Good morning, Mr. Chair and members of the committee.
My name is Éric Lafontaine, and I am a cattle producer in Dupuy, Abitibi-Ouest, on the Lafontaine-Noël farm—a family farm that has operated for over 100 years. My spouse and I have been co-owners since 1993, and we own a herd of approximately 300 cows. Our daughter now wants to carry on the work that my family has developed for generations.
I am here today to tell you about a catastrophic situation that occurred in 2023 and which, three years later, continues to profoundly affect my farm and many producers in my region.
First, in 2023, we had an abnormal winter: there was little snow and a lot of ice very early in the season. That weakened our pastures. Then, the forest fires in Abitibi and Northern Quebec forced the urgent evacuation of our herd of about 800 head. Finally, there was a historic drought, which resulted in a water deficit of 220 mm—a level never seen before. Even the region’s most long-standing producers had never seen anything like it.
The consequences were devastating for every producer in the region. After an initial hay cut that was already very poor, it was impossible to harvest a second crop of hay. To adequately feed our livestock, we were forced to use our hay reserves to feed the cows on pasture and then to purchase enormous quantities of hay from other regions at exorbitant costs.
Producers estimate their yield loss at approximately 70%. However, the Financière agricole du Québec, as part of the crop insurance program, assessed losses at 36% on average, which means a compensation shortfall of approximately 34%.
I want to make this clear: The system could have done better. This is not a technical issue; it is a matter of choice.
When the gap between the actual situation and the recognized data exceeds the established framework by over 15%, the Financière agricole has a duty to compensate insured producers. Three years later, the impact on our business is still being felt, because the entire income protection system failed to meet our needs. With our current resources, it will take us at least six to eight years to return to the levels we had before 2023. We may never be able to make up for this lost growth, which could affect the next generation of farmers. I want to make it clear that our situation is far from unique. Indeed, many of Abitibi's producers find themselves in the same boat.
One essential point must be understood: hay is the foundation of our production. In our business, more than two-thirds of our expenses go toward forage crops. We are just as much forage crop producers as we are beef producers—if not more so. Yet it is precisely these crops that are the least protected by the insurance program, especially when compared to grains, which are often fully covered.
Climate change is increasing our risks. There is more at stake than just a bad year; it is the very survival of our farms. In practical terms, one-size-fits-all solutions in farm risk management programs must end. We need greater flexibility and we need to provide for genuine exceptional measures. Programs must be adapted to regional realities and ensure fairness on a national scale. Finally, in exceptional situations, more on-site inspections are needed, because, all too often, the way data is interpreted does not reflect the reality faced by producers. That is the crux of the problem.
The beef industry needs breathing room. The average age of producers is high, and if we want to attract the next generation, the industry must become attractive again. Current prices are good, but we cannot fully take advantage of the cycle. The catastrophic situation in 2023 meant we missed out on a favourable economic cycle, and this setback continues to hinder the development of our businesses today.
Finally, I want to remind everyone that providing adequate compensation to farmers is not an expense; it is an investment that will be recouped, in the medium term, through tax revenue, but above all through stable and sustainable economic benefits in rural areas that, very often, rely heavily on their agricultural production.
In closing, I ask one simple thing of you: give us tools that match the risks we take. That is how we will be able to protect our farms, support the next generation, and keep rural areas vibrant.
Thank you.