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Section II
Analysis of Program Activities by Strategic Outcome

This section describes AAFC's Strategic Outcomes and Program Activities, and identifies the Expected Results, Performance Indicators and Targets for each of them. The section also explains how the department plans on meeting the Expected Results and presents the financial and non-financial resources that will be dedicated to each Program Activity.

Strategic Outcome 1 - An environmentally sustainable agriculture, agri-food and agri-based products sector

AAFC supports an economically and environmentally sustainable agriculture, agri-food and agri-based products sector that ensures proper management of available natural resources and adaptability to changing environmental conditions. Addressing key environmental challenges in Canada including agriculture's impact on water quality and water use, adaptation to the impact of climate change, mitigation of agriculture's greenhouse gas emissions and the exploration of new economic opportunities will contribute to a cleaner environment and healthier living conditions for the Canadian public, while enabling the sector to become more profitable.

This Strategic Outcome comprises the following Program Activities, which are described in the subsequent discussion of Expected Results, Planning Highlights and Benefits to Canadians.

Program Activities	1.1 Environmental Knowledge, Technology, Information, and Measurement	1.2 On-Farm Action

Program Activity 1.1: Environmental Knowledge, Technology, Information and Measurement

Program Activity Summary

AAFC is focused on supporting the sector through initiatives that enable it to use a more systematic management approach to making decisions with respect to environmental risks and help identify suitable corrective actions. The department is conducting basic and applied research to improve scientific understanding of agriculture's interactions with the environment on the key environmental challenges facing Canada and its regions; developing sustainable agricultural practices and validating environmental and economic performance at the farm level; and developing, enhancing and using agri-environmental indicators, greenhouse gas accounting systems and economic indicators to assess the sector's environmental and economic sustainability. This program provides the platform for innovation and discovery of technologies and strategies which are used as the basis for application by the sector to improve its agri-environmental performance.

Environmental Knowledge, Technology, Information and Measurement
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$59.6 M	692 FTEs	$59.8 M	692 FTEs	$57.1 M	692 FTEs

Expected Results	Performance Indicators	Targets
Agriculture and agri-food sector makes decisions that incorporate sound environmental practices	Percentage of decisions made by the agriculture and agri-food sector that integrate or include environmental considerations	Establish baseline value by March 31, 2011 Determine increase in availability by March 31, 2013

Planning Highlights

AAFC will work towards achieving the science priorities described in the department's Science and Innovation Strategy aimed at improving scientific understanding of agriculture's interactions with the key national and regional environmental challenges. With increased understanding, it will be possible to develop technologies and strategies that increase agriculture's positive impacts on the environment while minimizing potential negative impacts. These technologies and strategies will also contribute to the sector's competitiveness and adaptation. For additional information on the broader Science and Innovation Strategy, please refer to the planning highlights for Program Activity 3.1 on Science, Innovation and Adoption further in this document.

The department will continue to support sound agri-environmental decision-making by: (1) developing tools and beneficial management practices that support sustainable land management decisions; and (2) developing and enhancing agri-environmental indicators, greenhouse gas accounting systems and economic indicators to assess the sector's environmental and economic sustainability.

AAFC has been active in the development of the Global Research Alliance on Agricultural Greenhouse Gases (GHG), which is an international network to coordinate and increase agricultural research that will deliver practical benefits for both farmers and the environment, both domestically and abroad. The department will lead Canada's involvement as a founding member, focussing on beneficial management practices that mitigate GHG emissions, for example, by storing carbon in soils, and promoting synergies between mitigation and adaptation efforts. AAFC's contribution to the alliance will also help develop science-based policies and programs that address the implications of climate change for agriculture, and ultimately promote the economic and environmental sustainability of agriculture.

Benefits for Canadians

AAFC will contribute to a cleaner and healthier environment for all Canadians, recognizing that environmentally responsible agriculture and competitive agriculture are inextricably linked. The agriculture and agri-food sector will be better able to manage resources in an efficient and sustainable manner through improved understanding of agriculture's impact on water quality and ongoing water requirements. Scientifically verified environmental stewardship practices will be developed that also maximize related economic opportunities in a sustainable manner.

Further, the sector will have enhanced access to knowledge and the opportunity to develop expertise to support the sustainable use of agricultural land and water resources.

Program Activity 1.2: On-Farm Action

Program Activity Summary

AAFC supports farmers through direct on-farm programming that identifies environmental risks and opportunities and promotes the continuous growth of the stewardship ethic within the agriculture and agri-food sector.

The department supports farmers through agri-environmental risk assessment and planning; providing expertise, information and incentives to increase the adoption of sustainable agriculture practices at the farm level; investigating and developing new approaches that encourage and support the adoption of sustainable agriculture practices; and increasing the recognition of the value of sustainable agriculture practices.

This Program Activity supports environmental stewardship and helps reduce the sector's overall impact on the environment. It contributes to a cleaner environment and healthier living conditions for Canadian people, and a more profitable agriculture sector.

On-Farm Action
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$152.5 M	384 FTEs	$147.2 M	384 FTEs	$138.7 M	384 FTEs

Expected Results	Performance Indicators	Targets
Improved agri-environmental risk assessment and planning by agricultural producers	Increase in levels of Beneficial Management Practices (BMP) adoption addressing priorities across Canada	10 per cent increase from previous program baselines by March 31, 2013

Planning Highlights

To enhance the sustainability of the sector, AAFC will continue to invest in on-farm actions aimed at: supporting agri-environmental risk assessment and planning; providing expertise, information and incentives to increase Beneficial Management Practices at the farm level; and investigating and developing new approaches to sustainable agriculture practices.

AAFC will also continue to promote an integrated approach in the development and delivery of expertise, information and services across all regions of Canada. In partnership with provinces, local land-use planners, conservation authorities, and others, investment in on-farm actions will promote the effectiveness, efficiencies and economic benefits of sustainable agricultural practices.

Benefits for Canadians

Canadian farmers have demonstrated through their actions that they care for the environment. Through this Program Activity, AAFC will continue to support them in contributing to a cleaner environment for Canadians and a more profitable sector

Through direct on-farm programming and incentives, agri-environmental risk assessment and planning by agricultural producers is enhanced, the environmental stewardship ethic is supported, and the sector's overall impact on the environment is reduced.

Strategic Outcome 2 - A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Canada's capacity to produce, process and distribute safe, healthy, high-quality, and viable agriculture, agri-food and agri-based products is dependent on its ability to proactively manage and minimize risks and to expand domestic and global markets by meeting and exceeding consumer demands and expectations. Proactive risk management and an improved regulatory environment will contribute directly to the economic stability and prosperity of Canadian farmers and provide greater security for the Canadian public.

This strategic outcome comprises the following program activities, which are described in the subsequent discussion of expected results, plans and benefits to Canadians.

