You announced some details about the compensation available to the egg and poultry sector.

Can you tell us where you are with respect to both the egg and poultry and the processing sectors?

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

We announced $691 million in compensation for the first two agreements, with Europe and the Trans-Pacific region. All the discussions we had with their representatives, and there were many, led us to programs providing investment and marketing assistance. That was completely acceptable to us, and we are now in the process of putting the finishing touches on those programs.

Some procedures still need to be followed, but I'm very anxious for us to announce the implementation of these programs to allow egg and poultry producers to submit their proposals, and I know it will happen soon.

[Lyne Bessette, Liberal, Brome—Missisquoi, QC]

Thank you.

In July 2020, your government submitted an application to the World Organisation for Animal Health, the OIE, to have Canada recognized as a country with a negligible risk for mad cow disease, or BSE.

What is the status of the application?

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

I have really good news about it. We applied to have Canada recognized as a negligible BSE risk country. The OIE's scientific commission has a made a positive recommendation. The next stage is for the council to formally approve the recommendation.

Nevertheless, the scientific commission's recommendation is favourable, that Canada should be recognized as a negligible BSE risk country. That's very good news for our beef industry. It opens doors to our export markets.

[Lyne Bessette, Liberal, Brome—Missisquoi, QC]

Thank you very much.

In your opening remarks, you indicated that, in response to our committee's report, the government would be proposing new business risk management measures.

Can you tell us a little more about the status of the discussions with the provinces on those new measures?

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

In the short term, my goal was to improve the AgriStability program. Indeed, after many, many hours of studying all the risk management programs and 22 discussions with my provincial and territorial colleagues, everyone agreed that AgriStability is the priority.

To make the program simpler, fairer and more generous, in November 2020, I made a proposal to my provincial and territorial colleagues that we remove the reference margin limit and increase the compensation rate from 70% to 80%. To implement these changes, I need the support of two-thirds of the provinces. However, the provinces' weight is based on how many participants they have in the program.

In other words, two of the three Prairie provinces have to support the program. I already have the support of Quebec, Ontario, British Columbia and several Atlantic provinces. Now I need to get two of the three Prairie provinces on board. I remain hopeful that we will reach a consensus and then we can improve the AgriStability program as quickly as possible.

[The Chair, Liberal, Pat Finnigan]

Thank you, Madam Minister.

Thank you, Mrs. Bessette.

Mr. Perron, you have the floor for two and a half minutes.

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

Thank you, Mr. Chair.

Madam Minister, I'd like to come back to the topic that Mr. MacGregor touched on earlier, financial security for horticultural producers. I am a little surprised to hear you say that growers have not told you about this, given that they are telling us, and telling us often, that they really need it. They also say that the reason they can't move forward is that not enough losses are reported. They say that many losses are apparently not reported, for a host of reasons. There is a real need for this, and also a significant side benefit: it would likely automatically protect them, even in the United States.

Why don't you go ahead, or make another proposal?

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

Are you hearing about it in the field, Mr. Perron?

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

Yes.

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

To be honest with you, I must say that you are the only ones who have told me about this, with one exception. The department team contacts the people when they have new information on the matter. The Safe Food for Canadians Act and the Bankruptcy and Insolvency Act, in particular, seem to have adequate mechanisms in place, especially given that the related losses are less than 0.1%.

Fruit and vegetable growers are asking me to focus on labour issues, meaning temporary foreign workers, as well as on improving risk management programs, including AgriStability.

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

With regard to the next generation of farmers and the transfer of family businesses, please quickly tell us about Bill C-208, which is quite important, I believe. Young people especially are asking us to pass it. Now you seem to have some misgivings about it, but I hope I am wrong.

I would like to hear your thoughts on it.

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

I don't have misgivings, in that it's a priority for us. It's in my mandate letter, and in the Minister of Finance and Deputy Prime Minister's letter.

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

I was going to say that.

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

We really want to find a solution. A private member's bill doesn't seem to be the best way to do it. It's always a little tricky to introduce a private member's bill that has tax and budget implications, isn't it?

It remains a priority for us. Our tax teams are in the process of trying to figure out the best possible mechanism, because it is a situation we wish to address.

[The Chair, Liberal, Pat Finnigan]

Thank you, Madam Minister.

Thank you, Mr. Perron.

Now we have Mr. MacGregor for two and a half minutes.

Go ahead, Mr. MacGregor.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Thank you, Mr. Chair.

Minister, our report on business risk management programs was tabled in the House 111 days ago, so it gives you about nine days left to give the government response. Are you on track for delivering that?

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

Tomorrow.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Okay, I'm glad to hear it. That's fantastic. That's a nice quick answer to the question.

On our processing study, we'll be going over our draft report and recommendations soon. I don't want to presuppose what's going to be in the report or the recommendations, but I can tell you, from the public testimony that we've heard, that witnesses were repeatedly talking about making a resilient processing capacity exist in Canada. I know you were talking, in response to Ms. Rood's question, about the smaller and medium-sized plants, but a recurring recommendation from our witnesses has been that we need to see those firm capital investments, because those are often the biggest impediments to smaller communities getting something up and running.

I know you probably can't go into much detail on what's coming in the budget, but can you offer the committee at least what your long-term vision is in terms of how we can set up some kind of a reliable fund for small-scale processors in small rural communities like mine and in your riding, to really get over that initial financial hurdle and set something up? It just has a multiplier effect when it allows farmers to access something that can add value to their product.

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

I would say that I'm at the beginning of the process. It has clearly been identified as a weakness that we want to work on. It's also a shared responsibility. I've started a conversation with the Minister of Agriculture in Quebec, and he's also working on it.

We'll have to find a way to see what's the best role that the Government of Canada can play. I'm really open to all suggestions, so I really look forward to your report.

The solution is not obvious yet, but this is something that I want to be part of the solution for.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Thank you, Minister.

I think that wraps up my time, Mr. Chair.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. MacGregor.

Thank you, Madam Minister.

Now we'll go to a five-minute round with Mr. Steinley.

Go ahead, Mr. Steinley.

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Thank you very much, Minister.

I'm going to have some yes/no answers hopefully coming from you in rapid-fire succession.

Would you personally think grain-drying fuel is an on-farm use?