AGRI Committee Report

RECOMMENDATION 1

The members of the Standing Committee recommend that the vision for the next generation of agriculture and agri-food policy must place more emphasis on farmers and on primary agricultural production.

RECOMMENDATION 2

The Standing Committee acknowledges the competence and professionalism of the employees of Agriculture and Agri-Food Canada and the agencies associated with the federal agriculture portfolio, but is concerned about a general decline in expertise with respect to agricultural policy development and a certain lack of background knowledge on the part of officials regarding daily farm activities. The Standing Committee recommends the immediate development of a revitalization plan for Agriculture and Agri-Food Canada, including partnerships with the provinces, their universities provincial colleges, to promote recruitment and education in agricultural programs. Furthermore, the Standing Committee recommends that the Department take advantage of the expanding National Area of Selection for its recruitment.

RECOMMENDATION 3

The Standing Committee recommends that Agriculture and Agri-Food Canada reinstate the annual Outlook Conference for agriculture, which enables the Minister and Department officials to present and explain evolving policies and agricultural programs, and to present market projections.

RECOMMENDATION 4

In order to maintain close ties with the federal Minister of Agriculture and Agri-Food, the Standing Committee recommends that the federal government establish a National Advisory Committee on farm policy development and programs, comprising representatives of all national farm organizations.

RECOMMENDATION 5

The Standing Committee recommends that the federal government defend Canada's trade interests aggressively by being firm and dynamic in enforcing international agreements and facilitating market opportunities.

Further, the Committee recommends that the government establish a quick-response team for trade issues that negatively affect farmers.

RECOMMENDATION 6

The Standing Committee recommends that the government explore market development opportunities more intensively through bilateral trade agreements, while continuing multilateral trade negotiations.

RECOMMENDATION 7

While remaining sensitive to the fact that agriculture education and awareness programs for the public are primarily the responsibility of the provinces, the Standing Committee recommends that the federal government financially assist market promotion initiatives introduced by farmers, such as “Buy Local” or “Buy Domestic” campaigns, which can be a powerful and useful vehicle for public information.

RECOMMENDATION 8

The Standing Committee recommends that farmers’ strategies to market products internationally be increasingly supported by various federal departments.

RECOMMENDATION 9

The Standing Committee finds it unfortunate that, under current regulations, the “Product of Canada” and “Made in Canada” designations may mislead consumers when imported agricultural ingredients are used in the manufacture of value-added food products. The Committee recommends that the government immediately review its labelling legislation and regulations with the goal of implementing a minimum 51% domestic agri-food content rule that would provide better protection for the integrity of the “Product of Canada” designation.

RECOMMENDATION 10

In support of initiatives to promote and increase awareness of Canadian agricultural products, the Standing Committee recommends that the federal government implement a strategy where Canadian food products are used in its institutional agri-food products procurement.

RECOMMENDATION 11

The Standing Committee urges the government to adopt a policy to encourage retail chains to allow greater shelf space for local Canadian agri-food products with the objective of increasing the minimum space allowed for franchise owners from 5 to 15%.

RECOMMENDATION 12

The Standing Committee supports the comprehensive review of Canada’s competition policy announced in Budget 2007. However, in view of the high degree of concentration at some levels of the agri-food chain, the Committee recommends that:

(1)   the government decriminalize the discriminatory and predatory pricing provisions in the Act in order that these practices receive a full hearing on their likely economic effects and that such a case will be assessed by the Competition Tribunal with a civil burden of proof, which has a lower threshold than the criminal burden of proof; and

(2)   the government introduce a general administrative monetary penalty (AMP) provision for abuse of dominance in any industry, which would encourage businesses in most industries to comply with the Competition Act.

RECOMMENDATION 13

On the basis of the evidence it heard, the Standing Committee noted that there is considerable support for the approach to business risk management programs being proposed by the federal, provincial and territorial governments. Like farmers, the Committee is firmly committed to the general principles of program predictability, responsiveness, bankability and flexibility. With regard to flexibility, the Standing Committee recommend that the federal government ensure a fair balance amongst provinces and between the various types of production.

RECOMMENDATION 14

The Standing Committee recommends that the federal government carefully examine the potential ramifications of business risk management programs to ensure that negative impacts, such as penalizing diversification or inhibiting value added activities, are minimized.

RECOMMENDATION 15

The Standing Committee recommends that the federal government consider a national compensation program for disasters as a main pillar for farm risk management and, therefore, that it be funded adequately to be able to meet any contingency. The Committee also recommends that this program allow provincial flexibility to address various disasters.

RECOMMENDATION 16

The Standing Committee would like to reiterate a recommendation included in its June 2002 report and recommend permanent, minimum and statutory funding for a $1 billion federal contingency fund. The latter would be available to the Minister for a rapid response in the event of a prolonged extraordinary disaster to allow farmers to re-establish their production capacity.

RECOMMENDATION 17

The Standing Committee recommends that a strengthened production insurance program that addresses the specific needs of various types of farm production be developed in close cooperation with stakeholders in each of the farm sectors. Furthermore, the Committee urges the federal government to be receptive to innovative ideas, such as the self-directed production insurance plan put forward by the horticultural sector.

RECOMMENDATION 18

The Standing Committee recommends that the federal government immediately establish a NISA-type shared-contribution program.

