“One of the great strengths of the U.S.-Canada bilateral relationship is the successful integration of our meat and livestock sectors,” the submission said.

The Canadian government made its submission June 9 as part of U.S. consultations on voluntary country of origin labeling (vCOOL) for U.S. meat, poultry and eggs.

The Biden administration proposed the rule in March in response to lobbying from U.S. ranchers, Reuters reported at the time. The rule would limit “Product of USA” and similar labels to products derived from animals that were born, raised and slaughtered in the U.S. However, it would not require products to carry an origin label.

Under current rules, animal products can be labelled as “Product of USA” if animals were processed in the U.S., even if they were born and raised elsewhere.

In 2022, total U.S.-Canada trade in live cattle, hogs, poults and chicks, hatching eggs, beef and pork was worth more than US$8 billion, according to the recent Canadian submission.

Canada has argued that supply chains operating under the proposed rules will have to segregate Canadian and U.S. animals and products. This would be costly and inefficient and discourage companies from using Canadian inputs.

A similar rationale led to the downfall of vCOOL’s mandatory predecessor, struck down in 2015 following a World Trade Organization challenge that ruled in favour of the complainants, Canada and Mexico.

The new proposed rule could also harm U.S. producers, the Canadian government said.

“For example, in recent years, there has been an increase in live cattle exports from the United States to Canada due to feedlot capacity expansion in Canada, higher processing volumes, and strong demand for beef,” the submission read.

“Under the new proposed rule, if an American rancher sends an animal to a Canadian feedlot, by virtue of availability, proximity, or economics, that is then sent back to the U.S. for slaughter and processing, that product would no longer be allowed to bear a ‘Product of USA’ claim.”

The rule also fails to account for supply-chain integration in border states and provinces, the submission claims. It would put undue pressure on processing facilities, especially small or medium-sized plants, to source American inputs when Canadian inputs are closer at hand.

The Canadian government requested that the U.S. “pauses and reconsiders the proposed rule in order to allow for consultations between Canadian and U.S. officials.” –– Manitoba Co-operator staff

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The “What We Heard” Report, released Wednesday, is the result of consultations between AAFC and the agricultural sector to gather feedback on how best to support farmers and producers to achieve a 30 per cent reduction in fertilizer-related greenhouse gas (GHG) emissions from agriculture by 2030 — a stated federal goal since 2020.

Over 2,000 submissions were received through the online consultation, technical workshops, and town hall meetings between March and October 2022. Farmers, producers, industry associations, provinces and territories, scientists and environmental organizations provided their input.

A large number of respondents questioned whether a fertilizer emissions reduction target was needed, a sentiment that was often coupled with concerns that a mandatory target might later be imposed. A significant number of respondents said they preferred an intensity-based reduction in emissions rather than an absolute reduction in emissions. They were also concerned about how these targets might impact production.

Farmers were also concerned that climate change policies might not take into consideration the economics of emission reductions and how that could affect their bottom line.

Another concern was that applying blanket policies doesn’t properly reflect the regional diversity of the agriculture sector in Canada. Respondents indicated more localized data and increased extension services would help them adopt nitrogen management practices.

However, while there were many concerns with the program, there was also significant buy-in. Many respondents recognized the need to act on climate change and were on board with reducing emissions. But they also wanted recognition for the role that Canadian farmers already play in promoting sustainability and reducing emissions, something in which many respondents felt pride.

“Fertilizers are an essential input for farmers,” Agriculture Minister Marie-Claude Bibeau said in the report. “We need to ensure that our efforts to reduce emissions do not undermine their competitiveness or their vital work, especially at a time when food insecurity has reached unprecedented levels worldwide and the fertilizer supply chain is increasingly strained.”

Bibeau’s message also reinforced the voluntary nature of the targets.

“I would like to be clear; there is no mandatory reduction in fertilizer use on Canadian farms. Instead, we want to support measures that producers can take voluntarily to reduce their emissions over the long term without curtailing growth in crop yields,” she said.

The desire to see better communication and engagement between the government and the agricultural sector also emerged through the consultation process. To address this, a Fertilizer Working Group is being formed under the Sustainable Agriculture Strategy Advisory Committee.

The objectives of the committee will be to strengthen the ongoing dialogue between industry and government, examine mechanisms that need further support and improve the measurement and tracking of fertilizer emissions reductions in the sector.

