Treasury Board of Canada Secretariat
Symbol of the Government of Canada

ARCHIVED - Agriculture and Agri-Food Canada


Warning This page has been archived.

Archived Content

Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.

Section II - Analysis of Program Activities by Strategic Outcome

Strategic Outcome: Security of the Food System

Through the Security of the Food System strategic outcome, AAFC aims to ensure Canada's agriculture and agri-food sector can continue to produce, process and distribute safe and reliable food. To achieve this, the country needs a 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 food products, and sustaining and developing global markets by both seizing opportunities and expanding access in those markets.

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

Program Activity: Business Risk Management Program Activity: Business Risk Management


Enhancing producers' capacity to manage risk, and increasing the sector's viability and profitability
Expected Results Performance Indicator Target
increased producer capacity to manage business risks producers have the tools, knowledge and opportunity to manage business risk 70% of producers representing 80% of farm receipts participate in BRM programs by March 31, 2009
Planned Spending
2008-09 2009-10 2010-11
$2,080.3M 1,295 FTEs * $2,002.0M 1,295 FTEs * $1,976.5M 1,295 FTEs *
* Full Time Equivalents

Business risk management (BRM) programming is designed to help ensure producers have the capacity needed to mitigate risks by providing the necessary tools. By effectively managing risk, producers can focus on seeking out new opportunities to strengthen their ability to produce safe and innovative food and non-food products for consumers at home and around the world.

The 2008-09 fiscal year will bring changes to the structure and delivery of BRM programming in Canada. With the expiry of the Agricultural Policy Framework (APF) Agricultural Policy Framework (APF) in March 2008, and pursuant to extensive consultations with both government and industry stakeholders from across Canada, the federal government committed to replacing existing programs and specifically addressing disaster assistance outside of income-stabilization programming. Federal, provincial and territorial ministers of agriculture agreed in principle and, as such, the new Growing Forward Growing Forward policy framework will guide the remaining development of the replacement for the current APF. As part of this, ministers agreed to an open and seamless transition to new BRM programs that are more responsive, predictable and bankable for farmers.

In previous years producers had access to the Canadian Agricultural Income Stabilization (CAIS) program. It was designed to provide income stabilization and disaster protection under a single program, helping producers protect their farming operations from both small and large drops in income due to circumstances beyond their control. Since the CAIS program was first implemented in 2003, several events (i.e. BSE, droughts, floods, etc.) and more general circumstances in the sector (i.e. declining commodity prices) have led to criticisms of the program. The primary complaints have been that the program does not provide timely assistance, nor does it provide a predictable level of assistance.

Timeliness is an issue because CAIS payments are issued only after the producer files income tax for the program year. The complexity of the calculations used to determine program benefits limit the ability of producers to predict their program benefits. These issues conspire to severely limit producers' bankability of program benefits - the ability to use expected benefits as collateral for credit.

A new suite of BRM programs

To ensure BRM programming is simple, responsive, timely, predictable, and bankable, while also providing greater flexibility, a new suite of BRM programs will be available to producers in 2008-09. These programs, which will form an integral part of the new Growing Forward framework, include:

  • AgriStability AgriStability, an improved margin-based program providing support when a producer experiences larger farm income losses (i.e. declines of more than 15 per cent);
  • AgriInvest AgriInvest, a savings account for producers, supported by governments, that provides coverage for small income declines and replaces the top tier (15 per cent) of margin-based assistance;
  • AgriRecovery AgriRecovery, a disaster relief framework providing a co-ordinated process for federal, provincial and territorial governments to respond rapidly when natural disasters strike; and
  • AgriInsurance AgriInsurance , the suite of programs, including Production Insurance, Cover Crop Protection Program and Private Sector Risk Management Partnerships, designed to assist producers with the management of economic losses caused by specific natural perils (weather, pests, disease) as well as assistance for the development of tools that can be provided by the private sector to producers for the management of risk.

Because these programs are new for the 2008-09 fiscal year, they are discussed in greater detail below.

AgriStability

Starting with the 2007 program (tax) year, AgriStability will replace the coverage for income declines greater than 15 per cent under what was the CAIS program, while maintaining the margin-based approach for these larger income declines. Consultations with industry and governments in late-2006 and early-2007 indicated support for maintaining two fundamentals of such programming: the margin-based approach and whole-farm principle. This program will incorporate all the program design and service delivery enhancements to improve the predictability and responsiveness of margin-based programming.