Program Activities	2.1 Business Risk Management	2.2 Food Safety and Biosecurity Risk Management Systems	2.3 Trade and Market Development	2.4 Regulatory Efficiency Facilitation	2.5 Farm Products Council of Canada

Program Activity 2.1: Business Risk Management

Program Activity Summary

AAFC, in partnership with the provinces and territories, has a comprehensive suite of BRM programs to better equip producers with the tools and capacity to manage business risks. These programs consist of coverage for small income declines through AgriInvest, margin-based support for larger income losses through AgriStability, rapid assistance to producers through the disaster relief framework AgriRecovery, and protection against production losses due to uncontrollable natural hazards through AgriInsurance.

In addition, the department provides assistance to producers through several financial guarantee programs. For instance, the Advance Payments Program facilitates the marketing of producers' crops when market conditions and prices may be more favourable.

Business Risk Management
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$1,996.2 M	549 FTEs	$1,873.6 M	549 FTEs	$843.6 M	549 FTEs

Expected Results	Performance Indicators	Targets
Producers' income losses are reduced	Current year producers' net market income (NMI) plus BRM payments compared to the previous five-year average NMI plus BRM payments for the sector	85 per cent of the previous five-year average NMI plus BRM payments by March 31, 2011

Planning Highlights

AAFC, together with provincial and territorial governments, will continue delivering the BRM suite of programs under the Growing Forward policy framework. The department also continues to improve its ability to deliver, monitor and report on the performance of these programs. The aim of the BRM suite of programs is to reduce producers' income losses resulting from factors beyond their control.

The department continues to work to design and improve programs based on stakeholder input, by working with provincial and territorial governments, and consulting with industry. For example, the National Program Advisory Committee, which includes producer representatives from various regions and commodities, was established to provide governments with advice on the delivery of AgriStability and AgriInvest.

Government officials are also developing options to meet the commitment to expand the AgriInsurance program. AgriInsurance provides farmers with affordable protection against production losses due to uncontrollable natural hazards.

AAFC is committed to ensuring that the BRM programs are delivered in a manner that responds to provincial and territorial partners' preferences. To this end, federal officials are working with British Columbia and Saskatchewan to complete the efficient transfer of delivery of the AgriStability program to these provinces. The transfer began in January 2010. Once this process is complete, the program will be delivered provincially in British Columbia, Alberta, Saskatchewan, Ontario, Quebec, and Prince Edward Island and federally for producers in Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador, and the Yukon. AgriStability provides coverage to stabilize producers' incomes against large losses due to reasons beyond their control.

The department is also working with financial institutions in all provinces except Quebec to launch AgriInvest accounts at banks and credit unions in the summer of 2010, in time for the 2009 AgriInvest program. In the meantime, AAFC will continue to hold the AgriInvest accounts. In Quebec, La Financière agricole administers AgriInvest and will continue to hold program accounts for producers in that province. AgriInvest allows producers to deposit up to 1.5 per cent of their allowable net sales into a program account and receive a matching government contribution, which is cost-shared 60:40 between the Government of Canada and provincial and territorial governments. Producers are free to use the funds accumulated in their accounts to cover small income losses or for investments to improve their farm revenue. Financial institutions' involvement is expected to improve client services by increasing participants' access to their accounts.

Federal officials will, through the AgriRecovery Framework, work with the provinces and industry on a case-by-case basis to appropriately respond to disasters affecting producers. The Framework is another part of the BRM suite of programs. Initiatives developed under the Framework allow producers impacted by disasters to quickly resume business operations and/or mitigate the impacts of a disaster.

In addition, AAFC will compensate hog producers through the Hog Transition Program that cease production for at least three years, to assist the hog sector with an orderly transition in view of new market realities. Through federal loan guarantees, AAFC will assist the sector to become more competitive and sustainable by providing additional long-term credit to hog producers through the Hog Industry Loan Loss Reserve Program.

Under Canada's Economic Action Plan, AAFC has introduced the Canadian Agricultural Loans Act (CALA) to give farmers easier access to credit. The CALA program builds on and replaces the previous Farm Improvement and Marketing Co-operative Loans Act. Details on the CALA program are described further under the CEAP discussion that follows in this RPP document.

Together with provinces and territories, the department continues to work on a strategic review of the BRM suite of programs to ensure that it meets, and will continue to meet, producers' evolving needs. Analysis has already been undertaken to understand how effectively the current suite of BRM programs meets its objectives and to identify emerging trends that may affect future programs and policies. The strategic review will be important in guiding work towards the next phase of BRM programming beyond the current five-year Growing Forward policy framework.

Benefits for Canadians

The objectives of BRM programs under Growing Forward are broader than similar programs in the past and more effectively take into account the full range of risks facing producers. BRM programs will support producers in continuing to provide quality and affordable food upon which Canadians rely. By effectively managing risks, producers will be able to focus on seeking out new opportunities to produce safe and innovative food and non-food products for consumers at home and around the world.

Program Activity 2.2: Food Safety and Biosecurity Risk Management Systems

Program Activity Summary

AAFC supports producers and organizations, and collaborates with provinces, in the development and implementation of food safety, biosecurity and traceability risk management systems to prevent and control risks to the animal and plant resource base thus strengthening the sector against widespread diseases and losses in domestic and foreign markets.

The risk management systems are national, government-recognized on-farm and/or post-farm Hazard Analysis of Critical Control Points (HACCP) or HACCP-based food safety systems, National Biosecurity Systems and a National Agriculture and Food Traceability System. These systems also support management activities to limit the spread of animal and plant diseases, thereby reducing economic, environmental and social impacts of a potential crisis. The National Animal and Plant Biosecurity Strategy provides overall policy direction ensuring efforts are targeted at the highest possible biosecurity risks.

Eligible recipients include national or regional non-profit organizations, producers and industry stakeholders.

Food Safety and Biosecurity Risk Management Systems
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12*		2012-13
$154.8 M	349 FTEs	$97.8 M	349 FTEs	$90.0 M	349 FTEs

*There is a decrease in planned spending in 2011-12 mainly due to the sunsetting in 2010-11 of the program to Control Diseases in the Hog Industry and the current Plum Pox Eradication program.

Expected Results	Performance Indicators	Targets
Increased safety of the food system which contributes to greater market access for Canadian agricultural products	Percentage of producers reporting adoption of food safety practices	55 per cent by March 31, 2010 from current levels of 47 per cent TBD by March 31, 2012 (A proposed second survey in 2011 will provide results by March 31, 2012. Targets will be established based on the first survey results and after the inclusion of voluntary questions regarding food safety are confirmed.)

Planning Highlights

AAFC will provide support for the development of farm-level national biosecurity standards. Through a memorandum of understanding with AAFC, these standards will be developed by the Canadian Food Inspection Agency with input from national commodity groups, provinces and territories, and stakeholders.

