Beef cattle priorities - FEDERAL ELECTION 2021 CANADIAN CATTLEMEN'S ASSOCIATION - The Canadian Cattlemen's Association
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about Canadian Beef Producers QUICK FACTS The Canadian Cattlemen's Association (CCA) represents approximately 60,000 beef farmers and ranchers across Canada. The Canadian beef sector contributes $21.8 billion to gross domestic product at market prices and supports 347,672 full-time equivalent jobs. Approximately 98 per cent of Canadian farms and ranches are family owned and operated and are located in every Canadian province; the average herd size is 69 head of cattle. Canadian beef producers are stewards of over 44 million acres of native and tame grasslands that store at least 1.5 billion tonnes of carbon and annually sequester an additional amount of carbon emissions equivalent to that of 3.6 million cars. While contributing substantially to the Canadian economy, the beef industry only accounts for 2.4 per cent of the country’s total greenhouse gas (GHG) footprint. Canadian beef has one of the lowest GHG footprints per unit of production in the world, roughly half the global average. Through responsible stewardship of Canada’s natural resources, the Canadian beef industry will continue to contribute to the growth of Canada’s green economy. The Canadian beef industry has a unique ability to deliver significant environmental benefits including carbon storage and sequestration, wildlife habitat preservation, food loss and waste avoidance, and flood resiliency. While largely unrecognized, Canada's beef industry is the single largest Canadian protector of the quickly disappearing grassland ecosystem. The beef industry’s goal setting initiative [see Appendix A] encourages even greater improvements and will be discussed on page 4. Canadian beef is a nutritious source of animal protein, a high-quality source of iron and other energizing nutrients. Due to its affordability and cattle’s suitability for the Canadian landscape, beef is a cultural staple in many households across the nation. Now more than ever, beef’s role in achieving food security, conserving the environment and growing Canada's economy is critical. 01
platform priorities As political parties determine their election platforms, CCA welcomes all parties to consider the beef sector's policy priorities both for platform documents and if elected, inclusion in their governing mandate letters. Climate Policy & Nature Based Solutions. Have the beef sector recognized as a key part of the solution in fighting climate change and maintaining biodiversity. Elevate the ability for farmers and ranchers to participate in and benefit from investments in natural climate solutions. Continue to push back against misguided climate policies while advancing the Canadian cattle industry’s tremendous environmental record. Trade and Market Access. Increase the capacity and efficiency of beef trade potential. Continue to grow and improve access for Canadian beef in key markets (China, European Union, United Kingdom). Remove remaining BSE-era limits to regain market access. Economic Resiliency. Enhance the economic resiliency and competitiveness of the Canadian beef industry. Ensure the long-term challenges of labour shortages are addressed. Innovation and Research. Invest in strategic research and innovation adoption and uphold the Canadian cattle industry as the global model for sustainable beef production. Animal Health. Strengthen Canada’s ability to respond and proactively address animal health and care and develop stable funding for national animal health surveillance. Rural Communities. Build strong rural communities by investing in broadband internet access, rural mental health programming and in infrastructure and services that make rural Canada an attractive place to live and work. COVID-19 Pandemic recovery During the COVID-19 pandemic, the need for a stable food supply chain was emphasized, with consumers noting shortages in the grocery stores and governments marking agriculture and agri-food an essential service. The Canadian beef industry continued to provide a stable supply of beef to Canadians and to our global trading partners throughout the pandemic. Agriculture, specifically the beef sector, is well positioned to lead Canada’s economic recovery from the COVID-19 pandemic. According to Export Development Canada, from 2008 to 2017 Canada’s agricultural exports grew three times faster than the overall Canadian average, confirming that agricultural products are a net cash generator for Canada’s economy and an area for continued growth. 02
