:
Welcome to the 82nd meeting of the Standing Committee on Agriculture and Agri-Food.
[English]
We are dealing with supplementary estimates (B) 2017-18 and votes 1b, 5b, and 10b under the Department of Agriculture and Agri-Food. On that, I would certainly like to welcome the Minister of Agriculture, Mr. .
We are glad to have you with us today, Minister.
[Translation]
I would also like to welcome Pierre Corriveau and Chris Forbes.
We will devote the first hour to the minister, and then we will continue with Mr. Forbes and Mr. Corriveau.
[English]
Before we start, there are a few things I'd like to bring to your attention. As the members who were here for the meeting before last will recall, we had an incident with the sound for the translators. I want to caution people not to put their BlackBerry or earpiece too close to the mike, because it makes a lot of noise. It's not a pleasant experience for the people in the booth.
[Translation]
Please think about that before you put your device near the microphone.
[English]
Again, we have the minister with us, and I also want to welcome Mr. , who is replacing , and Mr. , who is replacing Mr. .
[Translation]
Mrs. Boucher, welcome again.
[English]
Also, I'd like to welcome my chair of the fisheries and oceans committee. We have switched places today. I welcome Mr. , who is replacing .
With that, we'll get under way.
Mr. Minister, we'll give you your opening remarks. Go ahead.
:
Thank you very much, Mr. Chair.
[Translation]
Good afternoon, everyone.
[English]
I'm pleased to be back at the committee today. I'm joined by Deputy Minister Chris Forbes and by Assistant Deputy Minister Pierre Corriveau of the corporate management branch.
I want to thank the committee for its outstanding work in support of the Canadian agricultural sector. You have been tackling some very important issues for Canadian farmers, including a food policy for Canada, non-tariff barriers, climate change, and water and soil conservation issues.
My message to you today is that the government will continue to work with you to grow Canada's agriculture and food sector. Today, I'd like to touch on three key points: our progress since we last met, our priorities ahead, and challenges and opportunities.
Mr. Chair, Canada's agriculture and agrifood industry continues to grow. Last year, the industry generated over $111 billion of our GDP. The sector is not stopping there, and neither are we. The estimates you have before you show the government's increased investment of $23 million to support programs in competitiveness, market development, and innovation. That brings our total allocation for the department to $2.4 billion.
As you know, Growing Forward 2 is ending on March 31. We are now working with the provinces and the territories on the new Canadian agricultural partnership. Beginning on April 1, 2018, the Canadian agricultural partnership will drive investments of $3 billion over five years. This agreement will build on the future of our great industry. It will support the growth and potential of the Canadian agriculture and food sector. It will help farmers innovate, grow, and prosper.
At Agribition last week in Regina, I announced federal programs under the partnership. Backed by a federal investment of over $1 billion, these programs will help farmers and processors expand into new markets, be more efficient and environmentally sustainable through agriculture research and technology, and build better consumer confidence.
Trade continues to be a strong focus for our government. We aim at increasing our agricultural exports to $75 billion by 2025. Trade with China will help us get there. This is a vital market for our farmers. China is our second-largest trading partner in agrifood. Their middle class grows by the population of Canada every year.
I was in China two weeks ago with a delegation over a hundred strong. I can tell you, Mr. Chair, that Chinese consumers are looking for the safety and top quality that our farmers can deliver. More and more, they're buying groceries on their smartphones and tablets. I have to say that we had a very successful trip. Industry signed deals for new business worth nearly $300 million, from wild blueberries and barley to swine genetics and ice wine.
We promoted e-commerce to sell our great Canadian food and beverages, and I sat down with my counterparts, Minister Han and Minister Zhi of AQSIQ to explore further ways to develop our trade. We also signed an agreement to collaborate on biotechnology.
Also, we were in Europe in October to help our industry maximize its opportunities under CETA. This historic and progressive agreement will help boost agricultural exports to Europe by approximately $1.5 billion a year.
There is still much more work to be done, and that is why our mission to Europe was so important. We helped open doors for our exporters and made many great connections with European importers. We also held bilateral meetings with many senior EU officials. We want to maximize the opportunities that CETA provides our farmers.
Here at home, we continue to support a strong and modernized NAFTA. Over the past few months, I have met with many government and industry people from the U.S. and Mexico. I can tell you that everyone I've spoken to recognizes the benefits that NAFTA has brought to our industry, our farmers, and the economies in the three countries. Canada will continue to work hard to grow our trading partnership across North America, and we will continue to defend our supply management system and our dairy, poultry, and egg farmers.
We're also investing $350 million in programs to make sure our dairy farmers and processors stay on the cutting edge through new technologies.
To ensure that our products get to the consumers around the world, we're also strengthening our grain transportation system through measures in Bill , the transportation modernization act.
Just yesterday, we announced that Canada successfully restored market access for Canadian pork exports to Argentina, effective immediately. This could put another $16 million a year into the pockets of our farmers.
