Evidence of meeting #37 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 production.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Frigon  President and Chief Executive Officer, Dairy Processors Association of Canada
Dayananda  Senior Director, Regulatory Affairs and Member Relations, Dairy Processors Association of Canada
Duff  Chief Economist, Ontario Ministry of Agriculture, Food and Agribusiness
Gosselin  Executive Director, Novalait
Yule  Executive Director, Canadian Bison Association
Schmidt  President, Canadian Cattle Youth Council
Patterson  Executive Director, Canadian Sheep Federation
Lee  General Manager, Canadian Cattle Association

12:15 p.m.

Conservative

The Vice-Chair Conservative John Barlow

Thank you very much, Mr. Yule. It's great to have you here. We had bison on our farm when I was a kid. It was a very interesting animal to deal with. It's great to see that this industry is growing.

We will now go to the Canadian cattle youth council from the Canadian Cattle Association.

Mr. Schmidt, you have five minutes, please.

Brayden Schmidt President, Canadian Cattle Youth Council

Thank you.

Good afternoon, Chair and members. Thank you for the opportunity to be here today. Thank you for including the next generation in this conversation.

My name is Brayden Schmidt. I farm with my wife and two young kids near Didsbury, Alberta. I'm proud to serve as the president of the Canadian cattle youth council. Our family is part of a multi-generational family farm with cattle and grain. Parents, siblings and several young families are working together to build a future and steward land that's been in our family for four generations.

We're at an important moment in Canada's cattle sector, with early signs of herd rebuilding and strong demand for Canadian beef at home and around the world. When I think about BRM programs, it goes beyond thinking about the next year. It's whether there's a viable future for my children here. Less than 12% of cattle operations in Canada have an operator under 35. Strong BRM programs are key to supporting young producers.

Part of that challenge is the broader uncertainty. Trade policy is top of mind for cattle producers with the uncertainty over the CUSMA review and the added pressure of Mercosur negotiations this week. Granting broad, permanent beef access to low-standard imports would put added pressure on our domestic market and send the wrong signals to the next generation. Young producers are driving innovation and continuing to raise Canada's already high production standards. Competing against lower-cost imports produced under weaker standards does not create a level playing field. It erodes the progress we're working to build. Canadian beef must not be a bargaining chip. If Canada wants to ensure future generations of beef producers in our country, we need our government to stand up and say no to Mercosur beef imports.

As beef producers prepare for future generations to take over the family farm, we need to ensure that the BRM suite is working and equitable. Livestock Price Insurance is a critical tool, especially for young producers. It's recognized by lenders and helps us ensure financing, grow our operations and manage the stress that comes with it all. It's a tool my family uses, but high-premium costs driven by market volatility often put it out of reach when we, like many other young producers, need it most. Unlike crop insurance and U.S. cattle producers, the Canadian cattle producers do not have government cost-shared premiums. They shoulder these costs all alone. That gap needs to be addressed. The government should move now to introduce cost-shared LPI premiums and make it a permanent program.

AgriStability plays an important role when producers face major disruptions, from weather to markets to rising costs. It's important that the program continues to evolve to better reflect the realities of cattle production.

The current payment cap also limits effectiveness, particularly those for the feedlot sector and other mid-sized to large operations. We recommend an increase in the payment cap to $15 million, with a regular review in line with FPT policy frameworks, eliminating the cap in the event of catastrophic disruptions such as foreign animal disease outbreaks and enhancing the trigger to 85% of the reference margin.

Our youth council has also taken an interest in the feasibility of whole-farm insurance. We look forward to staying engaged alongside the Canadian Cattle Association as this conversation evolves and to seeing the potential it may have for the next generation.

In closing, BRM programs are not just safety nets; they are signals to the next generation. They are signals that risk can be managed and that there is a future in the cattle industry that is worth a shot. That future depends on making these tools more equitable for the cattle sector. When producers feel confident and supported, they can speak positively about the future. That optimism is one of the most underrated succession tools.

Thank you for the opportunity for the youth to be part of this discussion. We hope to continue representing the next generation in framework discussions.