Some key enhancements to the margin-based approach to income stabilization assistance include:

  • the replacement of the producer deposit requirement with a more affordable fee;
  • the inclusion of a better method of valuing inventories;
  • broader eligibility criteria for negative margin coverage;
  • a targeted advance mechanism for disaster situations, building on the interim payment feature; 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, common service standards, and clearer program statements and communications).
AgriInvest

Through AgriInvest, producers will be able to self-manage, through producer-government savings accounts, the first 15 per cent of their margin losses for a production year. Annual producer deposits will be matched by government deposits (cost-shared 60:40 by federal and provincial governments) into producers' accounts.

AgriInvest will address several of the shortcomings of previous margin-based stabilization programming under the CAIS program. In May 2007 the federal Auditor General expressed concern about the complexity and rigidity of CAIS and the timing of payments under the program. AgriInvest will help address these issues through a simpler and more predictable method of calculating program benefits, as well as by providing producers with timely access to accumulated balances in their accounts. Overall, AgriInvest will improve the responsiveness, predictability and bankability of the new BRM program suite by providing producers with a secure and accessible source of income assistance to address small drops in farm income. The program introduces a proactive element to the traditionally reactive BRM programming suite. Producers will have the flexibility to use the funds to address declines in income or make investments to reduce on-farm risks or increase farm revenues. AgriInvest will provide coverage starting with the 2007 program (tax) year.

To assist producers in the transition to the new suite of BRM programs, the Government of Canada is providing $600 million to kick-start AgriInvest accounts.

AgriRecovery

Federal, provincial and territorial governments have often provided assistance against the immediate impacts of a disaster through ad hoc disaster funding and programming. While these ad hoc programs have allowed a more tailored response to disasters, there is currently no clear model to quickly get these programs up and running when and where they're needed most. This can result in an uncoordinated and lengthy program development and implementation process, which can impede the ability of governments to provide quick and effective disaster support when it is needed most.

AgriRecovery will help focus the coordination effort by clearly defining what constitutes a natural disaster, and providing fast-tracked programs to quickly fund initiatives in response to natural disasters when they occur. This will speed up the program design and implementation period and allow governments to get disaster assistance payments out to producers when they are needed most. AgriRecovery will facilitate the process for governments to provide short-term, timely assistance to help producers re-establish their income and contain the long-term impacts after a disaster.

AgriInsurance

AgriInsurance will comprise existing programs including Production Insurance (PI), Private Sector Risk Management Partnerships (PSRMP) and the Cover Crop Protection Program (CCPP), and will be extended to livestock and additional commodities. In 2008-09:

  • PI will aim to reduce the financial impact on producers of production losses caused by uncontrollable natural perils, and work with the provinces will continue on the development of coverage options for livestock;
  • PSRMP will assist with development of new private sector risk management tools for agricultural producers; and
  • CCPP will provide financial assistance for producers affected by excess soil moisture in designated areas.
Financial Guarantee Programs Financial Guarantee Programs

In addition to the new suite of BRM programs, producers will continue to have access in 2008-09 to financial guarantee programs designed to help ensure producers have access to adequate operating cash and credit. These programs include the Advance Payments Program (APP), and the Farm Improvement and Marketing Cooperatives Loans Act (FIMCLA) program.

The Advance Payments Program is a financial loan guarantee program that gives producers access to credit through cash advances. The maximum advance available under the program is $400,000, of which up to $100,000 can be interest-free. The APP offers improved cash flow throughout the year and better opportunities for marketing their agricultural products.

The purpose of the Farm Improvement and Marketing Cooperatives Loans Act and Regulations is to increase the availability of loans for improvement and development of farms and the processing, distribution or marketing of farm products by co-operative associations. For individual applicants, including corporations, the maximum amount for a FIMCLA loan is $250,000; for co-operatives associations, the maximum is $3-million for the purpose of processing, distribution or marketing the products of farming on a co-operative basis. Each member or shareholder of the co-operative must be a farmer.

