Madam Speaker, I move that the 18th report of the Standing Committee on Agriculture and Agri-Food be concurred in.
Today, we are here to talk about food prices and food price volatility.
It is no secret that the cost of food has risen dramatically. We are seeing record numbers of people visiting food banks. In fact, in Ontario, one million people used a food bank last year. Food bank use since 2019 has gone up 135%. This has never happened in my lifetime. In the past three years, rent and groceries are up 40%. Canadians are spending 43% of their income on tax. That is more than housing, food and clothing combined.
It is easy to look at food prices in the grocery store and blame the big grocers for the high cost of food, but blaming them does not get to the root cause of the problem and why food has become so expensive. The bottom line is that the NDP-Liberal government's policies and regulations are driving up the cost of food and the cost for farmers to produce food.
We have heard this time and time again, and I am not afraid to say it again, and I will say it as many times as I need to, that the Conservatives will axe the tax. However, in the meantime, we need to pass Bill C-234, unamended, and give farmers a reprieve from the carbon tax.
I will give members an idea of why the carbon tax impacts the cost of food so much.
If we look at the supply chain from start to finish, every single step along that supply chain is facing increased costs, which can be related directly back to the carbon tax. Sometimes they are paying multiple times in carbon tax. For instance, farmers have to pay for fertilizer, and we are getting taxed right now on fertilizer. How does the fertilizer get from the fertilizer company to the field? It is trucked. We use trucks for everything in the country in order to get things from wherever it needs to be, from the farm or back to the field or from the field back to the farm. When we increase the cost of fuel for these trucks, which are not exempt from the carbon tax or from any fuel taxes for that matter, it is absolutely going to increase the cost of the production.
However, we should not believe everything the Liberals tell us, or when we hear that farmers are exempt from taxes on their farm fuel. There is a slight bit of truth to that, but for the most part, on modern farms today, we are not using just tractors anymore. Yes, tractors are exempt and any equipment that does not use a roadway is exempt. However, from experience on my own farm, we use transport trucks to get the potatoes from the field back to the farm to the packing house.
If we look at the prairies, farmers have to truck grain from the field back to the farm to put it in the bins for storage. What is the most economical way to get products from the field back to the farm for storage? It is using big transport trucks and taking less loads from the field back to the farm. It saves on fuel, first, and it save on costs. However, when those trucks are not exempt from the carbon tax, or any taxes for that matter, it increases the cost for doing business for farmers.
What is the end result of that? Farmers cannot eat up all those costs. It comes off their bottom line. It comes off what they would have as extra income to invest back into their farming operations. Of course, those costs are going to get passed on to the next part in the chain, whether that is direct to the consumer or direct to a wholesaler. In my instance, I have to increase my costs. When my costs go up, I have to recoup those costs as I cannot afford to eat them. At the end of the day, consumers and Canadians at the grocery store are going to pay more because of the carbon tax.
If folks are watching and they are from a city, they may not know where their food comes from. Out on the prairies, the fields can be 10 to 80 kilometres away from the home farm. For instance, some of our farms are 80 to 100 kilometres away from the home farm. We have no choice but to truck the goods from those fields back to the farm. Even if a farm is 10 kilometres away from the home farm, to go 10 times a day back and forth is 100 kilometres driven. Imagine how much fuel is being consumed on just transporting food from point A to point B at the farm gate, and I am not talking beyond the farm gate here. Therefore, the cost of that carbon tax on truckers is immense, and it is immense for the farmers.
If we tax the farmer who grows the food and tax the trucker who ships the food, Canadians are the ones who are going to pay more for the food. It is common sense.
One of the other policies the NDP-Liberal government has put forward that will greatly impact the cost of food is its ban on plastics for fresh produce. I have talked about this in the House before, but it is worth talking about again because this would have such a profound impact on the fresh food we eat. Two-thirds of the produce Canadians eat is imported from other countries, and if we ban plastic on produce, we will see a 34% increase in the cost of fresh produce in this country, on top of what we are already seeing as high costs for food.
It will also reduce the availability of fresh produce to Canadians by over 50%. Members can imagine 50% less choice in the grocery store for Canadians. It will cost the industry $5.6 billion. On top of this, it will have a 50% increase in greenhouse gases on the produce supply chain because of rotting produce. It is also going to increase CO2 emissions from the rotting produce.
I would like to say that I will be sharing my time with the member for Regina—Lewvan today.
When we talk about the 50% increase in greenhouse gases from rotting produce, that does not include the increased transportation costs to truck more food and have more trucks on the road going to grocery stores because we are going to need more food. It is going to increase the health care costs by over $1 billion per year.
Back in my riding and across the country, when I have talked to folks, I have talked to moms who have told me they have no choice but to cut back on the food they are buying for their families. They have to find somewhere to slash their budgets. I talked to one mom in particular who told me she could not afford to buy any out-of-season produce anymore. She is only be able to afford what is on sale at the grocery store for produce and will have to buy bigger quantities. Her kids will have to go without fresh food because she cannot afford it anymore. That is terrible. We must think of the increased cost to our health this is going to have when parents cannot afford to buy nutritious food for their children.
Another factor we need to take into account when considering why our prices are going to go up is the fact that the majority of Canadians live in rural and remote communities. I have had the privilege and honour, for the last five years, of representing Lambton—Kent—Middlesex, which is a completely rural community. I have travelled to rural communities across this country, including up into the north, into Whitehorse and Yukon, and there is a real issue when it comes to food insecurity and the price of food. If we see trucking costs go up, and we see less production and less availability of fresh produce, how are these people, who live in rural remote communities, going to be able to access nutritious food? They are going to have a hard time.
The Canadian Federation of Independent Business estimates that the cost of this plastics ban will add $1.9 billion in customer costs. Nationwide, we stand to lose 60,000 jobs. We also hear that insurance rates are up due to vehicle thefts, break-ins and damages, and farmers have to pay higher insurance rates because of this. Vehicle insurance rates in Canada are up over 6% year over year. I have had some constituents tell me their insurance rates have doubled in some areas.
If we look at the whole supply chain and all the things farmers have to do to run their business, and if the costs are up everywhere, of course food costs are going to be up. Farmers have no choice but to pass these costs on down the line, and then every step along the supply chain has price increases and they need to be passed on. The result is Canadians having to pay more for food from the store.
Here is another piece of common sense: no farms equals no food. Government red tape is up. Insurance costs are up. Heating costs are up. Grain drying costs are up. Taxes are up. Crime is up. Time is up. Conservatives will axe the tax, build the homes, fix the budget and stop the crime, and we will bring down food prices for Canadians.