We look forward to your questions. Thank you.

12:20 p.m.

Conservative

The Vice-Chair Conservative John Barlow

Thank you very much, Mr. Schmidt, for being with us today.

We will now go to Ms. Patterson from the sheep producers.

Corlena Patterson Executive Director, Canadian Sheep Federation

Thank you, Mr. Chair.

Thank you to the committee for the invitation to testify here today.

My name is Corlena Patterson. I am the executive director of the Canadian Sheep Federation, representing Canada's sheep farmers and ranchers right across the country.

I want to begin with a central point underpinning what will be our recommendations. They are bold, if not provocative. BRM must protect existing farms from unavoidable shocks, but it must also help build future farms. If it only compensates losses without enabling renewal, it risks becoming a mechanism for managing decline, rather than a pathway to growth.

Canada's current BRM suite plays an important role. Producers need tools to manage income loss, production loss, natural hazards, disasters and cash flow pressure when they face unavoidable shocks beyond their control. We are not suggesting that Canada should step back from supporting existing farms, as an effective BRM program is essential to protecting current production capacity, but the current suite is designed primarily around farms that already exist. It assumes producers have production history, tax-filed margins, accumulated equity, collateral and enough liquidity to participate in matching programs. Those assumptions do not hold for many new entrants, especially those without a farm into which to succeed.

The question for this committee is not only how Canada can protect farms from unavoidable shocks. It should also be how Canada can ensure that BRM also supports renewal, new entry and the productive capacity that we'll need for decades ahead.

The Canadian Sheep Federation is asking the government to modernize BRM around food security, food sovereignty, domestic production capacity and the next generation of Canadian farmers. Food sovereignty matters because Canada should have the capacity to produce more of the food that Canadians consume. Export markets matter, but when public dollars primarily reinforce production systems built around export markets, Canada risks subsidizing food security elsewhere, while leaving gaps in our own domestic food supply. BMR modernization should ensure Canadian dollars also strengthen Canada's ability to feed Canadians.

As a result, our first recommendation is to create a dedicated next-generation and domestic production capacity BRM fund. The fund should have two pathways. One of these would support the people Canada needs to farm. These are new entrants and next-generation producers, including those without inherited land, family assets, established equity or historical production margins. The other should support the production capacity Canada needs to feed itself: sectors where there is a demonstrated domestic supply gap, a risk of losing critical productive capacity or barriers preventing Canadian producers from meeting Canadian demand.

Assuming the next pot of BRM dollars will not grow, we would suggest that this fund be financed by sunsetting the current universal AgriInvest matching model before the next framework begins. Existing balances should be grandfathered and respected, of course, but future public matching dollars should be redirected into this targeted fund for 2028. AgriInvest rewards existing sales and liquidity, and well-capitalized farms generally have access to more financial tools, where new entrants certainly do not.

Our second recommendation is to modernize AgriStability. It remains an important but complex, slow, backward-looking and “difficult to bank on” program. For livestock producers, the whole-farm margin model can mask losses in a specific enterprise. Canada can lose essential breeding animals, replacement stock, forage capacity and regional production momentum, even when a whole-farm margin calculation does not trigger support.

We recommend tiered coverage that responds before a farm is in crisis, provisional reference margins for new entrants, a simplified track for smaller commercial farms, annual statements of coverage, pre-qualified stabilization advances and an enterprise continuity rider for sectors with demonstrated domestic supply gaps. We have submitted in writing more background information with specific recommendations pertaining to AgriStability, as they are lengthy, but they're also targeted.

Our third recommendation is to modernize AgriInsurance, especially for livestock species and production systems that are not well served today. AgriInsurance can support livestock production insurance, but coverage remains uneven and province-specific. Sheep, goats, bison and other livestock species face real production risks that deserve practical, modern insurance tools as well. For sheep producers, risk includes pasture and forage failure, drought-driven feed shortages, predation, disease-related mortality, severe weather impacts, heat stress and loss of flock capacity after a natural environmental shock. We recommend a small ruminant and underserved livestock program, improved forage and pasture coverage, modernized predation coverage and temporary premium support for new entrants.

