Question Period Note: Patchwork of U.S. State-Level Agricultural Production Regulations (Related to Animal Welfare)

Q1 – Is the U.S. meeting its international trade obligations with these regulations? Q2 – Will Canada adopt animal welfare standards reflected in these regulations?

R.1 - Government officials are analyzing these regulations and their implementation to ensure that they comply with the U.S.’ obligations under the WTO and CUSMA. R.2 - As evidenced by Canada’s strong Codes of Practice for the Care and Handling of Farm Animals, animal welfare is important in Canada.
Canada’s Codes of Practice do not focus on a single aspect of animal welfare, such as housing, but instead use comprehensive and outcome-based approaches that address farm animal care issues. This includes, but is not limited to, housing, care and handling, transportation and other farm animal husbandry practises.
The Codes are reviewed every five years and revised and updated at least every ten years to remain aligned with current government policies and regulations, industry practices, and scientific research.

• Several U.S. states, most notably California and Massachusetts, have adopted or proposed animal welfare regulations, which focus on minimum space requirements for certain animals and the use of breeding stalls.

• On May 11, 2023, the Supreme Court of the U.S. (SCOTUS) upheld California’s Proposition 12 animal housing law, paving the way for these regulations, and others, to come into force.

• The differing regulations between states, as well as the stringent standards proposed in some cases, are expected to have a negative impact on Canada’s exports of hogs, pork and veal to the U.S. These concerns are also shared by some pork-, veal- and poultry-producing states, as well as U.S. industry groups.

California Proposition 12

• California’s Proposition 12, the Farm Animal Confinement Initiative or Prevention of Cruelty to Farm Animals Act, was passed as a ballot initiative during California’s general election in 2018.

• The final regulations implementing Proposition 12 were published and entered into force on September 1, 2022. Among many provisions, the regulations required covered producers to be certified as Proposition 12-compliant as of this past January 1, 2024.

• The regulation mandates prescriptive space requirements for calves and breeding pigs: 43 sq. ft. of usable floor space for calves and 24 sq. ft for breeding pigs. For breeding pigs, the regulation also mandates specific limitations on the use of breeding stalls (i.e. sow not confined to a stall for more than 6 hours in a 24-hour period or for more than 24 hours in a 30-day period). It also requires that all eggs sold in California come from cage-free hens. The rule exposes companies in California to potential criminal penalties and the threat of civil lawsuits if the space requirements are not met.

• The provisions applying to veal calves and egg-laying hens were not the subject of the SCOTUS court challenges and have been enforced since September 1, 2022. With regards to breeding pigs, enforcement started on July 1, 2023. California regulators allowed non-compliant pork that end users or distributors had on hand as of July 1, 2023, to be sold, transferred, exported or donated in California before the end of 2023. The rule will result in significant additional infrastructure costs and related certification and traceability costs throughout the value chain for products destined for the California market, or destined for the U.S., with the possibility of ending up in California. Negative impacts are also to be expected in the veal industry. Egg supply chains already differentiate between cage-free and conventional eggs. Massachusetts Question 3

• In 2016, Massachusetts voters approved Question 3 - An Act to Prevent Cruelty to Farm Animals. In 2021, the state released the proposed rule to implement the act before a final rule was apparently released in 2022.

• Unlike California, the Massachusetts regulation does not prescribe minimum space requirements for pigs and veal calves but prescribes similar limitations on the use of breeding stalls. The regulation appears to: (1) prohibit in-state farmers from causing any covered animal to be “confined in a cruel manner” and (2) prohibit the sale of covered products derived from covered animals “confined in a cruel manner” within the state, whether this was produced in-state or elsewhere. “Confined in a cruel manner” is being defined as confining “a calf raised for veal or a breeding pig in a manner that prevents the animal from lying down, standing up, fully extending the animal's limbs or turning around freely”. • Information on Massachusetts’ Question 3 has been limited, with little formal guidance from official sources, which is a challenge for industry.

Canada’s Codes of Practice for the Care and Handling of Farm Animals

• Canada’s Codes of Practice provide comprehensive guidance for the care and handling of farm animals. The Codes serve as our national understanding of animal care requirements and recommended practices.
• Canada’s Code development process is led by the National Farm Animal Care Council (NFACC). Key components of the process are:
o the inclusion of scientific committees to review research on priority welfare issues;
o ownership of the individual Codes by the relevant stakeholders through their active participation in developing the Code;
o measurable components to facilitate the development of assessment programs; and
o a transparent process.

• The Codes of Practice are intended to promote sound management and welfare practices through recommendations and requirements for housing, care, transportation, processing and other animal husbandry practices. The Codes serve as educational tool, reference material for regulations, and the foundation for animal care assessment programs.
• The development of new Codes and revisions follow specific steps that are designed to make the process transparent, collaborative, science and consensus-based, and participatory.
• Broad representation and expertise on each Code Development Committee ensures collaborative Code development. The Code development process fosters relationships and understanding amongst all partners involved in farmed animal care. • Stakeholder commitment is key to ensure quality animal care standards are established and implemented. Stakeholders include farmers/producers, transporters, veterinarians, animal welfare and enforcement agencies, retail and food service organizations, processors, governments and researchers.

• Canada is concerned about the patchwork of State-level regulations in the United States that are related to agricultural production practices, and which can have a negative impact on cross-border trade and supply chains.
• We are also concerned about the proliferation of different regulations across U.S. states that prescribe, or limit, farming practices in the production of food – making it difficult for farmers to export safe, high-quality food products to the United States.
• Canada is a strong advocate for proper care and handling of farm animals, but California’s Proposition 12, and Question 3 in Massachusetts, do not appear to take a scientifically informed or whole-of-operation approach to advancing such objectives.
• Canada continues to engage with U.S. states and federal officials to seek clarification on the measures and to ensure they are implemented and enforced in a way that is compliant with U.S. international trade obligations.
• Canada and the U.S. enjoy one of the largest bilateral agricultural trading relationships in the world, creating jobs and economic opportunities in both countries. The Government of Canada remains concerned about any measure that may disrupt Canada-U.S. agricultural trade.