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Table 11-B: Details on Transfer Payments Programs for Agriculture and Agri-Food Canada

1. Canadian Agricultural Income Stabilization (CAIS)
2. Canadian Agricultural Income Stabilization Inventory Transition Initiative (CITI)
3. Production Insurance
4. Cover Crop Protection
5. BSE/Cull Cow/ Specified Risk Materials
6. Spring Credit Advance Program (SCAP)/Enhanced Spring Credit Advance Program(ESCAP)
7. Payments in connection with the Agricultural Marketing Programs Act (AMPA)
8. Contributions for Agriculture and Agri-Food Sector Assistance - Environment
9. Contributions for Agriculture and Agri-Food Sector Assistance - Food Safety and Food Quality
10. Canadian Farm Families Options
11. Advancing Canadian Agriculture and Agri-Food (ACAAF)
12. Contributions for Agriculture and Agri-Food Sector Assistance - Science and Innovation
13. Contributions for Agriculture and Agri-Food Sector Assistance - Renewal
14. Prairie Grain Roads
15. Contributions in Support to Rural Canada and Development in the Area of Co-operatives Framework
16. Contributions for Agriculture and Agri-Food Sector Assistance - International (Canadian Agriculture and Food International)
17. Plum Pox Eradication

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($ millions)

Name of Transfer Payment Program: Canadian Agricultural Income Stabilization (CAIS) & CAIS Inventory Transition Initiative (CITI) (under the Agricultural Policy Framework -Business Risk Management Terms and Conditions - Statutory Program)

Start Date: April 1, 2003 for APF-Business Risk Management (BRM)
End Date: March 31, 2008 for APF-Business Risk Management (BRM) funding

Description: The purpose of the CAIS program is to help producers protect their farming operations from both small and large drops in income due to circumstances beyond their control. It is the successor to the Net Income Stabilization Account (NISA) which focused on stabilization, and to the Canadian Farm Income Program (CFIP) which focussed on disaster protection. The CAIS program commenced with the 2003 program year. The CITI program is a one time initiative to re-adjust the inventory carrying values of CAIS participants to a new way of valuing inventories.

Strategic Outcome: Security of the Food System

Results Achieved:
Program Starts as of March 31,2007:
CAIS (2005 Program Year)
(Federal Delivery) 55,216 complete applications received. Total value of payments $576.1 million
(National Delivery) 135,245 complete applications. Total value of payments $1,005.2 million
CITI Program
(2003 Program Year - Federal Delivery) 50,828 forms received. Total value of contributions $177.8 million
(2004 Program Year - Federal Delivery) 50,902 forms received. Total value of contributions $97.9 million
(National Delivery) 115,955 contributions paid. Total value of contributions $673.2 million
Client service has been enhanced through more rigorous program promotion activities which included CAIS producer sessions, accountant sessions, trade shows, and targeted information sessions. A number of industry advisories were also issued to form preparers to highlight program changes. Harmonized form developed with Canada Revenue Agency (CRA) and implemented in 2006/07 fiscal period.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Business Risk Management
Total Grants (CITI)	-	-	481.0	431.0	431.0	50.0
Total Contributions (CAIS & CITI)	804.0	1,068.7	1,009.4	1,375.3	1,375.3	(365.8)
Total Transfer Payment Program	804.0	1,068.7	1,490.4	1,806.3	1,806.3	(315.8)
Comment(s) on Variance(s): At the time of preparation of the 2006-07 Report on Plans and Priorities, the grant versus contribution allocation of the CITI program had not been finalized. The $50 million variance in the grants was approved for spending as contributions. The higher than planned spending for the CAIS program is due to the demand driven nature of the program with funding allocated based on program requirements, which can be different from planned spending.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: The Office of the Auditor General of Canada examined how the department processes applications for income support, ensures that all parties are respecting the various monitoring provisions set out in the federal-provincial-territorial agreements, and measures and reports its performance to parliament.

 

($ millions)

Name of Transfer Payment Program: Production Insurance (under the Agricultural Policy Framework-Business Risk Management Terms and Conditions - Statutory Program)

Start Date: April 1, 2003 for APF-Business Risk Management (BRM)
End Date: March 31, 2008 for APF-Business Risk Management (BRM) funding

Description: The purpose of the program is to seek to stabilize farm income through cushioning the producer against the economic impact of production losses arising from natural hazards like drought, hail, frost and diseases.