“There is clearly a diversity of perspectives on many key issues, and we are pleased to see the report identify the importance of further producer engagement in advancing this voluntary approach,” said Keith Currie, president of the Canadian Federation of Agriculture. “We are pleased to see the report factor in producer profitability.”

Fertilizer Canada CEO Karen Proud said she was pleased to see the support of 4R nutrient stewardship. “We look forward to continuing to work with the government and producers to improve measurement and accelerate the adoption of 4R best management practices, which reduce emissions and increase productivity,” she said.

— Don Norman reports for the Manitoba Co-operator from Winnipeg.

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Canada’s Trade Minister Mary Ng and her Indonesian counterpart Muhammad Lutfi on Sunday declared the launch of negotiations on a comprehensive economic partnership agreement (CEPA).

In a statement, they said they’ve “instructed officials to hold the first round of negotiations at the earliest opportunity,” expected in late 2021.

Canadians “expressed a high level of support for a possible Canada-Indonesia CEPA” during public consultations earlier this year, the government said in a release.

About 78 per cent of respondents to those consultations, launched in January, were deemed supportive of a free trade agreement.

Of those, about a third came from the agriculture and agri-food sectors, listing market access, dealing with technical trade barriers, investment and sanitary and phytosanitary measures as priorities. Environment, inclusive trade and labour issues ranked lower.

Meat exporters want challenges of entering the Indonesian market addressed. Particularly, they mentioned challenges from importing products with Halal certification, and issues stemming from how Canada’s meat inspection system meshes with packaging or labelling requirements in Indonesia.

Supply-managed sectors expressed support for a deal, so long as the federal Liberals uphold a commitment to not provide any more market-access to supply managed goods.

Across the board, there is broad support for Canada to pursue a bilateral deal with Indonesia at the same time it seeks a broader pact with the 10-nation Association of Southeast Asian Nations (ASEAN), which is headquartered in Indonesia.

Canada and the ASEAN group held two rounds of exploratory talks, in 2018 and 2019, toward a possible trade pact. Four ASEAN nations — Vietnam, Malaysia, Singapore and Brunei — are already parties to the Trans-Pacific Partnership (CPTPP) trade pact with Canada.

“References were made to the fact that pursuing a trade agreement with Indonesia would complement Canada’s other trade policy priorities, such as Canada’s overall trade diversification strategy, expansion of the (CPTPP) through accessions, and deepening commercial ties with the fast-growing Indo-Pacific region,” a consultation report from Global Affairs Canada said.

Indonesia has expressed a desire to negotiate a broader deal in parallel with a bilateral one.

“We see the benefit of both (deals),” Iffah Sa’aidah, a trade attaché in Ottawa with the Indonesian government, said. “There will be a benefit of both of the trade deals, usually the bilateral trade deal is more broad and deeper, maybe more technical and economic co-operation.”

Indonesia is a co-ordinator of ASEAN’s pursuit of a trade deal with Canada, for which formal negotiations are expected to begin in early 2022.

By itself, Indonesia is “one of the top destinations for Canadian cereal crops and a gateway into the rapidly growing Asia Pacific region,” Dean Dias, CEO of Cereals Canada, said in a release Monday hailing the two countries’ announcement.

Indonesia, he said, “is a major market and source of growth, especially for Canadian wheat exports. Consumers there buy 11 per cent of Canada’s wheat exports to the world, bringing over $600 million in value on average to Canadian farmers and exporters each year.”

Cereals Canada, he said, expects the CEPA negotiations to “strengthen the stability of market access over the long-term. For Canadian farmers and exporters, promoting science-based policies that elevates the trade and business environment is a real priority.”

Global Affairs Canada, meanwhile, said in its report that a bilateral pact with Indonesia could “contribute significantly to Canada’s overall economic, social and environmental priorities, in line with Canada’s commitment to an inclusive approach to trade.”

Including issues such as the environment or labour rights in trade deals are relatively new to Indonesian negotiators, who have expressed caution over Canada’s insistence on including such measures.

Despite such issues ranking as a lower priority, Global Affairs noted in its report “many submissions indicated support for Canada’s inclusive approach to trade, which aims to ensure that the benefits of trade are more widely shared. A few submissions mentioned that Canada is well-placed to ensure that any future agreement promotes equality, non-discrimination and human rights in both Canada and Indonesia.”

