Agriculture Committee on Dec. 7th, 2022

[Chris Forbes]

I'm not sure it's a number that we would collect, because we don't set the tariffs, obviously, or collect the funds. The Department of Finance or the trade department would have that.

[John Nater, Conservative, Perth—Wellington, ON]

Has the department undertaken any kind of analysis on the impact that this tariff has had on Canadian farmers?

[Chris Forbes]

We certainly have talked extensively, going back to last February, with both suppliers and producer groups about challenges and availability of fertilizer.

The price of fertilizer, as you know, was an issue before the Russian invasion of Ukraine, and it's obviously risen since then. We've had lots of discussions to understand the on-the-ground impact and the availability of fertilizer, particularly last year as we were going into the growing season, and this year as we're preparing for next year's growing season.

[John Nater, Conservative, Perth—Wellington, ON]

Not wanting to put words in your mouth, could you tell us what the results of those discussions have been? What have the stakeholder groups and farmers been saying?

[Chris Forbes]

One key thing we've been looking for is making sure that fertilizer was available—making sure that the suppliers were able to get fertilizer to distribute to farmers. Certainly, while there were some worries, the feedback last year and this fall is that we're in pretty good shape in terms of fertilizer availability.

I would say also that there are concerns about prices for producers, which are, I think, definitely part of a larger concern about costs of goods in a fairly high-inflation environment.

[John Nater, Conservative, Perth—Wellington, ON]

Just confirming what we heard earlier from the minister, there is not currently any plan to rebate those funds, which we understand are about $34.1 million, according to a recent Order Paper question. There is no plan to directly rebate that to farmers and farm businesses that have been impacted.

[Chris Forbes]

What I took from the minister's response was that it's very difficult to rebate the money to the end-consumers because the tariff wasn't paid by farmers directly; it was paid by companies bringing the product in. She was looking at, and discussing with the sector, whether there were options to help support them in dealing with this situation.

[John Nater, Conservative, Perth—Wellington, ON]

We know the labour shortages are having a significant impact in the agriculture and agri-food industry, particularly, I might say, in the processing capacity.

What analysis has the department undertaken on the economic impact that this lack of labour is having on the agriculture industry, particularly in the processing sector?

[Chris Forbes]

Thanks for the question. We hear this a lot.

We discuss it with the processing sector and obviously with producers as well. There are huge parts of the primary agriculture sector that rely on temporary workers and other seasonal workers to produce their products. We've had lots of studies done. I think the Canadian Agricultural Human Resource Council is a good source of information; I don't have any of their numbers right in front of me. Obviously, the Meat Council and others have done some good work in this area.

When you talk to individual companies, there are obviously shortages in some skilled and lower-skilled trades, which are impacting their ability to produce.

[John Nater, Conservative, Perth—Wellington, ON]

“Canada's Food Price Report” came out earlier this week. They suggest that a 5,000-acre farm would see a carbon tax of about $150,000 by 2030. Would you agree with that number?

[Chris Forbes]

I haven't done the math; I can't agree or disagree with it.

[John Nater, Conservative, Perth—Wellington, ON]

We heard a question earlier about the vaccine bank. Basically, the assumption is that there won't be a joint bank. Has the department provided any analysis or set aside any funds to have a Canada-only vaccine bank?

[Chris Forbes]

As the minister said, we're definitely in discussions on this question. We hear a lot about it from the sector and we hear worry about being prepared.

As for how that will roll out, we've certainly discussed with the provinces and with industry about the possibility and how we might go forward on that. I think those discussions are ongoing.

[John Nater, Conservative, Perth—Wellington, ON]

I'm the member of Parliament with the most chicken farmers in the country. Certainly there's real concern in my communities about avian flu. That's my segue to provide my last minute to Monsieur Lehoux, who wants to ask about avian influenza.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you.

Mr. Morel, we know that there have been no inspections in Ukrainian factories since 2019. You are relying on our Ukrainian colleagues, but given what has happened there and the destruction of several facilities there, can we really be sure of the safety of their products? I'm not saying we shouldn't trust them, but have you taken any precautions?

[Philippe Morel, Vice-President, Operations, Canadian Food Inspection Agency]

Yes. Under the process in place, the Ukrainians have to do inspections, and the last one was in 2019, as you mentioned. Then they have to put in place monitoring plans and prepare documentation. For their part, those who import chicken from Ukraine must ensure that all this documentation is provided and that the product is inspected at their plant. We are confident that if chicken is imported from Ukraine...

[Richard Lehoux, Conservative, Beauce, QC]

If there are larger than expected arrivals, will border services have the resources to check everything?

[Philippe Morel]

Yes, we would have the resources.

As the minister mentioned earlier, we will inspect the first 10 arrivals. Depending on what we find, the risk analysis will determine whether we need to do inspections on a more regular basis, or on a random basis as we do with imports from other countries. It's always based on the risk and the origin of the product.

[The Chair, Liberal, Kody Blois]

Thank you very much, Mr Morel.

Mr. Lehoux, I gave you almost 30 seconds more. That was your Christmas present.

[Some hon. members]

Ha, ha!

[Richard Lehoux, Conservative, Beauce, QC]

You're too generous, Mr. Chair.

[The Chair, Liberal, Kody Blois]

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

[Ryan Turnbull, Liberal, Whitby, ON]

I hope I will benefit from the same kindness and leniency, Mr. Chair.

[Some hon. members]

Oh, oh!

[Ryan Turnbull, Liberal, Whitby, ON]

I appreciate our witnesses' presence today and the great work they do every day for the agricultural industry.

I have some questions regarding supplementary estimates (B). I want to understand. The on-farm climate action fund and the agricultural clean technology program are, I think, two important pieces of the overall support programs the federal government offers. Have you done an assessment of the need or demand for those two programs?

The other aspect I would like to understand—could benefit from understanding a bit—is how needs may differ among small, medium or large farms. It would be great if you could also speak to that.