44th Parl. 1st Sess.
June 16, 2022 10:00AM
- Jun/16/22 7:04:14 p.m.
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Madam Chair, I want to say at the beginning of my intervention that I am encouraged by the words of the minister that the Liberal government now understands the importance of things like fertilizer and gene editing and seed technology and the role they will play in the future for food security, because I would think we are in the midst of a food security crisis. This is not something that will happen; this is something that is happening right now. I would hope the minister understands the critical geopolitical role that Canadian agriculture can play, not only here at home but around the world.
To put this in perspective, Ukraine is the breadbasket of much of Europe, Asia and Africa. The uncertainty that is going around with this conflict is certainly have a significant impact on the price of these commodities, and not only in Europe. We were very naive if we thought we were not going to be impacted here at home as well.
We had the honour of having the Ukrainian minister of the economy at committee the other day, and I want to mention a quote from him. He said that Ukraine is seeing a catastrophe on top of a catastrophe, with a global impact seen since World War II, and that farmers have dropped their breadbaskets to stand in breadlines. That is very apropos and puts some perspective on how serious this situation is.
We also had the Ukrainian agriculture minister at committee. She said that Russian soldiers have occupied 23% of Ukraine. They are stealing grain, destroying critical infrastructure and blockading Ukraine's ports. This will seriously impact Ukraine's ability to export whatever harvest of commodities it may be able to achieve this spring and again next year. As the minister said, this will lead to social unrest, famine and, very likely, conflicts around the world, especially around the Horn of Africa. How we respond here in Canada to this tragedy and this food insecurity crisis is critical.
I am going to go in a different vein than the minister did, because I think Canadian agriculture has a key role to play in addressing this food insecurity crisis. I was speaking to Canadian farmers across the country over the last few weeks and months as this started to unfold, and every single one of those farmers has said it is our moral obligation to step up and do everything we possibly can to address this food shortage crisis. They want to be there to help their allies and their friends in Ukraine. Certainly for us in western Canada especially, our agriculture sector was developed and the ground was broken by Ukrainian immigrants who came to Canada more than 100 years ago. We are in their debt.
However, for Canadian farmers to be able to do that, to reach that potential and to reach out and help to address this food shortage, they have to have the tools they need to be successful. Farmers certainly understand that there are many variables outside of their control, but there are some things they rely on from the federal government perspective to have certainty. These things include competitive regulatory and tax regimes, an efficient and reliable supply chain, bankable and efficient business risk management programs and access to global markets. I would argue that unfortunately the government is failing agriculture on all of these pillars right now, which is certainly handcuffing our ability to reach our full potential, to increase our yields to not only meet our commitments, not only here at home but around the world, and increase our ability to step up in times of crisis, as we are seeing right now.
One example of that is the federal carbon tax that the government has imposed on Canadian farmers. We heard at committee today from the Grain Farmers of Ontario about Bill C-8, which is what the Liberals have said is the carbon rebate program to farmers. The message that we are getting from the Liberals all the time is that the carbon tax is revenue-neutral, that whatever a Canadian is paying into that carbon tax, they are getting back. However, we heard in testimony today from the Ontario grain farmers that they are getting back between 13% and 15% of what they pay in the carbon tax. That is a long way from being revenue-neutral. In fact, I would say that it is misleading Canadians when the government says this program is revenue-neutral. It is far from that. The impact is that it is hurting Canadian farmers in their ability to innovate, invest and grow their business and certainly to grow their yields.
The CFIB pretty much ratified those numbers from the Ontario grain farmers, saying that what the farmer is going to be paying in a carbon tax is going to go from $14,000 on average to $45,000 on average as a result of the increase on April. According to Finance Canada today, the average farmer gets back $800 a year. The farmers are putting in $45,000 and getting $800 back. Again, that is nowhere near revenue-neutral.
This program is devastating and unnecessary to Canadian farmers, especially when we have put forward a much better solution in Bill C-234, which would exempt farm fuels from the carbon tax, especially natural gas and propane for heating barns and drying grain. This would allow farmers to reinvest that money in the things they need to improve their operations.
