ARCHIVED - Agriculture and Agri-Food Canada

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Section I - Departmental Overview

Message from The Minister

Canada's agriculture and agri-food sector matters for Canadians. It drives our economy, generating more than eight per cent of our GDP, employing one in eight Canadians and, including seafood exports, contributing $7.1 billion to our trade surplus in 2006. It supports and sustains our rural communities and our cities. And it secures our health and well-being by providing high-quality, nutritious food for our tables.

My own farming background has given me a deep appreciation of the contribution that our farm families make to this great country. That is why my bedrock principle as Minister of Agriculture and Agri-Food is: Farmers First.

If farmers succeed, then food processors succeed, retailers succeed, and Canadian consumers benefit. Everything starts with a robust, vibrant farm gate.

This Government continues to put farmers first. We are helping farmers mitigate the high cost of production. We are helping the next generation of farmers take over the family farm through increased capital gains tax exemption.

We are working to enhance opportunities for our western wheat and barley producers through marketing choice. We're pressing for an ambitious outcome at the World Trade Organization for the benefit of Canada's entire agriculture sector, including both supply-managed and export-oriented industries.

We are cultivating a climate of innovation in this country from 'mind to market' to drive producers' competitiveness. Over the next nine years, for instance, this government is investing $2.2 billion to make Canada a world leader in biofuel development. Biofuels are good for our environment. They create new jobs in our towns and cities and important new markets for our farm families.

As we look to the future, new challenges face the Canadian agriculture and agri-food sector - tougher competition internationally, persistent market-distorting subsidies in competing countries and greater demands from consumers.

I believe, however, that our sector is more than up to meeting and beating these challenges. We have abundant natural resources, world-class innovation capacity, and a skilled and adaptive industry from the farm gate to the consumer's plate.

The task before us now is to help producers and the entire sector turn these strengths into profitable growth. To this end, agriculture ministers across Canada and I have worked with industry to build Growing Forward, a new policy framework for a profitable, competitive and innovative agriculture and agri-food sector that seizes opportunities in responding to market demands and contributes to the health and well-being of Canadians.

Programming under Growing Forward will be rolled out through 2008-09. Ministers have agreed to several benchmarks, including innovation, flexibility, and transparent, efficient program delivery. A new suite of business risk management programs that are more responsive and bankable for farmers will be up and running by April 1, 2008. All other programming will be developed and implemented through the year, as we work with governments and industry to design programs that meet the needs of producers and the entire sector. In the meantime, APF activities will continue throughout the transition year and will be replaced by new programs as they are implemented.

Since being appointed Minister in August 2007, I have been impressed by the teamwork and sense of dedication shown by the partner organizations in the Agriculture and Agri-Food (AAF) Portfolio. These organizations - Agriculture and Agri-Food Canada, the Canadian Food Inspection Agency, Farm Credit Canada, the Canadian Grain Commission, the Canadian Dairy Commission, and the National Farm Products Council - have different mandates, different roles and responsibilities and operate under different legislation. However, the organizations' common denominator is their shared goal of supporting and enhancing the agriculture and agri-food sector.

Now under the vision of Growing Forward, we are striving to build a profitable, competitive and innovative industry that seizes emerging market opportunities and contributes to the health and well-being of Canadians. I am relying on the continued collaborative efforts of a strong AAF Portfolio to realize this vision, while delivering the best possible services to our farmers and benefits for all our citizens.

Gerry Ritz, P.C., M.P.,
Minister of Agriculture and Agri-Food
and Minister for the Canadian Wheat Board

Management Representation Statement

We submit for tabling in Parliament the 2008-09 Report on Plans and Priorities for Agriculture and Agri-Food Canada.

This document has been prepared based on the reporting principles contained in the Guide to the Preparation of Part III of the 2008-09 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• it adheres to the specific reporting requirements outlined in the Treasury Board of Canada Secretariat guidance;
• it is based on the department's strategic outcomes and program activities that were approved by the Treasury Board of Canada Secretariat;
• 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 of Canada Secretariat.

Yaprak Baltacioglu Deputy Minister	Liseanne Forand Associate Deputy Minister

Raison d'être

AAFC is an economic and science-based department that works to ensure Canada's agriculture and agri-food sector is able to compete in international and domestic markets to derive economic returns to the sector and the Canadian economy as a whole. Through its work, the department strives to help the sector maximize its long-term profitability and competitiveness.

AAFC's program activities form a cohesive action plan which, together with the work of the agriculture and agri-food sector, provides benefits for all Canadians, including:

• a reliable supply of safe and high-quality agri-food products;
• economic, social and environmental contributions through greater competitiveness and sustainability;
• enhanced compatibility between nature and agriculture;
• increased opportunities for growth in rural communities; and
• greater international recognition for quality Canadian products and expertise.

Organizational Information

Mandate

AAFC provides information, research and technology, and policies and programs 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, and conducting research and development. The Minister of Agriculture and Agri-Food is also responsible for co-ordinating federal rural development efforts to enhance the quality of rural life, and for facilitating economic and social development through co-operatives.

In addition to AAFC, there are five other organizations that make up what is known as the agriculture and agri-food portfolio:

• the Canadian Dairy Commission (CDC) , which oversees pricing, policy co-ordination and marketing for the Canadian dairy sector;
• the Canadian Food Inspection Agency (CFIA) , which delivers all federal inspection services related to food, animal health and plant protection;
• the Canadian Grain Commission (CGC) , which is responsible for grain quality and quantity assurance, research, and producer protection;
• Farm Credit Canada (FCC) , which delivers financial services to all sectors of agriculture -- primary producers, value-added businesses and suppliers; and
• the National Farm Products Council (NFPC) , which supervises the operations of national marketing agencies or promotion and research agencies established under the Farm Products Agencies Act.

The Minister is also responsible for the Canadian Wheat Board (CWB) , which markets wheat, durum wheat and barley grown in Western Canada around the world.

RPP Structure

This Report on Plans and Priorities (RPP) is aligned with Agriculture and Agri-Food Canada's Management, Resources and Results Structure (MRRS), which provides a standard basis for reporting to parliamentarians and Canadians on the alignment of resources, program activities and results. The department's MRRS is made up of strategic outcomes, its Program Activity Architecture (PAA), and a description of its governance structure.

Strategic outcomes are long-term and enduring benefits to Canadians that reflect the department's mandate and vision. They represent the difference the department intends to make in the lives of Canadians, and they are linked to Government of Canada priorities and expected results.

