Agriculture Committee on Feb. 12th, 2026

[The Chair, Liberal, Michael Coteau]

We will go to the Liberals for five minutes, with MP Paul Connors.

[Paul Connors, Liberal, Avalon, NL]

Good day, Mr. Minister. I thank you for coming out to meet with the committee again today.

I have a question that just came to me as we were talking about science and research. Can you tell me where agriculture ranks when it comes to science and research conducted within the government overall?

[Heath MacDonald, Liberal, Malpeque, PE]

There are lots of science departments, but the research we do is more than 50% of our budget, so even with the changes we're making, we'll still be the largest science centre, per se, in the country. We'll continue to build on that.

I think there will be a lot of changes over the course of the next few years in agriculture, even after what we do here today. There are going to be changes, because the world is changing. AI is going to play a significant part in agriculture research, and it's something we need to adopt and adapt to quickly for the farmers' sake.

[Paul Connors, Liberal, Avalon, NL]

This is a comment on a comment you made. You said previously it is not the farmers who are making the excessive profits. I think that's very important for people to hear, because people do think farmers are making excessive profits, especially the farmers in Newfoundland and Labrador, for whom I worked for so many years. The profits are probably not made at the farm gate. They're made throughout the line, and I think it's important for people to hear that.

If you have any further comments on that, I'd like to hear them, but you don't have to comment.

[Heath MacDonald, Liberal, Malpeque, PE]

The costs to farms have risen. Land is more expensive. Input costs are more expensive. When you look at farm gate yields, they're not necessarily translating into what it's costing farmers to farm today.

You talked a bit about retail. It can be frustrating for anybody who pays attention to the cost at the retail shelf and what the farmer is getting at the farm gate.

[Paul Connors, Liberal, Avalon, NL]

Thank you very much for that comment.

There's an article that was put out titled “U.S. agriculture groups launch campaign backing trade deal with Canada, Mexico”. It goes on to say, “Coalition touts benefits of CUSMA to rural America, key voting block for Trump” and the party down there.

Do you have any comments on that? What have you heard from farmers in the U.S.?

[Heath MacDonald, Liberal, Malpeque, PE]

Our industries are integrated. In any conversation I had with Secretary Rollins, that was acknowledged.

I know the official opposition asked about going to Mexico and whether there are any impediments there relevant to the CUSMA trade talks. On my way home from Mexico, I'll be stopping in Washington with a negotiating team to meet with Secretary Rollins, so we'll be having those conversations.

I think person-to-person dialogue is extremely important. I think the U.S., as you're aware, in that article.... There have been other letters written to Washington about how important it is that these two countries live side by side—our neighbours do a tremendous amount of business—and how negative a disruption in CUSMA could be to both economies. I think they're starting to realize it, and they're starting to speak up. It's something that we look forward to.

Certainly, if there are any farmers out there listening, they should reach out to farmers in the U.S. and have those conversations with the people they know. We do a lot of business. There are a lot of friends. There are even relatives in the U.S., and we need to be talking to them on a daily basis.

[Paul Connors, Liberal, Avalon, NL]

I'll just finish off with a comment.

This week, I met with some peat moss farmers. One from Newfoundland is expanding his business in Grand Falls, moving to Gander and hiring new people. I think he told us that, of peat moss producers across the country, 80% of their market goes into the United States.

[The Chair, Liberal, Michael Coteau]

Thank you very much.

We'll go to the Bloc Québécois with Mr. Lemire for two and a half minutes.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you, Mr. Chair.

In 2023, Abitibi-Ouest experienced a drought mixed with winter frost and wildfires. In that context, it was very difficult to access insurance programs, which forced several farms to sell animals or go into debt to buy hay.

Can we expect more changes in agricultural programs to ensure that the mechanisms are more suitable and that the funds reach farmers?

[Heath MacDonald, Liberal, Malpeque, PE]

That's certainly not the first time I've heard about this type of issue. I think the national policy framework is a place where BRM is likely going to be the top line item discussed in every conversation. I think part of what you're saying or asking is basically going to be a large part of the overall discussion in every province in this country. We get a look at ways to expedite getting those funds into the farmers' hands a lot quicker. That's something that's certainly on our radar.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

The enhancement of the AgriMarketing program seems to focus on exports.

