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2017–18 Departmental Results Report - Details on transfer payment programs of $5 million or more

Agricultural Disaster Relief program / AgriRecovery (Statutory)

General information - Agricultural Disaster Relief program / AgriRecovery (Statutory)
Name of transfer payment program Agricultural Disaster Relief program / AgriRecovery (Statutory)
Start date April 1, 2013
End date March 31, 2023
Type of transfer payment Contribution
Type of appropriation Statutory authority (Farm Income Protection Act)
Fiscal year for terms and conditions 2012-13 (Terms and Conditions approved)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department's Program Alignment Architecture
  • 1.1 Business Risk Management
    • 1.1.3 AgriRecovery
Description

AgriRecovery is a disaster-relief framework that allows federal, provincial and territorial governments to work together on a case-by-case basis to assess natural disasters (for example, extreme weather, disease, pests, et cetera) affecting Canadian farmers and respond with targeted, disaster-specific programming when assistance is needed beyond existing programming (AgriStability, AgriInvest, AgriInsurance, Canadian Food Inspection Agency compensation, et cetera). The aim of AgriRecovery is to provide affected producers with assistance to help them take action to mitigate the impacts of the disaster and/or resume business operations as quickly as possible following a disaster event. The Agricultural Disaster Relief Program is the federal component of the AgriRecovery Framework.

The program links to the departmental strategic outcome of a competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk.

Federal AgriRecovery website

Results achieved

Two initiatives launched in the previous fiscal year 2016-17 have been completed. These are the 2016 Canada-Alberta Bovine Tuberculosis Assistance Initiative and the 2016 Canada-Saskatchewan Bovine Tuberculosis Assistance Initiative.

These two initiatives met and exceeded the required performance criteria by providing timely, targeted assistance to livestock producers impacted by Bovine Tuberculosis.

In 2017-18, governments implemented the 2017 Canada-British Columbia Wildfires Recovery Initiative. This initiative continues to deliver needed assistance to producers affected by wildfires, so performance data is not yet available.

Also in 2017-18, the 2017 Canada-Québec Hail Assistance Initiative was implemented to help producers impacted by severe hail events in 2017. The performance criteria have not yet been assessed as the final performance report has yet to be submitted.

Since 2013, the AgriRecovery framework has provided 1,301 payments, representing over $32 million in cost-shared assistance, to producers.

Comments on variances

AgriRecovery is a demand-driven program. The spending varies from year to year depending on the need for disaster response initiatives.

Actual spending was less than Planned spending due to a reduced requirement for program support. Only two initiatives were implemented in 2017-18, namely the 2017 Canada-British Columbia Wildfires Recovery Initiative and the 2017 Canada-Québec Hail Assistance Initiative.

Audits completed or planned No audit was completed in 2017-18. An audit of Sector Risk Programming – Business Risk Management is planned for completion by March 2021.
Evaluations completed or planned An evaluation of the Agricultural Disaster Relief Program was completed in 2017-18. An evaluation of AgriRecovery is planned for completion by March 2022.
Engagement of applicants and recipients

The process for AgriRecovery begins when one or more provincial/territorial government(s) requests an assessment of a disaster event in writing. Once the request has been made, a joint federal and provincial/territorial task team conducts an AgriRecovery assessment. As needed, the task team consults with affected producers, industry representatives and other department/agency representatives (for example, the Canadian Food Inspection Agency). The assessment looks at the impacts of the event on producers, the ability for them to recover quickly and the costs associated with those recovery activities as well as how existing programs will respond. 

Generic information on the AgriRecovery framework is available on Agriculture and Agri-Food Canada's website, while the specifics on the initiatives are usually available on provincial/territorial governments' websites.

Performance Information (dollars) - Agricultural Disaster Relief program / AgriRecovery (Statutory)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 96,568 6,923,281 118,513,335 15,135,072 15,135,072 (103,378,263)
Total program 96,568 6,923,281 118,513,335 15,135,072 15,135,072 (103,378,263)

Agricultural Greenhouse Gases program (Voted)

General information - Agricultural Greenhouse Gases program (Voted)
Name of transfer payment program Agricultural Greenhouse Gases program (Voted)
Start date September 1, 2010
End date Ongoing (Subject to Minister's renewal every five years)
Type of transfer payment Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2015-16 (Terms and conditions amended and continued)
Strategic Outcome An innovative and sustainable agriculture, agri-food and agri-based products sector
Link to the department's Program Alignment Architecture
  • 2.1 Science, Innovation, Adoption and Sustainability
  • 2.1.7 Agricultural Greenhouse Gases Program
Description The Agricultural Greenhouse Gases Program helps organizations, academic institutions and other levels of government enhance the understanding and accessibility of agricultural technologies and beneficial management practices that can be adopted by farmers to mitigate greenhouse gas emissions in Canada. Research under this program aims to increase the understanding of the chemical, physical and biological processes that lead to greenhouse gas emissions (into the atmosphere) and nutrient losses (into surface water and groundwater) from agricultural systems.
Results achieved

Initially, the program set a target to develop and/or demonstrate 12 new Beneficial Management Practices from 2016 to 2021. After a review of the 20 new projects that were approved during 2016-17, the target has been revised to 50.

To the end of 2017-18, the program has developed and demonstrated 20 Beneficial Management Practices. Based on the future work plans and activities, the number of new Beneficial Management Practices developed and demonstrated will rise over the few years and the program is on course to meet the revised target.

Comments on variances During the first year of the renewed program funding from the 2016-17 planned spending authority level was re-allocated internally between programs to provide funds in future years. This action was taken so that the available funding authorities would be better aligned to when core project activities occur, typically in the second, third and fourth years of the program, and with the growing season. As a result, actual program spending exceeded the 2017-18 Planned spending level but was also less than the 2017-18 Total authorities available for use.
Audits completed or planned No audit was completed in 2017-18.
Evaluations completed or planned No evaluation was completed in 2017-18. An evaluation is planned for completion by March 2020.
Engagement of applicants and recipients

Agriculture and Agri-Food Canada communication efforts include news conferences or news releases as well as partnership opportunities with Environment and Climate Change Canada and Global Affairs Canada to exploit international presence for Canada. In addition, field days and workshops are carried out under this initiative by recipients of Agricultural Greenhouse Gases Program funding.

In terms of program delivery and administration, there has been an increase in the number of site visits with Agriculture and Agri-Food Canada officials meeting with recipients both in the laboratory of a principal investigator and the sites where the Beneficial Management Practices are tested. The program administration is also working closely with recipient financial centres to ensure that funding efficiently flows to project activities.

Performance information (dollars) - Agricultural Greenhouse Gases program (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 3,008,614 1,857,891 5,382,000 5,835,245 5,771,446 389,446
Total program 3,008,614 1,857,891 5,382,000 5,835,245 5,771,446 389,446

AgriInsurance program (Statutory)

General Information - AgriInsurance program (Statutory)
Name of transfer payment program AgriInsurance program (Statutory)
Start date April 1, 2013
End date March 31, 2023 (AgriInsurance is statutory and ongoing; however, the previous policy and program authorities expired on March 31, 2018.)
Type of transfer payment Contribution
Type of appropriation Statutory authority (Farm Income Protection Act)
Fiscal year for terms and conditions 2017-18 (Terms and Conditions amended and continued)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department's Program Alignment Architecture
  • 1.1 Business Risk Management
  • 1.1.4 AgriInsurance
Description

AgriInsurance helps producers minimize the economic impacts of production losses caused by adverse weather, diseases and other specified perils. AgriInsurance is a program that uses premiums to fund liabilities. The premiums are cost-shared between the federal government, provincial governments and producers. The commodities covered vary by province and continue to expand.