Recommendations Based on our platform priorities for the federal government, CCA recommends the following specific actions: 1. Recognize the beef sector as a key part of the solution in fighting climate change and maintaining biodiversity and consider the beef industry goals (see Appendix A) for future government environmental policies, including conserving grasslands. 2. Support the expansion of CPTPP and broadening market access for Canadian beef offal and over thirty- month beef in numerous Asian markets. 3. Support a full free trade agreement with the United Kingdom, built upon the foundations of CPTPP, which would lead to their natural accession to the agreement. 4. Provide sufficient government resources to enable the timely optimization of current trade agreements similar to what competitors are doing. 5. Ensure competitiveness of Canada’s processing sector through aligning our regulatory environment with the US. Work to ensure Canada has a resilient processing sector that can deal with seasonal surges or any potential interruptions in processing. 6. Make Livestock Price Insurance a permanent risk management program and broaden the program to include cattle producers in Maritime provinces. 7. Make modifications to the Livestock Tax Deferral provision that would better enable producers to self-elect when the tool can be utilized and ensure all cattle are eligible under the deferral provision. 8. Enhance AgriStability by increasing the compensation rate from 70% to 80%; removing, or significantly increasing the current $3 million payment cap; and increasing the payment trigger from 70% to 85%. 9. Increase applied agriculture research funding investments through programs like the Science Clusters that support industry productivity and economic sustainability while advancing key environmental objectives of benefit to both industry and Canada as a whole. 10. Ensure the development of a stable, long term funding framework for national animal health, disease, and antimicrobial surveillance. 11. Establish a Canadian foot-and-mouth disease vaccine bank. 12. Commit essential financial investments in rural infrastructure that includes; irrigation, schools, health care, roads, bridges, expanding rural broadband internet access, and flood mitigation. 03
environment and climate change CCA is well-equipped to act as a valued environmental stakeholder of the federal government, to ensure programs do not unintentionally harm the environment while continuing to contribute to Canada’s economic recovery. Canada is a leader when it comes to sustainable beef production. The Canadian Roundtable for Sustainable Beef (CRSB) was created to advance sustainability within the beef industry and includes a collaborative community of stakeholders. Through CRSB, Canada was the first to create a certified sustainable beef framework that is being used today by smaller direct marketers as well as McDonald’s and Chop Steakhouse. Since Canada’s leadership, other jurisdictions have replicated the CRSB model, demonstrating the need for sustainability in beef but also showcasing the environmental benefits of beef production. In Canada, cattle producers care for 35 million acres of temperate native grasslands. And while it doesn’t often make the headlines, this grassland ecosystem is disappearing faster than the Amazon rainforests. Since the 1970s, we’ve seen a staggering loss of nearly 75 per cent of native grasslands through land conversion. When the grasslands are lost, so are the species that depend on the grasslands for their habitat. There are currently over 60 species at risk in Canada’s native grasslands—species that only exist because of continued beef production on the native grasslands. Beef farmers and ranchers work closely with conservation partners on grassland habitat and biodiversity maintenance and enhancement, to protect the grassland ecosystem. Cattle grazing and the continued presence of livestock on these working landscapes support the conservation of species that depend on native grasslands, like the Greater Sage Grouse, Burrowing Owl and many songbirds. Without beef production, these threatened native grasslands are at risk of conversion and these at-risk species suffer the consequences. CCA’s environmental priorities stem largely from the beef industry goal setting initiative [see Appendix A]. CCA recommends these goals be considered for future government environmental policies, including conserving grasslands. Along with our national partners, the beef industry has committed to safeguard the existing 1.5 billion tonnes of carbon stored on lands cared for by beef farmers and ranchers. We will also sequester an additional 3.4 million tonnes of carbon every year and reduce primary production GHG emission intensity by 33 per cent by 2030. Within climate policy & nature based solutions, CCA recommends: Recognize the beef sector as a key part of the solution in fighting climate change and maintaining biodiversity. Elevate the ability for farmers and ranchers to participate in and benefit from investments in natural climate solutions. Avoid taxes that push food production to other jurisdictions and rather invest in strategic research and innovation adoption. 04