To ensure the FIMCLA program can continue to meet the needs of producers, legislative changes will have to be made to the Act. This is a key initiative for 2008-09; the success of the FIMCLA program will depend upon these legislative changes being made in a timely fashion. Further consultations and marketing activities will also have to take place to ensure the private lenders are aware of the program changes and requirements.

Program Activity: Food Safety and Food Quality 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
Expected Results Performance Indicators Target
protecting the health of Canadians by improved farming practices and processes that lead to increased food safety percentage of producers adopting improved food safety practices 65% by March 31, 2010
increased availability to consumers of high-quality, health-enhancing food products increase in dollars in sales/revenues for functional foods and nutraceuticals TBD
Planned Spending
2008-09 2009-10 2010-11
$97.2M 585 FTEs* $97.1M 585 FTEs* $97.1M 585 FTEs*
* Full Time Equivalents

While Canadian agriculture and agri-food products have earned the confidence of consumers and markets around the world, demands and expectations regarding the safety of the food continue to increase, and Canadians and other consumers are putting a greater focus on getting the maximum health benefits from their foods.

The Government of Canada works with provincial and territorial governments and portfolio and industry partners to uphold Canada's reputation for food safety, and ensure all consumers continue to get nutritious, high-quality and innovative food and food products. To achieve this, AAFC works through two key activities: Food Safety and Food Quality Programs, and Food Safety and Food Quality Science.

In 2008-09, the department will continue to work through the Canadian Food Safety and Quality Program (CFSQP) Canadian Food Safety and Quality Program (CFSQP), a three-part program that provides agriculture and agri-food sector with financial assistance to develop and implement food safety, traceability and quality process control systems. This financial assistance supports industry, on-farm and potentially post-farm national associations in the process of obtaining government recognition of their food safety systems.

As the department and all partners make the transition to the new Growing Forward framework, work in 2008-09 will focus on ensuring continued delivery of current programming to clients, and developing and rolling out new programs under Growing Forward.

From a science standpoint, AAFC will strive to achieve three main goals through its work in the area of food safety and food quality:

  • enhancing human health and wellness through food, nutrition and innovative products, including working to better understand the relationship between food and human health and wellness, and provide scientific evidence to support approval of new classes of functional foods;
  • enhancing the quality of food and the safety of the food system, including developing science strategies and tools to identify points of entry of hazards, their detection and monitoring as well as developing methods to control them at all stages - from production to consumption; and
  • enhancing the security and protection of the food supply, including developing and applying physical and biological systems models to predict the probable spread, behaviour and impact of threats to the security and protection of Canadian food production and distribution systems.

Government recognized agri-food safety control systems throughout the entire food chain will continue to grow throughout 2008-09, and new and improved technologies will begin to be developed to produce food with enhanced safety and quality attributes.

Through science, the number of health benefits from functional foods and nutraceuticals will continue to increase and be recognized and endorsed by official standards.

AAFC will also work towards the adoption of physical and biological system-based models that predict the probable spread, behaviour and impact of threats (intentional or not) as well as detection and mitigation tools, techniques and strategies.

Program Activity: Markets and International Program Activity: Markets and International


Expanding international opportunities for the Canadian agriculture and food sector
Expected Results Performance Indicators Target
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 increase in value of domestic shipments in the agri-food (including seafood) and beverage sectors $5 billion by March 31, 2013
access to export markets is maintained and expanded increase in number of markets where we export over $50 million 5% by March 31, 2013
number of markets maintained at an export level of $100 million or more 32 by March 31, 2013
Planned Spending
2008-09 2009-10 2010-11
$127.7M 671 FTEs* $127.5M 671 FTEs* $127.5M 671 FTEs*
* Full Time Equivalents

Agriculture and Agri-Food Canada helps advance Canada's agricultural trade interests, working to break down trade barriers, build market alliances, expand international markets opportunities, and help the agriculture and food sector seize new opportunities. Together with portfolio, government and industry partners, the department strives to improve, secure and maintain market access to international markets for agriculture and food products, develop markets by helping the sector take advantage of market opportunities in established and emerging markets, and promote and defend the interests of Canadian farmers and agri-food processors in various international trade negotiations and through trade litigation.

