Canada's agricultural manufacturing sector is innovative and resilient. Our sector produces the highest quality and most sought-out equipment in the world.

AMC's 250 member companies export more than $2.3 billion annually in agricultural implements to 154 countries including

• The U.S.
• Australia
• Russia
• China
• Chile
• Germany
• Brazil
• New Zealand

During the COVID-19 crisis, AMC members worked hard to keep their operations viable and retain employees.

Today, as the federal government develops a blueprint for renewed and improved economic achievements in the post-COVID period, AMC's members are focused on moving ahead to promote productivity, competitive development and global sales opportunities. 

Given the importance of doing everything possible to strengthen and expand Canada's innovative economic capacity as we recover and rebuild from the pandemic, it is imperative for the federal government to carefully lay out a set of productive, balanced policies that will help manufacturers redouble their efforts to achieve long-term, sustainable economic growth - both for the domestic and export markets.

Better Access to Export Markets Means Economic Growth

Access to export markets remains an utmost priority to a trade-oriented country like Canada. Navigating shifting global trade currents successfully to expand export opportunities, diversify markets and reduce reciprocal tariffs on the widest possible basis is integral for recovery.

AMC manufacturers are in a strong position to leverage their favourable reputation and expand sales through enhanced access to markets in Europe, South America and parts of Asia to meet Canada's goal to increase agri-food and ag product exports to at least $75 billion by 2025.

Renewing and expanding infrastructure is also a very important tool for strengthening economic activity - both domestically and for exports.

Recommendations

1. Continue pursuing free-trade agreements and diversifying Canada's export markets
2. Ensure Export Development Canada continues and expands its valuable role supporting Canadian companies seeking to break into new markets
3. Move urgently to address intellectual property rules under CUSMA to prevent the risk of our agricultural equipment manufacturers being completely sidelined and financially squeezed by the increasing use of proprietary tools by large equipment manufacturers in the U.S. This is a life-and-death issue for AMC's entrepreneurs.
4. Invest in better infrastructure such as highways, rail facilities and ports to maintain competitiveness and get products to export markets.

Addressing Climate Change and Sustainability in the Ag Manufacturing Sector

For farmers, machinery and equipment represent their second most important asset - after their land. For this reason, preserving the environment - managing and being stewards of the soil, water and air - has always been a part of their lives. In keeping with this responsibility, the agricultural sector is already taking significant steps to meet the objective of producing more with less while at the same time reducing pollution. But more federal support is needed to successfully rise to this important challenge.

Recommendations

1. Increase rebates and available funding support for sustainable upgrades
2. Improve the portion of carbon tax revenues being rebated to SMEs in provinces where the federal carbon tax regime applies.
3. Increase the proportion of funding covered by the federal government under the SME Project Stream of the Climate Action Incentive Fund so that more small and medium-sized manufacturers can apply.
4. Consult widely on the government's plan to ban single-use plastics, including what products should be covered, the timeframe for businesses to adapt and the costs related to packaging changes, including costs from the proposed rules requiring businesses to pay for recovery of plastics once used.
5. Phase in the proposed Clean Fuel Standard to ensure businesses remain solvent in the aftermath of COVID-19.
6. Extend the Capital Cost Allowance deduction on manufacturing equipment to include equipment that will come into use after 2023 and expand the CCA to include a full, immediate deduction for technology investments by manufacturers.

Investing in Workforce Training and Skills Development

Having a skilled workforce is key to recovery and future economic growth. Making gains in this area will require federal government leadership on a combination of measures and initiatives focusing on co-op training, engagement with post-secondary institutions and possible incentives to foster "workforce mobility" and encourage young people to seek careers in agricultural manufacturing.

Recommendations

1. Expand and improve workforce development programs such as the Canadian Training Benefit and its apprenticeship programs promoting skilled trades as a first-choice career
2. Establish a government-business task force to develop a strategy to promote training, labour mobility and job security in our sector.