1. A Federal-Provincial-Territorial Initiative Putting Canada First Agricultural Policy for the 21st Century Putting Canada First Agricultural Policy For the 21st Century A Federal-Provincial-Territorial Initiative

2. 03-137-dp 2 Key elements of the Agricultural Policy Framework: Environment Food Safety and Food Quality Science and Innovation Renewal Business Risk Management The Agricultural Policy Framework contains five key elements

3. 03-137-dp 3 Environment

4. 03-137-dp 4 Environment Products produced in an environmentally sound manner translate into benefits to producers and consumers In 5 years, we will have: National standards for farm environmental certification New tools to support environmentally sound production Environmental farm planning Producers receive recognition for their environmental investments Consumer access to quality food produced according to the highest environmental performance standards

5. 03-137-dp 5 On-Farm Action Performance Measurement Knowledge & Information Program elements Environment Programs under the APF will achieve the following:

6. 03-137-dp 6 Food Safety and Food Quality

7. 03-137-dp 7 Program elements Facilitating industry adoption of Hazard Analysis Critical Control Point (HACCP)- based food safety systems, both on-farm and beyond Food quality — assisting in the development of quality process control systems Traceability systems which allow products to be traced backwards and forwards through the agri-food continuum Food Safety and Food Quality

8. 03-137-dp 8 Supporting activities Research to address knowledge gaps Enhancing collaboration among federal stakeholders Government recognition of on-farm food safety programs Government recognition and certification of food quality systems to improve market access Food Safety and Food Quality

9. 03-137-dp 9 Renewal

10. 03-137-dp 10 What is Renewal? Renewal Renewal is about providing farmers with: Assistance to develop the skills and knowledge which will help them continue to be successful Access to advice to help increase profitability through on- or off-farm opportunities Information on opportunities to help farmers improve family income and/or make informed choices about sources of income

11. 03-137-dp 11 Proposed programming will focus on five key areas Canadian Farm Business Advisory Services – a network of advisory services that provide useful information for making business-related decisions Support for Skills Assessment and Training – assistance for skills development and training to help farmers make choices about the future and enable them to pursue opportunities on and off- farm Capturing Opportunities – improve profitability by increasing awareness of innovations in science and technology and how to implement them Renewal

12. 03-137-dp 12 Proposed programming will focus on five key areas (Continued) Awareness – To provide information that helps farmers make decisions about their business operation and to establish and build awareness for renewal initiatives > Benchmark CD Rom and Web site: www.agr.gc.ca/comparewww.agr.gc.ca/compare > Agricultural Services Web site: www.agr.gc.ca/ren/serv/supp_e.cfm Access to Capital – To increase private sector investment and improve farmers’ profitability of obtaining debt and/or equity financing Renewal

13. 03-137-dp 13 Science and Innovation

14. 03-137-dp 14 Promoting science, research and technology transfers Science and Innovation Realigning public science resources – realigning and increasing science investments sourced from outside the agriculture sector – realigning AAFC research resources already undertaken in support of APF priorities Coordinating science and innovation efforts – taking the results of knowledge from the lab to the market place and into use Creating a climate for innovation – ensuring that agriculture’s innovation needs are built into the government’s innovation policies

15. 03-137-dp 15 International

16. 03-137-dp 16 The new international strategy International Gaining recognition and building markets – market research; branding; technical marketing assistance; emerging market strategies; trade specialists Improving market access – trade negotiations; strategic alliances; advocacy; and consultations Overcoming technical barriers – influence trade policy and rules; alliances; early warning; and market access protocols Enhancing international development – research and analysis; strategic program objectives; and market development

17. 03-137-dp 17 Implementing the new strategy International 2003-04 – Value-chain roundtables – Development of marketing strategies – Transition from AFTP to the new international program 2004-05 – Full implementation – New funding structure – Adapt to changing market priorities

18. 03-137-dp 18 Business Risk Management

19. 03-137-dp 19 New program design: CAIS Business Risk Management Integrated stabilization and disaster mitigation program, with larger government contributions for disasters Whole farm approach Government funds would be accessed when a need is established Coverage based on a “production margin”, which is larger than the pervious gross margin

20. 03-137-dp 20 How CAIS will work Business Risk Management Integrated Trigger for Stabilization and Disaster – A producer would receive a payment when their current margin falls below their reference margin – Funds will be accessed in a ratio determined by the degree of margin decline – The more severe the loss, the greater government financial participation

21. 03-137-dp 21 Costs will be shared, but borne progressively more by governments 85% 0% DISASTER TIER Government funds cover larger share of loss producergovernments NEGATIVE MARGINS Could be partly provided through Production Insurance or Private Risk Management Tools 70% 50% 30% 70% 20% 80% STABILIZATION TIERS Producer funds cover larger share of loss 100% Business Risk Management

22. 03-137-dp 22 Depending on their own situation, the producer would request a specific level of coverage To access the desired level of protection, the producer would place on account the required share of funds producer governments 85% 0% 70% 100% Disaster Tier Stabilization Tiers Business Risk Management Producers would be able to select their coverage level, up to their entire margin

23. 03-137-dp 23 Producers could initially select the minimum protection option with 1/3 of their needed contribution on account By the third year, they would need to increase the amount on account to the minimum level This process could be reset after a major downturn, to ensure time to rebuild the producer’s account government producer 85% 0% 70% 100% Business Risk Management For affordability, farmers could initially obtain basic coverage with only 1/3 down

24. 03-137-dp 24 One program for stabilization, disaster Under CAIS 1/3 down gives protection and can be carried over Can rebuild protection immediately Designed to meet WTO criteria Previously… more complex: different programs, criteria producers need to build accounts over time After a major downturn, rebuild funds over time Designed to meet WTO criteria Business Risk Management The new approach has many advantages compared to the previous program

25. 03-137-dp 25 Production Insurance Governments are committed to expanding options available to more commodities Often this will involve building on the best of what is already available across Canada, for example: – products based on satellite imagery, for example to estimate the yield of forage and pasture crops – insurance that is tied to the average rainfall in a particular area – crop value insurance that can compensate producers of perishable crops with multiple harvest dates Introduction of a whole farm option Business Risk Management

26. 03-137-dp 26 Conclusion

27. 03-137-dp 27 Progress to date and next steps Negotiations on programming and implementation details are ongoing Programs will be implemented as they are finalized through to 2008

28. A Federal-Provincial-Territorial Initiative Putting Canada First Agricultural Policy For the 21st Century A Federal-Provincial-Territorial Initiative www.agr.gc.ca/puttingcanadafirst

29. 03-137-dp 29