“I requested to be on the Agriculture Committee,” said Coteau, who was named chair of the federal Standing Committee on Agriculture and Agri-Food in June.

“All Canadians, regardless of where they live, have to understand the importance of the sector.”

Agriculture is a key driver of GDP even in Toronto, Couteau added.

“We’re all connected, regardless of where you are in Canada.”

Efforts to engage

Coteau said he has made an effort to engage agricultural communities and visit rural sites in Ontario.

“I’ve done many visits,” he said. “I’ve gone to, you know, the plowing matches in the past in Ontario. I’ve gone to Ontario farms. I’ve gone to greenhouses.”

“Also working as a former (provincial) cabinet minister in Ontario for almost six years, agriculture was one of our key issues in in cabinet.”

“You could say that, you know, I’ve just been an enthusiast to this sector as a whole,” Coteau said.

He added he has not visited farms in Alberta or Saskatchewan but hopes to visit a few over the next year.

Coteau said he has already spoken with organizations like Seeds Canada and Farm Credit Canada (FCC) about the key issues in the sector. Tariffs and trade naturally topped the list.

He also said it would be important to look for ways to strengthen the sector, like interprovincial trade, investment in food processing, government regulation and government support.

Climate change is another major issue that’s come up. Coteau said he has also spoken with a landowner about heat scores on farms and how climate change is affecting operations.

He’s heard concerns over loss of prime farmland to development.

“I’m kind of the person who believes that we need to protect farmland, we need to invest in farmers, and we need to grow this economy,” he said. “It’s always been part of everything I believed in as an Ontarian, but, you know, also as a Canadian.”

What’s in a title?

In his new role, Couteau said he expects to create a forum for members from all parties to weigh in on important issues.

”I’m not the minister,” he said. “(My job is) to make sure the committee is functioning well. But I also see my role as someone who can … listen to the sector and look for ways as a member of parliament to advocate for it.”

Though Coteau himself has no background in agriculture, he says he hopes some of his other previous portfolios may help inform his work.

“Tourism, for example, was heavily connected to the agriculture and agri-food sector,” he said. “From the restaurants to tourist attractions. Like, food is connected to everything we do.”

Ontario microbreweries have grown from a dozen to “literally hundreds,” Coteau said, by way of an example. “They’re starting to use more locally grown products. They’re employing local people.”

Several members of the committee do have a background in agriculture, and Coteau said he thinks this will help to strengthen discussions.

Emma Harrison Hill, Jacques Gourde, David Epp and Yves Perron have farming or agricultural backgrounds. Marianne Dandurand was chief of staff for former agriculture minister Marie-Claude Bibeau. John Barlow has served several terms as shadow minister for agriculture and agri-food.

Coteau said Sophie Chatel represents a large rural riding, and said he thought Paul Connors has represented Newfoundland’s agricultural sector.

When asked about what he hopes to gain from his time as committee chair, Coteau said he wants “to make sure that our country can become more resilient and more self sufficient.”

“I see agriculture as perhaps one of the strongest sectors to allow us to get to that point. It is a part of our pathway to build a more resilient Canada, a stronger Canada…. I think we need all Canadians on board when it comes to understanding that concept.”

“I think people appreciate food,” he continued. “I think people understand the contributions that farmers (make) but I don’t think most Canadians understand how impactful this sector is into the quality of life of Canadians.”

“I want to make sure I can be a champion to support the sector and to ensure that our country is strong and as resilient by maximizing its full potential.”

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It will be his second turn in the role, having previously served between 2015 and 2019.

The announcement came at a Wednesday swearing in ceremony at Rideau Hall, where Prime Minister Trudeau’s anticipated cabinet re-shuffle was unveiled.

MacAulay, who represents the riding of Cardigan in P.E.I, was first elected to the House of Commons in 1998. He has also served as Minister of Veterans Affairs and Associate Minister of National Defence.

He did not attend the ceremony due to a personal matter. He was privately sworn in Tuesday.

