Agriculture Committee on May 5th, 2026

[The Chair, Liberal, Michael Coteau]

I'd like to call this meeting to order.

Welcome to meeting number 34 of the House of Commons 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 by using the Zoom application.

Before I continue, I'd like to ask all in-person participants to consult the guidelines written on the back of the cards on the table. These measures are in place to help prevent audio and feedback incidents and to protect the health and safety of all participants, including the interpreters. You'll also notice a QR code on the cards, which links to a short awareness video.

I'd like to make a few comments for the benefit of the witnesses and members. Please wait until I recognize you by name before speaking or before asking a question directly, members. For those participating by teleconference, click the microphone icon to activate your mic, and please mute yourself when you are not speaking.

For those on Zoom, at the bottom of your screen you can select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel. I remind you that all comments must be addressed through the chair.

For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order to the best of our ability. We appreciate your patience.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Thursday, September 18, 2025, the committee is resuming its study on business risk management programs in Canada's agriculture sector.

I'd like to welcome our witnesses joining us today. We have, from the Canadian Cattle Association, Tyler Fulton and Ryder Lee; from the Canadian Pork Council, René Roy and Stephen Heckbert; and from CropLife Canada, Pierre Petelle.

Welcome, everyone.

You have up to five minutes for your remarks, and then we'll open it up for questions from the members.

I now invite the Canadian Cattle Association to give their opening remarks.

[Tyler Fulton, President, Canadian Cattle Association]

Good morning, everyone. Chair and members, thank you for the opportunity to appear today.

My name is Tyler Fulton. I ranch with my family near Birtle, Manitoba. I'm proud to be the current president of the Canadian Cattle Association. Through our provincial members, CCA represents about 60,000 beef producers across Canada.

Strengthening the Canadian beef industry as a competitive sector for growth is critical to advancing Canada's trade diversification and food security goals. That begins by growing the national cow herd. After several years of contraction, we're beginning to see early signs of rebuilding, up to an estimated 2.5% nationally.

While that's encouraging, it remains fragile. This is why we need to ensure that government policies across departments continue to encourage growth. For example, in the government's current fast-paced trade diversification agenda, we need to ensure that trade outcomes signal growth for the Canadian economy.

Canada's current negotiations with Mercosur illustrate our concern. For Mercosur, beef access is the number one negotiating goal at the negotiating table, which would expose and undermine Canada's domestic market at a time when the Canadian beef herd is rebuilding. For Canadian beef producers, that's not diversification; it's risk without reward.

Rebuilding a cattle herd is a multi-year, capital-intensive decision that depends on policy certainty and effective risk management. Addressing inequities for the cattle sector in the business risk management suite and through the next policy framework will play an important role in whether the herd growth momentum continues or stalls.

With the next framework not starting until 2028, FPT governments should act now. Waiting will delay benefits to cattle producers until the 2029 calf crop.

Market and trade volatility continue to be significant risks. Livestock price insurance is the only program that allows beef producers to proactively manage price risk. It's particularly important for cow-calf producers who are making herd expansion decisions and for young and new producers who are most exposed to price shocks. However, high premium costs driven by increased market volatility are limiting uptake at the very time producers need this tool most. Unlike crop insurance and U.S. cattle producers, Canadian cattle producers do not benefit from a cost-shared premium.

CCA has been a long-time advocate of cost-shared LPI premiums and of making it a permanent program. This would level the playing field while reducing the reliance on other BRM tools. This is the fifth policy framework where governments have had the opportunity to address this gap.

Weather risk and rising input costs remain significant challenges. AgriStability continues to play an important role when producers face major income declines due to market disruptions, cost pressures or climate change challenges like drought. We welcome recent improvements to AgriStability, with the addition of pasture-related feed costs as an allowable expense, to make the program more responsive for cattle producers.

However, the current payment cap still limits effectiveness, particularly for the feedlot sector and other mid-large-scale operations that are driving growth, export capacity and investment across the sector and in their communities.

CCA recommends increasing the payment cap to $15 million, eliminating the cap in the event of a catastrophic disruption such as foreign animal disease outbreaks and enhancing the trigger to 85% of the reference margin. Strengthening the program will ensure that it provides a reliable backstop that supports resilience and reinvestment.

We were also pleased to host AAFC officials at our AGM in March to present their report on the feasibility of whole-farm revenue insurance for the cattle sector. We appreciate the engagement and look forward to exploring this possibility and keeping those lines of communication open.

