ARCHIVED - 2007-2008 DPRs - Details on Transfer Payment Programs

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Agriculture and Agri-Food Canada

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

Advancing Canadian Agriculture and Agri-Food (ACAAF) (Voted)
AgriInvest Kickstart Program (Statutory)
AgriInvest Program (Statutory)
Payments in connection with the Agricultural Marketing Programs Act (Statutory) - Advance Payment Program
Cull Breeding Swine Program (Statutory)
Control of Diseases in the Hog Industry- Circovirus Initiative (Voted) - Phase I - Circovirus Inoculation Strategy
Facilitating the Disposal of Specified Risk Materials (Voted)
Bovine Spongiform Encephalopathy (BSE)/Cull Cow (under the BSE Recovery Program Terms and Conditions - Statutory and Voted)
Canadian Agricultural Income Stabilization (CAIS)/AgriStability & CAIS Inventory Transition Initiative (CITI) (Statutory Programs)
Cover Crop Protection Program (Voted)
Canadian Cattlemen's Association Legacy Fund (Statutory)
Canadian Farm Families Options Program (CFFOP) (Voted)
Cost of Production Benefit (Statutory)
Contributions for Agriculture and Agri-food Sector Assistance - Environment (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)
ontributions for Agriculture and Agri-food Sector Assistance - Food Safety and Food Quality (FSQ) (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)
Contributions for Agriculture and Agri-food Sector Assistance - Science and Innovation (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)
Production Insurance (under the Agricultural Policy Framework-Business Risk Management Terms and Conditions - Statutory Program)
Plum Pox Eradication Program (PPEP) (Voted)
Contributions for Agriculture and Agri-food Sector Assistance - Renewal (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)
Contributions for Agriculture and Agri-food Sector Assistance - International (Canadian Agriculture and Food International) (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)
Contributions in support of Rural Canada and of development in the area of Co-operatives (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)
pring Credit Advance Program (SCAP) and Enhanced Spring Credit Advanced Program (ESCAP) (under the Agricultural Policy Framework (APF) -Business Risk Management Terms and Conditions - Voted & Statutory)

($ millions)

Name of Transfer Payment Program: Advancing Canadian Agriculture and Agri-Food (ACAAF) (Voted)

Start Date: April 1, 2004
End Date:March 31, 2009

Description:The purpose of the ACAAF program is to position Canada's agriculture and agri-food sector at the leading edge to seize new opportunities. It is based on a three-pillar approach, including:
Pillar I: "Industry-Led Solutions to Emerging Issues";
Pillar II: "Capturing Market Opportunities By Advancing Research Results";
Pillar III: "Sharing Information to Advance the Sector".

In July of 2006, the Biofuels Opportunities for Producers Initiative (BOPI), a two-year, $20.0 million initiative under the ACAAF program was launched. It was designed to help farmers and rural communities conduct feasibility studies and develop sound, viable business proposals to create and expand biofuel production capacity involving significant ownership by agricultural producers. BOPI is delivered by the ACAAF regional Industry Councils. BOPI ended in March 2008.

The ACAAF Program was developed as the successor to the Canadian Adaptation and Rural Development (CARD) II Fund.

Strategic Outcome: Innovation for Growth

Results Achieved:
In 2007-08, 376 new projects were approved. Of these, 29 new national projects, 300 new Industry Council regional projects and 47 multi-regional collective outcome projects were funded. The highest increase was in Pillar II projects that increased by 40% over last year. Under BOPI, 36 projects received funding in 2007-08. BOPI was completed in March 2008 with 90% of the funding allocated to projects. Increased efforts on service standards have reduced project review times by 5%.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities Treasury Board approval had not yet been received for the Biofuels Opportunities for Producers Initiative and as such, the Planned Spending does not reflect this funding.

Significant Evaluation Findings and URL to Last Evaluation: An evaluation of ACAAF was started in 2007-08 and will be completed in the fall of 2008.

Significant Audit Findings and URL to Last Audit: No program audits were done and none are planned.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: AgriInvest Kickstart Program (Statutory)

Start Date: October 25, 2007
End Date: March 31, 2009

Description: The $600 million Kickstart payment was a one-time federal initiative to seed AgriInvest accounts until producers can build up a balance in their accounts.

Strategic Outcome: Security of the Food System

Results Achieved:
The objective of AgriInvest Kickstart was to encourage producer participation in AgriInvest. As of March 30, 2008 the total number of letters to producers with calculated benefits was 154,731, number of responses received 75,030, total value of benefits for responses received $254.8 million.

Where Canada delivers: the number of payments to producers was 48,277, total value of payments to producers $180.8 million, total value of deposits to producer accounts $74 million.

Quebec: Number of payments to producers not available, total value of payments to producers $22.8 million, total value of deposits to producer accounts $27.9 million.

Kickstart payments will continue to be delivered into the 2008-09 fiscal year as the application deadline for new participants is April 14, 2008. and the deadline for receiving responses to letters with calculated benefits is June 30, 2008.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities, Treasury Board approval for this program had not yet been received and as such Planned Spending is shown as zero.

Significant Evaluation Findings and URL to Last Evaluation: There are no existing or planned evaluations for this program at this time.

Significant Audit Findings and URL to Last Audit: There are no existing or planned audits for this program at this time.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: AgriInvest Program (Statutory)

Start Date: December 19, 2007
End Date: March 31, 2012

Description: The AgriInvest program is designed to help producers stabilize their farm income on an individual basis by providing the opportunity for them to deposit money annually into their program savings account and receive matching government contributions. AgriInvest replaces the first 15% margin decline (first tier) coverage of CAIS. AgriInvest will play an important role in the new suite of BRM programs by providing producers with less complexity, more predictability and quicker access to program funding for small losses, thereby improving the predictability, bankability and responsiveness of the entire BRM suite.

Strategic Outcome: Security of the Food System

Results Achieved:
Program Grants & Contributions are recognized here in the year that the related economic event occurs (i.e. the 2007 Program/tax year). However, performance results related to delivery of ensuing payments to producers will not be available until the 2008/09 fiscal year, once the 2007 tax/program year is complete and applications are received.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities, Treasury Board approval for this program had not yet been received and as such Planned Spending is shown as zero.

Significant Evaluation Findings and URL to Last Evaluation: There are no existing or planned evaluations for this program at this time.

Significant Audit Findings and URL to Last Audit: There are no existing or planned audits for this program at this time.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Payments in connection with the Agricultural Marketing Programs Act (Statutory) - Advance Payment Program

Start Date: 1997
End Date: On-going under the AMPA legislation

Description: The Advance Payments Program (APP) guarantees provides cash advances to eligible producers (recent amendments to AMPA increased the interest free portion of advances from $0.05 to $0.1 million, and the maximum advance from $0.25 to $0.4 million) to enable them to produce and market their agricultural products when market conditions are most ideal. Amendments now also allow livestock producers the ability to receive an advance under AMPA.

Strategic Outcome: Security of the Food System

Results Achieved:
Legislative amendments on the AMPA were tabled in Parliament in May 2006, and the Enhanced Spring Credit Advance Program was announced as an interim measure. The AMPA received royal assent in June, 2006, and came into force in November, 2006.

On February 28th, 2006 AAFC launched the APP/SCAP Electronic Delivery System allowing producer organizations to submit producer level data electronically. AAFC now has greater access to more accurate reporting of advances and repayments across provinces and producer organizations.

As of April 1st, 2007, the first full production period for the new APP was launched (new APP 2007-08 production period). During the 2007-08 production period, $1.581 billion was advanced to 36,653 producers. The 18 month production period allows for advances and repayments during the first 12 months, and for repayments only during the final 6 months of the production period.

Comment(s) on Variance(s)
Due to the overlap of the old APP program and the New APP, statutory alloment was increased to $138.7M for the 2007-08 fiscal year only. Actual spending for the New APP for fiscal year 2007-08 was less than planned due to the implementation of the New APP program along with old APP still being completed, and we also were offering the interim ESCAP program concurrently. This allowed for 3 different programs in which producers could choose from in order to receive an advance, which were being run concurrently. Uptake for all 3 programs was less than planned, but only due to a 3rd program being offered during the same time period.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation of the new APP program was completed during the 2007-08 fiscal year. As per AMPA legislation, a full evalution is to be completed every 5 years. With the last amendments completed to AMPA during 2007-08, the next evaluation is planned for 2012-13.

