Evidence of meeting #28 for Agriculture and Agri-Food in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was programs.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Jurgutis  Director General, Policy, Planning and Integration Directorate, Department of Agriculture and Agri-Food
Del Bianco  Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

11:50 a.m.

Director General, Policy, Planning and Integration Directorate, Department of Agriculture and Agri-Food

Steven Jurgutis

We've already had a number of discussions with stakeholders, as well as with the provinces and territories, and there are currently four priorities we can discuss.

The first one is markets, whether diversifying international markets or markets here in Canada.

The second one is the competitiveness of the sector. That's the number one priority. This is a point that has been raised by almost every stakeholder.

The third one is resilience, not only environmental, but also financial, so in connection with business risk management.

The last one is science and innovation. These are also themes that we often discuss in our department, but also alongside the other ones.

Regarding your second question about the shortcomings of the current policy framework, I don't know if there is one in particular. I know program participants often find it complicated. It's not always easy to know how to apply and how to take advantage of all the different programs. Therefore, that's something we have to consider.

We would also like to have a little more flexibility. In other words, we would like to have fewer programs that are better able to achieve all the objectives.

Those are the two points we could raise.

On the third question, I'm going to turn to Laura.

11:50 a.m.

Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

Francesco Del Bianco

Quite frankly, it depends on who you talk to, because every industry and every province has a different perspective. Everyone has suggestions for improving the programs. It's about setting priorities and looking at the big picture.

Sophie Chatel Liberal Pontiac—Kitigan Zibi, QC

Do you have a list of proposed suggestions for improving the programs? You must have collected a number of them over time. Could you share with the committee what you've heard from stakeholders, even though we're going to hear from them here?

11:50 a.m.

Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

Francesco Del Bianco

The consultations are in early stages, so we're starting to accumulate that information. Even with the provinces, discussions are just beginning. The ministers will be meeting this summer. We're starting to collect all this information with a view to making changes in 2028. I think the other witnesses you'll be hearing from will give you more information.

Sophie Chatel Liberal Pontiac—Kitigan Zibi, QC

We will share notes. Thank you.

Do I have a little time left, Mr. Chair?

The Vice-Chair Bloc Sébastien Lemire

You have 52 seconds left.

Sophie Chatel Liberal Pontiac—Kitigan Zibi, QC

That's great.

I know that science and innovation are mentioned a lot. The witnesses told us about two models: the meat model, where the sector is very involved in innovation through the beef science cluster, and the Australian model.

Would that be something to bring up in the conversations around the next framework?

11:55 a.m.

Director General, Policy, Planning and Integration Directorate, Department of Agriculture and Agri-Food

Steven Jurgutis

That is certainly part of the AgriScience program, which has two components: the cluster program and the project program. We have already started discussions with the various sectors currently participating in the cluster component of the program, because we know that it takes a long time to consider changes to be made in the future. It's an active discussion. Certainly—

Sophie Chatel Liberal Pontiac—Kitigan Zibi, QC

It's promising, then.

11:55 a.m.

Director General, Policy, Planning and Integration Directorate, Department of Agriculture and Agri-Food

Steven Jurgutis

Yes. The idea is to address the problems and concerns of each sector and to work together to determine the type of clusters we need to have in the future.

The Vice-Chair Bloc Sébastien Lemire

Thank you, Mrs. Chatel.

As agreed, I will in turn be able to ask questions as a representative of the Bloc Québécois. I have six minutes for the first round.

Many agricultural producers find that risk management programs do not meet their needs. They've been complaining about this for a number of years. On the ground, it's even referred to as a lottery. In Abitibi‑Témiscamingue, producers located within a radius of several dozen kilometres are associated with the same weather station to determine whether or not they will ultimately be entitled to insurance benefits. It doesn't take into account their reality on the ground. However, the effects of a drought are clear: The hay doesn't grow.

Why is it so hard for them to get the help they need? In recent years, there has been an increase in events that affect agricultural production, from climate events such as droughts and floods, as have occurred recently, to international conflicts.

With that in mind, why do agricultural producers have to resort to hoping that the government will create special programs without being able to benefit from regular agricultural support programs?