Trade Canada is a world leader in the production of high- quality beef, with 50 per cent of Canadian beef exported into over 58 countries. CCA is pleased with the improved market access that has been attained in recent years through CUSMA, CKFTA and CPTPP. CCA strongly supports the continued expansion of free trade as well as all efforts to maintain and strengthen the World Trade Organization. Asia remains a priority for potential economic growth for beef producers. CCA encourages the expansion of CPTPP and broadening market access for Canadian beef offal and over thirty-month beef in numerous Asian markets. Canada’s higher tariff rate into the South Korean market compared to competitors and current export limitations within the market make Canada-South Korean negotiations a high priority for beef producers. CCA also foresees the U.K., our largest trading partner under CETA, as an integral market for Canadian beef and recommends forging ahead with a full free trade agreement built upon the foundations of CPTPP, which would lead to their natural accession to the agreement. While there is opportunity, current trade challenges must also be addressed. For example the overall Canada-EU beef trade deficit (which includes the U.K.) was $0.5 million in 2018, $17.3 million in 2019 and an astounding $96.8 million for 2020. CCA is significantly concerned with how beef trade with the EU and U.K. has progressed and has recently requested compensation to address the concerning imbalance caused by a number of trade limiting factors. Canada needs to employ sufficient resources to enable the timely optimization of current trade agreements similar to what competitors are doing. Specific to processing capacity, CCA recommends the Government of Canada ensure competitiveness of Canada’s processing sector through aligning our regulatory environment with the US and work to ensure Canada has a resilient processing sector that can deal with seasonal surges or any potential interruptions in processing. 05
Economic resiliency The Canadian beef sector has proven time and time again to be economically resilient. Labour is a significant long term challenge to the agricultural sector's economic resiliency. CCA recommends the new Agri-Food Immigration Pilot be made permanent to achieve its objective of filling labour shortages and prioritizes increasing the skills and labour supply of workers in primary agriculture and agri-food processing. Business risk management (BRM) programs are crucial to managing risk and supporting the beef sector's continued economic resiliency. BRM programs should continue to be funded, particularly as market volatility and extreme weather continues to affect our agricultural environment. Aspects of BRM programs, ranging from program spending, design or availability provide inequitable coverage amongst agriculture sectors and regions. To improve BRM programs CCA recommends making the Livestock Price Insurance (LPI), the forward-looking, market-based, insurance-style program that allows producers to manage price risk, a permanent BRM program and broadening LPI to enable participation by cattle producers in the Maritime provinces. These changes will greatly benefit youth in the cattle industry, who often don’t have equity to fall back on and allow cattle producers across Canada to have access to a price insurance program and grow the industry. CCA recommends modifications to the Livestock Tax Deferral provision be made to better enable producers to self-elect when the tool can be utilized and ensure all cattle are eligible under the deferral provision. This will enable producers to better financially adapt in the cases of drought, flooding or fires as these events often force producers to sell animals such as calves and breeding stock earlier than expected. As a final BRM recommendation, CCA recommends enhancements to AgriStability by implementing the following changes: Increase the compensation rate from 70% to 80%. Remove, or significantly increase the current $3 million payment cap, which discriminates against larger operations. These operations, in most cases, grew because of competitive operating practices. These large operations contribute significantly to rural employment and prosperity. Caps should be removed so that all farm business structures are treated equal and are on a level playing field. Increase the payment trigger from 70% to 85%. With multi-year downturns in production margins during the CAP framework, many producers’ reference margins have significantly eroded and are already at risk of decreased program coverage for an extended period moving forward. 06
innovation and research Research and technology transfer are integral to sustainably increase beef production to meet growing global demand, while also achieving the industry's 2030 goals. Canada’s beef industry has the opportunity, and demonstrated ability, to continually improve productivity and its environmental performance, including reductions in GHG emissions and water use, while maintaining stewardship of air, water and soil resources. Continual innovation within the Canadian beef industry not only benefits producers and the economy but ensures the maintenance of crucial grasslands that contribute to carbon sequestration, biodiversity, and wildlife habitat. To ensure a thriving and sustainable agricultural industry, CCA recommends the Government increase applied agriculture research funding investments through