The PAA is an inventory of all programs and activities undertaken by the department. The programs and activities are depicted in a logical and hierarchical relationship to each other and to the strategic outcome to which they contribute. For any given department, the PAA may map to several strategic outcomes and usually consists of multiple program activities, sub-program activities and sub-sub-program activities. It should be noted that as work continues on Growing Forward during 2008-09, AAFC will be looking at new programming that meets the objectives of the new policy framework.

This RPP reflects the structure of Agriculture and Agri-Food Canada's existing strategic outcomes and PAA.

AAFC's 2008-09 Program Activity Architecture

Security of the Food System	Health of the Environment	Innovation for Growth
Business Risk Management (BRM)	Environment	Innovation & Renewal
Margin-based Programs	Direct On-Farm Programming	Science Policy & Coordination
Net Income Stabilization Account and Other Business Risk Management Programs	Pest Management Programs	Agriculture Transformation Programs
	Environmental Health Science
Disaster Programs	National Land and Water Information Service	Renewal Programs
Insurance Programs	Land and Water Stewardship	Sustainable Production Systems
Financial Guarantee Programs
AgriInvest	Community Pastures Program	Bioproducts and Bioprocesses
		Office of Intellectual Property and Commercialization
Food Safety and Food Quality		Matching Investment Initiative
Food Safety and Food Quality Programs
Food Safety and Food Quality Science		Rural and Co-operatives Secretariats
Markets & International		Rural
International Trade Agreements (WTO, etc.)		Co-operatives
Canadian Agriculture and Food International Program		Canadian Pari-Mutuel Agency
International Science Co-operation
Technical Trade
International Capacity Building
Sector Development and Analysis
Branding Management / Value Chain Round Tables
Market Access and Market Development
Trade Disputes
Regional Operations
National Farm Products Council

Legend
	Strategic Outcome
	Program Activity
	Program Sub-Activity

Voted and Statutory Items Displayed in the Main Estimates

($ millions)
Vote or Statutory Item	Truncated Vote or Statutory Wording	Main Estimates 2008-2009	Main Estimates 2007-2008
1	Operating Expenditures	530.8	605.9
5	Capital Expenditures	32.0	28.6
10	Grants and Contributions	379.0	595.8
15	Pursuant to Section 29 of the Financial Administration Act, to authorize the Minister of Agriculture and Agri-Food, on behalf of her Majesty in Right of Canada, in accordance with terms and conditions approved by the Minister of Finance, to guarantee payments of an amount not exceeding, at any one time, in aggregate the sum of $1,500,000,000 payable in respect of cash advances provided by producer organizations, the Canadian Wheat Board and other lenders under the Spring Credit Advance Program and $1,500,000,000 payable in respect of cash advances provided by producer organizations, the Canadian Wheat Board and other lenders under the Enhanced Spring Credit Advance Program.	0.0	0.0
20	Pursuant to Section 29 of the Financial Administration Act, to authorize the Minister of Agriculture and Agri-Food, on behalf of her Majesty in Right of Canada, in accordance with tems and conditions approved by the Mininster of Finance, to guarantee payments of amounts not exceeding, at any time, in aggregate, the sum of $140,000,000 payable in respect of Line of Credit Agreements to be entered into by the Farm Credit Corporation for the purpose of the renewed (2003) National Biomass Ethanol Program.	0.0	0.0
(S)	Contribution Payments for the AgriStability Program	655.2	-
(S)	Contribution Payments for the AgriInsurance Program	388.7	-
(S)	Contribution Payments for the AgriInvest Program	159.5	-
(S)	Payments in connection with the Agricultural Marketing Programs Act	137.5	138.7
(S)	Contribution Payments for the Agricultural Disaster Relief Program / AgriRecovery	108.4	-
(S)	Contributions in support of the AgriInvest Cost of Production Element	100.0	-
(S)	Canadian Cattlemen's Association Legacy Fund	5.0	5.0
(S)	Loan guarantees under the Farm Improvement and Marketing Cooperatives Loans Act	4.0	4.0
(S)	Grants to agencies established under the Farm Products Agencies Act	0.2	0.2
(S)	Contributions in Support of Business Risk Management Programs under the Agricultural Policy Framework - Canadian Agricultural Income Stabilization Program	-	570.5
(S)	Contributions in Support of Business Risk Management Programs under the Agricultural Policy Framework - Production Insurance	-	407.0
(S)	Contributions in Support of Business Risk Management Programs under the Agricultural Policy Framework - Agriculture Policy Initiatives	-	4.2
(S)	Contributions to employee benefit plans	69.2	74.3
(S)	Minister of Agriculture and Agri-Food - Salary and motor car allowance	0.1	0.1
(S)	Canadian Pari-Mutuel Agency Revolving Fund	-	-
TOTAL DEPARTMENT		2,569.6	2,434.3

(S) denotes a Statutory item

The Main Estimates for 2008-2009 are $2,569.6 million compared to $2,434.3 million for 2007-2008, an increase of $135.3 million. The increase is mainly attributable to funding received for the new suite of BRM programming offset by the sunsetting of the five year APF funding.

To ensure a smooth transition from the Agricultural Policy Framework to Growing Forward, the new policy framework for Canada's agriculture, agri-food and agri-based products industry, Cabinet has approved $300 million for 2008-2009 for non business risk management programming, This funding would be requested through Supplementary Estimates.

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 roundng, figures may not add to the totals shown.