In 2008-09, AAFC will continue to work to ensure the sector is well-prepared to meet the opportunities and challenges resulting from global economic developments by negotiating trade agreements and arrangements that reflect the market access priorities of the agriculture sector. In particular, this means striving for a result at the World Trade Organization (WTO)World Trade Organization (WTO) that is in the best interests of all parts of the agriculture and agri-food sector. To complement its efforts at the WTO, the department will support the Government of Canada's commitment to the successful conclusion of bilateral free trade negotiations, especially with key markets in the Americas. Work will also continue towards re-opening and expanding markets for Canadian agri-food exports, including beef, cattle, pork, pulses, canola, wheat, and potatoes.

AAFC will continue to collaborate with other departments and agencies and work with foreign governments to influence technical trade policies, measures and international standards that support Canadian market access interests, as well as the federal government's policy and regulatory priorities. The department will also work to ensure the interpretation and implementation of existing or new international obligations or procedures do not unnecessarily or unfairly restrict Canadian exports. AAFC will continue to work to reduce non-tariff barriers, to ensure technical trade is not applied in a way that it becomes a disguised restriction on import trade.

In addition, the department will continue to strengthen industry competitiveness through the value-chain roundtable process by engaging stakeholders in the development of long-term, strategic plans to address gaps, leverage strengths and identify new market opportunities. The work of the value-chain roundtables will foster continued growth in industry and provincial support of the Canada Brand Canada Brand strategy. The brand will facilitate industry success in creating awareness of, and differentiating, Canadian agri-food capabilities and products internationally through the Canada Brand, the Brand Promise, public messaging, visuals and logos.

The Canadian Agriculture and Food International program will continue to work in partnership with and provide support to agriculture, food and seafood industry associations to increase exports and open new markets in the global economy. International Science cooperation will also enhance Canadian trade.

In addition, negotiations with provinces will be increased to sign new, renewed or transitional federal-provincial agreements.

Program Activity: National Farm Products Council Program Activity: National Farm Products Council


Overseeing, promoting and strengthening the activities of the Canadian Egg Marketing Agency, Canadian Turkey Marketing Agency, Chicken Farmers of Canada, Canadian Broiler Hatching Egg Marketing Agency, and monitoring the activities of the Canadian Beef Cattle Research, Market Development and Promotion Agency
Expected Results Performance Indicators Target
the supply management system for poultry and eggs works in the balanced interests of producers and consumers producers maintain their relative percentage share of the Canadian market for hatching eggs and chicks, chicken, turkey, and table eggs, contingent on current production shares 80% by March 31, 2009
Planned Spending
2008-09 2009-10 2010-11
$5.3M 30 FTEs* $5.3M 30 FTEs* $5.3M 30 FTEs*
* Full Time Equivalents

Established in 1972 through the Farm Products Agencies Act, the National Farm Products Council (NFPC) is a unique quasi-judicial agency reporting to Parliament through the Minister of Agriculture and Agri-Food.

The Farm Products gencies Act provides for the creation of national marketing agencies and promotion research agencies. The NFPC supervises these agencies by ensuring that they carry on their operations in accordance with the objectives set out in the Act.

These agencies are:

1) the Canadian Egg Marketing Agency Canadian Egg Marketing Agency
2) the Canadian Turkey Marketing Agency Canadian Turkey Marketing Agency
3) the Chicken Farmers of Canada Chicken Farmers of Canada
4) the Canadian Hatching Egg Producers Canadian Hatching Egg Producers and
5) the Canadian Beef Cattle Research Market Development and Promotion Agency Canadian Beef Cattle Research Market Development and Promotion Agency

The NFPC is headed by a Chairperson (Deputy Minister equivalent) and is composed of up to nine council members (GIC appointees), including the Chairperson. At least half of these members must be primary producers at the time of their appointment. Furthermore, 20 FTEs (full-time equivalents) support overall operations of the NFPC.

Working with the agencies it supervises, the NFPC promotes more effective marketing of farm products in interprovincial and export trade. It is also an active proponent of portfolio management by providing comprehensive advice to the Minister of Agriculture and Agri-Food and the government on all things relating to the establishment and operation of agencies under the Act. The NFPC also maintains relations with provincial governments.