Some stakeholders suggested labour standards and human rights issues be addressed through a dedicated chapter in the trade agreement.

“Several stakeholders mentioned that poor health and safety regulations, low compensation and forced child labour in Indonesia are all factors that Canada should consider when negotiating an agreement,” read the report from Global Affairs.

Environmental concerns, including Indonesia’s limited environmental regulations, were also raised as a concern.

In Sunday’s announcement, the two countries’ trade ministers said jointly that “without prejudice to the final outcomes, the negotiations would cover mutually agreed areas of interest to both Indonesia and Canada, including market access, rules to facilitate trade and investment, and co-operation.”

Those talks, they said, would take into account “each other’s sensitivities and different levels of development.”

— Includes files from Glacier FarmMedia reporter D.C. Fraser in 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’s first budget, released April 19, included significant spending to help producers transition to a greener economy and cited agriculture as a foundational pillar of Canada’s future.

“CFA will be working closely with the federal government to ensure that these words are followed with impactful actions that truly leverage the potential in our sector,” said CFA president Mary Robinson in a statement.

Six investments in particular were highlighted by CFA as items in line with the pre-budget recommendations made by Canada’s largest general farm group.

A $1 billion commitment to rapidly roll out broadband projects, and additional money to assist farmers combat COVID-19 and climate change were included on that list, and in budget 2021.

CFA said it would have liked to see “targeted investments addressing the sector’s continued labour needs and leverage domestic market opportunities” but welcomed $1.9 billion in spending over four years to improve Canada’s trade corridors.

“Agriculture has the ability to become a natural climate solution with the continued adoption of technologies and techniques that improve carbon sequestration and capture” with the proper investments and infrastructure, Robinson said.

Bob Lowe, president of the Canadian Cattlemen’s Association, said the group sees the budget as “a starting place for economic recovery discussions. With enabling supports and strategic investments, the agri-food sector has the potential to come out of the pandemic stronger than ever and help Canada in its fight against climate change.”

The CCA said the beef cattle sector is already leading sustainability initiatives through its 2030 goals and “look(s) forward to being a partner of the government as policies and programs are developed.”

Farmers and ranchers to be part of these discussions, the CCA said, “to ensure there are not unintended consequences for the environment, such as grassland loss.

“We note the budget included land conservation efforts and it is important that grasslands, that are such a vital part of the working landscape, are included in these policies, particularly as other government policies may lead to the unintended consequence of further grassland conversion.”

Farmers For Climate Solutions offered up one of the most comprehensive pre-budget submissions to the federal government, and is claiming a win in budget 2021. Like the CFA, several of its pre-budget recommendations were directly addressed by Freeland.

A $200 million in new funding over two years to help producers reduce emissions through nitrogen management, cover cropping and rotational grazing scored high marks with the organization. So too did the $60 million set aside to protect wetlands and trees over the next two years.

As its name suggests, Farmers For Climate Solutions has focused its lobbying efforts on green investments for the sector as Canada aims to achieve its Paris Agreement targets by 2030.

Ian McCreary, a Saskatchewan grain and livestock farmer who helped develop the organization’s budget recommendations, said Canada’s customers want sustainably grown food.

“This investment will support farmers across the country to scale-up practices that are proven to reduce our sector’s emissions,” he said, “Climate change poses the single largest threat to our sector, and this investment is an imperative for our ongoing success.”

‘Points’

Agriculture Minister Marie-Claude Bibeau gave credit to the producers who continue to work to reduce emissions on their farms.

“More and more, farmers are the first ones to witness climate change,” she said, adding they are also the first ones that have to deal with changing weather.

“We have to make a much more significant shift.”

Leading up to the budget, the Liberals telegraphed several intentions and welcomed consultations.

While some groups were happy to see the government pay attention to consultations, not all stakeholders were congratulating the federal government for the 2021 budget.

The Western Canadian Wheat Growers Association (WCWG), for one, said it saw little that will benefit grain farmers in the budget and accused the government of failing to consult with the industry before announcing plans to limit nitrogen fertilizer use.

Its previously released climate plan noted direct emissions from synthetic nitrogen fertilizer applications had increased 60 per cent since 2005 and are projected to continue rising.

