Thank you very much.
Thank you, Mr. Chair and committee, for having the Canola Council here today. My name is Jim Everson. I'm president of the Canola Council of Canada.
The council, as you probably know, encompasses all aspects of the value chain—all the growers of canola, the processors, exporters and others. They work together to grow the industry. The industry is worth $30 billion to the Canadian economy and is the most valuable field crop that Canadian farmers produce.
Let me start by saying that any discussion on the environmental contribution of agriculture must take place in the context of recognizing the relationship to the other two legs of the sustainability stool—economic and social—and must also recognize that these are not mutually exclusive but interdependent. Canola and its production systems are part of a healthy agriculture ecosystem that has evolved and continues to evolve to enable biodiversity, to sequester carbon and to produce more canola per acre than ever before. This is reflected as part of our current strategic plan and other efforts that we undertake. Those efforts include recognition of the following.
The first is soil and water health. Soil obviously is an essential resource for agriculture. Preserving topsoil not only helps retain organic matter but also keeps more carbon stored safely in the earth and keeps land fertile, productive and profitable for farmers. As canola has displaced summerfallow on the Prairies and helped enable the adoption of conservation tillage, hundreds of millions of tonnes of topsoil and organic matter are preserved, as are the carbon and nutrients that are stored within.
In addition to benefiting soil and water health, canola also helps reduce greenhouse gas emissions. Thanks to its potential for carbon sequestration, agriculture was deemed to be the economic sector with the greatest near-term potential to mitigate GHGs by the Intergovernmental Panel on Climate Change's fifth assessment. Responsible farming practices allow Canadian farmers to sequester 11 million tonnes of GHG in their fields each year. Approximately 70% of all carbon sequestered by Canadian field crops is due to canola.
As we look to increase yields and build our productivity in line with our strategic plan, canola has the potential to capture and sequester significant additional carbon moving forward. This is a prime example of the economy and the environment going hand in hand. Land use efficiency is all about generating more food from the same amount of land that is already being farmed. By adopting leading-edge genetic traits, including herbicide tolerance and disease resistance, as well as innovations in crop protection and nutrient management, Canadian farmers are able to produce more canola per acre while maintaining the same farmland footprint. In fact, the canola industry has a goal of reducing the amount of land required to produce one tonne of canola by 40%.
We're also reducing energy use through innovations in machinery and agronomic practices, and protecting biodiversity where there's a range of really beneficial insects within the canola canopy. As an innovative and forward-looking industry, we recognize that new innovations will provide us with the opportunity to produce canola even more sustainably in the future.
New innovations and policy developments have also positioned Canadian canola as a major climate solutions provider for other sectors of the economy as well. With the development and finalization of the clean fuel regulations by the government here in Canada almost complete, there is a significant opportunity for canola to be a feedstock of choice for Canada's biofuels market, which will help reduce emissions in the transportation sector, the most GHG-intensive sector of our economy. Doing so will both reduce emissions and help cement Canada's position in the processing and renewable fuels space.
That said, a number of considerations must inform our ongoing efforts and work.
First among those is recognition that demand signals for canola seed, oil and meal are very strong for the foreseeable future. Accordingly, while we remain committed to doing even more, the reality is that the world wants and needs more canola. We need growers, industry and government to work in partnership to meet the food and energy security objectives while also reducing and continually improving performance on environmental objectives. We must also recognize that while farming practices are an important component of those emission reduction efforts, they can only go so far.
Second, partnership should focus on smart investment and incentives, not regulating away the production tools that farmers rely on, such as fertilizer and safe, highly regulated crop protection products. Like in all sectors of the Canadian economy, the shift to a net-zero carbon economy in agriculture is a major transformation. Canadian growers need to be supported on this journey, not disadvantaged.
Third, recognize that Canada's grain and oilseeds sector is dependent on maintaining competitiveness in global markets. Ninety per cent of Canadian canola production goes to export. As Canada takes steps to improve environmental outcomes, we need to do so without adding costs that render our top-quality products less competitive.
Thank you, Mr. Chair. I see you nodding at me, so I'll move on and allow the next speaker to speak.