Significant Audit Findings and URL to Last Audit:
No audit of the NAPP program was completed during the 2007-08 fiscal year.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Cull Breeding Swine Program (Statutory)

Start Date: March 6, 2008
End Date: March 31, 2012

Description: The purpose of the Cull Breeding Swine Program program is to assist in restructuring the Canadian swine industry by facilitating a reduction of the breeding herd. This $50 million initiative is a grant to the Canadian Pork Council (CPC). The objective is to reduce the national breeding herd size by up to 10% over and above normal annual reductions.

Strategic Outcome: Security of the Food System

Results Achieved:
Financial assistance is provided to the hog industry to assist producers that wish to downsize or exit the industry. $38 million has been transfered to the CPC in 2007-08 for reimbursement of slaughter and disposal costs and payment of $225 per breeding animal. As of June 13, 2008, 477 claims have been received for a total of 105,292 animals.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities, Treasury Board approval for this program had not yet been received and as such Planned Spending is shown as zero.

Significant Evaluation Findings and URL to Last Evaluation: There are no existing or planned evaluations for this program at this time.

Significant Audit Findings and URL to Last Audit: There are no existing or planned audits for this program at this time.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Control of Diseases in the Hog Industry- Circovirus Initiative (Voted) - Phase I - Circovirus Inoculation Strategy

Start Date: September 27, 2007
End Date: March 31, 2009

Description: The Circovirus Inoculation Strategy (CIS) is an Agriculture and Agri-Food Canada (AAFC) initiative aimed at providing assistance in minimizing the overall potential effect of the Porcine Circovirus Associated Diseases (PCVAD) on the Canadian hog herd. AAFC is to provide financial assistance towards the identification and mitigation of the virus.

Strategic Outcome: Security of the Food System

Results Achieved:
The delivery process of this program has now been fully automated in order to provide timely allocation of payments. We have processed over 1000 applications and dispersed over $11.5M to producers to inoculate the hog herd against PCVAD. In collecting the data through the application process, we have been able to map and demonstrate the occurances of CIP in Canada. This will further our ability to administer future swine health initiatives.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities, Treasury Board approval for this program had not yet been received and as such Planned Spending is shown as zero.

Significant Evaluation Findings and URL to Last Evaluation: This program has not been subject to an evaulation, and there is not one planned.

Significant Audit Findings and URL to Last Audit: This program has not been subject to an audit, and there is not one planned.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Facilitating the Disposal of Specified Risk Materials (Voted)

Start Date: December 14, 2006
End Date: March 31, 2009

Description:
The federal government continues to provide BSE related assistance to Canada's cattle industry to support its efforts to recover from the impacts of Bovine Spongiform Encephalopathy (BSE) first discovered in Canada in May 2003. The Canadian Food Inspection Agency has implemented an enhanced feed ban, which is a significant step towards eliminating BSE from the national cattle herd.

This program will help the beef industry mitigate the cost of adapting to the July 12, 2007 enhancements to the feed ban enforced by the Canadian Food Inspection Agency. The enhancements regulate the disposal of specified risk material (SRM) for which adequate disposal infrastructure is required.

Cost-shared federal-provincial programs are in place and offer $127.5 million in financial assistance to the industry (federal: $76.5 million; provincial: $51 million). The program is administered provincially and federal funds are used to support projects that have been approved through the provincial government process.

Strategic Outcome: Security of the Food System

Results Achieved:
As of March 2008, approximately 216 infrastructure project and research iniatives were approved for a total commitment of $91 million to help the beef industry adapt to the enhanced feed ban. Facilities such as federal and provincial abattoirs, SRM rendering plants, research institutions are participating in the program. Further more, various technologies are being explored to seek value added options for SRM.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Main Estimates, Treasury Board approval for this program had not yet been received and as such Planned Spending is shown as zero.

Significant Evaluation Findings and URL to Last Evaluation: This program has not been subject to an evaluation, and there is not one planned.

Significant Audit Findings and URL to Last Audit: This program has not been subject to an audit, and there is not one planned.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Bovine Spongiform Encephalopathy (BSE)/Cull Cow (under the BSE Recovery Program Terms and Conditions - Statutory and Voted)

Start Date:
June 2003
End Date:
March 31, 2008

Description:
Purpose of Transfer Payment Program: The purpose of this program is to deal with the sudden impacts of Bovine Spongiform Encephalopathy (BSE) on the beef industry. The aim of the program was to get the domestic market moving again and to improve returns to producers following border closure to Canadian cattle and beef.

Old programs included the BSE Recovery Program, which ran in 2003-04, and offered several price incentives to help keep the domestic market moving and provided improved returns to feedlots and processors to move product through the chain in light of severely depressed prices caused by the USA border closure;

The Cull Animal Program, which ran in 2003-04, made a payment to producers for each eligible older animal sold for slaughter; and; The Fed Cattle Set-Aside Program, the Feeder Calf Set-Aside Program, and the Managing Older Animals program ran in 2004-05 to 2005-06 and assisted balance animals supply and demand until normal trade patterns resumed and/or slaughter capacity increased.

To assure the future of the industry, additional funding has been provided for marketing assistance, increasing slaughter capacity and enhancing traceability.

Strategic Outcome: Security of the Food System

Results Achieved:
Ruminant Slaughter Loan Loss Reserve Program:
In 2007-08 four projects were approved under the Ruminant Slaughter Loan Loss Reserve Program, for a total commitment of $29.1 million of the $41.7 million available through the program. Of that total, $24.9 million has been disbursed to lending institutions involved with the projects.

Canadian Cattle Identification Agency (CCIA):

In FY 2007-08 the CCIA integrated its old Cattle Tracking System (CTS) with a new internet-based system called the Canadian Livestock Tracking System (CLTS). The system tracks age verification (AV), premises identification and movement and sighting, and allows for new value-added services to be added to further enhance the CCIA's traceability program. Since its release, the CLTS has provided the cattle industry with a reliable and integrated method of information-keeping to re-open and keep international and domestic markets open to Canadian beef exports.

CCIA successfully completed and fully implemented a $3.7 million project - the Canadian Livestock Traceability System (CLTS) and has continued to be recognized, both domestically and internationally, as a multi-species leader in Animal Identification and Traceability. CCIA has reported that the program is industry supported, sustainable and has proven invaluable through the BSE and TB animal health investigations.

Canadian Integrated Traceability Program (CITP):

17 Pilot projects supported animal identification, tracking of animal movements and the tracking of meat products through the food value chain. Communicating the results of these 17 projects by the Recipients to interested public stakeholders was a key aspect of CITP. These projects will help to refine the traceability system for various commodities.

Canadian Livestock Identification Agency (CLIA):

The original mandate of the CLIA was to move forward as the administrator responsible for the development, administration and maintenance of a national traceability system for the livestock sector in Canada. However in the fall of 2007, CLIA changed its strategic direction as follows:
- Redefining CLIA's abiding purpose to provide the leadership that will build consensus across the livestock and poultry sectors specific to industry and government needs associated with individual animal and group identification.
- Establish two distinct divisions: (i) Technical Services that builds on the investment and capability already established by the CCIA that can in turn provide traceability and value added services to other livestock/poultry sectors; (ii) The Industry Forum that facilitates and encourages all livestock/poultry sectors to meet and
form policies specific to emerging traceability requirements (both private and public sector).

The total funding for the CLIA project was $1.1 million, however in light of the mandate changes the amount contributed was $765,000.

Canadian Radio Frequency Identification Reader Program (CRFID):

The objective of CFRID was to subsidize the purchase of radio-frequency identification Readers. These Readers are used to capture tracing and tracking information to facilitate recalls and quarantines in the event of a disease outbreak and reduce the negative economic and health effects associated with an outbreak. Organizations such as slaughter and processing plants, veterinarians, and commercial feedlots working in the cattle and/or bison industry beyond the farm gate were eligible. This program was established in April 2005 and expired in February 2008. Over the life of the program, 460 applicants were reimbursed for a total of $738,162.

