Agriculture Committee on Dec. 8th, 2025

[The Chair, Liberal, Michael Coteau]

I would like to call the meeting to order.

Welcome to meeting number 19 of the Standing Committee on Agriculture and Agri-Food. Today's meeting is taking place in a hybrid format, pursuant to the Standing Orders. Members are attending in person in the room and remotely using the Zoom application.

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Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, November 24, 2025, the committee is commencing its study of the supplementary estimates (B) 2025-26.

With us today is the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food. He is joined by officials from the Department of Agriculture and Agri-Food and the Canadian Food Inspection Agency.

Minister, I'd like to welcome you and your colleagues back to the committee. This is your second time. We appreciate your being here.

I'll open up the floor to you, Minister. You have five minutes for opening remarks.

[Heath MacDonald, Liberal, Minister of Agriculture and Agri-Food]

Thank you, Chair. It's great to be here.

Hello, everyone.

It's been a busy few weeks since we last met. Just after our meeting, I had a great trip to British Columbia. I connected with farmers and food processors from a wide range of sectors, including fruit growers, greenhouse farmers and value-added food processors, as well as a vitamin maker who exports to 45 countries. I was also able to sit down with Minister Popham to look at B.C.'s priorities for the next policy framework, which begin in 2028.

At the end of October, I led a mission to China. As you know, China is our number two customer for agriculture, agri-food and seafood. We worked to strengthen our presence and partnership in China, and we continue to recalibrate the relationship.

I have to say that our Chinese hosts were very receptive, and we had some open and honest discussions. We were able to listen to our stakeholders and see the opportunities and challenges first-hand. It's so important to meet in person, put a face to a name and build those relationships.

In Beijing, I had the opportunity to officially open a Canadian meat advocacy office, which will give Canadian producers boots on the ground to connect directly with our customers and meet their needs. It was great to see first-hand how our Canadian brand for quality continues to grow in China.

We also met with senior Chinese officials, including the Chinese minister responsible for general administration of customs for China, which is their equivalent to the CFIA. I raised the serious market access issues that we still have with China, including the tariffs on our canola, seafood, pork and peas. One positive sign was their willingness to restart the work of the bilateral technical working groups, which is a critical step to being able to address regulatory barriers.

I was there just after the Prime Minister's successful meeting with President Xi and during Minister Anand's visit. Along with my cabinet colleagues, I'm also committed to keeping the conversation going while looking for ways to support our producers, processors and exporters.

At the same time, we continue to help all farmers cope with financial challenges due to market disruptions and increased costs as well as other challenges. Last week, I was honoured to speak at the 101st UPA congress in Quebec City. I was able to have a round table with producers, tour the Ideal Can facility and visit Université Laval to see the important work it's doing in science and research in the agriculture and agri-food space.

As outlined in these estimates, we are investing $108 million to enhance the AgriStability program, increasing the compensation rate for farmers from 80% to 90% and raising the payment cap per farm from $3 million to $6 million. The AgriStability improvements are part of an envelope in budget 2025 totalling more than $639 million over five years: $75 million for the AgriMarketing program to enhance and diversify products and promote them to new markets; $97.5 million to increase the advance payments program's interest-free limit to $500,000 for canola advances for the 2025 and 2026 program years; and $372 million to establish a biofuel production incentive to support the stability and resilience of domestic producers in biodiesel and renewable diesel.

In addition, Farm Credit Canada is launching a trade disruption customer support program to make available $1 billion in new lending to help reduce financial barriers for the Canadian agriculture and food industry. We've also responded to the cattle sector by making pasture-related feed costs eligible under AgriStability and are seeking the required consensus from other jurisdictions.

To help producers meet their labour needs, budget 2025 proposes to provide $307 million to the youth employment and skills strategy to provide employment, training and other support to about 20,000 young people a year, including in ag.

The industry was also very positive about other measures in budget 2025: the cancellation of the proposed increase in the capital gains inclusion rate so that family farms can continue their succession; a proposed investment of $5 billion over seven years to create the trade diversification corridors fund to strengthen supply chains and unlock new export opportunities; $76 million to help the CFIA support digital trade tools, replacing paperwork and cutting red tape for our agri-food exporters; $32.8 million to help the CFIA secure, expand and restore market access for Canadian agriculture; a new strategic exports office; and nearly $186 million for the new buy Canadian policy, which focuses on made-in-Canada products.