Bibeau will take over the role of Minister of National Revenue from Diane Lebouthillier. Who will in turn inherit the post of Minister of Fisheries, Oceans and the Canadian Coast Guard.

Bibeau was first elected in 2015 and has previously served as Minister of International Development, before being appointed Minister of Agriculture and Agri-Food in 2019. She was the first woman to hold that position.

Other ministers moving to new positions include Pablo Rodriguez, who inherited the title of Minister of Transport Omar Alghabra, Mark Holland, who will replace Jean-Yves Duclos as Minister of Health.

Gudie Hutchings and Mary Ng will retain their roles of Minister of Rural Economic Development and Minister of International Trade respectively.

More information to be released in the coming days. See related coverage at the Western Producer.

— Jonah Grignon reports for Glacier FarmMedia from Ottawa.

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The five-year framework agreement currently in place, known as the Canadian Agricultural Partnership (CAP), is a $3 billion funding deal between federal, provincial and territorial governments that funds a wide range of programming within the sector.

That deal, agreed upon in mid-2017, kicked off in April 2018 and expires at the end of March 2023.

Consultations were launched Thursday on the next agreement — the current working title of which is the “Next Agricultural Policy Framework” — to continue through June and into spring next year.

Agriculture Minister Marie-Claude Bibeau continues to be at odds with Prairie provinces over who picks up how much of the tab for cost-shared programming under these frameworks. In the CAP, the federal government picks up 60 per cent to the province’s 40 — a ratio that’s been contentious throughout the COVID-19 pandemic.

Facing high payouts for business risk management programming and tight budgets elsewhere, the Prairie provinces tried convincing Ottawa to boost its share to 90 per cent for affected CAP programming. Bibeau has maintained the current funding level has long been in place and should remain so.

Meanwhile, a federal offer to boost eligibility for payouts under one such cost-shared program, AgriStability, was recently rejected by several of the provinces.

Beyond the dollars and cents at stake, the specific programming to be made available in the next framework is also headed the right way for tense negotiations. Producer and industry groups, for example, have long called for reforms to Canada’s business risk management programs.

The federal and provincial/territorial governments have so far failed to reach an agreement that would meaningfully reform those programs under the current framework, but there has always been at least some optimism for change during the next round of negotiations.

Whether that optimism manifests in substantial changes remains to be seen.

Western provinces are actively exploring what new business risk management programs could be developed. Agricultural ministers in some provinces have expressed support for an alternative program to replace AgriStability — by far the most disliked of all the programs — for 2023.

Complaints of AgriStability being costly and ineffective, particularly on the Prairies, prompted governments in those jurisdictions to explore other options.

Manitoba’s Agriculture Minister Blaine Pedersen, who has championed the idea of a margin-based insurance program, leads the call for more broad changes to business risk management programs in the long term, including a potential replacement for AgriStability.

“We think that is a much better way of producers being able to insure themselves,” he said in March.

He told reporters at that time his government will continue to lobby for a livestock insurance program and explore the efficiency of a Whole Farm Margin Insurance (WFMI) program.

Alberta and Saskatchewan joined a working group to further investigate such a program, which would be modelled like crop insurance.

Much of the discussions and consultations so far toward the next partnership agreement are also expected to focus heavily on climate change.

Bibeau said Thursday it was “hard to tell” how climate change policies will be considered against programming in the negotiations, but she stressed the industry and provinces will continue to have a role in reducing greenhouse gas emissions.

Ongoing development of offset protocols, carbon border adjustments and carbon pricing policies could impact agricultural negotiations between Canadian jurisdictions.

Labour and supply chain issues, brought to the public’s attention in a big way throughout the pandemic, will also be a topic of discussion.

Asked how labour shortages may be be addressed in the 2023 agreement, Bibeau pointed to the federal government’s role in funding research and innovation.

“There’s space for improvement around innovation, around robotics or artificial intelligence, so there is a path there definitely that we are interested in,” she said, adding the shortage could be addressed in part by streamlining immigration programs.