Marketing Assistance

In the final year of the Genetics Marketing Program and the Other Ruminants Market Development Program $219,390 supported industry association projects to implement marketing strategies targeting traditional and non-traditional markets.
The Other Ruminants Market Development Program has been very successful for the bison industry. New markets were developed for the bison industry. There is now a need to identify ways to generate more returns from bison carcasses, and to identify production and risk management strategies that will assist in increasing industry returns to encourage investment for the industry to grow.
Hurdles in international market development included obtaining protocol regarding the health requirements of other countries, suitable air transportation to countries of destination and the cost of air freight.
Shipment of goats and rabbits were sent to Trinidad and Tobago in the Fall of 2007. Orders of Boer goats have been received from Antigua, and enquiries for over 100 Boer goats to the Azores were received.
In the final year (2007-08) of the Sustaining the Genetic Quality of Ruminants Program provided $56,926 in support of industry association projects to help maintain Canada's reputation for genetics and the marketability of genetic ruminant products. A number of herds signed up under the New Herd Enrolment Program. An assessment to identify strategies to strengthen business development activities were undertaken under the Harmonization of Classification Program. Preliminary work has been completed on the Electronic Animal OwnerShip Transfer (E-Paper) Program. Marketing and Business Resource staff conducted an analysis to redesign the website.

Comment(s) on Variance(s):
In 2007-2008, it was anticipated that $12.4 million was required to fund various BSE programs. These programs initially were ending in fiscal year 2006-2007, however received a program extension to fiscal year 2007-2008. Approximately $3.4 million was spent. The remaining program authority that was not spent is mainly due to some projects that were to be initially funded through the Ruminant Slaughter Loan Loss Reserve Program did not materialise or were funded through a different program.

Also the reversal of accruals of older BSE Recovery programs in the amount of $9.7 million contributes to the negative spending amount. These accruals were for programs which are complete. Therefore the outstanding estimated accruals are no longer necessary. In addition, provincial compliance audits results concluded that a minor reimbursement to Canada was required in the amount of approximately $220,000.

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation has been completed, but not yet finalized at this time.

Significant Audit Findings and URL to Last Audit:
An audit for the first three phases of the program has been completed, but not yet finalized at this time.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program : Canadian Agricultural Income Stabilization (CAIS)/AgriStability & CAIS Inventory Transition Initiative (CITI) (Statutory Programs)

Start Date: CAIS/AgriStability (April 1, 2003) CITI (May 18, 2006 )
End Date: CAIS/AgriStability (March 31, 2012) CITI (September 30, 2008 )

Description: CAIS was a margin-based program that integrated stabilization and disaster protection into a single program under the previous Agricultural Policy Framework (APF) (2003/04 - 2006/07). The program assisted the producers in protecting their farming operations from small and large drops in income. This was a whole-farm program available to eligible farmers regardless of the commodities they produced. Producers were eligible if they reported farm income or loss to Canada Revenue Agency (CRA), had at least six months of farming activity and completed a production cycle in the program year. Producer margins are based on their eligible income less their eligible expenses for a program year and payments were triggered under the program when a producer’s margin for a program year dropped below their average historical margin for the past five years (less the highest and lowest years).

Repeated producer and industry concerns prompted the government to commit, in the 2006 Speech from the Throne and Budget, to replacing CAIS with more responsive, predictable and bankable programs. As a result, federal-provincial-territorial governments agreed to replace CAIS with a new suite of Business Risk Management (BRM) programs. In December 2007, the government announced the implementation of AgriInvest (income stabilization) which replaces the top tier (first 15% of margin decline) of CAIS and the implementation of AgriStability for the 2007 program delivery year. AgriStability is an improved margin-based program that provides producers with assistance for larger income declines. The program compensates producers when their margin in the program year is more than 15 percent lower than their reference margin from previous years (the second and third tiers of CAIS covering the disaster component of the program). AgriStability includes several enhancements to address industry concerns, including a better method for valuing producer inventories, expansion of the criteria for negative margin coverage to allow deeper coverage for back-to-back disasters and an automatic Targeted Advance Payment for when disasters occur. In addition to these parameter changes, governments have also worked to improve the service delivery of the program by introducing automatic sign-up for previous participants, more flexible deadlines, simplified forms and electronic filing, online calculators, national service standards, and clearer program statements.

Strategic Outcome: Security of the Food System

Results Achieved:
CAIS (2006 Program Year - see note below)
Of the 92.7% of 2006 program year applications processed the estimated out-going accuracy rate is 98.13% as of end of March, 2008.
Federal Delivery: 47,281 complete applications received. Total value of producer payments was $353,875,438 million as of end of March, 2008.
National Delivery: 125,092 complete applications received. Total value of producer payments was $822,655,450 million as of end of March, 2008.
AgriStability 2007 Program Year reporting had not begun as of end of March, 2008.
CITI Program National Delivery: A total of 147,463 producer payments have been paid for all program years. Total value of producer payments was $856.2 million for all program years as of end of March, 2008.
2003 Program Year - Federal Delivery: total value of producer payments was $214.1 million as of end of March, 2008.
2004 Program Year - Federal Delivery: total value of producer payments was $128.6 million as of end of March, 2008.
2005 Program Year - Federal Delivery: total value of producer payments was $59.9 million as of end of March, 2008.

Enhancements have been made to the AgriStability program including a better method for valuing producer inventories (CITI), expansion of the criteria for negative margin coverage to allow deeper coverage for back-to-back disasters and an automatic Targeted Advance Payment for when disasters occur. In addition, work has been done to improve the service delivery of the program by introducing things such as automatic sign-up for previous participants, more flexible deadlines, simplified forms and electronic filing, online calculators, national service standards, and clearer program statements.

Comment(s) on Variance(s)
Year to year G&C payments are directly related to the needs of the agriculture industry as CAIS/AgriStability is demand-driven rather than being funded from a set allocation for each fiscal year. As such, in good years, the program will cost governments less, while in bad years (i.e., years with dropping commodity prices, disasters, etc.) the costs of the program will be higher. The program does, however, include a payment cap of $3 million per participant per program year in order to control costs for governments and prevent larger operations from capturing a large share of program benefits.

Notably, 2007-08 G&C expenditures varied widely from previous years largely due to record market pricing in the Grains and Oilseed sectors during the 2006 program year.

Significant Evaluation Findings and URL to Last Evaluation:
The Chapter Evaluation of the BRM programs was prepared to meet reporting requirements as stipulated in the Implementation Agreement. As the report had no targets, the OAG recommended targets be developed by December 31, 2007. These targets have been developed.

The Office of Audit and Evaluation reached an agreement with the ADM of Programs Branch to delay the CAIS evaluation until 2010. The delay is expected to allow program officials to act on the OAG recommendations and to develop performance information as well as establishing baseline information.

Significant Audit Findings and URL to Last Audit:
The Office of the Auditor General released their report on the CAIS program in May 2007. The report and its findings can be found at:
http://www.oag-bvg.gc.ca/internet/English/aud_parl_oag_200705_e_18289.html

Note: Program Grant & Contribution spending are recognized here in the year that the related economic event occurs (i.e. the 2007 Program/tax year). However, performance results related to delivery of ensuing payments to producers will not be available until the 2008/09 fiscal year, once the 2007 tax/program year is complete and applications are received. Therefore, results achieved are reported for the 2006 Program year.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Cover Crop Protection Program (Voted)

Start Date: June 8, 2006
End Date: March 31, 2011

Description: The Cover Crop Protection Program (CCPP) is a Federal only program aimed at assisting producers whose lands are adversely affected by excess soil moisture and flooding with the added costs of improving and protecting the soil until a commercial crop can be planted. Under this program, a fixed amount per acre is provided to assist in planting and maintaining a cover crop (a crop not intended for commercial sale that stabilizes the soil and helps to limit weeds and environmental degradation). Target clients are producers in the affected areas.

Strategic Outcome: Security of the Food System

Results Achieved:
There were 6,909 payments made to producers who where affected by excess moisture or flooding covering 852,031 acres in 2007/08. Of the 100% of known eligible recipients, those who had not applied were contacted and encouraged to apply which resulted in a participation rate of 95.5% of eligible applicants receiving a payment. Although no workshops/information sessions were held in 2007/08, 100% of eligible applicants received information describing best management practices related to soils with excess moisture or flooding.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities, Treasury Board approval for this program had not yet been received and as such Planned Spending is shown as zero. In terms of the variance between actual spending and authorities, the designated area requirement limited the eligible acres and as a result lowered the overall program expenditures and commitments to $13.2M from the authorities of $22.1M as provided per TB submission. The impact of designated areas was unknown at the time the authorities were obtained. As well, 2007/08 was drier than previous years.