That plan committed to setting a “national emission reduction target of 30 per cent below 2020 levels from fertilizers and work with fertilizer manufacturers, farmers, provinces and territories, to develop an approach to meet it.”

A $50 million commitment to help retrofit grain dryers to be more environmentally friendly, as part of a $165.7 million investment, was also included in the budget.

“It is staggering to think that the federal government wants grain farmers to adopt commercially available clean technology by moving off diesel and assist with the purchase of more efficient grain dryers – this is an odd proposal and suggests that the farmers don’t already adopt the newest innovations that have proven benefits… which couldn’t be further from the truth,” Margaret Hansen, Saskatchewan’s director for the WCWG, said in a statement.

Despite Hansen’s assertion all farmers are already adopting commercially available clean technology, the federal government plans to help cover the cost of retrofitting about 1,400 grain dryers to be more environmentally friendly.

Asked about a lack of consultation, Bibeau pointed out she regularly ranks among the most lobbied federal politicians.

“I feel that’s all my life,” she said. “I spend my life on Zoom (with stakeholders).”

She said actions taken in this budget, and action items proposed ahead of it, were measured by their contributions to reaching Canada’s climate goals.

“The proposals that were bringing the best results in terms of reducing emissions would gain more points when it came to the final decision,” she said.

Grain Farmers of Ontario, meanwhile, said it “applauds” the government’s budget pledge to return a portion of the proceeds from carbon pricing directly to farmers.

GFO chair Brendan Byrne said the budget “recognizes that many farmers rely on natural gas and propane in their operations and that there are no ready substitutes.”

GFO was among several farm groups calling on Ottawa to exempt fuels used for grain drying from the pollution pricing system. Byrne said the group will “continue to call on the government to similarly rebate funds collected to date, and to ensure that rebates are delivered in a way that is equitable and administratively simple.”

The Canadian Horticulture Council (CHC) said it was “disappointed” in agriculture funding seen in the budget, “as it fails to adequately recognize our sector’s important role in a post-pandemic economic recovery.”

Jan VanderHout, CHC’s president and a vegetable grower in Ontario, said in a statement “we had hoped to receive more support from the federal budget.”

Horticulture producers had called for the creation of a financial protection mechanism for fruit and vegetable growers, pitching it as a no-cost solution for government that would save farm businesses.

“As Canadians continue to deal with the economic impacts of COVID-19, ensuring a stable and secure supply of fresh food remains critical,” said Rebecca Lee, CHC’s executive director.

“A greater consideration for cost certainty, through financial protection and stable business risk management programming, would go a long way to equipping our fruit and vegetable growers with the tools to survive and thrive.”

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

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International Trade Minister Mary Ng on Friday announced Canada is ratifying the Canada-U.K. Trade Continuity Agreement (TCA), after its enabling legislation, Bill C-18, received royal assent on Wednesday.

The interim deal is meant to maintain trade flow between Canada and the U.K., following the latter country’s exit from the European Union and, in turn, from the Canada-E.U. Comprehensive and Economic Trade Agreement (CETA).

The TCA “provides much needed predictability and stability, and will support workers and businesses on both sides of the Atlantic,” the government said Friday, noting Canada and the U.K. are “taking all necessary steps required” for an April 1 implementation.

U.K. International Trade Secretary Liz Truss, in a separate release Friday, said the TCA “saves an estimated 42 million-pound (C$73.1 million) tariff burden on U.K. exports, including through eventual zero tariffs on cars, and zero tariffs on beef, fish, chocolate bars and soft drinks.”

Ng on March 12 also launched public consultations on new trade negotiations with the U.K. toward a permanent trade pact. Those consultations are scheduled to wrap up April 27.

The Canadian Cattlemen’s Association said Friday it plans to be in on those consultations.

“We recognize the importance of avoiding trade interruptions and the need for a transitional agreement,” CCA president Bob Lowe said of the TCA in a separate release Friday.

“However, we are strongly advocating for a swift return to the negotiating table to establish an ambitious free trade agreement that addresses the current trade-limiting factors found within CETA.”

From cattle producers’ perspective, the CCA said, the TCA is “largely a replica of CETA with some gains being made in how Canada’s quota into the U.K. is administered.”

Under the TCA, the CCA said, the access granted for Canadian hormone-free beef this year totals 3,279 tonnes in 2021 and 3,869 tonnes c.w.e. (carcass weight equivalent) in 2022.

