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On
2 April 2009, the Standing Committee on Agriculture and Agri-Food considered
the matter of the assistance offered to producers affected by the discovery of Potato
Cyst Nematodes (PCN) in Quebec. The Committee also considered the matter of
the protocol to remove regulatory controls for PCN affected fields in Alberta once PCN is no longer detected.
1.
Given that:
- producers
affected by the discovery of PCN in Quebec received approximately $6.6
million in government assistance to compensate for losses in the 2006 crop
year;
- in
the 2007 crop year, special provisions implemented under existing federal
programs (Agri-stability) provided an additional $1.3 million to producers
to cover for their losses;
- infected
land will not be suitable for many decades for potato production and other
high value crops such as tomato, and that farms will therefore need complete
restructuring in order to migrate towards different types of production;
- In
addition to the compensation for revenue losses ($6.6 million in 2006 and
$1.3 million in 2007), the federal and Quebec governments agreed to offer
producers a payment of $5 million to assist in the transition of the 21
affected farms, which brings the total assistance up to $13 million (an
average of $600 000 per farmer);
- the
$5 million proposal is not about compensating farmers for future lost
revenue, but rather a transition payment, which provides affected
producers with all the flexibility needed so that each farm can undertake
the most appropriate transition, depending on its particular situation.
- this
amount of $5 million was calculated using a model based on a three year
transition period as agreed by both levels of governments;
- instead
of the $5 million transition payment, representatives from affected
producers asked for $24 million to assist in the transition; and that
- the
amount of $24 million represents 78% of the estimated costs of a
transition plan calculated using a 10-year transition period;
The
Standing Committee on Agriculture and Agri-food recommends that the federal government
renegotiate with the Government of Québec payment of the requested financial
assistance of $24 million, representing less than 80% of estimated costs of
$30.7 million for a 10-year transition plan.
2.
Given that:
- in
October 2007, two Alberta farms tested positive for PCN, and follow-up
testing has indicated that PCN was not present in any other fields of the
two affected farms;
- the
Canadian Food Inspection Agency (CFIA) implemented strict regulatory measures
on the implicated farms, and placed affected lands under a “Notice of
Prohibition or Restriction of An Activity,” prohibiting potato seed
production and restricting movement on regulated land;
- the
federal and Alberta governments have paid $16 million in compensation for
the losses incurred with the destruction of the 2007 crop;
- after
the completion of intensive soil testing, the CFIA was unable to replicate
a positive reading for PCN in the Alberta fields where the pest was first
detected in 2007;
- these
non duplicated test results have resulted in severe economic hardship not
only for the two implicated farms but for the entire Alberta potato
industry, which was not allowed to export seed potatoes to the United States between October 2007 and January 2009;
- Canada has taken all actions necessary
to comply with the U.S. import requirements for Alberta seed potatoes.
CFIA has increased laboratory analysis and has completed the delimiting
survey and as a result, 37 farmers in Alberta were able to resume export
of seed potatoes to the U.S. in January 2009.
- current
protocols do not have clear guidelines to remove regulatory controls and
allow lands that were identified as positive to return to production;
- the
CFIA negotiated with the United States new guidelines that will allow the
removal of regulatory controls from a field after two negative test
results from separate intensive surveys;
- these
guidelines are now in the hands of the Canadian and U.S. industries for their comments; and that
- current
directives do not allow the time needed for businesses to re-establish
their previous market conditions.
The
Standing Committee on Agriculture and Agri-food recommends that the government keeps
working closely with the United States to finalize and establish as soon as possible clear
protocols for the removal of regulatory restrictions on fields no longer
infected with Potato Cyst Nematode and consequently remove the regulatory
controls on the implicated Alberta fields, in order for farmers to resume
potato production and maintain their business.
The
Standing Committee on Agriculture and Agri-Food also recommends that the government changes the directives in the Agri-stability
program reference margins for those implicated farms whose business has been
adversely affected by CFIA regulations. The affected farms reference margins
will be frozen at 2006 levels for five years while the farm business is given
the opportunity to return to profitability.
3.
Given that:
- in
her December 2008 report, the Auditor General of Canada offered her
opinions on the effectiveness of CFIA in controlling plant pests, notably
that the CFIA faces a number of challenges in assessing the risks posed by
invasive plants, pests and diseases;
- the
Auditor General of Canada told the Committee her report only deals
peripherally with plant health emergencies like nematode and mostly
focuses on efforts to keep invasive species out of Canada.
- CFIA
agreed to the recommendations in the Auditor General’s report, and
reconfirmed its commitment to abiding by these recommendations before the
committee;
The
Standing Committee on Agriculture and Agri-Food recommends that the Canadian
Food Inspection Agency respect its commitments with regards to the
recommendations in the December 2008 Auditor General of Canada report and provide the Committee with its action plan to achieve these objectives.
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