Good evening. My name is Jake Vermeer, and I'm a proud first-generation Canadian from Camrose, Alberta.
I am humbled to be given the chance to speak before you today on behalf of an industry that I am so passionate about. I want to begin by telling you about our farm, to help provide you with context regarding the people who are impacted by the CUSMA agreement.
In 1991, local Dutch officials notified my father and grandpa that their land was going to be placed under an expansion ban for the purpose of diverting a local waterway through their land. This capped the number of cows that our family could milk and thus the farm could no longer sustain two families. This was a massive blow because, for generation upon generation, my blood lines have milked cows and tended the land together.
Farming is a lifestyle before it's a job. My grandpa told my father that if he was set on farming he would need to find a new place to start over. My parents were in no financial position to relocate in Holland, so they decided to come to Canada as exchange students and experience the tall tales of Canada that they had been hearing. Those tales of large parcels of land, genuine people and the opportunity to sustain a family did not disappoint. My parents, at the ages of 24 and 28, decided to immigrate and bought a small 40-cow dairy and 160 acres of land. They spoke little to no English and came to Canada with a strong work ethic, a desire to milk cows and a hope for the Canadian dream. Shortly after making the most significant investment of their young careers, the first NAFTA agreement was signed and talks of ending supply management circled the dairy industry. My mother remembers my father coming home from an Alberta milk meeting and saying, “I think we made a huge mistake.” However, stronger heads prevailed and the Canadian government was able to negotiate a fair deal for its dairy farmers, and they were able to prosper. They were relieved and continued to grow the farm.
The story of my parents and the farm legacy that they began is one that showcases true perseverance, hard work and progressiveness. It was with that market stability and fair compensation offered by supply management that my parents turned that small 40-cow dairy into the 600-cow dairy it is today. We employ more than 15 local Camrose residents, and our farm generates a considerable amount of economic prosperity in a shrinking rural Alberta. Our farm, and many farms like it across the country, locally source grains, veterinarians and processing plant. It is not hard to see that dairy farms are a large contributor to rural and urban economies. In fact, across Canada we contribute nearly $20 billion toward the GDP and sustain about 200,000 jobs.
Times are changing, however. Countries have negotiated new trade deals with Canada, and our governments have slowly passed out our domestic dairy market shares. In CUSMA alone, we will lose 3.9% of our market, as well as the elimination of class 7, an integral part of meeting the butter demand of Canadian consumers. It's important to note that the 3.9% is in addition to the current access already granted through the World Trade Organization, the Canada-European Union Comprehensive Economic and Trade Agreement and the CPTPP. The combined access for all the agreements totals 18% of the Canadian market or $1.3 billion of Canadian producer revenue. Each of these deals delivers a crack to the foundation of supply management. There are deep local economic ramifications of these concessions. The projected loss for Alberta regarding the market loss is $16.13 million. The elimination of class 7 and restrictions on exports/surcharges ranges from $4.8 million to a staggering $29.66 million. We can assume those impacts will have a ripple effect, starting in rural Alberta with those that our farms rely on most and then have the potential to affect urban areas. This agreement will send an end to nearly 40 farms in Alberta and far more across Canada.
The negative effects don't end there. As a Canadian and a Canadian dairy farmer, I find one of my main concerns with the CUSMA agreement is the new American oversight on dairy policy in Canada. The oversight clause undermines Canadian sovereignty and its ability to develop and manage Canadian policies without U.S. intervention. These transparency provisions are contained in the annex in a series of clauses. For example, Canada must inform the U.S. of any milk class modification. The U.S.A. will not need to provide similar levels of transparency into its system. This approach is yet another example of how the CUSMA removes our competitive advantage and ties the Canadian dairy industry's hands to American decision-making. This should not be understated and will have a lasting effect on our domestic dairy sector. Our anthem proudly states “true north strong and free", but this new American oversight is far from it.
The Canadian government has continuously handed out market shares in every new trade deal, and this has left our dairy processors in a state of uncertainty. With a lack of investment, our processors are now aging and unable to meet the demands of our market. We need market stability in order to garner proper investment in the processing industry in order to compete against the foreign milk that is invading our market. Without this investment, farms like mine won't be able to continue to grow and contribute to the economy.
My final point comes from my grandparents, who still live in Holland. They notified us about a debate that is taking place in their parliament regarding CETA.
In the last CETA agreement with Europe, Canadian beef farmers were given a new market share to export beef. We were told that this exchange was necessary for dairy access. However, the debate that is occurring is whether Europe feels that our Canadian beef meets their standards to be allowed into their supermarkets. If we have to make an import concession to create a new export market, should we not then allow our trading partners to close that market after the deal has been struck? Otherwise, what was the point of our dairy concessions? Now, both our beef and dairy farmers are no better off for it. There has to be a better way.
Dairy farmers in Canada have always been cherished as family farmers who produce the highest quality milk and take great pride in taking care of their herd. However, every time a new trade deal comes around, we are forced to sacrifice a portion of our market to complete the trade deal. We see very little in return for our sacrifice, and while we are appreciative of the compensation packages, we would much rather earn the money by supplying consumers with the dairy products they deserve. As a young producer looking forward to the future, I don't see the same thing my parents did 25 years ago.
As foreign governments demand my market shares and I see my costs rising for producing the same litres of milk, I worry about the sustainability of my livelihood, because farming isn't just a job, but a lifestyle.
I am proud to have been able to share with you the viewpoint of our family farm. My parents and I are still extremely proud to live in Canada, but we rightfully worry about the future and that of my kids. CUSMA will have a significantly negative impact on our dairy farm and on thousands across the country, not just now, but in perpetuity. I stand here feeling what my grandpa must have felt when his land was annexed so many years ago. Despite our best intentions, with 3:30 wake-ups, 14-hour days, and supporting our local communities, my farm will now struggle to grow, and I worry about our future.
Our farm has always had a saying: “If you're standing still, your going backwards.” It's time for this government to let us move forward. I appreciate the opportunity to speak today, and I hope I was able to put a face to the negative impacts of signing this agreement and the impacts on dairy farms across Canada.