In closing, growing Canada's cattle herd is essential to advancing shared objectives under the next policy framework. Realizing this potential will depend on a business risk management suite that is not only effective, but also equitable to reflect the realities of Canada's cattle producers.

Thanks. I look forward to your questions.

[The Chair, Liberal, Michael Coteau]

Thank you very much.

Next we'll go to the Canadian Pork Council for five minutes.

[René Roy, Chair, Canadian Pork Council]

Thank you, Mr. Chair.

My name is René Roy. I am a pork producer in the Beauce region of Quebec, and I am the president of the Canadian Pork Council. With me today is Stephen Heckbert, who is our president and chief executive officer.

I do not stand here alone. I carry the voices of thousands of farming families who, from coast to coast, work tirelessly to feed our country and the world.

Before addressing the technical details of our business risk management programs, I want to establish a fundamental principle. For us as farmers and for all Canadians, protecting our agricultural sector is not just an economic issue; it is a matter of national security. A country that can no longer guarantee its own subsistence is a vulnerable country, and our country has the advantage of being able to offer that guarantee, should we so choose, to our allies and friends around the world. In a world marked by geopolitical instability and climate change, our farms are the first line of defence for our sovereignty. Supporting our producers ensures that grocery stores remain stocked and that families remain fed.

To ensure this security, we need agile financial tools. The advance payments program is crucial, yet it currently presents major hurdles for our hog finishers. Imagine the producers in my home region of Beauce who fully own their animals. Despite this ownership, they often hit a wall of bureaucracy that struggles to recognize the value of their livestock as collateral. Hogs cannot be stored in a silo like grain; they are units in constant growth. We ask the committee to work with us to find permanent solutions for the recognition of guarantees in the circumstances of finished hogs. Our owner-producers must have seamless access to the APP.

Furthermore, to reflect the reality of skyrocketing input inflation, we are calling for a permanent increase of the interest-free portion of the advance to $350,000. This is not a luxury; it is the working capital required to sustain operations in today's environment.

Another pillar of our security is biosecurity. African swine fever and, frankly, other foreign animal diseases hang over our industry. A single case in this country would halt our exports immediately, threatening the survival of the entire sector if we do not get access to those markets quickly. Current ASF preparedness is a major step forward, but it cannot remain temporary. This type of initiative must become a permanent program. Prevention and preparedness are not expenses; they are investments to avoid an economic catastrophe that would cost billions of dollars.

Finally, I want to emphasize that our best defence is often a good offence. For an industry like ours, which is export-oriented, access to new international markets is, in itself, a risk management strategy. The more diversified our market, the less exposed we are to the whims of any single trading partner. I don't think I have to mention to whom I am referring here. We ask the government to continue to find these new markets and to do so with an eye on fair and free access from both parties so that Canadian pork, recognized globally for its quality, can move freely.

In conclusion, Mr. Chair, we are asking for a long-term vision: simplified BRM programs, an accessible and modern APP, and permanent animal health protections. Treat agriculture for what it truly is: essential infrastructure for the nation.

There are other technical issues that we would like to share, but it will be in a further document that we will share with the committee.

Thank you, Mr. Chair.

I'm willing to answer your questions.

[The Chair, Liberal, Michael Coteau]

Thank you very much.

Next we'll go to CropLife Canada for five minutes.

Welcome.

[Pierre Petelle, President and Chief Executive Officer, CropLife Canada]

Thank you, Mr. Chair and members of the committee, for the opportunity to appear before you today.

My name is Pierre Petelle. I'm the president and CEO of CropLife Canada, representing the innovators in plant science committed to helping Canadian farmers grow more food more sustainably and more competitively.

Canada's agriculture and agri-food sector is not only foundational to our food security; it is one of the country's greatest economic engines. This sector contributes nearly $150 billion annually to Canada's GDP and also supports 2.3 million jobs, more than the automotive, forestry, steel, aluminum, and oil and gas sectors combined.

With focused leadership, strategic investment and a policy environment that champions research and innovation, Canada's agri-food sector has the potential to grow by an additional $100 billion annually and becoming a $250-billion industry by 2035.

That opportunity should shape how we think about business risk management. BRM programs are an essential pillar of Canada's agricultural policy framework. In a sector increasingly shaped by climate pressures, market volatility, geopolitical uncertainty and rising production costs, these programs must remain effective and responsive, but if we're serious about resilience and growth, we must also look beyond reactive supports and address the broader policy and regulatory environment that determines whether Canadian agriculture can compete and expand.