As outlined in its Science and Innovation Strategy, AAFC will conduct research to enhance knowledge and understanding of the causal agents of potential and emerging threats to the security of the Canadian food production and distribution systems and the behaviour of these agents along the food chain. The department will also develop strategies and practices to detect, monitor and control hazards throughout the food chain and to reduce health risks based on integrated knowledge of production and processing systems with respect to biological and chemical hazards.

Under the Growing Forward policy framework, AAFC will collaborate with university and industry partners to develop on-farm technologies in support of long-term animal and plant health protection, as well as risk-mitigation strategies.

The department will provide financial incentives to national organizations to develop national on-farm and post-farm food safety systems and practices. This Growing Forward initiative supports these organizations in developing food safety practices such as on-farm and post-farm HACCP based systems, ISO 22000, or Good Manufacturing Practices. These initiatives establish basic principles of operation to be followed to produce consistent and safe food. This will help with the early adoption of these government-recognized systems by producers and non-federally registered food-processing enterprises.

AAFC will also work with its partners to accelerate the National Agriculture and Food Traceability System, now being developed by industry and governments, to ensure a national, integrated approach. In 2009, governments agreed to work toward a national mandatory traceability system, starting with livestock by 2011. A new legislative and regulatory framework will be developed and the business requirements will be identified for a national information sharing solution. This will provide access to the traceability information collection systems put in place by the industry organizations with the financial support of governments. AAFC will support CFIA under the Growing Forward Framework to achieve this regulatory change.

Benefits for Canadians

Government-recognized and science-based food safety, biosecurity and traceability practices, tools and systems at the farm and agri-business levels will help to prevent the spread of animal and plant diseases. This will reduce costs associated with responses to disease outbreaks, help continue and enhance market access, and allow the sector to better respond to increasing demands for assurances of food safety. In turn, this will strengthen domestic and international consumers' confidence in Canada as a source for safe products.

Program Activity 2.3: Trade and Market Development

Program Activity Summary

AAFC acts as Canada's agricultural trade advocate, working to break down trade barriers at home and abroad and expand opportunities for the agriculture, agri-food and agri-based products sector.

The department assists the sector in identifying new domestic and global opportunities, markets and ways to enhance productivity, competitiveness and prosperity. AAFC also works to distinguish Canadian products under Canada Brand International and the Domestic Branding Strategy to expand and deepen the sector's strengths in the marketplace.

Trade and Market Development
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$116.3 M	378 FTEs	$116.6 M	378 FTEs	$117.2 M	378 FTEs

Expected Results	Performance Indicators	Targets
A competitive sector that has the necessary attributes to strategically position itself to take advantage of new market opportunities, and/or to reposition itself to protect against changing market risks	Growth in total exports of agriculture and food (1997 dollars)	Reach a level of exports of $40 billion by March 31, 2013

Planning Highlights

In 2010-11 and beyond, AAFC will focus on transforming the strengths of Canada's agriculture and food sector into success in domestic and global markets by helping it anticipate and manage risks inherent in trading agri-food products in foreign markets.

Value Chain Roundtables (VCRTs) are industry-led forums that encourage producers and other stakeholders across the respective value chains to develop and take advantage of new opportunities, as well as foster industry-government collaboration on industry-defined strategies. Through the VCRTs, AAFC will continue to provide expertise and advice, as well as manage cross-sectoral issues. AAFC's involvement in the VCRTs also helps the department gather information and feedback, supporting the lead role it plays in building and implementing a shared strategic vision for the industry.

To enhance the Canadian agriculture and agri-food (including fish and seafood) sector's marketing capacity, AAFC will provide targeted market intelligence and specialized agriculture and food trade commissioners in key markets. Also, through the AgriMarketing Program, funding will be available for industry to develop and implement Long-Term International Strategies, bringing greater cohesion to individual associations' marketing efforts to brand Canadian food and agriculture in international markets.

AAFC's Canada Brand initiative will build on the foundation of food safety, animal and plant health, traceability and environmental protection and provide tools for industry to leverage this foundation in support of industry marketing efforts, both internationally and in Canada. The new branding initiative will incorporate a new advocacy component, which will be used to target consumers in foreign markets where trade or other barriers present particular challenges to industry export objectives.

In addition, the Market Access Secretariat (MAS), which was established in 2009, will help co-ordinate government initiatives with producers and industry to aggressively and strategically go after new markets and keep pace with international competitors. MAS will stay in the forefront of market access challenges and opportunities. It will provide an increased capacity to respond rapidly in dealing with urgencies, including support to high-level missions and market access initiatives.

The department will lead agriculture trade negotiations at the World Trade Organization (WTO) and in the context of bilateral trade negotiations, notably with the European Union, to advance Canada's agricultural interests, by working towards rules that foster this country's competitiveness, create new export opportunities and protect the supply managed sectors. It will also advocate science-based and transparent regulatory systems, standards and processes, especially for novel products. AAFC will strive to ensure that Canada's international trade obligations are taken into account in domestic programs and policies to minimize risk of trade actions.

The Emergency Management Act requires that all Ministers put in place emergency management plans for their areas of responsibility. In 2010-11, AAFC will collaborate with its federal, provincial and industry partners to consider lessons learned during the 2009-10 H1N1 influenza pandemic and the 2010 Winter Olympic Games, with a view to improving AAFC's readiness to respond to events affecting the agri-food sector.

Benefits for Canadians

Exporting is extremely important to the profitability of the agriculture and food sector. In 2008, Canada was the fourth largest exporter of agriculture and agri-food products (including seafood) in the world and shipped products to 196 different countries. Increasing exports will also lead to more jobs throughout the value chains, and especially in processing and distribution.

Canada has a fundamental interest in expanding market access opportunities and in strengthening international rules governing agricultural trade to achieve a more level playing field for its producers and processors.

Program Activity 2.4: Regulatory Efficiency Facilitation

Program Activity Summary

AAFC is undertaking initiatives to ensure that the regulatory environment promotes sector innovation, investment and competitiveness, while protecting the health of Canadians and the safety and security of our food supply. The department recognizes that with the rapid pace of technological advancement and emerging gaps between international and domestic regulatory policies, Canada's regulatory environment will need to increase capacities and accelerate modernization to be responsive. Initiatives under this Program Activity involve working with stakeholders along the value chain to enhance their ability to fulfill regulatory requirements, and collaborating with federal partners and industry to find ways of streamlining the regulatory burden through targeted actions on sector priorities, while at the same time maintaining the integrity of Canada's strong regulatory system. Improving the timeliness and transparency of science-based regulatory decision-making will also contribute to improved public and stakeholder confidence.

