Mr. Chair, thank you for the invitation to appear before the committee today.
My name is Tyler McCann, and I'm the interim executive director of Grain Growers of Canada. I'm here today on behalf of our 16 member organizations and the 65,000 grain farmers we represent from coast to coast. I personally operate a 100-acre beef cow-calf farm with my wife and kids an hour west of Ottawa in Bristol, in the great riding of Pontiac.
I will focus today on trade and climate policy, but first I would like to take a minute to talk about the Grain Growers good news story that exists on climate change.
Across Canada, you will find hard-working middle-class farm families growing the world's safest, highest-quality and most sustainable grains and oilseeds. In 2017, these farmers harvested 75 million acres of crops, producing almost 70 million tonnes of grains. Of those 70 million tonnes, wheat and canola both represent more than 20 million tonnes each, followed by corn, barley and soybeans as the major crops grown in Canada. All of that production means that grain farming plays an important financial role in rural communities across Canada. In 2017, grain sales alone put $25 billion into the rural economy, not including the impact that value-added processing of these commodities can bring.
It's important to underscore the fact that grain farmers play an important role in rural communities. Farmers invest their income from grain sales in inputs such as seed, fertilizer, fuel, machinery, and other expenses, and they support many of the small businesses and dealerships that help keep rural Canada strong and vibrant.
Farmers are not only the economic engine of rural Canada but, first and foremost, stewards of the land. Canada's rich natural capital—its healthy soil, clean water and clear skies—forms the backbone of Canadian grain farms. Farms can reach their full potential only when farmers care for that natural capital and nurture it. That is why today's grain farmers invest in new technologies and production practices so they can produce more food with fewer inputs, leaving a smaller environmental footprint and needing no new land.
An example of these investments includes minimum or no-till farming so that farmers work the soil less, conserving moisture, reducing soil erosion and keeping carbon in the ground. More than half of Canada's farmland is cultivated using minimum or no-till practices. This alone has reduced fuel use by over 170 million litres each year.
Precision agriculture and adherence to the 4R nutrient stewardship program are examples of how grain farmers are targeting application of crop inputs when and where they are needed most. Biotechnology, new crop protection products, and plant breeding innovations are encouraging efficient pesticide use and improved soil health. Across Canada, farmers are developing and implementing environmental farm plans.
All of this work has brought real results for the environment. At a time when grain production is reaching record highs, its carbon emissions are reaching new lows. The Canadian Roundtable for Sustainable Crops, of which Grain Growers of Canada is a member, has developed a data-based metrics platform that provides concrete measurements on the sustainability of Canadian grain production. This allows us to go beyond anecdotes and talk about the evidence we have that Canadian grain farmers are environmental leaders.
For example, not only has it confirmed that 80% of grain farmers have adopted no-till practices and that most grain farmers always or usually look for equipment and technologies that reduce fossil fuel use, but it has given us concrete details on the impact those efforts are having.
The data shows that Canada's agricultural soils went from being a small carbon source of 1.2 metric tonnes of carbon dioxide emissions in 1981 to being a sink, with almost 12 metric tonnes of carbon absorbed by the soil in 2011. As farmers are getting better at increasing yields, they are driving down the amount of energy required to produce those yields. In 2011, corn growers in Ontario and winter wheat growers on the Prairies were using approximately 60% of the energy per tonne of production that they used in 1981. To put this in context, an analysis of data from the World Bank, the European Commission and Agriculture Canada done by The Western Producer shows that Canada's 113 million arable acres produce effectively the same amount of greenhouse gas emissions from agriculture as the United Kingdom's 16 million acres do.
Several factors contribute to this, but the bottom line is that Canadian agriculture is part of the climate change solution, not the problem. That is why agriculture should be part of the pan-Canadian framework on clean growth and climate change commitment to international leadership.
I would like to offer some examples of what this leadership can or should look like with regard to trade and climate policy.
First, I would like to highlight the Global Research Alliance on Agricultural Greenhouse Gases. Canada was a founding member of the GRA in 2009. Since then, the alliance has been leading international efforts to coordinate and collaborate on greenhouse gas research.