Departmental Planned Spending and Full-time Equivalents

($ millions)	Forecast Spending 2007-2008¹	Planned Spending 2008-2009²	Planned Spending 2009-2010²	Planned Spending 2010-2011²
Main Estimates
Business Risk Management	1,272.5	1,763.6	678.0	675.3
Food Safety and Food Quality	120.9	63.1	63.0	63.1
Markets and International	112.0	96.3	96.1	96.2
Environment	331.7	246.8	247.7	247.5
Innovation and Renewal	611.9	425.7	370.7	366.7
Rural and Co-operatives Secretariats	27.0	15.6	13.6	13.6
National Farm Products Council	3.8	5.0	5.0	5.0
Canadian Pari-Mutuel Agency	15.0	13.8	13.3	13.3
Main Estimates (gross)	2,494.8	2,630.0	1,487.5	1,480.6
Less: Respendable Revenue	60.5	60.4	61.7	63.1
Total Main Estimates	2,434.3	2,569.6	1,425.7	1,417.4
Adjustments (Planned Spending not in Main Estimates):
Supplementary Estimates:
Funding that will help transition producers from the current Business Risk Programming to the new AgriInvest program	569.1	-	-	-
Funding for the Cost of Production Benefit to assist producers in addressing past income declines due to increases in costs of production over the last four years	406.1	-	-	-
Funding in support of the implementation of the Agricultural Policy Framework	84.0	-	-	-
Funding to set up a disaster relief framework that would provide a coordinated process for federal, provincial, and territorial governments to respond rapidly to agricultural disasters (AgriRecovery Program)	71.0	-	-	-
Contributions in support of Business Risk Management Programs under the Agricultural Policy Framework - Canadian Agricultural Income Stabilization Program	37.0	-	-	-
Funding to facilitate the disposal of tissues that can carry the Bovine Spongiform Encephalopathy (BSE) disease and infect the entire food and animal chain	34.4	-	-	-
Funding to assist producers in British Columbia, Alberta, Saskatchewan and Ontario with purchasing and hauling feed and/or water for animals in an effort to recover from the economic impacts of the 2006 drought	32.6	-	-	-
Funding for investments in sectoral capacity that support the transformation and transition of farmers and agri-food and agri-bioproduct into new areas of opportunity (New Opportunities for Agriculture Initiatives)	31.7	-	-	-
Funding to ensure that agricultural producers have an opportunity to invest and participate in the emerging renewable fuels industry (ecoAgriculture Biofuels Capital Initiative)	30.5	-	-	-
Funding to support the establishment, further development and operations of bioproducts research networks (Agricultural Bioproducts Innovation Program)	28.7	-	-	-
Funding to support the Cover Crop Protection Program in response to flood damage	24.8	-	-	-
Funding to support the Canadian Farm Families Option Program, which provides low income farm families with short-term financial assistance and access to renewal services to improve long-term income	19.0	-	-	-
Funding for the development and implementation of an IM/IT solution that enables efficient and effective delivery of AgriInvest, AgriStability and other future Business Risk Management programs	15.9	-	-	-
Funding to help control the spread and impact of Porcine Circovirus Associated Diseases through the testing and inoculation of hog herds in Canada (Initiative for the Control of Diseases in the Hog Industry - Circovirus Inoculation Strategy)	15.3	-	-	-
Funding for the continuation of capital renewal and maintenance of agricultural facilities across Canada	13.3	-	-	-
Funding to administer a quicker, more flexible Business Risk Management tool for dealing with declines in income	9.8	-	-	-
Reinvestment of royalties from intellectual property and of revenues from sales and services related to research, facilities and equipment	7.8	-	-	-
Funding in support of organizations to facilitate adaptation and rural development within the Agriculture and Agri-Food Sector under the Biofuels Opportunities for Producers Initiative	7.0	-	-	-
Funding to increase the tender fruit sector's viability and profitability by eradicating the Plum Pox Virus in Canada (horizontal item)	6.0	-	-	-
Funding for activities that are essential to the continued implementation of the Public Service Modernization Act (horizontal item)	2.1	-	-	-
Canadian Cattlemen's Association Legacy Fund	2.0	-	-	-
Funding for the Orchards & Vineyards Transition Program to help alleviate the financial burden of transitioning to more competitive stock varieties	1.7	-	-	-
Funding related to the assessment, management and remediation of federal contaminated sites (horizontal item)	1.2	-	-	-
Funding in support of the expansion of co-operatives under the Co-operative Development Initiative	1.2	-	-	-
Transfer from Natural Resources Canada - To support the BIOCAP Canada Foundation	0.6	-	-	-
Funding for the Government of Canada Exhibitions Program and the Government of Canada Rural Exhibits Program (horizontal item)	0.5	-	-	-
Funding to assist producers in Quebec, affected by the golden nematode, more specifically potato producers, in order to provide financial quick relief as well as renewal programming to evaluate longer term implications (Golden Nematode Disaster Program)	0.5	-	-	-
Funding for pest management controls for the evaluation and registration of new low-risk pesticides and increasing the use of evidence-based risk assessments (horizontal item)	0.5	-	-	-
Transfer from Canadian Heritage - For the development of Official Language Minority Communities (Interdepartmental Partnership with the Official Language Communities) (horizontal item)	0.4	-	-	-
Funding in support of the Federal Accountability Act to evaluate all ongoing grant and contribution programs every five years (horizontal item)	0.2	-	-	-
Transfer from Western Economic Diversification - In support of the Minister's Regional Office in Saskatchewan	0.2	-	-	-
Funding to undertake projects related to the development and application of biotechnology (Canadian Biotechnology Strategy) (horizontal item)	0.1	-	-	-
Funding for implementation of the action plan to strengthen Canada's regulatory system and establish a Centre of Regulatory Expertise within the Treasury Board Secretariat (horizontal item)	0.1	-	-	-
Transfer from National Defence - For public security initiatives (horizontal item)	0.0	-	-	-
Funding to prepare for Canada's participation in International Polar Year 2007-2008, an extensive international research program in the Arctic and Antarctic (horizontal item)	0.0	-	-	-
Transfer to Public Service Human Resources Management Agency of Canada - To support the National Managers' Community	(0.1)	-	-	-
Transfer to Public Safety and Emergency Preparedness - In support of the recently acquired responsibilities related to the Minister's Regional Office in British Columbia	(0.2)	-	-	-
Transfer to Foreign Affairs and International Trade - To provide support to departmental staff located at missions abroad	(0.2)	-	-	-
Less: Spending Authorities available within the Vote	(209.2)	-	-	-
Total Supplementary Estimates	1,245.5	-	-	-
Budget Announcement:
Total Budget Announcement	-	-	-	-
Other:
Operating Budget Carry Forward	31.5	-	-	-
Employee Benefit Plan (EBP)	5.7	-	-	-
Collective Agreement Salary Increases	4.1	-	-	-
Internal Audit	0.4	-	-	-
Assuring Program Continuity in the Implementation of the Growing Forward Policy Framework	-	300.0	-	-
Next Generation of Agriculture and Agri-Food Policy Non-BRM (Growing Forward)	-	-	300.0	300.0
Business Risk Management Suite Programs - Income Stabilization	-	217.6	844.3	846.3
Action Plan for the Agricultural Sector - Enhanced Negative Margin Coverage	-	25.0	25.0	25.0
Funding for the development and implementation of an IM/IT solution that enables efficient and effective delivery of AgriInvest, AgriStability and other future Business Risk Management programs	-	19.4	12.8	-
Initiative for the Control of Diseases in the Hog Industry	-	16.7	18.7	7.2
Funding to set up a disaster relief framework that would provide a coordinated process for federal, provincial, and territorial governments to respond rapidly to agricultural disasters (AgriRecovery Program)	-	13.3	121.7	121.7
Farm Support - Enhanced Agriculture Support	-	8.2	14.3	11.0
Business Risk Management Suite Programs - AgriInsurance	-	6.5	183.5	189.1
Biotechnology Budget (Genomics)	-	6.0	6.0	6.0
Business Risk Management Suite Programs - AgriInvest Cost of Production Element	-	6.0	106.0	106.0
Business Risk Management Suite Programs - Private Sector Risk Management Partnership	-	4.4	4.4	4.4
Amendments to the Advance Payments Program - Administration	-	1.6	1.5	1.5
Total Other	41.8	624.7	1,638.1	1,618.1
Total Adjustments	1,287.3	624.7	1,638.1	1,618.1
Total Net Planned Spending	3,721.6	3,194.3	3,063.9	3,035.5
Less: Non-Respendable Revenue	30.6	32.7	25.3	25.3
Plus: Cost of services received without charge3	54.2	57.6	57.7	58.4
Total Departmental Spending	3,745.2	3,219.1	3,096.4	3,068.6
Full Time Equivalents (FTEs)4	6,705	6,705	6,701	6,700