Lastly, AgriRecovery should be protected for extraordinary disaster response and should not be treated as a funding source for BRM reform. The sheep sector is the practical food-sovereignty example. Canada supplies less than half of the domestic lamb and mutton demand in this country. This is an unmet Canadian demand being filled by imports, and that demand is likely to grow. Supporting new entrants in sheep production is important for replacement, food sovereignty, rural economic development and market-responsive agricultural policy.

With that, I thank you and look forward to your questions.

12:25 p.m.

Conservative

The Vice-Chair Conservative John Barlow

Thank you very much, Ms. Patterson. We appreciate your comments.

We will now go to the Conservatives for six minutes, please, with Mr. Gourde.

Jacques Gourde Conservative Lévis—Lotbinière, QC

Thank you very much, Mr. Chair.

My question is for you, Ms. Patterson.

I'm a sheep farmer myself. I have lambs at home. However, I won't share my story with you.

You mentioned that Canada produces only 50% of the lamb it consumes and relies on imports to meet demand. The sheep market is really unique in Canada: for half the year, from Christmas through Eid al‑Adha, lambs sell very well, but the market collapses afterward. There's also the fact that we face pressure from dumping by other countries, such as Australia and New Zealand, which sell sheep carcasses at a truly ridiculous price. So, for half the year, sheep producers have no stability because prices are ridiculously low, and for the other half of the year, prices are good. It's therefore very difficult for them to manage their production to sell lambs for only six months. They try to sell lambs year-round, and the new batch production method allows them to produce lambs year-round.

Could limiting imports while supporting an increase in domestic production give existing and new producers a chance to succeed?

We know that sheep production is often the gateway for new producers, because the livestock isn't necessarily very expensive compared to beef or pork, and the volumes are smaller. It's a type of production that's really appealing to a young family wanting to start farming, whether it's a man, a woman, or children. Everyone can contribute, because these animals are less dangerous, even though there is always some risk. Sheep have an emotional appeal.

So, is there a strategy we can adopt to help these people? It's possible that this sector could experience tremendous growth in Canada, but it needs a boost.

12:30 p.m.

Executive Director, Canadian Sheep Federation

Corlena Patterson

Thank you for your question. I apologize. I will answer in English, so I can be more specific in my response.

I appreciate your background in sheep farming and that you recognize that we are, in fact, often the gateway for new producers. Very low overhead and cost of entry means we're very attractive to those who want to embark in livestock production for the first time, including those without a history of doing so.

With respect, though, to the seasonality of the markets historically over time, I would agree that we see some price fluctuation. I'm not sure that price fluctuation alone is the biggest inhibitor to increasing our market share on the grocery store shelves. It could have a certain influence, but I do see that starting to shift from seasonality to a consistent demand across the country as we see the demographics of our population change, especially as it pertains to those immigrating to Canada from countries where sheep and lamb are in fact staple parts of that diet. That's going to help, in part, with that consistency and move us from a seasonal to a year-round, every-meal protein source.

We've long argued that one of the limits of our ability to compete on the open market, even within Canada, is a function of our meat inspection system. It's the duality of the meat inspection system. We've made fairly significant comments in the discussions on Bill C-5, I think, around eliminating interprovincial trade barriers. Unfortunately, meat was exempted from that. That being said, it is one of the main reasons why Canadian producers have difficulty getting Canadian lamb onto Canadian store shelves.

Right now, the biggest market for sheep and lamb producers is provincially inspected plants, which tend to service those more holiday-type meals, as opposed to those who want to see lamb on their plate at every meal. Should we have the capacity to compete in that large-chain market, I think we would see a fairly significant and quick change in the stability of the pricing, and also an encouragement of supply year-round, as opposed to the seasonality we currently experience.

12:30 p.m.

Conservative

Jacques Gourde Conservative Lévis—Lotbinière, QC

We also note that the market is much more stable in the Toronto region. Obviously, the market is larger, there are more slaughterhouses and they are more specialized. The further you go, whether east or west, the lower the price gets. If you're 1,000 kilometres away from Toronto, lambs are not very expensive. When you get closer to Toronto, their price can double. It's very difficult for producers to negotiate with slaughterhouses if they produce small volumes.

