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Pre-Budget Consultations in Advance of the 2025 Budget

Submission to the Standing Committee on Finance

Greg Cherewyk President

Aug 02, 2024

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Pulse Canada is the national association representing growers, traders and processors of Canadian pulses (dry peas, beans, lentils and chickpeas). Our mission is to lead a profitable and sustainable Canadian pulse industry through innovation, efficiencies, and increased value. We are pleased to participate in the Standing Committee on Finance’s pre-budget consultations for 2025. When implemented, the following budgetary recommendations will create the conditions necessary for Canada’s pulse sector to thrive.

Recommendation 1

  • That the Government invest in minor crop breeding and development to ensure farmers have access to cultivars that are resilient to climate change, contribute to sustainable crop rotations, and increase on-farm profitability.

Recommendation 2

  • That the Government permanently increase the Pest Management Regulatory Agency’s (PMRA) baseline funding to ensure the PMRA is adequately resourced to meet their service standards and the needs of stakeholders.

Recommendation 3

  • That the Government increase funding to strengthen Canada’s agricultural trade diplomacy capacity and industry-government collaboration to improve accountability, transparency, trade enforcement and to proactively prevent market access issues from arising in key export markets for Canadian pulses.

Recommendation 4

  • That the Government amend the Canadian Transportation Act to extend the current extended interswitching pilot program for an additional 30 months and increase the distance to 500 km to promote fair competition, reduce transportation costs and increase access for Canadian goods.

Recommendation 5

  • That the Government invest in full adoption of e-phyto certificates to better connect Canada and Canadian ag sector to the world.

Recommendation 6

  • That the Government of Canada provide an immediate budget increase to the Pest Management Centre of Agriculture and Agri-Food Canada to expand its research to provide access to innovative and effective crop protection products for minor use crops.

Minor Crop Breeding and Development

Canadian pulses are an economic and environmental success story. When grown as part of an agronomically responsible crop rotation, pulses lower Canada’s environmental footprint while providing tens of thousands of jobs and billions of dollars in economic output. Cultivation of pulse crops in rotations has benefits at several levels, including (a) on-farm benefits to pulses in rotation, (b) agro-ecosystem benefits at the landscape level, and (c) contributions to national efforts to reduce agricultural green house gas emissions.

Pulses add to the sustainability of crop rotations through reducing carbon footprints, lowering greenhouse gas emissions (GHG) and increasing water use efficiency. They add value to crop rotations through positive influence on following crops. Climate change adaptation and abiotic stress resilience support yield stability along with the expansion of pulse crop areas and crop options. Growers need access to crop varieties that meet these demands to produce a safe, reliable, and consistent supply of Canadian pulses. On-going research to develop varieties that meet these needs is a high priority for the industry. Investments through government programming into varietal development is critical to achieve successful delivery of such varietal options for growers because of the limited funding available for minor crops through other industry sources.

Recommendation 1: That the Government invest in minor crop breeding and development to ensure farmers have access to cultivars that are resilient to climate change, contribute to sustainable crop rotations, and increase on-farm profitability.

Pest Management Regulatory Agency (PMRA)

As the acres dedicated to Canadian pulses increase to meet the global demand for plant-based protein, pulse growers are being asked to produce higher yields while lowering their carbon footprint. To achieve this, access to the latest crop protection products is a must and requires the PMRA to make timely science and risk-based decision making to support the registration of these products.

While work continues towards a transformed PMRA, the current level of baseline funding is not adequate to achieve the stated service standards and the needs of stakeholders. It is critical that budget 2025 allocates increased baseline funding for the PMRA to meet the current needs and future commitments of a renewed PMRA. A properly funded PMRA is good for the Canadian pulse industry, is good for the health of Canadians, and is good for the environment.

Recommendation 2: That the Government permanently increase the Pest Management Regulatory Agency’s (PMRA) baseline funding to ensure the PMRA is adequately resourced to meet their service standards and the needs of stakeholders.