Expect more of a commitment to diverse voices under the next policy framework, as well. Moreso than perhaps any of her predecessors, Bibeau has engaged diverse voices often left out of agriculture.

To that end, she said the federal government will look to improve opportunities for Indigenous peoples, women and youth in the industry.

“We are really committed to diversity and inclusion and I can ensure you our consultation process, through our consultation process, we will reach out,” she said, adding sometimes the government needs proactively seek out different voices.

While the federal government has launched its consultations, expect provinces and territories to do the same; Prince Edward Island, for one, launched an online public survey on the Next Policy Framework on May 31, with a submission deadline of July 1.

— D.C. Fraser reports for Glacier FarmMedia from Ottawa.

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Finance Minister Chrystia Freeland released the budget Monday, showing the majority of new spending will take place over three years and be largely focused on “green growth.”

“Budget 2021 announces the government’s intention to return a portion of the proceeds from the price on pollution directly to farmers in backstop jurisdictions (currently Alberta, Saskatchewan, Manitoba and Ontario), beginning in 2021-22,” Freeland’s budget documents said.

Farmers are expected to receive roughly $100 million in the first year, and “returns in future years will be based on proceeds from the price on pollution collected in the prior fiscal year, and are expected to increase as the price on pollution rises.”

Further details are expected to be released later this year. Some of the provinces currently subject to the federal backstop have recently signalled intent to design their own carbon pricing schemes, meaning producers in those provinces wouldn’t be eligible for the federal payments.

Budget 2021 also extends funding for the Agricultural Clean Technology Program. The $25-million, three-year investment launched in 2018 is to be replaced by a $165 million allocation as the program continues to expand.

According to the budget, $50 million is being prioritized for the purchase of more efficient grain dryers for farmers.

“These initiatives will help farmers transition to lower-carbon, more fuel-efficient ways of farming,” it said.

Freeland’s “green and clean” budget hails farmers as “major players in Canada’s fight against climate change.”

“The agricultural sector has the potential to scale up climate solutions, many of which are already underway across the country,” the budget said.

An additional $200 million over two years is being added to the Agricultural Climate Solutions program, which will “will target projects accelerating emission reductions by improving nitrogen management, increasing adoption of cover cropping, and normalizing rotational grazing.”

That funding will kick in during the 2021-22 fiscal year.

Ottawa also plans to allocate $60 million over the next two years from the Nature Smart Climate Solutions Fund to “target the protection of existing wetlands and trees on farms, including through a reverse auction pilot program.”

A consultation process for carbon border adjustments will also be announced in the coming weeks, Freeland announced.

“This consultation process will begin in the summer with targeted discussions, including with provinces and territories, importers, and exporters — especially those who deal in emissions-intensive goods. The broader public will be engaged this fall,” the budget said.

“Throughout this process, the government intends to continue its international engagement with like-minded partner.”

Because Canada’s Clean Fuel Standard is expected to reduce greenhouse gases by more than 20 megatonnes in 2030, the government is spending $67.2 million over seven years to implement and administer it.

“This standard creates new economic opportunities for Canada’s biofuel producers, including farmers and foresters, who are part of the diverse supply chain for low-carbon fuels. Making this investment now will secure Canada’s future competitiveness in the global transition to a low-carbon economy,” it said.

The government’s spending plans also account for $292.5 million over seven years in compensation to Canada’s supply managed sectors for the CETA and CPTPP trade deals.

The budget confirms a program supporting temporary foreign workers is being extended into 2021-22 to assist with costs associated with COVID-19 and mandatory isolations. It will then be slowly eliminated.

Another $57.6 million is being spent to extend the program, which offers up to $1,500 per worker in isolation until June 15 this year.

“If workers are required to quarantine at a government-approved facility, due to a lack of suitable facilities at their employers’ facilities, employers can receive up to $2,000 per worker for costs associated with mandatory isolation requirements,” the budget said.

After June 15, employers will be able to receive $750 per worker “until the wind-down of the program” on Aug. 31.

