Mr. Speaker, I appreciate the opportunity to speak on the emergency debate on farm income.
I am very glad that our Standing Committee on Agriculture and Agri-Food has been listening to witnesses from almost all commodity groups across the country for several weeks.
Because this crisis is very real we want to work with all involved to assist our farmers.
The Minister of Agriculture and Agri-Food has spoken with passion and conviction about the serious situation in farm income. I know his commitment to deal with this problem is sincere and his response reflects the nature of the challenge.
Demand for key agricultural products in Asia and Russia has been drastically reduced as the buying power of consumers has shrunk. The link between the global financial crisis and farm income in Canada is not a matter for debate.
Combine this with the simultaneous cyclical price downturns in grains, hogs and cattle and pockets of poor production in some areas and we get a situation in which many producers are seeing a pretty significant reduction in income this year, in fact a drastic reduction.
There may be some members who would argue the answer to these problems is insulation from the global economy, but that reflects their simplistic view of the world rather than compassion for those affected by this crisis. Offering complaints cannot be equated with offering solutions and what people need are workable solutions.
Talk of removing Canada from global markets, international trade and the need to export makes great rhetoric but will not make one iota of difference to the financial security of men and women working on Canadian farms. Neither will bland complaints about not getting everything we want or when we want it from trade negotiations.
Let us do our farmers justice by eliminating the rhetoric and instead working together to offer practical responses to a complicated problem.
The responsibility of governing demands that we offer the pragmatic and not the dramatic. As this government has done in the past, we will continue to work with farmers and provincial governments to put programs in place that are equitable and available to all in need, no matter what province they live in.
We will also work with these same partners to develop a strong, united and compelling position for international trade negotiations. In bringing forth long term and short term responses to this serious situation, we are committed to both collaboration and co-operation.
Canadian farmers have a right to expect such an approach to this problem. There is no room for theatrics or one-upmanship given the nature and the magnitude of the problem.
Our most recent farm income figures, and let me underline that these figures were developed with the provinces, show that at the national level overall net farm income is down 4% from the average over the last five years and down 20% from 1997.
Of course that aggregate number hides the problems we know exist. Some parts of the country are suffering worse than others and depending on the commodity, some producers are practically unaffected while others are hurting very severely.
We know there are serious problems in the hog and grain sectors. The majority of hog producers are in Quebec, Ontario and Manitoba and yet Atlantic Canada has significant hog production and so these areas have been affected.
The majority of grain farmers are in Saskatchewan, Manitoba and Alberta. There are grain farmers in parts of Ontario. There are wheat farmers in my riding. Meanwhile we must not forget that we have other producers who experienced serious droughts and even outbreaks of disease such as scrapie. This is the full context of the farm income situation and we must recognize all the forces at work. Doing this will help to bring sense to the numbers.
Looking at these problems regionally we see that in Prince Edward Island, Saskatchewan and Manitoba the situation is particularly serious. Realized net farm income is forecast to be down 40% this year in P.E.I. and Manitoba while in Saskatchewan farm income could fall almost 70% relative to the previous five year average. Unfortunately our current forecast also predicts that those who are having trouble this year are not likely to see improvements next year.
I know there are a great many people in communities from coast to coast facing hardship and who are looking to the Government of Canada for relief and assistance. There are other pressing issues that demand the attention of the federal government. It is not one or the other. We must find a way to do the best we can for all these people.
The farm income situation is not one that the government will retreat from any more than it will retreat in the face of any other challenge. We want to fix this problem as quickly as possible in order to bring some sense of calm back to the sector that has become increasingly desperate in recent days.
Moving forward, not backward, requires partnership between the levels of government. That principle was established in previous events. As with the ice storm earlier this year, the federal government will pay its share. The provinces can count on that.
In designing our immediate response to the farm income situation, we will shoulder our load. Clearly provincial governments in affected areas will also have a load to bear, and that is unavoidable. The challenge is to design a response that divides the load and best serves the public interest. Again this is a sincere and pragmatic approach and reflects the responsibility of government.
There is never a place for adversarial relationships between federal and provincial governments. In the current situation this is especially true. The Minister of Agriculture and Agri-Food has made it clear that he wants to work with the provinces in addressing this situation. Farm organizations and both levels of government are now working on solutions that address conditions in the affected regions to meet the needs of those most affected.
The minister has also emphasized the need for open communications and a transparent process to let people know what is happening. Solutions will come from this hard work. Effective programs will be produced by this approach. Will it be flashy? No. Will it be a total cure? I think not. There are no quick, easy or total solutions.
Workable and meaningful solutions do not have to be flashy or miraculous in order to make a difference. Making a difference is part of governing. The Government of Canada is committed to making a difference in the farm income situation.