Good morning, ladies and gentlemen.
It is my privilege to speak to the House of Commons international trade committee this morning. My name is Ray Orb, and I am the president of the Saskatchewan Association of Rural Municipalities, also known as SARM.
SARM represents all of the 296 rural municipalities in Saskatchewan. Rural municipalities are home to farmland, oil and gas, potash, and other natural resource industries that are important to both Saskatchewan and to Canada.
According to the 2011 census of agriculture, Saskatchewan accounted for just over half of the canola area in the country, about 48% of the spring wheat area in Canada, and approximately 40% of total farm area in Canada. With such vast farmland, and so many farm families contributing to our communities, SARM has a keen interest in the TPP because of what it means to the economy and the benefits it would bring to farm families.
For Saskatchewan's economy, the TPP region represents 45% of total exports in 2014. During that year, Saskatchewan totalled $13.9 billion of agricultural exports, which is a 19% increase from 2013. The province is well on its way toward its goal of $15 billion in agricultural exports by 2020.
Saskatchewan is also the second largest beef producer in Canada, producing more than a billion dollars' worth of beef annually and approximately 4.3 billion dollars' worth of value-added products that are shipped annually. The value-added processing will increase with the TPP agreement.
The TPP represents not only a great opportunity for Saskatchewan's economy, but also for producers, as they would gain better access to markets through the reduction and removal of tariffs that would be phased in with the TPP. Growth and investments would increase in the value-added sector as well through better access to the Pacific markets for processed products, including canola oil, beef, and pork.
SARM has taken opportunities to promote and raise awareness of the importance of the TPP. This includes a news release in October 2015 and a letter of support to both Premier Wall and the Saskatchewan Minister of Agriculture. During SARM's Ottawa lobby trip, which took place this last February, some representatives met with members of Parliament and department officials.
Agriculture has been, and continues to be, a consistent contributor to the economy even during times of economic downturn, as seen now in the oil and gas sector. Ratification of the TPP would support and bolster the agriculture sector in Saskatchewan and across Canada.
While the TPP would provide benefits to the agriculture sector and market, it is important the infrastructure be in place to support the increased activity that would occur. As Saskatchewan farmland is dispersed across the province, rail level of service is a vital mechanism for us to get our products to market. We have seen what occurs when the rail level of service is unavailable or is unable to meet the demand. Shipments are delayed by weeks and contracts aren't honoured. It is important for Canada to be able to efficiently meet its trade obligations, and it is equally important for product to get to markets so farmers can support their farms and farm families.
The infrastructure needs aren't limited to the rail level of service either. Funding for rural roads and bridges is necessary for ensuring that products get to key points for shipment, such as grain terminals and loading facilities. If these supporting projects aren't completed there will be serious challenges in the future. SARM is hopeful the Canadian Transportation Agency review and subsequent discussions will produce initiatives and amendments that contribute to a world-class rail system.
For SARM, the TPP represents a positive opportunity the many farm families across the province and the country can enjoy. It also reminds us of the importance of ensuring that we have the necessary—