Following this, the government intends to phase out the program, but “will consult with employers on the transition to ensure that migrant workers are similarly compensated through their quarantine period by their employers.”

Over six years, the government plans to spend $1 billion on the Universal Broadband Fund “to support a more rapid rollout of broadband projects in collaboration with provinces and territories and other partners.”

— D.C. Fraser reports for Glacier FarmMedia from Ottawa.

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Agriculture Minister Marie-Claude Bibeau and caucus colleagues on Tuesday announced the specific contents of her previously-pledged $691 million, 10-year compensation funding envelope: a Poultry and Egg On-Farm Investment Program and a Market Development Program for Turkey and Chicken.

“These two programs deliver on the promise our government made for full and fair compensation and are designed in direct response to industry demands,” Winnipeg MP Jim Carr, the federal cabinet’s special representative for the Prairies, said in a release.

“These compensation packages were an important part of the historic trade deal we struck with our Pacific trading partners, that has already been hugely beneficial to our export-reliant agricultural industries.”

On-farm investment

Under the Poultry and Egg On-Farm Investment Program, for which the intake of applications is to launch “later this spring,” chicken, turkey, egg and broiler hatching egg producers will share almost $630 million over 10 years.

Eligible producers will be entitled to an amount of on-farm investment based on their quota holdings as of Jan. 1, 2021, the government said in a release.

Projects eligible for cost-shared funding will be “anything that helps a producer modernize, become more competitive and adapt to changing consumer preferences,” for which the program will provide up to 70 per cent of the cost. For young producers — that is, age 35 or younger as of Jan. 1, 2021 — that ratio will run up to 85 per cent.

Producers can apply for funding under the program “whenever they are ready to invest,” the government said, and if applications exceed the program’s allocation for a given year, they may be approved to be reimbursed in a future fiscal year, so as to avoid delaying the start of the project.

The program will also consider eligible costs retroactive to the announcement of support for supply-managed sectors made on March 19, 2019 in that year’s federal budget.

However, the government cautioned that for such “retroactive activities,” the applicant assumes the risk of not being reimbursed if the project doesn’t get approved or the costs are deemed ineligible under the program.

Among the examples of eligible projects are new barn construction or upgrading equipment such as feeding, watering, lighting, ventilation, heating and comfort systems that will “promote energy efficiency and reduce environmental footprint.”

On-farm investment funding will be distributed starting in 2021-22, the government said, with $347.3 million allocated for chicken producers, $59.6 million for turkey producers, $134 million for egg producers and $88.6 million for broiler hatching egg producers over the 10-year period.

Among the examples of the sort of funding a producer could expect, the government said an “average” chicken farmer, who produces 448,202 kg per year, would have access to up to $122,411.

A turkey farmer producing 302,299 kg per year, could qualify for up to $114,195; an egg farmer producing 654,772 dozen eggs per year, $111,203; and a hatching egg producer who produces 3,413,983 eggs per year, $375,297.

Table: Poultry and Egg On-Farm Investment Program’s expected allocation by region (in millions of dollars). Source: AAFC.

Market development

The government said Tuesday it would open the intake for applications to the Market Development Program for Turkey and Chicken that day. That program allocates $36.5 million for Turkey Farmers of Canada and $25 million for Chicken Farmers of Canada over 10 years.

The program is to help fund “promotional activities that differentiate Canadian-made products’ reputation for high-quality, safe and sustainably farmed food that adheres to strict animal welfare standards.”

Among examples of eligible activities given were:

• sector-wide advertising and promotion;
• promotional activities that “build public trust” in Canadian turkey and chicken products;
• market research;
• developing and/or expanding target audiences;
• increasing delivery of current market development activities;
• encouraging product development, product testing and research into new innovative processing and packaging technology at the primary and further-processing levels; and
• adapting current branding to meet “changing consumer expectations.”

Under the program, Agriculture and Agri-Food Canada would provide 80 per cent funding for eligible projects, cost-shared with industry. AAFC also said it could provide up to 90 per cent funding for “specific projects aimed at promoting inclusiveness and diversity in the market development activities supported by the program.”