For example, ensuring timely access to the latest seed genetics and crop protection tools ensures we stay competitive with other markets. These tools are a form of business risk management in and of themselves. Seed genetics that better withstand drought or flood, and crop protection solutions to address devastating pests all help to minimize reliance on BRM payouts.

As the committee considers modernization of the next federal-provincial-territorial agreement, CropLife Canada encourages a stronger focus on clearly defined policy outcomes, policy coherence and accountability, which are all things that are 100% in our control.

Governments must establish measurable outcomes and timelines for regulatory modernization. Canada's agriculture and food sector has extraordinary growth potential, but that potential is often too constrained by unnecessary red tape, duplication and regulatory delays that hinder innovation and drive investment elsewhere. As you have heard from other witnesses already, there are practical, surgical, no-cost measures that governments can take immediately to reduce administrative burden, improve efficiency and restore Canada’s reputation as a place to invest in agricultural innovation.

Roles and responsibilities within the FPT framework must be clarified to ensure governments work in greater coordination and with greater purpose. Farmers, innovators and value-chain partners need consistency, transparency and timely decision-making. Regulatory reform, policy alignment and implementation discipline must be treated as central components of this BRM, because regulatory uncertainty is itself a significant business risk.

Now is truly the time for Canada to modernize its approach to regulation, to regulate for growth while maintaining the highest standards for health, safety and environmental protection. A world-class regulatory system not only should safeguard Canadians but also should enable innovation, productivity and economic opportunity.

Lastly, in a global environment where the traditional rules-based trading order is increasingly under strain, Canada must play a stronger leadership role in defending science-based decision-making. Canada’s long-term competitiveness depends on maintaining strong, credible, science-based regulatory systems at home and championing those principles internationally.

Thank you very much.

[The Chair, Liberal, Michael Coteau]

Thank you very much to each of our witnesses.

Before we start the questions, I want to confirm that Mr. Bexte is subbing in for Mr. Bragdon today.

[David Bexte, Conservative, Bow River, AB]

Yes.

[The Chair, Liberal, Michael Coteau]

I wanted to get that on the record.

We'll go to Mr. Bonk for six minutes.

[Steven Bonk, Conservative, Souris—Moose Mountain, SK]

Thank you, Mr. Chair.

In this committee, we're talking about business risk management tools in agriculture. I think we've had huge improvements in Canada in the last 20 years when it comes to efficiency, genetics, forage management, pasture management, genetics on the hog side and particularly in the crops we're using. A lot of that has been driven by the scientific research that has been happening in Canada.

Recently, the Liberal government has decided to close down research centres. I'm wondering if any of you could tell me how many members in your organizations have called you to congratulate the government on closing these research centres.

That's open to anyone.

[An hon. member]

Let the record show....

[Steven Bonk, Conservative, Souris—Moose Mountain, SK]

Let the record show....

This is exactly what we've been hearing in this committee in all the meetings we've had on this: that research is a very important part of agriculture and agriculture sustainability in Canada. It's something that we should take seriously. I hope the Liberal government will reconsider their decision when it comes to closing these research centres.

I'll address the rest of my comments to the Cattle Association, because this is something I'm very familiar with.

When we talk about business risk management, one of the biggest risks in a long time that I can see coming to the cattle industry is the potential Mercosur deal the government is working on now and its devastating potential effects on the Canadian cattle industry.

I'll open the floor to you to explain a bit more about why there is such fear out there in the cattle industry right now when it comes to this deal.

[Tyler Fulton]

I think it has a direct connection to what we're talking about today in terms of business risk management tools broadly, incentives and disincentives.

The cattle industry is in a pivotal time. We need to encourage the next generation of ranchers and beef farmers across Canada to come back to the farm. We really lost a generation after the BSE crisis. It has even increased the need to have youth come back.

When talking about Mercosur, what signal does it send to our young producers now if we're introducing new market access to South American countries that, quite simply, do not produce the same product at the same standard that we do here in Canada? Unequivocally, it represents a big risk from an animal disease standpoint. Also, what is the signal you're sending to the next generation in this context?

Unequivocally, we can't have new market access for South America. If you want to grow the herd, let the market decide, and we are. We're growing it. We grew it by 2.5% last year, in 2025. The expectation is that we'll continue to grow and invest if we have certainty.

[Steven Bonk, Conservative, Souris—Moose Mountain, SK]

I'll direct the next question to Ryder Lee from the Canadian Cattle Association.