The program links to the departmental strategic outcome of a competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk.

For more information, visit the following websites:

Results achieved

In partnership with the provinces and territories, Agriculture and Agri-Food Canada has put in place a set of performance indicators and targets for the suite of Business Risk Management programs. Officials use these performance indicators and targets to closely monitor and report on the performance of the Business Risk Management programs and ensure they are meeting their objectives.

Performance Indicators and Targets:

  • Program Eligibility: Value of agricultural products for which insurance coverage is offered as a percentage of the value of all agricultural products (excluding livestock) – target 85%. This indicator was met with an 87% eligibility rate (2015-16). The 2016-17 results are not finalized.
  • Program Participation: Value of insured production as a percentage of the total value of all agricultural products eligible for insurance (excluding forage, pasture and livestock production) – target 75%. Program participation was met with 75% participation for crops (2015-16) but the forage participation was under the 25% target with an indicator of 16.63% participation (2015-16). Participation in forage insurance is still a priority for Agriculture and Agri-Food Canada and several forage projects are underway that could evolve in new insurance products that would be appealing to producers. The 2016-17 results are not finalized.
  • Program Effectiveness: Percentage of producers participating in the program who feel that AgriInsurance is effective in mitigating financial impacts of production losses – target 70%. This indicator was met with 79% program effectiveness (2014-15). This information is collected once every framework and will be updated under the Canadian Agricultural Partnership framework.
  • Premiums collected over the long term match indemnity payments – 25 year moving average loss ratio – target between 0.95 and 1.05. The moving average loss ratio for 2014-15 is 85% due to favourable experiences in the program. Premiums have started decreasing gradually which will bring the loss ratio back to the desired level. The indicator for 2018-19 is not finalized.
Comments on variances The variance between the actual spending and the planned spending is 1%. The variance is the result of increased participation in the prairie provinces resulting in an additional 1.1 million of insured acres for 2017-18. The increase is the result of a low numbers of acres insured in 2016-17 due to unfavorable weather conditions.
Audits completed or planned No audit was completed in 2017-18.
Evaluations completed or planned No evaluation was completed in 2017-18. An evaluation is planned for completion by March 2022.
Engagement of applicants and recipients AgriInsurance is delivered provincially. Each province is responsible for marketing the program and the day-to-day communications with producer applicants and producer organizations. Generic information on the program is available on Agriculture and Agri-Food Canada's website, which has specific links to each provincial website.
Performance information (dollars) - AgriInsurance program (Statutory)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 604,148,826 701,496,004 640,800,000 651,704,357 651,704,357 10,904,357
Total program 604,148,826 701,496,004 640,800,000 651,704,357 651,704,357 10,904,357

AgriInvest program (Statutory)

General Information -AgriInvest program (Statutory)
Name of transfer payment program AgriInvest program (Statutory)
Start date April 1, 2013
End date March 31, 2023 (AgriInvest is statutory and ongoing; however, the previous policy and program authorities expired on March 31, 2018.)
Type of transfer payment Grant and Contribution
Type of appropriation Statutory authority (Farm Income Protection Act)
Fiscal year for terms and conditions 2017-18 (Terms and Conditions amended and continued)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department's Program Alignment Architecture
  • 1.1 Business Risk Management
  • 1.1.2 AgriInvest
Description

AgriInvest helps producers manage income declines, and provides support for investments to mitigate risks or improve market income. Producers' AgriInvest accounts build as they make annual deposits based on a percentage of their Allowable Net Sales and receive matching contributions from federal, and provincial or territorial governments. AgriInvest is cost-shared 60:40 by federal, and provincial or territorial governments.

The program links to the departmental strategic outcome of a competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk.

For more information, visit the following websites:

Results achieved

In partnership with the provinces and territories, Agriculture and Agri-Food Canada has put in place a set of performance indicators and targets for the suite of Business Risk Management programs. Officials use these performance indicators and targets to closely monitor and report on the performance of the Business Risk Management programs and ensure they are meeting their objectives.

The following results are based on the 2015 program year, the latest year for which application processing is complete and data is available:

  • 80% of producers participated in AgriInvest in 2015, above the target of 75% and up 5% compared to 2014;
  • In 2015, 45% of AgriInvest producers who received AgriStability payments also made withdrawals from their AgriInvest saving accounts, missing the target of 60% This result indicates that producers are not using their AgriInvest account balances to address income declines to the extent expected; and
  • 98% of complete applications were received and processed in 45 days or less, exceeding the target 80%.
Comments on variances

AgriInvest is demand-driven and the variance from year-to-year in grant and contribution expenditures is directly related to both participation and commodity prices. Producer deposits and government contributions are based on a percentage of income generated from the sale of commodities for a production period (Allowable Net Sales).

Actual spending was more than Planned spending due to greater participation and strong sector performance, resulting in higher Allowable Net Sales and increased government matching contributions.

Audits completed or planned No audit was completed in 2017-18. An audit of Sector Risk Programing – Business Risk Management is planned for completion by March 2021.
Evaluations completed or planned No evaluation was completed in 2017-18. An evaluation is planned for completion by March 2022.
Engagement of applicants and recipients The AgriInvest program is delivered by the federal government in all provinces except Quebec. In Quebec, AgriInvest is delivered provincially by La Financière agricole. Each delivery agent is responsible for the marketing of the program in their jurisdiction(s), as well as day-to-day communications with program applicants. Annual enrolment and participation requirements are communicated through various forums including advertisements in major farm newspapers, industry advisories, program websites, and reminder letters and via Twitter.
Performance information (dollars) - AgriInvest program (Statutory)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 143,010,095 152,279,055 126,200,000 147,578,690 147,578,690 21,378,690
Total contributions 17,915,115 24,986,173 17,500,000 20,036,000 20,036,000 2,536,000
Total program 160,925,210 177,265,228 143,700,000 167,614,690 167,614,690 23,914,690

AgriRisk Initiatives (Voted)

General Information - AgriRisk Initiatives (Voted)
Name of transfer payment program AgriRisk Initiatives (Voted)
Start date April 1, 2013
End date March 31, 2023 (previous end date - March 31, 2018)
Type of transfer payment Grant and Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2017-18 (Terms and Conditions amended and continued)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department's Program Alignment Architecture
  • 1.1 Business Risk Management
  • 1.1.5 AgriRisk Initiatives
Description

The AgriRisk Initiatives program provides financial and technical assistance to private-sector or industry-led projects to research, develop, implement and deliver new risk management tools including insurance-based products. The objective of the program is to increase producers' ability to address the risks they face by facilitating the development and adoption of agricultural risk management tools. Research and development projects receive federal-only funding for implementation and delivery projects are cost-shared with provinces or territories.

The program links to the departmental strategic outcome of a competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk.

For more information, visit:

AgriRisk Initiatives

Results achieved In 2017-18, the Department received 16 new Research and Development applications. The total number of applications approved over the AgriRisk Initiatives program in Growing Forward 2 was 50 Research and Development, 10 Administrative Capacity Building for a total of 60 projects.
Comments on variances Efforts in the year to promote the AgriRisk program through direct industry contacts and with provincial/territorial colleagues has resulted in an over 73% increase in actual spending over 2016-17 level, which included a number of new research and development projects as well as four additional Administrative Capacity Building projects. Actual spending was less than planned spending due to lower than originally anticipated intake/approval of applications.
Audits completed or planned

An audit for this program was completed in 2017–18. Audit recommendations were made with respect to the strengthening of processes and procedures. The AgriRisk Initiatives - Management response and action plan response was approved at the Deputy Minister level and all actions are expected to be in place in 2018-19.

