ARCHIVED - RPP 2007-2008
Agriculture and Agri-Food Canada

• Previous Page
• Table of Contents
• Next Page

This page has been archived.

SECTION I - OVERVIEW

Message from the Minister

The Honourable
Chuck Strahl

As Minister of Agriculture and Agri-Food, I am proud of our efforts to work together with all stakeholders to secure a bright future for Canada's farm families and the sector. In fact, collaboration is the hallmark of this portfolio. By our concerted action, we are making great strides in helping Canada's farmers overcome immediate pressures, while putting the sector on a solid foundation for the long-term.

The portfolio includes Agriculture and Agri-Food Canada, the Canadian Food Inspection Agency, the National Farm Products Council, the Canadian Dairy Commission, the Canadian Grain Commission and Farm Credit Canada. While the organizations within the portfolio have different mandates, they share a common purpose: to make our agriculture and agri-food sector stronger, more competitive and sustainable into the future. Under my direction, we are working efficiently and effectively in the interests of all Canadians.

Over the coming years, the development and implementation of the next generation of agriculture and agri-food policy will be key to the sector's success. Our producers need continuously updated policies and programs from governments to help them thrive in the rapidly-evolving economy and manage the inherent risks of the business. I am counting on the energy and expertise of the agriculture and agri-food portfolio to translate these new policy directions into a prosperous reality in Canadian agriculture and agri-food.

To this end, I'm pleased to present to Parliament and Canadians this report, which charts the direction that Agriculture and Agri-Food Canada will take over the next three years to strengthen the Canadian agriculture and agri-food sector.

We are starting on solid ground. In Budget 2006, we allocated an incremental $1.5 billion to the sector, including significant direct assistance to farmers and their families. We are bringing in major improvements to business risk management programming for producers, particularly as we move to reshape and replace the original Canadian Agricultural Income Stabilization program with a new margin-based income stabilization program that is more predictable, responsive and bankable for our farmers, and added a new and separate disaster relief framework to the business risk management suite. We also enhanced cash advance programming and helped farmers recover from flood damage.

Over the coming months, we will continue to implement Agriculture and Agri-Food Canada's new Strategy for Science and Innovation that will support existing and new research networks and help industry move into promising new markets, like biofuels and bioproducts.

New initiatives like the Agri-Opportunities Program are strengthening support for science and innovation, and helping push new products, including agricultural, food and bioproducts processes and services along the innovation chain and into the marketplace.

Protecting the environment is a priority for Canada's New Government, and Agriculture and Agri-Food Canada is doing its part by promoting the development of biofuels and other bioproducts. We are committed to developing a strong renewable fuels sector in Canada in which farmers can take an active role. Programs such as the new Capital Formation Assistance Program for Renewable Fuels Production and the Agricultural Bioproducts Innovation Program are designed to help producers make the most of these new market opportunities, ensuring that we can meet our regulatory commitment of an annual average of five per cent renewable content in gasoline by 2010, and two per cent in diesel fuel and heating oil by 2012.

In 2007, we will also continue to pursue our agricultural interests internationally, at the World Trade Organization and through a reinvigorated regional and bilateral trade agenda. Future prosperity for our farmers will depend on our ability to strengthen the rules which govern international agricultural trade. The reduction of trade-distorting subsidies and the achievement of enhanced market access opportunities for our exporters will remain key objectives for Canada. So too will be our continued strong support for Canada's supply management system, which constitutes an integral part of our agricultural sector.

Underlining all our efforts for the sector is our work with the provinces, territories, industry and Canadians to develop the next generation of agriculture and agri-food policy, which will replace the existing Agricultural Policy Framework expires. We began an extensive consultation process in December 2006, and we will continue to consult with producers and all interested stakeholders in 2007 as we develop policies and programs that will ensure a competitive and profitable agricultural sector for years to come.

We are on the threshold of the best years yet for agriculture. I look forward to working collaboratively to continue to bring positive change for Canadato Canada's agricultural and agri-food sectors.

The Honourable Chuck Strahl, PC, MP,
Minister, Agriculture and Agri-Food and Minister for the Canadian Wheat Board

Management Representation Statement

We submit for tabling in Parliament, the 2007-2008 Report on Plans and Priorities (RPP) for Agriculture and Agri-Food Canada.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2007-2008 Estimates: Reports on Plans and Priorities and Departmental Performance Reports.

• It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
• It is based on the department's Strategic Outcomes and Program Activity Architecture that were approved by the Treasury Board;
• It presents consistent, comprehensive, balanced, and reliable information;
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
• It reports finances based on approved planned spending numbers from the Treasury Board Secretariat.

Leonard J. Edwards Deputy Minister	Christiane Ouimet Associate Deputy Minister

Program Activity Architecture

In support of a common, government-wide approach to the collection, management and reporting of financial and non-financial performance information, AAFC, like all federal government departments, follows the Management, Resources and Results Structure (MRRS) . The MRRS provides a standard basis for reporting to citizens and Parliament on the alignment of resources, program activities and results, and reinforces the government's commitment to strengthen public sector management and accountability, consistent with the Management Accountability Framework. The MRRS provides departments with the flexibility and discretion they need to design and manage their programs in a manner that best achieves results for Canadians.

A key component of the MRRS is the Program Activity Architecture (PAA), which links departmental resources to strategic outcomes.

A strategic outcome is defined as a long-term and enduring benefit to Canadians that stems from a department's or agency's mandate and vision. It should be measurable and within the department's sphere of influence.

The PAA also establishes performance measures for reporting to Parliament, thus linking areas of expenditure with performance. It is essentially an inventory of all the programs and activities undertaken by a department or agency. These programs and activities are organized in a logical and hierarchical relationship to each other and to the strategic outcomes to which they contribute.

AAFC's PAA links financial and non-financial information, and articulates how the department's work contributes to its three strategic outcomes. As part of the ongoing development of its PAA, AAFC measures expected results and indicators for each activity. These expected results and indicators are presented in Section II of this report.

It is important to note that AAFC's PAA is a dynamic structure that reflects the evolving nature of the department and will change to reflect the direction of the department and changing performance measurement approaches.

Summary Information

Mandate

AAFC provides policies, programs, information, and technology to achieve its three strategic outcomes:

1. Security of the Food System;
2. Health of the Environment; and
3. Innovation for Growth.

The department's work toward achieving these outcomes is concentrated in areas of core federal jurisdiction, including supporting agricultural and agri-food productivity and trade, stabilizing farm incomes, conducting research and development, and being responsible for the inspection and regulation of animals and plant-life forms. The Minister of Agriculture and Agri-Food is also responsible for co-ordinating rural development and enhancing the quality of rural life.

In addition to AAFC, there are six other organizations that fall under the Minister's portfolio:

• the Canadian Wheat Board (CWB)
• the Canadian Dairy Commission (CDC)
• the Canadian Food Inspection Agency (CFIA)
• the Canadian Grain Commission (CGC)
• Farm Credit Canada (FCC)
• the National Farm Products Council (NFPC) .

These agencies provide advice and guidance to the Minister on issues including food inspection, plant protection and animal health, the financing of farm operations, milk quotas and dairy subsidies, the overall grain handling system and associated standards, and the marketing of farm products.

