Thank you, Mr. Chair.
My name is Gary Stanford and I am a farmer from southern Alberta.
The Grain Growers of Canada represents 80,000 grain, pulse, and oilseed farmers. We believe that the government does not owe farmers a living, but should create a policy environment that will allow us to make a living. Our aim is to ensure an advantage for our farmers through innovation, and we have a couple of budget requests to make.
On public research, the federal contributions to Agriculture and Agri-Food Canada's research branch are only 60% of the 1994 inflation adjusted numbers, and we have far fewer plant scientists and breeders today. There is a big need for increased investment in research branch expenditures and a plan to replace aging scientists.
A good example of public research on my farm is the use of Agriculture Canada breeders' development of a winter wheat that is resistant to the leaf curl mite. This insect used to wipe out acres of my crop and there was no way to control it. The winter wheat has now put thousands of dollars a year in my pocket, just on my farm alone.
On a certified seed tax incentive, one of the barriers to private and public investment in cereal and pulse research is the low use of certified seed—except in Quebec, where farmers plant certified seed to qualify for crop insurance. When I go to talk to public plant breeders at the Lethbridge research station in Alberta, they tell me that the more certified seed sold, the more money would flow back into their work. A tax credit of 155% for farmers to buy new certified seed annually would encourage more investment in cereals and pulses.
The George Morris Centre estimates that if we reached full certified seed use potential, the tax credit would increase farm incomes by over $170 million, just from the eight most recent varieties alone, and would generate over $60 million in tax revenues from just those eight varieties. The return to the economy would be $600 million.
On capital cost allowance adjustments, there are farms where adjustments to depreciation rates would provide a direct stimulus to jobs and improve our sustainability. Here, we would encourage, first, safe on-farm fertilizer storage to allow us to buy when prices are low and to ensure supplies.
Second, just as you MPs use GPS devices in your cars, we should encourage all farmers to use GPS in our machinery, because it will keep our tractors driving in straight lines. This reduces pesticide use, fertilizer use, and fuel consumption on our farms.
Lastly, we must improve the quality of our on-farm grain storage. In the last couple of years, we have seen greatly increased testing of cereals, pulses, and oilseeds for trace amounts of mycotoxins. We need better storage and monitoring systems on our farms. For example, aeration blows large volumes of air, drying our grain and cooling it down to prevent growth of harmful bacteria. Looking forward, we are going to have to install more temperature monitoring control cables to catch any early problems. This would help ensure that our harvested grain remains in top condition and is healthy for Canadian consumers.
In conclusion, Grain Growers of Canada believes that increased agricultural research in Canada is critical to securing the prosperity of Canadian farmers. An amount of $26 million a year in increased core Agriculture Canada research funding over 10 years would restore us to 1994 levels. A certified seed tax credit incentive would promote greater public and private sector involvement in cereals, pulses, and forage research. Investments in more environmental and sustainable ways of farming and safer grain storage would help increase consumer confidence in our own domestic food systems. These initiatives would create jobs and economic activity, as well as strengthen the competiveness of Canadian farmers, and would also help reduce the need for farm support programs.
We urge you to give careful consideration to our thoughts and ideas. We look forward to your questions. Thank you.