¹ Forecast Spending 2007-08 reflects the authorized funding levels to the end of the fiscal year 2007-2008 (not necessarily forecast expenditures).

² Planned spending reflects funds already brought into the department's reference levels as well as amounts to be authorized through the Estimates process (for the 2008-2009 through to 2010-2011 planning years) as presented in the Annual Reference Level Update. It also includes adjustments in future years for funding approved in the government fiscal plan, but yet to be brought into the Department's reference levels.

³ Cost of services received without charge include accommodation provided by Public Works and Government Services Canada (PWGSC), contributions covering employer's share of employees' insurance premiums and expenditures paid by Treasury Board of Canada Secretariat (TBS), Worker's compensation coverage provided by Human Resources and Social Development Canada (HRSDC) and salary and associated expenditures of legal services provided by the Department of Justice Canada. See details in the Services Received Without Charge Table on the Website.

⁴ In addition to the FTEs noted above, in 2007-2008 there are 109 FTEs employed by AAFC funded by respendable revenue sources from collaborative research projects with industry, and other activities not funded through AAFC appropriations. Also, 381 FTEs were employed as students. Data for 2008-2009 to 2010-2011 similarly does not make any provision for staff funded through respendable revenue sources or students.

Note: The above amounts include funding for all rotes as well as statutory amounts.

The Planned Spending for 2008-2009 is $3,194.3 million compared to $3,721.6 million for 2007-2008, a difference of approximately $527.3 million. This is largely attributable to 2007-2008 including Budget 2007 items (i.e. $1.0 billion for Cost of Production and AgriInvest Kickstart) partially offset by increases in 2008-2009 related to the new suite of BRM programming and reprofiling of Action Plan funding.

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.

Summary Information

Departmental Resources (total net planned spending)

2008-2009		2009-2010		2010-2011
$ millions	FTE *	$ millions	FTE *	$ millions	FTE *
3,194.3	6,705	3,063.9	6,701	3,035.5	6,700
* Full Time Equivalents

Departmental Priorities

Name	Type
1. Business Risk Management	Ongoing
2. Food Safety and Food Quality	Ongoing
3. Markets and International	Ongoing
4. National Farm Products Council	Ongoing
5. Environment	Ongoing
6. Innovation and Renewal	Ongoing
7. Rural and Co-operatives	Ongoing
8. Canadian Pari-Mutuel Agency	Ongoing

Program Activities by Strategic Outcomes

	Expected Result	Planned Spending (Net) ($ in millions)			Contributes to priority:
		2008-2009	2009-2010	2010-2011
Security of the Food System Strategic Outcome
Business Risk Management	Increased producer capacity to manage business risks	2,080.3	2,002.0	1,976.5	1
Food Safety and Food Quality	Protecting the health of Canadians by improved farming practices and processes that lead to increased food safety Increased availability to consumers of high-quality, health-enhancing food products	97.2	97.1	97.1	2
Markets and International	A competitive sector that has the necessary attributes to strategically position itself to take advantage of new market opportunities, and / or to reposition itself to protect against changing market risks Access to export markets is maintained and expanded	127.7	127.5	127.5	3
National Farm Products Council	The supply management system for poultry and eggs works in the balanced interests of producers and consumers	5.3	5.3	5.3	4
Total Security of the Food System		2,310.5	2,231.9	2,206.5
Health of the Environment Strategic Outcome
Environment	Reduced environmental risk from agriculture and agri-food sector, ensuring environmental sustainability of the sector in support of Canada's environmental policies	389.2	388.7	387.1	5
Total Health of the Environment		389.2	388.7	387.1
Innovation for Growth Strategic Outcome
Innovation and Renewal	Participating farmers and farm families meet their financial goals Agriculture and agri-food sector develops sector-based, innovative, market-focused strategies that utilize science to transform commodities into new value-added or bioproduct opportunities for processors, producers and rural communities and new life-sciences products for consumers	465.2	416.3	415.0	6
Rural and Co-operatives	Innovative economic communities benefiting from economic opportunity	29.5	27.5	27.5	7
Canadian Pari-Mutuel Agency	Pari-mutuel betting is conducted in a way that is fair to the Canadian betting public	0.0	(0.5)	(0.6)	8
Total Innovation for Growth		494.7	443.3	441.9
Total		3,194.3	3,063.9	3,035.5

The Planned Spending for 2008-2009 is $3,194.3 million compared to $3,063.9 million for 2009-2010, a difference of approximately $130.4 million. This is largely attributable to reductions related to the following programs:

• in the Business Risk Management (BRM) Program Activity funding for facilitating the disposal of Specified Risk Materials (SRM)
• and in the Innovation & Renewal Program Activity funding for the Canadian Farm Families Options Program, the ecoAgriculture Biofuels Capital Initiative, Agricultural Bioproducts Innovation Program and the Orchards and Vineyards Transition Program.

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.

Operating Environment

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

Canada's farmers, farm families and farming communities are the heart of Canadian agriculture and agri-food, and play an important role in Canada, from both an economic and social perspective. The agriculture and agri-food 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. In 2006, it generated $137 billion in consumer sales in Canada, exported more than $32 billion in agriculture and food products (including seafood), and contributed almost $7.1 billion to Canada's overall trade surplus. It employs about two million Canadians, representing one of every eight jobs in the country.

Ensuring the sector has the tools it needs to continue this contribution is key to maximizing its long-term profitability and competitiveness, while meeting growing market and consumer demands for safe food and environmental stewardship.