Regulatory Efficiency Facilitation
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$35.9 M	61 FTEs	$35.8 M	61 FTEs	$36.0 M	61 FTEs

Expected Results	Performance Indicators	Targets
An enhanced regulatory environment which promotes sector innovation, investment and competitiveness	Comparative parity for prioritized pesticides, health claims, novel foods, and ingredients	10 by March 31, 2013

Planning Highlights

In keeping with the principles of the Government of Canada's Cabinet Directive on Streamlining Regulation, AAFC will strive to improve the ability of the agriculture and agri-food sector to work within the regulatory system, and enhance the capacity of regulating bodies to respond to sector needs. Priorities include: minor use pesticides and pesticide risk reduction; veterinary drugs; health claims, novel foods, and ingredients; and voluntary food fortification.

Under the Growing Forward Regulatory Action Plan, AAFC is helping industry understand and follow regulatory processes and requirements, including responding to scientific data requirements. Under the Plan, Health Canada is increasing its capacity to streamline regulatory processes and improve submission review times. In addition, Health Canada is being better positioned to develop policy and regulatory frameworks to address the sector's priorities while maintaining health and safety standards. AAFC and Health Canada will each continue to report on the performance of these joint initiatives through their Departmental Performance Reports.

AAFC will continue to work with stakeholders to identify minor use pesticide solutions for pest problems and to develop strategies and associated action plans to reduce the risk of pesticides to human health and the environment. The department will generate data on pesticide efficacy and residue, and crop tolerance to pesticides, as well as prepare submissions for new minor uses. This includes providing support to growers to establish national pest management priority projects, new minor uses of pesticides available to producers through a dedicated review process, improved pesticide resistance management, and improved access to reduced-risk tools, technologies and practices.

The department will continue to provide analysis and advice on domestic food regulatory issues that impact innovation and competitiveness in foods with health benefits. This includes helping stakeholders determine plans and priorities with respect to health claims, novel foods, and ingredients based on market opportunities. AAFC will work with industry and the research community to develop awareness of the regulatory environment, establish science partnerships, and conduct research to address knowledge gaps to establish health-claim validity and novel-ingredient safety. The department will also help stakeholders to complete substantiated regulatory submissions.

Benefits for Canadians

AAFC's work will improve crop protection practices and provide access to new reduced-risk technologies, tools, and practices and minor uses of pest control products. This will lead to competitive parity of Canada's agriculture and agri-food sector, prevention of trade barriers with countries where these products are already available, and reduced risk to the environment and Canadians.

The department's activities related to health claims, novel foods and ingredients will assist the sector to navigate the regulatory system, leading to new, innovative and safe food products with a focus on health benefits.

Program Activity 2.5: Farm Products Council of Canada

Program Activity Summary

Established through the Farm Products Agencies Act, the Farm Products Council of Canada (FPCC), formerly known as the National Farm Products Council, is a quasi-judicial agency reporting to Parliament through the Minister of Agriculture and Agri-Food. The Act provides for the creation of national marketing and promotion research agencies. The FPCC supervises these agencies and works with them to ensure that the supply management system for poultry and eggs and the check-off system for beef cattle work in the balanced interest of all stakeholders, from producers to consumers. The FPCC is also an active proponent of portfolio management by providing advice to the Minister and maintaining relationships with provincial governments.

Farm Products Council of Canada
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$2.8 M	26 FTEs	$2.8 M	26 FTEs	$2.8 M	26 FTEs

Expected Results	Performance Indicators	Targets
The supply management system for poultry and eggs as well as check-off system for beef cattle works in the balanced interests of all stakeholders, from producers to consumers	Percentage Market Share: Producers maintain their relative share of the Canadian market for broiler hatching eggs and chicks, chicken, table eggs, and turkey	Relative market share remains above 80 per cent throughout 2010-11
	Variations in consumer price indices for the regulated products are consistent with those of other unregulated agricultural products	Consumer price indices variations for regulated agricultural products throughout 2010-11 remain within plus or minus 10 percentage points of those of unregulated agricultural products throughout the same period

Planning Highlights

The FPCC will continue to supervise the Canadian Beef Cattle Research Market Development and Promotion Agency, Canadian Hatching Egg Producers, Chicken Farmers of Canada, Egg Farmers of Canada and Turkey Farmers of Canada.

In line with its 2009-2012 Strategic Plan, the FPCC will help producers maintain domestic market shares and proactively manage risk. To do so, the FPCC will focus on: its governance and decision-making process; knowledge base and capacity to influence solutions; interactions with industry and provincial government stakeholders; dispute-resolution mechanisms within the supply management system for poultry and eggs; and provide information on promotion research agencies.

For more information visit http://www.fpcc-cpac.gc.ca/index.php?option=com_content&task=view&id=140&lang=english

Benefits for Canadians

The supply management system was established in response to price volatility and revenue uncertainty faced by agricultural producers. The FPCC supervises national marketing agencies, which are not subject to the Competition Act, and provides checks and balances to ensure that the supply management systems for poultry and eggs and the check-off system for beef cattle work in the balanced interest of all Canadian stakeholders, from producers to consumers, who can rely on the consistent supply of quality products.

For more information, visit http://www.fpcc-cpac.gc.ca

Strategic Outcome 3 - An innovative agriculture, agri-food and agri-based products sector

Sector innovation includes the development and commercialization of value-added agricultural-based products, knowledge-based production systems, processes and technologies, and equipping the sector with improved business and management skills and strategies to capture opportunities and to manage change. Innovation is vital for ongoing growth and improvement in the productivity, profitability, competitiveness and sustainability of Canada's agriculture, agri-food and agri-based products sector and its rural communities.

This strategic outcome comprises the following program activities, which are described in the subsequent discussion of expected results, plans and benefits to Canadians.

Program Activities	3.1 Science, Innovation and Adoption	3.2 Agri-Business Development	3.3 Rural and Co-operatives Development	3.4 Canadian Pari-Mutuel Agency

Program Activity 3.1: Science, Innovation And Adoption

Program Activity Summary

AAFC contributes to the competitiveness of the agriculture, agri-food and agri-based products sector by supporting innovation designed to improve profitability in new and existing products, services, processes and markets.

Coordinated and informed planning and decision-making is supported with strategic foresight, research, and information sharing with industry, government and academia. Collaborative action is promoted to accelerate the flow of science and technology along the innovation continuum in support of industry defined strategies for future success. Farmers, agri-entrepreneurs and agri-based small and medium sized enterprises are supported in their efforts to adopt new technologies and commercialize new products and services. Pathfinding and transformational research, help to define future opportunities and prepare the sector for emerging opportunities and challenges.

