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

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SECTION II - Analysis of Program Activities by Strategic Outcome

This section covers AAFC's program activities for the fiscal year 2007-2008 and outlines how these activities will contribute to achieving the department's three strategic outcomes: (1) Security of the Food System, (2) Health of the Environment and (3) Innovation for Growth.

This section also contains information on other key areas for which the department is responsible, including Rural Development , Co-operatives , the Canadian Pari-Mutuel Agency and the National Farm Products Council .

The Agricultural Policy Framework

AAFC's strategic outcomes and corresponding program activities have been guided by the Agricultural Policy Framework (APF), and by the need to adjust the framework as necessary to ensure it best serves Canada's agriculture and agri-food sector and helps provide the best quality of life for all Canadians.

The APF was developed to strengthen the agriculture and agri-food sector through a comprehensive and integrated national policy that seeks to position the sector to meet the challenges and seize the opportunities of the 21st century. It aimed to meet and exceed consumer demands and expectations, and brand Canada as a world leader in producing and supplying a variety of safe, high-quality and nutritious agri-food products while caring for the environment.

The APF also put significant emphasis on the role of agricultural research and development to introduce new products, help the sector expand into new markets, and ensure product safety and quality, while preserving the environment and enhancing the environmental performance of commercial agriculture.

With the APF due to expire at the end of this fiscal year, 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. Broad public consultations, begun in late-2006 and continuing in early-2007, support this work. This groundwork will also include the integration, within the next generation of agriculture and agri-food policy, of a food industry strategy to assist with growth and development of the food production and food processing sectors in Canada.

In addition, development of a strategy for agricultural biomass-based non-food products and markets will be an area of focus for the department. This approach is motivated by the growing significance of value-added products in today's marketplace as well as the recognition of the increasing importance of co-ordinated action along value chains. AAFC's work under each of the following strategic outcomes is conducted with this in mind.

Strategic Outcome 1:

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

INTRODUCTION

A secure food system is one that is profitable and can be relied upon by consumers to provide the products they want and need. Through the Security of the Food System strategic outcome, AAFC, along with its portfolio partners the CFIA and the CGC, aims to ensure Canada can continue to produce, process and distribute safe and reliable food. To achieve this, the country needs an agriculture and agri-food sector that is healthy, stable and viable.

The department's approach to ensuring Security of the Food System is based on ensuring farmers and food producers have the tools they need to manage business risks, maintaining and enhancing consumer confidence in the safety and quality of Canada's agriculture and agri-food products, and sustaining and expanding access to global markets.

OPERATING ENVIRONMENT

The agriculture and agri-food sector plays a significant role in the Canadian economy and society. Besides meeting the basic need for food, the sector provides one of every eight Canadian jobs and accounts for approximately eight per cent of the country's GDP. Ensuring this success can continue is integral to a strong and productive future for Canada.

The Canadian agriculture and agri-food sector is a key contributor to the country's success on the trade front. Canada's land base and relatively small population means the country produces far more food and agricultural products than it needs, and relies heavily on trade, exporting close to half of all domestic production. Throughout the world, Canada has established a firm reputation as a reliable supplier of agriculture and food products that meet and exceed consumer demands and expectations.

Opportunities for growth, prosperity and a stable future for Canadian producers and processors are expanding as borders around the world become more open, foreign markets become more affluent and the sciences converge to produce a new range of bioproducts. In addition, an increasing number of consumers are seeking out more convenient, healthier products.

To continue to succeed over the long-term, the agriculture and agri-food sector will need to satisfy the ever-changing expectations of domestic and international markets, as well as capitalize on the opportunities provided by increasing numbers of customers, demand for specific safety and quality attributes, and fast-growing markets for value-added foods and food products.

At the same time, the business of agriculture is inherently risky, presenting the sector with
many challenges. Environmental conditions, low commodity prices, high input prices, international competition for markets, and the general unpredictability of plant and animal diseases - among other issues - all contribute to put Canada's agriculture and agri-food sector under enormous pressure each year. Governments play a key role in helping the sector deal with this pressure.

STRATEGIC RESPONSE

To achieve the strategic outcome Security of the Food System, AAFC works through the departmental program activities of Business Risk Management, Food Safety and Quality, and Markets and International. The National Farm Products Council also contributes to this Strategic Outcome.

BUSINESS RISK MANAGEMENT

Enhancing producers' capacity to manage risk, and increasing the sector's viability and profitability

Net Planned Spending and Full Time Equivalents - Business Risk Management

2007-2008		2008-2009		2009-2010
$ millions	FTE	$ millions	FTE	$ millions	FTE
1,518.9	947	1,123.3	947	1,108.3	947

Business Risk Management (BRM) programming is designed to equip producers with the tools and capacity needed to manage risks and ensure viable and profitable farming operations. Governments across Canada agree that effective BRM programming is crucial to ensuring a more stable and profitable agriculture and agri-food sector. By being able to better mitigate risk, producers can focus on seeking out new opportunities to strengthen their ability to produce safe food and non-food products for Canadians and consumers around the world. This, in turn, helps improve the quality of life for all Canadians.

Under the APF, the federal government has targeted $5.5 billion over five years for BRM programs. These programs provide similar treatment to every producer across the country facing similar circumstances, and provide whole-farm assistance instead of being commodity-focused, to address the needs of the sector for stability and disaster protection.

AAFC and provincial governments, in consultation with industry organizations, are working to develop new and separate income stabilization and disaster relief programs that provide responsive, predictable and timely assistance to producers. This programming will be implemented in 2007-2008, and will form a core element of the next generation of agriculture and agri-food policy.

Business Risk Management programs

There are two main national programs available to help producers manage risk and deal with income fluctuations: the Canadian Agricultural Income Stabilization (CAIS) program and Production Insurance (PI). These programs are complemented by the Private Sector Risk Management Partnerships (PSRMP) program and financial guarantee programs including the Advance Payments Program (APP), Spring Credit Advance Program (SCAP), the Enhanced Spring Credit Advance Program (ESCAP), the Price Pooling Program (PPP), and the Financial Improvement and Marketing Cooperatives Loan Act (FIMCLA) program.

CAIS program

The CAIS program, which is federal-provincial-territorial cost-shared, is designed to help producers manage farm income risk. Under the program as originally designed, income stabilization and disaster protection were integrated into a single program, helping producers protect their farming operations from both small and large drops in income due to circumstances beyond their control.

It is a whole-farm program available to eligible farmers regardless of the primary agricultural commodities they produce, including dairy, poultry and eggs operating within supply management systems. Farmers in supply managed sectors, who primarily use supply management to stabilize their revenues, are eligible for disaster assistance under the CAIS program.

The program is cost-shared among federal, provincial and territorial governments and producers. A payment is made when a participant's margin in the program year falls below the reference or historical margin. The bigger the loss, the larger the share of the payment from governments. Since funding allocations under the program are demand-driven, assistance goes where it is needed, with no fixed cap on government funding for any given year.

The CAIS program is delivered in British Columbia, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador and the Yukon under federal administration. In Alberta, Ontario, Quebec, and Prince Edward Island, the CAIS program is delivered provincially.

