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Farmers aren’t the only ones worried about the food supply chain this time

by usiscc
March 29, 2020
in Supply Chain
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Farmers aren’t the only ones worried about the food supply chain this time
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There are nearly 100 million acres of cropland in Canada. It’s an inaccessible figure under normal circumstances, but now more than ever Canadians are developing a heightened awareness of food, food security and the delicate nature of the supply chain on which both depend.

Before COVID-19, I was concerned about the recovery of Canada’s rail system, the canola and soybean markets, and whether or not there would be enough time in spring to harvest what I left on the field last fall and fertilize the required fields before planting this year’s crops.

That has changed. The sector’s concerns now run deeper than any particular farm. The supply chain and markets have become especially vulnerable, following stringent and necessary travel restrictions and other measures intended to curb the spread of COVID-19.

Our border with the U.S. has remained open to essential services and the temporary foreign workers on which many farms rely. These allowances are critical for the health of our nation’s food-production capacity, however, trucker shortages have been reported, and some ships and crew members are having second thoughts about entering some ports.

Canadians will remember the fragility of our supply chain when, back in November, a labour strike halted CN’s rail service for eight days. Then, we were reminded again earlier this year when blockades disrupted the flow of products across Canada.

While assurances have been made that farmers will have enough fertilizer to start their growing seasons, there is uncertainty surrounding supplies for those requiring mid-season application. It’s one thing to be assured. It’s another to have it on-hand. Many farms are unable to store fertilizer, instead relying on efficient and timely deliveries when it’s needed.

Fertilizer Canada is urging the federal government to ensure that the movement of fertilizer in and out of Canada isn’t disrupted.

“The federal government must maintain our national food supply chains and, mirror the actions in the United States of America, draft a list of essential critical infrastructure workers that could be used by federal departments and provincial and territorial governments to make decisions,” said Fertilizer Canada President and CEO Garth Whyte in a press release.

Seed, too, is an immediate need that requires efficient cross-border flow. “Seed is a globally traded agricultural product and the unrestricted national and international movement of seed and related inputs is critical to ensure food security in this time of uncertainty,” read a press release posted on the The Canadian Seed Trade Association’s website.

The stock market has been erratic and on a downward trajectory. There have been some market rallies around soybeans and wheat lately, but some of those hikes have been short-lived.

Last week, Prime Minister Justin Trudeau increased Farm Credit Canada’s borrowing capacity by $5-billion, a safety net that has already been extended to farmers by way of payment deferrals and other financial supports in the hope of minimizing bankruptcies and estate sales while strengthening the nation’s food-producing capacity.

In addition, Agriculture and Agri-Food Minister Marie-Claude Bibeau and others from her office have initiated weekly, if not more frequent, phone consultations with farm groups and industry stakeholders so that the sector is able to communicate its needs to government throughout this crisis.

However, even those whose job descriptions involve analyzing complex systems and offering recommendations based on the results are having a tough time forecasting 2020.

The agricultural sector operates more often than not on the assumption that its needs are being sidelined. COVID-19 presents the sector with a challenge because of its additional uncertainty, but it also presents us with an opportunity to engage the federal government in novel ways.

Trudeau’s government has, for a spell, been jostled out of its mandate to win a majority of seats in the House of Commons and is now forced to focus on the welfare of Canadians.

Ensuring our energy and agriculture sectors have what they need to stay operational and viable during a global crisis should be top-of-mind for Finance Minster Bill Morneau.

In the face of this pandemic, Health Canada would likely be pressured to pay more attention to agricultural policies mentioning food security and nutrition than it otherwise would.

If the agriculture sector wants to come out of this strengthened, united, and considered a critical part of our national identity, it, too, needs to change its mandate. There is space right now for agriculture to lighten its approach and participate positively in a multi-ministerial discussion centred on how it can help ensure the welfare of Canadians.

The agricultural sector should be saying, first and foremost, that we produce food for a world that is now in crisis and we are here to work collaboratively and make good on the feed-the-world/environmental-stewardship narrative we too often use strategically instead of intentionally.

Farmers face uncertainties, but we still have jobs and self-isolation and social-distancing looks different on an acreage. The planting season may be full of unknowns, but making moves despite not knowing what tomorrow will bring is a part of the farming vocation. It’s not an easy part, but it may be the only predictable one.

Financial Post

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