Thank you, Mr. Chair, and to the committee for the opportunity to speak today.

My name is Allan Melvin. I am the president of the Nova Scotia Federation of Agriculture, but I'm here today representing the Canadian Federation of Agriculture. I'm a sixth-generation vegetable farmer in Kings County, Nova Scotia.

The CFA is Canada's largest general farm organization, representing 190,000 farms across Canada. The CFA's mission is to promote the interests of Canadian agriculture and agri-food producers and ensure the continued development of a viable and vibrant agriculture and agri-food industry in Canada.

The Canadian agriculture and agri-food sector generated $150 billion of Canada's gross domestic product in 2023 and contributes significantly to the well-being of Canadians in both rural and urban Canada. However, like many other sectors, agriculture is facing a chronic and increasing labour and skills shortage. Some producers are facing acute seasonal needs, while others require labour on a year-round basis. These positions range from field work harvesting fruits and vegetables, to piloting highly advanced farm equipment that continues to evolve at a rapid pace.

The most recent statistics from the Canadian Agricultural Human Resource Council, which is also known as CAHRC, identified over 98,000 job vacancies in the agriculture sector in 2022, over 28,000 of which went unfilled in Canada's sector by the year's end, costing $3.5 billion in lost revenues.

These unfilled positions remain, despite Canada bringing in over 70,000 temporary foreign workers to fill vacancies in a wide range of agricultural occupations in 2023. The agriculture sector needs the temporary foreign worker program and seasonal agricultural worker program, which account for upwards of 20% of the total employment in the sector. These workers pay into EI, but rarely draw on EI, as oftentimes when employment ends, they head back to their home countries.

There are several factors impacting the growing labour shortage in Canadian agriculture. For example, fewer family farms in Canada can meet their labour needs solely through family labour due to growth in the size of farm operations and demographic pressures, such as an aging workforce. This is increasing the need for non-farm labour. At the end of the day, the lack of available labour to meet the sector's diverse needs, both seasonal and year-round, represents one of the most significant constraints facing the competitiveness and sustainability of Canadian agriculture.

In terms of measures to support the needs of seasonal employment, the Government of Canada should ensure that the employment insurance system does not create disincentives for workers that would prevent employers from retaining skilled workers or undermine the viability of seasonal industries.

Historically, the unique skills required by many agricultural operations place an onus on on-the-job training and other informal educational approaches, such as online education modules produced through CAHRC, workshops held by equipment manufacturers, and other non-traditional educational arrangements. These sector-specific training opportunities have not always been eligible for EI-funded support, despite the crucial role they play in retention during less labour-intensive seasons.

We're concerned that the reduction in funding available under the labour market transfer agreements will make this problem worse, especially in the Atlantic region. For example, given the remote and rural locations of many farm operations, the travel and accommodations needed to participate in in-person activities can be prohibitive for many farm employees.

Finally, it is our view that employers need to maintain oversight and input into the use of any funds generated through payroll deductions. Those deductions need to remain earmarked for initiatives aimed at achieving their stated outcomes.

At the end of the day, we are of the view that the EI program is a critical tool for supporting the temporary income replacement needs of workers. However, we need to ensure that it does not create disincentives to work for seasonal workers, supports the unique training needs of employers in seasonal industries and is used to support programs that benefit the employers and the workers who pay into it.

Thank you for the opportunity to speak today. I would be happy to answer any questions you may have.

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