Departmental Resources (Total Net Planned Spending)

2007-2008		2008-2009		2009-2010
$ millions	FTE *	$ millions	FTE	$ millions	FTE
2,754.2	6,564	1,741.9	6,565	1,704.3	6,566

* Full Time Equivalents

Departmental Program Activities by Strategic Outcomes

		Planned Spending (Net)
Strategic outcomes/Program Activity	Type	2007-2008	2008-2009	2009-2010
Security of the Food System
Business Risk Management	Ongoing	1,518.9	1,123.3	1,108.3
Food Safety and Food Quality	Ongoing	119.4	38.9	38.9
Markets and International	Ongoing	78.5	57.1	57.1
National Farm Products Council*	Ongoing	3.8	3.8	3.8
Total Security of the Food System		1,720.7	1,223.2	1,208.1
Health of the Environment
Environment	Ongoing	308.5	158.2	158.2
Total Health of the Environment		308.5	158.2	158.2
Innovation for Growth
Innovation and Renewal	Ongoing	664.3	325.2	302.6
Markets and International	Ongoing	33.7	24.5	24.5
Rural and Co-operatives Secretariats	Ongoing	27.0	10.9	10.9
Canadian Pari-Mutuel Agency*	Ongoing	0.0	0.0	0.0
Total Innovation for Growth		725.0	360.6	337.9
TOTAL		2,754.2	1,741.9	1,704.3

* Note: These are separate agencies that report to Parliament through Agriculture and Agri-Food Canada and contribute to the department's Strategic Outcomes.

The Planned Spending for 2007-2008 is $2,754.2 million compared to $1,741.9 million for 2008-2009, a difference of approximately $1 billion. This is largely attributable to the expiry of the APF in 2007-2008. Significant policy and program development work will be required in 2007-2008 to ensure the next generation of Canadian agriculture and agri-food policy is developed, negotiated and ready to implement in 2008.

The figures have been rounded to the nearest millions of dollars. Figures that cannot be listed in millions of dollars are shown as 0.0. Due to rounding, figures may not add to the totals shown.

Departmental Links to the Government of Canada Outcome Area

($millions)
2007-2008
Program Activity	Budgetary							Ajustments (Planned Spending not in Main Estimates)	Total Net Planned Spending
	Operating	Capital	Grants	Contributions	main Estimates (Gross)	Less: Respendable Revenue	Main Estimates (Net)
Security of the Food System
Business Risk Management	99.0	4.1	5.0	1,164.4	1,272.5	5.5	1,267.0	252.0	1,518.9
Food Safety and Food Quality	47.4	2.2	-	71.4	120.9	1.5	119.4	0.1	119.4
Markets and International	58.7	2.5	-	17.3	78.4	-	78.4	0.1	78.5
National Farm Products Council	3.6	-	0.2	-	3.8	-	3.8	0.0	3.8
Total Security of the Food System	208.7	8.7	5.2	1,253.1	1,475.7	7.0	1,468.6	252.1	1,720.7
Health of the Environment
Environment	210.8	9.9	-	111.0	331.7	23.5	308.2	0.3	308.5
Total Health of the Environment	210.8	9.9	-	111.0	331.7	23.5	308.2	0.3	308.5
Innovation for Growth
Innovation and Renewal	262.0	8.9	193.5	147.4	611.9	15.0	596.9	67.4	664.3
Markets and International	25.2	1.1	-	7.4	33.6	-	33.6	0.0	33.7
Rural and Co-operatives Secretariats	19.2	-	-	7.8	27.0	-	27.0	0.0	27.0
Canadian Pari-Mutuel Agency	15.0	-	-	-	15.0	15.0	-	-	-
Total Innovation for Growth	321.3	10.0	193.5	162.6	687.4	29.9	657.5	67.5	725.0
Total	740.8	28.6	198.7	1,526.7	2,494.8	60.5	2,434.3	319.9	2,754.2

Program Activity Business Risk Management contributes to the achievement of the Government of Canada's Economic Affairs: Strong Economic Growth outcome area

Program Activity Food Safety and Food Quality contributes to the achievement of the Government of Canada's Economic Affairs: Strong Economic Growth outcome area

Program Activity Markets and International contributes to the achievement of the Government of Canada's Economic Affairs: Strong Economic Growth and International Affairs: A Prosperous Canada Through Global Commerce outcome areas

Program Activity Environment contributes to the achievement of the Government of Canada's Economic Affairs: A Clean and Healthy Environment outcome area

Program Activity Innovation and Renewal contributes to the achievement of the Government of Canada's Economic Affairs: An Innovative and Knowledge-Based Economy outcome area

Program Activity Rural and Co-operatives contributes to the achievement of the Government of Canada's Economic Affairs: An Innovative and Knowledge-Based Economy outcome area

Program Activity National Farm Products Council contributes to the achievement of the Government of Canada's Economic Affairs: Strong Economic Growth outcome area

Program Activity Canadian Pari-Mutuel Agency contributes to the achievement of the Government of Canada's Economic Affairs: A Fair and Secure Marketplace outcome area

The figures have been rounded to the nearest millions of dollars. Figures that cannot be listed in millions of dollars are shown as 0.0. Due to rounding, figures may not add to the totals shown.

SECTION I - Plans And Priorities Overview

INTRODUCTION

Operating Environment

The agriculture and agri-food sector plays an important role in Canada, from both an economic and social perspective. The sector, which comprises primary agriculture, food and beverage processing, and distribution, including retail and food service outlets, accounts for approximately eight per cent of the country's GDP. It generates about $130 billion in consumer sales in Canada each year. In addition, the sector exported more than $30.5 billion in agriculture and food products (including seafood) in 2006, and contributed almost $7.4 billion to Canada's overall trade surplus. It employs about two million Canadians, representing one of every eight jobs in the country.

Just as important is the sector's contribution to Canada's social fabric and the rural way of life. Canada's farmers, farm families and farming communities are the heart of Canadian agriculture and agri-food, and ensuring the sector has the tools it needs to grow, prosper and be competitive on the world stage is key to a successful economic and social future for Canada and for all Canadians.

There are many issues that affect the state of the sector today and will continue to shape the industry well into the future.

Declining farm income

Despite record-high government payments and a notable growth in productivity within the agriculture and agri-food sector, farm income in Canada has been on a persistent decline in recent years. Realized farm income declined from $3.7 billion in 2001 to a record low level of $423 million in 2003, due largely to a combination of short-term production risks such as animal diseases and natural disasters. It has since recovered somewhat, reaching a forecast high of approximately $1.7 billion in 2006.

Production risks

Disaster comes in many forms for the agriculture and agri-food sector. Recent cases of bovine spongiform encephalopathy and the outbreak of avian influenza in British Columbia in early 2004 led many countries to close their borders to Canadian live cattle and beef and poultry products, creating chaos for farmers and many others in the sector. Plant diseases such as the plum pox virus, which diminishes yields of tree fruit, can be devastating to growers.

Producers also face a host of adverse weather and environmental conditions each year, including drought, excessive moisture, frost, and pests. While weather phenomena can be predicted with some accuracy, their effects on the sector are largely unavoidable. They are part of doing business in Canada's agriculture and agri-food sector.

Environmental responsibilities

Farmers understand the important link between sound farm stewardship practices and a cleaner, healthier environment for all Canadians and healthier food for consumers.

The reduction of risks due to pesticides is important for Canadian farmers and consumers. By developing strategies and registering new uses of reduced risk pest management products, the environment and consumers will benefit, as will the competitiveness of Canadian farmers.