The NFPC also administers the Agricultural Products Marketing Act (APMA) on behalf of Agriculture and Agri-Food Canada.

Specific plans for the NFPC in 2008-09 include:

  • Monitoring the activities of farm products marketing and promotion research agencies, ensuring that the national supply management and check-off system work in the balanced interest of all stakeholders;
  • Refining the exercise of the NFPC's regulatory and oversight mandate to facilitate Council operations and decision-making process as well as the timely management and resolution of complaints;
  • Enhancing the NFPC's interface with industry stakeholders and provincial governments to increase awareness of the Council's role, facilitate and improve coordination within the Canadian supply management system; and
  • Strengthening the NFPC's operational principles and practices through efficient and transparent financial and human resources management policies and practices, consistent with the Government of Canada's Management Accountability Framework in order to ensure a cohesive and productive organization, ready to meet future challenges.

Strategic Outcome: Health of the Environment

Farmers and the entire sector, governments, environmental organizations, and all Canadians share the goals of sustainable resource development to ensure both an economically vibrant agriculture and agri-food sector and a healthy environment and society. Through the Health of the Environment strategic outcome, AAFC works with all partners to help mitigate impacts on the environment from agriculture and position the sector to better deal with the risks environmental factors may pose to production, and achieve environmental sustainability.

Program Activity: Environment Environment


An agriculture and agri-food sector that uses environmental resources in a manner that ensures their sustainability for present and future generations
Expected Results Performance Indicators Target
reduced environmental risk from agriculture and agri-food sector, ensuring environmental sustainability of the sector in support of Canada's environmental policies improvement in the four agri-environmental indices: soil quality, water quality, air quality, and biodiversity (these are based on a combination of available agri-environmental indicators as published in the AAFC document titled Environmental Sustainability of Canadian Agriculture - Agri-Environmental Indicator Series) each of the four indices showing an improving trend by March 31, 2014
Planned Spending
2008-09 2009-10 2010-11
$389.2M 1,940 FTEs* $388.7M 1,940 FTEs* $387.1M 1,940 FTEs*
* Full Time Equivalents

AAFC has a range of activities and initiatives relating to air, water, soil, and biodiversity supporting the agriculture and agri-food sector that contribute to providing Canadian and international consumers with high-quality food and fibre that has been produced using environmentally sound crop and livestock management practices. These initiatives significantly contribute towards securing the sustainability of the Canadian agriculture and agri-food sector and the quality of environmental resources for present and future generations.

To this end, in 2008-09, AAFC will complete work on strategies to ensure the sustainability of agricultural water and land resources, and develop action plans for the effective implementation of these strategies. The department will also complete implementation of the National Land and Water Information Service (NLWIS) National Land and Water Information Service (NLWIS), and carry out plans for the Service's transition from a Major Crown Project to an ongoing service within AAFC.

Beneficial management practices (BMPs) - practices that encourage farmers to balance agricultural production with environmental protection - will play a key role in AAFC's plans for 2008-09. The department will continue to provide assistance to producers to help accelerate adoption of BMPs to address key environmental risk issues identified in producers' environmental farm plans.

Through its research and development functions, in alignment with the departmental Science and Innovation Strategy Science and Innovation Strategy, AAFC will also continue to investigate and develop innovative BMPs for use by the sector, and develop other approaches to help producers and other stakeholders manage environmental risks associated with current farming systems in Canada and meet public expectations related to sound use of the resource base. Through direct on-farm programming, stewardship by agricultural producers of soil, water, air and biodiversity will continue to improve. This will be achieved in part through an increased understanding, and adoption of, environmental BMPs by the agriculture and agri-food sector in the management of land, water air and biodiversity resources.

AAFC and federal, provincial and territorial partners also have a key role to play in managing the agriculture and agri-food sector's contribution to broad federal initiatives designed to decrease greenhouse gas emissions, help Canada adapt to climate change, and preserve water sources and water quality. These will be important activities during 2008-09 and beyond. The department will continue to contribute to federal water and climate change policy and program development in a way that supports sustainable growth of the sector while ensuring the environmental interests of Canadians are met.

Under Growing Forward in 2008-09 and beyond, AAFC will build on this work by assisting the sector in developing and contributing solutions to broad environmental challenges, while staying profitable and competitive.