programs like the Science Clusters that support industry productivity and economic sustainability while advancing key environmental objectives of benefit to both industry and Canada as a whole. Ensuring funding for long-term, high risk research is also critical in areas including plant breeding and variety development, genetic improvement, and other areas to take advantage of new opportunities presented by emerging technologies. Strengthening AAFC’s research infrastructure, including AAFC’s federally inspected research abattoir in Lacombe, Alberta, to support pre-commercialization research related to productivity, automation, quality, and food safety is paramount to supporting both export and value-added production objectives. The ability of Canadian agriculture to address the threats posed by animal pathogens, and emerging antimicrobial resistance will have major implications for the short and long-term health of Canadian agriculture, both domestically and internationally. CCA recommends that the government ensure the development of a stable, long-term funding framework for national animal health, disease, and antimicrobial surveillance. 07
animal health CCA fully supports the Animal Health Canada initiative to proactively address the real threat of a foreign animal disease outbreak that would be catastrophic to the Canadian beef industry. Canada’s modelling has shown that a foot-and-mouth disease (FMD) outbreak in highly populated livestock regions would require between 1.9 million and 2.7 million doses of FMD vaccine. Currently, there’s a significant shortfall in available emergency vaccine, and the 14-week vaccine production timeframe to produce a vaccine represents a significant risk to our industry and an estimated $65 billion dollar financial impact to the Canadian economy. Given the establishment of the US FMD Vaccine Bank and the known catastrophic devastation risk of an FMD outbreak in Canada, CCA urges AAFC and CFIA to establish a Canadian FMD Bank of 30 million doses, consisting of 2.5 million doses each of 12 different FMD vaccine concentrates. The projected annual cost is $3.5 million including potency and licensing testing. strong rural communities To access the building blocks of a significant portion of our national economy people must be willing and eager to live and work in Canada’s rural communities. Rural communities struggle to maintain integral rural services and infrastructure due to their small tax base. CCA encourages governments to work together to quickly implement rural broadband as part of a broader suite of rural supports. CCA recommends committing essential financial investments in rural infrastructure that includes; irrigation, schools, health care, roads, bridges, expanding rural broadband internet access, and flood mitigation. Through avenues such as the Canada Infrastructure Bank, these investments will ensure rural Canada remains an attractive place to live and work. A specific example is in Manitoba. Flood events around Lake Manitoba have caused hundreds of millions of dollars in damages and caused extensive socioeconomic and environmental damages. Among those affected are beef producers. In the case of the 2011 and 2014 floods, the Manitoba government made strategic decisions to divert large volumes of water through Lake Manitoba to reduce the risk of catastrophic flooding in Winnipeg and area, compounding flooding on Lake Manitoba. On May 29, 2013 the Manitoba government announced plans to construct a permanent channel to take water from Lake St. Martin. The project will also reduce the likelihood of flooding on both lakes. CCA asks that the federal and provincial governments continue to collaborate to resolve the outstanding concerns in a timely manner so that the Lake Manitoba and Lake St. Martin Outlet Channels Project can proceed. Investments in water- related infrastructure (built and natural) provide many benefits. With effective water-management infrastructure in place, beef producer confidence will be enhanced, encouraging growth and investments. 08
contact CCA looks forward to continuing to advance Canada’s economy, working with our industry stakeholders, environmental partners, the federal government, and other stakeholders. Together we can provide both an environmental and economic benefit to Canada by taking care of beef cattle on the landscapes and producing a nutritious protein for Canadians and others around the world. T o l e a r n w h a t s t e p s t h e p o l i t i c a l p a r t i es will take to advance the Canadian beef priorities, CCA w i l l s e n d a su r v e y a n d g a t h e r r e s p o n s es from the various political parties. F o r m o r e i n f o r m a t i o n o r t o s e t u p a m e eting to discuss CCA's policy priorities, please contact: Jennifer Babcock Fawn Jackson Dennis Laycraft Senior Manager, Government Relations Director of Policy and International Affairs Executive Vice-President babcockj@cattle.ca jacksonf@cattle.ca laycraftd@cattle.ca WWW.CATTLE.CA JULY 20, 2021 09
Appendix A: beef industry goals 10
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