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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada


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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: AgriInsurance Program (Statutory)

Start Date: April 1, 2008
End Date: March 31, 2012

Description: The AgriInsurance program is one of four core pillars of the new business risk management (BRM) suite available to producers under Growing Forward.

AgriInsurance (formerly the Production Insurance program), will aim to reduce the financial impact on producers of production losses caused by uncontrollable natural perils.

Strategic Outcome: Security of the Food System

Results Achieved:
For 2008-09 producer participation in AgriInsurance had a targeted participation rate of 70% and for forage 50% as measured by a comparison of crops grown to crops insured.

For the main crop groups (excluding forage), Manitoba has the highest participation rate at 81% followed by Saskatchewan at 71.8%, and Quebec at 67%. The national average was 67% which is lower than the target but considered good based on the wide range of uptake across provinces.

Quebec has the highest participation rate for forage at 73%, while the other provinces range from 0% to 20% bringing the national average participation rate for the forage programs to 18%. Overall, numerous enhancements were made this year and will continue to be made to the AgriInsurance program including improvements for forage, horticulture, potato storage, new crops and available coverage levels.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - - - - - -
Total Contributions - - 388.7 548.3 548.3 (159.6)
Total Transfer Payment Program - - 388.7 548.3 548.3 (159.6)

Comment(s) on Variance(s):
The increase in federal contributions over the planned amount is a result of the substantial increase in premiums caused by the increase in commodity (i.e. grain) prices which are reflected in the insurable values.

Significant Evaluation Findings and URL to Last Evaluation:
No program evaluation was completed for AgriInsurance in 2008-09. There was a program evaluation completed in 2007-08 for Production Insurance (the program that preceded the AgriInsurance Program) and there were no significant findings.

Significant Audit Findings and URL to Last Audit:
There was no audit undertaken in 2008-09.

Note:
Production Insurance (the program that preceded the AgriInsurance Program) expenditures were $416.4 million in 2007-2008 and $343.1 million in 2006-2007.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: AgriInvest Program (Statutory)

Start Date: December 19, 2007
Agreements were signed with the provinces to implement the program starting in the 2007 program year.

End Date: March 31, 2012
AgriInvest is statutory and ongoing; however, the current policy and program authorities expire on this date.

Description: The AgriInvest program is one of four core pillars of the new business risk management (BRM) suite available to producers under Growing Forward.

AgriInvest allows producers to self-manage, through producer-government savings accounts, the first 15 percent of their margin losses for a production year and/or make investments to reduce on-farm risks or increase farm revenues. Under the program, annual producer deposits of up to 1.5 percent of their allowable net sales are matched by government deposits. Government deposits are cost-shared 60:40 by federal and provincial governments. In combination with the AgriStability program, AgriInvest is the successor to the Canadian Agricultural Income Stabilization (CAIS) program. AgriInvest replaces coverage for smaller income declines where AgriStability assists producers in managing larger losses.

AgriInvest provides producers with a secure, accessible, predictable and bankable source of income assistance to address small drops in farm income and manage on-farm risks.

Federal AgriInvest Website
AgriInvest in Quebec (La Financire agricole du Qubec)

Strategic Outcome: Security of the Food System

Results Achieved:
As of March 31, 2009, approximately $525 million has been made available to producers to seed their AgriInvest accounts through the federal Kickstart initiative. As of this date, approximately $291 million had been withdrawn and $234 million remained in accounts for producers to access when needed to address small income losses and to invest in their farming operations (see note below).

On March 31, 2009, federal program administrators began mailing out letters notifying participants of their benefits under 2007 AgriInvest, their total account balances and how to access the funding in their accounts.

Work continues toward full implementation of AgriInvest, when producer deposits and government contributions will be held by financial institutions for the 2009 program year.

A Performance Measurement Framework is in place for the new BRM suite, which includes Performance Indicators and Targets. Federal and provincial governments are now working to collect the information necessary for reporting and expect to be ready to report on the performance of the new suite of programs in early 2010.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Total Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - 165.6 - 175.7 175.7 (175.7)
Total Contributions - 1.7 159.5 17.7 17.7 141.8
Total Transfer Payment Program - 167.3 159.5 193.4 193.4 (33.9)

Comment(s) on Variance(s):
AgriInvest is demand-driven, rather than being funded from a set allocation for each fiscal year. Although the administrative costs of the program remain relatively constant, the variance of the year to year grant and contribution payments is directly related to both participation and commodity prices, as producer deposits and government contributions are based on a percentage of their income generated from the sale of commodities for a production year.