I wonder when we'll focus more on making our agricultural products available to people here. Our food standards are among the best in the world, and our environmental laws are among the most stringent. We import products from elsewhere and, in my opinion, we don't eat enough local products.

Instead of investing in international marketing, can we focus on short supply chains, processing, local slaughtering and reducing transportation costs to ensure that local products are more available on shelves here?

[Heath MacDonald, Liberal, Malpeque, PE]

Certainly, a lot of the stuff that we import are the fruits and vegetables that we don't grow. People use lettuce all the time.... When we talk about the cost, if it's coming from California and there's a drought in California....

It's kind of like our chicken farms in the Lower Mainland of British Columbia. The same thing happened. The price of chicken went up and came back down. That plays an integral role in that...but you're certainly right. I think the more we do here at home and become domesticated, the better off we're going to be.

That's certainly a goal of ours. You talked about agrimarketing. There is an enticement on the agrimarketing file. We include small to medium-sized enterprises in that file now. They can see the benefit of not only exporting but ramping up their domestic product as well, so it may give them even more of an incentive. It certainly is something that we're well aware of, and we need to do a better job of creating more...at home.

[The Chair, Liberal, Michael Coteau]

Conservatives, please go ahead for five minutes.

[Richard Bragdon, Conservative, Tobique—Mactaquac, NB]

Thank you, Mr. Chair.

Thank you, Minister, for being here today. Like I said before, it's always good to have a fellow Maritimer in the room.

Minister, you're well aware and you confirmed here at committee in October that P.E.I. is not infested with potato wart, yet the ministerial order remains in place and P.E.I.'s seed potato growers still cannot access key U.S. domestic markets. You also stated that $50 million had been provided to the seed growers, but the P.E.I. Potato Board wrote you a letter on December 18, 2025, and still has not received a response. In fact, they haven't received any compensation. CFIA has confirmed that it does not have the authority to pay for these losses.

When will the P.E.I. seed producers receive the compensation that was promised to them? What is your plan to restore their full market access?

These are your farmers, Minister. They are gravely concerned.

[Heath MacDonald, Liberal, Malpeque, PE]

It's extremely important; it's our biggest our crop on Prince Edward Island. The per se promises were made back three ministers ago. Since 2022, the Canadian Food Inspection Agency has disbursed over $18.3 million in compensation, including $9.7 million specifically allocated to seed potato growers.

[Richard Bragdon, Conservative, Tobique—Mactaquac, NB]

Minister, I only have a short time.

They were promised $50 million. It's been over 60 days since they wrote you a letter. They haven't received a response.

[Heath MacDonald, Liberal, Malpeque, PE]

I'm trying to tell you what the amount of money is. If I said $50 million, I want to add it up so I can show you there's $50 million.

There's $19.2 million in potato stabilization. There's $21.9 million through CASPP-100 to support the P.E.I Potato Board in efforts to divert. I will say this: It's on my radar and always will be because I live in it every day. Family, friends and relatives are potato farmers.

However, we are in a trade war with likely our biggest customer. I've been told several times by processors that are doing table stock and what have you, not to raise the red flag too high until we get through this trade war. I don't want to jeopardize McCain's or Cavendish Farms on any other market that's going into the U.S. right now. I think we have to be very thoughtful in everything that we do and say.

[Richard Bragdon, Conservative, Tobique—Mactaquac, NB]

We absolutely have to be very thoughtful.

Has this been communicated to the producers in Prince Edward Island?

I know throughout Atlantic Canada there are huge concerns about our region as it relates to agriculture being overlooked, sometimes passed by, and their concerns being neglected. One of the most recent indicators of that is the closing of the Nappan research facility for agriculture, which definitely has an impact on our beef producers, forage growers and producers in the Maritimes. This has been raised as a huge concern. We know that research is a major and meaningful component of agriculture. We have studies produced and provided by the Canadian Cattle Association that say for every $1 that is spent on research, there's a $63 return. That's an amazing return on investment for research as it relates to science and agriculture.

Yet, the Department of Agriculture seemed to find priority to fund things like gender-just rice in Vietnam, which I don't think Canadian producers and those in New Brunswick or P.E.I. are identifying as a major priority for where taxpayer dollars should be spent. Research facilities for the future of food security in Canada is a priority.