Strategic Outcome: Security of the Food System

Results Achieved:
A total of 22 new program options were offered, including improvements for forage, horticulture, potato storage, new crops and available coverage levels. The targeted participation rate for crop acreage (70.0 percent) was achieved in Manitoba (80.9 per cent) and Quebec (75.3 percent), while the national average was 64.2 percent. The targeted participation rate for forage (50.0 percent) was not met (23.3 percent), but insured acreage increased for 2006. The transition to 60/40 federal-provincial cost-sharing was achieved in 2006 for all provinces.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Business Risk Management
Total Grants	-	-	-	-	-	-
Total Contributions	400.5	345.9	407.0	343.1	343.1	63.9
Total Transfer Payment Program	400.5	345.9	407.0	343.1	343.1	63.9
Comment(s) on Variance(s) Actual expenditures were lower than planned spending due to lower grain and oilseed prices which resulted in reduced total premiums. The original spending estimates also anticipated expenditures for livestock insurance programs that were not implemented by the provinces during the reporting period.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: An evaluation of the Production Insurance program for the years 2003-04 to 2005-06 was completed in 2007 with emphasis on relevance, implementation, cost-effectiveness and success. In terms of relevance, the evaluation found that the program meets the risk management requirements for insured producers and it reduces demand for ad hoc payments to cover production losses. Regarding implementation of new plans to reduce gaps in coverage, there were no programs for livestock during the period subject to evaluation and options for non-traditional crops were not available in all provinces. The evaluation found that the program is very cost-effective when compared to offerings in other countries. On a inter-provincial basis there is more transparency and increased standardization to coverage than prior to the Agricultural Policy Framework (APF). The program has been successful in making progress towards achieving identified Business Risk Management outcomes.

 

($ millions)

Start Date: June 8, 2006
End Date: March 31, 2011

Description: The Cover Crop Protection Program (CCPP) provides financial assistance as a direct payment to the producers whose lands are affected by excess moisture or flooding. The federal funding is being provided to producers based on their inability to seed a commercial crop on or before the seeding deadline specified by the Production Insurance (PI) program in their particular province.

Strategic Outcome: Security of the Food System

Results Achieved:
There were 22,700 payments made to producers who where affected by excess moisture or flooding covering 5.2 million acres.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Business Risk Management
Total Grants	-	-	45.8	82.8	78.0	(32.2)
Total Contributions	-	-	-	-	-	-
Total Transfer Payment Program	-	-	45.8	82.8	78.0	(32.2)
Comment(s) on Variance(s) At the time of preparation of the 2006-07 Report on Plans and Priorities, the amount allocated for the Cover Crop Program had not been finalized. Additional funding was approved for this program from the 2006 Budget.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: N/A

 

($ millions)

Name of Transfer Payment Program: Bovine Spongiform Encephalopathy (BSE)/Cull Cow/Specified Risk Materials (SRM) (under the BSE Recovery Program Terms and Conditions - Statutory and Voted)

Start Date:
June 2003
December 2006 for SRM
End Date:
March 2008
March 2009 - SRM

Description:
The purpose of this program is to deal with the sudden impacts of Bovine Spongiform Encephalopathy (BSE) on the beef industry.The aim of the program was to get the domestic market moving again and to improve returns to producers following border closure to Canadian cattle and beef.

Old programs included the BSE Recovery Program, which ran in 2003-04, and offered several price incentives to help keep the domestic market moving and provided improved returns to feedlots and processors to move product through the chain in light of severely depressed prices caused by the USA border closure;

The Cull Animal Program, which ran in 2003-04, made a payment to producers for each eligible older animal sold for slaughter; and;

The Fed Cattle Set-Aside Program, the Feeder Calf Set-Aside Program, and the Managing Older Animals program ran in 2004-05 to 2005-06 and assisted balance animals supply and demand until normal trade patterns resumed and/or slaughter capacity increased.

To assure the future of the industry, additional funding has been provided for marketintg assistance, increasing slaughter capacity and enhacing traceability. Also, financial assistance is being provided to help the industry meet the enhaced feed ban regarding specified risk material.

Strategic Outcome: Security of the Food System

Results Achieved:
The Ruminant Slaughter Facility Assessment Assistance (RSFAA) and Ruminant Slaughter Equity Assistance (RSEA) programs have been successful in increasing Canada's slaughter capacity by contributing to producers' investments in slaughter facilities.

Federally-regulated weekly slaughter capacity has increased from an estimated 73,140 head in 2003 to a projected 102,325 in 2007, implying a Canadian kill in excess of five million head annually. This is higher than the expected 4.5 million head of fed and non-fed cattle available for slaughter in 2007, which could be reduced by the number of live cattle that are exported. As a result, AAFC has suspended/cancelled the RSFAA and RSEA programs as sufficient slaughter capacity has been, or soon will be, established.

The RSEA program funded the establishment of one new federally-inspected slaughter facility and the expansion of two federally-inspected slaughter facilities. It did not fund any projects to upgrade provincially-inspected facilities to meet federal standards. The three projects approved total $10.3 million in funding.

Ruminant Slaughter Loan Loss Reserve Program
Four projects were approved under the Ruminant Slaughter Loan Loss Reserve Program, for a total commitment of $29.1 million of the $41.7 million available through the program. Of that total, $24.9 million has been disbursed to lending institutions involved with the projects. The planned slaughter capacity is 569,000 head per year.

