Glacier FarmMedia – As the political thermometer rises, Canadian farmers have concerns about how major agriculture issues will be addressed in the coming election.
Canadians will be at the polls no later than Oct. 20. With recent news of Prime Minister Justin Trudeau’s resignation, it could be significantly sooner than that.
Why it matters: Carbon pricing, recent labour stoppages and international trade top Canadian agriculture’s interests going into the next election cycle.
Tyler McCann, managing director of the Canadian Agri-Food Policy Institute (CAPI), says farmers should manage their expectations on how deeply agriculture will feature.
“I think a lot of people have high hopes for what gets into a platform, and I think that people should go back and look what’s been in past ones and mitigate their expectations for the sector,” he said.
“If there are references to agriculture and food, they’re part of a broader campaign message and direction.”
Agriculture is often an afterthought for the Liberals, he noted, while Conservative policy implications are not always clear either for agriculture.
“If you get into things like … the push to fix the budget and some of the other things that (Conservative leader Pierre) Poilievre is pushing for, what does that actually mean in agriculture context? I don’t know,” he said.
Carbon pricing
Federal carbon pricing is among the top current concerns for Canadian producers, with agriculture citing a lack of green alternatives. It’s also become a main talking point for the opposition Conservatives.
Kyle Larkin, executive director of the Grain Growers of Canada, called it the “number one” issue for Canadian grain farmers.
“Individual grain farmers are paying tens of thousands of dollars on a yearly basis because they’re using natural gas and propane to dry their grain, which is an essential process,” he said.
A carbon price exemption for those fuels is the subject of a private members bill that initially passed the House of Commons, but became mired in the Senate in 2023 and, as of the recent prorogation of Parliament, was back lingering before the House in an amended form.
Canadian Federation of Agriculture President Keith Currie said producers aren’t opposed to doing their public duty by using more eco-friendly methods, but they have been left with no viable alternatives.
“The purpose of the carbon tax was to change habits to a cleaner economy,” Currie said, “But in agriculture, what are our options if we can’t use fossil-based fuels for heating our homes and our livestock facilities, our shops and for powering our equipment and running our grain dryers?” Currie said.
“We’re being penalized… unfairly, without the opportunity to change our habits, because there’s nothing to change to.”
Currie added that industry needs “to have an understanding on how a government, you know, after the next election in particular, is going to handle the border carbon adjustments that are coming down the road for agriculture,” he said.
Capital gains
Several industry stakeholders pointed to changes to the capital gains tax.
Larkin called it the second priority for the industry.
“The Liberals have been very clear that they’re going to keep forging ahead on that,” he said. “The Conservatives have said that they’re going to do a whole review of the tax system, which will include stakeholders like farmers.
“We’re looking forward to getting involved in a process like that because, for us, it’s not just the capital gains tax, it’s the whole suite of taxation that impacts farmers.
He also argued that “97, 98 per cent of our operations are family-owned and operated. That capital gains piece is really key to helping with that succession planning and that transition into the next generation of farmers.
“The other aspect of taxing is a capital cost allowance, and we’re asking for that 100 per cent exemption on the first year for farmers.”
Labour
Agricultural concern over labour issues comes in two flavours: the lack of it, and the disruptive nature of strikes and lockouts.
A string of disputes ranging from meat processing to railways and ports all concerned industry in 2024.
“I think we often think about it in the context of Western grain farmers, but it’s not just that,” McCann said. “It is kind of any part of the sector that relies on transportation to move food, which is really everybody.”
He said labour is one area where agriculture often feels the impacts of larger changes.
Larkin said the next government must address labour issues as soon as possible.
“In no way can Canada continue having major labour disruptions, especially at our railways or at our ports on a monthly or yearly basis,” he said. “That’s what grain farmers have been experiencing.”
“We’ve had nine stoppages in the last six years,” Currie added.
Recent threats to the Temporary Foreign Worker program also have some groups concerned.
Lauren Kennedy, director of public affairs for the Chicken Farmers of Canada, said a reduction of labour in processing could have negative downstream effects on producers.
Rail rules
Interswitching, which allows one railway to operate on another railway’s track for a set distance, is another concern, especially for Western Canadian farmers.
Prairie grain growers are the primary farm stakeholders there, with the two major railways having little overlap. Farm groups argue that leaves their members as captive customers.
“What we’re looking for during the election is a commitment on a permanent, extended interswitching,” Larkin said.
He also hopes to see it expanded to 500 kilometers, “so we capture all grain farmers across the Prairies and also expanded to British Columbia.”
Currie said the CFA is looking for an extension to the 18-month interswitching pilot, which was greenlit in 2023.
“We’d like to see that program extended into maybe a three-year or beyond program,” he said.
Sustainability recognition
Several sources said they would like to see parties recognize the sustainability efforts of the Canadian ag sector.
Larkin referred to Canadian grain farmers as “the most sustainable in the world.”
“We need to recognize them for the advancements that they’ve made through zero-till and through cover cropping and through other means.
“Right now, they’re not necessarily being compensated or even spoken about in a positive light,” he said. “So I think that’s a big thing we’re looking for the election is, let’s start talking the good story that already exists.”
Kennedy also said she would like broader recognition for the positive changes made by Canadian chicken farmers. She said legislation like Bill C-59, which would bring broader greenwashing claim consequences, has the potential to hinder that.
Supply management and trade
The outcome of the recent U.S. election has fast-tracked several issues to the forefront in Canadian politics, particularly relating to trade.
President-elect Donald Trump has threatened Canada with 25 per cent across-the-board tariffs. He has previously said he will renegotiate the Canada-United States-Mexico Agreement (CUSMA).
This could have major consequences for Canadian producers.
“We’re already in a difficult situation,” Larkin said. “The last thing we need is another trade irritant, especially for our largest trading partners.”
McCann said Trump’s approach to the CUSMA renegotiation will set the stage for ag policy decisions over the next two years.
He added that this would create a dynamic where Canadian producers are not able to set their own course; “instead, we’re either reacting or dealing with the transactional issues that are in front of the sector.”
In the chicken sector, Kennedy said continued support for supply management is the most important thing.
Biosecurity
Animal diseases like African swine fever and highly pathogenic avian influenza (HPAI) are among the current disease worries for livestock producers
Kennedy said chicken farmers don’t have enough access to antimicrobials or alternatives like feed additives.
“We continue to advocate to the federal government, and again, the Canadian Food Inspection Agency, just in terms of reducing those administrative fees and cost of entry fees,” she said.
She added that biosecurity and the threat of outbreaks are issues governments should be taking more seriously.
“We just look to the government to continue to invest in CFIA resources when it comes to animal disease outbreaks so that we have that support when need be,” she said.
Broader Issues
Other main campaign issues could spill over to affect producers.
“A lot of our issues aren’t housing, they’re not health care, they’re not kind of that top three or top four up there,” Larkin said. “But a lot of them, when you dig down into them, there are impacts on grain farmers.
“Canada’s economy and profitability, those are issues that grain farmers are dealing (with) on a daily basis.”
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