Evidence of meeting #33 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 program.
A video is available from Parliament.
Liberal
The Chair Liberal Michael Coteau
Thank you very much.
We'll go to the Bloc for two and a half minutes.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
Thank you, Mr. Chair.
Mr. McCann, thank you for your accurate and relevant remarks.
Is there a problem when all the risk management programs use the same parameters across Canada—that is, one-size-fits-all solutions applied from coast to coast to coast? Yet we know that the reality of a producer in Quebec is not the same as that of a producer in Alberta, for example, and that vegetable production in Prince Edward Island is mainly focused on potatoes, whereas in Quebec or Ontario, it is much more varied and offers a wider range of products.
In your opinion, should there be fewer rules at the federal level and should the provinces be given more freedom?
Managing Director, Canadian Agri-Food Policy Institute
I think we need more freedom. We need an approach that provides tools. We're already doing this through production insurance, but we're not doing it through tools related to producers' income or margins.
Another challenge is that insurance is more expensive when all the programs are provincial. If there were a reinsurance fund or a more national approach, the costs of that insurance would go down, as the losses wouldn't occur in the same sectors every year. We lack that ability to share risks across Canada.
We need that flexibility. Again, it's not just a matter of regions; it's a matter of production and differences among farms.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
Could you tell us more about the importance of our processing capacity?
Many people have indeed mentioned, as Mr. Cranfield did earlier, that we export a huge amount of our products, much more than we produce locally.
Should risk management programs for agricultural businesses place greater emphasis on the processing of our products and provide better access to our markets and short supply chains?
Managing Director, Canadian Agri-Food Policy Institute
Certainly, the policy framework should better support value-added activities and processing. It sometimes seems that this sector, although part of the value chain, has been overlooked in the policy framework. We should be much more aware of the positive effect of supporting value-added activities in Canada.
However, processors need other programs. Tax credits were mentioned a few minutes ago. This is outside the strategic framework, but tax credits are a tool that is not used often enough in the agricultural sector. I think there's much more that can be done through tax credits.
Liberal
The Chair Liberal Michael Coteau
Thank you so much.
I'm going to go to Mr. Bragdon for three minutes.
Conservative
Richard Bragdon Conservative Tobique—Mactaquac, NB
Thank you, Mr. Chair.
My questions will be for Dr. Charlebois.
We've talked a lot about the obstacles and the competitive disadvantages that our producers are having to face when it comes to global competitiveness. We know they do tremendous work, and we know they make the best and most delicious and wonderful products and food around the world, but they are facing some huge obstacles related to competitive jurisdictions.
What would you identify as the biggest inhibitors for them to be able to grow, thrive, prosper and be and remain competitive?
Director and Professor, Dalhousie University, Agri-Food Analytics Lab
First of all, I agree with everything that's been said by my colleagues, Dr. Cranfield and Tyler McCann, since the beginning of this session.
I'll go back to one of the comments made by Dr. Cranfield about capacity and allowing farmers to scale up. Access to capital is the biggest challenge, so I certainly would agree with that statement for sure, especially right now, when we have a government that is very engaged in capitalizing the system. However, the private sector is still often on the sidelines, so we need more activity.
We did a report with MNP recently, looking at Canada's performance with other G20 nations, and we're laggers when it comes to how private capital is engaging in agri-food. That needs to change in order to help companies, whether it's at the farm gate or in processing, become more competitive in dealing with some of the risks we see out there.
Conservative
Richard Bragdon Conservative Tobique—Mactaquac, NB
Thank you so much. I know there's more you could add. We'll look forward to that being tabled.
Also, one big, important question is this. Recently, the Prime Minister identified our relationship with the U.S., as it pertains to Canada-U.S. trade, as a weakness, especially in the realm of agriculture. Can you reiterate to this committee how vitally important that trading relationship is for our producers and farmers? I hear a lot in my region that we need to make sure this trade continues and that, as we expand overseas, we need to make sure that we maintain this relationship. Can you comment on that, Dr. Charlebois?
Director and Professor, Dalhousie University, Agri-Food Analytics Lab
Yes, I did hear comments from the Prime Minister. I felt it was a poor choice of words. I do believe that America is an important trading partner and will remain a very important trading partner. It is hard to overlook the largest economy in the history of the world. That's the reality. I'm here in Montreal, and there's an American pavilion here doing business with Canadian businesses right here. Everyone here is trying to do business with America.
I think there's a lot of noise in politics, which is fine. However, on the ground, I see a lot of companies wanting to do business with each other on both sides of the border.
Liberal
The Chair Liberal Michael Coteau
Thank you very much.
We'll go to the Liberals for three minutes.
MP Connors.
Liberal
Paul Connors Liberal Avalon, NL
Thank you, Mr. Chair.
Thank you to the witnesses for coming out.
Yes, we all agree that the U.S. market is.... It's right on our border. It's the most important market for us. However, we are looking to diversify to make sure that we're not as dependent on the U.S. market.
Mr. McCann, I really liked your opening questions to us. As a person who was involved with the Newfoundland and Labrador Federation of Agriculture back in 2006 or 2007, when the business suite of programs was introduced by Minister Ritz at the time, I know there was a comment then—and it seems to have continued throughout—that one size does not fit all. As MP Lemire pointed out, what happens in Quebec is different from what happens in Alberta, which is different from what happens in B.C. and very different from what happens in Newfoundland and Labrador.
I want to go back to one of the other points you made. You identified five things in your opening remarks as well. At our previous meeting, we had a witness here from Newfoundland and Labrador who said that low participation rates in the BRM programs are because the programs are poorly understood and not promoted sufficiently. How should we address that, and what do you think could address that?
Managing Director, Canadian Agri-Food Policy Institute
I think you need to look at different delivery mechanisms. If you buy house insurance, the insurance broker who sells you that house insurance will explain to you what the coverage is, what your options are and how the insurance program works. If you go to a provincial crop insurance administrator today, you will have a hard time getting answers to any of those questions. The incentives and the motivations aren't there for them to do it. Too often, we don't ask tough enough questions about the job, or lack of job, these provincial delivery agents are doing.
We often talk about reform and potential. It's also important to acknowledge the barrier that provinces present to getting changes and outcomes today. We have this framework that effectively means that most of the large provinces need to agree on any changes, and if somebody wants to stand in the way of change, they can. Too often, the federal government, to be honest, gets the blame for that, when it's actually the provinces that are the problem and stand in the way of reform. They tend not to do a great job delivering the programs, either.
Liberal
Paul Connors Liberal Avalon, NL
I want to go back to the forage program that happened in Newfoundland and Labrador because of the drought this year.
If you can submit something or give a quick answer.... Forage insurance is very difficult to get in Newfoundland and Labrador, if not impossible.
Managing Director, Canadian Agri-Food Policy Institute
People in Alberta would argue that it's very hard to get it there too.
There's no reason it should be. We need to look at how we can innovate.
Liberal
The Chair Liberal Michael Coteau
Thank you. That was a good use of your 10 seconds, Mr. Connors.
I'd like to thank all witnesses for being here today. We appreciate the work you're doing in agriculture to support our country.
Is it the will of the committee to adjourn?