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Results: 1 - 15 of 55
Julie Bissonnette
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Julie Bissonnette
2020-07-08 15:19
Thank you, Mr. Glenn.
Good afternoon, Mr. Chair and members of the committee.
My name is Julie Bissonnette. I represent Quebec and Ontario at the Canadian Young Farmers' Forum. I'm also the president of the Fédération de la relève agricole du Québec and a board member at the Financière agricole du Québec. In addition, I'm a dairy farmer in L'Avenir, near Drummondville.
I want to suggest some other solutions that we, as young farmers in Canada, have considered. First, I want to talk about the AgriStability program. Mr. Glenn spoke about it. When we start farming with the knowledge that we must absorb 30% of our losses before we can obtain government support, it's not very reassuring. If the coverage rate is reduced to 85%, young farmers will take on less risk.
Second, we can all agree that the first five years are the most financially demanding for any start-up business. In our opinion, a rebate for the various federal government programs would ease the pressure on businesses. For the first five years, the government would cover a portion of the young farmers' costs or contributions. This would also encourage young people to participate in the program, and they would get to know the program better.
Third, the programs must be simplified. We've consulted with some young people regarding risk management programs. In short, the programs are complex. Most young people don't use them because they don't understand them. That's unfortunate, because these programs are there to support us. Each program has a good foundation that meets our needs. However, the complexity limits the use of the programs.
We mustn't forget the supply management system. The system works very well for risk management, as long as the system is protected and fully maintained.
In conclusion, the agricultural sector must be supported. Young farmers who are starting out in farming, whether they're launching a business or taking over an existing business, need to feel supported and equipped. Any means to improve the cash flow of the business are welcome. Young farmers in Canada all have one thing in common. They love farming and they're passionate about the occupation. However, with good risk management programs, our passion will become even more enjoyable, and our stress will decrease.
View Kody Blois Profile
Lib. (NS)
View Kody Blois Profile
2020-07-08 15:36
Thank you, Mr. Chair.
Thank you to all of the witnesses for their testimony here today.
As one of the youngest members of the House of Commons, I'd like to direct my questions today to the Canadian Young Farmers' Forum. I'll start with Mr. Glenn.
You mentioned some of the Olympic averages, the thresholds, as part of AgriStability. For new entrants into agriculture, the young farmers, particularly around AgriStability, can you give us a sense how that five-year average is established if you haven't been in the industry for five years? This also applies to programs like the advance payments program, which I understand takes averages to decide how much money might be available. Do you have any thoughts on how that might impact young farmers and any thoughts on how those programs work for you?
Paul Glenn
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Paul Glenn
2020-07-08 15:37
I can start on the advance payments program. Initially, when we were discussing how it could be improved, even for new entrants maybe for the first five years, raising the limit to $150,000, say, rather than the $100,000 currently.... A hundred thousand dollars doesn't go a long way anymore, unfortunately, especially for young farmers when they're starting out. That's something that we talked about that would help with the advance payments program.
To be quite honest, I've been farming for longer than five years, so I don't know the direct effect of the Olympic average starting in the first five years.
I touched a bit on the crop insurance side. When you include that loss year into your Olympic average when you have multiple weather events like drought to heavy rain, it's very detrimental to your average over your five years. I think that could be improved. If it were just removed from the five years and you're just including the four years that weren't averaged, I think that would be of great benefit.
I know I didn't totally answer your question there, but—
View Kody Blois Profile
Lib. (NS)
View Kody Blois Profile
2020-07-08 15:38
No, it's fine. I have to keep moving on. I'm going to switch over to French for Madame Bissonnette.
Ms. Bissonnette, how could we enable young farmers to receive subsidies so that they can access business risk management programs? Could this option be available to new farmers, or could it also be available to people who are taking over the family farm? I can think of some scenarios, such as young farmers inheriting very profitable farms and having to pay compensation.
Julie Bissonnette
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Julie Bissonnette
2020-07-08 15:39
Thank you. That's a good question.
Clearly, the most significant impact is absorbed by start-ups in the initial period, from year zero to year five. We've often talked about the increasing debt load. These farmers are really in this situation right from the start. The ideal approach would really be to focus on the farmers who are in this initial phase and who are starting from scratch.
In terms of transfers, as the value increases, it can become more complicated to transfer these businesses. It would be good to provide the rebate to these farmers as well. We started with these businesses. However, if all young people can be supported with the right tools, it will be beneficial in every way. The more assistance that young people receive, the better the agriculture sector will fare. Both situations are very good examples.
View Tim Louis Profile
Lib. (ON)
Thank you, Mr. Chair.
Ms. Bissonnette, would you mind continuing your line of reasoning? I was looking forward to hearing it. If you could continue it, I'd appreciate that.
Julie Bissonnette
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Julie Bissonnette
2020-07-08 15:40
I've pretty much covered everything. It's also about obtaining the cash flow. The more cash a young person starting a business has, the better off they are. Debt is like a spinning wheel. All the tools available to help them will be useful. The more cash that they have, the better things will be for them. Whether they're starting up or transferring farms, the more assistance that young people receive, the better off they will be.
View Tim Louis Profile
Lib. (ON)
I appreciate that.
Maybe I'll keep this line of reasoning going, because I think we'd all agree that our young farmers across all sectors, as diverse as everyone is, are going to be the future of our agriculture sector.
I know from speaking to many young farmers that capital acquisition is very difficult. You mentioned helping subsidize young farmers and helping them with liquidity in the first five years. Do you have any specific ideas that could help with the first few years? I know we've mentioned increasing the advance payments for the first five years. Do you have anything else specific?
Julie Bissonnette
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Julie Bissonnette
2020-07-08 15:41
Yes, I have other ideas. For example, a rebate could be provided on the crop insurance contribution. The government could then pay the administration costs for the AgriStability program. In terms of AgriInvest, the government could ensure that farmers wouldn't need to make their contribution in order to obtain the matching contribution.
In short, anything that affects cash flow, such as rebates on the contribution or on administration costs, can work. In Quebec, we have a 25% rebate. This works, and the figure could be used as a reference. However, the government must take care of this.
View Yves Perron Profile
BQ (QC)
I want to thank the witnesses for joining us today.
Ms. Bissonnette, I'll continue with you. When you spoke about funding for the early years, you mentioned some good options. For example, you spoke about a 25% credit to cover administration costs.
Would you go so far as to suggest that full contribution credits might be feasible, or is that too much money for the government?
Julie Bissonnette
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Julie Bissonnette
2020-07-08 15:43
There are a number of programs from both governments. Perhaps the risk should be well distributed. As far as we're concerned, the more cash the company has, the better off the company is. A 100% contribution rebate would obviously be ideal.
View Yves Perron Profile
BQ (QC)
I gather that any improvement would be welcome and would make a difference.
When you spoke about cash flow and the AgriInvest program, you suggested that the government advance the funding, the 1% match, without requiring the young farmer to make their core investment.
Is that what you said?
View Yves Perron Profile
BQ (QC)
Okay.
If the matching contribution provided under AgriInvest were increased from 1% to 5%, as several stakeholders have requested, would that also help farmers a great deal?
Julie Bissonnette
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Julie Bissonnette
2020-07-08 15:44
Yes, it would.
It would help not only businesses that are zero to five years old, but also the entire next generation of farmers.
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