The Food and Agriculture Organization has said that the linkage between energy prices, such as the carbon tax, and fertilizers has put the agriculture sector at significant risk. Renowned agriculture trade expert Robert Saik has said we must be making decisions based on science, not ideology, to ensure the sustainability and health of the agriculture sector.
The World Food Programme has said that 800 million people are facing food insecurity around the world. As a result of the conflict with Russia and its illegal invasion of Ukraine, they are expecting another 13 million people to be at risk of food insecurity. That shows us how serious this situation is and how important it is for Canadian farmers to be competitive and able to reach their potential.
To put that in perspective, the United States has not put a carbon tax on its agriculture sector. The United States is our biggest trading partner but also our biggest competitor on the global stage. In fact, the United States is also not punishing its farmers with a tariff on fertilizer. Canada is the only G7 country in the world that is charging a tariff on fertilizer.
We have asked the Liberal government to exempt the tariff on fertilizer purchased from Russia before March 2 to ensure that Canadian farmers are not carrying that burden, and I want to be really clear here: Vladimir Putin is not paying that tariff. The Russian military is not paying that tariff. Only Canadian farmers are paying that tariff. Now we have seen the numbers, and that tariff is going to cost Canadian farmers, especially in eastern Canada, about $150 million a year.
That is $150 million taken directly out of the pockets of Canadian farmers and going to the Liberal government's coffers. Not only is that a financial hit, but as a result of that we are going to see farmers using less fertilizer. The consequence is that we will have smaller yields. We already had a 40% decrease in yields last year because of weather issues. Depending on the weather, if we see that yield decrease further or not return back to our normal, it is going to have a significant impact. We are going to see food prices increase, not only around the world but here at home as well, and it will impact our ability to try to address food insecurity issues around the world. This only punishes Canadian farmers. It does not punish Vladimir Putin.
We also heard from the Ukrainian minister of agriculture that Ukraine needs seeds, machinery, fuel and temporary storage facilities for its grain and commodities. What it needs is for Canadian agriculture to be firing on all cylinders to make sure we can step up and help when it is needed. However, at this time of a global food security crisis, again when we need Canadian agriculture to be punching above its weight, the Liberals have decided to put burdensome red tape, regulations and taxes on Canadian farmers.
Another example is front-of-package labelling, which is a $2-billion bureaucratic burden on the industry. Not only will that impact Canadian beef, pork and veal farmers, but it will also impact our processors, manufacturers and consumers. We are talking about the food insecurity crisis and the impact it would have on people around the world, in Europe and the Horn of Africa, but food insecurity is also an issue here at home. If we cannot take care of our own, how are we expected to step up and take care of others in their time of need?
This is also sending a very frightening message to our trading partners. Why should they be importing Canadian beef and pork when we are admitting to the world that we feel our products are unhealthy?
In conclusion, in a time of crisis, instead of treating Canadian agriculture with disdain or as a carbon tax cash cow, the Liberals need to see modern Canadian agriculture and our farm families as a way out, as a way to step, as a key geopolitical tool in the fight against totalitarianism and the likes of Vladimir Putin.
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- Jun/16/22 7:15:36 p.m.
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Madam Chair, my colleague is exactly right. We now know that this is going to cost Canadian farmers about $150 million. We support sanctions against Russia. It is very important that it is held accountable for its illegal actions. However, we do not want those actions to be paid for on the backs of Canadian farmers.
We have asked the Liberal government to exempt that tariff on any fertilizer from Russia that was purchased before March 2. Another alternative was, at the very least, to provide compensation to farmers. Rebate that tariff on fertilizer to Canadian farmers that was purchased before March 2. However, in both of those cases, the Liberal government has refused to step up and help Canadian farmers.
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- Jun/16/22 7:17:13 p.m.
