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Canadian Federal Government Taking Measures to Reduce Impact of COVID-19 on Agriculture

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Canadian Federal Government Taking Measures to Reduce Impact of COVID-19 on Agriculture

On April 13, the Canadian Federal Government announced the distribution of federal funds to assist farms in paying temporary workers. This monetary assistance helps compensate workers during the quarantine.

Canada, especially Western Canada, is grappling with the new reality of the COVID-19 pandemic and its impact on the 2020 growing season. Western Canada accounts for over 80% of farmable land, and the industry is heavily reliant on beef and pork exports, especially to the United States. With production and processing facilities shut down, companies are experiencing complications in distribution, which may have a significant impact on the supply chain in the upcoming months.

Labour shortages are the main issue for most farms, both in the field and in processing facilities. Many enterprises are reliant on migrant farmworkers, who travel seasonally to Canada, primarily from Mexico and Jamaica. With many farms experiencing a delay in worker arrivals and a decrease in the number of workers available, perishable crops are especially susceptible to production issues down the road.

Labour Shortages

Over 60,000 temporary, seasonal workers migrate to Canada annually for employment. Many workers are employed by the same farm year after year, receiving industry-specific training from vegetable production to winemaking. For farmers who rely on this labor, the past few weeks have been incredibly difficult. Especially when dealing with perishable crops, labor shortages can be the deciding factor in a crop’s. For one farmer, a field of asparagus is worth $40,000. But without the necessary labor to harvest, the crop will go to waste.

Labour shortages in Canadian agriculture are especially tricky because there is no natural alternative. Many farmers already express frustration with the system, since the main reason they employ temporary migrant workers is because it is nearly impossible to find Canadians who want the job. Agricultural labor can be incredibly hard work and involves significant training.

Trained employees are familiar with all aspects of the business, including the proper use of equipment, which can be a tricky skill to master. As unemployment rises in response to COVID-19 business shutdowns, it may seem like an obvious solution to employ people on farms. But most people lack the skills necessary, and farmers do not have the time or resources to train them quickly.

New Funding

As a possible solution, the Canadian Federal Government proposed new funding to assist farms struggling with income disruption as a result of the pandemic. However, the effectiveness of the bailout is debatable. Many farmers argue that it is not enough to make a difference. The money is supposed to help pay workers during the shutdown, specifically workers who have recently arrived and are in quarantine.

Because all incoming employees are subject to a two week isolation period, farms are responsible for supplying resources until work can begin. However, migrant worker activists argue that the funds may be misused, allowing farmers to collect the money without providing adequate income for workers. The distribution method may assist farms in the short term, but it is questionable as to how much it will help in the upcoming weeks.

Production Issues

It is still too early to tell the severity of the impact of COVID-19 on Canadian food production. Certain crops, like wheat and soy, are already operated in industrial systems, requiring minimal human contact. However, fruit and vegetable farmers are warning of production issues if they continue to struggle to find workers. Similarly, in the meat industry, beef processing facilities, like Cargill, may struggle to keep up with demand amidst closures.

Before the announcement of new funds for temporary workers, the Canadian Federal Government had initially temporarily banned incoming migrant workers. This decision was quickly reversed due to outcry from Canadian farmers. While the monetary assistance is significant for farm businesses in the short term, more lasting solutions to the labour shortage problem will be required. Without enough workers, Canada is subject to an incredibly volatile market, where production and distribution issues may impact food supply both domestically and internationally.

Next Steps for Canadian Agriculture

The Canadian Federal Government is taking measures to reduce the impact of COVID-19 on agriculture, primarily through the distribution of emergency funds to support farmers during the shutdown. Additional solutions, such as alternative labour resources, are also being considered. However, there has been a mixed response to these efforts.

Some farmers feel like the aid is not enough, while others think that the solutions do not apply to them. Additionally, there has been a growing concern by some activist groups concerning the rights of migrant workers. As the situation unfolds, the role of the Canadian Federal Government will be essential to limiting supply chain disruption and production issues in the next few months.

Read more from Emily Folk

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.  You can read more of my work by clicking this link:   Conservation Folks.

Planet Of The Humans: A Scathing Exposé On The Sacred Renewables Sector

 

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.

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Agriculture

Bill C-282, now in the Senate, risks holding back other economic sectors and further burdening consumers

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From the Frontier Centre for Public Policy

By Sylvain Charlebois

Bill C-282 currently sits in the Canadian Senate and stands on the precipice of becoming law in a matter of weeks. Essentially, this bill seeks to bestow immunity upon supply management from any potential future trade negotiations without offering increased market access to potential trade partners.

In simpler terms, it risks holding all other economic sectors hostage solely to safeguard the interests of a small, privileged group of farmers. This is far from an optimal scenario, and the implications of this bill spell bad news for Canadians.

