Agriculture Committee on Oct. 19th, 2022

[The Chair, Liberal, Kody Blois]

You have 45 seconds.

[Ryan Turnbull, Liberal, Whitby, ON]

Mr. MacDonald, I'll go to you.

I read your report from CN on intermodal transportation, which I thought was quite good. I note there was a really good piece in there on the GHG reductions that can be achieved with further rail transport, which I think was really great to see.

You also mentioned that funding innovation was going to be key in streamlining processes for infrastructure funding. Can you give us a little more detail on what innovations you're speaking of, other than automation, because I noted that? Is there anywhere else within the intermodal system that CN works with where there are opportunities for innovation?

[The Chair, Liberal, Kody Blois]

Mr. MacDonald, I hate to be cold water. Unfortunately, Mr. Turnbull, you had 45 seconds, and the preamble was about 45.

Mr. MacDonald, I know you'll get another opportunity, so my apologies. Perhaps you'll table that one.

Mr. Perron, you have the floor for six minutes.

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

Thank you very much, Mr. Chair.

Thank you to the witnesses for being with us today.

My first question is for the individuals from the Union des producteurs agricoles, or UPA; specifically, for Mr. Caron.

Last May, you addressed two levels of government to alert and inform them about the unusual inflationary environment and the increase in input costs. You also asked them for support.

My first question is this: Since the month of May, have you received an answer about this at the federal level?

[Martin Caron]

[Technical difficulty]

[The Chair, Liberal, Kody Blois]

I’m sorry, Mr. Caron. I think there is an internet connection problem.

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

Mr. Tougas could answer my question, in the meantime.

Can you tell us whether the federal government responded to the letter sent in May? Were there discussions or anything else?

In his remarks, Mr. Caron talked about the Canada Emergency Business Account, among other things, and about having some sort of specific assistance program to prevent farm closures. Were there any discussions on this? Is something happening along those lines, or has there been nothing since the month of May?

[David Tougas]

As far as we are concerned, we have not had any direct discussions regarding these requests. However, there were other relatively positive discussions about agri-environmental initiatives. That said, to my knowledge, there have been no specific developments since last spring on the matter of Canada Emergency Business Accounts.

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

Mr. Caron, your image seems more stable than it was earlier, so let’s try again.

You asked both levels of government to act quickly. However, as I understand it, not much has happened. In order to reemphasize the need you expressed, could you tell us about the current situation for start-ups, including the impact of rising interest rates?

[Martin Caron]

[Technical difficulty]

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

It’s not working, Mr. Caron.

[The Chair, Liberal, Kody Blois]

I’m sorry, Mr. Caron.

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

I will ask Mr. Tougas to answer my question.

[David Tougas]

Actually, start-ups are generally more indebted than the average farm business. Furthermore, the average debt ratio of Canadian and Quebec farm businesses has increased significantly in the last few years, for all sorts of reasons. Many have complied with new environmental or animal welfare standards.

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

Are you concerned about closures if there is no support or if measures aren’t taken?

[David Tougas]

The increase in interest rates announced since the beginning of the year will certainly put pressure on a number of agricultural businesses and, in particular, on next-generation businesses. So, yes, it will probably increase the rate of closures.

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

So, you’re expressing a need for support that could take the form of an emergency account or something else, but there has to be something. Would you recommend that to the committee?

[David Tougas]

I will let the president comment on that.

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

Yes, but the president doesn’t have internet.

[David Tougas]

That is indeed our request.

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

Perfect. Thank you.

In your remarks, you also talked about supply management. We know my preference for this system. It works well, is safe and is stable.

Do you have a recommendation to make to the committee to protect and sustain supply-managed production sectors, which ensure food security?

[David Tougas]

Indeed, as the president mentioned in his speech, supply management is entirely consistent with self-sufficiency and food security. That means we really must preserve the system to keep its advantages for productions that benefit from it, such as milk, poultry and eggs. That means excluding this system from the next trade negotiations and preserving it in its entirety, especially in the current environment, which poses risks for food supply chains. It has never been more important to preserve this system.

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

All right. Thank you.

Would you be in favour of protecting it through legislation?

[David Tougas]

If it’s necessary, why not?

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

Very well.

I will now talk about the workforce. You will have about 30 seconds to answer. According to the president’s earlier statement, access to foreign labour is difficult. Do you have one or two specific recommendations to help your business get access to these workers?