As a result of consultations among federal, provincial and territorial officials and industry in 2006-2007, governments have committed to replace the CAIS program with separate margin-based income stabilization and disaster relief programs. The objectives of these new initiatives include improving the responsiveness of BRM programming, increasing producers' understanding of the programs and ensuring the programs are simpler and more responsive to the needs of Canadian producers, as well as more affordable to taxpayers. The new margin-based income stabilization program involves significant improvements on the original CAIS program and will be launched for the 2007 stabilization year. Governments are also pursuing a separate disaster relief framework that will allow the federal and provincial governments to work more quickly to address the impacts of disaster situations on farming businesses when they occur.

In the interim, the current CAIS program will continue for the 2006 stabilization year (which will generally be administered during the 2007-2008 fiscal year). Governments have implemented under CAIS program elements which will be part of the new income stabilization program to help transition producers to the new program and allow them to benefit from these elements sooner. These include:

• the replacement of the previous producer deposit requirement with a more affordable fee;
• the inclusion of a better (hybrid) method of valuing inventories;
• broader eligibility criteria for negative margin coverage;
• a targeted advance mechanism for disaster situations; and
• improved service delivery (including a late filing option, automatic sign-up, electronic filing, online calculators, a harmonized Income Tax/CAIS form, reduced information requirements and common service standards).

In November 2006, governments announced a series of cross-Canada consultations to provide industry leaders and individual producers with the opportunity to help shape discussions on the next generation of agriculture and agri-food policy. These meetings will include further consultations on BRM programming. The results of these consultations will be used to identify and address gaps and make further improvements to BRM programming within the context of affordability.

Production Insurance

Production Insurance (PI) is designed to stabilize producers' incomes by minimizing the economic impacts of production losses arising from natural hazards like drought, hail, frost, and excessive moisture, as well as uncontrollable pests and diseases. The program is cost-shared by producers and governments. It is delivered by the provinces and territories, with the federal government contributing a portion of total premiums and administrative costs.

Under the program, producers are able to purchase protection for severe, uncontrollable production and asset losses for crops. PI also gives producers a wide range of program options that are consistent across provinces and territories.

In 2007-2008, the PI program will develop and implement new products for horticulture, forage and livestock.

Private Sector Risk Management Partnerships

While the APF has helped significantly to expand risk management coverage to primary producers, farmers have identified some gaps in available farm-level risk management coverage.

AAFC's Private Sector Risk Management Partnerships (PSRMP) programming is designed to help the agriculture and agri-food sector find risk management solutions to these gaps, through products and services developed and delivered by the private sector. PSRMP complements the federal government's ongoing investment in Canadian agriculture by assisting producers in managing their business risks, while moving the sector toward improved long-term profitability and competitiveness.

By facilitating an expanded role for private sector providers of risk management products and services, the PSRMP approach allows for a limited investment of public resources in industry-led projects. The results of this approach include an increased capacity to manage farm business risks, and an increasing range of private sector risk management products and services designed to meet the needs of Canadian farmers.

In 2007-2008, PSRMP will continue to work with producer organizations and the private sector financial services industry to increase the range of private sector risk management products and services meeting Canadian producers' needs in farm business risk managment.

Financial Guarantee Programs

In addition to the risks traditionally associated with agricultural production, inadequate operating cash or access to credit can also affect the viability of farming operations. Financial guarantee programs address this need through credit facilities.

In 2006-2007, the Government of Canada announced amendments to the Agricultural Marketing Programs Act (AMPA) , designed to provide expanded coverage and increased financial advances to farmers. As a result of the amendments, the former SCAP and the APP were combined into a single program under the AMPA, also called the Advance Payments Program (APP) . The new APP will continue to provide farmers with advances during the entire production cycle to allow producers to market their products throughout the year when market conditions may result in better prices. As an interim measure, while the above changes are being implemented, the Enhanced Spring Credit Advance Program (ESCAP) has been created and put in place to make more money available to producers through interest-free loans. The interim program will expire in September 2007.

In 2007-2008, AAFC will continue to deliver the newly amended APP, and will implement enhancements to the program's electronic delivery system to improve administration and increase producers' capacity to manage cashflow through the production year.

Producers also have access to the FIMCLA program, a federal loan-guarantee program designed to increase the availability of loans to producers for farm improvements, and support access to capital for agricultural co-operatives.

Departmental officials will make recommendations on how the FIMCLA program could be adapted to better support beginning farmers, intergenerational farm transfers and agricultural co-operatives. If changes are required in 2007-2008, the department could initiate legislative changes to this end designed to enhance the program. In addition, an electronic delivery system will be developed for FIMCLA, to improve and simplify the administration of the program.

Other BRM Programming

The Price Pooling Program : is designed to facilitate the marketing of agricultural products under a co-operative by providing a price guarantee to protect against unanticipated declines in the market price.

Special Assistance Programming

The $85 million Plum Pox Eradication Program was introduced in 2004 to help control and eliminate the plum pox virus in Canada. The program includes $20 million to help address the losses experienced by growers who have had to destroy trees, and $65 million for work on detection and research on diagnostic and transmission of the virus. The program is continuing in 2007-2008.

In response to the discovery of Golden Nematode in the St. Amable region of Quebec, the federal government launched a $5.4 million assistance program in 2006-2007. This program includes $2 million to assist with potato disposal, extraordinary costs and business advice and planning services, as well as $3.4 million through the CAIS program and renewal programming. Government officials will continue to monitor the situation and program up-take into 2007-2008.

The Cover Crop Protection Program (CCPP) , announced in May 2006, was a one-time Government of Canada initiative totaling $90 million, delivered to producers who were affected by springtime crop-land flooding in 2005-2006. The CCPP provided financial assistance to agricultural producers unable to seed commercial crops due to excessive moisture and experienced incremental costs of protecting their land from further soil erosion. In 2007-2008, the department will implement an ongoing CCPP which will be delivered by PI agencies and operate as a federal top-up to PI's unseeded benefits.

FOOD SAFETY AND FOOD QUALITY

Minimizing the risk and impact of food borne hazards on human health, increasing consumer confidence and improving the sector's ability to meet or exceed market requirements for food products

Net Planned Spending and Full Time Equivalents - Food Safety and Food Quality

2007-2008		2008-2009		2009-2010
$ millions	FTE	$ millions	FTE	$ millions	FTE
119.4	466	38.9	466	38.9	466

Canada has a reputation as a producer and supplier of food products that are among the safest and highest quality in the world. Due in large part to the country's rigorous processes for safety and quality control, Canadian agriculture and food products have earned the confidence of consumers.

However, consumer demands and expectations continue to increase, due to high-profile issues such as BSE and avian influenza, and as Canadians and other consumers put a greater focus on getting the maximum health benefits from their foods.

The Government of Canada is committed to working with its provincial and territorial government, portfolio and industry partners to uphold Canada's reputation for food safety, and ensure Canadians and other consumers continue to get the nutritious, high-quality food and food products for which Canada is known.