As a contributor of approximately 10 per cent of Canada's greenhouse gas emissions, the agriculture and agri-food sector has a clear role to play in the Government of Canada's broader environmental plans such as the Clean Air Act. By reducing its emissions of air pollutants and greenhouse gases, the sector can help protect human health and the environment while also taking advantage of opportunities to achieve greater operating efficiencies.

By employing science-based innovative and environmentally sound business practices, Canada's agriculture and agri-food sector can achieve significant economic benefits through greater marketability of agriculture and food products and the preservation of the environment and resources on which the sector relies.

Market and trade conditions

Canada produces far more agriculture and food products than it consumes. As a result, the agriculture and agri-food sector and the country rely heavily on export markets. Canada has traditionally found great success internationally, based on the quality and diversity of the goods it produces.

Canada's agriculture and agri-food exports have more than doubled since the early 1990s, with exports of value-added agricultural products more than quadrupling over this period. This growth is expected to continue, with the emergence of the burgeoning middle class in countries such as China and India.

However there is growing competition for market share around the world. Canadian producers are forced to compete against subsidized products from the United States and European Union, and also face market pressure from emerging countries, such as Brazil, that are increasingly capitalizing on their lower production costs. At the same time, technological advances and productivity growth have expanded the capacity of many other countries to produce agricultural commodities faster than the growth in demand, resulting in surpluses and a decline in some commodity prices.

The Government of Canada remains actively engaged in efforts to achieve a successful outcome at the World Trade Organization (WTO) agriculture negotiations. Canada remains deeply committed to the WTO and to advancing the interests of Canada's agriculture and agri-food sector, including both supply-managed and export-oriented industries. When necessary, Canada will also promote and defend the sector's interests through dispute settlement at the WTO.

Consumer preferences

Meeting the ever-changing demands of consumers requires flexibility on the part of the entire sector. Increased public concern about food safety issues has raised awareness within the sector of the need to adopt common industry standards at the farm and processing levels. Consumers are also taking an active interest in how their food is produced, providing opportunities for products and food produced in environmentally friendly ways. Producers, processors, governments, and everyone involved in Canadian agriculture and agri-food will find continued success by adapting to the needs and requirements of domestic and international consumers.

Innovation and new markets

Canada's agriculture and agri-food sector has a long and accomplished history of scientific research and innovation, and today as much as ever it is science and innovation that hold the key to the long-term profitability and competitiveness of the sector. Through new products, new uses, new markets and new solutions, the agriculture and agri-food sector has increasing opportunities to provide social and economic benefits for Canada and for all Canadians.

There is a growing understanding of the link between agriculture and human health, and of the role agriculture, food and nutrition can play in disease prevention and wellness to reduce health care costs. Food safety and quality are ongoing concerns for consumers and the industry, and the knowledge derived from science will play an essential part in the development and implementation of tracking and tracing and identity preservation systems. Agriculture science and innovation will also vield new agricultural management practices that enhance environmental sustainability, and support Canadian farms' and agri-industries' international competitiveness and productivity in the export sector.

In addition, agriculture will be a central player in the Government of Canada's new biofuel strategy, as it aims to regulate an annual average renewable content of five per cent renewable fuel content in gasoline by 2010, and two per cent in diesel fuel and heating oil by 2012.

Indeed, the entire bio-economy holds great promise for Canada's agriculture and agri-food sector. The decreasing cost of biomass, and advances in process technology that allow sustainable mining of biomass as an industrial feedstock are driving new industries in Canada to generate bio-energy and bioproducts. The agriculture and agri-food sector will be a major contributor of the biomass needed to fuel this emerging industry.

The APF and the next generation of agriculture and agri-food policy

Since 2003, AAFC has worked through the APF to meet many of the challenges in today's agricultural climate and to address the needs of Canada's agriculture and agri-food sector.

The APF helped to create a national approach to agriculture and agri-food policy. It was designed to help the sector seize opportunities from globalization and increase Canadian competitiveness in markets at home and abroad by becoming the world leader in: meeting burgeoning consumer demands for safe food and environmental stewardship; earning market premiums for high-quality foods; developing innovative products through investments in science; and building market recognition of the quality and value of our products.

The framework is made up of five complementary elements: 1) Business Risk Management , 2) Food Safety and Quality , 3) Science and Innovation , 4) Environment , and 5) Renewal . The framework also supports action in the international arena to help the sector capitalize on domestic strengths and successes. In fiscal year 2007-2008, AAFC will continue to work through the policies and programs in place under the APF to enhance the long-term profitability, competitiveness and sustainability of the sector.

As the APF in early 2008 in March 2008, the department, along with its portfolio partners and provincial and territorial governments, is working in concert with stakeholders to develop the next generation of agriculture and agri-food policy.

Our Strategic Response

With the development and implementation of the joint federal, provincial and territorial APF, governments recognized that a comprehensive and co-ordinated strategy was needed to ensure future profitability, sustainability and competitiveness for Canadian agriculture and agri-food.

The framework provides a stable platform of policies and programs to help the sector meet its challenges, and make the most of its opportunities. It established a new policy direction for governments and industry by enabling a full shift towards a whole-farm approach.

The major strategic policy development focus in the department for 2007-2008 and beyond will be on developing and implementing the next generation of agriculture and agri-food policy, to support an industry that is market driven, innovative and efficient, enabling the sector to seize opportunities across the value chain and strengthen Canada's position in the global market place. In doing so, AAFC will contribute to the economic agenda of the Government of Canada in supporting greater opportunities for Canadians.

Within the framework of agriculture and agri-food policy the department seeks to achieve results under its three strategic outcomes - (1) Security of the Food System, (2) Health of the Environment and (3) Innovation for Growth. During the next three years, informed by the consultations on the next generation of agriculture and agri-food policy, AAFC and its portfolio partners will pursue key program activities under each of these three strategic outcomes to advance the agriculture and agri-food agenda and ensure the best quality of life for all Canadians.

Strategic Outcome: Security of the Food System: A secure and sustainable agriculture and agri-food system that provides safe and reliable food to meet the needs and preferences of consumers

Program Activity: Business Risk Management

Farming in Canada requires a comprehensive and proactive approach to managing risk. Through business risk management (BRM) programming, AAFC, together with provincial and territorial governments and industry, works to enhance producers' capacity to manage risk, and increase the sector's viability and profitability.

Under the APF, the Government of Canada agreed to invest $1.1 billion every year for five years in BRM programs that directly assist farmers in managing business risks, such as those posed by weather, disease and changing market conditions.

BRM was based on two core programs: a margin-based program called the Canadian Agricultural Income Stabilization (CAIS) program and Production Insurance (PI) . These programs were designed to work together to help producers manage the business risks associated with farming.

The margin-based income-stabilization program offers protection from overall declines of farm income because of circumstances such as low prices and rising input costs, whereas PI offers protection for production losses related to specific crops or commodities caused by hail, drought, flooding, disease and other factors.

During the past year, significant progress has been made on a new suite of BRM programs to address concerns identified by producers. Vast improvements have been built into what is becoming a new income stabilization program. Federal, provincial and territorial agriculture ministers have agreed in principle on a separate disaster relief framework. In 2007-2008 AAFC will continue to work with partners to complete the replacement of the CAIS program with a new income stabilization program (ISP) and a new and separate disaster relief program.

At the same time, federal, provincial and territorial governments will continue in 2007-2008 to examine options for considering the extension of coverage under PI to livestock and additional horticulture crops.