Canadian Cattle Identification Agency (CCIA):
The CCIA integrated its old Cattle Tracking System (CTS) with a new internet-based system called the Canadian Livestock Tracking System (CLTS). The system tracks age verification (AV), premises identification and movement and sighting, and allows for new value-added services to be added to further enhance the CCIA's traceability program. Since its release, the CLTS has provided the cattle industry with a reliable and integrated method of information-keeping to re-open and keep international and domestic markets open to Canadian beef exports.

To date, the CCIA has allocated or sold more than 56 million unique ID numbers to tag manufacturers across Canada. Since the introduction of AV to the cattle industry, the CCIA has processed more than 202 million events within the system and recorded more than 3.7 million birth dates.

Canadian Integrated Traceability Program (CITP):
Under the CITP, 15 projects were approved for a total funding commitment of $1.5 million. Projects approved under the program support traceability pilot projects to accelerate the development, implementation and integration of traceability systems across the Canadian meat and livestock industry.

Canadian Livestock Identification Agency (CLIA):
CLIA develops a self-sustainable financial and management model for the agency, the development of national standards for a comprehensive national livestock identification system and make recommendations for the establishment of such a system. The total funding for the CLIA project is $1.1 million.

Canadian Radio Frequency Identification Reader Program (CRFID):
The CRFID Reader Program is a reimbursement program with the objective to accelerate the development of a comprehensive livestock tracking and tracing system in support of a traceability initiative.

As of March 31, 2007, the CRFIP had reimbursed 125 applicants for $0.1 million.

Marketing Assistance
The Genetics Marketing Program and the Other Ruminants Market Development Program provided $2.5 million in support of 10 industry association projects to implement marketing strategies targeting traditional and non-traditional markets. Russia was a targeted country of development efforts and, as a result, a contract for almost 2,000 cattle with a value of $7.5 million was negotiated. This was the first significant shipment of breeding cattle since the discovery of BSE in May 2003 and was facilitated through government negotiation of access. The Sustaining the Genetic Quality of Ruminants Program provided $6.5 million in support of 17 industry association projects to help maintain Canada's reputation for genetics and the marketability of genetic ruminant products. Canadian Dairy Herd Improvement partners worked on developing a National Dairy Cattle Health and Disease Data Management System, the primary objective being the creation of a national dairy cattle health and disease database for herd management and genetic evaluation.

The system will move Canada into the forefront in terms of recording animal health information. In 2006, exports of dairy semen increased by 18 percent or $10.0 million, up from $59.0 million in 2005 to $69.0 million in 2006.

Specified Risk Material (SRM)
Financial assistance is provided to the beef industry to adapt to an enhanced feed ban. The funding is made through provincially-led programs for adequate SRM disposal. $4.4 million dollars have been allocated in 2006-07.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Business Risk Management
Total Grants	-	-	-	-	-	-
Total Contributions	134.1	59.5	106.0	28.6	27.5	78.5
Total Transfer Payment Program	134.1	59.5	106.0	28.6	27.5	78.5
Comment(s) on Variance(s): At the time of preparation of the 2006-07 Report on Plans and Priorities, the yearly profile for the $80 million program to facilitate the disposal of Specified Risk Materials had not been determined. The final yearly profile allocated $4.4 million in contributions for the 2006-07 fiscal year.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Audit of the Federal/Provincial delivery of completed BSE programs were conducted and are near completion.

 

($ millions)

Program Activity: Spring Credit Advance Program (SCAP) and Enhanced Spring Credit Advanced Program (ESCAP) (under the Agricultural Policy Framework (APF) -Business Risk Management Terms and Conditions - Voted & Statutory)

Start Date: April 1, 2003 For APF-Business Risk Management (BRM)
End Date: 2007-2008 concurrent with the end of the APF

Description: The SCAP program has been in place since 2000. The Spring Credit Advance Program (SCAP) provides producer organizations and their lenders with a repayment guarantee for advances of up to $0.05 million which are issued to producers in the spring. The objective of the program is to assist producers with their spring production input costs.

The ESCAP program was put in place in 2006 as a transitional program to increase the amount of interest free benefit to $0.1 million while amendments were being made to Agricultural Marketing Programs Act (AMPA). The objective of ESCAP is to allow producers to make decisions based on sound production or marketing rationale rather than on the availability of operating cash. Such objectives will contribute to the overarching goal of the APF.

The benefits of ESCAP include:
- Minimizing the distortion of producers' marketing and production decisions; and
- Facilitating short-term cash flow and long-term planning by producers.

Strategic Outcome: Security of the Food System

Results Achieved:
Legislative amendments on the AMPA were tabled in Parliament in May 2006, and the Enhanced Spring Credit Advance Program was announced as an interim measure. The AMPA received royal assent in June, 2006, and came into force in November, 2006.