The Food Safety and Quality element of the APF provides policy direction, along with programs, services and tools for the industry to maintain Canada's solid international reputation regarding food safety and quality. These include an on-farm food-safety program, traceability initiatives, support for quality-control systems and data-management systems, and research and technology transfer. The CFIA is an active partner in many of these initiatives.

The confirmation of BSE in Canada, beginning in May 2003, required special measures and programs to deal with the impacts on the beef industry and other ruminant industries, including enhancing the capacity to ensure domestic and international consumers of the safety of Canadian meat. These included measures to improve traceability across the livestock and meat value chain, and contributions to provincial government programs designed to assist the sector in building the capacity to fully implement the feed ban enhancements that require the removal of specified risk material.

Improving traceability across the livestock and meat value chain will continue to be a key priority in 2007-2008. AAFC will work with the provinces, territories and sector to accelerate the implementation of a multi-species traceability system including animal identification, premise identification, the tracking of animal movements, and the tracking of meat products through the value chain.

The science and innovation focus and efforts of the department and portfolio partners like the CFIA, in relation to food safety and quality, include providing the knowledge and technology needed to enhance the ability of Canadian producers and governments to keep the food system safe, and producing quality food products for consumers. Research in support of Food Safety and Food Quality includes a focus on enhanced understanding of the links among food, nutrition, health and wellness, detection, monitoring and control of food borne hazards, and plant and animal disease management to enhance the safety of the food production, processing and distribution system.

During the next three years, informed by the consultations on the next generation of agriculture and agri-food policy, AAFC will work with portfolio partners such as the CFIA, other governments and industry to strengthen food safety and quality in Canada through four main components:

1. federal, provincial and territorial governments will be asked in 2007-2008 to endorse an approach aimed at putting in place a national policy for food quality. AAFC will take the lead to develop policy options, which will be driven and supported by public consultations. This work will also be integrated into the food safety and quality component of the next generation of agriculture and agri-food policy. The department will participate in the negotiation of operational agreements with the provinces and territories, and in 2008-2009, policy approaches will be implemented through the new policy. AAFC, together with the CFIA, will demonstrate continued leadership in 2009-2010 to develop principles and criteria leading to a national food quality policy and to assist decision makers in addressing food quality issues;
2. in 2007-2008, AAFC will implement three key science priorities designed to improve the agriculture and agri-food sector's ability to respond to food safety and security issues, while creating opportunities for the sector through food innovation. Specifically, through a peer-reviewed research program aimed at assuring science excellence, the department will focus its efforts on:
   1. building a strong science base to make available to Canadians innovative health-enhancing nutritional products;
   2. improving the safety and security of the food system through the development of predictive safety approaches; and
   3. developing integrated management strategies throughout the food continuum to enhance food quality and add value to products.
   4. in addition to developing the next generation of agriculture and agri-food policy, the department will continue in 2007-2008 to examine the current legislative and regulatory framework for animal health and welfare in Canada. At the same time, work will also continue, in close co-operation with portfolio partners, in particular the CFIA, to develop policy options and advice related to animal health and welfare to provide a more integrated approach to managing animal health and welfare risks. For 2008-2009, there will be further work to develop options for improving animal disease detection and response capacity, and help address the information requirements in support of a national policy. Complete development and public consultations for a national animal health and welfare policy will be concluded that year, along with the implementation of policy approaches through the next generation of agriculture and agri-food policy. In 2009-2010, the department will work to develop options for integrating sound risk-management practices into the animals-for-food production process; and
   5. finally, an important priority for 2007-2008 will be the framework for the National Livestock Traceability System. Key components of the framework are animal identification, premises identification and a means for tracking animal movement. In addition, in 2007-2008 the inclusion of other food commodities into a national agriculture and food traceability system will be pursued, with a target to have the architecture for a national system, that could include all food products, completed in 2009-2010.

Canadian Food Safety and Quality Program

The Canadian Food Safety and Quality Program (CFSQP) is a key part of the federal government's efforts to solidify and build upon Canada's reputation as a provider of high-quality and safe agriculture and food products. The program provides agriculture and agri-food sector associations with financial assistance to develop and implement food safety, traceability and quality process control systems.

The CFSQP has three distinct yet integrated components:

1. the Systems Development (SD) component provides national industry associations with funding to develop systems that form the foundation for food safety, quality assurance and traceability systems. Through this component, the CFSQP will also assume the delivery of on-farm projects formerly managed by the Canadian Federation of Agriculture;
2. the On-Farm Implementation (OFI) component supports the implementation of on-farm food safety systems by providing funding to national producer organizations that helps them access tools to implement national systems on the farm; and
3. the Food Safety Initiative (FSI) component supports the implementation of food safety systems in non-federally registered processing facilities in participating provinces, as well as research, outreach and staff training to strengthen provincial food safety infrastructure.

The CFIA is an important partner in these endeavours, providing technical advice in all areas, as well as managing the On-Farm Food Safety Recognition Program. This program, requested by producers, ensures a consistent national approach to food safety based on internationally accepted, science-based, risk-management systems.

Markets and International

Expanding international opportunities for the Canadian agriculture and food sector

Net Planned Spending and Full Time Equivalents - Markets and International

2007-2008		2008-2009		2009-2010
$ millions	FTE	$ millions	FTE	$ millions	FTE
78.5	555	57.1	555	57.1	555

Exports of Canadian agriculture and agri-food products totaled $26.2 billion in 2006, and contributed $5.8 billion to Canada's overall trade surplus. When seafood exports are taken into account, Canadian agriculture and food exports totaled $30.5 billion, and the sector's contribution to Canada's trade surplus increases to $7.4 billion. Clearly, the prosperity of the agriculture and agri-food sector in Canada is a large part of the country's success as a trading nation.

AAFC acts as Canada's agricultural trade advocate, working to break down trade barriers at home and abroad and expand opportunities for the agriculture and agri-food sector. Together with portfolio, government and industry partners, the department works to improve and secure market access and achieve a more level playing field in international markets for agriculture and agri-food products.

The department promotes and defends the interests of Canadian farmers and agri-food processors in various international trade negotiations and through trade litigation, when necessary. AAFC also monitors and seeks to influence policy developments in key countries, using tools such as trade advocacy, and agri-food specialist positions in selected embassies abroad.

Canada remains active in the negotiations on agriculture at the WTO, and in regional and bilateral trade negotiations. In addition, AAFC also manages bilateral agricultural trade issues with Canada's major trading partners. These include negotiating the resolution of trade irritants and trade remedy cases related to Canada's obligations in the WTO, the North American Free Trade Agreement (NAFTA) and other free trade agreements (FTAs) with our trading partners.

In 2007-2008, AAFC's integrated international strategy will concentrate on further moving the sector forward in three key areas:

• gaining recognition;
• improving market access; and
• overcoming technical barriers.

Gaining Recognition

An important approach to expanding markets for agriculture and agri-food products during the next three years will be the leveraging of domestic improvements and capabilities into a strong Canada Brand. Informed by the consultations on the next generation of agriculture and agri-food policy, AAFC will promote greater adoption of the Canadian agriculture and agri-food sector Brand Promise and elements into the marketing strategies implemented by government and industry to achieve a more cohesive and positive image of the brand among key market segments abroad.

