44th Parl. 1st Sess.
November 29, 2023 02:00PM
Madam Speaker, I move that the first report of the Standing Committee on Agriculture and Agri-Food, presented to the House on Wednesday, February 2, 2022, be concurred in.
I will be splitting my time with the hon. member for Lambton—Kent—Middlesex.
I want to concur in the report from the Standing Committee on Agriculture and Agri-Food on food security that looked at processing capacity in Canada with a particular focus on food security. I believe there is some very pertinent information in the report, which I would encourage all members of the House to take the opportunity to read if they have not done so.
There are a couple of things in this report that I found interesting on how things change quickly. For example, in the government response to our report, there is a line that says, “The Government recognizes that the Report focuses on ensuring that a secure supply of food will be available to Canadians”. Budget 2019 states that “one in eight Canadian households currently experience food insecurity, meaning that they are without reliable access to a sufficient quantity of affordable, nutritious, and culturally appropriate food.”
Now, that was in 2019, here we are in 2023, and that number is no longer one in eight, that number is now one in five. One in five Canadians are skipping meals because they cannot afford to put nutritious and healthy Canadian-produced food on their table. I think that is a statistic for all of us in the House that shows the devastating impact that Liberal government policies have had on everyday Canadians who are just trying to feed their families and make ends meet, pay their bills and carry on with their lives.
The focus of this report, and why I want to highlight it today, is about food security or, more specifically, food insecurity. I cannot help but go back to the debate we had yesterday on Bill C-234, which was a common-sense Conservative legislation that would enhance food security for Canadians. It would be making farming more affordable for Canadians, which was a critical element of this study.
However, what was not included in the study, and I want to highlight that as well, is that, at the time, we did not have definitive data on the impact the carbon tax was having on Canadian agriculture. For example, the Parliamentary Budget Officer reported that Bill C-234 would save Canadian farmers close to $1 billion by 2030. We have a report here talking about food security. These elements would have been a very welcome part of the analysis and recommendations, as well as the impact that the carbon tax policy is having on Canadian farms and harming their ability to ensure that Canadians have nutritious and affordable food on their tables.
The report highlighted the importance of innovation and technology to ensure that modern Canadian agriculture could meet demand and meet its responsibilities. Again, with Bill C-234, we are highlighting the fact that there are no commercially available and viable alternatives for Canadian farmers across the country who are heating and cooling their barns and drying their grain, other than natural gas and propane. When I talk about the Parliamentary Budget Officer report and the fact that Bill C-234 would save Canadian farmers close to $1 billion on a carbon tax exemption, that is only on natural gas and propane.
Ironically, gas and diesel already have an exemption and so really, with Bill C-234, what we are trying to highlight is correcting an oversight, which I believe the Liberal government inadvertently made on its initial price on pollution climate change policy when it made an exemption on gas and diesel but did not include an exemption on natural gas and propane. I believe that when the Liberals developed their price on pollution legislation, or carbon tax, they did not include natural gas and propane because I think they just did not have a clear understanding of what agriculture is and the energy sources that the agriculture sector relies on every single day.
This report highlighted the importance of technology and innovation. Farmers are doing that every single day by ensuring that their farm buildings and barns are as energy efficient and state of the art as possible. In fact, one of the farm families who were here last week, who met with members of Parliament and actually participated in a bit of a rally on the Hill and at the Senate, just built a new state-of-the-art chicken barn in southern Alberta, at a cost of more than $3 million, but it is powered by natural gas because there is no other alternative in rural Alberta. Despite using a very clean-burning fuel, they paid $180,000 this past year just to heat and cool that barn. When the Prime Minister quadruples his carbon tax, they will be paying $480,000 a year just to heat and cool that barn.
I have that study here in my hand where the government provided its responses on the importance of food security. I guess I would ask if perhaps we should be updating this study because I am not sure how we can even talk about food security when farmers cannot remain in business.