Science, Innovation and Adoption
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$408.8 M	1,420 FTEs	$286.7 M	1,420 FTEs	$306.7 M	1,420 FTEs

Expected Results	Performance Indicators	Targets
An agriculture and agri-food sector that utilizes science and innovation to improve or transform commodities into new value-added or bio-product opportunities for processors, producers and rural communities and new life sciences products for consumers	Increase in agriculture net value-added ("value-added" is a Statistics Canada measure of Canadian value-added gross domestic product)	7 per cent by March 31, 2014

Planning Highlights

AAFC will continue to advance knowledge and technology in support of industry capability to capture new business opportunities in emerging markets for differentiated products in areas such as food, feed, fibre, health and wellness, energy, and industrial products. New knowledge, ideas, processes, products and services will be generated to accelerate the flow of science and technology results along the three phases of the innovation continuum - discovery, pre-commercialization and commercialization.

AAFC will continue to refine and implement its Science and Innovation Strategy. We will develop better basic understanding of animal and crop biology as a foundation for the development of integrated crop and livestock systems. Furthermore the department will develop and apply integrated crop and livestock systems to enhance producer profitability by decreasing risk, optimizing cost of production and improving overall economic and environmental sustainability. Using agricultural biomass platforms, conversion technologies and engineering systems, we will develop bioenergy, bio-industrial chemicals and bio-based materials. Further information on the Science and Innovation Strategy is available at: http://www.agr.gc.ca/scienceandinnovation.

Through the Growing Canadian Agri-innovations Program, launched in 2009-10, national science capacity will be mobilized to address industry objectives, and support will be provided to industry-led projects that bridge the gap between ideas and discoveries and products in the marketplace. For more information, visit http://www.agr.gc.ca/agri-innovations.

In addition, the department will encourage private sector investment in the agri-food, agri-based and bio-fuels industry sectors. AAFC will engage its networks of industry leaders to ensure that opportunities for value-added projects are captured. Support is provided for collaboration between producers, processors, distributors, science providers and the marketplace to ensure all aspects of the value-chain are considered. Government investment will be leveraged via industry partnerships to expand current as well as potential new areas including bioproducts, eco-materials, clean energy, and health products.

Adaptation programming will support industry-led approaches and solutions that assist farmers, the processing sector and the value chain as a whole, providing opportunities for collaborative solutions to common issues. For example, the Agricultural Flexibility Fund is a five-year, (2009-14) $500 million fund for new initiatives, both federally and in partnership with provinces, territories and industry, to improve the sector's competitiveness and adaptation to pressures through non-business risk-management measures. This fund will support projects that reduce production costs, improve environmental sustainability, promote innovation, and respond to market challenges.

Benefits for Canadians

As an economic and science-based department, AAFC supports the stability and growth of the sector by providing the knowledge required for innovation in a Canadian context. Innovation programming provided by AAFC will help the sector build its own capacity to engage in scientific research and to develop the tools, technologies and practices needed to foster enhanced competitiveness.

By responding quickly to issues and opportunities, the agriculture and agri-food products sector can reduce the impact of unforeseen challenges or take advantage of opportunities ahead of competitors. Programs that encourages private-sector investment in the bio-economy in Canada strengthens the sector. A more productive bio-economy generates increased employment, provides an enhanced market for agricultural products and contributes to the prosperity of producers and Canadians.

Program Activity 3.2: Agri-Business Development

Program Activity Summary

This Program Activity builds awareness of the benefits and encourages the use of sound business management practices to enable businesses to be profitable and invest where needed to manage the natural resource base sustainably and to market and produce safe food and other products.

The Agri-Business Development Program Activity provides funding for activities related to business management practices and skills that: strengthen the capacity of businesses in the sector to assess the financial implications of business improvements, including the impact of environmental plans, food safety systems and innovation projects on their business profitability; manage transformation, respond to change and adopt innovation in business operations; help agri-business owners understand their financial situations, implement effective action and business management plans/practices and provide for enhanced participation by young or new entrants, First Nations clients, and clients in specific sub-sectors in transition.

Agri-Business Development
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$72.9 M	51 FTEs	$52.3 M	51 FTEs	$36.8 M	51 FTEs

Expected Results	Performance Indicators	Targets
Increased realization of business goals	Percentage of participating businesses in Business Development programs meeting their business goals	55 per cent by March 31, 2013

Planning Highlights

AAFC will work with provincial and territorial partners to help agri-businesses access information, advisory services and skills development opportunities. Efforts will focus on areas such as business planning, tracking costs of production and benchmarking, goals realization and change management. AAFC will also fund national organizations to enhance the skills, tools and knowledge of youth, new entrants and established producers.

The department will provide financial counseling and mediation services to farmers who may be having trouble repaying debts, bringing producers and creditors together with a mediator to reach mutually acceptable repayment agreements.

Red meat packing and processing plants will benefit from repayable contributions through the Slaughter Improvement Program to support investments to reduce costs, increase revenues, or otherwise improve the operations of federally registered plants. For more information, visit http://www.agr.gc.ca/slaughterhouse.

AAFC will provide support for agricultural internships for young people who are unemployed or under-employed and who have studied in an agriculture-related area following high school as part of the Career Focus Program. For more information, visit http://www.agr.gc.ca/careerfocus.

Benefits for Canadians

As a result of agri-business development initiatives, sector participants will be in a better position to increase profitability, realize goals and manage change. This will lead to a more financially sustainable and competitive agri-business sector which, in turn, contributes to strengthening Canadian economic growth, stewardship, food safety, and meeting the needs of Canadians for agri-based products.

Program Activity 3.3: Rural and Co-operatives Development

Program Activity Summary

The Rural and Co-operatives Development program leads an integrated, government-wide approach, called the Canada's Rural Partnership, through which the government aims to coordinate its economic, social, environmental and cultural policies towards the goal of economic and social development and renewal of rural Canada. It develops partnerships with federal departments and provincial and rural stakeholders in areas such as knowledge building, policy development and the implementation of the government's rural development strategies. It also offers tools to enable rural communities to use their innovative capacity to capture the value of local amenities, and to achieve greater local or regional economic competitiveness.

The program also promotes economic growth and social development of Canadian society through the development of co-operatives. It facilitates the development of co-operatives as an effective tool to help Canadians and communities address their needs and capture economic opportunities. It provides advice across government on policies and programs affecting co-operatives and builds partnerships within the federal government and with the sector, the provinces and other key stakeholders in the implementation of initiatives, such as capacity and knowledge building, to support the development of co-operatives.