Funding under the Canadian Agriculture and Food International (CAFI) : 9 program for branding and market development initiatives gives industry sectors the ability to establish generic, industry-wide brands. These brands will help brand Canada in markets around the world by promoting Canadian agriculture and food products based on their superior safety and quality, to meet market demands for these attributes.

Tracebility, a long with other efforts, eill help gain international recognition for Canadian agriculture and food products. Traceability will be implemented as a first priority in the livestock sector, and subsequently, enabled in other sectors and across the value chain, consistent with international market standards and market opportunities.

The integration of international activities will also help to gain recognition and maximize market opportunities, particularly in emerging markets. The department will refine and prioritize the Integrated Market Engagement Strategies to facilitate the increase of exports by Canadian companies of products into existing markets and their entry into new markets.

At the same time, the department will continue with its efforts to brand Canada for its scientific excellence, provide science expertise to support Canada's markets and trade, address needs of developing countries, and fulfill its international obligations through intergovernmental science-related agricultural organizations. Of importance will be the continued implementation of the China-Canada Agriculture Development Program (CCADP), to strengthen international market and development relationships with China to help the agriculture and agri-food sector take advantage of new and existing export opportunities. AAFC will also initiate consultations with Canadian stakeholders to develop a potential successor program to the CCADP.

AAFC will co-operate with other federal departments and agencies to promote a strong Canadian trade and investment presence in international markets with a sector-focused approach, to gain increased recognition in targeted markets of Canada's ability to supply high-quality agriculture and agri-food products.

Improving Market Access

In addition to raising Canada's visibility and profile in the international marketplace, the Government of Canada will continue its efforts to press for a more level international playing field so that producers and processors can trade more effectively on the basis of their competitive advantage.

In July 2006, following intensive efforts by WTO members to reach agreement on detailed rules and commitments, the WTO Doha negotiations were suspended. Key WTO members had been unable to resolve differences in their negotiating positions. However, since that time, WTO Members have been involved in informal discussions and most express a strong desire to renew the negotiations. Canada remains committed to more liberalized trade, the rules-based multilateral trading system, and the objectives of the Doha negotiations, and will continue to work with other WTO Members to promote this country's interests. Canada will continue to strongly support efforts to achieve a successful conclusion to the Doha Round. Canadian agriculture and agri-food will benefit from clear and fair rules governing the international trade of agriculture and agri-food products and maximum access of Canadian exports to markets around the world.

In addition to efforts at the WTO, an important objective for AAFC will be to achieve further progress towards FTAs with Korea, European Free Trade Association countries (Iceland, Norway, Switzerland, and Liechtenstein) and the Central-America-Four (El Salvador, Guatemala, Honduras, and Nicaragua) to attain maximum advantage for Canada's agriculture and agri-food sector. In co-operation with the Department of Foreign Affairs and International Trade (DFAIT), the department will develop and implement a strategy for initiating additional free trade agreement negotiations with potential trading partners.

In advancing and defending Canada's agricultural trade interests, trade litigation remains an important policy tool in instances where other approaches fail to ensure that trading partners abide by their obligations. AAFC will continue working closely with DFAIT to monitor other countries' trade policies and will initiate WTO or NAFTA challenges, when appropriate, and will continue to defend Canada's policies when challenged by others.

Overcoming Technical Barriers

Although adherence to scientific principles is one of Canada's trade tenets, some countries' trade requirements are not based on science. Such technical trade barriers can be disruptive to global trade. Accordingly, Canada is moving to address technical issues that critically impact market access.

In 2007-2008, the department will work to influence international trade-related discussions, policies and standards to the advantage and interest of the Canadian agriculture and agri-food sector, and aim to ensure other countries' technical measures and policies do not negatively impact the sector in Canada.

The department will increase Canada's trade advocacy efforts abroad through targeted initiatives, and address technical issues and international standard setting that critically impact market access. The department will maintain, improve and secure market access by working bilaterally and multi-laterally with foreign governments to influence technical trade policies, measures, and international standards that reflect, to the greatest extent possible, domestic Canadian policies and regulatory practices.

AAFC will also work to ensure the interpretation and implementation of Canada's existing international obligations do not unnecessarily restrict trade, and will continue working to re-open and expand markets for Canadian beef and cattle that were closed following the discovery of BSE here in 2003.

NATIONAL FARM PRODUCTS COUNCIL (NFPC)

Net Planned Spending and Full Time Equivalents - NFPC

2007-2008		2008-2009		2009-2010
$ millions	FTE	$ millions	FTE	$ millions	FTE
3.8	20	3.8	20	3.8	20

Notes:

These amounts are included in the Votes of the Department of Agriculture and Agri-Food and include $200,000 in grants and contributions and $243,000 in employee benefits.

Services provided without charge include:

• accommodation provided by Public Works and Government Services Canada; and
• corporate services such as financial systems, security, information technology, human resource management advice and services provided by Agriculture and Agri-Food Canada.

These amounts are not reflected in the program costs.

The NFPC was established in 1972 through the Farm Products Agencies Act (FPAA). The Act combines the marketing powers of the federal government, which has authority over inter provincial and international trade, and provincial governments, which are restricted to intra provincial trade. This enabling legislation provided for the establishment of national marketing agencies and, in 1993 was amended to provide for the founding of national promotion-research agencies.

The National Farm Products Council was established to:

• advise the Minister on all matters relating to the establishment and operations of agencies under the Act with a view to maintaining and promoting an efficient and competitive agriculture industry;
• review the operations of agencies with a view to ensuring that they carry on their operations in accordance with the objectives set out in the Act. The Council has a legislative responsibility to approve agency orders and regulations;
• work with agencies in promoting more effective marketing of farm products in inter-provincial and export trade and, in the case of a promotion-research agency, in promoting such marketing in import trade and in connection with research and promotion activities relating to their farm products; and
• consult, on a continuing basis, with governments of all provinces having an interest in the exercise of powers of agencies established under the Act.

The Council monitors the operations of five national agencies:

• the Canadian Egg Marketing Agency;
• the Canadian Turkey Marketing Agency;
• the Chicken Farmers of Canada;
• the Canadian Broiler Hatching Egg Marketing Agency; and
• the Canadian Beef Cattle Research, Market Development and Promotion Agency.

The Council promotes the strength and enhances the competitiveness of the sectors it oversees. It is committed to working with the agriculture and agri-food sector to meet the challenges and opportunities that arise from significant change in agri-food policies, business trends and market requirements at home and abroad.

The NFPC has been an active proponent of portfolio management with the aim of comprehensive advice to the Minister and the government. This co-operative approach within the agri-food portfolio is done in a manner designed to maintain the Council's arms-length relationship due to its quasi-judicial status and the managerial autonomy and accountability required in today's modern comptrollership environment.

