A Federal-Provincial-Territorial Initiative
Putting Canada First
Agricultural Policy For the 21st Century
A Federal-Provincial-Territorial Initiative
Putting Canada First
Agricultural Policy for the 21st Century
The Agricultural Policy Framework
contains five key elements
Key elements of the Agricultural Policy
Framework:
• Environment
• Food Safety and Food Quality
• Science and Innovation
• Renewal
• Business Risk Management
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Environment
Environment
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Environment
Products produced in an environmentally
sound manner translate into benefits
to producers and consumers
In 5 years, we will have:
•
National standards for farm environmental
certification
•
New tools to support environmentally sound
production
• Environmental farm planning
• Producers receive recognition for their
environmental investments
• Consumer access to quality food produced
according to the highest environmental
performance standards
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Environment
Program elements
Programs under the APF will achieve the following:
On-Farm
Action
Knowledge
&
Information
Performance
Measurement
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Food Safety and Food Quality
Food Safety and
Food Quality
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Food Safety and Food Quality
Program elements
• Facilitating industry adoption of Hazard
Analysis Critical Control Point (HACCP)based food safety systems, both on-farm
and beyond
• Food quality — assisting in the
development
of quality process control systems
• Traceability systems which allow products
to be traced backwards and forwards
through the agri-food continuum
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Food Safety and Food Quality
Supporting activities
• Research to address knowledge gaps
• Enhancing collaboration among federal
stakeholders
• Government recognition of on-farm food
safety programs
• Government recognition and certification of
food quality systems to improve market
access
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Renewal
Renewal
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Renewal
What is Renewal?
Renewal is about providing farmers with:
• Assistance to develop the skills and knowledge
which will help them continue to be successful
•
Access to advice to help increase profitability
through on- or off-farm opportunities
•
Information on opportunities to help farmers
improve family income and/or make informed
choices about sources of income
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Renewal
Proposed programming
will focus on five key areas
• Canadian Farm Business Advisory Services
– a network of advisory services that provide
useful information for making business-related
decisions
• Support for Skills Assessment and Training
– assistance for skills development and training to
help farmers make choices about the future and
enable them to pursue opportunities on and offfarm
• Capturing Opportunities
– improve profitability by increasing awareness of
innovations in science and technology and how11
to implement them
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Renewal
Proposed programming will focus
on five key areas (Continued)
•
Awareness
– To provide information that helps farmers make
decisions about their business operation and to
establish and build awareness for renewal initiatives
> Benchmark CD Rom and Web site: www.agr.gc.ca/compare
> Agricultural Services Web site:
www.agr.gc.ca/ren/serv/supp_e.cfm
•
Access to Capital
– To increase private sector investment and improve
farmers’ profitability of obtaining debt and/or equity
financing
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Science and Innovation
Science and Innovation
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Science and Innovation
Promoting science, research and
technology transfers
•
Realigning public science resources
– realigning and increasing science investments
sourced from outside the agriculture sector
– realigning AAFC research resources already
undertaken in support of APF priorities
• Coordinating science and innovation efforts
– taking the results of knowledge from the lab to
the market place and into use
•
Creating a climate for innovation
– ensuring that agriculture’s innovation needs are
built into the government’s innovation policies
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International
International
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International
The new international strategy
•
Gaining recognition and building markets
–
•
Improving market access
–
•
market research; branding; technical marketing assistance;
emerging market strategies; trade specialists
trade negotiations; strategic alliances; advocacy; and
consultations
Overcoming technical barriers
–
influence trade policy and rules; alliances; early warning;
and market access protocols
• Enhancing international development
–
research and analysis; strategic program objectives; and
market development
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International
Implementing the new strategy
•
2003-04
– Value-chain roundtables
– Development of marketing strategies
– Transition from AFTP to the new international
program
• 2004-05
– Full implementation
– New funding structure
– Adapt to changing market priorities
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Business Risk Management
Business Risk Management
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Business Risk Management
New program design: CAIS
•
Integrated stabilization and disaster mitigation
program, with larger government contributions
for disasters
•
Whole farm approach
•
Government funds would be accessed when a
need is established
• Coverage based on a “production margin”,
which is larger than the pervious gross margin
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Business Risk Management
How CAIS will work
•
Integrated Trigger for Stabilization and Disaster
– A producer would receive a payment when their
current margin falls below their reference margin
– Funds will be accessed in a ratio determined by
the degree of margin decline
– The more severe the loss, the greater
government financial participation
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Business Risk Management
Costs will be shared, but borne
progressively more by governments
producer governments
50%
STABILIZATION TIERS
Producer funds cover larger share of loss
30%
100%
50%
70%
85%
70%
DISASTER TIER
Government funds cover
larger share of loss
20%
80%
0%
NEGATIVE MARGINS
Could be partly provided through
Production Insurance
or Private Risk Management Tools
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Business Risk Management
Producers would be able to select their
coverage level, up to their entire margin
• Depending on their own
situation, the producer
would request a
specific level of
coverage
• To access the desired
level of protection, the
producer would place
on account the required
share of funds
producer governments
100%
Stabilization Tiers 85%
70%
Disaster Tier
0%
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Business Risk Management
For affordability, farmers could initially
obtain basic coverage with only 1/3 down
•
Producers could initially
select the minimum
protection option with 1/3 of
their needed contribution on
account
•
By the third year, they would
need to increase the amount
on account to the minimum
level
•
This process could be reset
after a major downturn, to
ensure time to rebuild the
producer’s account
producer government
100%
85%
70%
0%
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Business Risk Management
The new approach has many advantages
compared to the previous program
Previously…
Under CAIS
•
more complex: different
programs, criteria
One program for
stabilization, disaster
•
producers need to build
accounts over time
1/3 down gives protection
and can be carried over
•
After a major downturn,
rebuild funds over time
Can rebuild protection
immediately
•
Designed to meet WTO
criteria
Designed to meet WTO
criteria
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Business Risk Management
Production Insurance
• Governments are committed to expanding options
available to more commodities
•
Often this will involve building on the best of what is
already available across Canada, for example:
– products based on satellite imagery, for example to estimate
the yield of forage and pasture crops
– insurance that is tied to the average rainfall in a particular
area
– crop value insurance that can compensate producers of
perishable crops with multiple harvest dates
•
Introduction of a whole farm option
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Conclusion
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Progress to date and next steps
• Negotiations on programming and
implementation details are ongoing
• Programs will be implemented as they
are finalized through to 2008
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A Federal-Provincial-Territorial Initiative
Putting Canada First
Agricultural Policy For the 21st Century
A Federal-Provincial-Territorial Initiative
www.agr.gc.ca/puttingcanadafirst
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