The agriculture and agri-food sector is constantly changing and evolving. While this poses challenges for the sector, it also provides enormous potential for all stakeholders to benefit. New markets, better access to existing markets and scientific advances are the keys to achieving a competitive and prosperous future for the sector. Growing Forward will help ensure the sector is best positioned to take advantage of this potential.

Opportunities and Challenges

Production risks

Agricultural production carries inherent risk and uncertainty. There are several factors posing increasing threats to the ongoing capacity of the sector to produce, including the weather, long-term climate change, pests and disease, increased risk of pandemics affecting both animals and people, and increased competition for land and water for agriculture use.

Such threats underline the importance of focusing on biosecurity and the need to proactively prepare for and prevent the impact of potential threats before they occur, while strengthening the capacity of the sector to respond to and recover from crises when they do.

Market and trade conditions

Canada produces far more agriculture and food products than it consumes. As a result, the agriculture and 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.

Several factors are limiting the ability of Canadian producers to compete in the global market. Competition from low-cost suppliers, coupled with more complicated and varied consumer tastes, makes meeting market demands increasingly challenging for the various segments of the value-chain.

Some factors impacting the Canadian agriculture and food sector now, and that could continue to have an impact in future years, include:

• an increasingly liberalized international trading environment;
• the impact of the appreciating Canadian dollar on traded commodities and agricultural inputs;
• increased prices for agricultural inputs such as feed, fertilizer and fuel;
• increased competition from low-cost and high-subsidy countries in bulk commodity markets, and a declining market share for some sectors in Canada;
• agricultural and other policies implemented by other countries;
• an increasing demand from domestic and international consumers for healthy and environmentally sustainable food and related products, with certification playing an increasingly important role for ensuring market access (e.g. organics).

Several of these factors have contributed to the current income crisis facing Canadian livestock producers. Decreasing prices, increasing input costs, a strengthened Canadian dollar and regulatory compliance costs are making it difficult for producers and processors to meet their financial obligations.

To successfully compete in global markets, the sector must be forward-looking and have access to the right information to identify and respond to emerging trends ahead of Canada's competitors.

There is a need to continue providing the tools necessary to encourage adaptation that enables the sector to achieve lower costs, penetrate higher-value markets and achieve greater profitability. Given that Canada relies heavily on exports for the success of the sector, governments also need to work to ensure continued access to existing markets and to gain access to new ones.

Consumer demands

Consumers at home and around the world are seeking more from their food, including greater choice, greater assurance of safety, and better information to help them make healthier choices. Consumers are also becoming more aware of the relationship between agricultural production and the environment.

Thus, considerable scope exists for the sector to further deliver greater food safety, environmental, and health and wellness benefits to consumers. Strong food safety systems will help promote consumer confidence in Canadian agricultural products, both at home and in key export markets, and will demonstrate what the Government of Canada is doing to protect the environment and promote food safety.

Canada has an excellent, longstanding reputation for producing safe food for Canadian and global consumers. This will continue, but the customer of the future for Canada's agriculture and agri-food sector will go beyond purchased food. The potential for production beyond food opens new possibilities such as biofuels and industrial materials.

Increasing innovation

To excel in today's global marketplace, Canada must capitalize on its natural endowments as well as its strengths: the skills and knowledge of its people; its research and development capacity; and its strong production and regulatory systems. Segments of the sector are already competing successfully and are at the forefront of innovation, but that competitive success will need to expand to the sector as a whole.

There is a need for continuous investment in innovation in terms of adoption of new technologies, development of business skills, and understanding of market requirements to enable producers and enterprises to lower costs, penetrate new markets and achieve greater profitability. The sector also needs to focus on product differentiation and value-added opportunities, such as those associated with the bioeconomy, to build a sustainable competitive advantage.

Agriculture will be a central player in the emerging biofuels sector. The Government of Canada's new biofuel strategy supports the development of this emerging sector through a number of initiatives including the intent 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 Government of Canada's agenda

AAFC's priorities are also linked directly to the broader agenda and policy direction of the Government of Canada, including:

• Advantage Canada ;
• the Federal Science and Technology Strategy;
• the Renewable Fuels Strategy; and
• the Speech from the Throne, notably the pillars building a stronger federation, providing effective economic leadership and improving our environment.

Shared jurisdiction

Recognizing the shared jurisdictional nature of agriculture in Canada, it is important to continue to work closely with provincial and territorial partners to develop effective policies and programs for the sector. Growing Forward will involve continued collaboration among federal, provincial and territorial governments in support of shared priorities for the sector's long-term growth and competitiveness.

In addition, jurisdiction for several factors influencing the competitiveness of the sector, such as international trade and regulatory reform, lies outside of AAFC's mandate. The department works with its portfolio partners and other federal departments to ensure positive outcomes on these and related issues to support the long-term competitiveness and prosperity of the sector.

Growing Forward A New Strategic Response

For the agriculture and agri-food sector to adapt and respond to the changing market and production realities, the sector must continue to move beyond the production of traditional bulk commodities, to take full advantage of new opportunities and to keep pace with, and effectively respond to, changing market demands.

While significant progress has been made, the expiry of the Agricultural Policy Framework (APF) at the end of March 2008 provides an opportunity to better position the sector to succeed. The APF was an important investment towards broader transformation across the sector. Growing Forward will build on this investment.

The 2008-2009 fiscal year will be a transition period from the APF to Growing Forward, a transformative policy framework that supports an industry that is competitive in international and domestic markets, generates economic returns to the sector and the Canadian economy as a whole, and meets growing market and consumer demands for safe food and environmental stewardship.

Programs will be evaluated, adjusted, and a new strategic plan embraced by all partners will be put in place to respond to industry requirements. New performance indicators will be developed under Growing Forward to make clear AAFC's commitment to putting farmers first. In the meantime, Canada's agriculture ministers have sought authorities from their governments to continue existing programs under the current APF for up to one additional year while Growing Forward programs are being developed and implemented.

The framework also recognizes that not all provinces are alike. Federal, provincial and territorial programs will include provisions to allow for regional differences. Federal, provincial and territorial governments also recognize that there are instances where more flexible program design and implementation could increase the sector's ability to meet objectives, while taking into account the existing delivery mechanisms of the provinces and territories. Flexibility in program design and delivery, on a provincial/territorial basis, will result in innovative programming that: responds quickly to emerging priorities; advances key objectives, including those established in the framework; and is more responsive to provincial and territorial needs.

Departmental Plans and Priorities

Within the framework of agriculture and agri-food policy, AAFC seeks to achieve results under its three strategic outcomes:

• 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;
• 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; and
• 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.

During the next three years, 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 help ensure the best quality of life for all Canadians.