An audit of Sector Risk Programing – Business Risk Management is planned for completion by March 2021.

Evaluations completed or planned

An evaluation of AgriRisk was completed in 2017-18.  Evaluation recommendations centered on improving awareness, increasing the use of subject matter experts and expediting the project approval process.  The AgriRisk Initiatives - Management response and action plan response was approved at the Deputy Minister level and all actions are expected to be in place in 2018-19.

An evaluation is planned for completion by March 2023.

Engagement of applicants and recipients Various means were undertaken to promote the program such as direct contact with industry members and producer organizations, engagement with the Department's regional offices as well as the holding a second AgriRisk Forum in 2017.
Performance information (dollars) – AgriRisk Initiatives (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 100,000 100,000 100,000 100,000 100,000 0
Total contributions 5,270,710 8,284,065 17,150,000 15,950,000 14,423,800 (2,726,200)
Total program 5,370,710 8,384,065 17,250,000 16,050,000 14,523,800 (2,726,200)

AgriStability program (Statutory)

General Information - AgriStability program (Statutory)
Name of transfer payment program AgriStability program (Statutory)
Start date April 1, 2013
End date March 31, 2023 (AgriStability is statutory and ongoing; however, the previous policy and program authorities expired on March 31, 2018.)
Type of transfer payment Grant and Contribution
Type of appropriation Statutory authority (Farm Income Protection Act)
Fiscal year for terms and conditions 2017-18 (Terms and Conditions amended and continued)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department's Program Alignment Architecture
  • 1.1 Business Risk Management
  • 1.1.1 AgriStability
Description

AgriStability provides support when producers experience large margin declines. A producer may be able to receive an AgriStability payment when their current year program margin falls below a percentage of their historical reference margin. AgriStability is cost-shared 60:40 by federal and provincial or territorial governments.

The program links to the departmental strategic outcome of a competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk.

For more information, visit the following websites:

Results achieved

In partnership with the provinces and territories, Agriculture and Agri-Food Canada has put in place a set of performance indicators and targets for the suite of Business Risk Management programs. Officials use these performance indicators and targets to closely monitor and report on the performance of the Business Risk Management programs and ensure they are meeting their objectives.

The following results are based on the 2015 program year, the latest year for which application processing is complete and data is available:

  • Participants in the program are responsible for producing 57% of the total farm market revenues for the industry, missing the target of 65%, but up 2% over 2014.
  • 34% of producers participated in the program, falling short of the target of 50%, and up 1% over 2014. These low participation results can be attributed to several factors, such as: a decline in the overall number of farms due to the long-term trend of farm consolidation; favourable market conditions experienced by many producers; and individual business decisions made by producers. However, responding to producer concerns with the program, governments have introduced changes to AgriStability under the Canadian Agricultural Partnership that will be effective in the 2018 Program Year. These changes aim to lower the administrative burden on producers enrolling in the program, and will provide improved coverage levels. 
  • 70% of producers triggering payments were returned to more than half (55%) of their historical reference margin, missing the target of 75%.  This result indicates that the program is assisting many producers during situations of income declines, but that some producers may have experienced severe margin declines during the year.
  • In 2015, 70% of applications were processed to issue the calculation of program benefits in 75 days or less, missing the target of 75%.  This result confirms that there continue to be challenges with the administrative complexity of many AgriStability applications.
Comments on variances

AgriStability is demand-driven, rather than being funded from a set allocation for each fiscal year. Although the administrative costs of the program remain relatively constant, the variance of year-to-year grant and contribution payments is directly related to participation and industry conditions.

Actual spending was lower than Planned spending due to less demand than forecast for previous years, which resulted in an adjustment that impacted the current year.

Audits completed or planned No audit was completed in 2017-18. An audit of Sector Risk Programing – Business Risk Management is planned for completion by March 2021.
Evaluations completed or planned No evaluation was completed in 2017-18. An evaluation is planned for completion by March 2023.
Engagement of applicants and recipients AgriStability is delivered by the federal government in Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador and Yukon while it is delivered provincially in British Columbia, Saskatchewan, Alberta, Ontario, Quebec, and Prince Edward Island. Each delivery agent is responsible for marketing of the program in their jurisdiction(s), as well as day-to-day communications with program applicants. Annual enrolment and participation requirements are communicated through various forums including advertisements in major farm newspapers, industry advisories, program websites, and reminder letters and via Twitter.
Performance information (dollars) - AgriStability program (Statutory)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants (1,770,468) 35,373,415 41,000,000 26,827,747 26,827,747 (14,172,253)
Total contributions 156,496,870 311,527,441 219,300,000 34,791,605 34,791,605 (184,508,395)
Total program 154,726,402 346,900,856 260,300,000 61,619,352 61,619,352 (198,680,648)

Canadian Agricultural Adaptation program (Voted)

General Information - Canadian Agricultural Adaptation program (Voted)
Name of transfer payment program Canadian Agricultural Adaptation program (Voted)
Start date May 28, 2009
End date Ongoing (Subject to Minister's renewal every five years)
Type of transfer payment Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2015-16 (Terms and conditions amended and continued)
Strategic Outcome An innovative and sustainable agriculture, agri-food and agri-based products sector
Link to the department's Program Alignment Architecture
  • 2.2 Industry Capacity
  • 2.2.6 Canadian Agricultural Adaptation Program
Description The Canadian Agricultural Adaptation Program supports the agricultural sector to adapt to new and emerging issues, opportunities and challenges in order to remain competitive. The program funds national or sector-wide projects to develop a new idea, product, niche, or market opportunity or respond to new and emerging issues.
Results achieved By the end of 2017-18, the program has helped the sector develop 25 tools and strategies to help it respond to changing circumstances and/or opportunities. As of this reporting, ten of the tools and strategies have been implemented by the sector.
Comments on variances

The Program has broad, flexible parameters intended to stimulate change and develop new/innovative approaches in the agriculture, agri-food and agri-based products sector; however, the program has not clearly articulated priority areas. This has made attracting good proposals difficult and it has resulted in a shortfall in program spending.

The transition from a largely regional-based program to one that only supports national or sector-wide issues has also generated a level of uncertainty that has impacted the application rate.

Program administration has been working with the sector to bridge potential gaps on issues that touch on elements of Canadian Agricultural Partnership programs but ultimately are not fully supported under the partnership.

Audits completed or planned No audit was completed in 2017-18.
Evaluations completed or planned No evaluation was completed in 2017-18. An evaluation is planned for completion by March 2019.
Engagement of applicants and recipients

Agriculture and Agri-Food Canada communication efforts generally include mail outs, news conferences and/or news releases. Program clients are also be engaged through email, site visits, web presence, videoconferences, teleconferences or other outreach and project assessment and monitoring.

Program administration has been working with various department branches to help with communications in order to reach potential eligible applicants that may not be aware of the program and the type of support that it can provide.