To access the funding, the two national industry organizations will submit a “multi-year strategy” to Agriculture and Agri-Food Canada for approval.

‘Long-term losses’

The four national feather sector organizations hailed Tuesday’s announcements, saying the funding will help Canadian farmers boost their competitiveness against imports from the Trans-Pacific Partnership (CPTPP) member nations.

“The combination of these programs will allow farmers to plan for the future, navigate the unique dynamics of our respective industries, and contribute to Canada’s goals of growing our agricultural sector,” the groups said in a separate release Tuesday.

The on-farm investment program, they said, “will in turn generate economic activity and investments in rural and urban communities across Canada at a time where our small businesses are hurting, and our local economies need it the most.”

The market development program, they added, will allow the chicken and turkey sectors to “enhance consumer engagement and continue to promote Canadian-made products to Canadians.”

“Today’s announcement offers new opportunities for our farmers to reinvest in their operations and plan for the future as they navigate the long-term market losses under the CPTPP agreement,” Egg Farmers of Canada chair Roger Pelissero said Tuesday in the government’s release.

The government said it also “remains committed to engaging the sector on full and fair compensation” for market share ceded separately under the Canada-U.S.-Mexico Agreement (CUSMA), the successor pact to NAFTA.

Further, the government said Tuesday it also “remains committed to addressing the impacts of recent trade agreements on processors,” as farmers and processors “depend on each other to be successful.”

Dairy payouts

Separately, the government announced last week it had seen 9,682 dairy farmers register for the second year of the Dairy Direct Payment Program, that sector’s compensation program for market share ceded in the CPTPP and Canada-European Union (CETA) trade pacts.

Payments to that group would total $459.4 million, the government said, bringing the total payout so far up to $813 million from the program’s $1.75 billion envelope.

The government said in November it would shorten the dairy program’s payment schedule to four years, down from the eight-year timeline announced in 2019, and instead complete all payments by 2023. — Glacier FarmMedia Network

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With meat packers and food processing plants considering extended hours as they adjust to taking extra measures to combat the pandemic, CFIA was in need of a response to ensure its inspections would continue.

COVID-19 entering processing plants and forcing workers off the job is one of the biggest threats currently facing Canada’s food supply. Already there have been temporary closures at plants in different parts of the country.

“It’s a huge challenge they have to go through right now, putting in place all the measures necessary to meet the provincial public health protocols to protect their employees, including the inspectors,” Agriculture Minister Marie-Claude Bibeau said.

Such closures, she said, are a business decision and she recognizes there will be short periods of disruption at packing and processing plants, but is hopeful once safety measures are put in place the industry will be in a better position to move forward.

The federal government is monitoring the situation and is expected to take additional steps if needed.

“This is a big challenge that the whole supply chain is facing right now,” Bibeau said, adding the federal government is looking at other options but “it’s too soon for me to tell you how we will proceed.”

The $20 million in funding announced Tuesday is primarily to ensure there will be more inspectors available for CFIA to employ. Federal food inspection officials will be working with their provincial counterparts — and vice-versa — and the agency expects to bring in veterinarians and some of its recently retired inspectors to work.

Bibeau said she is aware there could be an increase in demand for CFIA inspectors as processors look to extend their operating hours, as a means of compensating for lower production levels due to COVID-19 mitigation.

“We wanted to add enough inspectors and enough flexibility to make sure if there is a slowdown in the production, it wouldn’t be because CFIA was not able to meet the demand,” she said.

The money is also expected to help develop “flexible ways to carry out inspections,” such as through the expanded use of tablets and other electronic tools and of the CFIA’s remote service delivery network.

The federal opposition Conservatives’ agriculture critic John Barlow said in a statement it is “urgent” for the food supply system that processing plants remain open.

Already CFIA had announced a suspension of low-risk activities, saying it would halt work that does not immediately impact the production of food safety. Food safety investigations, import inspection and emergency management are all being considered high priorities.