Could the establishment of a reference price in Canada, based on the actual Toronto market, help other producers in different provinces—be it Manitoba and the western provinces or in Quebec and the Maritimes—get a fair price? Right now, there is no fair price for all producers in Canada.

12:30 p.m.

Executive Director, Canadian Sheep Federation

Corlena Patterson

I would agree that there is a price disparity depending on where you are, not just 1,000 kilometres outside of the Toronto region. We see it significantly in the west as well. In fact, we probably have a fairly significant opportunity for improving the flock, because we have that land base that can support that grazing standard.

Part of that, though, is that the Toronto demand is a function of where the consumer is. Because of the meat inspection challenges we have and the inability to move provincially inspected meat across provincial borders, we have to move live animals long distances. That comes with significant shrink and the absorption of the cost of haulage to the producer. You will pay less to a producer further outside because that cost of transport has to be absorbed as well as some of the shrink associated with it.

We would argue that if you have the capacity to process provincially in areas in the west and in those east of that Toronto mecca for lamb, we would have an opportunity to move the meat. Then the value to the producers in that region would be as high as those moving lambs into the Toronto area in order to supply that part.

12:35 p.m.

Conservative

The Vice-Chair Conservative John Barlow

Thank you very much, Ms. Patterson.

Thank you very much, Mr. Gourde.

Now we'll go to Ms. Harrison for six minutes.

Emma Harrison Liberal Peterborough, ON

Thank you very much to the witnesses for being here. I have many questions, and I have only six minutes.

Mr. Yule, when I saw that you were coming today, I was pretty excited and spent quite a bit of time on your website. During university, I spent a summer in the interior of British Columbia very close to a bison farm. I run a cattle farm in Ontario and was raised on a cattle farm in Ontario, but I've always had a huge affinity for bison. I think that people aren't aware of the incredible environmental impact they have on the land they are raised on. I'm also just a huge fan of eating bison as well. I don't know if that's an appropriate thing to say, but it's true—and lamb, actually.

I have lots of questions that probably span outside of the BRM suite, but I really appreciate the bison's ability to winter graze. With BRM and AgriStability, we need those programs in place so that they work during that time. Winter grazing is a fantastic opportunity. That being said, it comes with its own set of problems in an interesting period of time that we don't usually see in agriculture, issues in the winter.

When it comes to BRM programs and bison specifically, I'm going to give you an opportunity to share more of what you'd like to see. Can you touch on AgriMarketing as well and whether the producers within bison are using that? Do they find it effective? Is it being accessed at all? What would you would like to see moving forward with AgriMarketing and AgriStability?

12:35 p.m.

Executive Director, Canadian Bison Association

Scott Yule

Thank you for the question, and thank you for your passionate way of posing it.

I'll start with the AgriMarketing question.

We have access to AgriMarketing funds. We use them every year in partnership with what we call “our marketers”, the folks who are processing and selling the meat and who look for ways to promote the benefits of eating bison both to your diet as well as to the environment. We work to enhance sales domestically and then internationally into the U.S. and into the EU by using those AgriMarketing funds.

AgriStability is not overly utilized in our sector. One of the reasons is its treatment of pasture and winter grazing. It's a shortfall, and it reduces predictability. Bison, quite often, spend their entire year out in the pasture, supplemented as needed during the winter. It is a shortfall. I don't have the specific answer right now in terms of what that might look like to make some changes, but it is something that comes up, for sure.

Emma Harrison Liberal Peterborough, ON

Thank you.

You guys established your federation in 1983. Have you seen a significant growth within the bison industry since your inception? I'm sorry. Is it called a federation?

12:35 p.m.

Executive Director, Canadian Bison Association

Scott Yule

It's the Canadian Bison Association.

Yes, basically, the 1980s were the beginning of the industry part of bison, and there's absolutely been a significant increase.

Again, we don't have super sophisticated data avenues to explore, but we rely somewhat on the census data, which of course is now six years old, and will hopefully be coming out again this fall. We peaked at about 1,000 farms last census and about 150,000 animals.