[Heath MacDonald, Liberal, Malpeque, PE]

The program you're talking about is not an ag program.

I will say this, beef production activities will be consolidated and continue in Swift Current and Lethbridge coming out of Nappan. Forage production management and breeding activities will continue at Truro. Key science positions will be retained at Truro.

I want to go back to the operational side of this. This might be an unfair statement but I'm going to say it anyway because I think it's important.

I mentioned we have $700 million in deferred maintenance. We have some properties—and I won't mention which ones—but we're up to near 45% of their budgets going into maintenance. All you people sitting around this table, some of you have businesses, some of you have farms, know you can't succeed with that. We have to make changes.

[The Chair, Liberal, Michael Coteau]

You only have 10 seconds.

[Richard Bragdon, Conservative, Tobique—Mactaquac, NB]

Who has the responsibility for the oversight of those facilities? It is your department. It is the minister and the Department of Agriculture. That responsibility falls upon the department, not on those researchers on the front line of providing good science for our producers.

[The Chair, Liberal, Michael Coteau]

Next we'll go to the Liberals for five minutes.

Welcome to our committee, Mr. MacDonald. You have five minutes.

[Kent MacDonald, Liberal, Cardigan, PE]

Thank you, Chair.

Thank you, Minister and Deputy.

I guess my colleague across the way here feels that Atlantic Canada may not be well represented by a succession of agriculture ministers from P.E.I. The current minister and the previous minister were both from Prince Edward Island.

I want to assure Atlantic Canadians that, as a member of the Liberal caucus, I am an active farmer in caucus and I'll be a strong advocate for those potato producers who are trying to re-establish a seed market with the United States. There are complicated issues there that have to be worked out. In the entire sector in Atlantic Canada, I will speak up strongly.

Minister, today I wanted to talk about the OFCAF program. I know some of my Conservative colleagues don't hold it in high regard. That's unfortunate. I wish they would take a look at how it works effectively, and I'm going to speak to that today.

In P.E.I., the OFCAF program has been in existence, as you would know, Minister, for several years. It's offering incentives for farmers to implement it and to reduce emissions. We've been talking about research and necessary realignment of research facilities in Canada. OFCAF is an on-farm research facility that's provided to farmers to make decisions right on their own farm.

We certainly see practices in P.E.I., in particular nitrogen management, cover cropping and rotational grazing. These are all things that are improving our soil health and our productivity, and we're still supporting Canada's climate goals. This current year, 290 farms or producers were supported across P.E.I. with the OFCAF program. It's well delivered by the P.E.I. Federation of Agriculture, an advocacy group for island farmers across all commodity sectors.

The other thing we should look at is that since its inception, we've covered 95,000 acres in cover cropping, 68,000 acres in nitrogen management and 15,700 acres in advanced grazing. Now we're talking about an expansion of this program. There has been $300 million announced nationally, going forward. P.E.I.'s share of that is small at $12.5 million, but it is making an impact.

In particular, I want to highlight a couple of projects that were brought to my attention.

Minister, you may know of the Mooney farms in St. Catherines, P.E.I. They did a grazing project this year, and for committee members here, I'll say they were able to do that by....

They're potato growers, but they co-operated with beef producers, and beef cows were brought to their farm. They put in an electric perimeter fence, and then they put collars on these beef cows, similar to the collars that you might use on your dog to keep it in your yard. They were able to do intensive grazing. The big knock on intensive grazing is the amount of labour it takes to move that fence every day.

This was all brought about by OFCAF. It is a successful project that's going to create co-operation to get manure on land that potato farmers are using. It will build up and protect the soil structure of that land.

On my own farm, Pondsedge Farms in Little Pond, we did a couple of different projects. We did a corn project: nitrogen enhancement. Anyone who talks about applying fertilizer to land knows it's complicated to get it on at the right time and get it incorporated. We were fortunate enough that with this nitrogen enhancement, we've seen higher yields. All the nitrogen got used up.

You know the sensitivity to nitrogen use in P.E.I. Ninety-nine per cent of people there drink groundwater, so nitrogen leaching is an issue that the Department of Agriculture on Prince Edward Island watches very closely.

Cover crop is also very important to the potato industry because we have an island surrounded by wind and water, and—

[The Chair, Liberal, Michael Coteau]

You have 30 seconds.