It's a pleasure to be here. Good afternoon Mr. Chair and honourable members.
My name is Branden Leslie and I'm the manager of policy and government relations with the Grain Growers of Canada.
Canada's grain sector is both a major user and producer of energy such as biofuels. The just transition will directly impact farmers and their operations, so we appreciate being able to share our perspectives with you here today.
Farmers are proud of their stewardship of the land, of their ever-improving record of sustainability, and of the fact that they feed millions of people here at home and around the world. Farmers must be at the table when it comes to charting our nation's path to net zero by 2050, which is why we remain frustrated by the fact that agriculture is not represented on the net-zero advisory body.
As part of Canadian grain farmers' ongoing leadership as environmental stewards, we continue to look forward to ensuring our competitiveness and our environmental and economic sustainability. We require the federal government to understand and enact policies to support, not hinder, those objectives.
That's why on March 28 we were proud to launch the development of our Road to 2050 climate solutions initiative, which is intended to guide government policies and programming directed at Canada's grain sector, ensuring farmers are supported in their efforts to reduce emissions and increase carbon sequestration.
In the meantime, however, I would like to outline some realities of energy use requirements for our sector and how best we can mitigate the impacts of climate change while remaining competitive as we work to feed a growing world population.
Mr. Chair, Canadian agricultural energy demand increased from roughly 200 petajoules in 1990 to roughly 300 petajoules by 2016. While this might sound concerning, a more important fact is that the amount of energy consumed per dollar of agricultural output fell by 17%. This is sustainable intensification of production. This is what we should ultimately be working towards—maximizing our production in a sustainable manner.
At a time when the world is facing a looming threat of food insecurity, Canadian farmers are being asked to grow more. They are facing policies that could limit their production, such as the reduction in fertilizer use. Prices for inputs such as crop protection products and fertilizer have dramatically increased recently, further reducing already very thin margins for farmers.
It's important to note that farmers are ultimately price takers and cannot pass on additional costs as many other businesses are able to do. These crop inputs are some of the highest expenses for grain farmers, so they are utilized as efficiently as possible, but they must not be constrained in their use by government policy. I can assure you that farmers are not spending tens or hundreds of thousands of dollars extra on inputs like fertilizer just for the fun of it.
Mr. Chair, farmers are adopting the use of renewable energy where possible. The number of farms using renewable energy sources more than doubled from 2016 to 2021. However, the reality is that our farm equipment and transportation system mainly runs on diesel. Our grain dryers run on propane or natural gas. Our crop inputs require fossil fuels to be manufactured. Progress is being made towards moving to alternative fuel sources for all of these, but the reality is that they are not currently available. Realistically, given the cost of new machinery and a host of other challenging issues, it will take years, if not decades, before they are scalable.
In the meantime, a just transition must ensure that the cost of producing the food we all eat does not rise dramatically. That can only be the case if the family farm in Canada is profitable. Extra costs added to the fuels that farmers have no choice but use simply isn't a viable option.
Farmers are innovative by nature and embrace the newest technologies. From beneficial management practices to the newest plant genetics or precision agricultural technologies and more efficient machinery, farmers have and will continue to invest in things that are good for their bottom line, their soil and the future of their operation. They can only make those investments, however, if they have the capital to do so.
Canadian farms have tremendous potential to sequester even more carbon in the years ahead and will continue to work to reduce emissions. However, if our nation wants to ensure our food security, farmers will require the use of fossil fuels in the short term.
If Canada is to consider what a just transition to a low-carbon economy looks like, I would ask that you take into account these realities for farmers. We must ensure that our farms are able to be sustainable now and into the future, both economically and environmentally. It is critical that government policy reflects these current realities so that Canadian farmers can continue to feed our nation and the world.
Thank you, Mr. Chair. I look forward to your questions.