2018-2019 Departmental Results Report - Details on transfer payment programs of $5 million or more

AgriRecovery is a disaster relief framework that allows governments to work efficiently together to assess the impacts of natural disasters on Canadian producers and respond when needed with targeted, disaster-specific initiatives. Initiatives developed under the program are intended to help producers beyond the support available through existing programming to cover the extraordinary costs necessary to recover from a disaster event and resume business operations as quickly as possible.

Federal AgriRecovery website

The 2017 Canada-Quebec Hail Assistance, which was implemented in 2017–18, was completed in 2018–19. This initiative met and exceeded the required performance criteria by providing timely, targeted assistance to assist producers to recover from hail storms that occurred in Quebec in the summer of 2017.

Also in 2018–19, governments continued the delivery of the 2017 Canada–British Columbia Wildfires Recovery Initiative. This initiative continues to provide assistance to producers affected by wildfires in British Columbia during the 2017 wildfire season.

In 2018–19, governments implemented the 2018 Canada–British Columbia Wildfires Recovery Initiative. Performance data is not yet available for this initiative, which is providing assistance to producers affected by the 2018 wildfires.

Since 2013, the AgriRecovery framework has provided over 1,320 payments, representing over $35.9 million in cost-shared assistance, to producers.

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.

Agriculture and Agri-Food Canada communication efforts include news conferences or news releases. 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.

The AgriInnovate program accelerates the commercialization and adoption of innovative products and processes in the agricultural sector to increase sector competitiveness and sustainability. The program is intended to address both the financing gap present between moving agricultural, agri-food and agri-based research to commercialization, and to assist industry in mitigating the inherent risk in scaling-up products and processes.

The program provides repayable contributions to recipients.

• 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.

AgriInsurance provides Canadian producers with insurance coverage to reduce the economic impacts of production losses caused by adverse weather, crop diseases and other specified perils. AgriInsurance is a program that uses premiums to fund liabilities. Premiums are shared between governments and producers to ensure affordable coverage to producers, while administration costs are covered solely by governments. The commodities covered vary by province and continue to expand to cover new agricultural products.

For more information, visit the following websites:

• Federal AgriInsurance
• AgriInsurance in British Columbia
• AgriInsurance in Alberta
• AgriInsurance in Saskatchewan
• AgriInsurance in Manitoba
• AgriInsurance in Ontario
• AgriInsurance in Québec
• AgriInsurance in New Brunswick
• AgriInsurance in Newfoundland and Labrador
• AgriInsurance in Nova Scotia
• AgriInsurance in Prince Edward Island

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:

• Appropriate self-sustainable production insurance programs: Premiums collected over the long-term match indemnity payments using a 25 year moving average loss ratio. The target is 0.95 to 1.05 and the 2016–17 ratio was 86%.
• Program Effectiveness: Percentage of producers participating in the program who feel that AgriInsurance is effective in mitigating financial impacts of production losses. The target is 70% and this indicator was met with a result of 79% in 2014. This information is collected once every framework and will be updated under the Canadian Agricultural Partnership framework.
• 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 88% eligibility rate in 2016–17. The 2017–18 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 estimated at 73.2 % for crops in 2016–17 and the forage participation was under the 20% target at 18% participation in 2016–17.

AgriInvest encourages Canadian producers to set money aside which they can draw upon for any reason including to recover from income declines or to make investments to reduce on-farm risks. Under the program, governments provide matching contributions to producers who make annual deposits to an AgriInvest savings account.

For more information, visit the following websites:

• Federal AgriInvest (except Québec)
  AgriInvest in Québec (La Financière agricole du Québec)

In partnership with 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 2016 program year, the latest year for which application processing is complete and data is available:

• 78% of producers participated in AgriInvest in 2016, above the target of 75%, and a slight decrease of 2.5% compared to 2015;
• In 2016, 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
• 99% of applications received were processed in 45 days or less, surpassing the target of 80%.

The AgriScience program accelerates the pace of innovation in the sector by supporting industry-led research and development to increase market opportunities in the agriculture, agri-food and agri-based products sector.

The program is delivered through two types of initiatives: the AgriScience – Clusters Component (Clusters) and the AgriScience – Projects Component (Projects).

Clusters are national in scope and bring together scientific expertise from industry, academia and government to collaborate to address multiple industry priorities of a specific commodity (such as wheat, beef, et cetera) or cross-cutting issues (for example, bioproducts, food processing).

Projects may be individually led research projects or a small group of projects that are national, regional or local in scope.

With the launch of the Canadian Agricultural Partnership in 2018–19, substantial engagement with applicants and recipients took place to promote the program and provide guidance regarding program parameters.

These engagements included a meeting with all the cluster recipients under the program, site visits undertaken by program officials, attendance and presentations at industry meetings and conferences.

AgriStability is intended to help Canadian producers to manage financial risks that threaten the viability of their farm by helping them protect their farm operations against large declines in farm income. Under the program, governments provide assistance when a producer's margin falls below seventy percent of their historical reference margin. All producers who derive income from the primary production of agricultural commodities are eligible to participate in the program.