Our government has been putting Canadian farmers, processors and agribusinesses at the heart of nation-building efforts. Every time the government invests in agriculture, we'll do so in a way that strengthens our farm businesses, our jobs, our supply chains and our food security.

Thank you, Mr. Chair. I look forward to our discussion.

[The Chair, Liberal, Michael Coteau]

Thank you very much, Minister.

We'll go to the Conservatives first.

For six minutes, we have Mr. Barlow.

[John Barlow, Conservative, Foothills, AB]

Thanks, Chair.

Minister, the last time you were here, you gave us vocal support—I think it was the second time you'd said it publicly—that you would support the emergency-use application from Alberta and Saskatchewan on strychnine. It's now been more than two months since Alberta and Saskatchewan submitted their emergency-use application, yet they have not heard a response.

I'm hoping that today you can let us know on which date you will finalize the approval of those applications. We've certainly heard from ag retailers, municipalities and agriculture service boards that to source strychnine, they need an answer as quickly as possible.

On what date will your support for this application be official?

[Heath MacDonald, Liberal, Malpeque, PE]

Mr. Barlow, I think I stated clearly that I would support the application and support it through Agriculture and Agri-Food Canada. The final decision doesn't lie with me. I said bluntly and I said publicly many times that I would support the initiative.

All I can do at this point in time is reinforce my commitment to ensuring that the Department of Health, which is fully responsible in this regard, continues to look at this in an expeditious way. I fully understand—

[John Barlow, Conservative, Foothills, AB]

Okay. Thanks, Minister.

You're going to be just like every other Liberal agriculture minister. You're going to do what you're told rather than advocating for farmers and making sure they have a voice at the cabinet table. It's very frustrating. I think all of us were hoping for something new.

When you were with us before, you also talked about the Prime Minister saying that he wants an “economic lens” put on everything. We also had CFIA and PMRA officials here. We asked them if they were going to listen to the government's mandate—that you also supported in the election platform, as Conservatives did—that there needs to be an economic lens and an idea of food security when it comes to the decisions of CFIA and PMRA. The CFIA and PMRA officials said there was no need for them to change their mandate. They think it's already happening, but I think we heard from every single stakeholder during our red tape reduction study that this is certainly not the case.

Are you going to make sure that PMRA and CFIA have an economic lens and a food security lens on every decision they make?

[Heath MacDonald, Liberal, Malpeque, PE]

I think it's extremely important. I would make reference to the USDA. I think they do that as well.

First and foremost, we need to reassure, because as I travel around the world and talk about exports, food safety is number one with all the countries we're dealing with and all our trading partners. I will endorse the economic lens without a doubt. I have been talking about it and I will continue to talk about it. I will continue to push CFIA and PMRA. It has to happen in the decisions they're making.

[John Barlow, Conservative, Foothills, AB]

Thank you.

Your department gave $8.5 million to the failed cricket farm that declared bankruptcy, but it was recently sold. How much of the $8.5 million did your department recoup from the sale of that operation?

[Heath MacDonald, Liberal, Malpeque, PE]

I'm not as familiar with that file as I maybe should be. The cricket farm situation was before my time. I'll certainly look into it and get back to you on it.

[John Barlow, Conservative, Foothills, AB]

Farm Credit Canada gave them $40 million. I'd like to know how much Farm Credit Canada recouped of that $40 million from this failed project.

Speaking of Farm Credit Canada, we recently saw in the media that the CEO of Farm Credit Canada has billed taxpayers almost $315,000 in travel expenses. Just to put that into perspective, that's three times the amount the agriculture minister has charged taxpayers for travel expenses.

Do you support the immense travel expenses that the CEO of Farm Credit Canada is charging to the taxpayer?

[Heath MacDonald, Liberal, Malpeque, PE]

Well, I saw the story. I think the frame around the story is not likely something I would have used, but I will say this. I've travelled to many provinces, including Alberta, where about $8 billion from Farm Credit Canada is invested. I was in Quebec last week, where it's about $6.1 billion. I think it's extremely important to remind people of how important Farm Credit Canada is to ranchers and producers across this country. I hear it all the time.

I will continue to work on this and see what the relevance is of the story that came out. I will have an opinion at that time, but I can tell you that FCC is really important.