The margin-based ISP and PI are complemented by Financial Guarantee programs , including the temporary Enhanced Spring Credit Advance Program (ESCAP) and the new Advance Payments Program (APP) , as well as the Farm Improvement and Marketing Cooperatives Loan Act (FIMCLA) program, the Price Pooling Program (PPP) , and the Private Sector Risk Management Partnerships (PSRMP) program.

Under Bill C-15, an Act to amend the Agricultural Marketing Programs Act (AMPA) , the original Spring Credit Advance Program and the APP have now been combined into one, new APP program which will be implemented through 2007-2008. This new program allows producers of other commodities and livestock to be eligible for benefits under the program providing interest-free advances up to $100,000 in the spring to offset input costs and a maximum $400,000 advance in the fall. In the interim of the new APP being implemented, the ESCAP was announced in May 2006 to make more money available to producers. It will expire in September 2007 as the new APP is implemented.

The Farm Improvement Marketing and Cooperatives Loan Act program provides producers with access to credit to improve farm assets, strengthen production, and improve the financial viability of their farms. Through the program, loans of up to $250,000 for producers and $3 million for Farm Products Marketing Co-operatives owned by active producers are guaranteed by the federal government. The FIMCLA program will be examined, based on the results of consultations done in 2006-2007, to see how changes can be implemented in 2007-2008 to better support beginning farmers, intergenerational farm transfers and agricultural co-operatives.

The Price Pooling Program provides a price guarantee to marketing agencies for agricultural products. The guarantee protects the marketing agencies and its producers against unanticipated declines in the market price of their products. The agencies can then use the guarantee as security to obtain credit from a lender.

The Private Sector Risk Management Partnerships program is designed to help the agriculture and agri-food sector develop risk management products and services that can be delivered by the private sector.

The federal government has put programs in place, which are continuing into 2007-2008, in response to disaster situations, such as the plum pox virus, Golden Nematode and excessive moisture and flooding. Officials will continue to monitor conditions across the country to allow the federal government to react quickly and appropriately when future disasters occur.

Program Activity: Food Safety and Food Quality

Canadians in general have a high degree of trust in Canada's food regulatory system and are confident that it will protect them from food borne illnesses. At the same time, consumers are increasingly seeking more information and greater assurances about the safety, quality and nutritional value of the food they eat.

To this end, informed by the consultations on the next generation of agriculture and agri-food policy, AAFC will work with portfolio partners, other federal government departments, provincial and territorial governments, industry, and consumer groups to build on existing food safety and quality measures. Over the next three years, the department will continue this work (for example, traceability) and will increasingly focus attention on the links between agriculture and health. This will improve the sector's ability to identify and respond to food safety issues and concerns, while improving market access and opportunities for the sector.

Ensuring consumers' trust is maintained, and providing them with healthy, nutritious products, are vital to ensuring the stability and success of Canada's agriculture and agri-food sector, and helping all Canadians achieve the best quality of life.

Specifically, AAFC will:

• work in collaboration with portfolio partners, provincial governments and Health Canada to improve the conditions for the development of innovative food and nutritional products, by building a strong science base that supports new product development, and by making the entry to market of healthy products more efficient. This will be achieved through partnerships to improve stakeholder and government capacity for the development, submission, approval and commercialization of innovative food products with enhanced health attributes. This will enhance human health and consumer confidence while allowing Canada's agriculture and agri-food sector to position itself to compete in a rapidly growing global market for functional foods;
• work in partnership with the CFIA to continue to improve safety and security of the food system through detection, monitoring and control of food hazards and the development of preventative safety approaches to mitigate risks; and
• continue to play a lead role in developing integrated management strategies to enhance quality and value, while ensuring that Canada's food products can be traced through every link of the production chain.

Enhancing Canada's food safety and quality systems will require AAFC to continue to work with its portfolio partners, such as the CFIA, and other federal organizations, provincial and territorial governments, and producers and processors, for a horizontal and cohesive approach.

Program Activity: Markets and International

Canada is a trading nation, and the agriculture and agri-food sector plays a significant role in the country's trade success. For the sector, continued success in world markets can be further enhanced by international recognition of Canadian actions in food safety and quality, environmental stewardship, innovation and investment in new products. Not only will this approach benefit those Canadians earning their livelihoods from agriculture and agri-food, it will further enhance the sector's important contribution to Canada's positive trade balance, for the benefit of all Canadians.

The sector faces a variety of pressures in the constantly changing global marketplace. Consumers are becoming increasingly discriminating in their food purchases, placing new demands for safety, quality and health attributes on the foods they choose. There is also growing competition in the global marketplace from countries where production costs are lower than they are in Canada, and where trade-distorting domestic subsidies are provided to producers, causing overproduction of commodities and market distortions. Further, the rules governing trade in agriculture and food products are not consistently followed by all trading nations and need to be strengthened. Canada must continue to work on the international stage toward achieving a more level playing field for the Canadian agriculture and agri-food sector.

The Government of Canada will pay very close attention to the development of the next U.S. Farm Bill, which will take place over the course of 2007, and engage as appropriate to encourage the U.S. to undertake initiatives that are not trade distorting. For example, Canada's request for WTO consultations on U.S. corn and other subsidies has been characterized by U.S. proponents of farm bill reform as helpful in putting pressure on the U.S. to modify its programs to bring them into line with United States' international trade commitments.

At the World Trade Organization (WTO), Canada is seeking the elimination of all forms of export subsidies, the substantial reduction of trade-distorting domestic support, and real and significant market access improvements. While progress in the WTO Doha Round will require key WTO members to resolve significant differences in their negotiating positions, including in respect of agriculture, Canada strongly supports efforts to achieve an ambitious result.

Regional and bilateral trade initiatives will also be important for the future prosperity of Canada's agriculture sector, and serve to complement and reinforce the WTO multilateral system. For this reason, Canada is reinvigorating its efforts to negotiate regional and bilateral trade agreements which serve the commercial interests of the sector and the country. From the perspective of ensuring Canadian competitiveness, a more active regional and bilateral agenda will help to ensure that we both maintain and create new market access opportunities for our exporters.

Moving forward, the Government of Canada will continue to consult with provinces and the full range of agriculture and agri-food industry stakeholders about how best to achieve the country's agricultural trade policy objectives.

To realize the intended outcomes from international activities related to the Security of the Food System, informed by the consultations on the next generation of agriculture and agri-food policy, AAFC will focus during the next three years on:

• pursuing a multi-faceted trade policy agenda, including securing and enhancing market access through trade negotiations at the WTO;
• advancing the development and implementation of an enhanced regional and bilateral trade agenda;
• advancing the implementation of traceability within the agriculture and agri-food system, in collaboration with industry; and
• working closely with provinces and the industry to further integrate the Canada Brand Promise into international market development strategies and activities to advance Canada's image in key markets abroad.

Program Activity: National Farm Products Council

The National Farm Products Council (NFPC) promotes efficient, competitive Canadian agriculture. It helps to improve farm-product marketing between Canadian provinces and territories and internationally. It is an agency that reports to Parliament through the Minister of Agriculture of Agri-Food.

The Council supervises the operations of four national marketing agencies, ensuring they work best for producers and consumers. These four agencies manage the supply of Canadian chicken, turkey, eggs, and broiler-hatching eggs. They implement and administer marketing plans, allocate production quotas, and generate their revenues through levies.

The NFPC also supervises the operation of the beef cattle promotion and research agency. This agency promotes beef marketing through advertising, promotion and consumer education programs, and through product and nutrition research. This agency implements its promotion and research plan and generates its revenues through levies, commonly called "national check-offs."