On February 28th, 2006 AAFC launched the Advance Payments Program (APP)/SCAP Electronic Delivery System allowing producer organizations to submit producer level data electronically. AAFC now has greater access to more accurate reporting of advances and repayments across provinces and producer organizations.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Business Risk Management
Total Grants	-	-	-	-	-	-
Total Contributions	16.9	15.3	75.2	70.6	27.4	47.8
Total Transfer Payment Program	16.9	15.3	75.2	70.6	27.4	47.8
Comment(s) on Variance(s) For the 2006-07 fiscal year, the Planned amount was higher than in the past as it included unspent funding that was rolled over from previous years. Also, the guarantee payments were offset by the recovery of prior defaults.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: As planned, no Audits or Evaluations were completed.

 

($ millions)

Name of Transfer Payment Program: Payments in connection with the Agricultural Marketing Programs Act (Statutory) - Advance Payment Program

Start Date: 1997
End Date: On-going under the AMPA legislation

Description: The Advance Payments Program (APP) guarantees provides cash advances to eligible producers (recent amendments to AMPA increased the interest free portion of advances from $0.05 to $0.1 million, and the maximum advance from $0.25 to $0.4 million) to enable them to produce and market their agricultural products when market conditions are most ideal. Amendments also allow livestock producers the ability to receive an advance under APP.

Strategic Outcome: Security of the Food System

Results Achieved:
Legislative amendments on the AMPA were tabled in Parliament in May 2006, and the Enhanced Spring Credit Advance Program was announced as an interim measure. The AMPA received royal assent in June, 2006, and came into force in November, 2006.

On February 28th, 2006 AAFC launched the APP/SCAP Electronic Delivery System allowing producer organizations to submit producer level data electronically. AAFC now has greater access to more accurate reporting of advances and repayments across provinces and producer organizations.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Business Risk Management
Total Grants	-	-	-	-	-	-
Total Contributions	13.8	9.2	91.5	10.6	10.6	80.9
Total Transfer Payment Program	13.8	9.2	91.5	10.6	10.6	80.9
Comment(s) on Variance(s) Actual spending reflects all interest & guarantee payments made under the APP. Actual interest and guarantee payments are less than provided for in the planned amounts because a large number of producers opted to use ESCAP rather than APP as the interest-free provision was doubled from $50,000 to $100,000 for ESCAP, thus giving a larger benefit to the producer.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: As planned, no Audits or Evaluations were completed.

 

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Environment (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date: April 1, 2003
End Date: March 31, 2008

Description: The purpose of the Environment programs is to support the adoption of management practices on farms across Canada, which are beneficial to the environment and economically sustainable.

Stategic Outcome:  Health of the Environment

Results Achieved:

• Environmental Farm Planning (EFP) - Environmental scans completed for about 91.5 percent of the agricultural land in Canada; Over 55,000 participants in EFP/Equivalent Agri-Environmental Planning (EAEP) process; About 46,000 EFP/EAEPs reviewed.
• National Farm Stewardship Program (NFSP) - approx. 14,000 Beneficial Management Practices (BMP) projects completed.
• Greencover Canada - Over 4,500 land conversion projects were seeded; Over 3,100 critical areas projects completed; Almost 80 technical assistance projects completed; Over 1000 shelterbelts projects completed.
• National Water Supply Expansion Program (NWSEP) - Over 4,050 Tier 1 projects completed; Over 180 Tier 2 projects completed; Almost 300 Tier 3 projects completed.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Environment
Total Grants	-	-	-	-	-	-
Total Contributions	32.4	48.6	126.1	142.3	97.0	29.1
Total Transfer Payment Program	32.4	48.6	126.1	142.3	97.0	29.1
Comment(s) on Variance(s): The Planned Spending for the Environment Programs was $126.1 million. An additional $16.2 million was provided from funding reprofiled from previous years. Of the $142.3 million authorized for this program, $97.0 million was spent. The remaining $45.3 million has been requested to be reprofiled to the 2007-08 fiscal year. It is planned that Environment programs will spend all available funding.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Chapter Evaluation of the Agricultural Policy Framework (APF) Environment Priority Volume I - Final Report was completed. The final document is being translated at this time and no URL is available.

 

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Food Safety and Food Quality (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date:  April 1, 2003
End Date:  March 31, 2008

Description: The objective of the program is to assist industry in developing and implementing government-recognized national food safety, traceability, and food quality systems throughout the agri-food continuum, in order to: protect human health by reducing exposure to food hazards; increase consumer confidence in the safety and quality of food produced in Canada through enhanced transparency and knowledge of systems used to safeguard Canadian food safety and quality; and provide value-added opportunities through the adoption of food safety and food quality systems that support the Canada brand.

Strategic Outcome: Security of the Food System

Results Achieved:
The Canadian Food Safety and Quality Program is made up of three components: 1) Systems Development 2) On-Farm Implementation and 3) the Food Safety Initiative

The Systems Development component has four elements 1) On-Farm Element, 2) Post-Farm Element, 3)Traceability Element and 4)Food Quality element.

