Agriculture and Agri-Food

The House of Commons Agriculture and Agri-Food Committee met to study clause 223 of Bill C-15, which amends the Farm Credit Canada Act to mandate regular legislative reviews of the Crown corporation. Appearing were Minister of Agriculture and Agri-Food Heath MacDonald, Deputy Minister Lawrence Hanson, and Farm Credit Canada (FCC) President and CEO Justine Hendricks, along with FCC executives Darren Baccus and Corinna Mitchell-Beaudin.

Minister MacDonald opened by defending the legislative review requirement for FCC, aligning it with reviews already required for Export Development Canada and the Business Development Bank of Canada, and argued it would ensure FCC can continue supporting farmers amid trade disruptions, extreme weather, and high input costs. He faced sustained criticism from Conservative members over the closure of seven agricultural research centres, with John Barlow and others arguing the cuts undermine science while the department funds programs like the on-farm climate action fund (OFCAF) that the Auditor General found lacked measurable outcomes; the minister countered that deferred maintenance at research facilities has reached nearly $1 billion and that research will continue through consolidation and partnerships with universities. On trade, MacDonald highlighted recent market access wins in China and a planned mission to Mexico, and he committed to speaking with the Minister of Health about granting exemptions for strychnine use to control ground squirrels, a key demand from Prairie producers. He also acknowledged that the Canada Food Inspection Agency's decision to shut down destination inspection services was made without an economic impact analysis from his department, and he promised to table some analysis of the research centre closures.

Deputy Minister Lawrence Hanson confirmed that the first legislative review of FCC would occur within five years of Bill C-15 coming into force, and every 10 years thereafter. He also stated that forage research would continue at sites including Lethbridge, Beaverlodge, Swift Current, Kentville, Normandin, and Agassiz, and that the department had conducted an internal assessment of the research centre closures, which the minister agreed to table.

FCC President and CEO Justine Hendricks emphasized that FCC is internally funded, has tripled its loan book to $63 billion over 15 years, and recently announced a $7-billion investment commitment for the sector by 2030 through a coalition of private investors. She faced pointed questions from Conservative members about $64 million spent on outside consultants, a doubling of the executive team to 45 people, and her past comments admiring Fidel Castro, which she said were a misstatement. On the $40-million loan to Aspire Food, which went bankrupt, Darren Baccus confirmed $15 million was recovered but declined further details due to commercial confidentiality. Hendricks also highlighted new products for young farmers, including a transition loan that reduces interest costs, and the launch of Root AI, a free generative AI assistant for farmers.

FCC Executive Vice-President Darren Baccus stated that the Aspire Food file remains open and that FCC applies rigour and governance to its investments to maximize recovery.

FCC Executive Vice-President of Finance Corinna Mitchell-Beaudin described FCC's governance model, including a human resources committee that oversees CEO performance and board meetings that include in-camera sessions without the CEO. She noted that an independent ethics and compliance officer handles staff complaints and does not report to the CEO.

The committee adopted the clause without amendments.