For more information, visit the following websites:

• Federal AgriStability
• AgriStability in British Columbia
• AgriStability in Alberta
• AgriStability in Saskatchewan
• AgriStability in Ontario
• AgriStability in Quebec
• AgriStability in Prince Edward Island

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 2016 program year, the latest year for which application processing is complete and data is available:

• Participants in the program are responsible for producing 56% of the total farm market revenues for the industry, below the target of 65%, and down 2% over 2015.
• 32% of producers participated in the program, falling short of the target of 50%, and down 2% over 2015. 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; favorable market conditions experienced by many producers over several years; 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 for the first time, and will provide improved coverage levels. In addition, Federal, Provincial and Territorial governments are working on addressing the recommendations for the AgriStability program put forward by the Expert Panel on the Business Risk Management review.
• In 2016, 65% 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.

Agriculture and Agri-Food Canada communication efforts generally include mail outs, news conferences and/or news releases. Program clients are also 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.

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 (2017–18 to 2021–22) 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 (2017–18 to 2020–21) 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.

Dairy Farm Investment Program:

The performance indicators and results for Phase 1:

• Number of approved projects: 1,904; and
• Number of small/large scale investments: 119 large scale investments and 1,110 small scale investments.

Dairy Processing Investment Fund:

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.

Results reporting on progress has yet to fully take effect. The second year of the Dairy Processing Investment Fund approved 40 firms for funding.

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.

In 2018–19, 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.

The performance indicators and results:

• Dollar value of registered loans awarded by lending institutions during the fiscal year: $91 million (target: $98.5 million);
• Number of loans made to beginning farmers: 263 (target: 251);
• Defaulted loans as a percentage of the value of total loans at the end of the year: .01% (target: less than 1%); and
• Percentage of loans received from lenders within 15 business days is registered: 100% (target: 80%).

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 or, where it is necessary, through a paper-based application process.

Agriculture and Agri-Food Canada engaged potential and existing users and financial institutions to increase their knowledge of the Canadian Agricultural Loans Act program and have successfully completed a communications strategy which included paid and organic social media (Facebook, twitter, LinkedIn), direct mail to producers, print advertising, young farmers outreach, email and trade shows. Engagement of farmers and lenders will be incorporated in the evaluations plans.

Under the Loan Guarantee Programs, the federal government provides financial guarantees to producers, marketing agencies and agricultural co-operatives. The Advance Payments Program is a loan guarantee program which provides producers with access to credit through cash advances based on the value of their agricultural products. This enables producers to meet financial obligations and allows them to make the decision to sell agricultural products based on market conditions rather than the need for cash flow.

The Price Pooling Program provides cooperative marketing agencies with a price guarantee on eligible products as a form of security against unanticipated declines in the market price for their products. This helps them to secure financing to issue initial payments to their producer members as they deliver product to the cooperative marketing pools.

Advance Payments Program

In 2018–19, the Department, through the Advance Payments Program and in partnership with 36 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.

• The performance indicators and results: Number of producers receiving Advance Payments Program advances per production period: 21,214 (target: 21,820);
• Dollar value of Advance Payments Program advances issued per production period: $2.31 billion (target: $2.22 billion);
• Advance Payments Program defaults as a percentage of total Advance Payments Program advances taken per production period: 3.87% (target: 4.23%)*; and
• Percentage of Advance Guarantee Agreements sent to producer organizations within 8 weeks following receipt of a fully documented application: 87.5% (target: 80%).

Price Pooling Program

For 2018–19, Agriculture and Agri-Food Canada entered into Price Pooling Program agreements with marketing agencies for total guarantees value at $43.3 million. Participating marketing agencies did not make any claims to Agriculture and Agri-Food Canada against the price guarantee during the program year.

Performance indicator and Target: Guarantee price provided through the Price Pooling Program as a percentage of average market price: 64.46% (target: less than or equal to 65%).

Under Federal, Provincial and Territorial Cost-shared Markets and Trade, transfer payments are provided to the provinces and territories for programming to assist the Canadian agricultural sector in 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 and/or territorial programs support the sector in identifying new domestic and global opportunities that enhance competitiveness and prosperity.

Under Federal, Provincial and Territorial Cost-shared Science, Research, Innovation and Environment, transfer payments are provided to the provinces and territories for programming to accelerate the pace of innovation in the Canadian agriculture and agri-food sector. A key focus of such innovation is the research, development and commercialization of products, practices, processes and systems that enhance the productivity, competitiveness, economic growth and adaptability to environment and climate change in the sector.

Under Federal, Provincial and Territorial Cost-shared Assurance, transfer payments are provided to the provinces and territories for agricultural assurance programming to develop tools and support proactive mitigation activities. Specific provincial or territorial programs support the sector in its endeavors to prevent and control risks to the animal and plant resource base, provide safe food, and meet new market demands for assurance.

In partnership with provinces and territories, Agriculture and Agri-Food Canada has put in place a set of performance indicators and targets for Federal, Provincial and Territorial Cost-shared programming under three priority areas:

Federal, Provincial and Territorial Cost-shared Markets and Trade:

• Number of clients reporting that market information and intelligence meets needs for awareness and knowledge of market opportunities: the results for 2018–19 are not available at this time. Two client impact surveys are to be conducted at the mid-term and end of the Canadian Agricultural Partnership.

Federal, Provincial and Territorial Cost-shared Science, Research, Innovation and Environment:

• In 2018–19, 97 new technologies have attained Intellectual Property protection for products, practices, processes and systems surpassing the annual target of 15.

Federal, Provincial and Territorial Cost-shared Assurance:

• 1,083 risk management/assurance projects were completed on farm by activity type, slightly below the annual target of 1,097.
• In addition, 70 risk management/assurance projects were completed on processing facilities by activity type, missing the annual target of 167.