Performance information (dollars) – Canadian Agricultural Adaptation program (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 2,667,292 2,182,027 5,591,000 3,914,201 2,632,964 (2,958,036)
Total program 2,667,292 2,182,027 5,591,000 3,914,201  2,632,964 (2,958,036)

Contributions for Cost-Shared Strategic Initiatives programming in Adaptability and Industry Capacity under Growing Forward 2 (Voted)

General Information - Contributions for Cost-Shared Strategic Initiatives programming in Adaptability and Industry Capacity under Growing Forward 2 (Voted)
Name of transfer payment program Contributions for Cost-Shared Strategic Initiatives programming in Adaptability and Industry Capacity under Growing Forward 2 (Voted)
Start date April 1, 2013
End date March 31, 2018
Type of transfer payment Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2012-13 (Terms and Conditions approved)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk and An innovative and sustainable agriculture, agri-food and agri-based products sector
Link to the department's Program Alignment Architecture
  • 1.2 Market Access, Negotiations, Sector Competitiveness, and Assurance Systems
    • 1.2.5 Federal-Provincial-Territorial Cost-shared Market Development and Competitiveness
  • 2.1 Science, Innovation, Adoption and Sustainability
    • 2.1.6 Federal-Provincial-Territorial Cost-shared Environment
  • 2.2 Industry Capacity
    • 2.2.3 Federal-Provincial-Territorial Cost-shared Adaptability and Industry Capacity
Description

The federal-provincial-territorial cost-shared programs provide support for provincial and territorial activities aimed at building capacity within the Canadian agriculture, agri-food and agri-based products sector and its businesses to sustainably succeed in a market-driven and competitive world. These activities mainly focus on encouraging the use of sound business management practices and tools, while providing for enhanced participation by young or new entrants and clients in specific sub-sectors in transition; supporting the sector and its businesses to improve access to key infrastructure; and building leadership within the sector.

Each province and territory has the flexibility to design and implement programming which is tailored to meet diverse regional needs.

Anticipated provincial and territorial cost-shared activities include: providing advisory and assessment services on business management practices; and increasing irrigation and water infrastructure.

This Transfer Payment Program does not include repayable contributions.

Results achieved

Phase 1 of the Growing Forward 2 Client Impact Survey (completed in early 2016) looked at the percentage of clients accessing cost-shared funding who anticipated stable or increased income in the next five years. The survey indicated that 35% of respondents were optimistic that their net farm income would remain stable or increase in the next five years.

Phase 2 of the Survey (completed in early 2018) looked at the percentage of clients accessing cost-shared funding who experienced an increase in revenue over the past five years. The Survey indicated that 20% of respondents reported revenue growth over the past five years.

The Annual Performance Reports, submitted by Provinces/Territories, indicate that 35,794 acres were supported by infrastructure programming in the first four years of the framework (from 2013-14 to 2016-17). The data for 2017-18 will be available in 2018-19.

Comments on variances

As part of the Growing Forward 2 five-year Framework, Federal-Provincial-Territorial Cost-shared programming is designed and delivered by the provinces and territories. Provinces and territories report on and manage variances in spending on their individual programming. They are able to roll over unspent funding of up to 25% of planned spending into subsequent years, except for the last year of the Growing Forward 2 Framework. Five-year spending totals must equal 60:40 federal-provincial/territorial funding shares.

While provincial and territorial spending in the final year of Growing Forward 2 decreased, program uptake has varied across programs compared to original plans resulting in underspending in some areas and overspending in others while respecting the federal-provincial/territorial funding allocations.

Audits completed or planned One recipient audit was completed for 2017-18. Five recipient audits are planned for 2018-19.
Evaluations completed or planned Evaluation of Growing Forward 2 Cost-shared Programming Strategic Initiatives was completed in 2017-18.
Engagement of applicants and recipients Provinces and territories design and deliver cost-shared programming and thus identify the most appropriate tools to engage applicants and recipients. Methods may include websites, advertising, brochures, et cetera. Agriculture and Agri-Food Canada engaged recipients through Client Impact Surveys in 2016 and 2018; the surveys were conducted by a contractor.
Performance information (dollars) - Contributions for Cost-Shared Strategic Initiatives programming in Adaptability and Industry Capacity under Growing Forward 2 (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 28,955,199 27,163,776 44,830,856 28,880,456 28,703,415 (16,127,441)
Total program 28,955,199 27,163,776 44,830,856 28,880,456 28,703,415 (16,127,441)

Contributions for Cost-Shared Strategic Initiatives programming in Competitiveness and Market Development under Growing Forward 2 (Voted)

General Information - Contributions for Cost-Shared Strategic Initiatives programming in Competitiveness and Market Development under Growing Forward 2 (Voted)
Name of transfer payment program Contributions for Cost-Shared Strategic Initiatives programming in Competitiveness and Market Development under Growing Forward 2 (Voted)
Start date April 1, 2013
End date March 31, 2018
Type of transfer payment Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2012-13 (Terms and Conditions approved)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk and An innovative and sustainable agriculture, agri-food and agri-based products sector
Link to the department's Program Alignment Architecture
  • 1.2 Market Access, Negotiations, Sector Competitiveness, and Assurance Systems
    • 1.2.5 Federal-Provincial-Territorial Cost-shared Market Development and Competitiveness
  • 2.1 Science, Innovation, Adoption and Sustainability
    • 2.1.5 Federal-Provincial-Territorial Cost-shared Research, Adoption and Commercialization
    • 2.1.6 Federal-Provincial-Territorial Cost-shared Environment
  • 2.2 Industry Capacity
    • 2.2.3 Federal-Provincial-Territorial Cost-shared Adaptability and Industry Capacity
Description

The federal-provincial-territorial cost-shared programs provide support for provincial and territorial activities aimed at assisting the Canadian agriculture, agri-food and agri-based products sector in maintaining and creating market-based opportunities for individual farms and firms, and providing industry with the knowledge and tools to compete at home and abroad. Specific provincial or territorial programs support the sector in identifying new domestic and global opportunities and markets that enhance competitiveness and prosperity as well as support the sector in its endeavors to prevent and control risks to the animal or plant resource base, provide safe food and meet new market demands for assurance.

Each province and territory has the flexibility to design and implement programming which is tailored to meet diverse regional needs.

This Transfer Payment Program does not include repayable contributions.

Results achieved

The Annual Performance Reports, submitted by Provinces/Territories, indicated that 14,600 assurance systems/standards activities were undertaken in the first four years of the framework (from 2013-14 to 2016-17). The data for 2017-18 will be available in 2018-19.

Phase 2 of the Client Impact Survey (completed in 2018) indicated that 25% of respondents were able to capture new markets.

Comments on variances

As part of the Growing Forward 2 five-year Framework, Federal-Provincial-Territorial Cost-shared programming is designed and delivered by the provinces and territories. Provinces and territories report on and manage variances in spending on their individual programming. They are able to roll over unspent funding of up to 25% of planned spending into subsequent years, except for the last year of the Growing Forward 2 Framework. Five-year spending totals must equal 60:40 federal-provincial/territorial funding shares.

While provincial and territorial spending in the final year of Growing Forward 2 decreased, program uptake has varied across programs compared to original plans resulting in underspending in some areas and overspending in others while respecting the federal-provincial/territorial funding allocations.