The U.K., meanwhile, “will have full duty access to Canada.”

Citing Agriculture and Agri-Food Canada (AAFC) data, the CCA put Canada’s beef trade deficit with the EU — including the U.K. — at about $500,000 in 2018, followed by a $17.3 million gap in 2019 and $96.8 million in 2020. For the U.K. alone, the CCA said, the 2020 beef trade deficit sits at $14 million.

During 2020, the CCA said, Canada exported 1,415 tonnes of beef to the U.K., which is “within the total access we have gained with some room for growth.”

During that time, however, the U.K. shipped 5,393 tonnes of beef to Canada, “significantly over our access to their market in this continuity agreement.”

No dispute resolution process

The CCA is thus “significantly concerned with how beef trade with the EU and U.K. has progressed” to the point where the organization has had to ask for compensation from the federal government, and it was “disappointing” that full trade reciprocity wasn’t granted in the TCA.

In future agreements, the CCA said, “we must obtain reciprocal access. Anything less is unacceptable to our producers.”

Ng, during C-18’s second reading in January in the House of Commons, said the TCA commits both countries to launch talks on a comprehensive Canada-U.K. trade pact within a year of the TCA’s entry into force, toward the goal of a new bilateral deal within three years.

During the same session in the Commons, however, B.C. MP Tracy Gray, the international trade critic for the opposition Conservatives, pointed out that while the TCA commits Canada and the U.K. to get back to the table within a year, “there are no penalties in the agreement if one side decides not to.”

The lack of such a sunset clause, she said, “makes this transitional agreement no different, really, from a comprehensive or permanent one.”

Further, Gray said, “the government’s failure to address concerns raised by stakeholder groups, especially by the agriculture and agri-food industry, such as non-tariff barriers, will unfortunately continue. Those are very concerning, and there is no clear dispute resolution process in the agreement.” — Glacier FarmMedia Network

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Finance Minister Chrystia Freeland on Jan. 25 launched pre-budget consultations and since then, her schedule has involved several meetings with stakeholders.

“We want to hear ideas from Canadians, from all walks of life, on how to restore strong growth, forge a more resilient middle class, and build back better. This is your budget; tell us what matters most to you,” she said at the time.

A hard date hasn’t yet been set for the next budget, but Freeland’s consultation period is scheduled to close on Feb. 19. An online questionnaire for the public is available until that date.

In August, the Canadian Federation of Agriculture released its wish list for the 2021 budget. In these budget consultations, the organization plans to continue to refer back to that document, which offers three broad recommendations, each highlighted by specific measures that can be taken.

To kickstart the economic recovery, the CFA recommends the government restore the AgriStability program’s payment trigger to 85 per cent and eliminate the cap to reference margins.

Ottawa is prepared to remove the reference margin limit and boost the program’s compensation rate, but releasing extra dollars to farmers qualifying for payments is being held up by Prairie provinces reluctant to sign onto the deal. The provinces are responsible for covering 40 per cent of the government tab on AgriStability payouts.

CFA is also putting a particular focus is put on the processing sector. Citing a $77 million investment from the federal government to help food processors combat COVID-19, the organization says additional support is needed.

“To secure these critical food infrastructure links in advance of a second wave and the peak harvest season for many Canadian commodities, CFA recommends the next federal budget increase financial support to the food processing sector,” the document says.

“In addition to this support for existing food processors, CFA also recommends that the next federal budget invest in programming to support the development of more food processing facilities across Canada.”

CFA is also asking Agriculture and Agri-Food Canada (AAFC) “to reallocate underutilized AgriMarketing program dollars to implement a Buy Canadian campaign for Canadian retail channels, and engage exporters to identify and address key export opportunities.”

The 2020-21 spending estimates from the federal government show $20.3 million was transferred to partners through AgriMarketing programs, while talk of an Ottawa-led “Buy Canadian” campaign has floated around since at least 2019.

That year, the Liberals committed $25 million over five years to “develop a national approach to better connect Canadians with and instill pride in Canada’s food system and its agriculture, food and seafood products.”

In January 2020, AAFC put out a tender seeking a marketing firm to launch a “social marketing campaign to better connect Canadians with, and instil pride in, Canada’s food system and its agriculture, food and seafood products.”

