Agriculture Committee on May 27th, 2021

[Sylvie Lapointe]

Thank you for the question.

Our inspectors are very professional. They work according to national standards that are established across all the different business lines. Of course, we hear that sometimes there can be issues on the ground, but we are open to hearing from industry and to working closely with them to make sure that we are addressing any concerns they've raised.

Of course, there is also recourse to a complaints and appeal office if there are significant concerns that are being raised, but certainly, consistency across all business lines is something that we strive for and to do so in an open, transparent and fair way.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Thank you for that answer.

Another concern that I've had raised by farmers about the Canada Grain Act has to do with their ability to schedule sales with futures contracts for their production.

It's my understanding that in the United States agricultural commodities traders are required to report publicly to the U.S. Department of Agriculture for the quantities and the prices per bushel of what they export and sell, but here in Canada, commodities traders are not required to publicly report the prices per tonne for what agricultural commodities they sell. That leaves Canadian farmers at a disadvantage as they negotiate futures contracts to sell the commodities they produce.

What it means is that, while Canadian commodities traders are getting record prices for commodities exports, many farmers are not seeing those record prices reflected in futures contracts.

I'm just wondering if there are any plans to put in place a requirement similar to that in the United States, to require agricultural commodities traders to report these publicly, both for volumes and exports, and for the prices they receive for those commodities exports.

[Chris Forbes]

Thanks for the question, Ms. Rood.

I was unaware of the U.S. requirement. I think I would simply answer that, to the extent this comes up as part of the consultations or other discussions as part of the Canada Grain Act review, I think certainly we're willing to listen and consider the issues that are raised. If this is a concern that comes up in the consultations, we'll be very happy to take a look at it and see what can be done about it.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Thank you, Mr. Forbes.

I've also been hearing from stakeholders in agriculture that much of the department's research funding has been reallocated to other purposes. The industry is concerned that the department appears to be off-loading its research funding role to the private sector and that the private sector will want to protect the results of this research as intellectual property.

Deputy Minister, could you comment on the extent of the department's funding research to support farmers, producers and processors in the agriculture and agri-food sector?

[Chris Forbes]

Yes, it's an interesting comment, Ms. Rood, because I would say it's quite the contrary. Our science and research budget has been rising in recent years.

We're in the midst of and towards the tail end of a big increase in staffing to hire more research scientists across the country. The funding for areas like the agriscience clusters and other projects has been, in the worst case, stable, and in some cases is rising. We've talked a bit in previous answers about the living laboratories, which, as you know, is an increase in our activities.

I would say that overall I think our science and research funding has been growing and our staffing has picked up to help deal both with short-term needs and also with the impending potential retirements of scientists, just given the demographics of the science community.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Thank you very much.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Forbes.

Thank you, Ms. Rood.

Now we have Mr. Blois for five minutes.

Go ahead, Mr. Blois.

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

Thank you, Mr. Chair.

I'll start with Mr. Forbes again. This committee put forward the processing study—or at least it was tabled in the House of Commons—and I don't know if you've had the chance to look over it directly. Of course, one of the recommendations was on the temporary foreign worker program, which is around 10% in agri-food businesses.

The Harper government, as I understand it, cut this program from what used to be 20% and brought it back down to 10%. The committee is recommending that it go up higher and did not necessarily put a number on that.

Yes, this is something that can be at the political level in terms of my own colleagues, but from the administrative level, the bureaucratic level, Mr. Forbes, is this something that you think the department is amenable to in terms of working with other departments to make this a reality?

[Chris Forbes]

Thanks for the question, Mr. Blois.

I would say that from our level we certainly have heard for a long time about the challenges that processors and others face in terms of attracting year-round labour to support their activities, and certainly the 10% cap has been an issue for a number of years. I would say that we do engage a lot with the department—ESDC, Employment and Social Development Canada—that is charged with that, and again, as I mentioned previously, in making sure that the sector's perspective and the understanding of the hiring efforts that are undergone are well understood and documented.

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

Yes, you can look at it. I appreciate that.

One thing that I guess I'd go on record as saying is that of course we have the western live price index, which stakeholders have talked about at this committee. I understand that there are some provincial iterations like Quebec's and Ontario's. We don't have a massive beef industry in the Maritimes, but there are a number of producers that are important to their particular communities.

My understanding is that the Canadian Cattlemen's Association and perhaps the Maritime Beef Council are looking at trying to pilot some administrative work on the way that they could incorporate the Maritimes into those other indexes across the country eventually.

