Mr. Speaker, I am pleased to have the opportunity today to join in the debate concerning the future of the Canadian agriculture and agri-food sector because it is a fundamental concern that unites us all.
As a former agriculture producer of asparagus, cauliflower and tobacco, I know very well the ups and downs of farm income, low commodity prices and weather conditions. There is much the government can do and should do.
While we acknowledge that farming is a risky business, our government is working from coast to coast to coast in support of agriculture and our agri-food sector. Together with farmers, local organizations, provincial and territorial governments we are working co-operatively to improve producer efficiencies, to develop market opportunities, and to encourage sustainable environmental practices.
As the minister pointed out in his remarks, farmers and governments have both planned well ahead of time for a market downturn in farm commodities. We are now, however, experiencing a farm crisis.
At the October 15 meeting of the National Safety Nets Advisory Council there was a discussion of a national disaster program. The federal and provincial representatives as well as farm leaders from across the country agreed that farmers were facing some very difficult economic times.
As the Minister of Agriculture and Agri-Food stated in my riding two weeks ago, he does not want Canadian farmers left twisting in the wind if the current bout with poor commodity prices continues for long.
Jack Wilkinson, president of the Canadian Federation of Agriculture, feels a program could be finalized relatively quickly even by February. While he is not sure what the final program may look like, it could be premium free and could be triggered by individual farm operators suffering from a drastic loss of income caused by either crop losses or reduced market prices.
“A whole farm approach may be taken and a program will have to be designed to be trade neutral”, stated Mr. Wilkinson. He suggested that any new program, if put in place, will complement existing programs.
For Ontario farmers existing programs include the market revenue program for grain and oilseeds producers, the NISA program and crop insurance, but we also need a third line of defence.
Changes have been made to NISA already, enabling farmers to take advantage of early withdrawals based on estimated income projections rather than on year end tax statements. There are whole farm disaster type programs now in place in Alberta, British Columbia and Prince Edward Island.
NISA program moneys are available to Canadian farmers and add up to about $2.5 billion. That equates to $17,000 for the average Canadian participant and about $16,000 for the average Ontario participant. I would be remiss in saying that there are approximately 40,000 who have $1,000 in that program.
We now live in a global economic environment and there is much more competition for our product. On October 23 I had the pleasure of taking the minister of agriculture to four operations in my riding to see hemp, sugar beets, soybeans and a large farm implement dealer. I believe it is important to hear from the grassroots about what they are thinking, what their concerns are and their ideas for the future.
Chatham—Kent in southwestern Ontario is Canada's largest producer of hemp. A new firm called Kenex Limited, headed by Jean Laprise, is an example of the ability of our agriculture entrepreneurs to succeed in an increasingly competitive world. Already it has invested over $4 million in harvesting and production, making inside door panels for cars and trucks, floor mats, hemp cheese and hemp nuts, all for export.
The federal government is assisting in their enterprises. I was pleased this summer to announce funding for Kenex through the $60 million per year Canadian adaptation and rural development fund to help set up a processing line. It is one way we can help our rural communities adapt to change.
Many farmers across Canada are diversifying their operations and trying new crops, aiming for new markets. I also announced this summer funding for asparagus growers in my riding to assist them in the niche crop they are exporting.
Sugar beets are returning to southwestern Ontario after a 30 year absence. Some 3,000 acres were grown last year and this year 6,500 acres were grown by 103 growers, with estimated gross sales of $8.5 million, and 100% of this product is shipped to Michigan. It provides an additional crop rotation, increases employment through the supply, production, piling and transportation chain, and provides a future for many farmers. These are but a few examples of success stories in the agri-food industry.
Those of us who represent ridings in rural Canada, who have raised their families and earned a living in rural Canada, know full well the importance of farming in the agri-food sector. Producers, processors and retailers from the field to the fork represent a vital contribution to Canada's economy.
Those of us who live in rural Canada also know that many commodity prices are at or near record lows. Low grain prices, low hog and cattle prices, along with rising input costs, are causing income related concerns among producers. Since grains and oilseeds have been heavily hit by the loss of international markets, prairie farmers are most affected.
The shift toward canola and special crops like beans and lentils is no coincidence. Farmers are paying close attention to market signals and using that information to decide what to produce and how to produce it.
I am sure we can all agree that the current troubling situation was not created by factors only within Canada. The Asian financial crisis and Russia's economic woes have meant lost sales. Good crops combined with reduced demand have resulted in an oversupply in the marketplace and lower commodity prices. These low prices are expected to continue through 1999.
In the long term diversification means a stronger farm and a stronger farm sector and farmers know it because it accords with their keen business sense and strong competitive spirit.
Staying at the forefront of development is a constant process, a process of adapting to changing conditions, of adopting new technologies and of improving one's position in the marketplace. Hemp and sugar beet producers are doing exactly that in my riding.
The question then becomes what is the government's role in cushioning the impact of the farm income crisis. The government and our Minister of Agriculture and Agri-Food are addressing this issue in the most prudent and effective manner. In the short term the net income stabilization account holds $2.5 billion that Canadian farmers can access. This represents an annual contribution of $600 million by the federal government, $400 million by the provinces, and $600 million by farmers.
The safety net program is available to the farmers right now. Seventy-five per cent of NISA participants have sufficient funds to bring 1998 incomes up to average earnings in the 1993 to 1997 period. Any simplistic short term solution is not in anyone's best interest. Only a long term solution to the low commodity prices is appropriate. This solution cannot encourage trade sanctions and provoke a trade war. Sanctions would hurt the long term viability of Canada's agriculture and agri-food sector.
Canadian farmers do not want a stop gap or an ad hoc approach. Upon the invitation of our minister of agriculture, farm leaders and provincial government representatives are meeting tomorrow to discuss the problem. Let us hope the discussions are productive and fruitful and are in the interest of our farmers first and foremost.
Diversification cannot prevent downturns in the market but it can blunt some of the effects of that downturn. Diversification is not the only solution but is part of the effort to ensure the best possible prospects for the Canadian agriculture and agri-food sector.