The tender said an annual media buy budget between an estimated $1.5 million and $4 million would be available.

By June, Bibeau was saying the promotional campaign would “have to wait a bit longer” before being launched. At the time, concerns were being raised within her department over the timing of that program, and on which commodities it would focus.

On Jan. 15, the federal government awarded a $113,000 contract to Markham, Ont.-based digital ad agency Feast Interactive for the Buy Canadian campaign, but a timeline for its launch remains unclear.

CFA’s budget wish list also includes a call for better leveraging of agriculture’s environmental contributions. It asks the government to create programs allowing “producers to generate credits for agricultural activities under both the federal Greenhouse Gas Offset System and Clean Fuel Standard.”

Building resilience into Canada’s food system through a $3 million investment is another ask of CFA. They propose the dollars be used to reduce job vacancies “through career promotion, improve skills training opportunities for workers, support human resource management training/certification, and support commercialization of labour-saving technologies.”

The CFA is also requesting the federal government reinforce a $50 million fund targeted at reducing food waste.

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

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Agriculture Minister Marie-Claude Bibeau, speaking Tuesday to Saskatchewan crop organizations’ virtual CropSphere conference, announced the feds’ current Canada Grain Act review has entered its consultation stage, running until April 30.

The government said it wants feedback from grain industry stakeholders on “ways to potentially update the legislation.”

Both the Canada Grain Act and its main regulatory body, the Canadian Grain Commission, were “established at a time when the Canadian grain sector looked much different than it does today,” the government said in its discussion document.

“The way grain is bought, sold, delivered and handled at facilities has changed significantly, as have buyers’ demands for grain quality… (and) it is possible that some modernization is required to ensure the system is better aligned with current and future market realities.”

Apart from some “targeted” changes, the government said, the last “comprehensive” amendments to the Act came in 1971, since which time several reforms have been proposed.

Also, the feds noted, the CGC has been working on a “grain grading modernization initiative” since 2017, “to ensure that, where possible, grain grading is continually evaluated using more scientifically-based, effective, precise and user-friendly tools.”

“The marketplace for grain has greatly evolved over the past half century, and now is the time for the Canada Grain Act to reflect that evolution,” Winnipeg MP Jim Carr, who was named Tuesday as the federal cabinet’s special representative for the Prairies, said in Bibeau’s release.

“I encourage all those with a stake in Canada’s grain industry to make their voices heard as part of this consultation.”

The consultations’ discussion document flags issues the government said “may be of particular interest” to the sector, such as:

• binding determination, which is meant to be an “independent dispute resolution mechanism” when a grower and buyer disagree on a grain’s grade or level of dockage;
• producer payment protection, the CGC-led program “to help ensure producers are protected against a buyer’s failure to pay for grain, in a cost-effective manner that fairly allocates risk;”
• the CGC’s licensing system for elevators and grain dealers, meant to maintain Canada’s grain quality assurance system, serve as a safeguard for producers and allow for collection of grain data; and
• Canada’s system of inspection, weighing and certification of grain for export.

In those cases, the government asks in its discussion documents if there are ways in which those systems and programs “could better meet the sector’s needs.”

The list of flagged issues is “not a comprehensive list of Canadian Grain Commission functions,” the government said, but is meant to highlight “practical areas that may be of interest to stakeholders.”

In the past decade alone, the government said, Canadian grain production has risen from 69 million tonnes in 2010 to 93 million in 2020, and exports from CGC-licensed elevators rose from 30.8 million tonnes in 2009-10 to 44.3 million in 2019-20.

The grains sector has also made “significant infrastructure investments” in recent years, such as in rail and port infrastructure, and has also boosted the Prairies’ primary elevator storage capacity.

“Structural changes have also affected the sector, such as reforms in wheat and barley marketing,” the government said.

Also, “technological advancements and evolving grain buyer demands also continue to shape the sector and its capacity as one of the world’s leading exporters of grain.” — Glacier FarmMedia Network

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“Deepening trade ties with Indonesia would benefit Canadian businesses of all sizes and lead to economic growth and prosperity for years to come,” International Trade Minister Mary Ng said in a statement Monday.

Such a pact would benefit importers and exporters by improving market access to the world’s fourth most populous country, according to Global Affairs Canada.