Significant Evaluation Findings and URL to Last Evaluation: Office of Audit and Evaluation is planning to initiate an evaluation of the CCPP in July 2008 for the 2005, 2006 and 2007 program years with completion by December 2008.

Significant Audit findings and URL to last Audit: This program has not been subject to an audit, and there is not one planned.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Canadian Cattlemen's Association Legacy Fund (Statutory)

Start Date: June 27, 2005
End Date: March 31, 2015

Description: The purpose of the Legacy Fund is to support to the Canadian beef sector to develop markets for beef cattle, beef cattle genetics, beef and beef products in a post-BSE environment. A grant totalling $50 million over 10 years will be provided to the Canadian Cattlemen's Association on behalf of the beef sector.

Strategic Outcome: Security of the Food System

Results Achieved:
Industry is struggling to manage the ongoing impact of BSE and simultaneously regain its competive position given the rapid appreciation in the value of the Canadian dollar, increased feed prices and under utilization of packing capacity. Notwithstanding these challenges, Legacy Funds enabled the Beef Information Centre, Canada Beef Export Federation and Canadian Beef Breeds Council to undertake significant market development programs focussed on key Canadian, US and Asian beef markets. In 2007, beef exports totalled $1.2 billion, down slightly from $1.3 billion in 2006. Sales of beef cattle genetics in 2007 were $7.2 million compared to $0 in 2006.

Comment(s) on Variance(s):
In developing the spending profile for the Legacy Fund annual expenditures were estimated by spreading the available funding over the ten year time frame in equal annual increments. However, funds are allocated based on the requirements outlined in an annual business plan which reflects the priorities of the three marketing groups. As such the funds needed in any particular year will vary depending on the marketing program developed in that year. These forecasts are made even more difficult by challenges in predicting when a market might actually open to imports of Candian beef.

Significant Evaluation Findings and URL to Last Evaluation: An interim evaluation is expected to be finalized by August 2008 and a final evaluation will be completed by June 30, 2015.

Significant Audit Findings and URL to Last Audit: An audit has recently been completed by CCA which reported no significant findings. There is currently no URL for this audit.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Canadian Farm Families Options Program (CFFOP) (Voted)

Start Date: June 23, 2006
End Date:March 31, 2010

Description: The Options Program is a two-year pilot program that provides short-term financial assistance to low-income farm families and provides eligible clients with access to farm business assessment and training services that could help them increase their long-term on- and off-farm income opportunities. Income payments are issued to eligible applicants based on information on the 2005 and 2006 tax years. Eligible applicants commit to completing a Renewal activity, either a Farm Business Assessment or Canadian Agricultural Skills Service, or an approved equivalent activity by November 20, 2008.

Strategic Outcome: Innovation for Growth

Results Achieved:
As of March 31, 2008, $205.7 million was distributed to farmers and farm families, including the 2005 program year payments and the initial payments for the 2006 program year. With the final payment for the 2006 program year, the total payments will increase to $221 million for both program years. Of the 15,278 individuals and farm families who received a year 1 options payment, 9,019 of the participants in the first year of the program re-applied for funds in year 2. Approximately 80% of the 2005 Options applicants who received a payment have completed or are in the process of completing business planning and skills development activities. In 2007-08, a total of 9,101 farmers/farm families participated in business planning and skills development. Of these 9,101 farmers/farm families, 5,759 participated in Farm Business Assessment (FBA) and 2,951 in Canadian Agricultural Skills Service (CASS).

Results from Canadian Farm Families Options client feedback forms received between July 1, 2007 and February 28, 2008 show that 73.4% of respondents were satisfied with the payment they received; 48% reported that the payment reduced financial pressures to a great or very great extent; and 88.3% reported that the payment received made it easier to participate in a Renewal program.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities, the amount allocated for CFFOP had not been finalized. On May 31, 2007 changes to the program were approved by Treasury Board. These changes resulted in the original $550.0 million budget being reduced to $304.0 million. Approval was obtained to reprofile the remaining funding to other intiatives.

Significant Evaluation Findings and URL to Last Evaluation:
Findings relating to CFFOP have not been included in the Renewal Chapter Evaluation, as the program had not been in place long enough and there weas insufficient data to provide a basis for evaluating it. The report on the evaluation of the Renewal Chapter will be finalized by October 2008.

There is no summative evaluation of Renewal or the Options program scheduled for completion by March 31, 2008. Between November 2007 and March 2008, two Planning Studies were completion in preparation for future evaluations. Each study addressed selected and diferent Renewal programs. No decision has been taken yet as to when these evaluations will take place, as a new five-year plan is in development and has not yet been approved.

Significant Audit Findings and URL to Last Audit: No Program audit was conducted in 2007-08 and none is planned for 2008-09.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Cost of Production Benefit (Statutory)

Start Date: April 1, 2008
End Date: March 31, 2012

Description: The Cost of Production Direct Payment was intended to partially compensate producers for the decline in incomes experienced over the past four years due to production costs increasing at a faster rate than output prices. The payment was based on a percentage of their historical average net sales of eligible commodities.

Strategic Outcome: Security of the Food System

Results Achieved:
Reduced producers income loss through participation in Business Risk Management programs. As of March 2008:

Applications received was 165,413
Number of zero payments 3,591
Number of payments 160,689
Applications remaining to be processed 1,133

Total value of payments were $343,857,477 not including the $44.4 million transferred to Quebec.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities, Treasury Board approval for this program had not yet been received and as such Planned Spending is shown as zero.

Significant Evaluation Findings and URL to Last Evaluation: There are currently no existing or planned evaluation for this program.

Significant Audit Findings and URL to Last Audit: There are currently no existing or planned audits for this program.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Environment (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extension until March 31, 2009)

Description: The purpose of the Environment programs is to support the adoption of management practices on farms across Canada, which are beneficial to the environment and economically sustainable.

Strategic Outcome: Health of the Environment

Results Achieved:

• EFP - As of March 31, 2008 over 56,700 reviewed Environmental Farm Plans (EFPs)/Equivalent Agri-Environmental Plans (EAEPs) have been completed under the Agricultural Policy Framework (APF). This represents 25% of all farms across Canada and approximately 34% of the agricultural landscape. This is compared with over 45,600 reviewed EFPs/EAEPs completed under the APF as of March 31, 2007.
• NFSP - National Farm Stewardship Program - approximately 35,000 BMP Projects completed as of March 31, 2008.
• Greencover Canada - As of March 31, 2008 approximately 7,000 BMP projects, 572,393 acres converted to long-term perennial cover and 230 technical assistance projects were completed.
• National Water Supply Expansion Program (NWSEP) - Approximately 6,200 Tier 1 projects completed; 240 Tier 2 projects completed; 430 Tier 3 projects completed.
• Agri-Environmental Standards - Developed standards in the areas of water, biodiversity, pesticides and air
• Water Quality Surveillance Program (WQSP) - Conducted pilot studies at several test sites
• Information Gaps in Water Quality and Nutrients (GAPS) Study on Regulations- Funded 11 R&D projects.
• Study on Regulations- Released Phase 1 report in February 2006.
• National Agri-Environmental Health Analysis and Reporting Program (NAHARP)- Released agri-environmental indicator report

Comment(s) on Variance(s)
Initial delays in signing provincial implementation agreements resulted in delays in project start up with consequential impacts on resource requirements. This required on-going reprofiling over the 5 year program which resulted in a significant variance in the final year as projects were completed.

Significant Evaluation Findings and URL to Last Evaluation: An evaluation was conducted of the Environment Chapter in 2007-08 and will be made official in the 2008-09 fiscal year.

Significant Audit Findings and URL to Last Audit: An internal audit of the Greencover Canada program was conducted in 2007-08 and officially signed off on June 10, 2008 by the AAFC Audit committee. This is currently not posted online.

The Office of the Auditor General is conducting an audit of the Environment Chapter Programs. It began in 2007-08 and will continue through to the 2008-09 fiscal year.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Food Safety and Food Quality (FSQ) (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extension until March 31, 2009)

Description:The objective of the program is to assist industry in developing and implementing government-recognized food safety, traceability and quality process control systems throughout the agri-food continuum, in order to:

• protect human health by reducing exposure to food hazards;
• increase consumer confidence in the safety and quality of food produced in Canada;
• increase industry's ability to meet or to exceed market requirements for food safety and food quality; and to
• provide value-added opportunities through the adoption of food safety and food quality systems

Strategic Outcome: Security of the Food System

Results Achieved:
The Canadian Food Safety and Quality Program is made up of three components: 1) Systems Development 2) On-Farm Implementation and 3) Food Safety Initiative.