Rural and Co-operatives Development
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$25.1 M	88 FTEs	$25.1 M	88 FTEs	$20.2 M	88 FTEs

Expected Results	Performance Indicators	Targets
New economic activities are being developed in rural communities	Number of communities in 20 selected rural regions where new economic activities are implemented as a result of Canada's Rural Partnership collaborative activities	30 by March 31, 2013
	Number of communities that identified and assessed their local natural and cultural amenities	100 by March 31, 2013
Canadians are better able to utilize the co-operative model to meet their economic and social needs	Number of co-operatives created which have received Co-operative Development Initiative support	150 by March 31, 2013

Planning Highlights

AAFC, through Canada's Rural Partnership (CRP), will work with government and non-government organizations to foster innovative rural development. This will enable communities to enhance their competitiveness and increase economic activities. For example, this will allow 100 rural communities to identify and assess local amenities to attract investment and people. For more information, visit http://www.rural.gc.ca.

Through the Community Development Fund (CDF), launched in 2009, AAFC will assist rural communities in the tobacco-growing region of Ontario to transition to a non-tobacco based economy. CDF will provide support to community-based initiatives that support regional development, attract and retain people and investment, and stimulate business development and job creation.

Co-operative organizations will receive support to develop more co-ops and to research and test innovative ways of using the co-operative model. The Co-operative Development Initiative will make the co-op option more readily available to Canadians. For more information, visit http://www.coop.gc.ca.

As the United Nations General Assembly has proclaimed 2012 as the International Year of Co-operatives, planning of activities to celebrate the positive impact of co-operatives on the Canadian socio-economic fabric will take place in 2011 and be implemented in 2012.

Benefits for Canadians

Canada's rural communities will have improved access to quality information, tools and services for innovative rural development, creating benefits from economic opportunities and supporting the innovation and growth of the sector. Canadians will have greater access to the services and information necessary to launch or expand co-operatives. This will generate opportunities for innovation and economic growth.

Program Activity 3.4: Canadian Pari-Mutuel Agency

Program Activity Summary

Section 204 of the Criminal Code of Canada designates the Minister of Agriculture and Agri-Food as the individual responsible for the policy and regulatory functions pertaining to pari-mutuel wagering on horse races.

The Canadian Pari-Mutuel Agency (CPMA) is a special operating agency within AAFC that regulates and supervises pari-mutuel betting on horse racing at racetracks across Canada, with the objective of ensuring that pari-mutuel betting is conducted in a way that is fair to the betting public. Costs associated with the activities of the CPMA are recovered through a levy on every dollar bet on horse races in Canada. The levy is currently set at eight-tenths of a cent of every dollar bet. CPMA's strategic plans are focused on regulating and supervising pari-mutuel wagering on horse races in the most modern, effective and transparent manner.

Canadian Pari-Mutuel Agency
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$0.4 M	57 FTEs	$ (0.0) M	57 FTEs	$ (0.3) M	57 FTEs

Expected Results	Performance Indicators	Targets
Pari-mutuel betting is conducted in a way that is fair to the Canadian betting public	Percentage of compliance with the Pari-Mutuel Betting Supervision Regulations of Canadian racetracks and betting theatres inspected by CPMA officers	100 per cent by March 31, 2011

Planning Highlights

The CPMA will approve and inspect pari-mutuel betting activities conducted at racetracks and betting theatres across Canada to ensure compliance with the Pari-Mutuel Betting Supervision Regulations (the Regulations) and policies. The CPMA will continue working in collaboration with Justice Canada to complete the comprehensive amendment of the Regulations, and will consult with industry stakeholders to ensure that all interested parties understand the new regulatory requirements. A description of draft regulatory changes is available at http://www.agr.gc.ca/pari-mutuel-review.

The Agency will also provide equine drug control programs at racetracks that help ensure race outcomes are not influenced by the inappropriate administration of drugs or medications to race horses.

Benefits for Canadians

Canadians can be assured that pari-mutuel betting systems are operated in a manner consistent with the governing regulations, and that all reasonable steps are taken so that betting on horse races is conducted in a fair and equitable manner.

Canada's Economic Action Plan

AAFC is helping deliver Canada's Economic Action Plan (CEAP) with investments to support the agriculture and agri-food sector and to assist Canadian farmers to maximize market opportunities. The department is also contributing to important horizontal initiatives under CEAP with investments in infrastructure.

CEAP Initiative	Alignment with Program Activity
Agricultural Flexibility Fund (AgriFlexibility)	PA 1.1 Environmental Knowledge, Technology, Information and Measurement PA 1.2 On-Farm Action PA 2.2 Food Safety and Biosecurity Risk Management Systems PA 2.3 Trade and Market Development PA 3.1 Science, Innovation and Adoption PA 3.2 Agri-Business Development PA 4.1 Internal Services
Slaughter Improvement Program	PA 3.2 Agri-Business Development
Canadian Agricultural Loans Act	PA 2.1 Business Risk Management
Transfer of Delivery of the AgriStability Program	PA 2.1 Business Risk Management PA 4.1 Internal Services
Modernizing Federal Laboratories Program	PA 3.1 Science, Innovation and Adoption PA 3.4 Canadian Pari-Mutuel Agency
Accelerating Federal Contaminated Sites Action Plan	PA 4.1 Internal Services

Following is a discussion of departmental plans for each of these initiatives.

Agricultural Flexibility Fund

The Agricultural Flexibility Fund (AgriFlexibility) is a five-year (2009-14), $500 million fund. It supports new initiatives, both federally and in partnership with provinces, territories and industry that will improve the sector's competitiveness. These initiatives will help the sector adapt to pressures through non-business risk-management measures that will reduce production costs, improve environmental sustainability, promote innovation, and respond to market challenges.

Three federal-only initiatives have been announced under AgriFlexibility and are at various stages of design and implementation. They are: Livestock Auction Traceability Initiative (LATI); AgriProcessing Initiative (API); and Canada Brand Advocacy Initiative (CBAI).

Funding provided under LATI will enhance Canada's traceability capacity, focusing on the livestock sector. Under the API, $50 million in repayable contributions will be allocated to existing agri-processing companies or co-operatives to adopt new technologies and processes essential to sustaining and improving the sector's competitive position. CBAI will complement industry efforts in markets where challenges or opportunities exist, and will include a variety of sustained consumer-oriented marketing activities such as advertising, retail in-store activities, and restaurant and food-service promotions. Under CBAI, public opinion research and promotional and advertising campaigns will take place in Japan, South Korea and Mexico.

The AgriFlexibility Fund will also support proposals and initiatives from the provinces and territories, and industry, in partnership with the federal government. For example, the Government of Canada has invested in four new projects administered by Pulse Canada to increase profitability for pulse growers, and in the development of a comprehensive market strategy by the Canola Council of Canada to improve market access for Canada's canola farmers. Also, in partnership with the province of Saskatchewan, the government has invested in a project by the Saskatchewan Research Council to commercialize a DNA-based process for wheat identification.

The department is continuing to work with provinces, territories, and industry to develop initiatives under AgriFlexibility to help the sector become more competitive. Given the broad nature of its expected outcomes, AgriFlexibility contributes to all three of AAFC's Strategic Outcomes.