The agriculture and agri-food sector faces challenges and opportunities. Increasing populations require increased production. At the same time, there is societal pressure to minimize environmental impacts from production. Opportunities must be assessed for market competitiveness and for environmental sustainability. There is also potential to explore market opportunities to transferring environmental benefits that are generated by agriculture to other sectors.

Strategic Outcome: Innovation for Growth

Increased global competition, consumer concerns about health and the environment and the continued introduction of innovative agricultural-based products and technologies into the marketplace present new opportunities and challenges for the sector.

Success in the marketplace today requires advanced technology and the latest knowledge to address the rapidly changing environment in which the sector competes. Canada has long been effective at generating new knowledge through investment in research, however there is significant opportunity for the country to be more effective in applying this knowledge to create new technologies, products and services. While there is a good foundation and capacity for innovation in Canada, there is a need to improve the transformation of this scientific and technical knowledge into commercial and other practical applications that enhance the profitability and competitiveness of the sector.

As farming operations become more knowledge-intensive, producers need to continually increase their skills and knowledge in areas ranging from managing financial and human resources to mastering innovative technologies, products and practices, so they can stay competitive. By acquiring new skills, adopting new technologies, maximizing efficiencies in operations, or changing product mixes, those who earn their livelihood from Canadian agriculture and agri-food will have a greater likelihood of profitability.

The sustainability and competitive position of Canada's agriculture and agri-food sector will depend on all stakeholders working together to develop new opportunities across the country.

Program Activity: Innovation and RenewalProgram Activity: Innovation and Renewal


Equipping the industry with new business and management skills, bioproducts, knowledge-based production systems and strategies to capture opportunities and manage change
Expected Results Performance Indicators Target
participating farmers and farm families meet their financial goals percentage of participating farmers and farm families who are meeting their financial goals 50% by March 31, 2014
agriculture and agri-food sector develops sector-based, innovative, market-focused strategies that utilize science to transform commodities into new value-added or bioproduct / biofuels opportunities for processors, producers and rural communities and new life-sciences products for consumers percentage increase in venture capital investment in agriculture-related enterprises (biotechnology and further food processing) 10% by March 31, 2014
Planned Spending
2008-09 2009-10 2010-11
$465.2M 2,013 FTEs* $416.3M 2,013 FTEs* $415.0M 2,013 FTEs*
* Full Time Equivalents

AAFC is one of the most significant contributors to agricultural science and technology research in Canada, and as such, is committed to ensuring its investments and efforts in science and innovation remain relevant to Canada's agriculture and agri-food sector and all Canadians. Providing science solutions to the new challenges and opportunities facing the sector and Canadians is driving a new era of adaptation and focus at the department.

AAFC will also continue to encourage innovation and competitiveness in the agriculture and agri-food sector by reducing the barriers for agricultural producers to participate in the emerging biofuels industry, and by supporting industry led innovation strategies across agricultural value chains. AAFC recognizes that it must take a leadership role to support industry-led innovation by strengthening the industry's innovation capacity across the agricultural value chains, through services for market and business development, and support to accelerate bringing new products, technologies and opportunities into the market place.

At the same time, as producers strive to meet the demands of this changing environment, strategic business planning and continuous education are becoming increasingly important. Providing producers with the tools and knowledge they need to make business decisions based on good knowledge and skills, helps to strengthen the performance of individual agricultural operations and the sector as a whole.

Over the coming year, through the Growing Forward policy framework, AAFC will explore new options with governments, academia, industry, and the community, and will develop an overall Science and Innovation action plan that will make the best possible use of scientific resources in support of the sector. In addition, AAFC will work with the sector to foster a climate for innovation that encourages investment to ensure long-term profitability and growth.

Innovation

Science and Innovation programming will continue to support research in those areas most important to Canadians such as health and wellness, security of the food system and health of the environment. Through its external and internal evaluation of research proposals, the department will continue to ensure excellence in conducting and managing science and research efforts, and alignment with the sector's and Canadians' priorities, as outlined in AAFC's Science and Innovation Strategy.

This external and internal evaluation process demonstrates the department's support for the Government of Canada's commitment to transparent decision-making, value for money and accountability for results in the delivery of its activities and services to Canadians.

