1. CLASSIFICATION Growing Forward: the policy…how we got there? Agriculture, Food and Resource Policy course McGill University Winter 2010 Macdonald Campus Charles Cantin Strategic Policy Branch in AAFC

2. 2 CLASSIFICATION From APF to GF … APF was the first Canadian agriculture and agrifood policy with shared national goals Nothing is perfect…there was need for improvement Three words inspired the development of the next generation of policy « Growing Forward » PARTNERSHIP INTEGRATED FLEXIBLE

3. 3 CLASSIFICATION What (could) shape the new policy APF 2 WTO ? Trends History Politics Industry Growing Forward

4. 4 CLASSIFICATION WHAT ABOUT THE INDUSTRY? Production : Canadian Federation of Agriculture (CFA) Processing : Conseil de la transformation agroalimentaire et des produits de consommation (CTAC) Think tanks : Canadian Agriculture Policy Institute, George Morris Centre, Institut agricole du Canada, M. Easter consultations documents, l’OECD etc….

5. 5 CLASSIFICATION WHAT ABOUT THE INDUSTRY…the producers «FARMERS WANT TO EARN INCOME FROM THE MARKET» CFA is promoting the «APF II A Canadian Farm Bill» ou en français «CSA II Une loi agricole canadienne» a three pillar policy  Public goods and services  Business risk management  Startegic growth

6. 6 CLASSIFICATION A public policy that reflects the preoccupations of Canadians Environment Energy Health

7. 7 CLASSIFICATION Partnership : Build together the next generation of policies PHASE 1 Fall 2005 to mid 2006 (Analysis & Fact Finding) PHASE 1 Fall 2005 to mid 2006 (Analysis & Fact Finding) PHASE 2 mid 2006 to Mid 2007 (Policy Development) PHASE 2 mid 2006 to Mid 2007 (Policy Development) PHASE 3 Mi 2007 / April 2008 (Dev. Program.) Nego./Signature.) PHASE 3 Mi 2007 / April 2008 (Dev. Program.) Nego./Signature.) FPT Ministers meeting Science, Conf Science, Conf CAPI Conf. PHASE 4 April 2008 PHASE 4 April 2008 Implementation of APF 2 FPT Ministers FPT Ministers Meeting Round 1 Round 2 Working group FPT Ministers annual meeting FPT Negociations FPT mtg. Ministers Process. approbation Working group Stakeholders Farm & industry organisations Value chain Environment & consumers groups s NGO etc… FPT Input Science CAPI Parliament ctee AAFC teams APF CTEE AAFC portfolio Etc… Multilateral Agreement Signed PHASE 4 2009 PHASE 4 2009 Growing Forward Implementation Sector that contributes to society’s priorities Sector that is proactive in managing risks Competitive and Innovative sector Public Goods and Services Pillar Business Risk Management Pillar Strategic Growth Pillar CFA « Canadian Farm Bill »

8. 8 CLASSIFICATION Partnership : Build together the next generation of policies PHASE 1 (Eco. context, Gov. direction..) PHASE 1 (Eco. context, Gov. direction..) PHASE 2 (Policy Development) PHASE 2 (Policy Development) PHASE 3 (Dev. Program…) PHASE 3 (Dev. Program…) PHASE 4 April 2013 PHASE 4 April 2013 Implementation of GF 2 FPT Ministers CFA, OFA and UPA are in a policy definition process. Forge united positions through the value chain. Emerging themes: health, euity, sustainable development, autonomy… Stakeholders Farm & industry organisations Value chain Environment & consumers groups s NGO etc… FPT Input Science CAPI Parliament ctee AAFC teams APF CTEE AAFC portfolio Etc… FPT Ministers meeting (Feb. 2010) FPT Ministers annual meeting FPT Ministers FOOD strategy, FOOD policy, FOOD security, FOOD safety, FOOD sovereighnety, Le Pouvoir de se nourrir, FOOD is the connection… (dixit : Even Solomon) ? GF 2 ?

9. 9 CLASSIFICATION A LITTLE BIT OF HISTORY: APF Goal “Enhance the long term sector profitability by making the Canadian agriculture and agrifood the world leader in food safety, innovation and environmentally-responsible production”. Branding Canada to compete on quality rather than price

10. 10 CLASSIFICATION The APF Agreement provided a framework in five major areas Environment Food safety and quality Renewal Science and innovation Business risk management …To make Canada a world leader The Ministers have agreed to build on the five pillars of APF (Saskatchewan november 25 2005)

