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House Hansard - 90

44th Parl. 1st Sess.
June 16, 2022 10:00AM
  • 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 8:19:00 p.m.
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Mr. Chair, I want to say first of all that it is incredibly important that we are having this debate today. I can speak for the Minister of Agriculture and Agri-Food. Her department is actively engaged not only with provinces across the west, but with the farmers and industry partners to ensure that farmers have access to fertilizer for Canada to do its part during this very difficult period of global food and security. With respect to the BHP Jansen mine announcement in Saskatchewan this week, this will be the largest potash mine in the world. We make absolutely no apologies for doing our part in working with industry. This will ensure potash not only for the medium term but for the long term, and will ensure that Canada will be an actual leading producer for generations to come, creating absolutely hundreds of jobs in the process.
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  • Jun/16/22 8:20:22 p.m.
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Mr. Chair, a few moments ago, I was speaking about the importance of teaching a person to fish. I used to live in the near-northern town of Fermont, which did not have road access until 1984. I know and remember very well how expensive food can be, such as a $15 salad. Even a $25 million investment to help communities even farther north than Fermont, which is after all only on the 52nd parallel, is a band-aid solution. What steps does the government plan to take and what measures will it implement in order to help communities access reasonably priced, healthy food?
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  • Jun/16/22 8:21:22 p.m.
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Mr. Chair, the $25 million that I spoke about was an investment from the middle of the pandemic. In budget 2021, we increased the budget by $163 million for a series of initiatives to address food security in the north, which is very important. We know that everything is more expensive for remote communities. There are no access roads or transportation. That is why we are also investing in building better infrastructure, roads and different ways to encourage transportation so that these communities can better look after their food needs. It is going to take more than just one department to make this change happen. It will require initiative from the entire government and all levels of government, including indigenous governments. That is our initiative, and we will continue to find partners to address this serious issue.
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  • Jun/16/22 8:22:50 p.m.
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Here is where I give my reminder to everyone that the quicker we can ask questions and answer questions, the more people can participate in the debate as we go along. Resuming debate, the hon. member for Chatham-Kent—Leamington.
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  • Jun/16/22 8:23:05 p.m.
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Mr. Chair, I will be splitting my time with the hon. member for Regina—Lewvan. I wish I were speaking more about Canadian food security this evening than speaking about global food insecurity. Prior to being elected, I farmed for most of my life. I have spent a lot of time in agricultural organizations and I also worked with an internationally focused NGO. It has been mentioned here tonight, the Canadian Foodgrains Bank, which deals with hunger, and so, with that background, I have spent a lot of time working for food and talking and thinking about it. If I had to title my remarks today, I would title them with the axiom that we hear at the farm, “nothing cures high prices like high prices”, and its corollary, “nothing cures low prices like low prices”. Ag pundits often cite this expression when they are talking describing volatile agricultural markets, but we might ask ourselves what this has to do with global food insecurity and why should Canadians care. Embedded in that expression actually lies one of the solutions to this crisis that we are facing, albeit it is a bit more of a longer-term solution, but respecting and understanding market dynamics is something we all need to collectively do. This works if governments and we collectively respect how markets work. High prices of anything, food and any product, encourage more production and increase supply. Low prices encourage demand and eventually high prices. I will come back to this in a moment but with the corollary that governments understand this dynamic. Let me speak for a second to why Canadians should care. Obviously, we are all experiencing increasing grocery prices and grocery food. Canada is a rich country. On average, we spend about 10% of our disposable income on the cost of food, which is much lower than in many parts of the world. However, the vulnerable in our own society feel the brunt more than many of us. We know that many problems do not respect international borders. We are dealing with greenhouse gases and climate. That does not respect the border. As we have learned, travel mandates and things like that have not slowed the spread of COVID-19. So too the effects of global hunger in other parts of the world will affect us. I am reminded that World War II was