In 2006-07:

• On-Farm Element: 16 of 19 eligible industry organizations were at various stages of system development. Of those 16 organizations, 10 have completed the first part of a three-part Canadian Food Inspection Agency (CFIA) recognition process; two have completed the second part of the process. All, 17 projects worth $5.2 million were approved;
• Post-Farm element: 13 of 28 eligible organizations participated and have systems at various stages of development. Thirteen projects were approved for a total of $2.9 million in funding; and
• Traceability element: two projects were approved for a total of $0.6 million.
• Food Quality element: no projects were approved. A food quality policy is still being developed.

Under the On-Farm Implementation component, 4 national commodity organizations are offering workshops and technical support on Food Safety directly to producers. Two projects worth $6.6 million were approved.

Under the Food Safety Initiative component, Saskatchewan joined the initiative bringing the approved funding under this component to $48.9 million for the six provinces involved (B.C. Alta., Sask., Man., Ont, and N.S.). Provinces have approved 553 projects and 25 pilot projects.

As of March 31, 2007, $86.0 million (45.0 percent of a total of $190.0 million) of Agricultural Policy Framework funding has been approved for projects and $21.1 million (25.0 percent of the $86.0 million) has been spent.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Food Safety and Food Quality
Total Grants	-	-	-	-	-	-
Total Contributions	4.5	6.1	73.0	33.3	10.5	62.4
Total Transfer Payment Program	4.5	6.1	73.0	33.3	10.5	62.4
Comment(s) on Variance(s) The Planned Spending for the Food Safety & Quality Program was $73.0 million. Approximately $40.0 million was reallocated to support other APF programs, the Canadian Farm Families Options Program and the Advancing Canadian Agriculture & Agri-Food Program. Of the $33.3 million authorized for this program, $10.5 million was spent. The remaining $22.8 million has been requested to be reprofiled to the 2007-08 fiscal year. The actual spending was less than authorized due to the length of time it takes to develop these systems, which is longer than anticipated, partially as a result of the lack of enterprise available. On average, it takes national organizations three to six years to develop a food system. For national on-farm organizations, it takes an additional 12-18 months before they can even apply for the On-Farm Implementation component. This fourth year of the five-year program has seen an increase in spending, with a significant increase expected in the upcoming fiscal year.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: No Program audits and evaluations occurred in 2006-07 and none planned for in 2007-08 fiscal year.

 

($ millions)

Name of Transfer Payment Program: Canadian Farm Families Options Program (CFFOP) (Voted)

Start Date:June 23, 2006
End Date: March 31, 2010

Description: The Options Program is a two-year pilot program that provides short-term financial assistance to low-income farm families and provides eligible clients with access to farm business assessment and training services that could help them increase their long-term on- and off-farm income opportunities. Income payments are issued to eligible applicants based on information on the 2005 and 2006 tax years. Eligible applicants commit to completing a Renewal activity, either a Farm Business Assessment or Canadian Agricultural Skills Service, or an approved equivalent activity by November 20, 2008.

Strategic Outcome: Innovation for Growth

Results Achieved:
In 2006-07: 17,092 applications were received; as of July 2007 $143.9 million was distributed to 15,188 families and individual farmers; and 30.0 percent of program recipients applied for business planning and skills development. It is anticipated that an additional $1.4 million will be paid out to Year 1 applicants as appeals and adjustment are finalized. Of the eligible participants who received an Options payment in the first year, it is anticipated that 70.0 percent of participants will return in Year 2 and will have completed or signed-up for their Renewal activity before October 2007.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Innovation and Renewal
Total Grants	-	-	157.5	190.0	145.0	12.5
Total Contributions	-	-	31.0	29.0	-	31.0
Total Transfer Payment Program	-	-	188.5	219.0	145.0	43.5
Comment(s) on Variance(s) At the time of preparation of the 2006-07 Report on Plans and Priorities, the amount allocated for the Canadian Farm Families Options Program had not been finalized. On May 31, 2007 changes to the Options program were approved by Treasury Board. These changes resulted in the original $550.0 million budget being reduced to $303.3 million. Approval was obtained to reprofile the remaining funding to other initiatives.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: An Audit and Evaluation of the Options program is to be completed by March 31, 2010.

 

($ millions)

Name of Transfer Payment Program: Advancing Canadian Agriculture and Agri-Food (ACAAF) (Voted)

Start Date:  April 1, 2004
End Date: March 31, 2009

Description: The Advancing Canadian Agriculture and Agri-Food (ACAAF) program is a five-year, $240.0 million program designed to assist Canada's agriculture and agri-food sector seize new market opportunities, respond to current and emerging issues and contribute to the direction of future policies and programs for the sector. It is delivered both nationally and regionally. Regionally, it is delivered by 14 regional Industry Councils located in all provinces and territories. In July of 2006, the Biofuels Opportunities for Producers Initiative (BOPI), a two-year, $20.0 million initiative under the ACAAF program was launched. It was designed to help farmers and rural communities conduct feasibility studies and develop sound, viable business proposals to create and expand biofuel production capacity involving significant ownership by agricultural producers. BOPI is delivered by the ACAAF regional Industry Councils.