I want to say, Mr. Chair, that we're deeply concerned by and disappointed with the recent regulatory and tariff decisions made by the Government of India that are affecting the Canadian pulse trade. We've been working together with our farmers to find a mutually acceptable way forward with the Government of India to provide stable, sustainable access for Canadian pulse exports to India.
I've raised these issues with my counterparts in India. Recently, the led a mission to India, and the recent increase of tariffs on pea imports was raised at every opportunity. Canada and the rest of the world have been hit with a 50% tariff on peas, and this was a decision that India made without any advance notice. We stand ready to work constructively with the Government of India and our pulse farmers to resolve these issues, thus helping to ensure India's long-term food security.
Mr. Chair, I would now like to take a brief look at our priorities over the coming months.
On the Canadian agricultural partnership, CAP, we continue to work closely with our provincial and territorial partners to finalize the bilateral agreements. Our government is committed to supporting our farmers with strategic investments that expand growth and create well-paid middle-class jobs.
As I mentioned, last Friday I announced federal-only investments of $1 billion under CAP. These investments will focus on key priorities: growing trade and expanding markets; the innovative and sustainable growth of the sector; and, supporting the sector by better reflecting diversity and enhancing public trust.
This is an exciting new chapter in Canadian agriculture, and the Canadian agricultural partnership will help ensure that farmers and food processors can meet the world's growing demand for our high-quality products. My deputy minister will be pleased to provide the committee with further updates on the Canadian agricultural partnership during the second half of this meeting.
Governments fully realize that we must continue to make sure that our business risk management programs respond to farmers' needs. Along with my colleagues from the provinces and territories, we have made changes to strengthen these programs. We also announced a comprehensive review of the BRM programs in partnership with our Canadian farmers.
Innovation is certainly a priority for the Canadian agricultural partnership. It will give our farmers a competitive edge on the world stage. We will continue the great work of our agricultural clusters under the Canadian agricultural partnership. We will collaborate with the private sector to help the industry grow and help feed the world. Our government has identified the agrifood sector as one of six industries that can make Canada a global leader in innovation, and that is exactly what we intend to do.
Action on the environment is key to keeping the sector meeting the global demand for food sustainably. Our government is investing in programs to help farmers adapt to climate change. We have invested $27 million in the agricultural greenhouse gases program, which will help ensure that our farmers are the world leaders in the use and development of clean and sustainable technology and processes.
We have invested $70 million in agricultural science through budget 2017, which will focus on addressing emerging priorities such as climate change and water and soil conservation. We are encouraging industry across the country to take a national approach to the environmental farm plans. These have been tremendously successful, and they have a great potential to build the Canadian brand in global markets.
We look forward to placing an increased focus on environmental sustainability under CAP. I know that your committee has undertaken a study on some of these issues, and I certainly look forward to the results of these studies and how you can inform the government on these issues going forward.
We continue to work towards a food policy for Canada, based on our consultations, which reached tens of thousands of Canadians and industry stakeholders across the country. This policy will be our shared vision for the future of food in Canada. I look forward to the results of your recent study on the food policy.
Mr. Chair, there will always be challenges in agriculture, whether it's tough competition on the global stage, protectionism, or changing consumer demands. At the same time, Canada has the competitive advantages that will help turn these challenges into opportunities. We are blessed with huge resources of farmland and water and the best farmers and ranchers in the world.
The time is right for the Canadian agriculture and food industry to increase its presence on the global stage. Through smart investments and continued collaboration, I'm confident that we're up to any challenge that lies ahead.
Thank you for the great work.
[Translation]
Thank you.
It's always a pleasure to see you at committee, Minister. I haven't had the chance to ask you questions lately in the House of Commons, but I'm really happy to be able to ask you questions specifically on supply management, to follow up on Mr. 's comments.
Farmers are concerned. They're concerned about the health of supply management when we're signing all these trade deals that give more access. You will remember the Auditor General's report that talked about a lot of product coming in, with about $131-million worth of chicken, turkey, beef, eggs, and dairy products being imported without appropriate permits. Farmers and other people are really concerned.
I'm happy that Mr. Drouin brought up the dairy farm investment program, because you admitted that you have consulted and were in talks with the dairy industry and provinces about what this program should look like. You said clearly that this $215 million is probably not enough money, likely not enough money, so will you be promising more money for this program in the budget?
Also, I was wondering if we could find out the total number of applications received from producers, broken down by province and territory. If you don't have that information, could we have it sent to committee, if possible, please?
If we don't have sustainable agriculture practices, we won't have agriculture, quite simply. We have to make sure we do this, and we have to make sure we do it by expanding the production on the same amount of land. That's what we have to do. That is of course, why, for example, we invested $27 million in the agricultural greenhouse gases program. It's so important.
We also invested $100 million, as I indicated, in agriculture research. Just what happens in agriculture research? Quite simply, it puts billions of dollars into the pockets of farmers. Canola alone is a prime example: it was agriculture and agrifood scientists who discovered this seed. That's just one small example of what can take place when you put the proper funding into research. We will continue, hopefully, to put in more. We have $25 million to adopt clean technology in agriculture.