not declared in 1939 when Hitler crossed boundaries into Poland and Czechoslovakia. World War II came from a conflation of various regional conflicts. Whenever in any part of the world a population's average caloric daily intake falls below 1,800 calories, there is civil unrest, food riots, hunger, all sorts of other problems. Let us think back to the Arab Spring. It is important to put a few stats on the record. Global food hunger was actually decreasing through 2014. It has been mentioned that conflict around the world has actually been driving those numbers up. It was down to under 600 million people. The latest figures put it at over 800 million, with 50 million people actually facing acute starvation. There are two issues. As I mentioned in a question earlier, the price and availability of food require both short-term and longer-term responses. To address food instability, food needs to be available. My former employer worked in this space. Certainly, in a short-term response, we do need to supply cash. The Canada Foodgrains Bank led Canada to delinking our food aid back in 2008, which is a good thing, but what we need to do far more is to drive the cost of food down as well. For that, our Canadian agriculture needs all of the tools at its disposal, certainly fertilizer and access to fertilizer. Restrictions on the use needs to be balanced with our environmental responsibility, but we cannot be putting policies in place today that impact Canadians' ability to produce food. The carbon tax has been talked about as well. As I said, high prices cure high prices. More supply is attracted by high prices. For the world's poor, we absolutely need to put more food onto the market, which will lower the cost, which is the second possibility. Let us put our collective efforts toward those aims.
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  • Jun/16/22 8:28:14 p.m.
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Mr. Chair, as my hon. colleague from Chatham-Kent—Leamington mentioned, he has ties to Ukraine. We heard him contribute in a very meaningful way on the Standing Committee on Agriculture and Agri-Food. I want to ask him a couple of things. He highlighted very precisely what the challenge is in vulnerable countries and the geopolitical dynamic that could come from that, and I applaud that because it is spot on. We heard in Kharkiv, which is where the plant-breeding research station is in Ukraine, was targeted directly by the Russian Federation. We heard from the Food and Agriculture Organization of the United Nations that it is going to try to salvage some of the varieties that are there. I am of the view Agriculture and Agri-Food Canada can work constructively to help rebuild some of the varieties where there might be some common overlap. Does he believe that would be a constructive solution the government can work on, and will he constructively raise that to help push the government to work in that domain?
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  • Jun/16/22 8:29:12 p.m.
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Mr. Chair, yes, I absolutely will. I enjoy the work my hon. colleague and I do together at the agriculture committee. We need both short-term and long-term responses. There is a call for an immediate cash injection, and I support those efforts. From a longer-term perspective, Canada has expertise. In my time at the Canadian Foodgrains Bank, I often spoke, and it was referenced earlier by the member for Beauport—Limoilou, about the analogy of fishing and giving a person a fish compared to teaching a person how to fish to reduce the need for further fish down the road. The third stool, which is not often talked about, is access to the pond. I believe the hon. member's question concerns that third component. We need to not only teach and provide Canadian expertise in other parts of the world, but also give access to the pond so they can fish. There is that seed bank of Kharkiv, as well as other efforts. As Canadians, we have to develop the infrastructure in other parts of the world, and that is something that can absolutely be supported.
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  • Jun/16/22 8:30:12 p.m.
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Mr. Chair, I would like my colleague to elaborate on those examples and tell us how our own expertise can support and develop production in developing countries that are facing food shortages.
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  • Jun/16/22 8:30:31 p.m.
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Mr. Chair, some things we, in primary agriculture in Canada, take for granted are actually not very well known in other parts of the world. What we consider as second nature for conservation and agriculture, such as crop rotation and keeping the ground covered with residue, are not well known in places such as Ethiopia. It was the first to plow the land, and has been for 7,000 years, so there is a massive culture change required to bring that about. I will give honours to the Canadian Foodgrains Bank, as its curriculum has been adopted by the Ethiopian government, and it is incorporating that into its agriculture because of the draughts it experiences. It is increasing its food production by adopting some things we take for granted. I was in Tanzania and saw some simple things such as scattering corn versus planting it in a row. Things we take for granted are things we can export and teach.