This particular farmer, who built a new poultry barn, told me that he could not afford these higher taxes. He really only has two choices. One choice is to somehow pass on those additional costs to the consumer. Again, the question arises about food security when Canadians are already facing record-high food inflation. That is only going to get higher as the carbon tax increases. His other choice is to shut down, to close up his farm and his agriculture operation, which again would impact food prices because that means less product on the store shelves and higher prices.
Another interesting fact about this study is that it talked about a concern of Dr. Charlebois, a professor of food and supply chains at Dalhousie University. He mentioned that we are seeing a number of Canadian agriculture and agri-food businesses stop their investments in Canada and Canadian operations. He said, “They're now leaving the country because they can't capitalize any projects as a result of...increasing fees. The competitive environment here in Canada is not...attractive.”
As a result of the carbon taxes, red tape and bureaucracy highlighted in this study, we are seeing Canadian farms declare bankruptcy or shut down, but also that agri-food businesses are picking up and leaving to more friendly entrepreneurial and business jurisdictions. The result of that, again, as we were talking about in Bill C-234, is that they are carbon taxing Canadian farms out of business, but then they are forcing Canadian consumers to purchase food imported from foreign jurisdictions. That causes two problems. One, it has a significant carbon footprint through moving, for example, tomatoes or mushrooms all the way from Mexico into southern Ontario, or fruit and vegetables from California into Quebec, Alberta and Saskatchewan. Two, it is a problem when we use foreign-grown products that do not have the same environmental standards we have here in Canada. There is a real significant problem when those food products are cheaper to import from Mexico, Brazil or Venezuela, when we should be able to produce them right here in Canada.
I wanted to share some of those facts that are highlighted in this report and just how much it is apropos to what is going on with our discussion yesterday about Bill C-234. When this study was published, one in eight Canadians were facing food insecurity. Four years later, it is now one in five.
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Madam Speaker, I am here today to debate concurrence in the report on strengthening food capacity in Canada for food security and exports.
I am a proud member of the agriculture committee. Members on the committee work very well together, and this was a study we did during COVID. We heard from a lot of people across the country about challenges that we face in our agriculture sector. I was able to travel across this country during COVID to experience what our processors were facing first-hand. I had the opportunity to visit a couple of meat processing factories, and it struck me how resilient our agriculture processing sector is. However, processors also need a helping hand sometimes. We lack capacity in this country for food processing.
I am proud to come from a region that grows an abundance of fresh fruits and vegetables, and a lot of vegetables are grown for processing. As a matter of fact, there is a food processor in my riding, in Kent County, that processes field tomatoes. Until recently, there was also a pickling processing plant; unfortunately, due to circumstances, that pickling processing factory closed. It is really sad, because it was a thriving business that employed a lot of people in Wallaceburg. The owners tried to keep it open, but, unfortunately, they did not succeed. Why is this? Policies of the government impeded their ability to continue their business in Canada.
Sugar beets are another example of food produced in my riding, in southwestern Ontario, Kent County and Lambton County. However, 100% of them are shipped to Michigan to be processed. What happens then? They come back to Canada refined as sugar, and we pay a premium for that sugar, including tariffs, even though the sugar beets were grown in Ontario and are a product of Canada. I bring this up because we are seeing more and more that we are losing processing capacity in Canada, whether it is in the fresh food sector, sugar beets or oilseeds. I hear day in and day out that one of the big impediments to being able to compete in Canada is the carbon tax. The carbon tax makes it more expensive for any of the processors to do business in Canada.
Another example of food processing that we lose to the U.S. is pork. There is an abundance of pork producers in my riding. Most of the pork gets processed at Conestoga in Kitchener and, up until recently, at Olymel in Quebec. However, again, we do not process the value-added products in Canada. The pork bellies get shipped down to the States; they are made into bacon and then imported back to Canada, where we pay a premium on that product.
There is a plastics ban that has been proposed to eliminate plastics for all produce. Produce needs to be wrapped in plastic when it is shipped to maintain its quality. We rely on other countries to provide two-thirds of our fresh produce in this country. If it is not kept wrapped in plastic when it is shipped, we are going to see an exorbitant amount of food waste. Not only that, but we are also going to lose the ability to import food in this country, putting our food security at risk. That is talked about in this report.