The Systems Development component has three elements 1) Systems Development (On-Farm & Post-Farm), 2) Traceability and 3) Food Quality.

In 2007-08:

• Under Systems Development: 16 of 19 eligible industry commodity organizations were at various stages of system development. Of those 16 organizations, 12 have completed the first part of a three-part Canadian Food Inspection Agency (CFIA) recognition process; three have completed the second part of the process. In all, four projects worth $186,128 were approved.
• 13 of 28 eligible post-farm organizations participated in CFSQP and have systems at various stages of development. Four projects were approved for a total of $182,982 in funding; and
• Traceability element: three projects were approved for a total of $235,060.
• Food Quality element: one project worth $155,806.67 was approved. A food quality policy is still being developed.

Under the On-Farm Implementation component, seven national commodity organizations offered workshops and technical support directly to producers to assist them to implement Food Safety systems. Three new projects worth $4.42M were approved.

Under the Food Safety Initiative component, PEI joined the initiative bringing the approved funding under this component to $50.4M for the seven provinces involved (BC. AB., SK., MB, ON, NS & PEI). All seven provinces participated in Outreach, Implementation and/or Research & Development (R&D).

As of March 31, 2008, $89.9M (46.8 percent of a total of $190.0M) of Agricultural Policy Framework funding for CFSQP has been approved for projects and $67.0M (74.5 percent of the $89.9M) has been spent.

Comment(s) on Variance(s)
The planned amount for 2007-08 was $71.4M which included $22.8M carried forward from unspent 2006-07 funding as well as $16M reallocated from the Canadian Farm Families Options Program. The initial planned amount in the TB submission for 07-08 was $36.08M. Actual expenditures for the year were $45.9M.

The overall increase in actual expenditure in 2007-08 of $35.4M over 2006-07 included $28M in the Food Safety Initiative component.

Under On-Farm Implementation, seven national organizations increased their spending from $2.2M in 2006-07 to $6.0M in 2007-08, an increase of about 276%, for workshops and technical support (services or equipment purchase) to farmers.

Systems Development (SD) is a 4-phase approach, most organizations developing post-farm food safety systems were at the later stages of developing systems or providing training which are more expensive than the beginning of Systems Development. These post-farm projects expenditures were about $2M (accounting for over 200% of the increase within the SD component) in 2007-08 compared to $0.6M in 2006-07. On the part of the on-farm food safety element, $2.7M expenditure was reported in 2007-08 compared to $1.9M in 2006-07, an increase of about 45% within the on-farm food safety element.

The CFSQP is a demand-driven program, and CFSQP projects typically take place over a 3-6 year period which is the length of time that most organizations typically require to complete development of their food safety or traceability system. Unlike short-term projects (less than 12 months - e.g. pilot projects), spending can often vary significantly from one year to the next, making program forecasting more difficult.

Significant Evaluation Findings and URL to Last Evaluation: According to the FSQ Chapter evaluation for Progress on Results undertaken in 2007, "food safety has remained very relevant and perhaps even more relevant today than at the beginning of the FSQ priority. At the project level, case studies showed that some important achievements and successes were made in individual projects funded by FSQ. But overall, progress in the Chapter was limited and slowed relative to original outcome goals and the emerging market requirements."

Lessons learned from the Evaluation include:

1. FSQ Chapter outcomes were not realistic regarding industry state or readiness and the time required (10-15 years) to achieve objectives;
2. A voluntary approach has limitations because associations do not have a mandate to impose the use of food safety systems by their members and do not cover all commodities;
3. Under APF, some performance indicators proved difficult to measure. Under Growing Forward, AAFC is taking great care to ensure that we identify meaningful measurements with appropriate and viable baseline data;
4. Some national associations lack the necessary capacity to efficiently and effectively implement food safety systems;
5. There is on-going interest in development and implementation of government recognized on-farm and post-farm HACCP-based systems; and
6. Provincial partners commented on the late start of the FSI agreements and the cumbersome AAFC program delivery infrastructure; and the Provincial delivery of the FSI component was efficiently and effectively delivered.

There is currently no URL for this evaluation.

Significant Audit Findings and URL to Last Audit: No Program audit was conducted in 2007-08 and none is planned for 2008-09.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Science and Innovation (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extension until March 31, 2009)

Description: The purpose of the Science and Innovation Transfer Payments Programs (TPP) is to accelerate innovation adoption in agriculture. Science and innovation are the cornerstone of efforts to make the Canadian agriculture and agri-food sector the world leader in food safety, innovation and environmentally responsible production and to support its future success and prosperity. The programs are designed to bring together a full spectrum of organizations to develop ideas that will accelerate the adoption of innovation and the commercialization of products. The three major objectives of the program are; realigning of public science resources; co-ordination along the whole value chain; and the creation of an innovation climate. Advances in agri-food science and technology are accelerating the development of a wide range of new industrial, health and nutritional products obtained from plants, animals and micro organisms.

Strategic Outcome: Innovation for Growth

Results Achieved:

• By the end of 2007-2008, 29 Contribution Agreements were in place for the Broker and Agri-Innovation Programs, as well as 4 Collateral Agreements under the Science and Innovation Division, utilizing the balance of the funds available. A number of "lessons learned" have become visible that will be considered in future programming.
• By the end of 2007-2008, 23 contracts were utilized to support the re-alignment of public science resources in the agri-food sector, coordinate activities along the whole agri-food value chain, create an innovative agri-food business climate as well as to support the development of Broker and Agri-Innovation projects.

Funded sector-led projects to implement alternative value-added strategies for existing commodities and new products and markets

• In 2007-2008 the Science and Innovation programs provided funding which enabled nine commodity associations to develop and implement new value-added strategies/plans to increase profitability for Canadian producers, processors and other members along the value chain. This reflects a significant increase over the 2006-2007 fiscal year in which one strategy was developed and implemented to increase the value of an existing commodity.

Improved collaboration along value chains to identify risks, opportunities and new markets.

• During the 2007-2008 period, Science and Innovation programs funded projects that developed 42 innovation networks, workshops and forums that identified risks, opportunities and new markets to increase profitability of the sector. This is a moderate increase to the approximate 30 collaboration activities held in the 2006-2007 fiscal year.

Funded support for the development and start-up costs for centres of innovation and/or incubators or business mentoring.

• The Science and Innovation programs provided funding to assist the acceleration of the development of commercial success of bio-based businesses, commercialization, formalizing strategic plans and building knowledge networks. 26 business mentoring opportunities with private Canadian companies were initiated that resulted in 6 companies that successfully launched new bio-based products.

Number of domestic and world agri-food research opportunities created.

• 763 new research opportunities were created in 2007-2008 from Science and Innovation Contribution/Collateral Agreements. In 2006-2007, 323 opportunities were created. Funded projects assisted towards achieving increased value for research investments by focusing efforts on industry led opportunities. In addition, funding increased research capacity to exploit Canada's natural advantage in biomass by allowing combined efforts of public and private research to explore new economic opportunities.

Comment(s) on Variance(s)
In the last two years of the Programs (2006-2007 and 2007-2008), unspent funds from other programs were reallocated to support the demand under the Science and Innovation Programs.

Significant Evaluation Findings and URL to Last Evaluation:

• The Science and Innovation Division lacked sufficient human resources, especially early on, to develop a transparent and consistent delivery structure to facilitate streamlined application, selection and approval process and reporting systems.
• The Broker Program was viewed as cutting edge. No other programs like it exist within AAFC and it is favored by the industry.
• The current regulatory framework for submission processes for agri-food products is a major barrier to new bioproducts and bioprocesses market entry and development.
• Innovation is a horizontal issue which cuts across the department and impacts the activities of a significant number of branches.

Note: The Evalutation has not been posted to date

Significant Audit Findings and URL to Last Audit: No audit of the Science and Innovation Transfer Payment Program has been conducted to date.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Production Insurance (under the Agricultural Policy Framework-Business Risk Management Terms and Conditions - Statutory Program)

Start Date: April 1, 2003 for APF-Business Risk Management (BRM)
End Date: March 31, 2008 for APF-Business Risk Management (BRM) funding

Description: The purpose of the program is to seek to stabilize farm income through cushioning the producer against the economic impact of production losses arising from natural hazards like drought, hail, frost and diseases.