Supply management, which governs poultry, egg, and dairy production in Canada, has traditionally enabled us to fulfill our domestic needs. Under this system, farmers are allocated government-sanctioned quotas to produce food for the nation. At the same time, high tariffs are imposed on imports of items such as chicken, butter, yogurt, cheese, milk, and eggs. This model has been in place for over five decades, ostensibly to shield family farms from economic volatility.

However, despite the implementation of supply management, Canada has witnessed a comparable decline in the number of farms as the United States, where a national supply management scheme does not exist. Supply management has failed to preserve much of anything beyond enriching select agricultural sectors.

For instance, dairy farmers now possess quotas valued at over $25 billion while concurrently burdening dairy processors with the highest-priced industrial milk in the Western world. Recent data indicates a significant surge in prices at the grocery store, with yogurt prices alone soaring by over 30 percent since December 2023. This escalation is increasingly straining the budgets of many consumers.

It’s evident to those knowledgeable about the situation that the emergence of Bill C-282 should come as no surprise. Proponents of supply management exert considerable influence over politicians across party lines, compelling them to support this bill to safeguard the interests of less than one percent of our economy, much to the ignorance of most Canadians. In the last federal budget, the dairy industry alone received over $300 million in research funds, funds that arguably exceed their actual needs.

While Canada’s agricultural sector accounts for approximately seven percent of our GDP, supply-managed industries represent only a small fraction of that figure. Supply-managed farms represent about five percent of all farms in Canada. Forging trade agreements with key partners such as India, China, and the United Kingdom is imperative not only for sectors like automotive, pharmaceuticals, and biotechnology but for the vast majority of farms in livestock and grains to thrive and contribute to global welfare and prosperity. It is essential to recognize that Canada has much more to offer than merely self-sufficiency in food production.

Over time, the marketing boards overseeing quotas for farmers have amassed significant power and have proven themselves politically aggressive. They vehemently oppose any challenges to the existing system, targeting politicians, academics, and groups advocating for reform or abolition. Despite occasional resistance from MPs and Senators, no major political party has dared to question the disproportionate protection afforded to one sector over others. Strengthening our supply-managed sectors necessitates embracing competition, which can only serve to enhance their resilience and competitiveness.

A recent example of the consequences of protectionism is the United Kingdom’s decision to walk away from trade negotiations with Canada due to disagreements over access to our dairy market. Not only do many Canadians appreciate the quality of British cheese, but increased competition in the dairy section would also help drive prices down, a welcome relief given current economic challenges.

In the past decade, Canada has ratified trade agreements such as CUSMA, CETA, and CPTPP, all of which entailed breaches in our supply management regime. Despite initial concerns from farmers, particularly regarding the impact on poultry, eggs, and dairy, these sectors have fared well. A dairy farm in Ontario recently sold for a staggering $21.5 million in Oxford County. Claims of losses resulting from increased market access are often unfounded, as farmer boards simply adjust quotas when producers exit the industry.

In essence, Bill C-282 represents a misguided initiative driven by farmer boards capitalizing on the ignorance of urban residents and politicians regarding rural realities. Embracing further protectionism will not only harm consumers yearning for more competition at the grocery store but also impede the growth opportunities of various agricultural sectors striving to compete globally and stifle the expansion prospects of non-agricultural sectors seeking increased market access.

Dr. Sylvain Charlebois is senior director of the agri-food analytics lab and a professor in food distribution and policy at Dalhousie University.

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Agriculture

Degrowth: How to Make the World Poorer, Polluted and Miserable

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From StosselTV

Activists have a new goal: “DEgrowth.”

They say “growth is killing us.” They couldn’t be MORE wrong.

“Growth is not killing us. It’s saving us!” says author Johan Norberg. He explains why growth is essential to human progress, especially for poor people. “In poor countries, if you manage to grow by 4% annually over 20 years,” he points out, “that reduces poverty in that country on average by 80%.

But DEgrowth activists insist that growth means “climate chaos.” They say a smaller economy would be “sweeter.” They say “We must urgently dismantle capitalism!” It’s destructive nonsense. This video explains why.

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After 40+ years of reporting, I now understand the importance of limited government and personal freedom.

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Libertarian journalist John Stossel created Stossel TV to explain liberty and free markets to young people.

Prior to Stossel TV he hosted a show on Fox Business and co-anchored ABC’s primetime newsmagazine show, 20/20. Stossel’s economic programs have been adapted into teaching kits by a non-profit organization, “Stossel in the Classroom.” High school teachers in American public schools now use the videos to help educate their students on economics and economic freedom. They are seen by more than 12 million students every year.

Stossel has received 19 Emmy Awards and has been honored five times for excellence in consumer reporting by the National Press Club.

Other honors include the George Polk Award for Outstanding Local Reporting and the George Foster Peabody Award.

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