The Council will also supervise any other national marketing agency or promotion and research agency established under the Farm Products Agencies Act.

Strategic Outcome: Health of the Environment: An agriculture and agri-food sector that uses environmental resources in a manner that ensures their sustainability for present and future generations

Program Activity: Environment

In 2006-2007, AAFC worked to put in place the final environmental components of the existing APF, and accelerate the implementation of some environmental programs, particularly those covered by recently concluded APF implementation agreements.

The 2007-2008 fiscal year will require the department to look ahead to determine how to best address environmental challenges under the next generation of agriculture and agri-food policy, while also continuing implementation of existing programs and determining how AAFC can best fit into broader government-wide environmental initiatives, such as the strategy for increased production and use of biofuels, and Canada's Clean Air Act.

In addition, the department will develop transition plans for those existing environmental programs that continue under the new policy. These plans will be put into action next year, as the new policy is rolled out.

AAFC has a key role to play in Canada's biofuels strategy. During the next few years, the department will work to develop cost-effective management practices and technologies to help the sector capture the economic benefits of greater reliance on biofuels. The department must consider ways to assist the sector in enhancing its own environmental performance through application of the strategy. To this end, AAFC will partner with other departments and agencies to develop an overall approach to biofuels that identifies and enhances environmental benefits in support of economic gains for Canadian farmers and the agriculture industry.

Working together with its portfolio partners as well as provincial and territorial partners and industry, AAFC will continue to further efforts towards achieving the Government of Canada's goals on environmental sustainability of the sector and improved stewardship of soil, water, air, and biodiversity. Informed by the consultations on the next generation of agriculture and agri-food policy, the focus of these activities during the next three years will include:

• developing and implementing innovative policy options to achieve environmental goals under the next generation of agriculture and agri-food policy, including a biofuels strategy;
• continuing to support environmental farm plans and the development and adoption of on-farm beneficial management practices through financial and technical assistance;
• developing an AAFC water strategy related to agricultural sustainability through the Prairie Farm Rehabilitation Administration ;
• developing the scientific knowledge and understanding needed to improve the environmental performance of the Canadian agricultural system, by fostering greater scientific collaboration among partners, and developing an enhanced understanding of the country's bioresources and their protection;
• completing implementation of the National Land and Water Information Service ; and
• reducing the risks due to pesticides by developing commodity specific strategies and by making available new uses of reduced risk minor use products.

By managing the effects of agriculture on the environment, producers can not only contribute to a better quality of life for Canadians, but they can also better sustain their operations and improve their environmental performance. AAFC will continue to work with provincial and territorial partners and industry on projects and policies designed to promote sustainable, economically viable and environmentally sound activities from the farm level and up the value chain. Canada is committed to improving the environment, and AAFC will help Canada achieve that goal.

Strategic Outcome: Innovation for Growth: An innovative agriculture and agri-food sector that develops food and other agriculture-related products and services in order to capture opportunities in diversified domestic and global markets

Program Activity: Innovation and Renewal

New knowledge is essential to increased farm profitability, sustainable growth, competitiveness of the agriculture and agri-food sector, and economic success of rural communities. Science generates knowledge on which the sector can build innovations to achieve greater job creation, profitability and competitiveness. Innovation transforms that knowledge into benefits for Canadians. It is the process by which ideas for new and improved products and services are developed and commercialized in the marketplace.

The application of science and innovation is aimed at transforming the sector by equipping it with new business and management skills, helping it become a leader in the bio-economy and application of bioproducts, assisting with the development of new knowledge-based production systems, and developing strategies to capture opportunities and manage change.

During the next three years, informed by the consultations on the next generation of agriculture and agri-food policy, the AAFC Science & Innovation Strategy will be implemented and further developed by focusing science and innovation investment on national research priorities identified in the strategy. Excellence in science will be pursued by developing and applying the highest and best standards of scientific excellence through external peer review of research proposals, and by developing a capabilities-driven, authoritative, and document-based science planning and reporting system.

Traditional food and feed markets remain key to Canadian agriculture, but future success for the sector lies in more than food and food products. Significant opportunities for growth also exist for non-food products, such as biomaterials, biomedical products, biohealth products, bioenergy products, biochemicals, and biopharmaceuticals.

For example, biofuels is a key element of the energy, environmental and economic agenda for the Government of Canada. AAFC is working in partnership with other science and research providers to explore the more efficient use of farm-based feedstocks for ethanol and biodiesel production and the use of waste products to generate methane gas for energy production. In the longer-term, the department aims to help integrate biofuels production into biorefinery processes that produce fuels and a variety of high-value co-products from biomass, thereby creating improved economic opportunities for farmers and the agriculture and agri-food sector while also addressing energy and environmental goals.

Indeed, there is a recognition among stakeholders of the need to take a collaborative approach to address issues facing the sector and make the most of opportunities that are becoming increasingly complex, interrelated and multidisciplinary in nature. To this end, AAFC, along with its portfolio partners, will continue its efforts to build an integrated national science capacity and focus research on the creation of new non-food products that will generate economic, social and environmental benefits for all Canadians.

During the next three years, informed by the consultations on the next generation of agriculture and agri-food policy, the department will also work to develop and implement new partnership strategies and architectures with other federal departments and provincial, academic and industrial organizations for the benefit of all Canadians. These science partnerships will be promoted by the development and delivery of a proactive outreach program. AAFC, together with its partners, will also work to develop complete innovation chains to transform scientific and technical knowledge and know-how into benefits for Canadians. Science and innovation clusters will be formed that bring together the stakeholders that will form complete innovation chains to maximize the return on investment.

AAFC will also participate in the development of the Government of Canada's science policy framework. The department will participate and provide leadership where necessary in working with other federal departments to develop and implement a national science and technology strategy.

Linked with advances in science and technology is continuous learning, designed to help ensure producers have the skills, knowledge and tools required to capitalize on new opportunities and increase farm profitability.

To this end, AAFC offers several renewal programs for producers and their families which are aimed at increasing their knowledge and use of business management practices as well as developing a clear understanding of their business and personal goals.

Renewal programs also provide producers with access to a confidential, on-line benchmarking tool that allows them to compare their farm data with other farms of similar specialization and size within their region.

In addition, in 2006-2007 the Government of Canada launched the Canadian Farm Families Options Program , which works hand-in-hand with renewal programs at AAFC. The program provides the income support necessary for farmers to take advantage of opportunities to increase their business management capacity through such means as engaging in a farm business assessment or in the development of an individual learning plan that could lead to improved on- or off-farm income.

In 2004, AAFC launched the Advancing Canadian Agriculture and Agri-Food (ACAAF) program. The ACAAF program is a five-year, $240 million program designed to position Canada's agriculture and agri-food sector at the leading edge of new opportunities. The program provides funding for regional and national projects designed and implemented by the sector.

AAFC will continue to deliver renewal programs and will work to develop new options for the next generation of agriculture and agri-food policy. AAFC will make programs more easily accessible in various areas, including farm business advisory services, awareness, skills development, and access to capital, and will work with other players including FCC.

Program Activity: Markets and International

Canada's agriculture and agri-food sector has the potential to build on its reputation as a reliable supplier of products that meet and exceed consumer expectations. Realizing this potential - both at home and around the world - will require a focused, determined and innovative approach by governments and industry.

