Mr. Speaker, I am pleased to speak to the recommendations contained in the first report of the Standing Committee on Agriculture and Agri-Food on the beef and pork income crisis.
As others have said, this is a thoughtful and considered report and the government agrees with the overall spirit of the recommendations. As usual, the standing committee has left no stone unturned in its research. The members of the agriculture committee work very well together.
Witnesses were consulted from right across the value chain. Representing producers, there were the Canadian Cattlemen's Association, the Canadian Pork Council, la Fédération des producteurs de bovins du Québec and la Fédération des producteurs de porcs du Québec. Representing processors, there were the Canadian Meat Council and Maple Leaf Foods. This sector-wide approach is appropriate because agriculture is such an integrated industry. No one link is affected without reverberations across the whole value chain.
I agree with this very much. This is why the mantra of the Minister of Agriculture and Agri-Food is farmers first, because if farmers prosper, then processors prosper, retailers prosper and consumers benefit. It all starts with a prosperous, vibrant farm gate.
There is no single factor behind the current crisis in the pork and beef industry. Rather, it is a combination of changes to the economic environment under which the sector is operating today. A strong and rapid appreciation of the Canadian dollar, a cyclical drop in hog prices, a rise in costs for inputs such as feed, fuel and regulatory compliance, labour shortages, wage increases and market access challenges related to the BSE crisis have all come together in what has been called a perfect storm battering our sector both at and beyond the farm gate.
Clearly, a sectoral approach is needed to meet a sectoral challenge. This is the only way forward. It is the way the committee took. It is the way the government is delivering short term assistance to the sector through measures such as the enhanced advance payments program and the sow cull program.
Amendments to the Agricultural Products Marketing Act to enhance the advance payments program were made in full consultation with producers. We spent a lot of time working directly with the Canadian Pork Council and Canadian cattlemen. We looked at a lot of very good ideas.
At the same time, everyone at the table is conscious of the need to ensure that our actions do not mask market signals or attract countervail action from our trading partners. Those good ideas delivered results. These amendments are delivering exactly what producers asked for: easier access to cash advances. In fact, as a result of the changes made to the act and emergency advances, this government is making up to $3.3 billion available to struggling livestock producers.
Producers will now have access to that support without having to use other programs as security. Producers will also be able to trigger emergency advances under the amended program. We have grown these emergency advances from $25,000 to $400,000. The first $100,000 is interest free.
The government listened to farmers. The bottom line result is that producers now have quicker and easier access to the cash they need to weather the current storm. But weathering the storm is not enough. This government is committed to helping to build a better future for Canadian farm families.
That is why we also announced a $50 million cull breeding swine program. We built this program in close consultation with the Canadian Pork Council. The council itself will deliver the program. It is a program that will help the Canadian hog industry become leaner and more competitive in a new and tighter market.
Producers are in the best position to determine the way forward for their industry. They have expressed their appreciation for the collaborative approach that this government and the minister have taken.
For example, Bob Friesen, president of the Canadian Federation of Agriculture said:
These measures give our hard-hit livestock producers more tools for overcoming the obstacles they face and getting through this difficult time. I want to thank [the Minister of Agriculture] and his government for consulting with industry and delivering this much-needed boost.
Beef producers also expressed their appreciation to the government's inclusive response to their needs. Hugh Lynch-Staunton, past president of the Canada Cattlemen's Association, said that the changes to the APP “are consistent with a CCA recommendation and will improve Canadian producers' ability to deal with their liquidity costs”. He also said, “We're very pleased with this because it does provide liquidity for individuals to make more sensible decisions than they would in a forced situation”. He also said, “It will provide the much needed cash flow for producers at a critical time”.
They said they were very pleased.
“We are very satisfied”, said Claude Viel of the Fédération des producteurs de bovins du Québec. Meanwhile, pork producers were also supportive.
This will be of great assistance given the current difficulties.
“This will be of great assistance given the serious difficulties we are facing”, said Jean-Guy Vincent, president of Fédération des producteurs de porc du Québec.
Clare Schlegel, president of the Canadian Pork Council, said that the measures provide the breathing room they have been asking for. The measures in the package go a long way to giving producers the tools they need to manage through this terrible crisis.
The bottom line is that we have delivered for producers. We are not stopping there. We will continue to work shoulder to shoulder with the industry to monitor the situation, to identify gaps in programming and to assess the need for further action.
We will work through the beef and pork value chain round tables with producers, processors, retailers and others to make our regulations more responsive, to increase market access for beef and pork, to help industry implement the enhanced feed ban and to help build a sector that can compete and win in the global marketplace.
I happen to know that we are on the right track. I have been across the country making a few visits, but last night in my home riding of Stormont—Dundas—South Glengarry, there were over 200 actual producers who met with the Minister of Agriculture . As he entered the room, 250 farmers got to their feet and gave him a standing ovation for the actions the minister is taking.
To go on further, during the question and answer period, he answered the questions. We got very positive comments for the types of actions we have taken. They told us that after 13 years of getting false promises, finally they have gotten some action. I was so proud to be a member of this government last night.