CEAP Portion of Planned Spending
2010-11	2011-12*	2012-13
$124.2 M	$124.2 M	$124.2 M

*Amounts are funded from existing unallocated departmental resources.

Expected Results	Performance Indicators	Targets
Producers and industry improve their environmental practices	Number of actions implemented by producers to improve their environmental practices	Targets have not been established for most performance indicators as initiatives have either recently been announced or will be announced in the coming months. The programming is new; there is no historical information upon which to base targets.
Producers and industry reduce their costs of production	Number of actions implemented by producers to reduce their costs of production
Improved food safety, biosecurity, traceability and risk management measures	Number of improved food safety, biosecurity, traceability and risk management measures
Agri-processors upgrade capacity through modernization of facilities	Number of agri-processors that upgrade capacity
Increase in value-chain efforts focussed on innovation and adaptation	Number and types of activities that increased value-chain efforts focused on innovation and adaptation
Agri-industry actions to respond to market threats and take advantage of emerging market opportunities	Number of actions to respond to market threats and take advantage of emerging market opportunities

Planning Highlights

AAFC plans to fully implement AgriFlexibility in 2010.

To promote value-chain innovation and improve market access for Canadian food and agricultural products, AAFC will implement a Value-Chain Initiative based on strategic planning done by the Value Chain Roundtables currently representing the beef, food processing, grains, horticulture, organics, pork, seafood, and special crops sectors.

Lower production costs and new markets will improve the sector's profitability and will contribute to the country's economic recovery. Canadians will also benefit from improved environmental practices as a result of AgriFlexibility.

Slaughter Improvement Program

The Slaughter Improvement Program (SIP) is national, applications-based, and provides red meat packers and processors with repayable federal contributions to implement sound business plans for projects aimed at improving the operations of federally inspected packing plants. The program aims to allow industry stakeholders to strengthen their competitiveness by supporting new investments that could support profitability for red meat packers. These new investments focus on reducing operating costs, increasing revenues, and adopting innovation to meet future business conditions and consumer expectations. The program also addresses slaughter capacity gaps in regions where it can be demonstrated that this factor is constraining sector growth.

CEAP Portion of Planned Spending
2010-11	2011-12	2012-13
$20.9 M	$14.9 M

Expected Results	Performance Indicators	Targets
Increased productivity, revenues and/or innovation, and/or reduced costs among red meat packers and processors	Per cent of recipients that increase their productivity, revenues and/or innovation, and/or reduce their costs (compared to the level documented in their application)	85 per cent by 2012
Contributed to profitability or reduced losses among red meat packers and processors	Per cent of recipients that increase their profitability (compared to the level documented in their application)	85 per cent by 2012

Planning Highlights

The SIP is delivered nationally by AAFC. The program can provide up to 50 per cent of eligible costs. Projects must be completed by March 31, 2012. Program applications were received in two rounds. The first-round application deadline was August 21, 2009 and the second-round deadline was October 30, 2009. Further requests for applications will be subject to the availability of funds.

Market conditions are the main risk to the expected results, particularly in light of demand reductions during the recession and a higher Canadian dollar. Investments in productivity and innovation will help mitigate some of these risks. This program is contributing to innovation and competitiveness in the agriculture, agri-food and agri-based products sector. As a result of the SIP, sector participants will be in a better position to increase business performance and profitability.

For more information, visit http://www.agr.gc.ca/slaughterhouse.

Canadian Agricultural Loans Act

The Canadian Agricultural Loans Act (CALA) is a financial loan guarantee program that gives farmers easier access to credit. Recent changes to legislation make more credit available to new farmers and to a broader range of agricultural co-operatives. Through the CALA, AAFC is supporting the renewal of the agricultural sector and enabling co-operatives to better seize market opportunities.

CEAP Portion of Planned Spending
2010-11	2011-12	2012-13
$4.0 M	$10.6 M	$10.6 M

Expected Results	Performance Indicators	Targets
Agricultural farmers and co-operatives have access to affordable capital to make investments in their farm properties	Number of program participants per fiscal year	2009-10: 2,625 participants 2010-11: 3,300 participants 2011-12: 3,900 participants 2012-13: 3,900 participants

Planning Highlights

The CALA aims to help both new and existing farmers and agricultural co-operatives with their financing needs by guaranteeing loans issued by financial institutions. It will also help strengthen the agricultural sector by providing opportunities for beginning farmers to get started, or to take over the family farm through intergenerational farm transfers, and for more agricultural co-operatives to participate in value-added initiatives.

Additional information can be found at http://www.agr.gc.ca/cala.

Transfer of Delivery of the AgriStability Program

This initiative supports the federal government's commitment to work with interested provinces toward transferring the delivery of the AgriStability program from the federal government to provincial governments. The transfer will allow for integration and alignment with business risk management programs that are delivered by provinces.

CEAP Portion of Planned Spending
2010-11	2011-12	2012-13
$11.8 M

Expected Results	Performance Indicators	Targets
Provinces (BC, SK) delivering AgriStability for 2009 program year	Signed bilateral delivery transfer and employee transfer agreements	Signed agreements by December 31, 2009

Planning Highlights

The federal government is transferring delivery of the AgriStability program to British Columbia and Saskatchewan. The transfer began in January 2010. Detailed transition plans with the provinces will help ensure a seamless transition and mitigate the impact on AAFC operations in Regina and Winnipeg.

This initiative will support client service through wider integration and alignment of BRM programs that are already being delivered by provinces

Modernizing Federal Laboratories Program

Under CEAP, AAFC received $25.9 million for eight modernization projects in laboratories across the country in 2009-10 and 2010-11. Greenhouses will be replaced in Swift Current, Saskatchewan, and upgraded in Harrington, Prince Edward Island. A new dairy complex will be built in Sherbrooke, Quebec. Laboratories will be upgraded in Ottawa and Guelph, Ontario, Morden, Manitoba, St-Jean-sur-Richelieu, Quebec, and Fredericton, New Brunswick.

CEAP Portion of Planned Spending
2010-11	2011-12	2012-13
$19.3 M

Expected Results	Performance Indicators	Targets
Completion of eight laboratory projects across Canada	On time and on budget	By March 2011 complete all 8 projects on budget

Planning Highlights

Work on all eight modernization projects is under way and, in most cases, actual construction has commenced. Since the projects are required to be completed by March 2011, time is critical. Therefore, plans are in place to mitigate the impact of risks and help ensure on-time completion within budgets.

The projects represent a sound investment in AAFC infrastructure, greatly enhancing science capacity and underpinning the core regulatory responsibilities of the department. The projects will support important research in plant breeding, pesticide management, food safety and new product development. There will be long-term benefits for farmers and an immediate economic stimulus in the construction and related industries.