Audits completed or planned One recipient audit was completed in 2017-18. Five recipient audits are planned for 2018-19.
Evaluations completed or planned Evaluation of Growing Forward 2 Cost-shared Programming Strategic Initiatives was completed in 2017-18.
Engagement of applicants and recipients Provinces and territories design and deliver cost-shared programming and thus identify the most appropriate tools to engage applicants and recipients. Methods may include websites, advertising, brochures, et cetera. Agriculture and Agri-Food Canada engaged recipients through Client Impact Survey in 2016 and 2018; the surveys were conducted by a contractor.
Performance information (dollars) - Contributions for Cost-Shared Strategic Initiatives programming in Competitiveness and Market Development under Growing Forward 2 (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 78,772,226 91,792,901 60,869,892 90,365,721 85,596,738 24,726,846
Total program 78,772,226 91,792,901 60,869,892 90,365,721 85,596,738 24,726,846

Contributions for Cost-Shared Strategic Initiatives programming in Innovation under Growing Forward 2 (Voted)

General Information - Contributions for Cost-Shared Strategic Initiatives programming in Innovation under Growing Forward 2 (Voted)
Name of transfer payment program Contributions for Cost-Shared Strategic Initiatives programming in Innovation under Growing Forward 2 (Voted)
Start date April 1, 2013
End date March 31, 2018
Type of transfer payment Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2012-13 (Terms and Conditions approved)
Strategic Outcome An innovative and sustainable agriculture, agri-food and agri-based products sector
Link to the department's Program Alignment Architecture
  • 2.1 Science, Innovation, Adoption and Sustainability
    • 2.1.5 Federal-Provincial-Territorial Cost-shared Research, Adoption and Commercialization
    • 2.1.6 Federal-Provincial-Territorial Cost-shared Environment
  • 2.2 Industry Capacity
    • 2.2.3 Federal-Provincial-Territorial Cost-shared Adaptability and Industry Capacity
Description

Federal-Provincial-Territorial Cost-shared Research, Adoption and Commercialization:

Provides funding for provincial and territorial activities aimed at accelerating the pace of innovation in the Canadian agriculture, agri-food and agri-based products sector. The programming supports research and development activities and facilitates demonstration and commercialization in order to enhance the productivity, competitiveness, economic growth and adaptability of the sector, and assists in capturing opportunities for the sector in domestic and global markets.

Federal-Provincial-Territorial Cost-shared Environment:

Provides support for provincial and territorial activities aimed at supporting the Canadian agriculture, agri-food and agri-based products sector and its businesses to assess and respond to priority environmental risks and manage the natural resource base sustainably. The programming is mainly designed to minimize and mitigate impacts and risks to the environment by maintaining or improving the quality of soil, water, air, and biodiversity; ensuring the long term health and sustainability of natural resources used for agricultural production, and supporting the long-term economic and environmental viability of the agriculture industry.

Each province and territory has the flexibility to design and implement programming which is tailored to meet diverse regional needs.

This Transfer Payment Program does not include repayable contributions.

Results achieved

Federal-Provincial-Territorial Cost-shared Research, Adoption and Commercialization:

The Annual Performance Reports, submitted by Provinces/Territories, indicate that 5,970 new products, technologies, practices, or processes were evaluated, assessed, and/or demonstrated in the first four years of the framework (from 2013-14 to 2016-17). The data for 2017–18 will be available in 2018–19.

Federal-Provincial-Territorial Cost-Shared Environment:

The Annual Performance Reports, submitted by Provinces/Territories, indicate that 18,138 Beneficial Management Practices were implemented in the first four years of the framework (from 2013-14 to 2016-17). The data for 2017–18 will be available in 2018–19.

Comments on variances

As part of the Growing Forward 2 five-year Framework, Federal-Provincial-Territorial Cost-shared programming is designed and delivered by the provinces and territories. Provinces and territories report on and manage variances in spending on their individual programming. They are able to roll over unspent funding of up to 25% of planned spending into subsequent years, except for the last year of the Growing Forward 2 Framework. Five-year spending totals must equal 60:40 federal-provincial/territorial funding shares.

While provincial and territorial spending in the final year of Growing Forward 2 decreased, program uptake has varied across programs compared to original plans resulting in underspending in some areas and overspending in others while respecting the federal-provincial/territorial funding allocations.

Audits completed or planned One recipient audit was completed in 2017-18. Five recipient audits are planned for 2018-19.
Evaluations completed or planned Evaluation of Growing Forward 2 Cost-shared Programming Strategic Initiatives was completed in 2017-18.
Engagement of applicants and recipients Provinces and territories design and deliver cost-shared programming and thus identify the most appropriate tools to engage applicants and recipients. Methods may include websites, advertising, brochures, et cetera. Agriculture and Agri-Food Canada engaged recipients through Client Impact Surveys in 2016 and 2018; the surveys were conducted by a contractor.
Performance information (dollars) - Contributions for Cost-Shared Strategic Initiatives programming in Innovation under Growing Forward 2 (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 110,033,641 100,523,555 100,179,252 95,859,536 88,100,021 (12,079,231)
Total program 110,033,641 100,523,555 100,179,252 95,859,536 88,100,021 (12,079,231)

Contribution payments for the AgriInnovation program under Growing Forward 2 - Federal Only and Federal Attributed portion (Voted)

General Information -Contribution payments for the AgriInnovation program under Growing Forward 2 - Federal Only and Federal Attributed portion (Voted)
Name of transfer payment program Contribution payments for the AgriInnovation program under Growing Forward 2 - Federal Only and Federal Attributed portion (Voted)
Start date April 1, 2013
End date March 31, 2018
Type of transfer payment Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2012-13 (Terms and Conditions approved)
Strategic Outcome An innovative and sustainable agriculture, agri-food and agri-based products sector
Link to the department's Program Alignment Architecture
  • 2.1 Science, Innovation, Adoption and Sustainability
    • 2.1.2 Research Accelerating Innovation
    • 2.1.3 Research, Development and Knowledge Transfer
    • 2.1.4 Enabling Commercialization and Adoption
Description

The objective of the AgriInnovation Program is to accelerate the pace of innovation by supporting research and development activities in agri-innovation and facilitating the demonstration, commercialization and/or adoption of innovative products, technologies, processes, practices and/or services in order to enhance economic growth, productivity, competitiveness, adaptability and sustainability of the Canadian agriculture, agri-food and agri-based products sector and to assist in capturing opportunities for the sector in domestic and international markets.

The AgriInnovation Program operates through three streams:

  1. Research Accelerating Innovation;
  2. Research, Development and Knowledge Transfer; and
  3. Enabling Commercialization and Adoption.

The AgriInnovation Program provides contributions on a repayable and non-repayable basis.

Stream A - Research Accelerating Innovation:

This sub-program is designed to address emerging science-based requirements of the Canadian agriculture, agri-food and agri-based products sector by generating and providing access to scientific knowledge that helps the industry to: identify and mitigate risks to agriculture and agri-food production; enhance the safety of the food system; sustainably increase its productivity to improve its bottom line through more efficient use of inputs; enhance the resilience of the sector to a changing climate; and to capture market opportunities. Objectives of this program include: conduct innovative research to understand key challenges and opportunities facing the sector; transform scientific knowledge into agricultural products, processes and practices that improve competitiveness; promote research to understand the key environmental sustainability challenges facing Canadian farmers; encourage the transformation of scientific knowledge into agricultural practices that improve the environmental sustainability and profitability of farming operations; support scientific measurement and analysis of the environmental sustainability performance of the sector that will facilitate competitiveness; and work with industry to target Agriculture and Agri-Food Canada efforts toward key business risks and opportunities. This particular stream does not contain any contribution funding.