Strategic Outcome: Innovation for Growth

Results Achieved:
In 2006- 07 the program approved a total of 333 new projects. Of these 333 new projects, the national component approved 31 new projects and the regional Industry Councils approved 302 new projects. Of the 302 new regional projects, 54 were multi-regional collective outcome projects. Under BOPI, In 2006-07, 86 projects received funding, with projects taking place in all provinces and territories, with the exception of Nunavut and British Columbia.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity:  Innovation and Renewal
Total Grants	27.3	30.3	40.0	44.3	44.3	(4.3)
Total Contributions	2.0	7.1	3.1	6.2	6.2	(3.2)
Total Transfer Payment Program	29.3	37.4	43.1	50.5	50.5	(7.4)
Comment(s) on Variance(s) Planned Spending does not take into account the funding transferred from other programs to support the ACAAF.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: N/A

 

($ millions)

Start Date: April 1, 2003
End Date:  March 31, 2008

Description: The purpose of the Science and Innovation Transfer Payments Program (TPP) is to accelerate innovation adoption in agriculture. Science and innovation are the cornerstone of efforts to make the Canadian agriculture and agri-food sector the world leader in food safety, innovation and environmentally responsible production and to support its future success and prosperity. Advances in agri-food science and technology are accelerating the development of a wide range of new industrial, health and nutritional products obtained from plants, animals and microorganisms.

Strategic Outcome: Innovation for Growth

Results Achieved:

• By the end of 2006-07, 23 Contribution Agreements were in place for the Broker and Agri-Innovation Programs with just over $3.0 million remaining in un-committed funds and a number of new projects coming forward to utilize the balance. A number of "lessons learned" have become visible that will be considered in future programming.
• By the end of 2006-07, 19 contracts were utilized to support the re-alignment public science resources in the agri-food sector, coordinate activities along the whole agri-food value chain, create an innovative agri-food business climate as well as to support the development of Broker and Agri-Innovation projects.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Innovation and Renewal
Total Grants	-	-	-	-	-	-
Total Contributions	-	3.1	51.6	57.2	54.0	(2.4)
Total Transfer Payment Program	-	3.1	51.6	57.2	54.0	(2.4)
Comment(s) on Variance(s): The variance between actual and planned spending in 2006-07 is due to the Planned Spending figure not including amounts reprofiled from previous years related to the Wedge and the original APF Science and Innovation funding. At the time, the projected amounts of the total Wedge transfer had been completely finalized. Additional amounts were identified later in the year when the actual Wedge transfer occurred.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: An audit of Science and Innovation is in progress.

 

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Renewal (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date: April 1, 2003
End Date: March 31, 2008

Description: Through Renewal programming, AAFC aims to provide producers with the tools and skills they need to make business decisions based on good knowledge. Renewal programming is built on the concept of continuous learning, and is designed to help producers assess their situations and plan for the future during critical transition times. Renewal programs enhance producers' access to information, advice and training, and enable them to pursue on- and off-farm income opportunities.

Strategic Outcome: Innovation for Growth

Results Achieved:
Canadian Agricultural Skills Service (CASS) - 6,570 applications were received in 2006-07. In 2006-07, more than 5,590 producers across Canada applied to participate in the Canadian Farm Business Advisory Service (CFBAS) and Planning and Assessment for Value-Added Entreprise (PAVE). Of those, 4,949 were for Farm Business Assessment (FBA), 596 were for SBPS, and 45 were for PAVE. To help producers acquire the skills they need to adapt to rapid changes in the industry, AAFC continued to work strategically with the agriculture and agri-food sector in 2006-07 to identify the new skills and learning opportunities needed in a knowledge-intensive economy.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Innovation and Renewal
Total Grants	-	-	-	-	-	-
Total Contributions	-	15.3	6.5	31.6	31.6	(25.1)
Total Transfer Payment Program	-	15.3	6.5	31.6	31.6	(25.1)
Comment(s) on Variance(s) APF Renewal receives the majority of its funding as Operating funding, and therefore receives a transfer of G&C authority from other APF Chapters during the Fiscal Year to meet its spending requirements.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: The delivery of CASS started across Canada at various times during 2005-06 No audits were done in 2006-07 since the program was relatively young. CASS Audits are planned for 2007-08. An audit of advisory services in Quebec is also planned for 2007-08.

 

($ millions)

Name of Transfer Payment Program: Prairie Grain Roads (PGRP) (Voted)

Start Date: Implemented in 2001-2002
End Date: 2005-2006 (as per the Treasury Board decision letter, all work must have been completed by the end of December 31, 2006)

Description: The purpose is an infrastructure program to improve prairie road used for grain transportation.

