Honourable Chair and committee members, good morning. Thank you for the opportunity to appear today.
The Canadian Horticultural Council represents fruit and vegetable farmers across Canada, who grow over 120 different types of crops, with farm cash receipts of $5.4 billion in 2017, the foundation for an estimated produce value chain of $13.9 billion of real GDP and over 181,000 Canadian jobs.
Today, I want to highlight a few examples of how investment and support through budget 2019 would directly feed into our sector's ability to innovate and remain competitive while supporting the federal government's goals.
The first example relates to the importance of regulatory resources. Our farmers rely on government agencies, regulations and programs as they navigate the complex, evolving and increasingly costly food system. The decisions of the Pest Management Regulatory Agency directly impact the tools farmers have to protect their crops from pest damage, minimize food waste and maintain quality standards. Despite efforts to improve their stakeholder consultation process, PMRA is hindered by a lack of resources and scientific data as they try to meet their mandate of regulating pesticides. PMRA re-evaluations review individual active ingredients without further analysis of the big-picture impacts. Pest outbreaks require a full tool box, but growers are being asked to do more with less, as numerous crop protection products are being cancelled without new, effective alternatives entering the regulatory pipeline.
Other agencies are seeing a growing role in the success of Canadian horticulture. PMC's role in the regulatory approvals required for new pest control products, especially minor-use pesticides, and its pesticide risk reduction program are expanding. CFIA is leading the implementation of the 2017 approved plant and animal health strategy, including the plant health network and the Canadian plant health council. Adequate funding is needed for CFIA to be able to fulfill its critical role to reduce the risk of invasive species, adapt to climate change implications, regulate pests and diseases, gain access to new export markets and provide technical expertise to address non-tariff barriers.
CHC urges this committee to support increased funding in budget 2019 for government agencies such as the Pest Management Regulatory Agency, the Canadian Food Inspection Agency and the Pest Management Centre. They are critical to farmers' productivity, innovation and competitiveness.
The second example is the critical need for farm labour. Specifically, without efficient and timely access to an adequate workforce, it becomes impossible to grow and harvest perishable fruit and vegetable crops. The crops will simply rot in the field or greenhouse, on the tree or on the vine. Despite ongoing and rigorous recruitment, farmers are unable to find Canadian workers and must rely on the seasonal agricultural worker program or the agricultural stream of the temporary foreign worker program to address their labour needs.
CHC urges the federal government to allocate funds to implement a trusted employer program to help streamline and standardize the labour market impact assessment application process. In 2018, federal funds were provided through Employment and Social Development Canada for the support of foreign workers. However, farmers are already going above and beyond the requirements for employers to contribute to their local community support network. They know the value of the workers to their livelihood.
CHC recommends that ESDC funding be added, or redirected from budget 2018 allocations, to ensure a balanced approach to employer and employee education on the rights and responsibilities of both parties to maintain a safe and productive working and living environment.
Finally, we emphasize the need for policy alignment to reach federal goals. The federal government has emphasized its goals of trade diversification and the January 2019 implementation of a federal carbon price to respond to climate change. Infrastructure support is crucial for farms to continue to expand their operations and further contribute to Canada's economy. With the current limitations, many farms are unable to take advantage of market opportunities. An example of a specific infrastructure project is the proposed national tree fruit investment program.
New market access for tomatoes and peppers to China, combined with the current cucumber access, is expected to rival greenhouse exports to the U.S., valued at nearly $1 billion in 2017. With all due respect, we wonder how the Government of Canada can ask greenhouse farmers to step up to the plate to increase exports while they are the single most disadvantaged sector domestically and internationally with respect to carbon pricing.
The agriculture exemptions provided for in the budget implementation act did not provide any relief for greenhouse farmers, who use little or no gasoline and diesel. The legislation also currently excludes farm fuel exemptions related to heating and cooling uses, which are essential for greenhouse crop production and post-harvest and storage activities across various agricultural sectors.
The best opportunity to reduce agricultural emissions and grow operations, and therefore the economy, is found where harmonized policies, stable tax regimes and business incentives exist, so farmers and government can see a return on investments in infrastructure, technology and research.
Farmers want to be part of the solution.
Thank you.