Is this something that you're aware of, Mr. Forbes? I know that there's a lot going on and you're running a $3-billion agency, but is this something you're aware of? Is this something for which you can at least take away my comments today about the importance of what this would mean in the region?

[Chris Forbes]

I certainly will take that away, Mr. Blois. In fact, as you might imagine, the Canadian Cattlemen's Association and others have raised this with us on a number of occasions. We certainly know that it's a priority for them and for the sector in Atlantic Canada, but also nationally, to extend this. Yes, we're well aware that it is a priority.

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

I appreciate that.

You mentioned, of course, that there's ongoing work around trade and engaging countries and trying to make sure that we have open markets. This is a broader question for you, Mr. Forbes. In sitting here today looking at the way of the world and particularly on the other side of the pandemic, my concern is about protectionist measures in countries, which I think in some cases—and respectfully and rightfully so—are looking at domestic capacity.

That's a good thing, but given the fact that a large proportion of our commodities is export based, is this something that is on your mind as the deputy minister of Agriculture and Agri-Food Canada, and on the minds of your officials, to make sure that we have the resources and the expertise to be protecting our ability to export into these markets beyond what you're already doing?

Do we have some level of concern in the days ahead? I know that no one has a crystal ball, but can you speak to that broadly?

[Chris Forbes]

Thanks, Mr. Blois. I have two quick comments.

One is that I think the good news is that agriculture and food trade held up pretty well over the course of the pandemic. It was mentioned that we had record exports. Food moved around the globe as part of food security for many people, so I think there is some good news there—not that we're without our difficulties.

I would say that it is one of the top priorities—if not the top priority—for the department. We spend a lot of time engaging with export markets with our colleagues at Global Affairs, with embassies around the country and obviously with high commissions and embassies here in Canada, our representatives here, to make sure our issues are well understood and to advocate for our sector. As you say, it's a very export-oriented sector. We want to make sure they have the opportunity to take advantage of demand elsewhere in the world.

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

I have about 45 seconds, according to my clock.

On CAP 2023, I know that this is inherently a political exercise as well, between provinces and territories and the federal government, but is there anything you can share with this committee from an administrative perspective, from a departmental level, that you're looking at in terms of priorities, without perhaps breaking the cone of silence on advice you might be giving your minister?

[Chris Forbes]

Thank you, Mr. Blois.

I think I'll say that we have a number of existing priorities around the economic strength of the sector, around its environmental sustainability and around public trust and others. Those will certainly I think remain priorities for my provincial colleagues, for me and for the sector.

This engagement on the next policy framework is starting soon. Provincially, it's happening. Federally, it will happen with stakeholders. I think what we'll see is that there's a great alignment of federal and provincial priorities and with the stakeholders and the sector. I think we'll try to refine and deepen some of the successes we've had over the past frameworks.

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

Thank you, Mr. Forbes.

Thank you, Mr. Chair.

[The Chair, Liberal, Pat Finnigan]

Thanks to all of you. That is the end of our question round.

I want to thank, from the Canadian Food Inspection Agency, Madam Sylvie Lapointe, vice-president, policy and programs branch. Also, from the Department of Agriculture and Agri-Food, Mr. Chris Forbes, deputy minister, thank you again for coming to our committee.

As well, thank you to Ms. Christine Walker, assistant deputy minister, corporate management branch, who will now leave for the Treasury Board, I believe. We really want to wish you a good future in your new endeavour. On behalf of the committee, I wish you the best.

The officials can be excused.

I'll ask the members to stay so we can vote on the main estimates.

I believe you all have the paperwork. You pretty much know how this works, so we'll go to the different votes.

CANADIAN DAIRY COMMISSION

Vote 1—Program expenditures..........$4,094,435

(Vote 1 agreed to on division)

CANADIAN GRAIN COMMISSION

Vote 1—Program expenditures.......... $5,237,236

(Vote 1 agreed to on division)

DEPARTMENT OF AGRICULTURE AND AGRI-FOOD

Vote 1—Operating expenditures..........$605,035,536

Vote 5—Capital expenditures..........$49,005,131

Vote 10—Grants and contributions..........$407,506,869

(Votes 1, 5 and 10 agreed to on division)

That's the end of our vote.

Shall I table the estimates in the House?

[Some hon. members]

Agreed.

[The Chair, Liberal, Pat Finnigan]

We're all in agreement, so I'll probably table it tomorrow.

With that, I thank you all.

As a final word of parting, go, Habs, go! Do I hear “on division” on that?

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

It's definitely “on division” on that.

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

On division.

[The Chair, Liberal, Pat Finnigan]

Thanks, everyone.

We'll see you next week.