Stream B - Research, Development and Knowledge Transfer:

The objective of this sub-program is to accelerate the pace of innovation in the sector by supporting industry-led research, development and knowledge creation and transfer activities of innovative agricultural products, technologies, practices, processes and services in the agriculture, agri-food and agri-based products sector to increase market opportunities, foster innovation, industry investment and leadership. This program provides non-repayable contributions to recipients and research support for Agriculture and Agri-Food Canada to conduct approved applied science activities in support of a project.

Stream C - Enabling Commercialization and Adoption:

The objective of the Enabling Commercialization and Adoption Stream under Growing Forward 2 is to accelerate the demonstration, commercialization and/or adoption of innovative agri-based products, technologies, processes or services to increase sector competitiveness. This program provides repayable contributions for industry-led agri-based projects aimed at facilitating the commercialization or adoption of agri-innovations. Eligible recipients are for-profit organizations.

Results achieved

Stream B - Research, Development and Knowledge Transfer:

In terms of the sector developing or advancing knowledge and technologies for industry uptake for commercialization or adoption, this was measured by the number of peer-reviewed scientific publications made in the sector from 2013 to 2018. Peer–reviewed scientific publications include research papers published in scientific journals, books, book chapters, review articles and conference proceedings, and other like publications.

The target for the duration of the program was 1,000 peer–reviewed scientific publications (an upward revision of the original target of 339).

The program ended on March 31, 2018 and produced 1,672 peer-reviewed scientific publications from 2013–14 to 2017–18 (this is an interim result as data continues to be collected at the time of reporting).

Stream B also worked to help the sector build additional capacity to develop knowledge and technologies, which was measured by the number of newly trained, highly qualified personnel in the sector from 2013 to 2018.

The target was 276 for the duration of the program.

From 2013–14 to 2017–18, 264 students worked on industry-led projects funded under the Stream and completed their Masters or PhD degrees in various science disciplines. This will contribute to ensuing that highly qualified personnel are well-placed in the sector to continue to innovate over time (this is an interim result as data continues to be collected at the time of reporting).

Stream C - Enabling Commercialization and Adoption:

Stream C, in part, set out to help the sector access government and private investment capital to support demonstration, commercialization and adoption of innovative technologies, processes, products and services. This objective was measured by the dollar value of private sector investments under the Enabling Commercialization and Adoption Stream of the AgriInnovation Program from 2013 to 2018.

The target for the duration of the program was $118.5 million.

The dollar value of private sector investment under Stream C was $118.5 million and successfully met the target.

The second indicator used to determine the results achieved was that the sector develops the capacity to commercialize products, technologies, processes or services as measured by the number of innovative products, technologies, processes or services supported by the program that enter the market.

The target was 54 for the duration of the program.

From 2013–14 to 2017–18, 20 innovative products, technologies, processes or services supported by the program entered the market (this is an interim result as data continues to be collected at the time of reporting). Due to the nature of the projects under this sub-program, performance reporting begins one year following project completion and continues for an additional five years. Accordingly, the results that will be reported for 2018–19 will reflect interim data as some projects will continue to report results up until 2023–24. It is expected that some projects will result in more than one product, technology, process or services to be commercialized, however a determination of whether or not the target of 54 has been met will not be available until 2023-24.

Comments on variances Actual spending was less than planned spending in 2017-18, which was primarily the result of some projects not using the level of funding that they initially forecasted.
Audits completed or planned No audit was completed in 2017-18.
Evaluations completed or planned

An evaluation of the AgriInnovation Program – Stream B: Research, Development and Knowledge Transfer was completed in 2017–18. The evaluation concluded that there is a continued need for this type of programming to develop innovations to address threats to the profitability and competitiveness of the agriculture and agri-food sector.

An evaluation of AgriInnovation Program, Stream C: Enabling Commercialization and Adoption was completed in 2017–18. The evaluation concluded that the program helps Canadian agriculture and agri-food companies respond to market opportunities and productivity challenges through support for innovation.

Engagement of applicants and recipients

Steam B and Stream C:

The Canadian Agricultural Partnership was developed in consultations with the applicants and recipients to improve the design of the new programs and promote the partnership.

Stream B - Research, Development and Knowledge Transfer:

In an effort to reduce the time to review program applications, which are complex, and to develop a funding recommendation, Agriculture and Agri-Food Canada has implemented a joint peer review process for the Clusters Component that takes place before applications are submitted. Improved collaboration between academia, government and the industry has allowed a more integrated and synergized approach to scientific research for the agriculture and agri-food sector. The new review process and its timelines have been piloted under the Canadian Agricultural Partnership program (AgriScience Clusters Component) that has replaced Stream B.

Building on Agriculture and Agri-Food Canada's strong relationships with well-established Science Cluster organizations, of which several have been in existence for over 10 years and have mature organizational structures and controls, the department worked with Stream B Science Cluster organizations to develop a more streamlined financial reporting mechanism, which provides more cash management flexibility, reduces claims reporting frequency, and eases administrative burden for cluster recipients under the Canadian Agricultural Partnership program (AgriScience Clusters Component).

Stream C - Enabling Commercialization and Adoption:

Stream C utilized several communication approaches to build awareness and understanding of the program, including:

  • Minister's announcements;
  • Agriculture and Agri-Food Website;
  • Stakeholder information sessions (companies, national and regional trade associations, academia and consultants); and
  • Collaboration with regional offices, provincial/territorial governments.

Program administration worked throughout the year to ensure effective program delivery through actions including:

  • Discussions with potential applicants regarding eligibility to the program and explanation of the application process;
  • Site visits;
  • Continued promotion through targeted participation in public and industry events; and
  • Ministerial announcements.
Performance information (dollars) - Contribution payments for the AgriInnovation program under Growing Forward 2 - Federal Only and Federal Attributed portion (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 62,908,011 61,656,052 60,455,000 59,978,554 57,494,019 (2,960,981)
Total program 62,908,011 61,656,052 60,455,000 59,978,554 57,494,019 (2,960,981)

Contribution payments for the AgriMarketing program under Growing Forward 2 - Federal Only and Federal Attributed portion (Voted)

General Information -Contribution payments for the AgriInnovation program under Growing Forward 2 - Federal Only and Federal Attributed portion (Voted)
Name of transfer payment program Contribution payments for the AgriMarketing program under Growing Forward 2 - Federal Only and Federal Attributed portion (Voted)
Start date April 1, 2013
End date March 31, 2018
Type of transfer payment Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2012-13 (Terms and Conditions approved)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department's Program Alignment Architecture
  • 1.2 Market Access, Negotiations, Sector Competitiveness, and Assurance Systems
    • 1.2.3 Market Development
    • 1.2.4 Assurance Systems
Description

Programming for the non-repayable contribution payments under the AgriMarketing program is comprised of the following streams:

Market Development

Supports the agricultural sector by providing resources through matching non-repayable contributions to ensure that industry has the capacity to take advantage of gains made in market access, as well as to seize new opportunities presented by consumer preferences and emerging food trends, in order to be competitive in domestic and export markets. Market Development supports Canada's agriculture and food industry to build and deliver on long-term international strategies, to gain and expand international recognition in key markets and enhance market opportunities for Canadian agriculture and food products. This ensures that Canada is well-positioned to succeed in key markets and respond to consumer demands and global competition.

Assurance Systems

The Canadian agriculture, agri-food and agri-based products sector is supported to prevent and control risks to the animal and plant resource base, provide safe food and meet evolving market requirements and consumer demands for these assurances. Federal programming under Growing Forward 2 supports national organizations in developing national assurance systems, standards and tools, which include food safety systems, biosecurity standards, traceability systems, animal and plant health surveillance systems, and market attribute-standards.