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Madam Chair, I had the honour of travelling to Guatemala a couple of years ago before COVID with the World Foodgrains Bank. What is really impressive with programs such as that is that it is not necessarily always about the money. It is about going to those communities and teaching them how to grow their own food, providing them with the assets, resources and technology they need to grow their own food and become self-sustaining.
To my colleague's question, I absolutely believe that Canada has a pivotal role to play in financial commitments to food security around the world, but rather than indexing that or hitching it to something, it is more important that we leverage those federal dollars with the private sector and NGOs to make those countries more self-sustaining.
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- Jun/16/22 7:19:07 p.m.
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Madam Chair, I am really happy that my respected colleague asked that question because it gives me the opportunity to reiterate the fact that there is, what I will call, a misconception that Canadian agriculture is the problem, when I would profess that Canadian agriculture is the solution.
We have seen how Canadian farmers have improved their operations and the technology and innovation that has happened. I spoke about gene editing. There are seed varieties that are drought resistant and pest resistant. This has allowed us to grow higher yields on the same amount of land with a fraction of the inputs. Whether it is spray, fuel, zero tillage or precision agriculture, we are making those advances, and we are doing that without having to pay a carbon tax. That is what I say is an incredible success by Canadian agriculture.
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- Jun/16/22 7:20:40 p.m.
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Madam Chair, if farmers can find ways to be efficient and more cost-effective while protecting their land and improving their yields, they will do it. They use fertilizer as efficiently as possible through programs such as the 4R stewardship program.
To my colleagues's question, it is critically important that, if farmers are using less fertilizer, yields will go down. It is a simple fact. When we are facing a global food crisis, that is not direction we want to go.
The Liberals have also said that they want a 30% reduction in fertilizer emissions, whatever that means, but what it means is we we are asking Canadian farmers to use less fertilizer when they are doing it as efficiently as possible. In Canada, we are 70% more efficient in fertilizer use than any other country on the planet. I will say again that is a great success story for Canadian agriculture. It is something we should be embracing and not criticizing.
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- Jun/16/22 7:22:20 p.m.
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Madam Chair, he is exactly right. Through this illegal invasion of Ukraine, Canada is seeing we have two very important geopolitical tools in our tool belt, and those are energy and agriculture. We should be doing everything we possibly can to build those two industries up to play a critical role around the world.
Unfortunately, the government is taking a much different approach to those two critical areas. I found it quite interesting that the Liberal government, after the invasion, said that we needed to increase oil production by 35,000 barrels a day. It has been doing everything it can to cancel out that industry, and it is not like it can turn around on a dime. I will tell the House why.
Most of our drilling rigs have left Canada. Most of our best and brightest in the energy sector in terms of labour have left Canada, and they are not coming back just because the Liberals say they are going to temporarily increase energy. I just find it so hypocritical that we have been trying to say for years how important agriculture and energy are not only to Canada's economy but also to global security, and now they are finally waking up when we see a conflict in Ukraine.
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- Jun/16/22 8:17:59 p.m.
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Mr. Chair, the minister talked in his speech about the importance of fertilizer. Not only is it access to fertilizer, but I think the other issue about fertilizer is affordability. We have seen the cost of fertilizer in many parts of the country go up 100%.
Canada is the only G7 country on the planet that is charging a 35% tariff on Russian fertilizer. Many times we have asked the Liberal government to exempt that tariff on fertilizer purchased before March 2. We now know that this tariff is costing Canadian farmers about $150 million a year.
The minister just mentioned that the government gave $100 million to the largest mining company on the planet when they have record fertilizer revenues, not to make increased production at this fertilizer plant near Saskatoon but to ensure that it uses electric vehicles. Would he not agree that a better use of that $100 million would be to provide compensation to farmers for their own fertilizer tariff?
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- Jun/16/22 9:11:06 p.m.
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Madam Chair, my colleague has incredible experience in agriculture.
One of the other things we have been talking about today is the impact the carbon tax is having on Canadian farmers. The idea of that is to transition farmers into using a different fuel for grain drying and heating barns and buildings.
What other fuel source are the Liberals asking farmers to transition to? Does it actually exist?
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