Growing Forward 2
Policy Framework Overview
Purpose
• Overview of Growing Forward 2 (GF2) framework
• Outline of federal and cost-shared program directions under GF2
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Context for GF2
• Agriculture is a shared jurisdiction of federal, provincial and territorial
governments
• Federal/Provincial/Territorial (FPT) frameworks have guided the policy
directions of the sector since the first Agriculture Policy Framework
(2003–08)
• The Growing Forward agreement, implemented in 2008, expired
March 31, 2013
•
FPT governments have negotiated a new five-year framework
agreement, Growing Forward 2, which came into force on April 1,
2013
– New framework developed based on extensive stakeholder engagement
• Frameworks help align FPT policies and programming
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Key highlights of the GF2 framework
•
GF2 intent is to achieve a profitable, sustainable, competitive and innovative sector that
is market-responsive, adapts to changing circumstances and contributes to the wellbeing of Canadians
•
$3 billion investment over five years for green-box Strategic initiatives in priority areas
– $1 billion in federal-only programs
– $2 billion in cost-shared strategic initiatives ($1.2B federal; $0.8B PT), representing
a 50% increase compared to GF
•
Funding for research and piloting of new private-sector insurance products
•
Complete and effective suite of Business Risk Management (BRM) programs to protect
against severe market volatility and disasters
– Ensuring programs do not impede adaptation and innovation
4
GF2 Strategic Initiatives
• Three priorities:
– Innovation
– Competitiveness and Market Development
– Adaptability and Industry Capacity
• $2 billion in FPT cost-shared strategic initiatives delivered by PTs
– At least 25% of investments has been allocated to each priority areas: innovation
initiatives, and competitiveness and market development initiatives
– Provinces and territories design and deliver most cost-shared programs which have
been outlined in GF2 Bilateral Agreements
• $1 billion in national programming delivered by the federal government,
including:
– AgriInnovation
– AgriMarketing
– AgriCompetitiveness
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GF2 Cost-Shared Strategic Initiatives
• PTs have the flexibility to design and deliver GF2 programs that respond
to the specific needs of their sector, while aligning with GF2 objectives
– E.g., environmental initiatives and on-farm water infrastructure
• Programs are cost-shared between the federal (60%) and
provincial/territorial (40%) governments
• Initiatives and activities must meet the objectives of the GF2 priorities
• Respecting GF2 principles, certain activities are ineligible, such as:
– Income support programs
– Programs that do not provide a direct benefit to agriculture, agri-food and/or agribased products industry
– Domestic provincial or local branding initiatives or activities that promote and/or
advertise the products of one province or territory explicitly over those of another
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GF2 National Programming
AgriInnovation: Accelerate the pace of innovation – development and adoption
of new products, practices and/or processes ($698 million over five years)
•
Research Accelerating Innovation
– Funding is developing fundamental science knowledge to mitigate risks, improve
productivity and sustainability and for AAFC research for “far from adoption” scientific
research
•
Industry-led R&D and Knowledge Transfer
– Funding is targeted at not-for-profit and for-profit organizations, for example
universities, aimed at supporting industry-led research and transferring knowledge out
to the sector
– Move towards applied science and to support technology development.
•
Enabling Commercialization
– Accelerate the demonstration, commercialization and/or adoption of new products and
technologies and support industry-led commercialization activities
– Help reduce financial risk associated with commercialization projects and secure other
financing
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GF2 National Programming
AgriMarketing: Gaining access to markets, capitalizing on market opportunities
and maximizing market performance ($341 million over five years)
•
Breaking Down Trade Barriers
– Enhance Market Access Secretariat efforts to increase industry engagement, advocacy
for science-based international standards, and to resolve market access issues
•
Building Market Success
– Promote Canadian agriculture and food products (Brand Canada)
– Support Trade Commissioners to gather market intelligence for exporters
•
Market Development
– New program building and promoting industry capacity in domestic and export markets
•
Supporting Assurance Systems
– Industry-led Assurance Systems Development for food safety, biosecurity, traceability
– National Livestock Traceability Operations – enhanced FPT government coordination,
information sharing, and regulations for traceability
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GF2 National Programming
AgriCompetitiveness: Strengthening the competitive capacity of the sector and
of individual farms and firms ($114.5 million over five years)
•
Facilitating Sector Capacity
– Value Chain Round Tables, including cross-sectoral approaches and emerging
industries
•
Fostering Business Development
– Business Development National Initiatives
•
Facilitating and Supporting a Modern Regulatory Environment
– Facilitating Industry Adaptation to Regulatory Modernization
– Minor Use Pesticide Program with increased emphasis on international harmonization
and prevention of technology gap
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GF2 Business Risk Management
•
AgriStability: assists in cases of large margin declines caused by circumstances
such as low prices and rising input costs
– Reforms: 70% margin coverage, limited reference margins, and harmonized
compensation rates
•
AgriInvest: helps cover small margin declines
– Producers can contribute up to 400% of Allowable Net Sales (ANS) and receive a
matching government contribution of up to 1.0% of ANS to a maximum of $15,000
each year
•
AgriInsurance: offers protection for specified production losses caused by hail,
drought, flooding, disease and other natural hazards
– Will seek ways to incent private sector offerings, especially for livestock
•
AgriRecovery: a disaster relief framework which provides a coordinated process
for FPT governments to assess and respond to disasters
– The AgriRecovery Framework has been refined to better target assistance to focus on
extraordinary costs to recover from a disaster
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Summary
• Implementation of Growing Forward 2 began on April 1, 2013
• Bilateral negations with provincial and territorial governments
have concluded and provinces and territories have launched
cost-shared programs
• Within the department, the federal-only programs discussed
above have been launched
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Growing Forward 2:
Canada’s Agricultural Policy Framework
Strategic Initiatives
$3 billion
Business Risk Management
Demand-Driven Funding*
• AgriStability
• AgriInsurance
• AgriInvest
• AgriRecovery
What’s new in GF2:
Federal-Only
Programs
$1 billion
FPT Cost-Shared
Initiatives
$2 billion*
• AgriInnovation
• AgriCompetitiveness
• AgriMarketing
• PT-specific initiatives
• Delivered by PTs
• 60:40 (F:PT) costshared
What’s new in GF2:
What’s new in GF2:
• Greater focus on
innovation
• Streamlined
programs
• Greater PT flexiblity
• 50 percent increase in
cost-shared funding
over GF1
All figures are five-year totals
AgriStability:
• Reduce coverage from 85% to 70% of
producer’s reference margin
• Limit producer’s reference margin to
historical allowable expenses
• Harmonize compensation rates at 70%
of producer’s margin loss
AgriInvest:
• Government matching contributions
reduced from 1.5% of a producer’s
Allowable Net Sales (ANS) to 1% ANS
• Limits on account size effectively
removed
*Cost-shared 60:40 (F:PT)