As mentioned, there are numerous market and trade challenges facing the sector. Globalization has made world markets more competitive as new, low-cost producers expand production. Market access is undermined by trade-distorting practices and circumvention of trade protocols. Consumers continue to raise the bar on food safety and quality, humane production systems for livestock and expectations for environmentally sustainable land management practices.

Canada's agriculture and agri-food sector has an opportunity to meet these challenges, while maximizing and capturing opportunities in domestic and international markets, by building on its
strengths and established reputation.

As such, a key to success for the sector will be the implementation of a branding strategy designed to build on its strengths and on Canada's reputation as a supplier of safe and high-quality food and food products. In 2007-2008, AAFC will continue to work closely with industry toward the implementation and integration of this strategy, as well as the development of other long-term strategies designed to bring increased market success to the sector.

The department will also work to strengthen international market and development relationships, and implement international market engagement, international development and international scientific co-operation strategies, as it helps the sector continue to take advantage of new and existing export opportunities.

Program Activity: Rural and Co-operatives

There is an obvious connection between a healthy and vibrant rural Canada, and a strong and prosperous agriculture and agri-food sector. It takes an entire network of rural communities in Canada to support a resource-based sector like agriculture; without those communities the huge contributions of the sector would be reduced. To ensure the sector remains strong, rural issues and priorities must receive due attention and consideration when policies, programs and legislation are developed.

Part of AAFC's mandate is to support rural community development, which is pursued in partnership with the complementary mandates of other federal departments. As the federal lead on this horizontal initiative, AAFC will, during the next three years, identify rural community development priorities and implement an action plan responding to those priorities. Information requirements and tools to support rural development in Canada will also be provided.

The AAFC mandate also includes co-ordination of federal government initiatives that support co-operative development. Canada has 9,200 co-operatives serving more than 10 million citizens in different sectors of the social economy such as housing, childcare, financial services, and agriculture. There are approximately 1,200 agricultural co-operatives with a combined membership of 380,000 independent farmers. Agricultural co-operatives employ 34,000 people and possess 15 to 20 per cent of the market for farm procurement, processing and marketing of farm products. They generate $14 billion per year in revenue and play a key role in the viability of rural communities.

During the next three years, AAFC will focus on providing expert assistance and advice to groups that want to start new co-operatives, or that need help to manage existing ones. AAFC will also focus on studying and demonstrating how co-operatives can be used in innovative and successful new ways.

Program Activity: Canadian Pari-Mutuel Agency

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. This function is delivered through the Canadian Pari-Mutuel Agency (CPMA), a special operating agency within AAFC.

A comprehensive regulatory framework and governance review is underway at the CPMA. The objective of the review, launched in 2006-2007, is to ensure the most modern, effective and efficient approach to protecting the betting public as it pertains to pari-mutuel wagering on horse races across Canada. The review is being informed through broad-based stakeholder outreach, including consultations with provincial regulatory bodies, the Canadian horse-racing industry and the Canadian betting public.

The Next Generation of Agriculture and Agri-Food Policy

As mentioned, with the APF expiring in March 2008, the department and provincial and territorial governments are working in concert with stakeholders to develop the next generation of agriculture and agri-food policy, to support an industry that is market driven, innovative and efficient, enabling the sector to seize opportunities across the value chain and strengthen Canada's position in the global marketplace.

The 2007-2008 fiscal year will see an even greater focus on this work, in preparation for the transition from the APF to the next generation of agriculture and agri-food policy. AAFC and provincial and territorial partners will consult with a wide range of stakeholders, including industry associations and grassroots producers, processing, retail and food service industries, agricultural value chain players, consumers and experts from academia and think tanks, to develop and refine policy options to support a competitive and prosperous agriculture and agri-food sector.

To this end, AAFC will continue to work with its portfolio partners and its partners in industry and government on a new policy framework to support programs and other initiatives aimed at:

• helping the Canadian industry to stay ahead of competitors;
• meeting evolving consumer demands;
• developing non-food products, linking with other sectors in the bio-economy , creating solutions to environmental issues and capitalizing on the service-based aspects of the farm entity; and
• fostering prosperity and opportunity.

Our Management Priorities

AAFC conducts its operations with the accountability, transparency and oversight called for in the Federal Accountability Act and Action Plan and associated federal government measures. These new measures include streamlining financial management policies, strengthening access to information legislation, reforming the procurement of government contracts, strengthening auditing and accountability within departments, and ensuring a fair, economical and efficient delivery of grants and contribution programs.

AAFC is also responding to the new Management, Resources and Results Structure (MRRS), which supports of a common, government-wide approach to the collection, management and reporting of financial and non-financial performance information. The MRRS provides departments with the flexibility and discretion they need to design and manage their programs in a manner that best achieves results for Canadians. Through the MRRS, management and accountability, in accordance with the Management Accountability Framework, will be reinforced at AAFC.

Tying into the MRRS is the department's comprehensive Strategic Planning and Accountability Framework. It consists of five interdependent components: Accountabilities and Responsibilities, Strategic Planning, Comptrollership and Financial Management, Results-based Management Framework (MAF), and Managing in a Matrix Environment.

The framework provides the tools and internal policies to enable all departmental employees to work in the most efficient and effective manner possible, while emphasizing financial stewardship and accountability. It clearly demonstrates that AAFC's management practices are consistent with the Government of Canada's overall management agenda.

AAFC has also been actively engaged in the Treasury Board Secretariat's MAF since its inception in 2003. The MAF summarizes the Government of Canada's expectations of sound management - from financial to people management, from assigning accountabilities to reporting results - and departments are measured on their performance against each of the 10 elements under the MAF. Through its management priorities, AAFC strives to meet and exceed expectations under the MAF and strengthen its accountability regime for 2007-2008 and beyond.

People

The Public Service Modernization Act (PSMA) is a cornerstone piece of legislation for modernizing human resources (HR) management in the public service. The ability of a department to maximize opportunities afforded by the PSMA is tied to the robustness of its human resources planning efforts. To advance HR planning at AAFC, the department developed a corporate human resources planning approach in early 2005, following the model designed by the Public Service Human Resources Management Agency of Canada. and constructed to align with the elements of the People Component of the MAF.

AAFC's approach to HR planning ensures rigour and consistency, and brings together HR plans from individual branches to create one department-wide plan. The departmental plan is built around a recruitment, development and retention model, supporting the employee life-cycle and underpinning the sustainable renewal of AAFC's workforce.

HR planning is an integral part of the departmental strategic planning cycle and overall strategic management direction. AAFC's matrix governance model encourages branch management to consider the current and future HR needs required to support team business plans, and enables the crosswalk of HR needs to the longer-term strategic work needs of teams, and the department as a whole.

This integrated approach to HR planning ensures the right people are recruited into the department, and that development opportunities are made available to employees so that its workforce can respond to new work priorities and shifts in the strategic direction of the department.

Key initiatives include the adoption of a competency-based HR management approach. AAFC has developed a suite of competency profiles for virtually all occupational groups and levels, and is integrating these into recruitment, staffing, learning and Employee Performance Management Program. By integrating competencies into its staffing processes, in particular, the department can hire people suited to a broader range of positions, not just one or a narrowly defined set of positions. This is critical to help AAFC continually move people from low-priority to high-priority work, and to have people who can adapt professionally as the work evolves.

Third, as implementation of HR plans is being finalized, the need to ensure that AAFC remains a representative and inclusive department, in terms of both usage of our official languages and in employment equity membership, is being taken into account. For example, Our Bilingualism Program at AAFC includes more than $1 million annually for non-statutory language training. This multi-year program is being accessed across the country, increasing the department's ability to do business in both official languages.

