Mr. Speaker, I really appreciate having the opportunity to debate this very important issue on farm income.
The federal government is committed to a strong, healthy, viable agricultural sector. Looking at the sector as whole it is exactly that, a strong, healthy and viable sector. That may surprise some people because that is not what we have been hearing in the news lately. One of the things I hope to do today is to give my colleagues and those who are listening a better understanding of this whole farm issue. It is very complex. It is not a simple issue, as many people have tried to say.
I am not suggesting that the sector is without challenges. Some farmers in pockets throughout our country, in western Canada in particular, have had many problems to face this past year. Farming is affected by weather and the marketplace, and sometimes, as we have witnessed in the past year, both factors collide at one time.
In this case the farmers' bottom line has felt the impact of a whole range of circumstances coming together at one time. The crisis in the Asian and Russian economies and the downturn in Latin America caused some markets to shrink. Declining commodity prices and an overproduction of wheat in the world also had an impact. We experienced at the same time difficult flood conditions in one region and drought in another. Needless to say, the effect on income to farmers, particularly those in grains, oilseeds and hogs, was severe.
The Minister of Agriculture and Agri-Food has responded to that situation and is continuing to work to put the tools in place to assist the producers, especially those who are most in need.
There are a number of tools which were put in place by this government to help producers through difficult times, as the minister of agriculture has pointed out in his remarks. However, often the challenges farmers face throughout the country are as diverse as the commodities they produce. As the Minister of Finance said in his budget speech earlier this year, a government that pretends it can be everything to everybody is a government that in the end will do nothing for anybody.
What a government can do is create conditions for a productive and competitive agricultural sector as a whole. That is what this government has done and that is what this government will continue to do. While doomsayers would have us believe that there is a crisis in Canadian agriculture, overall and across this great nation the agricultural sector is strong.
Overall Canadian farmers are among the most productive and efficient in the world. Farm production has been going up and so has farm net worth. Overall farmers have adjusted to constantly changing international markets. Their success is obvious when we look at our export numbers. Agricultural exports have risen from $13 billion to $22 billion over the last five years and even with the economic challenges of this past year they will be up slightly from 1997, which was a record year. Horticultural crops, special crops and red meat all had increases last year.
Trade is most important to growth in this sector. About half of the average farm gate income to Canadian farmers is the result of trade. That is why the government is working on the international front to bring order and stability to world markets and to provide better access to world markets. Despite the commodity market challenges, the outlook for Canada's agriculture and agri-food sector is positive.
Our industry has also met the evolving demand for specialized processed products. Our exports of value added products are surging. In fact, they grew by almost 9% last year. Processed goods means processing plants and jobs, jobs that add to the sustainability of our rural communities.
The industry itself has a lot of confidence in its own capabilities. Already Canada has about 3.3% of the world's agri-food trade. The Canadian Agri-Food Marketing Council, or CAMC, has set a goal to increase that to 4% by the year 2005.
CAMC, which is made up of agriculture and food representatives, has also set a target of increasing processed agricultural exports over and above bulk commodity exports. By current indicators, there is no reason to think the goal will not be met.
Our supply managed commodities are faring well. Farm cash receipts for chicken, for example, went up about $250 million from 1995 to 1998 and were about $1.3 billion last year. Egg receipts have increased slightly, while dairy receipts grew by $299 million to close to $4 billion for that same period.
Furthermore, for many commodities that have been affected by weak prices there are signs of gradual improvement, with indications that prices have hit a cyclical bottom. Red meat is doing extremely well and feedlot levels are at an all time high.
The worst situation a farmer can experience is foreclosure. It is the last thing anyone wants to see happen. Agriculture and Agri-Food Canada provides a financial review to producers through the farm consultation service and, for a stay of proceedings, financial counselling and mediation through the farm debt mediation service. These services have been extensively communicated to producers and creditors. While there is some increased activity at this time under these programs, applications are not at a high rate across Canada. Fortunately, we are not seeing thousands of producers experiencing financial difficulty, although there are reports which say that is happening.
The Government of Canada knows how important the agriculture and agri-food sector is to Canadians in general. The Canadian agriculture and food industry accounts for close to one-tenth of Canada's gross domestic product. It employs 1.8 million people either directly or indirectly. I would say that is a pretty solid business.
It is an industry that is varied and offers many interesting careers for young people. While we know the hard work of Canada's farmers helps to drive the entire economy, it is becoming more obvious that there is a wealth of other rewarding and worthwhile paths available to young people in this sector as well. Graduates from Canada's agricultural colleges and universities have jobs lined up before they graduate and there are even signing bonuses for some who are graduating. This is another sign of an industry that is strong and growing.
Canada has a worldwide reputation in agri-food products. It is unsurpassed anywhere in terms of high quality and safety. No matter where we go in the world, when people see a label with the red maple leaf, it is recognized for its quality, which is second to none. We continue to build on that reputation with team Canada missions and exhibitions at international food shows and by attracting buyers and investors to Canadian industry as we will be doing when we host the North American Salon international de l'alimentation.
The agriculture and agri-food industry has gone through a great deal of change over the last decade and has proven over and over again that it can meet the challenges and tackle the opportunities presented to it as it moves forward in the new millennium.
There are certain areas of the overall sector that are facing difficult times and the federal government is providing those producers with the tools to overcome these difficulties. Success is not a solo effort, nor is failure. By working together, the industry and all levels of government, this industry will continue on a path of growth and success.