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A Guide to AgriRecovery

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A federal-provincial-territorial disaster relief framework

What is AgriRecovery?

AgriRecovery is a disaster relief framework that is part of a suite of federal-provincial-territorial (FPT) Business Risk Management (BRM) programs under the Canadian Agricultural Partnership. It is intended to work together with the core BRM programs to help agricultural producers recover from natural disasters.

AgriRecovery is not a program. It is a framework which forms the basis by which federal, provincial and territorial governments work together to assess the impacts of disasters on agricultural producers and respond with joint initiatives where there is need for assistance beyond what is available through existing programs.

Objective

The objective for initiatives developed under the AgriRecovery Framework is to help Canada’s agricultural producers recover by providing financial assistance for the extraordinary costs necessary for recovery.

Extraordinary costs are those which producers would not incur under normal circumstances, but which are necessary to:

AgriRecovery does not cover production or revenue declines, including those resulting from disasters. The core BRM programs, which are AgriInsurance, AgriStability and AgriInvest, are available to help producers who are faced with production and revenue declines.

What is the role of existing programming in disaster situations and how does this affect the AgriRecovery process?

AgriRecovery is not the first, nor the only, source of assistance when disasters occur. Where there is need for assistance beyond what is available through the core BRM programs, the Framework is intended to work together with these programs to help producers recover.

As such, the assistance available through the core BRM programs, as well as other available assistance programming, is considered when assessing whether or not an AgriRecovery response is warranted. Further, initiatives developed under the Framework must complement rather than replace or duplicate the assistance available through other programs.

As the core BRM programs will be the primary source of assistance in disaster situations, agricultural producers are encouraged to participate in these programs.

The three core FPT BRM programs are:

In addition, the Advance Payments Program is a federal loan program which is available to help crop and livestock producers meet their financial obligations through improved cash flow and better opportunities to market their agricultural products. Loans of up to $400,000 are available under the program, with the federal government covering the interest on the first $100,000.

There are other government programs which may provide assistance to producers who find themselves faced with a disaster event. For example, in disaster situations involving a disease or pest, the Canadian Food Inspection Agency (CFIA) may provide disaster-related compensation under the Health of Animals Act or the Plant Protection Act. Assistance may also be available to support recovery through provincial disaster assistance programming, which may be partially funded through Public Safety Canada’s national Disaster Financial Assistance Arrangements.

What types of disaster events can be considered for assistance under AgriRecovery?

Those associated with natural disaster events such as:

What kinds of events cannot be considered?

Examples of events that cannot be considered for assistance under AgriRecovery include:

How does AgriRecovery work?

The AgriRecovery Framework provides a process for FPT governments to jointly respond to disasters affecting Canada’s agricultural producers.

The AgriRecovery process includes a number of key steps, including:

As assistance under the AgriRecovery Framework is made available through individual, disaster-specific initiatives, each initiative will have its own name (e.g., 2013 Canada-Nova Scotia Strawberry Assistance Initiative).

What are the key considerations in assessing disasters and designing initiatives under AgriRecovery

FPT governments have agreed on a set of principles and criteria to guide the assessment of disaster events and the development of AgriRecovery initiatives. As each disaster situation will be assessed on a case-by-case basis, differences in the circumstances of each disaster will lead to different types and levels of AgriRecovery assistance.

Principles

In order to ensure producers are not compensated twice for the same costs, payments under AgriRecovery for extraordinary costs that are eligible under AgriStability will be included as eligible income in the program year for AgriStability purposes.

Assessment Process and Criteria

The AgriRecovery Assessment Processconsists of two-stages to evaluate a disaster event and its impacts on agricultural producers against the Framework’s criteria:

Preliminary Assessment Criteria:

The disaster event must:

If any one of the Preliminary Assessment criteria is not met, the assessment process stops and governments cannot provide assistance through the AgriRecovery Framework. If all three criteria are met, governments can proceed to the Formal Assessment stage.

Formal Assessment Criteria:

The disaster event should:

The results of the analysis for the four Formal Assessment Criteria will be taken together to conclude whether or not an AgriRecovery response may be warranted.

Coverage

Where, based on the findings and conclusions of an assessment, participating governments agree to proceed with an AgriRecovery response, an initiative is then developed to compensate affected producers for up to 70% of the extraordinary costs.

Examples of extraordinary costs covered by previous AgriRecovery initiatives include:

Exceptions for Disease and Pest Events with a High Risk of Spread

The AgriRecovery Framework includes provisions which provide greater flexibility to respond to situations where actions must be taken to prevent the spread of a disease or pest.

These provisions include the ability to:

How can I apply to AgriRecovery?

AgriRecovery is not a program. It is a disaster relief framework which defines the principles and criteria under which FPT governments can work together to help agricultural producers recover from the impacts of disaster events.

Once an initiative has been developed under the AgriRecovery Framework, the program details of that initiative, such as the initiative’s terms and conditions and application process, will be made available.

Where can I go for answers to my questions about AgriRecovery and how it may help me recover from a disaster?

Additional information on the FPT AgriRecovery Framework, including information and links to current AgriRecovery initiatives, can be found on AAFC’s website. Information can also be obtained by contacting the Department at 1-855-773-0241.

Annex – AgriRecovery Assessment Flow Chart

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Description – AgriRecovery Assessment Flow Chart

Preliminary Assessment Questions:

  1. Is this event considered to not be a Recurring Event?
  2. Is this an Abnormal Event?
  3. Are there Extraordinary Costs necessary for recovery?

If any one of the Preliminary Assessment criteria is not met, the assessment process stops and governments cannot provide assistance through the AgriRecovery Framework. If all three criteria are met, governments can proceed to the Formal Assessment stage.

Formal Assessment Measures:

  1. Is it a Collective Experience?
  2. Are there Significant Negative Impacts?
  3. What are the Extraordinary Costs associated with recovery and are they significant?
  4. Capacity to Manage: With the help of existing programs, are Extraordinary Costs beyond the capacity of producers to manage?

The results of the analysis for the four Formal Assessment Criteria will be taken together to conclude whether or not an AgriRecovery response may be warranted.

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