Thanks.
Early in my career I had the pleasure of being corporate treasurer of United Cooperatives of Ontario, an agricultural co-operative which provided farm inputs. I learned an awful lot about the agricultural community and it sensitized me to the reality of the family farm.
The northeast of Ontario is mostly dairy and cattle and the southwest is seed and grain. Their requirements are a little different in terms of their inputs. I will share with the House a few things an urban person learned about the farm, which I think Canadians would be interested to know.
When there is an economic downturn in Canada farmers are the first to suffer and the last to recover. That is the reality I saw in the agricultural community in Ontario.
I learned about the technology of farming. It has been changing dramatically, so much so that we can produce more food with many fewer farms than we ever did before. That is a tremendous pressure on the family farm. How can a family farm compete? Large corporations are buying up farms and consolidating properties. They are able to negotiate with suppliers to get significant savings on agricultural inputs that are not available to the small family farm. Economies of scale are a big issue.
There is no question that the family farm is declining. This is unfortunate but widespread. I listened to the speech of the hon. member for Dufferin--Peel--Wellington--Grey. It was an excellent speech. He has a plan. However the family farm needs help so I am here to lend my support. I am here to say I support the agricultural industry and the family farm.
I do not have the current figures on food and our economy. However Canadians should know that we are not just talking about the livelihood of farmers. Only about 2% of the population are farmers. We are talking about a major industry in Canada which employs an enormous number of people outside the farm gate. I am talking about all the people involved in the supply of inputs, fertilizers and chemicals. I am talking about the Ciba-Geigys, the Monsantos and CF Industries in the U.S. which is a major fertilizer supplier.
I will give an example of the problems and cost issues that used to come up. CF Industries used to make me strike a purchase price for fertilizer months in advance of delivery. Because it came from the United States, I had to make a decision on purchasing timing because there was a risk on the foreign exchange side. We also had to pay in advance. Time is money and this adds to the costs.
In considering this example of incremental costs to the inputs of a farm operation, we can imagine how many other aspects of farming are not typical. There are risks inherent in the agricultural industry. We know about the tragic drought across Canada and other serious problems. We know about the risks we face with regard to foot and mouth disease and the safeguards being taken.
The Government of Canada is concerned about the agricultural industry. Has it been able to do enough? I do not believe so.
During the pre-budgeting process we will get an opportunity to show our support by talking with colleagues like the hon. member for Miramichi who has been such a sound spokesman on behalf of the Canadian farm.
The Government of Canada will make sure it is there in situations of economic downturn where farmers are the first to suffer and the last to recover. It will be there on behalf of all Canadians because it values our food supply.
I cannot overstate the fact that the Government of Canada spends an enormous amount to protect the quality and safety of our food supply. It is another cost to taxpayers but an important one. If the safety of our food supply is in jeopardy Canadians as a whole will suffer. Seventy-five per cent of our exports go to the United States. A large percentage of that, around 80%, is agricultural production.
I am here tonight as an urban member of parliament with a bit of knowledge of the agriculture industry. I know enough about it to know it is important. I favour continued support for the agricultural community. Seeds and grains were the hardest hit by the drought in the last round. However it is not the only tragedy we have had in the agricultural industry. Canada must be vigilant about how to protect the things that are most important to us. I cannot think of anything more important to Canada right now than the security of our food supply.
I thank members for participating in the debate. It is important that Canadians know we care about agriculture.