However, as the APF comes to an end and the transition is made to Growing Forward, the department will redefine its strategic outcomes during 2008-09. These new outcomes will provide the framework within which AAFC will report to Parliament and central agencies on plans, expenditures and performance in subsequent years.

As such, there will be a cross over between the existing strategic outcomes and the new strategic outcomes over the course of the year, but the department's existing strategic outcomes will still apply for the 2008-09 reporting period.

Strategic Outcome: Security of the Food System

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 Canadian Food Inspection Agency and the Canadian Grain Commission, 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 achieving 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.

Program Activity: Business Risk Management

Farming in Canada requires a comprehensive and proactive approach to managing risk. Through BRM programming, AAFC, together with its provincial and territorial government and industry partners, will work to increase farm income stability for farmers. It will also aim to mitigate the impact of disasters on producers and reduce the financial impact of production losses caused by natural disasters, and encourage greater producer investment in their operations.

The 2008-09 fiscal year will mark a change in the way the department approaches BRM programming. While previous income-stabilization programs provided record-levels of assistance, the expiry of the APF provides an opportunity to make advancements in programming to address issues identified through consultations between governments and industry. New income-stabilization programming is being introduced to build on experience gained with past programs and provide producers across the country with more responsive, predictable and bankable assistance. This includes giving producers more control over a portion of such assistance through a savings-account approach to smaller income declines while evolving to an improved margin-based approach to address larger income declines.

Program Activity: Food Safety and Food Quality

Maintaining and enhancing public confidence in the safety and quality of food products is vital to the economic sustainability of Canada's agriculture and agri-food sector. Consumers continue to demand more information and greater assurances about the safety and quality of the food they eat, and they require healthy, nutritious products to help achieve the best possible quality of life. Enhancing Canada's food safety and quality systems and ensuring a stronger link between health and food products will require AAFC to continue to work with its portfolio partners and other federal organizations, provincial and territorial governments, producers and processors, for a horizontal and cohesive approach.

To this end, AAFC will work with all partners in 2008-09 to increase the number of government-recognized food safety control systems developed and implemented across the country, enhance human health and wellness through food, nutrition and innovative products, enhance the quality of food and the safety of the food system, and enhance the security and protection of the food supply.

Over the long term, the new policy framework, Growing Forward will focus on implementing food safety systems within high risk areas of the food system chain. A sector that is seen by the public and its trading partners as a participant in a highly effective Canadian food safety regime, will reap the benefits of being consumers' choice the world over.

Program Activity: Markets and International

Canada relies on international trade for economic growth, and the agriculture and food sector plays a major role in the country's trade success. While Canadian producers and processors have helped Canada earn a strong reputation as a reliable supplier of safe, innovative and high-quality agriculture and food products, there is constant pressure on the sector from other competitors and the trade practices and policies of countries around the world. Understanding market requirements is necessary to innovate and succeed in key emerging sectors, such as the bio-economy and health and wellness products, and in key markets. AAFC will need to work closely with the agriculture and food sector to ensure they have the tools and information to optimize profitability. Ensuring Canada's producers and processors maintain and enhance their reputation, exports, ability to seize market opportunities, and access to international markets will require a continued co-ordinated effort from all partners.

All of these activities come together in support of the Government of Canada's focus on the Americas. AAFC manages the agricultural components of free trade negotiations with Peru, Colombia and the Central America Four, cooperates actively with Brazil and Cuba and represents Canadian interests at the Inter-American Institute for Co-Operation on Agriculture.

Among its Markets and International activities in 2008-09, AAFC, together with its portfolio partners, will continue to support initiatives and strategies that enhance market opportunities and success for Canadian agriculture and food producers and processors, and work to re-open and expand markets for a variety of products. The department will also continue to collaborate with other departments and agencies and work with foreign governments to influence the development of technical trade policies, measures and international standards that reflect domestic Canadian policy, regulatory practices, and priorities and ensure the interpretation and implementation of existing or new international obligations or procedures do not unnecessarily or unfairly restrict Canadian exports.

The department will continue to negotiate multilateral and bilateral trade agreements that are in the best interests of the Canadian sector, and defend Canada's policies and programs against challenges brought by other countries, as well as challenge policies and programs of other countries that negatively affect Canadian interests.

Under the Growing Forward framework, the department will provide the tools to industry organizations and individuals to support their strategic planning. It will provide an environment, and foster skills for export development success. The department will also build supportive institutions to promote Canadian products.

Program Activity: National Farm Products Council

The National Farm Products Council will continue to promote efficient, competitive Canadian agriculture. It will help to improve farm-product marketing between Canadian provinces and territories and internationally.

Specifically, in 2008-09, NFPC will ensure that the supply management system for poultry and eggs as well as the national check-off system for beef works in the balanced interests of all those involved in the regulated products industries, from producers to consumers.

Strategic Outcome: Health of the Environment

Canadian farmers have repeatedly demonstrated that they are valuable stewards of the country's environmental resources. They already plan for and adopt many good environmental farm practices, which not only safeguard resources but also help boost the profitability of their operations. At the same time, it is clear that significantly more must be done to protect the environment as farming production is intensified and increasing numbers of consumers choose to base their buying decisions on a desire to support environmental sustainability.

Environmentally, AAFC supports the agriculture and agri-food sector through technical advice and a suite of program activities in air, water, soil, and biodiversity to ensure environmental resources are used in a way that maintains their sustainability for present and future generations.

Program Activity: Environment

In 2008-09, AAFC and its portfolio partners will work with farmers, industry, governments, environmental organizations, and citizens to reduce environmental risk of the agriculture and agri-food sector and foster improved environmental stewardship of agricultural resources, including air, water, soil, and biodiversity. The department will develop new and improved beneficial management practices (BMPs) and will work to increase adoption by the sector of these BMPs, as well as responsible land- and water-use practices. AAFC will also strengthen its efforts to assess and report on economic and environmental benefits achieved by the adoption of BMPs and other practices by agricultural producers.

Together with Health Canada's Pest Management Regulatory Agency , AAFC will also support the development and adoption by farmers of new pest management practices and the introduction of new technologies that reduce pesticide risk at the farm level.

The department will complete the implementation of the National Land and Water Information Service in support of enhanced agricultural policy development and analysis, as well as improved program delivery.

Under Growing Forward, the department will work with the sector to continue to improve the understanding of agriculture's impact on water quality, of agriculture's ongoing water requirements, and improving agricultural systems to minimize pollution and risk while maximizing economic opportunities.