Results achieved

Market Development

A total of 1,906 cumulative market development and promotional products events in new markets were undertaken under Growing Forward 2. These activities helped maintaining industry's capacity to identify and seize market opportunities while also increasing industry's exposure in global markets, and informing international buyers about what Canada has to offer.

Assurance Systems

A total of 49 cumulative assurance systems and standards tools were completed under Growing Forward 2. These systems and standards tools enabled the industry to respond to consumer, buyer and market demands for assurance and thus enhanced its competiveness in domestic and international markets.

Expected Result: Implementation of assurance systems and standards by producers and agri-businesses.

Performance Indicator: Cumulative number of assurance systems/standards activities undertaken by producers and agri-businesses under Growing Forward 2 Federal-Provincial-Territorial Cost-shared Programming

Target: 13,200, the date to achieve this target is March 31, 2019 Result: 11,294 assurance systems/standards activities undertaken as of March 31, 2018.

Comments on variances

Market Development

Actual spending was more than planned spending due to an increase in program uptake but within available funding limits.

Assurance Systems

Actual spending was less than planned spending as program uptake was lower than anticipated.

Audits completed or planned No audit was completed in 2017-18.
Evaluations completed or planned An evaluation of AgriMarketing: Market Development was completed in 2017-18.
Engagement of applicants and recipients In general, applicants and recipients are engaged directly by the responsible program officers. During the development of the program as part of Growing Forward 2, no specific engagement was held, but rather recipients were engaged as part of the broader Growing Forward 2 national framework development process.
Performance information (dollars) - Contribution payments for the AgriMarketing program under Growing Forward 2 - Federal Only and Federal Attributed portion (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 28,867,797 34,250,294 35,500,000 40,443,173 36,531,651 1,031,651
Total program 28,867,797 34,250,294 35,500,000 40,443,173 36,531,651 1,031,651

Contributions to support Investments in the Dairy Sector (Voted)

General Information - Contributions to support Investments in the Dairy Sector (Voted)
Name of transfer payment program Contributions to support Investments in the Dairy Sector (Voted)
Start date April 1, 2017
End date March 31, 2022
Type of transfer payment Contribution
Type of appropriation Voted appropriation annually through Estimates
Fiscal year for terms and conditions 2017-18 (Terms and conditions approved)
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department's Program Alignment Architecture
  • 1.2 Market Access, Negotiations, Sector Competitiveness, and Assurance Systems
    • 1.2.8 Dairy Sector Investment Programs
Description The Dairy Programs consist of the Dairy Farm Investment Program and the Dairy Processing Investment Fund, which are designed to encourage investment by dairy farmers and dairy processors to improve productivity and competitiveness. The Dairy Farm Investment Program supports dairy farmers to modernize their operations and improve their productivity through activities such as the adoption of robotic milkers, automated feeding systems, herd management tools, or other equipment upgrades. The Dairy Processing Investment Fund supports dairy processors as they modernize their facilities and conduct near-market activities to introduce new and improved products that will compete with expected imports. The program supports access to technical expertise and the purchase of new equipment in order to expand processing capacity and diversify product lines to capture new market opportunities.
Results achieved

Dairy Farm Investment Program:

  • Performance Indicator: Number of approved projects
    • Target: 2,920 projects by March 31, 2022
    • Result: on target with 870 projects approved as of March 31, 2018.
  • Performance Indicator: Number of small scale investments (less than $60,000)
    • Target: 2,648 small scale investments by March 31, 2022
    • Result: on target with 764 small scale investment projects approved as of March 31, 2018.
  • Performance Indicator: Number of large scale investments ($60,000-250,000)
    • Target: 272 large scale investments by March 31, 2022.
    • Result: on target with 106 large scale investment projects approved as of March 31, 2018.

Dairy Processing Investment Fund:

The expected results of the Dairy Processing Investment Fund, which ends on March 31, 2021, are to help the dairy sector modernize their operations and to improve their productivity.

Program results will be measured through such items as production cost savings (for example, labour and improved efficiency), the adoption of technology, and the increase in volume of industrial or fluid milk and milk components used in production (when applicable).

Participating processors are required to report on the increase in production as well as the percentage increase in the volume of industrial or fluid milk and milk components used in production with the goal of increasing the volumes of these inputs where possible, which provides support indirectly to the broader agricultural sector.

The program is still recent and as a result reporting on progress has yet to fully take effect. The first year of the Dairy Processing Investment Fund approved six firms for funding.

Comments on variances

Dairy Processing Investment Fund:

The Dairy Processing Investment Fund's 2017-18 Total authorities available for use was set at $21.6 million. Of this amount, $11.6 million was spent in 2017-18, and the remaining $10 million was carried forward into 2018-19 as a result of the timing required to implement the program.

Dairy Farm Investment Program:

The Dairy Farm Investment Program's 2017-18 Total authorities available for use was originally set at $16 million. Due to the high volume of applications received, Dairy Farm Investment Program received authority to use up to an additional $4 million of funds from the final year of Growing Forward 2. The total commitment amount for 2017-18 was just over $19 million. To ensure that the program funding authority for Dairy Farm Investment Program is not exceeded, the repayment from Dairy Farm Investment Program will occur during the second year of the Canadian Agricultural Partnership (2019-20).

Audits completed or planned No audit was completed in 2017-18.
Evaluations completed or planned No evaluation was completed in 2017-18. An evaluation is planned for completion by March 2022.
Engagement of applicants and recipients

These programs were developed based on feedback from a range of dairy stakeholders and Canadians across Canada and complement the sector's ongoing investment efforts. 

The program undertook several communication approaches to build awareness and understanding of the program, including:

  • Minister's announcements;
  • Agriculture and Agri-Food Website;
  • Stakeholder information sessions (companies, national and regional associations); and
  • Collaboration with regional offices, provincial/territorial governments.

Program administration worked throughout the year to ensure effective program delivery through actions including:

  • Discussions with potential applicants regarding eligibility to the program and explanation of the application process;
  • Site visits;
  • Continued promotion through targeted participation in public and industry events; and
  • Ministerial announcements.
Performance information (dollars) - Contributions to support Investments in the Dairy Sector (Voted)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 40,861,000 30,817,846 30,817,846
Total program 0 0 0 40,861,000 30,817,846 30,817,846

Loan guarantees under the Canadian Agricultural Loans Act (Statutory)

General Information - Contributions to support Investments in the Dairy Sector (Voted)
Name of transfer payment program Loan guarantees under the Canadian Agricultural Loans Act (Statutory)
Start date June 18, 2009
End date Ongoing
Type of transfer payment Contribution
Type of appropriation Statutory authority (Canadian Agricultural Loans Act)
Fiscal year for terms and conditions Not applicable
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department's Program Alignment Architecture
  • 1.1 Business Risk Management
    • 1.1.7 Canadian Agricultural Loans Act
Description Under the Loan Guarantee Programs, the federal government provides financial guarantees to producers, marketing agencies and agricultural co-operatives. The Canadian Agricultural Loans Act program guarantees the repayment of loans made to producers and agricultural cooperatives by financial institutions. Producers use these loans to establish, improve, and develop their farms, while agricultural co-operatives use loans to process, distribute, or market the agricultural products.
Results achieved

In 2017-18, the Department, in partnership with lending institutions, continued to support the establishment, improvement and development of farms across Canada through the provision of Canadian Agricultural Loans Act loans.