Emma Harrison Liberal Peterborough, ON

When it comes to export, is the meat that's exported predominantly ground or boneless, or is it a whole animal?

12:40 p.m.

Executive Director, Canadian Bison Association

Scott Yule

The majority of what happens is whole. Live animals are going across the border and being processed in the States. At one point, some of it was being reimported back, because of the lack of processing capacity here in Canada. That's changed a bit, like I mentioned, in the last year. There's been quite a shift in long-term trends in the last calendar year, which is interesting to watch.

Emma Harrison Liberal Peterborough, ON

When it comes to the EU, what is the market like for bison?

12:40 p.m.

Executive Director, Canadian Bison Association

Scott Yule

I'd say it's stable. It's not huge. There hasn't been a lot of growth there in the last few years, at least. It's an important avenue for us, for sure. The marketers are moving meat over there. They like it, for sure.

I think we need more markets to be exposed to, but at the same time it's a kind of catch-22. Like I mentioned, our supply is down, so we don't have a lot of extra to sell to those new markets, if we had them. In anticipation of a surplus, all these industries and commodities ebb and flow, and we look forward to having some more adequate supply at some point. Demand is growing, so that's the good thing.

Emma Harrison Liberal Peterborough, ON

Thank you.

Ms. Patterson, I don't know if you can answer this, but I would love to know more specifically what a new entrants BRM program might look like.

My dad passed away in 2010, and the farm sat. My mom, at that point, had sold off tractors and everything and had to restart, so I can fully appreciate, being raised on a farm, the costs incurred to start a farm. More specifically, in the time you have, I'd love to know what you'd like to see.

12:40 p.m.

Conservative

The Vice-Chair Conservative John Barlow

Your time is up.

I'm sorry, Ms. Patterson.

Emma Harrison Liberal Peterborough, ON

I'm so sorry. I'd love to know. I had so many bison questions.

12:40 p.m.

Conservative

The Vice-Chair Conservative John Barlow

I know there were many bison questions.

Ms. Patterson, you are more than welcome to submit that in writing, or if another colleague gives you some time to answer on the new entrants program as a BRM, maybe you will have that opportunity.

Mr. Lemire, go ahead for six minutes.

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

Thank you, Mr. Chair.

Mr. Yule, I'll start with you. First, thank you for being here.

Every year, in Abitibi‑Témiscamingue, in Ville‑Marie, there is the Foire gourmande de l'Abitibi‑Témiscamingue et du Nord‑Est Ontario—a food fair showcasing local ingredients from the region. It's a pleasure to be able to enjoy the bison burgers from the Bison du Nord farm in Earlton. So, as you can imagine, I'm already looking forward to August. It's a treat for many people in my region.

However, how can we ensure that bison meat, in particular, can be marketed in stores, grocery stores and restaurants in Quebec and Ontario?

How can we encourage that menu offering?

12:40 p.m.

Executive Director, Canadian Bison Association

Scott Yule

Thank you so much for the question.

I would say that bison meat is probably more available than it has ever been before in domestic retail. Prior to COVID, lots of the efforts of our marketers were toward food services. Then, of course, when COVID hit, they shifted gears, and now I think they've seen that as a really positive move that they made. Bison meat is in most major retail stores. Again, because of the short supply, I would call ahead before showing up at your grocery store. I know Costco has become the largest distributor of bison meat in Canada, as it is in the U.S. If it's not in the store, it's definitely supplied online.

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

There are bison producers some 10 kilometres from my home, but an interprovincial border separates us, and there is no Costco in Rouyn-Noranda or Abitibi-Témiscamingue, obviously. So that's an additional challenge.

I'm also wondering about our capacity for processing close to the resource, especially in rural and remote areas. The same needs may be felt when it comes to lamb or sheep.

How can processing needs be met, particularly when it comes to slaughtering and marketing in the regions? I'm thinking of the development of short supply chains and a processing ecosystem on a more local scale.

How do you see things? How could we help your industry move closer to a more local market?