Thank you, Mr. Chair.

Honourable members, my name is Martin Caron. I am a dairy and grain farmer in Louiseville, in Mauricie, and the general president of the Union des producteurs agricoles, which represents 42,000 farmers in Quebec.

The agriculture sector is important to our economy, generating about 7% of Canada's GDP. However, the decline in the number of farms in Canada is a worrying reality. From 2011 to 2021, Canada lost 8% of its farms. That is nearly 15,856 fewer businesses. This situation is all the more alarming given that only a small proportion of farm businesses have a succession plan. Only 22% of businesses have a succession plan and 8.5% have a written plan. In this context, if we want to maintain the family farm model, it is imperative to reflect on this important issue and encourage the next generation, whether they are a farmer's family members or not.

In a context where the average age of farmers continues to rise, the proportion of farmers aged 55 and over has increased from 48% in 2011 to 61% in 2021. Without adequate transfer preparation, businesses risk being absorbed by larger, more centralized structures.

Maintaining the diversity of agricultural models is critical to ensuring resilient and sustainable food production. Small and medium-sized agricultural businesses play a vital role in the economic, social and environmental balance of our regions. Their disappearance would result in a significant loss of that diversity, standardization of production and an erosion of the economic autonomy of many rural communities. While profitable in the short term, centralization weakens our rural regions and compromises the country's food resilience.

In addition, young people wishing to enter agriculture face significant financial and land barriers. Their ability to acquire land and equipment is limited by high costs and fierce competition with larger, better-funded entities.

In order to encourage the transfer of farms and the integration of new producers, a number of solutions must be put in place. Here are a few proposals to that effect.

First of all, a number of tax rules have been adjusted in recent years to improve the conditions for transferring farm businesses, including the possibility for family succession to finance the parental withdrawal and allow parents to benefit from the lifetime capital gains exemption. However, extended family farms deserve special attention. Tax incentives could facilitate the transfer of these farms, particularly by allowing the transfer of farm assets without tax implications to a nephew or niece who will continue the operation, in order to maintain it in a family setting.

Farm trusts are currently being set up in each of the provinces. This new mechanism secures access to farmland for producers without them having to buy it, leaving the farm trust to acquire the property and lease it back to them in the long term. At the same time, it preserves the agricultural purpose of the land purchased, since the trust does not seek to resell its properties, but aims to continue leasing to young farmers as long as possible. These organizations will have land banks that will help new businesses, thereby contributing to the country's food security. These organizations are registered with the Canada Revenue Agency as charities.

Like education savings plans, similar measures could encourage farmers to save for the transfer of their farms. That would reduce the financial pressure on the buyer, who would have to pay less. The farmer could contribute to a savings plan and the government could match it. However, the government share would only be accessible to the saver if the farm were transferred to a new generation under certain conditions that would ensure the farm remains viable.

We are convinced that these concrete measures would contribute not only to the stability of the agricultural sector, but also to ensuring the viability of our rural regions for decades to come.

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