AGRI Committee Report

SUPPLEMENTARY REPORT OF THE NEW DEMOCRATIC PARTY - DEBT IN THE AGRICULTURE SECTOR AND ITS EFFECTS

The New Democratic Party would like to thank all witnesses who took the time to share their valuable perspectives on the issue of debt in the agricultural sector and its effects. We are convinced that this study was a productive and beneficial exercise for all political parties. The consensus reached on almost all recommendations reflects the willingness of parties to engage with one another constructively to produce a useful guide on this issue for decision makers.

However, the NDP does not consider the final report to be fully reflective of all the critical testimonies heard, and in particular those regarding risk management and the transfer of farms.

In terms of risk management, it was imperative that the Committee report highlight the statements of witnesses such as the Canadian Agricultural Human Resource Council (CAHRC). The horticultural industry has been in a risky and difficult situation since it lost its preferential status under the U.S. Perishable Agricultural Commodities Act (PACA) in 2014. Groups such as CAHRC reiterated in testimony the importance of re-establishing access to PACA. Canada has long promised to provide reciprocal protection to U.S. producers, but nothing in this regard has been achieved and Canadian producers exporting to the U.S. remain unprotected[1]. In Committee, the CAHRC added that the current circumstances leave Canadian companies vulnerable, as they face long wait times to be paid for their products[2].

We also believe that the Committee's recommendation does not represent all the important testimonies heard on the transfer of farms.

Several witnesses recommended that the government introduce measures to assist with the sale of farms between family members. In their testimony, UPA explained that the NDP had introduced a bill that would have corrected restrictive fiscal rules and improved the chances of intergenerational farm transfers[3]. In a similar vein, the Canadian Federation of Agriculture (CFA) indicated that members of all parties, in one way or another, had at certain times recognized< the insufficiency of the current Income tax and its outdated nature which fails to take into account the structural changes that have occurred in the agriculturalsector over time[4].

We must remember that the NDP proposed the modernization of the Income Tax Act in Bill C-274. This Bill contained measures that would have responded to the concerns of these witnesses, facilitating inter-generational business transfers, and maintaining Canadian ownership. The NDP therefore firmly believes that the Committee should have suggested that the government amend the Income Tax Act to facilitate the transfer of small businesses and agricultural corporations, and to adequately represent the testimonies of all stakeholders heard in the study.