Trade deals between Canada and some nations in the region are already in place, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) between Canada and 10 other countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Indonesia’s developing economy has advanced significantly in the last decade, but is believed to still have growth potential led by a growing middle class. Among countries in Southeast Asia, Indonesia already boasts the largest economy.

It is also the largest export market in the Association of Southeast Asian Nations (ASEAN), a block of 10 member states, including the Philippines and Thailand. CPTPP members Brunei, Singapore and Vietnam also belong to ASEAN.

Canada and Indonesia are signees on a handful of general World Trade Organization (WTO) agreements, but currently have no bilateral trade pact. The two signed a memorandum of understanding on trade last August.

According to a release from the Indonesian embassy, the MOU was to “facilitate co-operation in the field of export development activities for Indonesia, focusing on support of Indonesian export promotion activities that includes trade in products and services particularly for women-owned or led SMEs (small and medium enterprises).

“The signing of the agreement is also a form of continuous efforts by Indonesia and Canada in finding ways to boost bilateral trade relations between the two countries.”

At the time, Indonesia’s ambassador to Canada said he hoped the two nations would find co-operation on a bilateral free trade pact or a regional one involving ASEAN.

Exploratory talks for a possible Canada-ASEAN trade deal started in 2017, offering some insight into the benefits and challenges of a deal with just Indonesia.

Ag opportunities

Face-to-face meetings between Canada and ASEAN members continued over the next few years and in 2018, Ottawa held public consultations on a potential pact.

Of the 49 submissions in that consultation, 20 were from agricultural stakeholders.

According to the government, stakeholders overall expressed support for a free trade deal and highlighted “existing barriers for Canadian firms, including high tariffs, sanitary and phytosanitary issues and non-tariff barriers” could be addressed.

“The government heard that there are significant opportunities for Canadian agricultural products in the ASEAN market, and that a possible FTA would level the playing field in ASEAN with Canada’s regional competitors, especially Australia” which already enjoys preferential tariff rates through its own FTA with ASEAN, a summary of the consultations said.

“Many agriculture stakeholders also suggested that Canada’s long-term goal should be to encourage ASEAN members to join the CPTPP.”

The strongest support came from export-oriented sectors, notably beef, canola, pork and grains.

According to the government, “a small number of stakeholders, especially from the supply-managed agricultural sectors” were skeptical of the benefits of a deal.

“Contributors indicated that support for an agreement would depend on outcomes that provide a carve-out for supply managed goods,” the summary said.

Ng and counterparts from ASEAN member states met virtually last August. In a joint statement following the discussion, the countries supported continued efforts toward a trade deal.

Consultation on the merits of a deal between Canada and Indonesia will run until Feb. 23. Those interested in sharing their views can do so by visiting Global Affairs Canada’s website.

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

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Some farmers and seed industry officials suspect Agriculture and Agri-Food Canada’s (AAFC) variety development work, along with many other programs, will be on the chopping block post-COVID-19 as the government tackles its biggest budget deficit since the Second World War.

“We are serious when we say that we believe science and innovation is important and we want to continue investing in that,” Bibeau said during an online session with several CFWF members.

In late 2018 the federal government started consulting with farmers about a seed industry proposal to implement either an end point or trailing royalty to collect additional money from farmers to encourage private and public plant breeders to produce even more improved varieties.

It’s commonly referred to as ‘value creation.’ The argument is that while farmers would pay more for seed, they would also be more profitable.

A lot of farmers oppose both options, saying if they have to pay more they want some control over both how their money is spent and the varieties that spring from it.

The consultations stalled and COVID hit, becoming the government’s main focus.

“The idea (of the consultations) was to find the best approach working closely with the industry, but no way was it the intention to get the government out of these investments,” Bibeau said.

Despite Bibeau’s reassurance, government priorities sometimes change and so do governments.

Publicly developed varieties, including AAFC’s, currently make up most of what SeCan, a not-for-profit seed distribution company, sells.

No entity supports public plant breeding more than SeCan, its business manager for Western Canada, Todd Hyra, said in a recent interview. But he also noted AAFC’s plant breeding funding has been declining for years.

The status quo in plant breeding wasn’t sustainable even before COVID-19, Tyler McCann, interim executive director of the Canadian Seed Trade Association, said in an interview Aug. 11.

Should the government stop or curtail plant breeding, farmers will need private plant breeders to step up, Hyra said.

— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.

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