Thank you.
Mr. Chairman and committee members, thank you for inviting us here today to provide our recommendations for the 2017 budget. My name is Dan Mazier, and I am the president of Keystone Agricultural Producers, or KAP for short.
KAP is Manitoba's general farm organization. We work on behalf of all farm families in the province, taking direction from our members, which include individual farmers and commodity groups.
I want to stress that farmers are small business owners who significantly contribute to Canada's economy. Primary agricultural producers have created more than 275,000 jobs for Canadian workers, and the agrifood sector as a whole is responsible for employing one in eight Canadians. Agriculture's financial contribution to the economy is equally important, representing over $108 billion of Canada's GDP in 2014.
Because of our competitive and ambitious producers, Canada is in a position to capitalize on increasing demands for food, as the world population grows. Our producers are also equipped with the skills and ingenuity needed to meet growing domestic consumer demands for new agrifood products. We are certain that great opportunities exist, and we ask that you consider the four recommendations we are about to make.
The first is to support farm families and new farmers. Farming operations now require greater start-up and ongoing capital investments, so we see few younger farmers. In fact, the average age of farmers is 54 right now. Additionally, many young people are moving away, leaving older farmers unsure about who will take over the family farm.
Undertaking effective tax planning is crucial to the continuation of family farming in Canada. We urge that the rollover provisions regarding family farm transfers be amended to recognize the full breadth of family relations relied upon to maintain family farms. We also advise that family farm corporations be provided with a level playing field when transferring their businesses to the next generation. This includes access to the capital gains exemption and ensuring siblings can access the same provisions as other family members.
Our next overall recommendation is support of clean technology and innovation in agriculture. Several opportunities exist for producers to do this, but they need support. Canadian farmers have already demonstrated their willingness to adapt to climate change and embrace sustainability, and they already make investments that reduce greenhouse gas emissions, improve water quality, and reduce the use of inputs such as fertilizer and pesticides. However, many new technologies are expensive, and without government supports they are viewed as too costly to invest in. For this reason, we urge you to develop and support incentives, such as tax credits or rebates, which will make cleaner technologies more accessible to producers. Additionally, we urge you to consider making greater investments in the research and data collection needed to inspire and support clean technology development. As well, a national strategy is needed, one that includes federal investments in research, commercialization, and incentives for the adoption of technologies.
Our third overall recommendation is supporting access to new markets for Canadian agricultural products. There are remarkable opportunities to improve international and domestic market access and reach, but in order for these opportunities to be realized, government and producers must jointly develop a strategic market access vision. We must also develop plans to address labour shortages in the agricultural sector and infrastructure weaknesses that limit our ability to meet market demands and trade objectives. We would also like to see the federal government continue to take a leadership position on, and make investments in, further opening up internal trade to ensure greater domestic market access for agricultural products.
Our final recommendation is support of technology upgrades and access in rural areas. In order to effectively market their goods, have access to services that ensure safety, and stay abreast of emerging issues and technologies in agriculture, producers must have access to high-speed Internet or broadband Internet service. They, and other rural residents and businesses, must also have access to the reliable cell services that our urban counterparts have.
Thank you, Mr. Chairman and committee members, for this invitation and your time. I look forward to answering any questions you may have.