Strategic Outcome: Innovation for Growth

New knowledge is essential to increased farm profitability, sustainable growth, competitiveness of the agriculture and agri-food sector, and the economic success of Canada's 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.

Within a challenging global environment, there are new domestic and international opportunities emerging for agriculture, particularly concentrated around niche markets and in the emerging bioeconomy. Production of innovative value-added products, processes and services enhances profitability for the agricultural sector, including agricultural producers. Innovation and private sector investment are key drivers for commercialization of these new products, processes and services. However, public investment to support industry led innovation is required to share the risks and accelerate commercialization.

Program Activity: Innovation and Renewal

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 new opportunities.

To this end, AAFC will continue to support innovation and competitiveness in the agricultural industry by reducing barriers for agricultural producers to participate in the emerging biofuels industry, and by supporting industry-led innovation strategies across agricultural value chains and sharing the risk of bringing new technologies into the market place.

In 2008-09, AAFC will further implement its Science and Innovation Strategy, while also complementing the objectives of Canada's federal Science and Technology Strategy, Mobilizing Science and Technology to Canada's Advantage . Through the realization of these strategies, and as part of the Growing Forward framework, the department will work directly with the sector to create an innovative climate that enhances the competitiveness of the agriculture and agri-food sector.

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. Through Renewal programming, in 2008-09 AAFC will work toward increased adoption by farmers of sound business management practices designed to strengthen their operations and improve their financial situations.

Growing Forward will build on these activities and address obstacles that inhibit sector adjustment to market realities. It will align policy with other government departments to ensure there are no impediments to sector competitiveness, and reduce regulatory impediments relating to the introduction of processes and products.

Program Activity: Rural and Co-operatives

Rural Secretariat

The challenges faced by rural communities, such as skilled labour force shortages and global economic downturns in resource industries also affect all natural resource sectors, including agriculture.

Over the last ten years, the Canadian Rural Partnership (CRP) has helped build a knowledge base about rural issues and started putting in place the partnerships and tools necessary to help rural communities achieve economic sustainability. The CRP has worked with rural stakeholders to test different approaches to determine the most effective ways to assist rural communities achieve prosperity and economic success.

While the Rural Secretariat will continue to build knowledge about rural issues and enabling strategies, it will increase its activities to build synergies, to engage rural and cross-governmental and pan-governmental partners, to develop strategies that will enable rural communities to use their innovative capacity to capture the value of local amenities, and achieve greater local economic competitiveness. This will support greater growth and prosperity for rural Canadians, as well as for the agriculture and other natural resource sectors.

Through the Rural Secretariat, the CRP is renewing its rural development focus and will build strategic partnerships in rural communities where the government is already targeting investments.

Co-operatives Secretariat

The co-operative business model has been an effective self-help tool helping Canadians and communities address their challenges and capture economic opportunities. However, lack of awareness of the co-op model and the lack of access to co-op specific expertise limits the development of co-operatives.

Since 2003, the Secretariat, through the Co-operative Development Initiative (CDI) has invested, in partnership with the co-op sector to enhance the capacity to support the development of co-operatives to enable them to provide greater economic benefits to Canadians. Over the last year, CDI provided a specific focus in agriculture (Ag-CDI), helping farmers capture opportunities in bio-fuels and other value-added areas. The Co-operatives Secretariat also developed knowledge about innovative ways for co-operatives to address challenges and capture opportunities for the development of communities.

The Secretariat will continue to support co-op development capacity. It will also build on the knowledge gained through CDI innovation projects to develop a renewed strategy, in close collaboration with all levels of government to enhance the partnership with the sector and other stakeholders to address challenges and capture opportunities and realize benefits for Canadians through the development of co-operatives. The co-op model is particularly suited to contribute to greater competitiveness and community sustainability in key areas such as agriculture, rural, remote and aboriginal communities.

Program Activity: Canadian Pari-Mutuel Agency

The Canadian horse racing industry has undergone significant transformation over the last number of years, both in response to developments specific to the horse racing market, and in response to the emergence of a broader and more competitive gaming environment.

In recognition of this changing landscape, the Canadian Pari-Mutuel Agency (CPMA) initiated a comprehensive review of its regulatory framework. This review has included consultations with industry stakeholders and examination of similarly-mandated regulatory authorities, and has lead to the development of a package of proposed regulatory changes. These proposed changes are consistent with the Cabinet Directive on Streamlining Regulations, and will promote a modern, effective, and efficient regulatory model.

While initiatives supporting the regulatory review will continue to be advanced, the CPMA will also continue to fulfill its responsibility to approve and supervise the conduct of pari-mutuel betting at racetracks and betting theatres across the country, and will provide services, including the Equine Drug Control Program, that promote the integrity of the horse racing industry.

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 a common, government-wide approach to the collection, management and reporting of financial and non-financial performance information. The department recognizes that the MRRS Policy reinforces the government's commitment to strengthen its expenditure management and accountability by providing a standard basis for reporting to Canadians and Parliament on the alignment of departmental resources, program activities and results. Through the MRRS, management and accountability, in accordance with the Management Accountability Framework, will be reinforced at AAFC. It should be noted that the department's MRRS will be evergreen; it will be updated as required throughout 2008-09 to reflect the new Growing Forward framework.

To respond to the Clerk of the Privy Council's priorities, as set out in the Public Service Renewal Action Plan, AAFC has established strategic objectives for HR that are aligned with the priorities of the plan. Through these objectives, AAFC continues to improve upon the integration of its vital HR planning with the departmental business planning process, augment competency based leadership development, implement learning and performance tools, and further invest in technology to enable the more complex people management regime we envision. New tools will improve the department's ability to monitor and report on its performance, and will help identify opportunities to enhance future business activities.

In short, AAFC constantly strives to make the best possible use of taxpayers' dollars. The Expenditure Management System (EMS) plays a key role in helping the department achieve this goal. The EMS requires the ongoing review of programs and spending to reduce expenditures and identify opportunities for reallocation to higher priority programs, and provides for parliamentary and public input into the Budget and expenditure planning process. It enhances accountability through a focus on performance and better public information, and it also fosters improved long-term strategic planning and the adjustment of programs and services to available resources through the implementation of departmental Business Plans.

Corporate Management

The corporate management function at AAFC will continue to help co-ordinate business planning and results-based management within the department. Integral to these planning and reporting functions is risk management. As part of risk management, the department will identify key internal and external risks facing the organization, capturing them in its Corporate Risk Profile. Planning and ongoing review by executives and managers helps strengthen the department's ability to anticipate, mitigate and deal with these risks.