Strategic Outcome: Innovation for Growth

Results Achieved:
In the final year of the program no additional projects were approved. Projects approved in previous fiscal years were completed. The development of strategic grain haul corridors concluded with a total of 3,260 kms of roadways being upgraded and/or constructed over the life of the program. The improved roads and expanded grain haul corridor will increase truck haul capacity and grain road safety as well as provide Prairie road infrastructure that supports a diversified agricultural sector.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity:  Innovation and Renewal
Total Grants	-	-	-	-	-	-
Total Contributions	35.1	31.7	12.3	10.5	10.2	2.1
Total Transfer Payment Program	35.1	31.7	12.3	10.5	10.2	2.1
Comment(s) on Variance(s): Acutal Spending in 2006-07 was $2.1 million less than planned because the planned spending figure did not reflect the fact that some $2 million of work was able to be completed in 2005-06 versus 2006-07 as originally anticipated.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: An evaluation of the program was completed. The URL is as follows: http://www.agr.gc.ca/info/audit-exam/pdf/pgrp_prtgp_e.pdf

 

($ millions)

Name of Transfer Payment Program:  Contributions in support of Rural Canada and of development in the area of Co-operatives (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date:  April 1, 2003
End Date:  March 31, 2008

Description: The purpose of the programs are to carry out plans for Rural and Cooperative development. The programming covers the following three initiatives:

• the renewal and strengthening of the Canadian Rural Partnership which includes the transfer payments program the Models for Rural Development Program ($14.0 million from 2003-04 to 2007-08);
• the Rural Community Capacity Building Program ($4.5 million from 2003-04 to 2007-08); and
• the Co-operative Development Initiative (CDI) ($12.4 million from 2003-04 to 2007-08).

A $1.0 million, one-year addition to the CDI, called the Agricultural Co-operative Development Initiative, was announced in July 2006 and implemented through a contribution agreement with the Canadian Co-operative Association and the Conseil Canadien de la Coopération. The objective of this initiative is to support the development of farmer-led biofuel and value-added agricultural co-operatives through provision of technical assistance and building capacity to support co-op development in these areas.

Strategic Outcome: Innovation for Growth

Results Achieved:
Models for Rural Development - In 2006-07, twelve new models were selected for testing in twenty-four different rural communities.  Work is well under way in developing a research framework and a participatory evaluation approach for each model, which will serve as the basis for the body of knowledge regarding rural development. The Networking Initiative provided funding for over 179 projects to rural communities.

Cooperative Secretariat - In 2006-07, a network of 20 provincial, regional, and sectoral partners delivered the Advisory Services component across the country. During the year, Advisory Services assisted 38 new co-operatives to incorporate, and provided technical assistance to 114 existing co-operatives to cope with internal issues or support business expansion.  Under the Innovation and Research component, the Secretariat approved 29 new projects for a total of $1.4 million distributed amongst the six priorities of the program. As well, with the $1.0 million, one year addition to the CDI, a total of 27 biofuel and value-added co-op projects were funded and a national conference was held which brought together new and existing co-op to share knowledge and receive presentations by experts in these fields.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Rural and Cooperatives Secretariat
Total Grants	-	-	-	-	-	-
Total Contributions	-	8.6	10.9	9.1	9.1	1.8
Total Transfer Payment Program (Note 1)	-	8.6	10.9	9.1	9.1	1.8
Comment(s) on Variance(s)
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: Co-operatives Secretariat - A mid term evaluation of the Co-operative Development Initiative program was completed by an arms length entity. The evaluation confirmed that the program adheres to the approved objectives, is run efficiently, continues to be pertinent, and continues to generate impact with the target audience. http://www.agr.gc.ca/info/audit-exam/index_e.php?page=cdi_idc

Note 1: The Total Transfer Payment Program from 2004-05 to 2007-08 amounts to $29.6 million. In addition, $1.3 million was expended in 2003-04 bringing total transfer payments to $30.9 million. The annual payments may change, depending on the requirements of the program.

Note 2: Actual Spending in 2004-05 was $3.7 million. In that year, this program rolled up under a larger program and was not reported individually in the Public Accounts. For this reason, the Actual Spending in the above table, for that year, has been left blank.

 

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - International (Canadian Agriculture and Food International) (under the Agricultural Policy Framework - Non-Business Risk Management Terms and Conditions - Voted)

Start Date:  April 1, 2003
End Date:  March 31, 2008

Description:The Canadian Agriculture and Food International (CAFI) Program provides funding for industry initiatives designed to increase international sales of Canadian agriculture and food products, by building upon Canada's reputation as a provider of high-quality, safe and innovative agriculture, agri-food, beverage, and seafood products.

Strategic Outcome: Security of the Food System / Innovation for Growth

Results Achieved:
In 2006-07, the CAFI Program supported industry initiatives in targeted markets that aim to gain international recognition for Canadian agriculture, agri-food, beverage, and seafood products.

