Hon. Robert Black: My question is for the Government Representative.

Senator Gold, on February 15, 2024, the Canadian Agricultural Human Resource Council, or CAHRC, released a new report which outlines that Canada’s agricultural sector is facing a looming crisis with over 100,000 job vacancies projected by 2030. This shortage threatens local food security, economic growth and sustainability of our agricultural sector.

The report emphasizes a crucial role of temporary foreign workers in bridging the gap and also highlights the necessity for long-term solutions to attract and retain workers domestically.

Senator Gold, given the gravity of this situation, can you provide insight into the government’s plans to address the workforce challenges outlined by the CAHRC report and ensure the future viability of our agricultural sector?

Hon. Robert Black: Senator Gold, primary packaging is essential for the sustainability of the global produce supply chain, ensuring that Canadians have access to a diverse range of produce year-round. It plays a crucial role in preserving the quality, safety and affordability of perishable goods sourced from fresh fruit and vegetable producers across this country. The industry continues to strive to enhance packaging sustainability.

However, Canada’s produce sector has concerns with the government’s proposed regulatory and policy actions, which, if implemented, will have adverse and potentially irreversible impacts on Canadians. The proposed regulatory and policy actions single out fresh produce as the only food category subject to a plastics ban.

The Canadian Produce Marketing Association, or CPMA, conducted six studies highlighting the negative effects of the proposed regulations on the fresh produce industry. Of particular concern is the impact on fresh produce affordability and availability. Senator Gold, why is the government proposing regulatory and policy actions that will lead to increased food costs and loss in fresh produce availability for all Canadians?

Senator Black: Thank you. The price of food will increase 34% above current levels, and Canadians will lose 50% of value-added fresh products. It was also found through studies that the proposed regulations could increase fresh produce food waste by more than 50% above the current levels for multiple produce categories. So not only will this policy impact the affordability and availability of fresh produce, it will also create more waste and increase greenhouse gas emissions. How does the government plan to mitigate these issues?

Senator Black: Senator Gold, could you elaborate on any specific short-term measures being considered to address the imminent workforce challenges facing the agricultural industry particularly in light of the projected retirements and persistent labour shortages that I’ve mentioned earlier?

Hon. Robert Black: My question today is for the Government Representative in the Senate.

Senator Gold, I continue to be concerned about many ongoing issues that continue to create undue hardship in the agricultural sector. Recently, I met with Green Energy Trading Corporation to learn more about their attempts to positively impact sustainability efforts through the conversion of on-farm organic waste to renewable natural gas. That occurs using biodigesters, which are proven to be effective in the reduction of greenhouse gas emissions and the reduction of reliance on commercial fertilizers. Moreover, digesters create additional revenue, improve manure management and increase overall soil health.

Unfortunately, biodigesters are very costly, and, as we’ve heard in the Agriculture and Forestry Committee meetings, purchasing farm equipment is a multi-year investment. New sustainable innovations are not always feasible options, especially for small-scale farm operations, and the issue is that dairy farmers can’t secure financial loans to install biodigesters without using their farmland as equity. This creates yet another barrier to participate in sustainable agriculture programs and diversify their operations. Yet credits are not being extended to those who are actively trying to work on alternative solutions to help Canada meet our climate change goals.

Senator Gold, my question to you is this: Instead of taxing this important industry, will your government extend the clean technology investment tax credit to Canadian farmers who are actively trying to work on viable alternatives, such as biodigesters, to help Canada meet our climate change targets? Thank you.

Hon. Robert Black: My question is for the Government Representative in the Senate. Senator Gold, Canada’s farmland remains a finite and valuable resource for Canadians and the world. Despite your government repeatedly stating the importance and prioritization of agriculture and food security, I remain perplexed by the agreements and policies that we continue to see which undermine the capabilities and capacities of our processors and producers.

In a recent deal, a foreign company was given the green light for the procurement of 1,500 acres — the equivalent of 1,134 football fields — of prime agricultural land in southern Ontario. Around this deal was $700 million from Ottawa to build a plant along with $500 million from the Ontario government, plus $13 billion in federal subsidies for this gigafactory. Let’s not forget as well, colleagues, the $34 million in tariffs taken from farmers’ fertilizer purchases earlier this year, an essential product needed to feed the country and the world, which was not returned to our farmers.

While the province retains jurisdiction of land use planning, governments at all levels have permitted the land that grows our food to be swallowed up by urban sprawl, damaging valuable soils and reducing our food production capacities, all while subsidizing this destruction and financially limiting those who put food on our tables.

My question is this, Senator Gold: When will this government actually prioritize Canadian agriculture and food, stop financially depriving our farmers and stop giving monies to companies that will actively undermine and take away our crucial farmlands?

Senator Black: For my clarity, and for the clarity of our colleagues, is agriculture a priority for your government? Yes or no.

Hon. Robert Black: My question is for Senator Gold, the Government Representative here in our chamber.

Senator Gold, as we all know, Canadian farmers are the backbone of this country. As an advocate for farmers, processors and rural Canadians, I am particularly concerned about the many ongoing issues that continue to create undue hardship on the agriculture sector. Labour shortages, climate change, ever‑changing regulations and supply chain management are just a few.

These issues share one common value, though: increased financial burdens for farmers and their families. Farmers are price-takers, not price-makers. They must continue to compete at market value and often are forced to swallow the costs of decisions beyond their control, and that is why I rise today.

Senator Gold, competition in the market for our farmers is made more difficult by your government because they are charged a tax on a tax. Recently, I received a copy of an invoice from a local farmer in Guelph, Ontario. Trish and Dean Scott reached out to me about the rising costs they are facing on their farm due to being forced to pay taxes on a tax.

Colleagues, not only are they paying the federal excise tax on their diesel and the carbon tax on fuel oil, but they are also paying Harmonized Sales Tax, or HST, on both of these taxes. Let me be clear, this is a tax on a tax — or should I say, a tax on a tax on a tax.

Senator Gold, can you please update the chamber as to why farmers — and, indeed, all Canadians — are being taxed on tax by your government? Will you share with this chamber what the Canadian government is doing to remove their tax on a tax?

Thank you.