Meat packer Olymel temporarily suspended operations at a Quebec kill-and-cut facility after nine cases of COVID-19 were found among its staff. Two beef packing plants in Alberta, responsible for a significant portion of the country’s total processing capacity, have also announced reduced production to combat the pandemic.

— D.C. Fraser reports for Glacier FarmMedia from Ottawa.

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The federal and Ontario governments on Monday last week announced up to $141,450 through the Place to Grow: Agri-food Innovation Initiative, a Canadian Agricultural Partnership program, for the Ontario Broiler Hatching Egg and Chick Commission (OBHECC).

The upgrades, they said, are expected to reduce costs by “further automating data inputting processes” and allowing other systems, such as on-farm sensors, to “seamlessly” connect and upload new data.

“This progressive solution will reduce overhead and increase the overall efficiency of the hatchery supply chain while building value and serving the chicken industry’s needs of sustainable, safe and high-quality products,” OBHECC executive director Bill Van Heeswyk said in a joint release last week.

“This investment ensures chicken farmers are equipped with up-to-date and efficient traceability tools, which are essential to maintaining strong businesses and to strengthening public trust in food safety and quality,” federal Agriculture Minister Marie-Claude Bibeau said in the same release.

The OBHECC project is one of about 2,500 in Ontario to receive Canadian Agricultural Partnership funding since June 2018.

In Ontario, cost-share program funding to agriculture and value chain organizations via the partnership flows through the Place to Grow program, whose next application intake runs from Jan. 6 to 27.

Place to Grow, the governments said, “encourages greater collaboration to identify opportunities and address challenges in the sector.” — Glacier FarmMedia Network

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Federal Agriculture Minister Marie-Claude Bibeau recently announced minor, cost-free tweaks to AgriStability, during the same week the public was given an updated look at Canada’s fiscal situation.

That update shows the Liberal government’s expected budgetary deficit has continued to grow. It is now billions of dollars more than what was expected when the budget was released in March — and the figures provided don’t account for the billions more in spending promised by the Liberals in the 2019 election.

The Liberals pledged to improve BRM programs during the campaign, and since her reappointment to cabinet, Bibeau has made a point of stating publicly — more than once — that she wants to improve Agristability.

That is why, rather than making changes now, Bibeau announced — alongside her provincial counterparts — a full review of BRM programs will be completed by April, then addressed when the country’s agriculture ministers meet again in July.

This suggests there won’t be a significant increase in funding in the budget when released (typically, this happens in March).

Bibeau knows BRM improvements are going to cost money (especially if there is to be a return to the long-called for 85 per cent reference price margin), telling reporters this week it was appropriate to do a review, to make sure, “that when we’re ready to put more money on the table, we would do it towards the right program.”

Her words combined with the overarching federal fiscal picture suggest the federal government isn’t ready to put more money on the table right now. Time will tell if it will be ready in July.

Farm groups are right to raise concern about significant improvements being ready for the 2020 season. They also have the right to be frustrated by slow or inadequate action.

Reviewing BRM programs before making changes is a necessary step, sure, but it’s not as if the problems with AgriStability are a mystery. The Liberals – in their own recent reports – have noted some of the issues.

They are aware that despite the number and value of AgriStability payments going down, the administrative cost of the program has stayed flat since 2013, when the program last experienced a major overhaul.

(Administrative costs as a percentage of the payments to producers increased from 15 per cent in 2010-11 to 21 per cent in 2014-15, for example).

They know – again, because it’s in a publicly available report — to address this issue, a major change in the program’s design is needed.

The Liberals are aware participation rates in AgriStability have consistently declined – something the minor tweaks looked to address but won’t, according to groups such as Grain Growers of Canada.

And of course they know about the longstanding ask for the reference price margin to increase and complaints of the program being cumbersome and complicated.

But improving upon all of that costs money. And while the Liberals have demonstrated a clear desire to spend, they clearly have not made improving BRM programs a priority.

If it was, Bibeau wouldn’t be buying time the way she is now.

— D.C. Fraser writes for Glacier FarmMedia from Ottawa.

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