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  • Jun/16/22 8:31:31 p.m.
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Mr. Chair, prior to being elected, I worked with the Canadian Foodgrains Bank quite a lot, and I think of my colleague as a friend and an ally in this place. I would be remiss if I did not take this opportunity to wish Jim Cornelius a very happy retirement from the Canadian Foodgrains Bank. Very quickly, I would ask for the member to share some more of his expertise with us tonight. We know the Canadian Foodgrains Bank has worked in countries around the world. Some of the work it has done in Ethiopia has been extremely strong. I wonder if he could talk a bit more about some of the ways western farmers have worked with farmers in Ethiopia and have provided food to people in Ethiopia.
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  • Jun/16/22 8:32:16 p.m.
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Mr. Chair, next week I will give a member's statement acknowledging Jim Cornelius and his role. Yes, the Canadian Foodgrains Bank, with a footprint across Canada in the agricultural community, grows food here, sells it into the market and then uses those funds to acquire food. In my remarks, I just touched on how Canada delinked our food aid to the rest of the parts of the world, so we are not destroying local markets when we source food to address food insecure parts of the world. We actually improve their own markets and lead to more sustainability from that perspective. That is an area in which the Canadian Foodgrains Bank led by lobbying the Canadian government back in 2008 to delink that aid. We are actually leading the world when it comes to that, certainly in our efforts in the Horn of Africa with conservation agriculture. As I said earlier, things Canadian farmers do almost by nature these days are not done by nature in other parts of the world. Certainly, that is another area the Canadian Foodgrains Bank has been a leader.
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  • Jun/16/22 8:33:25 p.m.
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Mr. Chair, this is a very important and timely debate that we are joining here this evening on the floor of the House of Commons. It is really talking about food supply and how Canada can be one of the sources to get food to people around the world. There are five major points I am going to make in my presentation today about what I see as the issues agriculture producers are facing in Canada that are hindering their ability to supply the world with more of the world-class beef, chicken, wheat and commodities and to get things moved from market to market. The first thing I see as an issue facing our producers coming down the pipe is front-of-package labelling. It is a big concern. We were reached out to by the Canadian Cattlemen's Association and the Saskatchewan Stock Growers Association. They interviewed yesterday, and it is something people are getting more concerned about, that the government is going to put warning labels on our beef and pork. We should have a really serious debate about whether that is something we need to do going forward because our producers have world-class beef and pork, and we do not need to put warning labels on them. It is a conversation that we need to have in the House of Commons to make sure we are supporting our producers. I believe they are doing phenomenal work from an environmental standpoint and from a food quality standpoint, and the government should not be putting a warning label on the front of packages. We would be the only country in the world to put this burdensome policy on our beef and pork producers. A second issue we talk a lot about in this chamber that is really hurting the food we can produce is the carbon tax. It is ever-increasing for our Canadian producers. In western Canada, when we have these conversations about the carbon tax, we hear these are serious dollars. Now the PBO has come forward and said Canadians are not receiving as much money as they are paying in the carbon tax. The fuel bill of a friend of mine has gone up $15,000 a week, just in the carbon tax, when he is seeding and harvesting. Obviously that is in the high point, during seeding, but that is how much more money this producer is paying to fuel his equipment, and that is just the tractors. It is not counting other pieces of machinery. That is the second thing that is hindering our producers from being able to feed the world. The third thing, as the member for Foothills talked about, is the fertilizer tariff. We are asking for the producers to get that money back from before March 2. We are penalizing our producers with the government's policies, which are something it has control of. It can make it better for our producers and easier for them to grow what the world needs. The fourth thing is the 30% reduction of fertilizer. I have talked to stakeholders across the country, and before this emission reduction was put on fertilizer, Fertilizer Canada, Nutrien and BHP were never reached out to. They were surprised by this 30% reduction target. There were never appropriate conversations with the stakeholders to ensure that they knew this was coming down the pipe. It was a surprise for them. It was a subjective target that came out of nowhere and really shook the people who produce the fertilizer that helps to grow the crops we need to feed the world. The fifth thing has been touched on by colleagues on all sides. It is not a partisan thing. It is the war in Ukraine. Ukraine is the third-largest producer of wheat in the world, and they are in war zone. Those crops are not going to be planted this year. We are burdening our producers in this country with more red tape and more regulations, which will hinder our yields and our crops. We are not going to be able to use much fertilizer, and that is something that is going to happen in this country. We are going to grow less produce and have smaller yields because producers are going to use less fertilizer because they simply cannot afford it. They will not be able to afford the increase in the cost of fertilizer, and they cannot support an increase in the carbon tax. When we talk about the global food supply, where we should be a major player in the world, the government is hindering the ability for our producers to step up and do what is needed.