OPERATING ENVIRONMENT

In developing its strategic plan, the NFPC took into account many trends and developments in Canadian agriculture and agri-food as they affect the sectors for which the Council has responsibility. Broadly, the four supply management agencies which the Council oversees deal with issues concerning:

• a decrease in the number of retailers and processors increasing centralized buying by larger chains;
• an increase in regionalism/provincialization leading to increased disputes;
• human resource renewal hinging on access to capital and return on investment;
• a WTO agreement leading to changes in tariffs and trade liberalization;
• animal diseases (avian influenza) and other health and food safety issues creating an increased focus on animal and human health;
• increased productivity and innovation; and
• poultry and egg products consumption trends.

The Canadian Beef Cattle Research Market Development and Promotion Agency, and the beef cattle industry at large, are facing the continuing impact of BSE on Canada's export markets. Other issues for the agency and its partners (Beef Information Centre, the Canada Beef Export Federation and the Beef Cattle Research Council) include:

• implementation of a national levy system;
• development of a national beef research strategy;
• implementation of market development programs;
• a WTO agreement leading to changes in tariffs and trade liberalization; and
• animal diseases (BSE) and other health and food safety issues creating an increased focus on animal and human health.

The NFPC provides the following benefits:

• national agencies are working in the balanced interests of all Canadians;
• a sound regulatory framework is in place for the agri-food industry for poultry, eggs and beef research and promotion;
• more effective marketing of farm products in inter-provincial and export trade; and
• an efficient and competitive agriculture industry.

BENEFITS FOR CANADIANS

A secure food system is essential for the agriculture and agri-food sector to remain competitive at home and abroad. While Canadians have achieved an enviable level of food security, the sector continues to face a host of pressures. Sustaining and enhancing the security of the food system will help cushion the sector against the impact of periodic downswings. By making the most of expanding opportunities, the sector will continue to strengthen its own performance, profitability and stability for the sector, while contributing to an enhanced quality of life for all Canadians.

Strategic Outcome 1: Security of the Food System

Program Activity: Business Risk Management (BRM)
Enhancing producers' capacity to manage risk, and increasing the sector's viability and profitability

Commitments 2007-2008

• deliver the new Advance Payments Program resulting from the coming into force of the amended Agricultural Marketing Programs Act (AMPA)
• implement enhancements to the APP Electronic delivery system to further meet the needs of internal staff and external administrators
• initiate enhancements to existing Farm Improvement and Marketing Cooperatives Loan Act (FIMCLA) to provide support to beginning farmers and intergenerational farm transfers
• develop a FIMCLA electronic delivery system to improve and simplify the administration of the program
• continue to work with partners to replace CAIS with distinct programs for agricultural income stabilization and disaster relief
• develop and implement new products under PI for horticulture, forage and livestock
• continue to improve program delivery

Expected Results

• producers better supported and able to manage business risks
• programming that is more responsive and predictable
• additional PI plans and benefits in place
• increased producer capacity to manage operations (cashflow) throughout the production year
• increased sector viability and profitability

Performance Indicators

• level of variability of farm income over time
• level of sector farm income over time
• level of farm capital investments over time
• industry reaction to changes made to BRM programming

Program Activity: Food Safety and Food Quality
Minimizing the risk and impact of food borne hazards on human health, increasing consumer confidence and improving the sector's ability to meet or exceed market requirements for food products, and provide value-added opportunities through the adoption of food safety, food quality and traceability systems.

Commitments 2007-2008

• accelerate development and implementation of comprehensive and integrated traceability systems across the Canadian meat and livestock industry
• manage the Canadian Radio Frequency Identification (RFID) reader program, the Canadian Integrated Traceability Program (CITP) and the Canadian Livestock Identification Agency (CLIA)
• contribute to provincial programs that assist industry in preparing for the enhanced feed ban
• work with provincial and territorial partners and with industry to develop the next generation of agriculture and agri-food policy
• continue to support industry's efforts to develop food safety, quality and traceability systems

Expected Results

• farmed animals can be traced from birth throughout their life cycle
• waste disposal infrastructure in place
• development and adoption of industry-led and government-recognized on-farm food safety process control systems by all commodities in the primary production sector
• development and participation in food safety systems, developed by the industry and recognized by government, by other sectors of the agri-food continuum
• development and government recognition of food quality process control systems at minimum in the sectors required by market specification

Performance Indicators

• regulatory strategy for priority livestock species animal identification is complete and costs and benefits have been identified
• livestock movement strategies drafted for priority species
• number of successfully completed projects that demonstrate traceability
• number of RFID readers adopted by industry (higher number = more successful)
• completion of priority activities, including a well-documented business plan
• the number of successfully completed projects that enhance SRM disposal capacity
• number of systems developed in the various stages (phases) of SD component
• number of organizations participating in OFI systems
• progress of provinces in implementation of FSI initiatives

Program Activity: Markets and International
Expanding international opportunities for the Canadian agriculture and food sector

Commitments 2007-2008

• work through the agriculture negotiations and other WTO activities to promote and defend Canada's interests
• manage bilateral and regional trade agreements and negotiations
• engage in trade litigation when necessary, and increase Canada's trade advocacy efforts abroad through targeted initiatives
• work to ensure that the interpretation and implementation of existing international obligations do not unnecessarily restrict trade, and continue working toward re-opening and expanding markets for Canadian beef and cattle that were closed following the discovery of BSE in 2003
• work bilaterally and multi-laterally to influence the development of technical trade policies, measures and international standards
• review the Canadian regulatory environment to enhance the competitiveness of Canadian agriculture
• enhance the abilities of the Canadian food industry to produce high-quality food products while meeting current and future consumer needs
• continue to support industry associations in gaining recognition for the safety and quality of Canadian agriculture and food products
• engage industry with governments to develop traceability implementation plans

Expected Results

• Canadian interests strategically advanced through participation in WTO Committee on Agriculture, WTO agriculture trade and accessions negotiations
• Canadian approaches fully informed through communications and consultations activities with agriculture sector and provincial governments
• Canadian interests strategically advanced through regional/bilateral trade negotiations
• Canadian approaches fully informed through communications and consultations activities with agriculture sector and provincial governments
• Canadian interests advanced through strategic participation in offensive trade cases
• Canadian policies and programs adequately defended as required
• increased influence in the development and application of international rules, technical standards and policies governing the trade of agriculture
• gradual opening of international markets for cattle and livestock products
• Canadian positions informed and influence international technical trade discussions to advance Canada's agri-food sector's interests; and development of domestic policies in line with Canada's (existing or evolving) international obligations
• industry responsiveness to consumer and buyer demands for product differentiation based on quality-related product attributes facilitated through development of quality standards and analysis- based recommendations made on food industry technical/regulatory issues
• industry responsiveness to consumer demands for specific attributes facilitated by the use of effective communication of data and analysis on new and emerging trends
• industry responsiveness to market demands
• farmed animals can be traced through their life cycle