Strategic Outcome: Security of the Food System

Results Achieved:
Producer participation in PI has a targeted participation rate of 70% and for forage 50% as measured by a comparison of crops grown to crops insured. For the main crop groups (excluding forage), Manitoba has the highest participation rate at 80% followed by Quebec at 71.2%. The national average was 57.9% which is lower than the target but considered good based on the wide range of uptake across provinces. Quebec has the highest participation rate for forage at 79%, while the other provinces range from 0% to 20% bringing the national average participation rate for the forage programs to approximately 19%. Overall, numerous enhancements were made this year and will continue to be made to the PI program including improvements for forage, horticulture, potato storage, new crops and available coverage levels.

Comment(s) on Variance(s)
The actual expenditures for 2007/08 are higher than what was originally planned due to a rise in grain and oilseed prices which have increased total premium costs. In addition, the overall higher federal cost-share has also contributed to the increase in premium costs.

Significant Evaluation Findings and URL to last Evaluation:
An evaluation that assessed the relevance, implementation, success and cost effectiveness of the PI program from 2003/04 to 2005/06 has been completed. The evaluation recommended the following for each item assessed:

1. Relevance: the federal government continue to support the program
2. Implementation: AAFC work with commodity associations and provincial agencies to improve the flow of information on PI to all producers, particularly regarding recent changes and options that have been introduced;
3. Success: the intent to place livestock insurance under PI be reviewed given the differing basis on which insurance risk is assessed; and
4. Cost effectiveness: The governance model for PI be reviewed in the context of BRM governance systems to ensure future delivery of PI demonstrates more consistency, equity, sharing of information and best practices.

There is currently no URL for this evaluation.

Significant Audit Findings and URL to Last Audience: Management has addressed the recommendations contained in the PI audit finalized in 2004.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Plum Pox Eradication Program (PPEP) (Voted)

Start Date:September 2004
End Date: March 31, 2011

Description: The purpose of this seven-year program (2004-05 to 2010-11) is to eradicate the Plum Pox Virus (PPV) in Canada while ensuring the viability of the industry. This program is a follow-up of the expired three-year program (2001-02 to 2003-04) which showed that the eradication of PPV was possible. 2007-08 was year 4 of the 7-year program. Additional funding for the PPEP program in the amount of $5.811M was approved by Treasury Board in September 2007. This additional funding will be used to continue intensive sampling activites of trees and to compensate producers for the removal of infected trees in the quarantine area. This additional funding has increasing planned contributions for 2007-08 from the original $3.1M to $8.9M.

Strategic Outcome: Security of the Food System/Innovation for Growth

Results Achieved:
2007-08 was year 4 of the 7-year program. Surveillance for the virus continued by sampling trees in the quarantine area. Infected trees and trees in infected blocks that met the removal threshold were removed. Producers were financially assisted for the loss of trees.

Comment(s) on Variance(s)
At the time of preparation of the 2007-08 Report on Plans and Priorities Treasury Board approval had not yet been received for additional funding for this program and as such Planned Spending does not reflect this funding.

Significant Evaluation Findings and URL to Last Evaluation: The PPEP has not been subject to an evaluation, and there is no evaluation planned.

Significant Audit Findings and URL to Last Audit: The PPEP has not been subject to an audit, and there is no audit planned.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Renewal (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extension until March 31, 2009)

Description:Through Renewal programming, AAFC aims to provide producers with the tools and skills they need to make business decisions based on good knowledge. Renewal programming is built on the concept of continuous learning, and is designed to help producers assess their situations and plan for the future during critical transition times. Renewal programs enhance producers' access to information, advice and training, and enable them to pursue on- and off-farm income opportunities.

Strategic Outcome: Innovation for Growth

Results Achieved:
Canadian Agricultural Skills Service (CASS) - Three Renewal indicators were developed to measure the results of Renewal programs. Using baseline data from the 2004 National Renewal Survey (NRS), provincial working groups developed targets for each of the 3 Renewal indicators. The 2007 NRS was used to determine if producers have increased their level of knowledge and use of beneficial management practices, and if targets are being met.

1. The percentage of farmers and farm families who have knowledge and understanding of beneficial business management practices increased from 52% in 2004 to 59% in 2007 (the target was set at 65%).
2. The percentage of farmers and farm families that use beneficial business management tools, services, practices and/or improved skills increased from 66% in 2004 to 69% in 2007 (the target was set at 74%).
3. The percentage of farmers and farm families that are meeting their business and personal goals increased from 37% in 2004 to 41% in 2007 (the target was set at 48%).

In addition, 4,638 applications were received for Canadian Agricultural Skills Service (CASS) in 2007-08 (1,687 renewal applicants and 2,951 Options clients). 80% of CASS respondents to a Client Impact Assessment (CIA) survey conducted in 2007 reported that the skills and/or knowledge they developed through participation in CASS helped them in reaching their most important business goal. In 2007-08, 8,757 producers across Canada applied to participate in the Canadian Farm Business Advisory Service (CFBAS) and Planning and Assessment for Value-Added Enterprise (PAVE). Of those, 8,086 were for Farm Business Assessment (FBA), 643 were for SBPS, and 28 were for PAVE (6,150 of the 8,086 FBA applicants were Options clients). 55% of FBA CIA respondents and 71% of SBPS CIA respondents indicated that the program had been helpful in reaching their most important farm business goal.

Three Renewal indicators were developed to measure the results of Renewal programs. Using baseline data from the 2004 National Renewal Survey (NRS), provincial working groups developed targets for each of the 3 Renewal indicators. The 2007 NRS was used to determine if producers have increased their level of knowledge and use of beneficial business management practices, and if targets are being met.

On average, 70% agreed that these programs were beneficial in increasing understanding of the factors most critical to the success of the enterprise and creating the potential for increased profitability. To help producers acquire the skills they need to adapt to rapid changes in the industry, AAFC continued to work strategically with the agriculture and agri-food sector in 2007-08 to identify the new skills and learning opportunities needed in a knowledge-intensive economy.

Comment(s) on Variance(s)
The actual spending is higher than Planned due to the following:
1) A substantial number of applications received in late 2006-07 and which were paid in 2007-08;
2) Pressure by consultants to complete the work by March 2008 since there was uncertainty as to program availability and funding for fiscal year 2008-09; and
3) APF Renewal receives the majority of its funding as operating funding, and therefore contribution funds is reallocated from other APF initiatives during the fiscal year to meet requirements.

Significant Evaluation Findings and URL to Last Evaluation:
A Renewal chapter evaluation has been completed and a draft report is currently receiving internal review at the Office of Audit and Evaluation. A final evaluation report is expected to be completed by September 31, 2008. The summative evaluation scheduled to be completed by March 31, 2010 is under review; decisions regarding evaluations will be completed once Growing Forward programs have been determined.

Significant Audit Findings and URL to Last Audit: 5 compliance audits were undertaken in 2007/2008, including:

