Agriculture Committee on May 17th, 2023

[The Chair, Liberal, Kody Blois]

I call the meeting to order.

Welcome to meeting number 64 of the Standing Committee on Agriculture and Agri-Food.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, April 24, 2023, the committee is beginning consideration of the 2023‑24 main estimates, specifically, vote 1 under Canadian Dairy Commission, vote 1 under Canadian Grain Commission, and votes 1, 5 and 10 under Department of Agriculture and Agri-Food, referred to the committee on Wednesday, February 15, 2023.

Now I would like to welcome the Honourable Marie‑Claude Bibeau, Minister of Agriculture and Agri-Food.

On behalf of the committee, Minister, I want to acknowledge your tireless work to support Canadian families and farmers. Thank you for being here today to discuss the main estimates.

Thank you very much, Minister. It's great to see you.

We also have Stefanie Beck, deputy minister of the Department of Agriculture and Agri-Food.

Let me recognize your new role and congratulate you. We wish you all the best in the days ahead in the name of our agriculture sector.

Also from the department we have Marie-Claude Guérard, assistant deputy minister, corporate management branch.

From the Canadian Food Inspection Agency, we have Sylvie Lapointe, vice-president, policy and programs; and Philippe Morel, vice-president, operations.

Colleagues, you know the drill. We'll allow for an opening statement from our minister of around five minutes.

I can give you a bit of extra time, Minister, if you'd like to finish up, after which we'll go right to questions.

The floor is yours, Minister.

[Marie-Claude Bibeau, Liberal, Minister of Agriculture and Agri-Food]

Thank you, Mr. Chair.

We are here today to discuss the 2023‑24 main estimates for the Department of Agriculture and Agri-Food.

These main estimates total more than $1.8 billion, for this fiscal year alone, but I expect total expenditures for 2023‑24 to exceed $3.8 billion. These investments illustrate yet again the government's commitment to helping Canadian farmers and food processors manage risk and become more resilient. Through these estimates, we are supporting farmers as they manage the unprecedented risks they have faced in recent years, with $769 million in funding for business risk management programs.

Keep in mind that these estimates are merely a snapshot in time. Additional investments in the year ahead will demonstrate our ongoing support for the sector, including continued funding for business risk management programs, and the new Sustainable Canadian Agricultural Partnership agreement, supported by a 25% increase in cost-shared programming funded by the federal, provincial and territorial governments.

I also want to highlight that, in budget 2023, we committed to helping farmers deal with the significant financial challenges they face, by increasing the interest-free limit for loans under the advance payments program from $250,000 to $350,000 for the 2023 program year. Combined with last year's increase to the interest-free limit, this measure will save farmers a total of nearly $84 million over two years. This further increase means that farmers will have access to the additional cash flow they need to deal with higher interest rates and input costs.

In addition to supporting economic sustainability, the funding requested through these main estimates supports agricultural resilience and the transition to sustainable agriculture, with nearly $260 million in funding for the agricultural clean technology program and the agricultural climate solutions program. That funding is part of the $1.5‑billion envelope for climate-smart agriculture programming. The investment includes the on-farm climate action fund, which helps thousands of farmers across the country adopt cover cropping, nutrient management and rotational grazing practices.

These main estimates also attest to the government's strong support for supply management, with more than $157 million in funding to help dairy, poultry and egg producers and processors cope with the impacts of trade deals with Europe and the trans-Pacific region. That investment is part of our overall commitment to provide $4.8 billion to supply-managed sectors to offset the impact of the three trade agreements, including the Canada-United States-Mexico Agreement, or CUSMA.

The support we are providing is already helping Canadian egg farmers invest in new heating, lighting and ventilation systems to improve animal welfare and save energy.

Since we last met, Mr. Chair, we have also launched our federal programs under the sustainable Canadian agricultural partnership, which will support key priorities for the sector over the next five years, including research and innovation across the value chain, action on climate change and the environment, expanding markets for Canadian exports, creating a more diverse and inclusive workforce, and public trust.

On the international stage, we continue to help our producers and processors to maximize their opportunities in the global marketplace. Last year, Canada's agriculture and food exports reached a record of close to $93 billion, not far from the target of $95 billion set by the federal, provincial and territorial ministers for 2028. That's an amazing achievement, given the many challenges farmers are facing.

To help our producers and processors diversify their markets, we will open Canada's first-ever agriculture and agri-food office in the Indo-Pacific region. The region holds significant opportunities for our agri-food sector, and it will account for two-thirds of the global middle class by 2030. Last month, I was able to strengthen our agricultural trade relationships in the region with a mission to Japan and Singapore. I can tell you that the customers there are looking for more of our world-class Canadian agri-food products.

Of course, we continue to strengthen our relationship with our largest trading partner. Last week, I was in Washington and met with Secretary Vilsack. We renewed our commitment to priorities on resilient supply chains and on making sure that trade is based on science and rules. I also raised our industry's concerns that the voluntary “Product of U.S.A.” labelling requirements could restrict trade and disrupt supply chains.

Mr. Chair, there is no question that the sector faces significant challenges, but the sector is strong, growing, and has a bright outlook for the future. Our farmers are, and will continue to be, leaders in sustainable production and innovation. We will continue to work together to help farmers keep their businesses strong and growing through investments such as the main estimates that we are discussing today.

Thank you.

[The Chair, Liberal, Kody Blois]

Thank you very much, Minister.

We will now begin the first round of questions.