Performance Indicators and Results:

  • Dollar value of registered loans awarded by lending institutions during the fiscal year – $91.6 million (target: $125 million);
  • Number of loans made to beginning farmers – 260 (target: 240);
  • Defaulted loans as a percentage of the value of total loans at the end of the year – 0.4% (target: less than 1%); and
  • Percentage of loans received from lenders within 15 business days are registered – 96.9% (target: 80%).
Comments on variances The value of Canadian Agricultural Loans Act loans issued in 2017-18 was down from loans issued in 2016-17 ($94.8 million) and under the target of $125 million. Program spending on loan losses was well under the Planned spending amount of $13.1 million. Program participation can be affected by factors such as interest rates, how well financial institutions understand the program, and the state of the industry. The Department is working to increase knowledge of the Canadian Agricultural Loans Act program, including among both farmers and financial institutions, with the aim of increasing participation in future years.
Audits completed or planned No audit was completed in 2017-18.
Evaluations completed or planned No evaluation was completed in 2017-18. An evaluation is planned for completion by March 2019.
Engagement of applicants and recipients

Canadian Agricultural Loans Act loans are issued on behalf of Agriculture and Agri-Food Canada by financial institutions, such as banks, credit unions, and caisses populaires. The program is designed to enable financial institutions to incorporate it into their normal lending practices, while providing the government guarantee on eligible loans to farmers and agricultural co-operatives. They register Canadian Agricultural Loans Act loans and submit the associated registration fee using the Canadian Agricultural Loans Act Online Loan Registration System.

Agriculture and Agri-Food Canada has been engaging financial institutions to increase their knowledge of the Canadian Agricultural Loans Act program and will be incorporating engagement of farmers and lenders in its evaluation plans.

Performance information (dollars) - Loan guarantees under the Canadian Agricultural Loans Act (Statutory)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 98,732 611,840 13,111,013 385,500 385,500 (12,725,513)
Total program 98,732 611,840 13,111,013 385,500 385,500 (12,725,513)

Payments in connection with the Agricultural Marketing Programs Act  - Advance Payments Program  (Statutory)

General Information - Payments in connection with the Agricultural Marketing Programs Act  - Advance Payments Program  (Statutory)
Name of transfer payment program Payments in connection with the Agricultural Marketing Programs Act - Advance Payments program (Statutory)
Start date April 25, 1997
End date Ongoing
Type of transfer payment Contribution
Type of appropriation Statutory authority (Agricultural Marketing Programs Act)
Fiscal year for terms and conditions Not applicable
Strategic Outcome A competitive and market-oriented agriculture, agri-food and agri-based products sector that proactively manages risk
Link to the department’s Program Alignment Architecture
  • 1.1 Business Risk Management
    • 1.1.6 Agricultural Marketing Programs Act
Description

The Advance Payments Program and the Price Pooling Program are active federal loan-guarantee programs legislated under the authority of the Agricultural Marketing Programs Act. Under the Advance Payments Program, the government guarantees the repayment of the cash advances made to crop and livestock producers by third-party administrators for a specified period of time, based on the value of their agricultural product. These cash advances improve producers' cash flow throughout the year, enabling them to meet their financial obligations and benefit from the best market conditions. Eligible producers can receive an Advance Payments Program advance of up to $400,000 at a preferential interest rate, with the government paying the interest on the first $100,000. Producers repay their advance plus interest, as their product is sold. Target clients are producers of agricultural products as defined under the Agricultural Marketing Programs Act.

The Price Pooling Program helps market agricultural products under cooperative plans by guaranteeing an average initial price for products sold by marketing agencies. This enables marketing agencies to secure financing and to issue initial delivery payments to their members. The government guarantee protects agencies against unanticipated declines in the market price of their products that exceed 35%. Target clients are marketing agencies of agricultural products defined under the Agricultural Marketing Programs Act.

Results achieved

In 2017-18, the Department, through the Advance Payments Program and in partnership with 39 third-party administrators, continued to provide eligible agricultural producers with access to timely, low cost loans to help them with their cash-flow needs over their production periods and provide them with additional flexibility to find the best markets for their agricultural products. 

Performance Indicators, and Results:

  • Number of producers receiving Advance Payments Program advances per production period – 20,745 (target: 28,000);
  • Dollar value of Advance Payments Program advances issued per production period – $2.230 billion (target: $2.125 billion);
  • Advance Payments Program defaults as a percentage of total Advance Payments Program advances taken per production period – 4.08% (target: ≤ 3.5%)*; and
  • Percentage of Advance Guarantee Agreements sent to producer organizations within eight weeks following receipt of a fully documented application – 80% (target: 80%).

During 2017-18, the Department continued to support the marketing of agricultural products through the Price Pooling Program with two agreements, representing a guarantee valued at $38.8 million.

Performance Indicators and Targets:

Guarantee price provided through the Price Pooling Program as a percentage of average market price – 64.11% (target: ≤ 65%).

Comments on variances

Participation in the Advance Payments program fluctuates from year-to-year based factors such as on demand, interest rates and the financial needs of producers. For 2017-18, 20,745 producers received Advance Payments program advances, which is consistent with uptake of approximately 21,000 per program year since 2014. It should be noted that the target of $2.125 billion in advances was surpassed in 2017-18.

The value of defaults was just over 4%, which is slightly over the target of 3.5 % of total advances for 2016-17*, but is consistent with the default rate over the past several years. The Department is analyzing program defaults and assessing options with the aim of further reducing default levels for future program years.

Spending under the program was approximately $29 million, which includes both interest costs paid by the Department and default amounts paid under the Guarantee. Costs are up slightly from previous years, but are significantly lower than the Planned spending of $65.9 million. Actual spending was lower than Planned spending due to factors such as current below average interest rates and uptake. Uptake of the Advance Payments Program by producers fluctuates from year-to-year based on demand, interest rates and the needs of producers. The Actual spending amount listed is net of amounts recovered from past defaulted advances.

Note: Producers have until the end of their Advance Payments Program Production Periods to fully repay their advances. Due to the length of these Production Periods, it is not yet possible to report on defaults for the 2017 program year. The default results reported above are for advances during the 2016 Program Year.  

Audits completed or planned No audit was completed in 2017-18.
Evaluations completed or planned No evaluation was completed in 2017-18. An evaluation is planned for completion by March 2022.
Engagement of applicants and recipients The Advance Payments Program is delivered by approximately 39 producer organizations across Canada. These organizations work closely with Agriculture and Agri-Food Canada to ensure all their members and potential participants in their area are aware of the program benefits and objectives. In addition, the program is promoted at different agriculture trade shows in across the country and at producer meetings. Through these activities, Agriculture and Agri-Food Canada stays connected with producers and ensures the program remains aligned with the sector’s needs.
Performance information (dollars) - Payments in connection with the Agricultural Marketing Programs Act - Advance Payments program (Statutory)
Type of transfer payment 2015-16 Actual spending 2016-17 Actual spending 2017-18 Planned spending 2017-18 Total authorities available for use 2017-18 Actual spending (authorities used) Variance (2017-18 actual minus 2017-18 planned)
Total grants 0 0 0 0 0 0
Total contributions 22,157,715 25,670,879 65,900,000 29,030,974 29,030,974 (36,869,026)
Total program 22,157,715 25,670,879 65,900,000 29,030,974 29,030,974 (36,869,026)
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