1. The Canadian Agricultural Skills Service under the Canada-Alberta Implementation Agreement. The auditor reported that as at March 31, 2008 the Program is in compliance, in all material respects, with the criteria established in the Agreement. Through the compliance audit it was determined that the Agreement was administered in accordance with the purposes of the CASS program for eligible activities; the Federal-Provincial Working Group was established in accordance with the Agreement and had adequate control and reporting systems to enable them to monitor and track activities and objective; policies and administrative procedures developed were appropriate and operating effectively for the program; roles and responsibilities of the Responsible Officer were clearly defined; performance information was documented; and administrative expenses were in accordance with the Agreement.
2. The delivery of the Canadian Agricultural Skills Service under the Canada-Saskatchewan Implementation Agreement. The auditor reported that as at March 31, 2007, the Program is in compliance, in all material respects, with the criteria established in the Agreement. The auditor reported that the procedures and systems in place and used by the Province’s Responsible Officer were appropriate and well documented; and the procedures used by the delivery agent to ensure that the Colleges applied the terms and conditions of the agreement to their assessment and individual learning plan development assistance appeared to be appropriate, documented and operating properly.
3. The Collateral Agreement for Renewal under the Canada - Alberta Implementation Agreement. The auditor noted that with the exception of non-compliance with section 4.14, 6.1, and A.1 and Article 9 of the agreement, as at March 31, 2007 and for the years ended March 31, 2006 and 2007, the Province of Alberta, as represented by the Minister of Agriculture, Food and Rural Development, is in compliance, in all material respects, with the criteria established by the administrative procedures described in the Agreement. The auditor reported that during the audit they noted adequate internal, financial, and administrative controls exist and meet the needs of the Program. Also, there were adequate controls with respect to the calculation, collection, payment and recording of federal contributions by the Province.
4. The Renewal element of the Agriculture Framework Canada - Quebec Collateral Agreement on the management of Federal-Provincial implementation measures. The auditor reported that as at March 31, 2007, the Province of Quebec is in compliance, in all material respects, with the terms and conditions set out by AAFC. The auditor reported that during the audit they noted that approved expenditures are subject to controls, responsibilities are specified, allocations are adequate and calculations are properly applied for the admissible activities specified in the Agreement; funds are subject to appropriate tracking and verification; the management reporting systems are appropriate for administering the program; Canada and the province appear to share equal visibility on public documents; and administrative expenditures were found to be in compliance with the Agreement.
5. The delivery of the Canadian Agricultural Skills Service in the Canada - Manitoba Implementation Agreement. Draft copies of the audit report and the detailed report for discussion purposes with the project authority are scheduled to be completed by July 18, 2008; and the Final Report to be delivered July 31, 2008.

The compliance audit on the Canadian Agricultural Skills Service under the Canada-Ontario Implementation Agreement is on-going; and compliance audits for CASS-PEI and 4-H have been deferred.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - International (Canadian Agriculture and Food International) (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extension until March 31, 2009)

Description: The purpose of the CAFI program is to provide support to industry to gain and expand international recognition for Canada and enhance market opportunities for Canadian agriculture and food products. The program replaces and improves on AAFC's Agri-Food Trade Program (AFTP).

Strategic Outcome: Security of the Food System/Innovation for Growth

Results Achieved:
In 2007-08, the CAFI Program supported industry initiatives in targeted markets that aim to gain international recognition for Canadian agriculture, agri-food, beverage, and seafood products.

The CAFI program provides funding for industry initiatives designed to increase international sales of Canadian agriculture and food products, by building upon Canada's reputation as a provider of high-quality, safe and innovative agriculture, agri-food, beverage, and seafood products.

For example, in 2007-08, through initiatives funded under the CAFI program:
During 2007 the first major shipments of purebred Canadian cattle, since the discovery of bovine spongiform encephalopathy (BSE) in 2003, were delivered to Russia, which imported more than 5000 head of Canadian cattle. Two further shipments, amounting to 3800 head in total took place during the first half of 2008 and additional orders are under negotiation. Canadian swine exporters are also experiencing success in the Russian market. In 2006, over 2,000 breeding swine were exported to Russia valued at $1.8 million, while 10,447 breeding swine were exported in 2007 with a value of $9.1 million, making Russia the largest off-shore market for Canadian breeding swine in 2006 and 2007.

Pulse Canada efforts to reduce the risks of market access barriers has resulted in the transition to a tariff and quota-free environment, and access of beans to Mexico in January 2008.

Part of the strategy involved working with Mexico's bean sector on areas of mutual interest including research collaboration and increasing demand initiatives. Although continued monitoring of the market access situation is required, Pulse Canada is ready to shift focus to increasing demand initiatives in 2008-2009. The partnerships developed with Mexico industry and government through market access activities have paved the way for transition to take place.

The main objective of the Canadian Special Crops Association export market growth strategy was to create a vibrant business environment that promotes and facilitates export success for Canadian exporters of pulses and special crops. The total export value of mustard seed, sunflower seed, canary seed and buckwheat increased 80% from approximately $147M in 2005 to nearly $264M in 2007.

The Health and Antioxidant Super-fruit message continues to drive the demand for Blueberries and Wild Blueberries around the world, but winter damage and poor weather during pollination resulted in less production than anticipated. The industry will need 50-60 million pounds of Wild Blueberries to fulfill the strong demand worldwide. Processors are receiving excellent returns for their fruit, and this has put them in a stronger position to invest in the growth of the industry.

The Canadian Aquaculture Industry Alliance Long Term International Strategy created the opportunity for industry members to network and gain valuable contacts from all aquaculture and seafood industries within the U.S. and other international markets. Contacts made at a CAFI funded marketing activity led to the selection of Canadian farmed Arctic Char as a sustainably farmed species featured at the Monterrey Bay Aquarium 6th Cooking for Solutions Gala Event.

Increased recognition of Canadian products and capabilities.

AAFC continued to work in 2007-08 to generate greater recognition for Canada by branding its achievements in food safety, traceability, animal health and environmental sustainability to maximize exports and generate greater sales for Canadian agriculture and agri-food products. The CAFI Program assists industry associations in undertaking activities with these objectives.

Canadian Pork International is the export promotion agency for the Canadian pork industry representing producers, processors and trading houses. In 2007, despite challenges, pork exports remain strong. Promotional campaigns, including retail promotions, have nearly doubled the sales of chilled pork over the last few years with a wider distribution in more than 20% of Japanese supermarkets. Chilled pork exports comprise of 30% of all pork exports to Japan along with a 225% growth in the same product to Korea. The launch of a promotional campaign in Singapore contributed towards exports of chilled pork increasing 250% over the previous year and accounting for 7% of exports to Singapore in 2007 versus 2% in 2006.

The CAFI Program is also committed to increasing international recognition of Canada's capabilities an exporter of agriculture, agri-food, and seafood products. To this end, the CAFI Program supported numerous incoming missions of international delegations interested in learning about the superior capabilities of the Canadian industry first-hand. The Canadian Swine Exporters Association considers incoming missions a significant building block in their quest for increasing sales and developing new markets. In 2007 over 300,000 breeding swine were exported to 26 countries.

The challenges the pork sector faced were the increasing competitive export market, the increasing number of non-tariff barriers impacting market access, a strong Canadian dollar making Canadian product more expensive internationally and particularly less competitive versus US pork products, increasing hog cost of production contributing to uncertainty and rationalization in the sector and competitiveness challenges at processing (labour cost and availability, plant scale) contributing to the rationalization in hog processing.

The CAFI program is also committed to increasing international recognition of Canada's capabilities as a net exporter of agriculture, agri-food, and seafood products. To this end, the CAFI program supported numerous incoming missions of international delegations interested in learning about the superior capabilities of the Canadian industry first-hand. The Canadian Swine Exporters Association (CSEA) considers incoming missions a significant building block in their quest for increasing sales and developing new markets. In August 2006 two Chilean veterinary inspectors came to Canada on an incoming mission and inspected approximately 20 farms in four provinces. As a result of the inspections several hundred breeding swine were shipped to Chile.

Comment(s) on Variance(s)
The variance between actual and planned spending for 2007-08 is due in part to the withdrawal / rejection of three proposals primarily due to delays in implementation.

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation was requested in 2006-2007 fiscal year, but could not be accommodated in the evaluation plan. The program is currently drawing on an evaluation from its predecessor program and observations from the evaluation of the APF International Chapter. Industry associations benefits from CAFI Program funding, and this demonstrates a positive impact on their members' export performance.

As a result of close and ongoing consultation, which also take place with industry, numerous adjustments have been made to the Program.

Significant Audit Findings and URL to Last Audit: No audits have been completed and none are planned.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions in support of Rural Canada and of development in the area of Co-operatives (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extension until March 31, 2009)

Description: The purpose of the programs is to carry out plans for Rural and Co-operative development. The programming covers the following three initiatives:

• the renewal and strengthening of the Canadian Rural Partnership, which includes the transfer payments program "Models for Rural Development", and "The Rural Partnership Development Program" (formerly the Networking Initiative), both of which focus on approaches to rural development, and building partnerships.
• the Rural Community Capacity Building Program, which places a focus on tools, services, knowledge, and processes.
• the Co-operatives Development Initiative (CDI) ($12.4 million from 2003-04 to 2007-08). In 2006, additional funding was provided to CDI to provide support for co-op development projects to enable farmers to capture new biofuels and other value-added opportunities - Ag-CDI funding (G&Cs): $3.75 million for 2006-07 to 2008-09.