Mr. Barlow, you have six minutes. Go ahead.

[John Barlow, Conservative, Foothills, AB]

Thank you very much, Mr. Chair.

Minister, have you done an economic analysis, an impact analysis, on the fuel standard and what effect it will have on farms and food prices?

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

As you know, our price on pollution is a significant tool for this government and for the country—

[John Barlow, Conservative, Foothills, AB]

There's the new fuel standard tax that's coming out. I'm not talking about the carbon tax; I'm talking about the fuel standard tax that will be coming out—just so we're clear.

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

The tools we are putting in place are there to allow this country—and the agricultural sector is part of the solution—to reach our targets to fight against climate change, and we're there to support the farmers.

[John Barlow, Conservative, Foothills, AB]

Have you done an economic analysis of the impact this fuel standard will have on transportation with regard to food prices, yes or no?

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

We collaborate with the Minister of Environment, the Department of the Environment and the Department of Finance. However, this tool, once again, is important to enable us to reach our targets, and we support the farmers in this direction.

[The Chair, Liberal, Kody Blois]

Mr. Barlow, I'm going to stop the clock. I appreciate and will be respectful of your time. You asked a question. Let's let the minister respond. I know you have to intervene because you have only so much time, but let's be mindful, okay?

[John Barlow, Conservative, Foothills, AB]

I'm trying to make it even-even. Thank you.

Minister, do you know the amount of beef imported from the United Kingdom last year to Canada?

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

We are opening up this market, and I've had the opportunity to speak, to discuss and to challenge the three ministers responsible for trade in agriculture very recently.

I know that we have some challenges in terms of the barriers. They have come here to do some technical studies, and I will keep pushing so we can export more beef over there.

[John Barlow, Conservative, Foothills, AB]

Thank you. The answer is that about 4,400 tonnes of beef was imported into Canada from the United Kingdom last year.

Do you know how much Canadian beef was exported to the United Kingdom last year?

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

As I said, I know that we can do better when it comes to our U.K. exports. It's a very important market for us. Not only is it close, but it also has growth potential. I will keep pressing my three U.K. counterparts responsible for agriculture, the environment and trade to ensure that Canada can increase its exports.

[John Barlow, Conservative, Foothills, AB]

Thank you, Minister.

The answer is zero, so there's a massive trade imbalance. We're seeing a similar trend with pork, which has gone down substantially every single year—that's Canadian pork exported to the U.K.

Why did you not prioritize addressing this trade imbalance before agreeing to the accession of the United Kingdom to the CPTPP, which seriously diminishes our strength in terms of leverage to come into agreement? Are you going to address this, as the Canadian Cattle Association have said, as a failure of this government to address that before agreeing to the accession of the U.K. to the CPTPP?

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

It's important to look at the U.K.'s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, more broadly, taking into account the various sectors of the economy. Some agricultural sectors, including corn, are benefiting. Pork exports could go up, and frozen pork is already being exported. I know there's tremendous potential, and I'm confident that we will get the non-tariff barriers imposed by the U.K. lifted.

[John Barlow, Conservative, Foothills, AB]

Have you read the PMRA's analysis on the lambda-cy pesticide?

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

I work with the Minister of Health on a variety of files involving the Pest Management Regulatory Agency, or PMRA.

[John Barlow, Conservative, Foothills, AB]

If you have read the report, you can clearly see that the PMRA has admitted that it made substantial mistakes in the science to delist or ban the lambda-cy pesticide.

Will you tell the PMRA to immediately do a reassessment on its evaluation of the lambda-cy pesticide?

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

The agency operates independently and makes science-based decisions. I can't tell the agency what to do, as you are well aware. Nevertheless, to the extent my position allows, I am encouraging the agency to do that, within reasonable limits. I wanted to understand why the decision was made, so we did our own analysis.

Canada's environmental, climate and risk landscape is different from the U.S.'s.

[John Barlow, Conservative, Foothills, AB]

Your colleague, Jenica Atwin, had a press conference asking the government to ban glyphosate in Canadian agriculture. As you know, under your government, Health Canada did a re-evaluation of glyphosate in 2017 and stated that glyphosate is safe.

When are you going to schedule a press conference to debunk the comments made by your colleague Jenica Atwin and ensure that the message is out there that glyphosate is safe for Canadian farmers to use?

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

I can assure you I understand how important it is for farmers to have access to the inputs they need to operate, including pesticides. All the studies done by the agencies show that glyphosate is safe when used as directed.

I agree with that position. I am working with the Minister of Environment and Climate Change and the Minister of Health on the matter.

[John Barlow, Conservative, Foothills, AB]

Thanks, Minister. I have time for one last question.

In the budget, the foot-and-mouth vaccine bank is there. It's good to see, but there is some wording that is concerning in terms of this being a cost share with the provinces and territories.

Is there some assurance you can give us that if the provinces cannot afford the cost sharing or do not agree to a cost share, this vaccine bank will go ahead through funding from the federal government alone?

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

We want to move ahead, and we have the money, but I think it's important.... From the first conversations we've had with the provinces, we see that there is an interest and they want all of us together to make good use of the money and to increase the money, so that we can have even more powerful action on this front. This is because it is more important for some provinces than others.

I don't necessarily expect the same level of participation, but I see interest.

[The Chair, Liberal, Kody Blois]

Thank you, Minister Bibeau, and thank you, Mr. Barlow.

We'll now turn to Ms. Taylor Roy for up to six minutes.