We've had many discussions in the past about the traceability regulations that were proposed in January. They were met with a huge backlash from Canadian cattlemen. Now they're talking about making a trade deal with free trade access for Mercosur countries, where they have traceability standards that aren't even close to those we have in Canada when it comes to disease recording, BSE monitoring, foot-and-mouth, and final sanitary concerns.

Could you talk a bit more about the inequality between what Canadian cattle producers have to do compared to what Mercosur countries producers have to do?

[Ryder Lee, General Manager, Canadian Cattle Association]

You're talking about several countries. It's hard to always lump them together.

In the past, we've seen some discomfort with imports from that part of the world into North America because of reporting differences. What we ended up with for BSE through all those years...we looked, and we found stuff and said, “We found this. We're working on it. We're getting through it.” We have gotten through it. There's some history with some of the countries there taking their time on reporting things.

The trust in North American beef circles is that house isn't put together tightly enough to move forward on something like this. It is a concern for our animal health to move forward on this.

[Steven Bonk, Conservative, Souris—Moose Mountain, SK]

There has been some reporting that, in Brazil—let's just use them as an example—they've taken up to a year to report any BSE cases. Is that true?

[Ryder Lee]

That's our understanding, yes. That's a big red flag.

Are you looking? When you find something, are you reporting it and figuring out what the cause was and what else happened? What else could have come from there?

That's a big concern for Canada and for the U.S. beef sector, too. That's somebody who's watching this conversation and who doesn't want to see beef getting through the back door from Canada into the U.S. That's a consideration here, as well. Our biggest customer is watching.

[Steven Bonk, Conservative, Souris—Moose Mountain, SK]

I know that was a very big concern at the national cattlemen's convention in the United States, where they were discussing the potential of Mercosur beef coming into the United States through Canada and the health concerns and traceability concerns with that.

Have you been in contact with—

[The Chair, Liberal, Michael Coteau]

I'm going to have to stop you there. We've just gone over six minutes.

I'm sorry, Mr. Bonk.

We're going to MP Harrison for six minutes.

[Emma Harrison, Liberal, Peterborough, ON]

Thank you to all of the witnesses for being here today.

I think we're facing the perfect storm of issues that are facing producers. We have geopolitical problems, rising input costs and an aging population in the farming industry.

Mr. Fulton, you spoke to how we encourage the next generation to want to keep farming. I've talked about this a lot at this committee. Based on what I experienced growing up on a farm and being in a beef operation, it was a terrible idea to farm, but I still chose to do it. It's hard to understand why a person is so committed to the lifestyle of farming unless you've been in it. With these conversations we're having now and the suite of BRM programs we have within the government, it's a critically important time to get this right.

Would you care to expand a bit more on what you would like to see when it comes to the BRM? You brought up the pasture-related feed costs. That's an incredible addition, but does it go far enough? What do we need to see?

[Tyler Fulton]

I can't stress that enough.

The way to look at it is like this: To ensure that the next generation has confidence in—

[The Chair, Liberal, Michael Coteau]

I'm going to pause for a second.

We're going to fix the camera. The camera is not moving.

Okay, let's try that again.

I'm sorry I interrupted you, sir. Go ahead.

[Tyler Fulton]

That's no problem at all.

With respect to making sure the next generation has the confidence to go to the bank and absolutely leverage their life on their choice to invest in an operation, to purchase the next one or grow an existing one, they need tools to manage the risk. There's a split you can draw.

You can say that some risks are unforeseen and difficult to manage. Quite simply, there needs to be a safety net. Tools like AgriStability are reactive. They don't specifically reference one particular risk. They're a catch-all.

There's also the proactive management of risk. That's where the focus of the next policy framework needs to lie. It's going to differ across all sectors. In the cattle sector, the youth have come back and said, “Livestock price insurance is a very effective tool to manage what we identify as our largest risk. Can we get support through that program the same way crop farmers have crop insurance?”

[Emma Harrison, Liberal, Peterborough, ON]

Thank you.

Would any of the other witnesses like to further elaborate on what they'd like to see, especially for our young producers? Where can BRM come in handy for them?

[René Roy]

I can add that I made the choice to feed people, the citizens of the world. For me, it's an honourable choice in life. That being said, it's not an easy one. There are ways our country could make it more accessible to future...because food will be important for our fellow citizens. As mentioned, food security is national security. It's important to have this in mind as we look at BRM.

In the case of hog production, there is a lot of volatility. On everything related to AgriStability, increasing the margin to 90% is something we would look forward to. Increasing the cap would be an additional tool to help in the reality of hog production today. They are just larger operations. It's important that we take this into consideration.