Response to Proposed 2 Billion Tree Program Joint Venture and Aggregator Concepts
Download the PDF: Canadian-Tree-Nursery-Association-Response-2BTP-Joint-Venture-and-Aggregator-Sessions.pdf
Rob Keen, RPF
rkeen@keenforestryltd.ca
June 21, 2023
416-706-3230
Prepared by the Canadian Tree Nursery Association
Response to Proposed 2 Billion Tree Program Joint Venture and Aggregator Concepts
The following is a compilation of comments and recommendations from Canadian nurseries representing 85 percent of the national tree nursery capacity regarding NRCan’s proposed joint venture and aggregator concepts presented during the May 15 to 17, 2023 consultation sessions.
These nurseries previously met in Ottawa on April 11 and 12, 2023 and created a National Tree Nursery Meeting Final Report outlining challenges and recommendations for improving the implementation of the 2 Billion Tree Program.
2BTP Joint Venture Model Development and Timing
• The program outlines plans to develop a Joint Venture model to support new nursery infrastructure.
• While federal recognition of the nursery sector is positive, the proposed JV model is not seen as sustainable and may threaten long term sector stability.
• The JV model is underdeveloped and many questions remain unanswered. There are concerns that development, applications, approvals and competency assessments will take significant time, causing further delays.
• Existing nurseries stated they can expand production if two conditions are met:
The federal government reduces financial risk for nurseries.
Plantable land becomes available through incentives that encourage landowners to support new forest creation.
• Organisations already delivering aggregation models and holding Contribution Agreements have been told they cannot apply to the new JV model, creating an uneven playing field.
• There are concerns about a significant demand drop after 2031 which may result in excess production capacity and instability.
Recommendations:
• Increase existing greenhouse capacity before building new infrastructure.
• Act quickly on recommendations from the National Tree Nursery Meeting Final Report.
• Do not proceed with the proposed JV model and instead implement the existing recommendations.
Financial Risk
• Nurseries currently take on significant financial risk.
• Aggregators could control money flow to suppliers. If an aggregator fails, nurseries may not receive payment.
• Nurseries are unlikely to accept risk with new or unproven aggregators.
• The JV model could create many small nurseries dependent on 2BTP funding, which may be abandoned after 2031.
Recommendations:
• The federal government must reduce financial risk to nurseries.
• If increased production is required, the government must financially backstop long term contracts.
Land and Labour
• Land availability for meeting planting goals remains uncertain.
• The labour force will likely need to double from 10,000 planters to meet planting targets.
• Labour shortages impact nurseries and planting organisations. Many cannot access migrant workers due to current regulations.
• Some nurseries can access migrant workers, but the process is complicated.
Recommendations:
• Incentivise landowners to convert land to forest.
• Modify immigration regulations to improve access to migrant labour.
Final Recommendations
• The government should revisit the 2BTP goals and shift focus toward increasing long term planting capacity beyond 2031.
• Time is critical for successful program delivery.
• The government must act immediately on the Final Report recommendations.
Signatories
Collin Phillips, PRT, Can
Scot Formaniuk, Coast to Coast Reforestation and Tree Time Services, AB
Jade Dewar and Kevin Wasylenko, Manitoba Metis Federation, MB
Mike Downing, Harrington Tree Nursery, PQ
Henry Yang, K and C Silviculture, BC
Paul Richardson, Pineneedle Farms Inc., ON
Maureen Jacques, Ferguson Tree Nursery, ON
Judi Tetro, Brinkman and Associates, Can
Rob Keen, Forest Recovery Canada, Can
Appendix A
National Tree Nursery Meeting Report
April 11 to 12, 2023
Ottawa
National Tree Nursery Meeting Summary
Situational Analysis
Forest Ontario held discussions after noticing that nurseries had not been contacted about seedling needs for the 2 Billion Tree Program. They identified two concerns:
Significant increases in supply chain capacity are needed to meet the program target of 2 billion new trees by 2031.
Little increased capacity was visible or being planned.
Context
Canada currently produces approximately 600 million seedlings each year to support legally required reforestation. To meet the original 2BTP goals, an additional 200 million seedlings per year would be required. Because of delayed planting, the annual demand has increased to roughly 286 million seedlings which is a 48 percent increase above current production levels.
Executive Summary of Key Observations
A two day meeting was held with nurseries representing 84 percent of national production capacity and NRCan officials. The goal was to identify opportunities and challenges for meeting 2BTP seedling needs.
Participants included representatives from major nurseries and national organisations.
Key Themes and Recommendations
1. Communications
Observations:
• Nurseries felt left out of communication since the program launch.
• Although 175 million seedlings were awarded through Contribution Agreements, most nurseries were never contacted.
• Nurseries require long term planning commitments to meet program goals.
Recommendations:
• Nurseries must be included in long term 2BTP projections.
• Nurseries must be notified when named in a Contribution Agreement.
• Proponents must provide proof of engagement with nurseries before approval.
• Improve information sharing and outreach.
2. Capacity Incentives
Observations:
• Existing nurseries can scale more effectively and efficiently than creating new nurseries.
• Financial risk is significant without long term contracts.
• Government backed contracts or joint commitments could reduce risk.
Recommendations:
• Create funding programs for capital upgrades and mechanisation.
• Support long term supply contracts.
3. Labour Shortages
Observations:
• Labour shortages are already affecting nurseries and planting operations.
• Labour demand is expected to double by 2028.
• Migrant worker access is limited by regulations.
• Skilled technical workers are retiring and hard to replace.
Recommendations:
• Reduce barriers to hiring migrant workers.
• Develop mentoring programs to support knowledge transfer.
4. Long Term Vision
Observations:
• Infrastructure needs one to two years to build and seedlings take one to two years to grow, leaving little time to recover investment before 2031.
• Uncertainty exists about program continuation after 2031.
Recommendations:
• Extend commitments beyond 2031 to support long term capacity.
• Rebuild the 2BTP framework with full supply chain integration.
5. Need for a National Tree Seedling Association
Observations:
• A unified national voice is needed.
• A national association would support communication, recruitment, expertise sharing and advocacy.
• NRCan has expressed interest in financially supporting establishment of such an organisation.
Recommendations:
• Develop a proposal to establish a National Tree Seedling Association.
• NRCan to provide initial funding with the goal of self sufficiency within 3 to 4 years.
Meeting Agenda and Details
The meeting included presentations, updates from attendees, NRCan briefings, discussions on recommendations and an optional nursery tour.
Appendix B
Bridging the Gap – An Analysis of Labour Shortages in the Forestry Sector
Bridging the Gap Executive Summary and related reports
If you'd like, I can also format this into a clean Squarespace blog structure with headings, spacing and a proper intro paragraph.