Then there's precision agriculture. I'd say that when I farmed, I wasted some money. I put more fertilizer on in areas than I should have. Precision agriculture makes sure that what's put in the soil is used by the plant. That puts more money in the pockets of farmers, and it also is very important to the environment and to the soil.
These are the kinds of things that we have done, and there's no end.... For example, out in western Canada in the areas where they graze the cattle all winter, they grow a crop, they cut it down, and they feed the stock as they move the fence along. What they've saved on their environmental footprint is amazing. I think we increased our beef production by 50% and reduced our environmental footprint by 30%.
These are the kinds of things you have to do. We'll continue to work with farmers. Farmers are innovative. Quite simply, if you're not innovative, you won't stay in farming very long. That's simply how it is. The government is trying to make sure that we provide the funding in order to help farmers innovate.
:
Thank you, Mr. Chair. Pierre and I appreciate the chance to be here.
We wanted to update you a bit more on the Canadian agricultural partnership, which I think is the purpose of the second hour here.
[Translation]
First of all, I would like to thank everyone for the excellent work you've done and the consultations you have conducted to produce your report on the next agricultural policy framework. Your work and your consultations will continue to inform our discussions and our decisions when we put in place the new Canadian agricultural partnership over the next few months.
I would like to clarify the 's comments about the partnership.
As you know, much progress has been made since your report was submitted in March.
[English]
As the said, we're working closely with our provincial and territorial partners and with industry, and we expect a smooth transition between Growing Forward 2 and the Canadian agricultural partnership on April 1.
We are sitting down with the provinces and territories to finalize the bilateral agreements that will clearly define cost-share program arrangements, reporting, and performance criteria for each province and territory. We'll have total federal, provincial, and territorial investments of $3 billion to help support the growth of Canada's agriculture and agrifood sector over the next five years.
[Translation]
Since agriculture is a shared jurisdiction, funding will also be split between the federal government, which will provide 60%, and the provincial and territorial governments, which will provide 40%.
In addition to focusing on trade and innovation, the partnership will stimulate investment in priority areas such as environmental sustainability, climate change and public trust.
[English]
The partnership will also have a new focus on diversity. It will recognize and engage those who have been under-represented in agriculture in the past: women, youth, indigenous peoples, and people with disabilities.
As well, the partnership will give provinces and territories the flexibility to meet the diverse needs of their regions and industries. Also, under the partnership, producers will continue to have access to robust business risk management programs.
[Translation]
The ministers agreed to make key improvements to the suite of business risk management programs. These include better protection against severe market volatility and disasters. For example, the governments have responded to industry concerns about participation rates and the reference margin of the AgriInvest program.
[English]
Ministers have also agreed to a review of BRM programs to assess program effectiveness and the impact on growth and innovation. The review will include an external expert panel consisting of producers, academics, and other industry stakeholders, as well as broader stakeholder engagement.
Mr. Chair, the federally funded programs announced by the minister last week addressed the priorities outlined for the Canadian agricultural partnership. I'll just touch on a few specific examples.
On markets and trade, there will be the AgriMarketing program, which will help small and medium-sized agribusinesses compete on world markets. On science and innovation, the AgriInnovation program will help agricultural businesses innovate and commercialize their innovations.
[Translation]
Under the AgriScience program, science clusters will be strengthened to meet the needs of the industry.
On the environmental front, science will be used to help producers adapt to climate change.
With respect to public trust, the AgriMarketing program will help the industry demonstrate the quality, safety and sustainability of its products to buyers.
[English]
In closing, Mr. Chair, we are on track to launch the agricultural partnership on April 1.
[Translation]
My colleague Mr. Corriveau and I will be happy to answer your questions.
Earlier, I wanted to bring up something that we looked at in committee in the last Parliament. We've looked at this a few times in the last few years. It's PACA. When we talk about our relationship in NAFTA with the United States and Mexico and we meet with the horticultural sector, they remind us that during the election campaign we had all promised—all three parties, I think—to bring in PACA, which is about payment protection for these people who export to the States.
As the agriculture committee, we've written to the and the , Minister , three times now, I think. The last time we wrote Minister Baines and copied Minister MacAulay—I wish I could have asked him this question, but I didn't have time—we didn't received a response.
I want to check with our chair and the clerk. Did we receive a response from either minister?
The Chair: We did not.
Ms. Ruth Ellen Brosseau: No, and when we read the mandate letters the wrote to the ministers, we can see they enumerated quite a few things. One of them is to work closely with members of the opposition and the second party, to collaborate with them and not to be partisan. I think it's a shame that the agriculture committee has written two ministers on three different occasions and didn't even get a response.
We've done studies at committee, and we've spent a lot of time listening to witnesses. Experts have worked really hard in presenting and briefing the Department of Agriculture. I think now they're they're working with the other ministry.
It's very frustrating because we know how important this is. I don't think it would be really hard. I don't understand why there is all this foot-dragging. I would have liked to ask questions of the .
I was just wondering, Mr. Forbes or Mr. Corriveau, if you can update us. Do you know where this is at? Can you comment on PACA? Is there work being done between the two ministers' offices on this?