Performance Indicators

• analysis of WTO notifications, submitting written questions to members for clarification, responding to questions from countries, participation at WTO Committee on Agriculture
• Canadian interests strategically advanced through WTO agriculture trade negotiations meetings and related activities and regional and bilateral trade negotiations meetings and related activities
• participation in bilateral WTO accession meetings to negotiate favourable market access conditions for Canada's agricultural export interests; analysis of documents prepared by the Secretariat, other WTO members and acceding parties on multilateral issues
• Canadian approaches fully informed through communications and consultations activities with the agriculture sector and provincial governments
• Canadian interests advanced through strategic participation in offensive trade cases
• Canadian policies and programs adequately defended as required
• number of initiatives where objectives were met towards prevention, minimization or resolution of international trade barriers and other irritants through trade advocacy, bilateral negotiations and/or dispute resolution
• participation at international fora concerning multilateral technical trade issues
• number of new or updated, consensus-based, whole value chain agreements leading to national standards/guidelines, assurance programs, regulations, and/or audit/ enforcement provisions
• number of analytical reports, briefings, workshops and/or presentations completed for use in regulatory decision-making processes
• number of new or updated data purchases, briefings, reports, media articles, meetings, workshops, and/or presentations completed for the department and industry
• number of industry initiatives aimed at marketing Canadian products based on healthy-quality attributes
• number of livestock identification implementation plans completed

Program Activity: National Farm Products Council

In 2007-2008, the second year of NFPC's Strategic Plan 2006-2009, the Council will focus on the priorities and commitments outlined in the table below.

Note: Because the NFPC reports through the Minister of Agriculture and Agri-Food, and contributes to AAFC's Security of the Food System strategic outcome, it is being included in this table with all other contributing program activities.

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Monitor supply management and national check-off agency operations in the balanced interest of all stakeholders

Commitments

• renewed federal-provincial-territorial agreements among marketing agencies and governments
• monitor the work of the five national agencies

Expected Results

• completion of the federal-provincial-territorial agreements with CEMA, CTMA and CBHEMA agencies in collaboration with provincial government agricultural supervisory agencies
• approval of allocation policies (approval of quota order) and regulations (post approval/levy orders), etc.
• process requests for amendments of orders and regulations and agency proclamations/marketing plan
• positive progress in implementation of a national levy collection system on inter-provincial marketing and imports with the Canadian Beef Cattle Research, Market Development and Promotion Agency

Performance Indicators

• completion of a work plan to complete the process, agreed to by agencies, provincial governments and NFPC
• number of policies reviewed and approved
• number of requests processed
• level of compliance of agency orders and regulations
• continued efforts by the agency to complete the legal framework required to implement the system

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Work in promoting effective marketing of farm products

Commitments

enhanced communication and relationships with stakeholders and governments

Expected Results

• active participation in agency, stakeholder, and portfolio meetings as well as convening workshops and conferences
• active participation in meetings and activities of the National Association of Agricultural Supervisory Agencies (NAASA)

Performance Indicators

• quality of relationships with national agencies and industry associations
• quality of relationships with provincial government supervisory agencies

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Facilitate the resolution of disputes

Commitments

management of complaints including provision of alternative dispute settlement process of holding of a quasi-judicial hearing

Expected Results

development of the processes for the management and facilitation of complaints, such as Alternative Dispute Resolution

Performance Indicators

• effectiveness of the complaint process
• feedback from parties
• self-assessment

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Share information and knowledge regarding supply management

Commitments

increased knowledge in the market of supply management

Expected Results

• development of communication products and services
• internal and external research projects which may include studies relative to supply management, innovation and technology within the industry, discussion forums, etc.
• work with portfolio partners in the development of the next generation of agriculture and agri-food policy

Performance Indicators

• quality of communications products
• number of studies and projectsundertaken externally and internally in collaboration with other departments and agencies.
• participation in AAFC working groups

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Pursue opportunities for the establishment of new promotion-research agencies

Commitments

increased awareness among farm product groups about their opportunity to create promotion-research agencies

Expected Results

consultations with farm produce groups to consider the establishment of promotion-research

Performance Indicators

number of requests for information sessions

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Provide efficient, transparent and responsible management

Commitments

• provision of support to Council
• improved administration of the Agricultural Products Marketing Act (APMA)
• renewed Memorandums of Understanding and Services Level Agreements
• renewed corporate policies, systems and procedures
• participation on internal and intra/inter-agency committees

Expected Results

• delivery of secretariat services
• streamlining the administrative process for orders and regulations
• completion of the Memorandums of Understanding and Service Level Agreements with AAFC and the Department of Justice
• development of policies, systems and procedures to meet the requirements under the MAF
• continued implementation of the Government of Canada's MAF

Performance Indicators

• feedback from Council Chairperson and members
• improved efficiency of the process
• implementation of MOUs
• implementation of new policies and systems
• yearly self-assessment of application of sound management practices

Strategic Outcome 2:

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

INTRODUCTION

Farmers understand that good stewardship of environmental resources is the key to the sustainability and profitability of their operations.

At the same time, environmental stewardship is a priority for Canadians and consumers around the world. They have increasingly high environmental expectations for all sectors of the economy, including agriculture and agri-food.

Farmers, industry, governments, environmental organizations, and citizens must work together to achieve the goals of sustainable development to ensure both an economically vibrant agriculture and agri-food sector and a healthy environment and society.

OPERATING ENVIRONMENT

To enhance their competitiveness in the global market place, Canadian producers have increasingly diversified, intensified and specialized their operations. They have also implemented practices supported by the Government of Canada's environmental programming. Together, provincial and territorial governments and industry are taking steps to mitigate the risks to the environment from agriculture and to position the agricultural sector to deal with the risks environmental factors may pose to production and competitiveness.

During the next three years, AAFC will be challenged to develop innovative policies, tools and technology related to ensuring the Health of the Environment. To this end, the department's efforts must not simply put the agriculture and agri-food sector on sounder footing, both in terms of a more secure production base and a more competitive position, they must also proceed in tandem with the broader environmental agenda of the Government of Canada.

AAFC has been working to put in place the final environmental components of the APF, while looking ahead to determine what will be required to address environmental challenges under the next generation of agriculture and agri-food policy and programming. At the same time, the department is aligning its position with government-wide initiatives, such as a strategy for biofuels production and use, and Canada's proposed Clean Air Act.

STRATEGIC RESPONSE

To achieve the Health of the Environment strategic outcome, AAFC has a range of activities and initiatives relating to air, water, soil and biodiversity that contribute to providing Canadian and international consumers with high-quality food that has been produced using environmentally sound crop and livestock management practices. This helps secure the sustainability of the Canadian agriculture and agri-food sector and the quality of environmental resources for present and future generations.

ENVIRONMENT

Achieving environmental sustainability of the industry by preserving the quality and availability of resources - air, water, soil, and biodiversity - for present and future generations

Net Planned Spending and Full Time Equivalents - Environment

2007-2008		2008-2009		2009-2010
$ millions	FTE	$ millions	FTE	$ millions	FTE
308.5	1,987	158.2	1,987	158.2	1,987

AAFC's Environmental Priority Areas

The APF sets out the areas where the federal government, in collaboration with the provinces and territories, can provide leadership in environmental actions, including better knowledge and understanding of the links between agriculture and the environment. Through the APF, AAFC, provincial and territorial counterparts and industry organizations continue to work toward achieving common environmental goals. This is done through work on air and climate change, with a focus on particulate emissions, nuisance odours and emissions of greenhouse gases; water availability and quality, with a focus on reduced contamination from nutrients, pathogens and pesticides from agricultural origins; soil health, with a focus on enhanced soil organic matter and reduced soil erosion caused by water, wind or tillage; and biodiversity and agriculture compatibility, with a focus on habitat availability, conservation of plant and animal genetic resources, impacts of invasive alien species, species at risk, and economic damage to agriculture caused by wildlife.