11. 11 CLASSIFICATION Everything You Always Wanted to Know About…

12. CLASSIFICATION Business risk management BRM

13. 13 CLASSIFICATION Second Wave Whole-farm approach Net Income Stabilization Account (NISA) complemented by Canadian Farm Income Program (CFIP) 1991 to 2003 Drawbacks to approach: - Problems integrating two programs - Producers did not withdraw funds - CFIP paid after-the-fact: time-lag after drop in income inevitable Advantages to approach: - Production neutral - Provided support to all participants - Provided protection against countervail Third Wave Further integrated programs Canadian Agriculture Income Stabilization (CAIS) combined both disaster and income stabilization in a single program. Advantages to approach : - Whole-farm revenue is protected - Payout on sliding scale depending on income loss - Minimizes countervail risk - Covers negative margins Challenges: - Affordability - Flexibility - Complexity 2003 to Growing Forward Governments have also provided ad hoc programming throughout this evolution. Programs history… toward BRM programs First Wave 1940s to mid 1990s Commodity price support Payments triggered when commodity prices declined below target levels Drawbacks to approach: - Affordability - Uneven payments - Distorted markets - Serious vulnerability to countervail

14. 14 CLASSIFICATION From the old world to the new world… 1,1 billions $ Crop Insurance NISA CFIP Advanced Payments «Companion » Prog. Ex:ASRA «Companion » Prog. Ex:ASRA Before 2003 Starting in 2003 Production Insurance CAISP Advances : Spring and Advanced Payments Advances : Spring and Advanced Payments

15. 15 CLASSIFICATION CAISP : program based on individual margin … … 70 % 0 % ProducerGouv. STABILIZATION 85 % CATASTROPHE

16. 16 CLASSIFICATION THE POLITICAL AGENDA : what will happen with CAISP ? «Ministers are also determined to move forward on transforming the the CAIS program.…They tasked officials to review options …including the possibility of replacing the current integrated CAIS program with one that separates disaster relief from income stabilization». (British Columbia March 20 mars 2006) «…the government wants to replace CAISP …we are also going to pitch in when the unexpected strikes by creating a fund for disaster relief assistance over and above income stabilization. We promised to commit at least an additional 500 M$ every year to farm support programs».(Stephen Harper, Farm income crisis debate, April 6 2006)

17. 17 CLASSIFICATION Growing Forward Until 2007 Starting in 2007 AgriInsurance AgriInvestment AgriRecovery AgriStabilité Advanced Payments Program Crop Insurance CAISP Fall and Spring Cash Advance Payment Programs Fall and Spring Cash Advance Payment Programs DisasterAdhoc programs

18. 18 CLASSIFICATION AgriInvestment and AgriStability … … 70 % 0 % ProducerGouv. AgriStability 85 % AgriInvestment

19. 19 CLASSIFICATION Let me share with you some thoughts on… The WORLDS in what we are! You remember the…?

20. 20 CLASSIFICATION Inpredictable and chaotic… From complicated to complex… « If you are not trouble right now, if your mind is not confused, it is because you don’t understand what’s happening! » Jack Welch, CEO General Electric

21. 21 CLASSIFICATION The vision and the outcomes of Growing Forward are the key elements to programs development Vision: A profitable and innovative agriculture, agri-food and agri-based products industry that seizes opportunities in responding to market demands and contributes to the health and well- being of Canadians. Sector that contributes to society’s priorities Sector that is proactive in managing risks Competitive and Innovative sector

22. 22 CLASSIFICATION A Competitive and Innovative Sector is central to achieving long-term profitability Capacity to innovate Science clusters to deal with priority areas Science to Support Commercialization of New Agri-Based Products Support for commercialization and innovation Regulatory performance Improving approval process for veterinary drugs, novel foods and food additives Science and other support to help industry generate approval for health claims and new minor use pesticide products Industry success in global and domestic markets Support for industry-led marketing strategies Canada branding strategy Market intelligence and services for exporters Maintaining and improving market access

23. CLASSIFICATION « Something is missing! »

24. 24 CLASSIFICATION

25. 25 CLASSIFICATION A Competitive and Innovative Sector (continued) Capacity to adapt and succeed Helping entrepreneurs evaluate their performance and plan the future of their businesses

26. 26 CLASSIFICATION Contributing to Society’s Priorities will be done in a way that minimizes costs and maximizes opportunities Food Safety Facilitation of producer adoption of systems where the market demands Support for and recognition of food safety systems Environmental performance with focus on priority areas Research into agricultural practices that improve environmental performance Support for adopting management practices that create benefits or reduce risk in priority areas Dissemination of knowledge and information on environmentally sound practices Measurement of the sector’s environmental performance

27. 27 CLASSIFICATION Proactively Managing Risks means taking steps to both prevent /prepare for problems and Business Risk Management Preventing and preparing for risk Animal and plant biosecurity strategy Implementing biosecurity and traceability systems Improved BRM program suite AgriStability AgriInvest AgriRecovery AgriInsurance

28. 28 CLASSIFICATION IN RESUMÉ…… Agriculture policy…done! We already strated to work on the next one. Integrate and innovate easy to say…but to do! Partnership a formula that we have to invent continually We built on APF pillars… there is a continuum in policy but other aspect provoke evolution (health, energy…) Industry and think tanks have influenced Growing Forward (CFA, CAPI… What are the next Global Drivers that could influence the future…WTO, Climate change, Food crises, Energy, Water…

29. CLASSIFICATION