The recently passed Emergency Management Act states that every Minister is to “identify the risks that are within or related to his or her area of responsibility - including those related to critical infrastructure - and to do the following in accordance with the policies, programs and other measures established by the Minister:

• prepare emergency management plans in respect of those risks;
• maintain, test and implement those plans; and
• conduct exercises and training in relation to those plans.

The department has delegated responsibility for supporting the Minister in fulfilling his functions under the Emergency Management Act to its Markets and Industry Services Branch. The department's Corporate Management Branch is now responsible for managing risks to AAFC's operations.

AAFC, with its portfolio partners, is reviewing and updating the National Disaster Assistance Framework with the aim of issuing a new Emergency Management Framework to help better manage and co-ordinate the sector-wide response to emergencies, as well as those emergencies occurring within AAFC sites. 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.

Business Continuity Planning continues to evolve within AAFC with all branches having completed a first round of plans. These plans will be finalized and exercised during the 2008-09 reporting period.

Citizen-focused Service

AAFC and its portfolio partners are committed to a client-focused approach to service delivery, and to achieving measurable improvements in response to client expectations. The department is guided by its Service Delivery Strategy, which aims to put AAFC, with its provincial and territorial partners, 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 excellence at AAFC. In 2007-08 a survey of producers was undertaken to determine the drivers of service quality based on the five government-wide service delivery themes: communication, minimizing burden, fair treatment, outcome and timeliness. This survey will assist AAFC in monitoring its performance, setting service delivery priorities and better understanding the service experience of producers while providing a view of the organization from the perspective of producers as well as offering a valuable insight with respect to the reputation and image of the organization through this same lens.

The department will undertake further client surveys to determine levels of satisfaction, service quality drivers and priorities for improvement. AAFC will continue with its implementation plans to have service standards for all Growing Forward programs and services in place within three years. Performance information will be closely tracked and measured in an ongoing, integrated fashion.

As part of an ongoing effort to ensure information, programs and services are easily accessible, AAFC will develop, along with its provincial and territorial partners, a common federal-provincial-territorial service excellence approach for all Growing Forward programs and services. This common approach will help provide clients with integrated, single-window access to these programs, regardless of the deliverer.

Portfolio collaboration

The six organizations within the Agriculture and Agri-Food Portfolio - AAFC, the Canadian Dairy Commission, the Canadian Food Inspection Agency, the Canadian Grain Commission, Farm Credit Canada and the National Farm Products Council - have different mandates, but together aim to make Canada's agriculture and agri-food sector stronger and more sustainable. Many issues facing the sector, including animal health, business risk management, food safety, the new Growing Forward policy framework, science and innovation, and World Trade Organization negotiations, are horizontal in nature and require input and co-ordination among many stakeholders.

In this environment, portfolio collaboration helps ensure coherent policy and program development and is instrumental in effectively managing challenges in the agriculture and agri-food sector. AAFC, together with its portfolio partners, will continue to take an integrated approach toward developing policy and addressing major issues that cross organizational responsibilities. For instance, AAFC and the other organizations in the portfolio will continue to work closely to ensure the effective implementation of the Growing Forward policy framework.

At the same time, AAFC will continue to foster good governance at all levels of the portfolio in striving to meet the government's commitments to accountability and sound management. In addition, through effective portfolio collaboration, AAFC is better equipped to present its plans and results to Parliament in a cohesive manner.

People Management

AAFC's People Framework is based on the principles of staffing and promotion, learning and development and an inclusive culture. The framework enables the department to deliver on the Public Service Renewal priorities of planning, recruitment, employee development and enabling infrastructure through the following strategic outcomes for people management: dynamic planning; effective and efficient resourcing; competency-based leadership and development; employee performance management for results; and a productive and inclusive environment.

AAFC will continue to leverage technology and the flexibilities afforded by the Public Service Modernization Act to enable more efficient staffing and give HR advisors more time to provide advice and service related to complex cases. The department's Fast Track Staffing system, a web-enabled portal for AAFC managers to submit staffing requests, has been identified as a best practice and has been applied within other federal departments as a result.

Initiatives for 2008-09 will be based on forward-looking assessments of needs and will include the expansion and addition of online staffing tools for managers, innovative recruitment activities including a student bridging database, continued development and updating of the online inventory of work descriptions and their matching with statements of merit criteria and competency profiles; and an increased use of pooled staffing.

The department will continue to introduce technological enhancements so that its HR infrastructure best meets PSMA requirements, supports the Corporate Administrative Shared Service's Early Adopter's initiative, and improves its capability to monitor progress through clearly defined business process documentation and accountability.

Continued integration of HR planning and business planning in 2008-09 will ensure the department has the capacity needed to meet business requirements, which will be important as the department makes the transition to Growing Forward.

Information Management and Technology

AAFC has developed a strategic framework for Information Management and Information Technology (IM/IT) that will serve as an umbrella for housing all departmental IM/IT strategies and their associated roadmaps. The framework, built against the backdrop of Government of Canada and departmental directions, as well as industry trends, has four strategic outcomes:

1. effective delivery of client centered programs, services and information;
2. a pervasive culture for leveraging, sharing, managing information with associated competencies;
3. effective support for enterprise management excellence; and
4. sound management of information and technology assets.

These four strategic outcomes will be used to deliver on the three lines of IM and IT business: infrastructure; application and information management with support from architecture; and policies and planning.

A key piece for the successful implementation of the Strategic framework will be a Business Model which will articulate how services, funding and governance for IM and IT will be managed within AAFC.

Parliamentary Committee Reports

On December 12, 2007, the House of Commons Standing Committee on Agriculture and Agri-Food tabled its Report on the Beef and Pork Sector Income Crisis. The report examines the causes behind the acute income crisis facing hog and cattle producers, and makes recommendations on how to address the crisis.

In preparing its report, the Committee met with several witnesses, including the Canadian Cattlemen's Association, the Canadian Meat Council, the Canadian Pork Council, Fédération des producteurs de bovins du Québec, Fédération des producteurs de porcs du Québec, and Maple Leaf Foods Inc.

The situation has implications for both short-term and transitional measures to alleviate the worst effects of the crisis and for longer-term measures, such as adjustments to ongoing business risk management programs, to improve the competitiveness of the industry in the long run. Recommendations by the Committee focus on measures that could help provide some much needed cash flow (in the short-term), and adjustments to current programming to ease the burden of current conditions (in the long-term).

Under the Standing Orders, a government response is required within 120 calendar days of the presentation of the report. A response is expected in April 2008.

The report is available at the following site:

http://cmte.parl.gc.ca/Content/HOC/committee/392/agri/reports/rp3194677/392_AGRI_Rpt01-e.html

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