RECOMMENDATION 19

While recognizing that provinces and territories have reason to establish companion programs, the Standing Committee recommends that a national strategy for agriculture programs be developed respecting provincial and territorial areas of jurisdiction, and in response to needs and priorities of the provinces and territories.

RECOMMENDATION 20

The Standing Committee recommends that the federal government recognize that supply management and its three pillars — producer pricing, import controls and production discipline — is inherently a business risk management program in Canada.

RECOMMENDATION 21

The Standing Committee recommends that:

(1)   the governments provide the legislative support necessary for farmer-run orderly marketing agency's to continue to work effectively on farmers’ behalf in the area business risk management; and

(2)   the government negotiate at the WTO to ensure that supply management is maintained and that state trading enterprises be allowed as a marketing tool.

RECOMMENDATION 22

On the premise that bioproducts and innovations in the agri-food chain cannot be developed without agriculture, the Standing Committee recommends that primary production research be defined more precisely in the Science and Innovation Strategy, that there be a specific component devoted explicitly to primary production research, and that it obtain its fair share of funding.

RECOMMENDATION 23

The Standing Committee recommends that scientists at Agriculture and Agri-Food Canada and its agencies be freed from administrative duties that take up too much of their time and energy, so that they can spend their time on what they do best: applied research. The Standing Committee also recommends that research projects be streamlined.

RECOMMENDATION 24

Primary producers require to be better informed about research development, and consequently the Standing Committee recommends the establishment of a one-stop access to information about innovation and market opportunities.

RECOMMENDATION 25

The Standing Committee recommends that the National Farmed Animal Health Strategy (NFAHS) itself be a pillar in Canada’s new agriculture and agri-food policy, while respecting provincial and territorial areas of jurisdiction.

RECOMMENDATION 26

The Standing Committee again recommends that the federal government review, in consultation with the livestock and poultry industry, the Health of Animals Act in order to strengthen compensation mechanisms in the event that farm animals are destroyed.

RECOMMENDATION 27

The federal biofuel strategy has enormous development potential that could, however, affect the competitiveness of the livestock industry throughout Canada. The Standing Committee therefore recommends that the federal government immediately conduct a comprehensive analysis on the development of biofuel by-products feedstuff for livestock and poultry, and that the analysis be tabled in the House of Commons.

RECOMMENDATION 28

As the demand for feedstuff in Canada and the United States usually goes in tandem, it is difficult for our country to influence their price. In order to relieve pressure on the demand for animal feed, the Standing Committee recommends that the federal government, in conjunction with the biofuels industry, give priority to research into biodiesel production and the development of non-feed inputs, such as switchgrass and cellulosic fiber, for ethanol production.

RECOMMENDATION 29

The Standing Committee recommends that Agriculture and Agri-Food Canada conduct an analysis of the opportunities offered to agriculture if the targets were 5% and 10% for biodiesel, and 10% and 20% for ethanol.

RECOMMENDATION 30

Although the increase in the capital gains exemption to $750,000 was well received, the Standing Committee recommends that it be further increased to $1 million.

The Standing Committee also recommends that the federal government look at various financial and fiscal instruments that could be helpful to young farmers in their first years of farming such as investment tax credit, interest assistance, capital insurance program, start up financing, a farm transfer savings plan, allowing RRSP funds to be used for the purchase of a farm, and the transfer of targeted financing to the provinces to encourage young people to go into farming.

RECOMMENDATION 31

The Standing Committee recommends that the federal government promote programs available to young farmers on a regular basis. In addition, the Committee recommends that the federal government be innovative in its partnerships with the provinces in providing funding to colleges and universities with agricultural programs.

RECOMMENDATION 32

The Standing Committee recognizes the progress accomplished by the Pest Management Regulatory Agency and appreciates the semi-annual meetings aimed at reviewing the Agency’s work. However, the Standing Committee recommends that, in the context of the next generation of agriculture and agri-food policy, the PMRA publish a status report on the level of its services.

RECOMMENDATION 33

Because efficient transport of agricultural goods is a key factor in market development, the Standing Committee recommends that the federal government conduct an in‑depth review of the rail transport regulatory framework and make the necessary changes so that it is compatible with the requirements of the new agricultural and agri‑food policy designed to achieve prosperity for the agri‑food chain as a whole. Furthermore, the Committee recommends that the federal government conduct a specific level of services review.

RECOMMENDATION 34

In consideration of environmental farm plans, the Standing Committee believes that farmers must be compensated for the environmental benefits that they generate in their communities.

The Committee recommends that the federal government recognize this stewardship role in the new agricultural policy. Furthermore, in cases where the market might not take farmers' best management practices into consideration, the Committee recommends that the federal government contribute to a federal-provincial cost-shared compensation program.

RECOMMENDATION 35

As the trend in the agricultural policies of producing countries is toward supporting environmental programs, the Standing Committee recommends that Canada's agricultural policy include a voluntary program, under which private agricultural land could be used as a tool for conserving and developing environmental resources. Since such a program will benefit all Canadians, the Committee also recommends that the governments provide financial support targeted to farmers for their land stewardship role.

RECOMMENDATION 36

As farmers frequently told the Standing Committee: The time for consultation must now become a time for action. The Committee therefore recommends that the federal government take action, in a concerted and informed manner, and focus on primary agriculture now. Furthermore, the Standing Committee recommends that a national food policy be put in place to guarantee a safe, viable and plentiful food supply to ensure a long-term food security, with the understanding that such a policy will respect provincial and territorial areas of jurisdiction.