11:55 a.m.

Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

Francesco Del Bianco

You brought up the example of weather stations. There are several provinces, including Quebec, that continue to look at how they can modify their programs. For example, the Saskatchewan Crop Insurance Corporation has partnered with Planet, which is a satellite company that can provide much more accurate information than meteorological stations. That is a way that programs can meet farmers' needs.

In terms of the programs themselves, we are working with the provinces to continually improve them. Those discussions are ongoing for the next framework that will be established in 2028.

The Vice-Chair Bloc Sébastien Lemire

Back home in Abitibi‑Ouest, there have been droughts, winter frost and forest fires. It was a perfect storm, yet the programs were not triggered. When we met with Minister MacDonald at the time, he said that the federal government was setting the guidelines and that Quebec was the problem. However, when we went to Quebec City, we were told that Ottawa's guidelines were too restrictive.

This ping-pong game is not to the advantage of producers, who increasingly wonder whether it's worth investing in insurance programs. If they save that money, at the end of the day, they may have better security than if they rely on a program that works one year and doesn't work the next.

Government assistance is often emergency assistance, such as lines of credit or an increase in borrowing capacity. Here again, the government is putting the burden on the shoulders of producers rather than providing solutions to deal with new crises, caused by both climate events and international conflicts.

Do you have any response to that?

11:55 a.m.

Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

The Vice-Chair Bloc Sébastien Lemire

All the programs contain many mentions of the regions. I'd like to know what your definition of a region is. As I understand, they are located in provinces, including Quebec, that have to implement the programs. Is that correct?

11:55 a.m.

Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

Francesco Del Bianco

It depends on the program. Quebec, for example, administers all the programs: AgriStability, AgriInvest and AgriInsurance. In the case of other provinces, AgriInvest is administered by the federal government. In Manitoba and the maritime provinces, with the exception of Prince Edward Island, AgriStability is administered by the federal government. AgriInsurance is administered by all the provinces.

The Vice-Chair Bloc Sébastien Lemire

Thank you for respecting the role of the provinces, but do you also look at problems at the local level? How can we ensure that we have a fair and equitable picture of local realities, particularly at a time when there are more and more budget cuts affecting the production of scientific data?

Noon

Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

Francesco Del Bianco

In terms of programs like AgriInsurance, provinces continue to develop approaches to collecting data so that programs can increasingly meet the specific needs of producers. As for insurance products, everyone is focusing on ways to use all available data to better serve farmers.

The Vice-Chair Bloc Sébastien Lemire

What are the provincial limits? For example, if a province decided to top up the crop insurance plan, the federal government would follow suit as long as the province provided its 40% share. However, if the provinces want to be more generous, is there a limit on the federal side? Obviously, we want to be fair, but we can't be more generous if a province won't allow it.

Noon

Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

Francesco Del Bianco

The costs of AgriRecovery are shared, 60% by the federal government and 40% by the provinces.

All the provinces, particularly Quebec, Ontario and sometimes British Columbia, occasionally top up their programs, which they fund themselves.

In the case of AgriRecovery, the federal government provides 60%, the provinces provide 40% and the provinces are allowed to do other things if they choose to do so.

The Vice-Chair Bloc Sébastien Lemire

I have one last question.

The government increased the interest-free limit on the advance payments program to $250,000 in 2025. There was no indication that the program was going to continue. Can you tell us whether it will continue? Agricultural producers have been asking for this for a long time. Otherwise, as a result, will the limit be restored to $100,000 soon, while even this committee recommended that it be set at $350,000?

Producers need predictability. What will happen with the advance payments program?

Noon

Director General, Business Risk Management Directorate, Department of Agriculture and Agri-Food

Francesco Del Bianco

You're right, it's currently set at $250,000. In the regulations, it's supposed to be $100,000, and then—

The Vice-Chair Bloc Sébastien Lemire

I understand that I'll have to ask the minister.

Noon

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

I have a point of order, Mr. Chair.

The Vice-Chair Bloc Sébastien Lemire

Go ahead, Mr. Epp.