Accelerating the Federal Contaminated Sites Action Plan

Accelerating the Federal Contaminated Sites Action Plan (FCSAP) initiative under CEAP increases the pace of activities under the existing program in 2009-10 and 2010-11. FCSAP is a cost-shared program that helps federal custodians to address contaminated sites for which they are responsible. The CEAP funding for AAFC will be used for additional site assessments and remediation activities at its contaminated sites.

CEAP Portion of Planned Spending
2010-11	2011-12	2012-13
$1.3 M

Expected Results	Performance Indicators	Targets
Completion of additional assessment and remediation activities at AAFC contaminated sites to address risks posed to human health and the environment and to reduce associated financial liability	Number of remediation projects under way or completed at AAFC contaminated sites	By March 31, 2011 undertake 10 remediation projects
	Number of assessment projects completed at AAFC contaminated sites	By March 31, 2011, complete 10 assessment projects

Planning Highlights

In accelerating the FCSAP initiative, AAFC will conduct an additional 10 remediation projects and 10 assessment projects. The department will be able to address priority sites more quickly than initially planned and, as a result, accelerate the reduction of risks to human health and the environment, as well as its liability risks. All projects should be under way or completed by the end of March 2011.

Due to the nature of contaminated sites work, the remedial action plan for each site cannot be fully developed until an assessment is completed. There is a risk that the number of remediation projects could vary based on the assessment results. While it is estimated that 20 projects will be completed within the given budget, the number of projects may vary depending on actual costs.

Accelerating the FCSAP activities under CEAP will result in an improved environment and provide employment opportunities for a wide variety of companies and workers throughout the country.

Program Activity 4.1: Internal Services

Program Activity Summary

Internal Services are groups of related activities and resources that are administered to support all Strategic Outcomes and the needs of programs and other corporate obligations of the department. Only those activities and resources that apply across the department, and not those provided specifically to a program, are included. Internal Services consists of the following group of activities:

• Management and Oversight (includes Strategic Policy and Government Relations; Program/Service Management; Planning, Performance and Reporting; and Internal Audit and Evaluation); Communications Services; and Legal Services;
• Resource Management Services including: Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; and Travel and Other Administrative Services; and
• Asset Management Services including: Real Property Services; Materiel Services; and Acquisition Services.

Internal Services
Planned Spending (net) and Human Resources (FTEs)
2010-11		2011-12		2012-13
$306.0 M	2,031 FTEs	$299.4 M	2,031 FTEs	$298.3 M	2,031 FTEs

Planning Highlights

Service Excellence

AAFC recently established the Service Policy and Transformation (SPT) Directorate to help implement AAFC's Service Excellence agenda within the department and with federal, provincial and territorial partners. This new directorate will work to develop and adopt common business processes to better serve clients.

AAFC will deliver on a suite of Service Excellence projects and initiatives based on client feedback. To access AAFC's 2007 producer and client satisfaction survey, visit http://www.agr.gc.ca/satisfaction-survey.

Management of Grants and Contributions Program

In 2008, the Government of Canada introduced its Action Plan to Reform the Administration of Grant and Contribution (G&C) Programs. As a result, AAFC launched its Centre of Program Excellence (COPE) to centrally coordinate and integrate its approach to program management across the department. COPE will build program management capacity by providing advice, guidance, training, and standardized tools to program staff to design, deliver and implement G&C programs. Responsibilities also include maintaining the contribution agreement registry, co-ordinating recipient audits, and monitoring and reporting of programs that are cost shared with the provinces and territories. The overall objective is to simplify administration while strengthening accountability and risk-based approaches for managing programs.

Human Resource Management

AAFC's human resources framework evolves to support changing business, policy, program, and people management priorities. Specific human resources plans and initiatives support the achievement of all strategic objectives and are critical to the department's capacity to deliver on business goals and provide excellent results to Canadians. AAFC's 2009-12 Integrated Business-Human Resources Plan addresses current and emerging priorities, with emphasis on:

• making progress on the four key priorities in the Clerk of the Privy Council's Public Service Renewal Action Plan: Integrated Planning, Recruitment, Employee Development and Enabling Infrastructure;
• addressing employee concerns raised during the most recent Public Service Employee Survey; and
• ensuring AAFC's workforce reflects the diversity of Canadian society and serves Canadians in both official languages.

Financial Management

AAFC is working to implement the Treasury Board Secretariat's Financial Management Policy Suite. As the proposed new and revised policy instruments and directives are issued, AAFC will assess their implications, impacts and effects in relation to the current instruments. Once identified, these changes will be highlighted and presented to senior management with a recommended implementation plan. This plan is also aimed at continuously improving the quality of financial reporting and strengthening the financial management capability.

Investment Planning and the Management of Projects

AAFC is developing a five-year Investment Plan (2010-2015) to comply with Treasury Board's new policies on Investment Planning and the Management of Projects. The new policy on Investment Planning - Assets and Acquired Services replaces the previous policy on Long Term Capital Planning. In developing this plan, AAFC has shifted away from a focus on capital planning that was asset-centric to one that is outcome-centric and provides a comprehensive view of the department's investments. Effective investment planning ensures that resources are allocated in a manner that clearly supports program outcomes and government priorities.

Correspondingly, the Policy on the Management of Projects assesses both the risk of the project and the department's capacity to manage and deliver on the projects. To effectively support and advance AAFC's capacity, the department is developing and maturing the departmental project management framework (PMF) to strengthen its rigour and discipline associated with managing projects. This will include an integrated departmental level approach for consistent practices in governance, training, monitoring of projects and reporting.

Information Management and Information Technology

The department will continue to manage and deliver Information Management and Information Technology (IM/IT) products and services through the AAFC IM/IT business model, an IM/IT Activity Architecture, strong governance and a project management (PM) framework. The PM framework will include a departmental level approach for consistent practices in governance, training, monitoring of projects and reporting. The overall approach for the management and delivery of IM/IT products and services will help ensure that departmental investments are aligned to departmental priorities, while optimizing departmental IM/IT expenditures. As AAFC moves forward, work will be focussed on meeting AAFC's business needs and alignment with Government of Canada standards and initiatives such as Shared Services.

Internal Audit and Evaluation Service

Full implementation of the Treasury Board Secretariat's (TBS) Policy on Internal Audit has been achieved, so the focus in 2010-11 will be to increase the number of assurance reports completed. The department has now embarked on implementation of the 2009 TBS Policy on Evaluation and aims also to increase the number of completed evaluation reports in 2010-11. Finally, the department will complete assurance work related to AAFC's programs under Canada's Economic Action Plan.

Portfolio Co-ordination

AAFC will continue to foster policy co-ordination and promote collaboration among the partner organizations of the Agriculture and Agri-Food Portfolio.

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