The department will also focus on creating an innovation culture, developing new collaborative initiatives and creative approaches to transferring and sharing new knowledge and technology among stakeholders that will lead to new opportunities for processors, producers and rural communities.

The department will support the agriculture and agri-food sector's efforts throughout the innovation continuum and the stages of commercialization - from the idea stage to market entry and expansion - through programs like the Advancing Canadian Agriculture and Agri-Food (ACAAF) program and the Canadian Agriculture and Food International (CAFI) program.

AAFC will also encourage producer and sector participation in the emerging biofuels industry helping to diversify their economic base through the ecoAgriculture Biofuels Capital initiative, and programs including the multi-year Agricultural Bioproducts Innovation Program (ABIP), Agri-Opportunities, and the Biofuels Opportunities for Producers Initiative will aim to increase production of new food and agri-based products (such as biofuel) processes and services within Canada.

The department will work to encourage farmers to increasingly adopt innovative agri-based products and technologies for sustainable production, such as an increase of acres seed to AAFC varieties.

In 2008-09 AAFC will develop a Science and Innovation action plan that is aligned with AAFC's Growing Forward framework and addresses the key principles under the Government of Canada's Science and Technology Strategy. Central to the development of the action plan is a systems approach to innovation that emphasizes mechanisms and initiatives that seek to improve co-ordinated action among various players, including government industry and academia. The action plan will focus on three inter-connected objectives:

1) Developing strategic focus and taking collaborative action - Engaging the sector

AAFC will work towards establishing new ways to engage decision-makers from governments, academia and the agriculture and agri-food sector in anticipating emerging economic, environmental and social challenges and opportunities and their implications for sector competitiveness and profitability. The department will also work towards developing and implementing co-ordinated and collaborative actions to capture these opportunities and address related challenges.

The Science and Innovation chapter of the Agricultural Policy Framework adopted the concept of creating several industry-specific innovation value chain initiatives, such as Soy 2020 and Flax Canada 2015. Growing Forward will expand on this concept to create new government-university-industry collaborations in various areas of research and development.

2) Accelerating the flow of science and technology along the innovation continuum - Working with the sector

As new opportunities and challenges arise it will be essential for the sector to continually adapt to remain competitive. The federal Science and Technology Strategy, Mobilizing Science and Technology to Canada's Advantage, seeks to focus funding, build partnerships and leverage Canada's research base in strategic priority areas where the country can maximize its competitive advantage. It also recognizes the need to explore new models for conducting and delivering science and technology.

AAFC will work with the sector to explore new and innovative models for science delivery that will engage industry, governments and academia in developing and mobilizing the scientific community to conduct research on issues of importance to the sector.

This will include the continued implementation of the ABIP which aims to develop new economic opportunities for agriculture in the areas of bioproducts and bioprocesses such as biofuels, other forms of bioenergy, biochemicals, and biopharmaceuticals. It is anticipated the program will support up to 20 research networks, each focused on a promising field of the knowledge-based agricultural economy.

The insights and expertise of Canadian industry, when coupled with scientists' expertise, laboratories and technologies, can be a powerful driver for innovation. AAFC will work with industry partners to develop jointly funded collaborative research initiatives that will seek to assist Canadian entrepreneurs in developing unique agri-based business opportunities, which require further scientific analysis or technical development prior to market introduction.

3) Enhancing the sector's capacity to innovate - Supporting the sector

Through the Growing Forward framework, AAFC will develop programs and services designed to support the sector's need to better connect science providers with entrepreneurs and investors, and enhance access for producer organizations and small- and medium-sized enterprises to essential scientific capacity and expertise available throughout the country.

Renewal

Through Renewal programming, the department will work strategically with the sector to identify new skills and learning opportunities that will provide producers with the tools and abilities they need to be successful in the increasingly knowledge-intensive economy. Key priorities for 2008-09 will include providing farm families with the assistance needed to enhance their skills and knowledge and expand access to tools, advice and information to improve their business prospects and income.

AAFC will also implement a strategy for the transition of existing Renewal programming to the new Growing Forward policy.