Food security is of the utmost importance, and if we ban plastics in our produce sector in Canada, how are we going to get the imported food to feed Canadians that comes from all over the world? It is a global supply chain. We do not get to dictate the packaging on fruits and vegetables. Other countries do the packaging, and we need to make sure that ours is uniform, especially with our biggest trading partner, the United States. If this plastics ban goes forward, it will have serious consequences for our produce industry. It is going to cost our produce farmers upwards of $6 billion to make that happen.
Can members imagine what we are going to face in food security if we already have Canadians who cannot feed themselves? We have two million Canadians using a food bank. There are 800,000 who use a food bank in Ontario. The prices of groceries are high right now. I cannot imagine what the price is going to be when, all of a sudden, we have to pay up to 30% more for our fresh produce at the grocery stores. Families cannot afford to eat right now. They are choosing between heating and eating. If the prices continue to go up on food, we are going to have more people lined up at food banks. That is not acceptable in this country.
The carbon tax makes everything more expensive. I am a farmer, and I hear all the time in the House from the members opposite on the government side talking about how farmers do not pay a carbon tax. That is simply not true. Yes, there are things farmers do where they do not pay taxes on their fuel that I could name off, such as driving a tractor in their field, putting fuel into their generator to be able to pump water to an irrigation system or using vehicles that do not use a roadway. These are exempt from the carbon tax and from taxes on diesel fuel. However, in reality, as I am driving through the countryside on my way to Ottawa every week, the farmers are out in their fields combining their corn. This past weekend, on Sunday, was no different; this is very late right now, because it is so wet.
A lot of farmers do not use tractors and wagons anymore to transport their grains from the field back to the farm to the elevator. They are using transport trucks, which are required to pay the carbon tax for the fuel they use. When the trucks are paying more for fuel, of course the trucking companies are going to pass that cost on to the farmer. Most farmers are price-takers, so they do not get to necessarily pass those costs on to the consumer. What does that mean? Farmers are having to eat up those costs on their farm, taking it out of money they would generate as revenue and reinvest in their farm to purchase more innovative state-of-the-art equipment to keep their business in business. Instead, they have to pay more money in order to transport their grains from the field to the elevator.
In my region, it has been a very wet fall. Our farmers have had extremely wet conditions when trying to get the crops off. Not only that, but the corn is coming off the fields with a very high moisture content. Farmers have to dry the grain in order to keep it in the bins, because it goes for animal feed and to the ethanol plant. In order to deliver that corn to the ethanol plant, it has to be at a certain percentage. Whether for corn, beans or wheat, there are no commercially viable options in Canada other than propane and natural gas. If there were, I am sure farmers would use it. What I have heard from farmers is that we do not have an electrical grid system that could ever handle an electric grain dryer. Therefore, right now, they are forced to use propane and natural gas. That is why Bill C-234 is so important. We need to pass the bill, because farmers desperately need this relief from the carbon tax. It will have an immediate effect on food prices in the grocery stores.
As potato farmers, we use transport trucks to transport our potatoes from the field back to the wash plant. A lot of farmers do that now. Transport trucks transport most of the crops from the field back to the farm for processing, and they have to pay the carbon tax. There is no way around it. Therefore, farmers should be exempt from paying the carbon tax on drying their grain and heating their barns. I have 23% of Ontario's chicken in my riding; I have been in those chicken barns. In order to keep the animals alive, the barn has to be kept warm in the winter. How do they heat it? They do so with natural gas or propane. There is no other commercially viable option.
I implore the Senate to pass Bill C-234 and give our farmers that much-needed tax relief. This is about food security; that is what the report is about. We need to ensure that our farmers, now and in the next generation, can stay in business, so we can produce the food Canadians need to eat. Eating is a necessity, and we need to continue to be able to feed Canadians and the world with our nutritious Canadian food.
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