A key challenge for the department is affecting the full implementation of integrated HR and business planning within its matrix governance model, whereby the department manage resources through branches and work through horizontal teams. AAFC continues to explore tools, processes and points of intersection that enhance the integration of HR planning with business planning, to best make the demand(work)/supply(people) matrix work.

Another challenge is ensuring that the department has comprehensive and accurate data, and the tools and systems to manage information and reporting. AAFC havs recognized this challenge and is overhauling its information management system and piloting new reporting tools to increase the accuracy and timeliness of reporting on HR activities.

Financial Management / Strategic Planning

In keeping with enhanced Government of Canada policies designed to ensure sound financial comptrollership within federal departments, AAFC continues to implement the Chief Financial Officer (CFO) model. The CFO will be accountable for managing financial risks within AAFC, understanding the financial implications of decisions before they are taken, reporting on financial results, and protecting against fraud, financial negligence, violation of financial rules or principles, and losses of assets or public money.

AAFC is implementing a three-year financial strategy to help deploy future resources and ensure the department can go in the direction it has planned. This strategy will determine how the majority of AAFC's discretionary resources are allocated to departmental priorities.

As part of this overall financial strategy, AAFC has implemented the Financial Matrix Management model, designed to support effective and efficient financial and results-based management, where teams are accountable for delivering results and outcomes, and branches support teams through day-to-day decision-making through delegated authorities. The Financial Matrix Management model provides improved financial management accountability, while providing sufficient flexibility to manage changing departmental needs.

AAFC's strategic planning process continues to be improved across each of the six interdependent components with the introduction of new management and reporting tools for employees throughout the country. Each has its own set of requirements and steps, and each involves aspects of risk management. The six components are:

1. Strategic visioning - provides a road map consisting of our overall strategic vision and long-term strategic objectives, to steer planning and decision-making to deal with challenges as they emerge;
2. Business planning - establishes annual plans and priorities, and balances the investment in ongoing operations and activities with the investment required for the change agenda initiatives;
3. HR planning - integrated with business planning, identifies current and future HR needs based on departmental priorities, and develops and documents the HR management strategies that best support these priorities;
4. Resource prioritization - involves analyzing departmental priorities and establishing resource priorities over a three-year period, with emphasis on the upcoming planning cycle;
5. In-year management - involves monitoring the progress against the business plan, managing the impact of significant issues and new requirements, including risk, and adjusting resources in response to new pressures; and
6. Performance management - outlines the structure and focal areas for measuring performance in AAFC with boards of directors and assistant deputy ministers monitoring progress, making course corrections and reporting on performance results.

Within the department's framework, strategic visioning focuses on a three- to five-year horizon; resource prioritization focuses on the one- to three-year horizon; and the business planning process focuses on the upcoming year.

Internal Client Services

In keeping with guidelines from the Treasury Board of Canada Secretariat, AAFC has developed its Long-Term Capital Plan to plan for and manage its assets and capital priorities and expenditures. The department will continue to implement the plan in the 2007-2008 fiscal year. The plan will help AAFC retain or acquire only essential assets required to deliver programs efficiently, and manage its existing asset base and make appropriate changes to it with the resources that are available. It will also provide a rationale for proposed expenditures and project approvals.

The department will also continue to manage its new headquarters project.

For the purpose of improving excellence in delivering internal services, AAFC has initiated the Internal Service Standards Project. The outcome of this project will be attained though the capture and analysis of relevant non-financial metrics.

AAFC is contributing to the Government of Canada's Corporate Administrative Shared Services initiative, and will design and implement internal service standards to help guide and measure its performance.

Under the Corporate Administrative Shared Services initiative, federal transactional and administrative functions are planned to be delivered through new shared service structures, designed to provide the best service and value to Canadians. The initiative aims to improve effectiveness and efficiency of administrative services by developing government-wide information management and information technology systems, streamlining and standardizing administrative practices and processes, and ensuring access to information for better management of government. As a current provider of financial and HR systems services to portfolio partners as well as to other departments, AAFC and its clients are uniquely positioned to offer lessons learned and successful practices to the Corporate Administrative Shared Services organization.

AAFC will also work in 2007-2008 to implement the greening operations commitments outlined in the department's fourth Sustainable Development Strategy, which was tabled in Parliament December 13, 2006.

Information Management and Technology

AAFC has revised its Information Management and Information Technology (IM/IT) strategy to reflect the federal and departmental direction and to ensure that all IM/IT investments and activities respond to client and business needs.

The departmental IM/IT Strategic Planning Framework and supporting strategies identify the context, business drivers, key targets, recommended approaches, and planning considerations to best use information technology to meet business challenges.

Under the umbrella of service excellence, the framework will address three strategic outcomes: strategic partnerships to create value; being an IM/IT integrator to add value; and being a service provider to demonstrate value for money.

Part of this overall framework also includes IM/IT priorities which will allow AAFC to implement its IM strategy and change to a culture of more effective information management and sharing. In 2007-2008 AAFC will continue to focus on IM/IT departmental governance for strategic sound management of information and technology assets. The department will continue to respond to the departmental priorities and initiatives to enable service improvement and service delivery including simplifying business processes, as well as ongoing critical operations.

Corporate Management

The Emergency Preparedness Act states that every Minister is accountable to Parliament for: i) developing plans for contingencies that are within or related to their area of accountability; ii) implementing plans when requested, to support other government departments or provinces and territories; iii) providing for the safety and welfare of staff who are involved in responding to an emergency, and iv) conducting training and exercises to develop and test plans.

To this end, AAFC, with its portfolio partners, is implementing the National Disaster Assistance Framework (NDAF), to help better manage and co-ordinate the sector-wide response to emergencies.

The NDAF is an all-hazards emergency management system that is designed to link the federal, provincial and territorial and private sectors to better manage and co-ordinate responses to emergencies. The framework is designed to be activated for agriculture and agri-food emergencies (including situations involving food safety, animal and plant health, or emergencies occurring in other countries where international organizations request support) that exceed a provincial or territorial lead agency's capacity to deal with the situation and when support to the response effort is needed from other federal, provincial, territorial and private sector stakeholders.

As part of this framework, the department, along with its portfolio partners, is developing a plan detailing how the portfolio will respond in the event, however remote, of an influenza pandemic.

AAFC is also a key contributor to the Government of Canada's whole-of-government plan for responding to such a pandemic. As part of this plan, committees have been established to address potential gaps in preparedness in six main areas: (1) International Issues, (2) Federal Business Continuity and Human Resources, (3) Public Health and Emergency Management, (4) Communications, (5) Economic and Social Impact and (6) the Private Sector.

Audit and Evaluation

AAFC will work in 2007-2008 to further implement the new Internal Audit Model, as required under the Federal Accountability Act. This model will help reinforce good stewardship practices and sound decision-making within AAFC, and ensure the department best serves the needs of Canadians.

AAFC is also working to meet stringent new internal audit guidelines released by the Comptroller General of Canada. The department's Chief Audit Executive (CAE) is responsible for overseeing and promoting professional conduct of internal audits. The CAE provides independent, objective information and assurance on the effectiveness and adequacy of the department's governance, risk management and control processes, including assessing controls over financial management, financial reporting and evaluation of programs and activities.

The CAE is independent from departmental management and operations. This position has unimpaired ability to carry out responsibilities, including reporting findings to the Deputy Minister, the Departmental Audit Committee and the Comptroller General of Canada.