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  • Jun/16/22 8:38:05 p.m.
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Mr. Chair, I want to ask the member two questions. I know he is up for it, and I will try to make them very quick. One is on fertilizer. We have heard the position from the Conservatives for prior to March 2, the idea of trying to indemnify farmers. I agree with that, but there was an opposition day motion just last week that called for the elimination of the 35% tariff from Russian and Belarusian products. I am wondering if he could explain what his or the Conservative position is for after March 2. The second question is on BHP. The Government of Canada was involved in helping to make a $7.5-billion announcement in the member's home province of Saskatchewan. I had the chance to look at his social media, and I did not see one single mention of that investment. Does he support what the government has done to make that kind of investment with the private sector in his home province to build security on fertilizer right here in Canada?
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  • Jun/16/22 8:39:00 p.m.
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Mr. Chair, I would like to congratulate the member for Kings—Hants on his upcoming wedding. That is amazing. He has probably, like most of us, punched above his weight, so hopefully his wife knows what she is getting into. On his two questions I would say this: First and foremost, we are the only country in the world that has put a tariff on fertilizer. Other G7 countries are creating policies to help their agricultural producers, and we are creating a policy that hinders them. On the second question, I would say that I am glad the government found out that BHP exists in Saskatchewan. I know it has been a long time since there has been a Liberal out there, but BHP has been talking about going to phase two since I was an MLA in 2011, so I have a great relationship with BHP. We talk all the time. I have been out to that mine, and we have done the tours. I think it is going to do very well this year with where fertilizer and potash prices are right now, so I wish BHP good luck and all the best.
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  • Jun/16/22 8:40:02 p.m.
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Mr. Chair, I thank my colleague for his statement. I respect him and I have had the opportunity to work with him several times. I agree with several aspects of his speech, with some reservations, which the future groom opposite may share. Generally, he is right in saying that we must protect our sectors that are doing well and help our farmers rather than hinder them. Speaking of protecting sectors that are doing well, I have one that is very important to me. Last week, the Bloc Québécois introduced Bill C-282 to protect the supply management system, which works extremely well, but has been undermined by recent concessions. Does my colleague believe that we should protect this system for years to come?
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  • Jun/16/22 8:40:55 p.m.
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Mr. Chair, my colleague knows that I grew up on a dairy and beef farm, so I have supported the supply management system in the past. I have many good friends in dairy farming still. I was able to go the National Holstein Convention in Saskatoon and reconnect with a few of them. I am proud to say there were a barnful of Conservatives there. They are happy with our policy on supply management, and they know that we will always have their backs.
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  • Jun/16/22 8:41:23 p.m.
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Mr. Chair, I am going to bring this back to the global food crisis. I know there has been a lot of discussion about farmers in western Canada, but really what we are talking about is the global food crisis. I want to let the member know that right now we are facing hunger that is generational in scope. There are 181 million people at risk of starving to death. In Ethiopia, Kenya and Somalia, one person is dying from hunger every 48 seconds, so this is pretty desperate. I wonder if the member could tell me what he thinks is an appropriate percentage the Canadian government should be spending on food security and support for international development.
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  • Jun/16/22 8:42:18 p.m.