[John Barlow, Conservative, Foothills, AB]

Thanks, Minister. I'd appreciate you getting back to us on that.

We've been getting a number of emails and calls from FCC employees who are very frustrated with the leadership of the current CEO. This is just one aspect of it. We have transcripts, which are now also in the media, that in a recent discussion with staff, she was asked which politician or which leader she admired the most. She said it was Fidel Castro, for his courage and his commitment to his values.

Do you believe that is a value Farm Credit Canada should be sharing with farmers and agriculture stakeholders across Canada? This is a person who represents us not only nationally but also internationally. Do you think that coincides with the values of Agriculture Canada?

[Heath MacDonald, Liberal, Malpeque, PE]

No, and I think, certainly—

[John Barlow, Conservative, Foothills, AB]

Will there be repercussions for the CEO of FCC?

[Heath MacDonald, Liberal, Malpeque, PE]

Again, I think the full story has to come to fruition. To make a statement on it without knowing all the details would be unfair to the general public, the farmers who are involved in FCC and the administration.

I will say that FCC plays a vital role in the success of farmers across the country. I want to ensure that in everything we do, we're doing the right thing, with the farmers and producers first. We'll certainly look into the administration accusations.

[John Barlow, Conservative, Foothills, AB]

Thank you, Minister.

[The Chair, Liberal, Michael Coteau]

We're going to the Liberals for six minutes.

Go ahead, MP Dandurand.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you very much.

Minister, thank you for being with us today to answer our questions.

I'm going to ask my first question in English, because I really need this answer from you for my constituents.

Supply management is vital in my riding. It helps support our local ecosystems in every region. Can you confirm that the government intends to continue to protect it in the face of external pressures, particularly from the U.S.?

[Heath MacDonald, Liberal, Malpeque, PE]

Right from the get-go, our Prime Minister has been very clear that supply management is not on the table. I spoke to 500 delegates in Quebec last week. I was asked a question from the floor, and I gave the same answer. It's non-negotiable, and we're going to fight tooth and nail for supply management.

I come from a province of 175,000 people, and we have about 140 dairy farms, so it's extremely important to my province as well. It's something we continue to deal with.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you very much.

In my region, the pork industry is very strong. However, it is also affected by external threats.

Can you tell us what the government is doing to support the pork industry?

[Heath MacDonald, Liberal, Malpeque, PE]

We continue to work on the diversification of our exports, and the pork industry leads the way. It's likely in every country I've visited now. It's established in that country...and is looking for access for more market share. We'll work alongside the pork industry.

I believe the pork industry is a very solid sector in reference to being in other countries and knowing exactly the capacity it has to be in those countries. In every trade mission I've been on so far, the pork guys have been standing shoulder to shoulder with me—the representatives from Quebec as well.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you.

Since we're talking about missions abroad, can you give us an update on Canada's Indo‑Pacific strategy and the evolution of Canada's Indo‑Pacific Agriculture and Agri‑Food Office in Manila?

[Heath MacDonald, Liberal, Malpeque, PE]

The agri-food office in Manila has been very strategic. When I was there, the connections it has, the opportunities it's raising and the awareness of Canadian products for market share are exponential in many aspects. It's certainly put a lens on the opportunities for Canada to be in that area.

The bilateral agreement is the first one an ASEAN country has signed with Canada. We're excited about it, and I think there is potential for more growth in that area, with a middle class that's growing with more disposable income. There's value added on the pork side too, especially on the protein side. It's something we look forward to.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you.

Budget 2025 talks at length about the resilience of supply chains, which are critically important for the agricultural sector. Are there any specific investments planned for agricultural infrastructure and regional processing?

In addition, how can we support SMEs that are not necessarily SME exporters?

[Heath MacDonald, Liberal, Malpeque, PE]

When you talk about the infrastructure side of things, if you take the port of Montreal with Contrecoeur, there's a trickle-down effect for all suppliers and all farmers at every level. To get goods to market, we need to be more adaptable and quicker, obviously.

Every time we invest in a port, whether it's the port of Churchill or port of Vancouver, or the rails, it's extremely important for agriculture. It's been a long time coming, as far as I'm concerned, from what we're reading and what we understand about it. Anything we can do to make exporting easier is something we'll continue to do. I look forward to some of these nation-building projects.