The GRA is an example of an international effort focused on making tangible progress on reducing greenhouse gases. Its research projects focus on best management practices, monitoring emissions and increasing our understanding of how and why agriculture releases carbon emissions, so that new practices and technologies can be put in place to further reduce emissions from the sector. While it is not a headline-grabbing initiative, supporting and contributing to the GRA is an example of how Canada can and should show international climate leadership in a way that supports farmers in Canada and around the world.
Canada can go further in our international leadership on how agriculture can positively contribute to reducing GHG emissions. Many farmers around the world lack access to the tools, science and innovation that have helped Canadian farmers get to this position. It is crucial that international efforts to mitigate climate change include finding trade-enabling solutions for biotechnology, crop protection products and plant-breeding innovations.
For example, modern plant science, agronomics and biotechnology have helped to reduce the climate impact of Ontario corn by 37% over the last 34 years. In the Prairies, canola growers have been able to use biotechnology to reduce carbon dioxide emissions by one billion kilograms, the equivalent of taking 500,000 cars off the road.
Despite these significant environmental benefits of biotechnology, countries around the world continue to put up barriers to the use and trade of our safe biotech products. The unfortunate reality today is that around the world, some of the voices that are the loudest in support of climate change science are the loudest in opposing the plant and agronomic science that is helping farmers produce more with less.
Agriculture and Agri-Food Canada, supported by Global Affairs Canada, has done important work trying to find trade-enabling solutions to these barriers, but there is more to be done. International leadership to facilitate the trade in biotech crops is not just an agriculture issue, but a climate change issue, too. At a minimum, Environment and Climate Change Canada and other government departments should embrace modern agriculture technologies, and their benefits for the environment, during their international climate advocacy.
The real reason growers see international leadership as an essential component of the pan-Canadian framework is that farmers need to be on a level playing field around the world.
Earlier, I referenced the impressive 70 million tonnes of grains, oilseeds and pulses grown by Canada's hard-working grain farmers. For most commodities, the domestic market cannot consume most of that production. The good news is that there is significant demand around the world for the sustainably produced, high-quality grains than cannot be consumed domestically. In fact, many nations choose Canadian grains because they are sustainable.
This means that Canadian farmers are export-dependent. Canada exports more than half of our canola, wheat, pulses, flax and oats, with almost 90% of some production destined for export markets. For Canadian grain farmers to be able to compete in these export markets, they need to be on a level playing field with their international competitors. Canadian farmers are up against farmers from the U.S., South America, Australia and the Black Sea region when they are selling into markets in Asia, Europe and elsewhere around the world.
When farmers in competing growing regions are able to grow their grains without facing aggressive carbon policies, they are given a competitive advantage over Canadian growers. When done right, climate policies can recognize farmers as stewards of the land and support their efforts to grow more with less. When done wrong, they can saddle farmers with increased costs, making them less competitive and shifting production out of Canada to markets with little or no cost associated with a climate policy.
I'd like to repeat that grain farmers are not against reducing greenhouse gas emissions. In fact, it's the opposite, as they have been putting in place the agronomic practices and investing in new technologies that have actually helped to reduce emissions for decades. Grain farmers would welcome meaningful international agreements that put farmers on a level playing field and ensure that everyone is living up to the standards we set to reduce our environmental impact. Unfortunately, that is not likely to happen anytime soon.
That is why we welcomed the confirmation this morning that gas and diesel used on farms will be exempted from the federal carbon price backstop.
However, grain farmers will still face additional costs due to a framework that will put them at a competitive disadvantage. For example, the propane and natural gas used in grain dryers will be subject to the fuel charge. While the fuel charge will be reduced for propane and natural gas used in greenhouses, grain farmers will not be given the same relief. Our hope is that the government will reconsider that decision.
The challenging conditions that growers are coping with during this fall's harvest, caused by increasingly erratic weather patterns, have underscored the important role that grain dryers play. Just as propane and natural gas are essential for keeping a greenhouse warm, they are essential for a grain farmer during a wet fall.
Providing additional relief will not impact growers' commitments to reducing GHG emissions. Growers are already doing that, and they will continue to work hard to grow more with less.
In the meantime, Canada can and should continue to show international leadership on this important issue. Canadian grain farmers are already part of the climate change solution, and Canada should be proud to use them as an example of what it means to have the economy and the environment go hand in hand.
Thank you again for the invitation. I look forward to your questions.