The environmental science focus includes research in support of environment objectives which comprises fundamental understanding of soil, water, and biodiversity and the development of beneficial management practices and on-farm tools and processes to enhance the environmental performance of the agriculture and agri-food sector.

At the same time, AAFC's work on environmental challenges as they relate to the agriculture and agri-food sector will also be framed by its role in the Government of Canada's broader environmental plans and priorities, including Canada's proposed Clean Air Act, and a strategy for increasing the production and use of biofuels.

As AAFC continues to implement the APF, which supports the Government of Canada's environmental strategy, it will also continue to work with partners to develop the next generation of agriculture and agri-food policy. Over the next year, AAFC will continue to aim to reduce environmental risks and impacts related to agricultural production by focusing on the following priority areas:

• developing and implementing innovative policy options to achieve environmental goals under the next generation of agriculture and agri-food policy, including a biofuels strategy;
• conducting research to develop the knowledge to improve the environmental performance of the Canadian agricultural system, foster greater scientific collaboration among partners, and develop an enhanced understanding of the country's bioresources and their protection;
• continuing to implement the National Land and Water Information Service ;
• enhancing the availability of minor use pesticides, risk reduction products and beneficial management practices to improve the health of the environment while contributing to the competitive position of Canadian farmers; and
• developing an AAFC water strategy related to agricultural sustainability through the Prairie Farm Rehabilitation Administration .

Taking Action and Achieving Results

In contributing to these priority areas and achieving results, AAFC will focus its efforts and resources in 2007-2008 on the following key departmental priorities.

1) Developing and implementing innovative policy options to achieve environmental goals under the next generation of agriculture and agri-food policy, including a biofuels strategy

The ongoing challenge under Environmental Policy involves improving and expanding agri-environmental indicators (an area where Canada is becoming recognized as a world leader) and policy development and integration to monitor and report progress. It also involves identifying new tools and mechanisms in support of the environment program activity of the department. This means addressing agri-environmental policy issues, such as air, climate change and water in the broader contexts of rural landscapes, watersheds and ecosystems, and sustainable development, while acknowledging the positive impacts of producers on maintaining environmental quality.

As mentioned, AAFC is working with its provincial and territorial partners, along with industry and other federal government departments and agencies, to develop the next generation of agriculture and agri-food policy, for implementation in 2008. As there is with the existing APF, there will be a significant environmental component to the new policy framework. In 2007-2008, AAFC will continue consultations and negotiations with its provincial and territorial partners on policy options relating to environmental components of the next generation of agriculture and agri-food policy.

The department will also develop transition plans for those existing environmental programs that will continue under the next generation of agriculture and agri-food policy.

2) Developing the knowledge to improve the environmental performance of the Canadian agricultural system, fostering greater scientific collaboration among partners, developing an enhanced understanding of the country's bioresources and their protection

Acting on agricultural risks presumes a sound knowledge of the environment, and specifically a better understanding of the relationship between agriculture and the environment. It is essential to understand the processes and mechanisms by which agricultural inputs, such as nutrients and pesticides, affect resources, such as air, water, soil, and biodiversity, under different agri-environmental landscapes and management practices. It is also necessary to understand the relationships and interactions between the different components of the agri-environment, to reduce the environmental footprint of pest management practices and to determine the outcome of agricultural inputs and wastes in the environment. Such a scientific understanding is crucial for providing sound advice to policy makers and land resource and extension specialists on the effects of agricultural production on air, water, soil and biodiversity. Gaining greater knowledge through multidisciplinary research in these areas will be a key priority for AAFC in 2007-2008.

The knowledge gained from scientific research can be used to develop beneficial management practices and indicators of the environment's state, and also be applied toward the use of innovative environmental technologies, genetic resources and biological information by the sector.

Another key ongoing research priority for AAFC in 2007-2008 will be enhancing the understanding of Canada's bioresources and how to best protect them, including conserving their genetic diversity. To this end, the department will continue to develop information on the classification, chemical and molecular characterization, and attributes of Canadian bioresources, and will develop science-based tools and knowledge to predict the behaviour of biological resources in response to environmental challenges, as well as participate in collaborative efforts to ensure the conservation of germplasm through plant and animal gene banks.

3) Continuing to implement the National Land and Water Information Service

In 2005, AAFC launched the National Land and Water Information Service project, to strengthen the capacity of land managers to make better decisions about land use. The National Land and Water Information Service is transforming the way AAFC delivers services to Canadians and is incorporating the principles of AAFC's Service Delivery Strategy into its deliverables to ensure a client-focused approach. Not only does the project support the delivery of the current APF, it is also well-positioned to support the development and delivery of the next generation of agriculture and agri-food policy.

The project is being implemented in phases over four years. It is a co-ordinated, national initiative providing access via the Internet to geospatial information and interpretive models that support local and regional land-use decision-making. Through partnerships and collaboration, the service will link the land-use, soil, water, climate and biodiversity information that supports local and regional land-use decision-making by federal, provincial, territorial and municipal governments, non-governmental organizations, and the private sector. This improved access to information will provide value to producers and other land-use decision makers. It will help provide the support they need to balance economic development and environmental sustainability. The information will form the basis for environmental farm planning, and help producers make decisions such as the kind of production a particular section of land will best support.

In 2007-2008, the department will complete Phase 2 of the implementation of the Service. Under Phase 2, the initial information technology platform is being built and mechanisms are being established to manage and house agri-environmental geospatial information according to national standards and policies.

Concurrently, the project will also initiate implementation of Phase 3 activities in 2007-2008, which will support the delivery of new geographic information system (GIS) services on the information technology platform. Through the National Land and Water Information Service, new GIS applications and services will be made accessible to users across Canada. It will provide direct access to geospatial data, maps and tools and develop improved Web-based services. Moreover, users will be able to access information and data in both official languages and in standardized formats.

4) Developing an AAFC water strategy related to agricultural sustainability through the Prairie Farm Rehabilitation Administration

Agriculture depends on an adequate supply of good quality water for plant and animal production. Safe, reliable water supplies and the accompanying infrastructure are necessary for irrigation, livestock watering and processing operations, as well as domestic and potable uses.

Agriculture also has the capacity to affect water quality and it is in the sector's interests to minimize its adverse impacts on water quality, in order to help ensure that its future needs for good quality water can be met.

Working through the Prairie Farm Rehabilitation Administration (PFRA), in 2007-2008 AAFC will create a governance structure for departmental water-related activities, to help AAFC staff and other stakeholders better understand the department's role in ensuring the sustainability of Canada's water. This new structure will contribute to more focused partnerships with provincial agencies, and will help ensure AAFC is best positioned to contribute to Government of Canada discussions on water strategy.