Program Activity: Rural and Co-operatives Secretariats Rural and Co-operatives Secretariats


Helping rural Canada develop and maintain strong, adaptable and vibrant communities, and encouraging the economic growth and social development of Canadian society through co-operative enterprise
Expected Results Performance Indicators Target
innovative economic communities benefiting from economic opportunity number of new partnerships bringing together community, industry and stakeholders 6 by March 31, 2009
Planned Spending
2008-09 2009-10 2010-11
$29.5M 114 FTEs* $27.5M 114 FTEs* $27.5M 114 FTEs*
* Full Time Equivalents

The federal government recognizes the importance of focusing its efforts in support of rural Canadians. The Rural Secretariat Rural Secretariat, through the Canadian Rural Partnership (CRP) Canadian Rural Partnership (CRP), co-ordinates federal activities in rural Canada. The Secretariat co-ordinates a government-wide approach to rural citizen engagement in support of rural policy and program development and implementation.

In 2008-09, the Rural Secretariat will continue work with rural stakeholders and across government to build its knowledge base to develop policy options for future programs. The CRP will continue building and maintaining research and policy networks to ensure rural perspective and needs are taken into account by government. The Models Programs will extend the testing of some projects that show greater potential replicability. The Secretariat will also continue ensuring cross-government co-ordination, focusing on communications with rural communities and ensuring awareness of government initiatives in rural Canada, as well as increased sensitivity to the needs and challenges of rural communities and their potential contribution to greater competitiveness and sustainability of agriculture and other natural resource-based sectors.

The federal government also recognizes the contribution of co-operatives as a tool that complements other business models to provide benefits to Canadians. Over the last 20 years, the Co-operatives Secretariat Co-operatives Secretariat has been working across government to promote a better understanding of the co-operative model of enterprise and to ensure policies and programs are inclusive of co-operatives.

In 2008-09, the Co-operatives Secretariat, through the Co-operative Development Initiative Co-operative Development Initiative, will continue to work with the co-operatives sector and other stakeholders to build co-operative development capacity and capture new economic opportunities. The Secretariat will continue building its knowledge base from innovative co-operative projects and will work with stakeholders to develop a strategic research agenda. It will continue collecting and providing critical information on co-operatives in Canada.

Program Activity: Canadian Pari-Mutuel Agency Canadian Pari-Mutuel Agency


Enhancing CPMA's capacity to manage risk in pari-mutuel betting, thereby helping to protect the betting public against fraudulent activities
Expected Results Performance Indicators Target
pari-mutuel betting is conducted in a way that is fair to the Canadian betting public measure of the compliance with regulations in pari-mutuel betting of Canadian-hosted pools audited by CPMA officers number of compliant Canadian-hosted pools per number of Canadian-hosted pools audited) 95% by March 31, 2009
measure of the compliance with regulations of betting theatres in Canada (number of compliant betting theatres per number of betting theatres inspected) 95% by March 31, 2009
Planned Spending
2008-09 2009-10 2010-11
$0.0M 57 FTEs* $(0.5)M 53 FTEs* $(0.6)M 52 FTEs*
* Full Time Equivalents

Section 204 of the Criminal Code of Canada designates the Minister of Agriculture and Agri-Food as responsible for the policy and regulatory functions pertaining to pari-mutuel wagering on horse races. This is conducted through the Canadian Pari-Mutuel Agency - a special operating agency within AAFC.

In 2008-09, the agency will regulate and supervise pari-mutuel betting on horse racing at racetracks across Canada, thereby ensuring that pari-mutuel betting is conducted in a way that is fair to the betting public. This will include overseeing the operation of pari-mutuel betting systems at racetracks, collecting and analyzing urine and blood samples from horses that compete in races, conducting research that advances the federal government's role in controlling the unlawful use drugs in horse racing, and inspecting betting theatres licensed by the CPMA.

The CPMA will also continue activities supporting a comprehensive review of the regulatory architecture by which pari-mutuel betting is governed, and will conclude a package of regulatory amendments that will help deliver a modern, efficient and effective regulatory model for pari-mutuel betting.

Costs associated with the activities of the CPMA are recovered through a levy on every dollar bet on horse races in Canada. The levy is currently set at eight-tenths of a cent of every dollar bet. This levy constitutes the financial resource base that is the CPMA's Revolving Fund.