AGRI Committee Report

BLOC QUÉBÉCOIS SUPPLEMENTARY OPINION

YOUNG FARMERS: THE FUTURE OF AGRICULTURE

In general, the Bloc Québécois supports the main points raised in the report since they reflect in some ways the points that the Bloc has been making for several years.

The federal government claims to be concerned about the future of agriculture, but, as the report states, “there is no comprehensive federal policy targeting young or new farmers” (par. 3). There is also no comprehensive or consistent definition of a young farmer. We therefore believe it is important to express our views in this supplementary opinion, based on the Committee’s hearings on young farmers as well as the regular meetings that Bloc MPs have had with Quebec’s young farmers and with young people interested in this very demanding yet commendable career.

In many cases, federal program criteria are so stringent that young farmers cannot obtain adequate financing (financial credit or loan guarantees). When they do manage to get the financing they need, they are hit by extremely high interest rates because they are considered to be high risk. Young farmers rightly feel that these financing programs were “designed for large operations that have enough capital to be eligible” (par. 30).

Quebec’s approach

During the Committee hearings, we noted that Quebec has introduced several programs to support young farmers. The following programs were established by the government or directly the agricultural sector itself:

• the Financial Support Program for Aspiring Farmers, which is administered by Financière agricole and helps young people get established in the industry and receive the proper training;
• the “patient capital” program, designed to facilitate farm transfers to young people who are not from farming families;
• the Programme d’aide au démarrage de nouveaux producteurs d’œufs de consommation, a start-up program to help people from non-farming backgrounds get started in egg production;
• the Programme d’aide à la relève en production laitière, which provides 10-year loans to help young producers obtain a quota.

The federal government should look to these programs for new ideas to help young farmers, while respecting the jurisdictions of Quebec and the provinces and avoiding program duplication. In 2005, the Bloc Québécois and the Syndicat de la relève agricole de la Côte-du-Sud held a conference in La Pocatière entitled, “Vers un transfert de ferme gagnant.” The recommendations and findings of this conference are still relevant today. The Bloc Québécois adopted the recommendations in its campaign platforms and introduced motions in the House of Commons on three occasions. Several measures are also contained in the Report on the Fact-finding Mission on Canada’s New Agriculture and Agri-food Policy, which the Committee adopted in June 2007. These recommendations are presented at the end of this supplementary opinion.

On May 10, 2010, the Fédération de la relève agricole du Québec tabled a brief with the Committee entitled, “Vers une politique d’établissement en agriculture canadienne” in which it highlights the following priority initiatives to address the situation in Quebec:

• Add questions on farmers' succession plans to the agricultural survey conducted every five years. There is currently no means of knowing farmers' retirement plans and whether or not they have someone to take over for them. Without this critical information, there is no way to establish a bank of farms that lack successors and connect them with potential candidates.

• Establish highly effective incentives, such as:

-          a farm transfer savings plan that would greatly enhance farmers' savings if they transfer their business;

-          the tax-free transfer of farm property, as in a donation or non-family transfer.

• Make new-farmer grants tax-free to assist farmers who are bringing young people into their operations.

If Quebec can introduce several programs to help young farmers, then the federal government can certainly follow suit. However, it must make a clear commitment to respect Quebec’s jurisdiction. Two recommendations could pose difficulties in this regard:

• Recommendation 2.5: The Committee recommends that Agriculture and Agri-Food Canada offer to cooperate with the provinces in order to explore the possibility of including agricultural courses in existing programs or courses. Quebec has sole jurisdiction over education, and the federal government must not take any action in this area without the approval of the Government of Quebec.
• Recommendation 2.6: The Committee recommends that Agriculture and Agri-Food Canada, in cooperation with industry stakeholders and the provinces, encourage “buy local” campaigns across the country. Provincial governments and the Government of Quebec have undertaken similar initiatives. We must not have a repeat of the organic labelling or the “Product of Canada” fiascos.

The report also tries to address the urban/rural divide and how public awareness campaigns can help people interested in moving to rural areas understand the realities of farming. Many families move to the country but cannot stand the noise or smell produced by farming activities. This type of campaign is clearly the responsibility of the Quebec government and provincial governments as part of their farmland management activities. This is a good objective but these governments are more in touch with their citizens, and their activities must not be undermined.

Making agriculture profitable

We can no longer deny that the agriculture industry is in crisis. The report points out that young farmers cannot consider agriculture to be a viable option or way of life if it is not profitable. It proposes several solutions, including the promotion and development of the supply management system.

Dairy, poultry and egg producers in Quebec and Canada advocate supply management, and the Bloc Québécois has supported and promoted this system for several years. The concept is based on paying a higher price for quality food and enabling producers to earn a fair and reasonable income. This solidarity between consumers and producers forms the basis for food sovereignty and the development of human-scale agriculture.

Other programs have been introduced in addition to the supply management model, particularly through the Agricultural Policy Framework (APF). Several programs in the first series introduced in 2003 were criticized and found to be ineffective, such as the Canadian Agricultural Income Stabilization Program.  When the second series of programs (APF II) came out in 2008, producers thought that governments had listened to their complaints. Unfortunately, that was not the case. Recommendation 3.1 therefore draws on the testimony of many producers and proposes that changes be made to “AgriStability, AgriInvest and AgriInsurance to specifically make them more responsive to agricultural industries in crisis and to better meet the needs of young and new farmers.”

The Bloc Québécois wishes to repeat its request that the government introduce a true AgriFlex program, as suggested by the farmers themselves, to provide them with sufficient and flexible support, and that the program be adapted to meet regional needs through the Government of Quebec and the provinces.  

Lastly, two other issues arose regarding the profitability of agriculture. The first concerns the distinct lack of R&D support. The R&D sector is critical to developing a strong and competitive agriculture industry, particularly in the fields of clean energy, organic agriculture and phytosanitary regulations. In fact, enhanced R&D funding would definitely accelerate the harmonization of environmental and phytosanitary regulations and ensure a certain level of competitiveness for producers here. It would also accelerate the process to register new products or those derived from biotechnology.

The second issue involves access to foreign markets. Several witnesses commented on the need for more export opportunities. Increased market access is obviously good, but we are particularly pleased that the Committee is taking into account that “farmers must compete in an environment with fairer trade rules” and that this liberalization cannot take place at any price.

The Bloc Québécois’s five proposals

The income of Quebec farmers is not increasing at the same rate as farm size, resulting in greater debt. This situation is compounded by several factors: an aging farming population; inadequate government assistance in the face of rising input costs; and unfair international trade regulations. Consequently, the cost of taking over a farm (through purchase or transfer) is greatly impeding young farmers.

In response, the Bloc Québécois is adopting the ambitious objective proposed by the Union des producteurs agricoles and the Fédération de la relève agricole du Québec to maintain the number of farms operating throughout Quebec.

The Bloc Québécois proposes the following recommendations, which focus on cooperation, savings plans and improved taxation measures to assist young farmers in Quebec.

André Bellavance
MP for Richmond–Arthabaska
Bloc Québécois Agriculture and Agri-food Critic
Bloc Québécois Caucus Deputy Chair

France Bonsant
MP for Compton–Stanstead
Bloc Québécois Agriculture and Agri-food Assistant Critic