Thank you for the invitation to appear before this special committee.
As mentioned, my name is Dave Carey. I'm the Canadian Canola Growers Association's vice-president of government and industry relations, based here in Ottawa. I am joined by my colleague Janelle Whitley in Winnipeg, who leads our policy development on international trade. We're the national association of Canada’s 43,000 canola farmers, representing them on issues, policies and programs that impact their farms' success.
Developed in Canada, canola is a staple of Canadian agriculture, as well as Canadian science and innovation. Today it is Canada’s most widely planted crop and is the largest farm cash receipt of any agricultural commodity, earning Canadian farmers over $10.2 billion in 2020. Annually, the canola sector contributes $29.9 billion to the Canadian economy and provides for 207,000 jobs. The U.S. is our largest export market, accounting for roughly 30% of our seed, oil and meal exports in 2020.
Canola is harvested for its seed, which is then processed into oil and meal. In 2020, Canada sold $3.7 billion in canola to the United States: $2 billion in oil and $1.3 billion in meal. The U.S. purchases 50% and 70% of our total oil and meal exports respectively.
North America is an integrated agriculture market, with many of our industry partners operating in both Canada and the United States. Canola products are critical inputs into U.S. food and feed supply chains. For example, canola’s heart healthy oil is an important ingredient in consumer food products. The geographic proximity of our markets and the vertically integrated North American agribusiness sector is well positioned to serve our respective markets.
Underpinning our economic relationship is the CUSMA. We were encouraged by its implementation in July 2020, as it preserved our market access and restored predictability and certainty.
At present, canola faces little in the way of barriers. Since NAFTA’s implementation, canola sales to the U.S. have grown, significantly driving development of our sector here in Canada. Strong U.S. canola oil and meal demand supports our value-added sector. Today a network of 14 oilseed facilities processes seed here at home. Maintaining value added in Canada is an integral component of canola's $29.9-billion contribution to the Canadian economy. Furthermore, many of these processing facilities are in rural Canada, supporting local communities, sustaining rural employment and providing sales opportunities for our farmers.
I appreciate that this study is focused on buy America and other associated issues. Buy America and President Biden’s plan to tighten requirements have not yet impacted our farmers. Canola is sold into the private market, and our larger sector has no direct involvement with government procurement or assistance.
That said, farmers require stable and understood rules of trade. They establish certainty in markets and the requirements for doing business, enable investment and reduce risk as well as cost. Stable market access also includes streamlined and aligned regulatory processes, particularly for crop protection products and seed varieties enhanced through biotechnology.
An increasing market of interest for canola farmers is biodiesel. Canola is a high-quality feedstock. As both of our countries seek a cleaner energy future, farmers can help meet the growing need for low-carbon biofuels on the continent. The free flow of biofuels, their feedstocks and finished fuels is thus important.
As both of our countries develop and implement strengthened policies targeting the environmental profile of liquid fuels, we cannot imperil this trade environment. The forthcoming Canadian clean fuel regulation needs to ensure that it does not negatively impact the free trade we currently enjoy.
Recently announced major investments in increasing canola crushing capacity and the potential for large-scale investment in diesel biofuel production in Canada will be used by commercial parties not only to satisfy their regulatory obligations in Canada, but to provide feedstock and biofuels to U.S. customers as well.
We look forward to your questions today.
Thank you.