In 2006-07, through initiatives funded under the CAFI program:

• the Canadian Aquaculture Industry Alliance, despite a challenging year, took advantage of reduced competition from Chile in the U.S. market and increased the value of its exports by nearly 19.0 percent;
• Chilled pork exports grew by 24.0 percent in volume and experienced a 5.0 percent growth in value. Canadian pork exports continue to expand even in light of a number of challenges facing the sector such as labour shortages, and the high Canadian dollar;
• the Canadian Beef Export Federation produced a six-country (Japan, Taiwan, South Korea, China, Hong Kong and Mexico) comparative market intelligence report regarding activities such as promotion, awareness and knowledge of Canadian beef. Respondents were supportive of the federation's efforts to promote Canadian beef in their countries and offered constructive suggestions on how to improve their work;
• An important aspect of Pulse Canada's work is identifying buyer requirements and providing feedback to the Canadian scientific community on priority areas to meet market demands
• Pulse Canada updated 42 country profiles including exports, tariff rates, market share and consumption for their Market Intelligence Database, and developed a standard template for competitive intelligence-gathering in Turkey and Syria. The 2006 production trends of red lentil in those countries were gathered and communicated to exporters, growers and researchers to facilitate decision-making;
• canola oil sales to the U.S. increased by nearly 40.0 per cent from 616,600 tonnes in 2005-06 to 857,500 tonnes in 2006-07 partly due to efforts by the U.S. Canola Oil Promotion Program to raise awareness of the health and functional food value of canola oil. On October 6, 2007 the Canola Council was successful in achieving U.S. Food and Drug Administration (FDA) approval for a qualified health claim for canola oil's ability to reduce the risk of coronary heart disease due to its unsaturated fat content. It is only one of five favourable qualified health claims since the FDA began authorization of these claims in 1993; and
• the Wild Blueberry Association of North America achieved the results it set out to achieve in its 2007-08 strategic plan i.e., an increased awareness of the health benefits of wild blueberries, an increase in demand for fruit, particularly at the retail level, and increased sales and profits for Canadian blueberry producers and processors.

In 2006-07, the Program supported several international in-store marketing campaigns aimed at increasing international consumers' recognition of high quality Canadian products with the ultimate goal of increasing sales and exports. For example, the Canadian Association of Prawn Producers, a new CAFI recipient, conducted in-store pilot promotions in 45 hypermarkets and supermarkets across five target Chinese cities. These activities resulted in a dramatic spike of nearly 300 percent for in-store sales of wild cold-water shrimp.

The CAFI program is also committed to increasing international recognition of Canada's capabilities as a net exporter of agriculture, agri-food, and seafood products. To this end, the CAFI program supported numerous incoming missions of international delegations interested in learning about the superior capabilities of the Canadian industry first-hand. The Canadian Swine Exporters Association (CSEA) considers incoming missions a significant building block in their quest for increasing sales and developing new markets. In August 2006 two Chilean veterinary inspectors came to Canada on an incoming mission and inspected approximately 20 farms in four provinces. As a result of the inspections several hundred breeding swine were shipped to Chile.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Markets and International
Total Grants	-	-	-	-	-	-
Total Contributions	26.7	24.2	25.6	22.1	22.1	3.6
Total Transfer Payment Program	26.7	24.2	25.6	22.1	22.1	3.6
Comment(s) on Variance(s) CAFI Program support for company-specific initiatives was completely eliminated starting in 2006-07 as a result of an Expenditure Review Committee decision which caused uncertainty regarding demand for the remaining components of the Program
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: The draft report of the Evaluation of the International Component of the Agricultural Policy Framework concludes that industry associations benefit from CAFI Program funding and can demonstrate a positive impact on their members' export performance

 

($ millions)

Name of Transfer Payment Program: Plum Pox Eradication Program (PPEP) (Voted)

Start Date: September 2004
End Date: March 31, 2011

Description: The purpose of this seven-year program (2004-05 to 2010-11) is to eradicate the Plum Pox Virus (PPV) in Canada while ensuring the viability of the industry. This program is a follow-up of the expired three-year program (2001-02 to 2003-04) which showed that the eradication of PPV was possible.

Strategic Outcome: Innovation for Growth

Results Achieved:
2006-07 was year 3 of the 7-year program. Surveillance for the virus continued by sampling trees in the quarantine area.Infected tees and trees in infected blocks that met the removal threshold were removed. Producers were financially assisted for the loss of trees.

	2004-05	2005-06	2006-07
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance between Actual and Planned
Program Activity: Innovation and Renewal
Total Grants	-	-	-	-	-	-
Total Contributions	-	8.1	5.0	5.5	5.5	(0.5)
Total Transfer Payment Program	-	8.1	5.0	5.5	5.5	(0.5)
Comment(s) on Variance(s) Agricorp is the recipient of the Contributions and performs sampling activities for the PPEP. Because of a significant increase in efficiency from Agricorp in 2004-05, the unit cost of sampling diminished, creating a budget surplus in 2005-06, which was reallocated to other initiatives. This funding was then reallocated back to Plum Pox in 2006-07.
Significant Audit and Evaluation Findings and URL(s) to Last Audit and/or Evaluation: PPEP was not included on any annual internal audit risk-based plan being tabled at / approved by the Audit Committee. A recipient audit is planned for September 2007.

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