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Mr. Chair, I was an MLA in Saskatchewan. The NDP used to be a driving force in Saskatchewan and western Canada, and this is how far it has fallen. It is quite sad for an NDP member to get up to suggest that western Canadian farmers are not the solution to a global food supply crisis, that they are not the solution to help feed more people around the world. That is why we will always stand up for our western Canadian farmers. The way the member put them down right there is one of the reasons that the New Democrats will probably never win another seat in Saskatchewan, and it is why they are going to have to try to hold on to a couple of seats in Alberta.
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  • Jun/16/22 8:42:59 p.m.
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Mr. Chair, I will be sharing my time with the member for Ottawa West—Nepean. I am exuberant to be here tonight, and I feel the same sense of importance for this debate as my colleague, the MP for Avalon. The date of this debate is particularly timely, given recent events in Ukraine. We all know that Putin's senseless war on Ukraine is having a massive impact on global food insecurity. The Standing Committee on Agriculture and Agri-Food, of which I am a proud member, is currently examining this very issue. I have been actively engaged and learning quite a lot about this issue throughout the study of this important topic. Last week we heard from Ukraine's Minister of Agrarian Policy and Food, who reported that the current situation in his country poses a very serious threat to global food security. Due to the Russian bombardment, grain exports from Ukrainian ports are down by more than half, and spring sowing acreage is down by 25%. Storage capacity is also reduced, as the Russians target silos as well as farm equipment. Ukraine is a major exporter of wheat, particularly to more vulnerable nations in Africa and the Middle East, and we all know that it has been called the breadbasket. The minister also recently said that Russia's invasion of Ukraine will create a global wheat shortage for at least three seasons by keeping much of the Ukrainian crop from markets, pushing prices to record levels. According to estimates by the Food and Agriculture Organization, by next year the crisis could increase the number of people experiencing severe hunger by 18.8 million and impact 1.7 billion people across the globe. Russia has bombed key agricultural infrastructure, stolen Ukrainian grain and agricultural machinery and prevented exports from leaving Ukraine. Significant amounts of Ukraine's best agricultural lands have been occupied and land mines have been planted there, affecting Ukraine's arable land. Before the invasion, the vast majority of Ukraine's exports left from the port of Odessa on the Black Sea. However, Russia's control of major parts of the coastline and the blockades it has imposed have rendered these routes virtually unusable. While some of Ukraine's grain is slowly getting to market, Ukraine is facing logistical challenges and backlogs. In fact, it is estimated that 20 million tonnes of wheat are stuck in Ukraine, and there is an urgent need for export ahead of the spring harvest. Canada is in regular contact with the Government of Ukraine, the EU and G7 allies to support Ukraine in its efforts to export its agricultural commodities. We have received requests from the Government of Ukraine for assistance to help with its export challenges and we are seriously considering options to provide that assistance. Obviously, I hope that we do provide that assistance. Ukraine has asked Canada for support towards additional grain storage, for lab equipment to help establish labs in reclaimed territories and for urgently needed support in exporting Ukrainian agricultural products. The Ukrainian Minister of Agrarian Policy and Food said that the storage capacity is significantly down, stating that “Given the current low rate of exports, last year's harvest and our harvest forecast, the shortage of storage capacity will reach 10 million to 15 million tonnes by October.” We understand the urgency of these requests and that this assistance is are needed to support the harvest this fall. Canada is working with Ukrainian officials to determine the specifics of these requests and is coordinating with other countries to determine how those needs can best be met. In the meantime, Canada will continue to assess other requirements for Ukraine's agricultural industry, including the potential for provision of seed and technical and scientific assistance in processing capacity or research support. We continue to support relief efforts in Ukraine. To date, Canada has provided $245 million to support the humanitarian response to meet urgent needs on the ground in Ukraine and neighbouring countries. I have much more to say, but it is clear to me that Canada is doing what it can and is considering all options to support Ukraine. Also, I was particularly interested to hear the good news recently that the President of the United States has talked about setting up temporary grain storage along the Polish border, which I think Canada supports.
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