Strategic Outcome: Innovation for Growth

Results Achieved:
Models for Rural Development -In 2007-2008, the 23 models were able to be replicated in more than 60 sites across rural Canada, involving more than 270 communities. Final Participatory Evaluation reports are being submitted which will serve as the basis for the body of knowledge regarding rural development. Most models completed their projects by March 31, 2008, however certain models and/or sites, due to external factors beyond their control, did not have the opportunity to reach their full potential. Some short term incremental funding in 2008/2009 will allow them to achieve the best results possible. The Networking Initiative provided funding for over 253 projects to rural communities.

Co-operatives Secretariat - In 2007-08, a network of 20 provincial, regional, and sectoral partners delivered the Advisory Services component across the country. At the end of the third quarter, Advisory Services had assisted three new co-operatives to incorporate and provide technical assistance to 76 existing co-operatives in order to cope with internal issues or support business expansion. Under the Innovation and Research component, the Secretariat approved 41 new projects for a total of $1.4 million that addressed the six priorities of the program.

Also, the Agriculture Co-operative Development Initiative (Ag-CDI) was renewed for two years and for 2007-2008 a total of 28 biofuel and value-added co-op projects and other activities to enhance the co-operative sector development capacity were funded for a total value of $1.0 million. In both CDI and Ag-CDI, the expected result to commit 100% of our G & C budget was met. In 2007-2008, all budget for CDI was used. For Ag-CDI, 90.4 % of the budget was spent; the late start of the program (september 2007) explains the variance in results.

Comment(s) on Variance(s):
The variance between Actual and Planned spending is due in part to additional funding received subsequent to the publication of the 2007-2008 RPP, specifically for Ag-CDI. Secondly, due to delays in the development of the Models for Rural Development in 2006-2007, funding was reallocated to other initiatives. This funding was then reallocated back to Rural Development in 2007-2008.

Significant Evaluation Findings and URL to Last Evaluation: The Models for Rural Development Program is still receiving final evaluation reports and is therefore unable to provide any significant findings at this time. Audited financial statements from the proponents are due this year as well, which will faciliate the conclusion of the initiative.

In 2006 the Co-operative Development Initiative in 2006 conducted a mid-term evaluation and found that the program conformed to the mandate and was well received by communities as the demand for assistance exceeded the level of resources. Further information can be found at http://www.agr.gc.ca/info/audit-exam/pdf/cdi_idc_e.pdf or http://www.agr.gc.ca/info/audit-exam/index_e.php?page=cdi_idc

Significant Audit Findings and URL to Last Audit: Models for Rural Development and Networking Initiative: No evaluation is planned at this time; however this may be reconsidered if variances are noted on the submitted audited financial statements.

Co-operatives Secretariat: the CDI and Ag-CDI programs were not part of the Department Audit Plan for 2007-2008 and were not identified in 2008-2009 plan. An internal evaluation at the end of programs will be conducted, but an audit will be performed only if the finding of the evaluation indicates a requirement of further investigation.

Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Spring Credit Advance Program (SCAP) and Enhanced Spring Credit Advanced Program (ESCAP) (under the Agricultural Policy Framework (APF) -Business Risk Management Terms and Conditions - Voted & Statutory)

Start Date: April 1, 2003 For APF-Business Risk Management (BRM)
End Date: 2007-2008 concurrent with the end of the APF

Description:The SCAP program has been in place since 2000. The Spring Credit Advance Program (SCAP) provides producer organizations and their lenders with a repayment guarantee for advances of up to $0.05 million which are issued to producers in the spring. The objective of the program is to assist producers with their spring production input costs.

The ESCAP program was put in place in 2006 as a transitional program to increase the amount of interest free benefit to $0.1 million while amendments were being made to Agricultural Marketing Programs Act (AMPA). The objective of ESCAP is to allow producers to make decisions based on sound production or marketing rationale rather than on the availability of operating cash. Such objectives will contribute to the overarching goal of the APF.

The benefits of ESCAP include:
- Minimizing the distortion of producers' marketing and production decisions; and
- Facilitating short-term cash flow and long-term planning by producers.

Strategic Outcome: Security of the Food System

Results Achieved:
Legislative amendments on the AMPA were tabled in Parliament in May 2006, and the Enhanced Spring Credit Advance Program was announced as an interim measure. The AMPA received royal assent in June, 2006, and came into force in November, 2006.

On February 28th, 2006 AAFC launched the Advance Payments Program (APP)/SCAP Electronic Delivery System allowing producer organizations to submit producer level data electronically. AAFC now has greater access to more accurate reporting of advances and repayments across provinces and producer organizations.

The ESCAP production period ended on September 30th, 2007. The ESCAP was an interim program while legislative changes were made to the AMPA in regards to the APP program. In total, $1.021 billion was advanced under the ESCAP to 29,625 producers. The average advance was $34,494 per producer, with an average interest savings of $915.41 per producer. With this access to capital, and interest savings, the ESCAP achieved it's expected results to provide producers with greater access to credit in the spring to assist with input costs; Improved cash flow; and allow for better farming practices by providing greater access to working capital.

Comment(s) on Variance(s)
Actual cost of ESCAP for 2007-08 was less than planned due to the implementation of the New APP program along with old APP still being completed. This allowed for 3 different programs in which producers could choose from in order to receive an advance, which were being run concurrently. Uptake for all 3 programs was less than planned, but only due to a 3rd program being offered during the same time period.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation of the ESCAP program was completed during the 2007-08 fiscal year. As the ESCAP program is now complete, no evaluation of the program will be pursued in the future.

Significant Audit Findings and URL to Last Audit:
No audit of the ESCAP program was completed during the 2007-08 fiscal year. As the ESCAP program is now complete, no audit of the program will be pursued in the future.

Atlantic Canada Opportunities Agency

Canada Revenue Agency

Table 7 Details on Transfer Payment Programs (TPPs)

Three Transfer Payment Programs with payments in excess of $5M were administered by the Agency in 2007-2008:

• Children’s Special Allowance Payments (CSA) (Statutory)
• Energy Cost Assistance Measures Expenses (Statutory)
• Transfers to Provinces under the Softwood Lumber Products Export Charge Act, 2006 (Statutory)

Table 7.1 Children’s Special Allowance Payments (CSA) (Statutory)

Table 7.2 Energy Cost Assistance Measures Expenses (Statutory)

Table 7.3 Payments to Provinces under the Softwood Lumber Products Export Charge Act, 2006 (Statutory)

Canadian Food Inspection Agency

Canadian Heritage

Table 6: Details of Transfer Payment Programs, Department of Canadian Heritage 2007–2008

All these transfer payments programs are voted, which means that each year the Parliament of Canada votes annual Appropriation Act or Acts to grant expenditure authority to the Crown for the departments and agencies. This spending authorization lapses at year-end.

Citizenship and Heritage Sector

• Aboriginal Peoples' Program
• Community Historical Recognition Program
• Development of Official-Language Communities Program
• Enhancement of Official Languages
• Exchanges Canada Program
• Katimavik Program
• Multiculturalism Program
• Museums Assistance Program

Cutural Affairs Sector

• Arts Presentation Canada
• Book Publishing Industry Development Program
• Canada New Media Fund
• Canadian Arts and Heritage Sustainability Program
• Canadian Culture Online Program
• Canada Magazine Fund
• Canada Music Fund
• Contribution in support of the Canadian Television Fund
• Cultural Spaces Canada
• National Arts Training Contribution Program
• Publications Assurance Program

International and Intergovernmental Affairs and Sport Sector

• Athlete Assistance Program
• Hosting Program
• Sport Support Program
• TV5 Contributions

Public and Regional Affairs Sector

• Celebration, Commemoration and Learning Program

Table 6: Details of Transfer Payment Programs, Department of Canadian Heritage 2007–2008
Citizenship and heritage Sector

Table 6: Details of Transfer Payment Programs, Department of Canadian Heritage 2007–2008
Cultural Affairs Sector

All these transfer payments programs are voted, which means that each year the Parliament of Canada votes annual Appropriation Act or Acts to grant expenditure authority to the Crown for the departments and agencies. This spending authorization lapses at year-end.

Table 6: Details of Transfer Payment Programs, 
Department of Canadian Heritage
2007–2008
International and Intergovernmental Affairs and Sport Sector

All these transfer payments programs are voted, which means that each year the Parliament of Canada votes annual Appropriation Act or Acts to grant expenditure authority to the Crown for the departments and agencies. This spending authorization lapses at year-end.