In 2007-2008, AAFC will also work to provide performance information and evaluations that support the development of the next generation of agriculture and agri-food policy and other strategic initiatives.

Portfolio Collaboration

AAFC, together with its portfolio partners, has been taking an integrated approach toward addressing major issues that cross responsibilities and policy development. More importantly, AAFC, along with the rest of portfolio, is committed and engaged in the development of the next generation of agriculture and agri-food policy.

There has been an extensive evolution in portfolio collaboration since 2001, from protocols on key files to sharing research and administrative services, to participating in executive level meetings, which has translated into continued adoption of portfolio management best practices.

As well, AAFC, together with its portfolio partners, has strengthened its approach to annual planning and reporting to meet the requirements of good governance, transparency and management accountability.

Citizen-focused Service

AAFC is committed to a client-focused approach to service delivery, and to achieving measurable improvements in response to client expectations. To support this approach, the department is guided by its Service Delivery Strategy, which aims to put AAFC in a leadership role in the design and implementation of citizen-centred, responsive programs and services that contribute to a profitable and sustainable agriculture and agri-food sector.

Understanding clients and their needs is what drives service improvement at AAFC. Using the Common Measurement Tool - a client satisfaction survey instrument - the department will undertake further client surveys to determine levels of satisfaction, service quality drivers and priorities for improvement. AAFC will establish priorities and implementation plans to have service standards in place within three years. Other major activities will be undertaken in support of service improvement and service delivery, including building a client and service knowledge base, simplifying business processes, and migrating programs to a common grants and contributions platform.

As part of an ongoing effort to enhance access to information, programs and services, AAFC will continue to consolidate and update its Web site, strengthening its capacity to provide on-line services to complement the more traditional service channels of telephone, in-person and mail. Clients will benefit from a more comprehensive integrated channel management approach evidenced by AAFC My Account and telephone access.

The department is also working with its federal, provincial and territorial partners to develop and implement strategic communications plans and marketing activities. This will help better serve and inform AAFC clients at home and abroad about the objectives, benefits and value of AAFC programs and services, with the goal being to promote and increase stakeholder involvement in these programs. To achieve this goal, AAFC has established the following key communications priorities to support external clients:

• provide comprehensive communications and consultation support to the engagement strategy for the next generation of agriculture and agri-food policy;
• provide intensive and sustained strategic communications support for science and innovation and other areas supporting new market development and other opportunities for the agriculture sector;
• implement an internal communications approach that focuses on new tools and ongoing dialogue with employees; and
• provide ongoing strategic communications advice and activities in support of the action plan for BRM programs in the context of the current APF and the next generation of agriculture and agri-food policy.

Parliamentary Committee Reports

Standing Committee on Agriculture and Agri-Food

The Committee tabled a report in the House of Commons that requires a Government Response, as well as three other reports that may require action by the Portfolio. Details follow.

Report on the Review of the Canada Grain Act and the Canadian Grain Commission conducted by COMPAS Inc.

Under the Standing Orders, a response is required within 120 calendar days.

This report is the result of an amendment to Bill C-40, An Act to amend the Canada Grain Act and the Canada Transportation Act introduced by the Standing Committee in 2005. This amendment required an independent and comprehensive review of the Canada Grain Act and the CGC which was carried out by COMPAS Inc.

The Committee tabled this report on December 5, 2006 following a series of meetings held in September and October 2006 with several witnesses including COMPAS Inc., CGC officials and stakeholders. There was general support for reform to the CGC and the most challenging issues of the reform were common to the majority of witnesses. The report focuses on the common themes raised by witnesses which include the mandate and governance of the CGC, inward weighing and inspection, research funding, liability of the CGC, Kernal Visual Distinguishability and producer cars.

The report contains 12 recommendations.

Other reports that may require action by the portfolio include:

1. a report tabled by the the Committee tabled a report on June 8, 2006, which presented three recommendations on the matter of Imports of Milk Protein Concentrates (MPCs) specifically import control measures, the classification of all MPCs and the issue of invoking Article XXVIII of the GATT.
2. a report tabled by the Committee on December 12, 2006, which presented one recommendation on matters relating to the Pest Management Reglementation Agency regarding the Own Use Program for importing pesticides.
3. a report tabled by the Committee on December 13, 2006, which presented four recommendations on matters relating to restricting supplemental beef quota.

The Standing Senate Committee on Agriculture and Forestry

On May 16, 2006, pursuant to a motion by Senator Hugh Segal, the Committee was authorized to examine and report on rural poverty in Canada. In the fall of 2006, following a series of 13 meetings in Ottawa, including one appearance by the Minister of Agriculture and Agri-Food, the Committee tabled an interim report entitled Understanding Freefall: The Challenge of the Rural Poor on December 13, 2006. The findings of the interim report were fairly broad, touching on not only agriculture, but also issues such as rural economic development, education, access to services, transportation and immigration.

The Committee's final report is to be tabled no later than April 30, 2007.

Link to the Government of Canada Outcome areas

AAFC's program activities reflect and support the Government of Canada's broad priorities and goals to create opportunities for Canadians, make the economy more productive and competitive, and make Canadian communities better places to work, play and grow.

The department works with producers, stakeholders in the agriculture and agri-food sector and other levels of government to help ensure that the sector is competitive domestically and internationally, viable and prosperous, and contributing to a strong economy, while protecting and promoting integrity of the environment.

The Whole of Government Framework provides a structure for mapping the contributions of departments, agencies and Crown corporations to a set of high-level Government of Canada outcomes. AAFC's strategic outcomes and activities are focused in the following Government of Canada outcomes under the Framework:

• Economic Affairs: Strong Economic Growth;
• Economic Affairs: An Innovative and Knowledge-Based Economy;
• Economic Affairs: A Fair and Secure Marketplace;
• Economic Affairs: A Clean and Healthy Environment; and
• International Affairs: A Prosperous Canada Through Global Commerce.

Conclusion

The Canadian agriculture and agri-food sector is a success story and will continue to make significant contributions to society and to the quality of life of all Canadians. This country's producers and processors have a world-wide reputation for meeting consumer expectations regarding food safety and quality and environmental standards.

For a variety of reasons outlined in this report, farm incomes have declined in recent years. While the sector has shown resilience, the nature and scope of pressures it faces require Canadian producers and governments to continue efforts aimed at stability and success in the sector. The policies and programs under the APF have provided an integrated national approach and this will continue under the next generation of agriculture and agri-food policy being developed by AAFC and provincial and territorial partners in consultations with stakeholders.

Taken together, AAFC's departmental program activities form a cohesive action plan that is working for the benefit of producers, for the rest of the value chain, and for all Canadians. Efforts will continue to ensure the Canadian agriculture and agri-food sector enjoys enhanced business stability. Consumers at home and abroad will have greater assurances about the safety and quality of their food and the environmentally responsible methods used to produce it. Canadians can also expect a broad range of new food and non-food products that will improve their day-to-day quality of life. A stronger Canadian agriculture and agri-food sector will, in turn, strengthen the Canadian economy as a whole.

AAFC, along with its portfolio partners, is well positioned to respond and to contribute to government-wide initiatives to strengthen management and sustain a culture of accountability. The department's experience in developing and implementing the APF with provincial and territorial partners and with stakeholders has created solid foundation for the development of the next generation of Canadian agriculture and agri-food policy.

• Previous Page
• Table of Contents
• Next Page