New regulatory approaches required to unleash the potential of Canadian agriculture

Canadian agriculture is an industry that has been quietly operating under the radar of most Canadians for decades. It feeds and fuels Canadians – and people from 150 other countries around the world – and is responsible for about 7% of Canada’s GDP. It’s a big deal with a low profile.

For the better part of a decade experts have been pointing to the agriculture industry as an area primed for growth. There’s been a steady drumbeat of people and reports calling for Canada to unleash the potential of the Canadian agriculture industry, which would ultimately drive economic growth for the country. But these calls never seemed to get much traction.

Now, through crisis, is an opportunity for action. In the face of existential tariff threats from our largest trading partner, Canada is focusing its efforts squarely on boosting Canadian competitiveness and productivity – and agriculture must be front and centre. A recent report from Farm Credit Canada highlights the role of plant science innovations in driving productivity gains for agriculture, which it said requires fostering an inviting business environment for innovation, integrating regulatory efficiency into economic growth objectives, and making innovation, productivity and competitiveness a top priority.

Part of what is required is a fundamental shift in how Canada approaches regulation. Health and safety will always be of the utmost importance, but we must find the balance between regulating for risk and regulating for growth. And Canada is long overdue for action in this area. Canada ranks among the least favourable economies in terms of administrative and regulatory burden, ranking 32 out of 43 as tracked by the OECD.

The federal pesticide regulator, the Pest Management Regulatory Agency (PMRA), is a prime example of where a significant re-balancing is necessary. The PMRA is responsible for ensuring that pesticides that come to market in Canada do not pose an unacceptable risk to human or environmental health. This, no one would argue, is critical. But the PMRA also has a responsibility to support the success of the Canadian agriculture industry by making sure farmers have timely access to new tools they need to succeed.

Unfortunately, while most of Canada is focused on navigating the economic threat from the U.S., the PMRA is quickly rushing to completion a number of policy proposals that could have devastating impacts on Canadian farmers and businesses. While the Canadian government and business leaders alike are focusing on reducing red tape to drive innovation and growth here at home, the PMRA is moving ahead at full speed to add unjustified hurdles and costs to industry and growers, further exacerbating the regulatory burden to agriculture.

Back in 2021 the PMRA launched what it called a ‘Transformation Agenda’. The result has been tens of millions of dollars spent and a ballooning departmental headcount, all while the performance of the agency has dropped. These efforts have not resulted in any improvements when it comes to the protection of human health and safety and have only served to add unnecessary regulatory burden to the system, which disincentives innovation.

It is imperative that the Government of Canada immediately pause all transformation-related activities at the PMRA to re-focus its efforts so that it can deliver on its core mandate while also supporting the growth and competitiveness of the sector. As a relatively small market, we cannot afford to have a regulatory system that is more expensive, less predictable and mired in more red tape than our competitors. If we are serious about boosting Canadian competitiveness, we need to make sure our regulatory approaches align with our strategic objectives as a country.