In addition, AAFC will continue to work to improve producer access to secure water supplies of acceptable quality. The National Water Supply Expansion Program provides technical and financial assistance for on-farm and community infrastructure, and strategic studies to understand agricultural water supply and demand and evaluate new technologies. In particular, there are growing industry demands for sustainable irrigation development and management. AAFC supports sustainable irrigation practices through applied research, demonstration and technology transfer conducted at PFRA irrigation centres in Saskatchewan and Manitoba.

5) Continuing to support environmental farm plans and the development and adoption of on-farm beneficial management practices through financial and technical assistance

Agricultural risks to the environment will be best dealt with through collaborative efforts of governments, producers and other stakeholders. The department, through the PFRA, delivers a comprehensive package of tools and services to encourage environmental stewardship.

Environmental farm plans help producers assess their operations and determine environmental risks and opportunities. The National Farm Stewardship Program helps producers address these risks by providing financial and technical support to adopt beneficial management practices. Greencover Canada complements these programs by targeting technical and financial assistance to more fragile forage, range land and riparian areas.

AAFC will continue to support sustainable land management in other ways, such as through the management of 2.1 million acres of native range land under the PFRA Community Pasture Program, and agroforestry programs provided through the PFRA Shelterbelt Centre that help to prevent soil erosion, protect riparian areas, provide wildlife habitat and sequester carbon.

Highlights of agri-environmental activities

AAFC will continue to build its capacity together with provinces, territories and the industry to respond to the challenges of managing agri-environmental issues. Efforts will continue to focus on the application of science to develop beneficial agricultural management practices; the development of information, knowledge and skills; and the means to assist Canadian producers to improve environmental performance and economic competitiveness through action on their farms. APF environmental initiatives, including Environmental Farm Planning , the National Farm Stewardship Program, and Greencover Canada, will be delivered in collaboration with the provinces and producer groups.

Some other areas and pertinent activities and initiatives will include:

• the National Agri-environmental Health Analysis and Reporting Program, to enhance AAFC's capacity for developing and improving science-based agri-environmental indicators and policy tools;
• the Gaps initiative, now in its fourth of five years, to address gaps in knowledge through scientific research on the impact of intensive livestock and cropping systems;
• AAFC strategies in air, water, soil, and biodiversity to help provide guidance in responding to the key risks and opportunities for the agriculture and agri-food sector, and ensuring these strategies contribute to the Government of Canada's broader goal to ensure the health of Canadians;
• the Watershed Evaluation of Beneficial Management Practices , a multi-partner project designed to evaluate the effects of beneficial management practices on water quality at a watershed scale;
• AAFC's Pest Management Centre (PMC) is working with farmers, pesticide companies, the provinces and other stakeholders to facilitate better access to new pest-management technologies. The PMC operates three programs to enhance the environmental stewardship and competitiveness of Canadian farmers:
  • the Pesticide Risk Reduction Program , a joint initiative with Health Canada's Pest Management Regulatory Agency , to help producers to develop commodity-specific pesticide risk-reduction strategies, and provide support for implementing these strategies;
  • the Minor Use Pesticides Program supports the introduction of new uses of reduced-risk minor-use products. The program will provide benefits to Canadian producers, the environment and consumers by focusing on:
    • making minor use pesticides available more readily, with emphasis on reduced-risk products;
    • working on joint projects with the United States in an effort to have new products available in both countries simultaneously; and
    • providing Canadian producers with access to new pest-management technologies to improve their competitiveness domestically; and
  • the Minor Use Research Program supports the activities of the Pesticide Risk Reduction and the Minor Use Pesticides programs by funding projects to encourage the registration of new products for Canada, and to identify reduced-risk solutions for high-priority pest control issues.

BENEFITS FOR CANADIANS

Environmental stewardship of air, water, soil, and biodiversity by agricultural producers will contribute to a healthy environment for all Canadians. A healthy environment is crucial to the sustainability and profitability of the agriculture and agri-food sector, which is a key component of the Canadian economy. AAFC activities and initiatives, in partnership with provinces, territories, municipalities, industry, and producers, will contribute to a secure future for the sector, a healthy environment and quality of life for all Canadians.

Strategic Outcome 2: Health of the Environment

Program Activity: Environment
Achieving environmental sustainability of the industry by preserving the quality and availability of resources air, water, soil, and biodiversity for present and future generations

Commitments 2007-2008

• develop and implement innovative policy options to achieve environmental goals under the next generation of agriculture and agri-food policy, including a biofuels strategy
• develop the knowledge to improve the environmental performance of the Canadian agricultural system, foster greater scientific collaboration among partners, develop an enhanced understanding of the country's bioresources and their protection
• continue to implement the National Land and Water Information Service
• enhance the availability of minor use pesticides, risk reduction products and beneficial management practices to improve the health of the environment while contributing to the competitive position of Canadian farmers
• develop an AAFC water strategy related to agricultural sustainability through the PFRA
• continue to support EFPs and the development and adoption of on-farm beneficial management practices through financial and technical assistance

Expected Results

• environmental components of new agreements on agricultural policy developed with provinces
• enhanced environmental performance of the Canadian agricultural system
• enhanced understanding of Canadian bioresources and protection and conservation of their genetic diversity
• increased access to authoritative data via the National Land and Water Information Service
• increased accuracy and currency of data
• increased content and coverage of data
• growers have greater access to new pest management technologies, thereby increasing their competitiveness domestically and abroad
• creation of a governance structure for AAFC water-related activities
• establishment of an annual forum on water in agricultural landscapes
• staff and provinces will have a better understanding of AAFC's role in water
• more focused partnerships developed with provinces
• AAFC better positioned to contribute to the federal water strategy discussions
• increased uptake of EFPs
• increased adoption of on-farm beneficial management practices by agricultural producers in the management of land, water, air, and biodiversity

Performance Indicators

• environmental components included in implementation agreements signed with all provinces and territories
• number of scientific publications (number of peer-reviewed articles in scientific and technical literature, etc.), cooperative research (number of signed agreements with industry partners, etc.), technology transfer activities (number of oral communications, posters, reports, press articles, etc.), innovations (number of licenses, royalties, copyrights, patents, etc.), recognition and influence (number of invited presentations, prizes, awards, etc.)
• completion of the National Land and Water Information Service Project - Phase 2: Establish geospatial environment
• implementation of the National Land and Water Information Service Project - Phase 3: National Source for Agri-Environmental Geospatial Information
• increased usage of the National Land and Water Information Service
• number of minor use and reduced risk pesticide regulatory submissions made to Health Canada's Pest Management Regulatory Agency
• number of crop profiles, risk reduction strategies, research projects and new products, practices or technologies that can be utilized by growers
• governance structure is operational
• annual meeting of the forum on water in agricultural landscapes
• AAFC staff using the strategic water plan as a work planning and policy-development tool
• feedback from the provinces
• IWRM partnership developed with Manitoba and Environment Canada as a pilot
• AAFC becomes significant contributor in federal water policy discussions
• number of reviewed (i.e. completed) Environmental Farm Plans and/or Equivalent Agri-Environment Plans

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