Increased Funding for Trade Enforcement Activities

Increase funding to strengthen Canada’s agricultural trade diplomacy capacity and industry-government collaboration to improve accountability, transparency, trade enforcement and to proactively prevent market access issues from arising in key export markets for Canadian pulses. In an increasingly competitive global market, improved capacity within Canada’s trade and diplomatic network will:

  • Enable the Canadian pulse sector’s market growth and diversification efforts. Defend a rules and science-based trading system globally.
  • Safeguard Canadian reputation as a global leader in the supply of sustainable, high quality agri-food.

The Indo-Pacific represents a significant growth opportunity for Canadian pulses. The Indo-pacific Agriculture and Agri-Food Office (IPAAO), formally opened in February 2024 in the Philippines, to provide a pre-competitive service with the view of proactively preventing non-tariff barriers, or where not possible, act as an in-market resource to address barriers before they impede Canadian agriculture and agri-food exports. Many of the barriers faced are born from a lack of understanding of science, system-based approaches to risk management, and available controls. Long-term funding demonstrates Canada’s commitment to the Region and ensures much-needed continuity of information-sharing and relationships. Above all, it directly supports export growth and the Government’s focus on market diversification by reducing risk and providing market confidence to Canadian exporters.

Recommendation 3: That the Government commit long term funding to the IPAAO to ensure its success and allow it to act as an example for similar initiatives in other regions.

Extended Interswitching

Canada’s pulse industry relies on access to a timely, efficient transportation logistics system. Extended interswitching is a measure which gives shippers who are physically located on a single rail line the ability to seek competing service form the next closest railway within a certain distance. The passing of the extended interswitching measures in Bill C-47 was a win for Canadians and shows what can be done to encourage competition and grow the economy. However, the following can be done to further strengthen this policy and promote fair competition while reducing transportation costs and increase access to Canadian goods:

  • Increasing the extended interswitching distance to 500 km to ensure competitive market forces are available to the entire grain sector.
  • Invest in rural rail infrastructure that can accommodate larger trains to expand the use of interchanges.
  • Extend the pilot program an additional 30 months so that shippers can properly utilize this policy.

Recommendation 4: That the Government amend the Canadian Transportation Act to extend the current extended interswitching pilot program for an additional 30 months and increase the distance to 500 km to promote fair competition, reduce transportation costs and increase access for Canadian goods.

E-phyto Certificates

Canada is lagging its competitors digitally and is increasingly pressured globally to adopt a framework to exchange phytosanitary certificates electronically (E-phytos). E-phytos would replace traditional paper certificates increasing regulatory compliance, reducing transaction costs and time, enhancing trade security and streamlining trade execution. The CFIA has launched MyCFIA and an e-phyto pilot program with the United States. While important, the pilot program focuses on a market and a small group of non-grain commodities. An expeditious conclusion of CFIA’s e-phyto US pilot and a full adoption of E-phyto exchange would ensure Canada remains competitive internationally and upholds its reputation as a reliable, high-quality supplier.

Recommendation 5: That the Government invest in the full adoption of e-phyto certificates and make processes more efficient for the sector so they can focus more of their energy and productivity on what matters – selling product, executing on trade and growing the economy

Pest Management Centre (PMC) of Agriculture and Agri-Food Canada

The PMC provides a vital role in ensuring minor use crops remain a viable option to incorporate in crop rotations by generating research data to support the registration of crop protection products on these important crops. However, PMC’s research capability is limited by a budget that has been frozen for over a decade, resulting in the decline of research projects per year. It is critical that budget 2025 correct this glaring lack of funding to ensure minor use crops have access to innovative and effective crop protection products to remain a viable option and support diverse crop rotations in Canada.

Recommendation 6: That the Government of Canada provide an immediate budget increase to the Pest Management Centre of Agriculture and Agri-Food Canada to expand its research to provide access to innovative and effective crop protection products for minor use crops.

Conclusion

Thank-you once again for the opportunity to provide input into the 2025 federal budget. For any questions, comments, or issues of clarification, please do not hesitate to contact us.

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Pulse Canada is the national association of growers, traders and processors of Canadian pulses, also known as lentils, dry peas, beans and chickpeas. Pulses are an essential part of a healthy and sustainable diet. Pulses and pulse ingredients can help food manufacturers improve the nutritional and functional quality of food products.