Growing Forward Canada’s New Agricultural Policy Framework

Agricultural Policy in Canada Federal and Provincial (and Territorial) responsibility The Agricultural Policy Framework (APF) agreement in 2003, 5-year program Spending priorities outlined in the APF Program funding by Federal and Provincial governments

APF Characteristics (5 Pillars) 1.Business Risk Management – program payments, crop insurance 2.Food Safety and Quality - traceability 3.Science and Innovation – new crops and opportunities 4.Environment – enhance soil, water and air quality, and biodiversity 5.Renewal – skills development/extension

Business Risk Management AgriInvest – producer accounts to help cover margin declines AgriStability – to cover large margin declines AgriInsurance – crop insurance AgriRecovery – disaster at a regional level Advance Payments Program – cash advances to help with cash flow

AgriInvest A producer account from which payments area made to the producer (account can not go into deficit), also only margin declines of less than 15% Payment used to address a small margin decline Producer deposits of up to 1.5% of allowable net annual sales Producer money is matched by government Supply managed commodities not covered

AgriStability Provides support when a large margin decline is experienced For margin declines of greater than 15% Whole farm support, targeted to individual producers

AgriInsurance Includes existing production insurance programs Expanded to include additional commodities Payments made when a production loss is incurred (drought, frost, flood, …) Delivered by the provinces

AgriRecovery Government response to disasters in a specific region or industy Assistance is to be ‘rapid’

Advance Payments Program Cash advances available to producers (mainly annual cropping) To provide cash flow throughout the year (especially in the spring-early summer)

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