The variance between planned and actual spending for 2008-09 can be largely attributed to the recent increase in the value of grains and oilseeds which resulted in higher than anticipated allowable net sales.

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation of AgriInvest was not undertaken in 2008-09. It is currently expected that it will be evaluated in 2011-12 in accordance with AAFC's Five-Year Strategic Evaluation Plan (2009-10 to 2013-14), prepared by AAFC's Office of Audit and Evaluation. This program may be evaluated individually or together with a cluster of other Business Risk Management programs.

Significant Audit Findings and URL to Last Audit:
An internal audit of AgriInvest was not undertaken in 2008-09. AAFC's office of Audit and Evaluation performs an annual risk assessment exercise to determine its internal audit priorities and considers risks related to this program. This program is not currently included in AAFC's Three Year Risk-Based Audit Plan 2009-10 to 2011-12.

Note:

  1. The Canadian Agricultural Income Stabilization (CAIS) program was replaced by the AgriStability and AgriInvest programs as of April 1, 2008.
  2. The funds for the one-time federal AgriInvest Kickstart program, as mentioned in the Results Achieved section, are additional to and not included in federal funding numbers for AgriInvest as stated in table above. The Kickstart was a separate federal program intended to help producers transition to the new suite of BRM programs, promote the AgriInvest program and encourage the set up of AgriInvest accounts.

Expenditures for the AgriInvest Kickstart Program in 2007-2008 were:

  • Grants - $484.4 million
  • Contributions - $95.8 million

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Agricultural Disaster Relief Program (ADRP) / AgriRecovery (Statutory)

Start Date: December 6, 2007
Program authorities were obtained to implement the ADRP under the AgriRecovery disaster relief framework beginning with the 2007-08 fiscal year.

End Date: March 31, 2011

Description: The AgriRecovery framework is one of four core pillars of the new business risk management (BRM) suite available to producers under Growing Forward.

AgriRecovery facilitates the process for federal, provincial and territorial governments to provide short-term, timely assistance to help producers quickly re-establish their income stream and contain the long-term impacts after a small to mid-size disaster (disease, pest, weather-related). Programs under AgriRecovery are developed on a case-by-case basis after an assessment is completed and it is determined that there is need for assistance not covered by existing programs, such as AgriInvest, AgriStability and AgriInsurance.

Under AgriRecovery, the ADRP helps focus the coordination effort, providing fast-tracked programs of up to $20 million (up to $122.6 million per fiscal year) to quickly fund initiatives under AgriRecovery. Programming not eligible under the ADRP may still utilize the AgriRecovery framework and funding though a separate Treasury Board submission would be required.

Federal AgriRecovery Website

Strategic Outcome: Security of the Food System

Results Achieved:
The ADRP has demonstrated its flexibility and its ability to meet the objectives of providing timely assistance to minimize/contain the impacts of disasters on agricultural producers, address disaster-specific costs and losses not covered by other government programs and help farming operations return to business operations more quickly.

During the 2008-09 fiscal year, AgriRecovery/ADRP was utilized by federal and provincial governments to respond to six disasters, including the Duponchelia moth in Ontario, Golden Nematode in Alberta, Bovine Tuberculosis in British Columbia, drought in areas of Saskatchewan and Manitoba and flooding in Manitoba and Prince Edward Island.

A Performance Measurement Framework is in place for the new BRM suite, which includes Performance Indicators and Targets. Federal and provincial governments are now working to collect the information necessary for reporting and expect to be ready to report on the performance of the new suite of programs in early 2010.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - 0.1 - 1.0 1.0 (1.0)
Total Contributions - - 108.4 55.4 55.4 53.0
Total Transfer Payment Program - 0.1 108.4 56.3 56.3 52.1

Comment(s) on Variance(s):
Actual spending is approximately one half of the planned spending. This is due to the unpredictable nature of both the occurrence and scope of agricultural disasters.

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation of AgriRecovery (ADRP) was not undertaken in 2008-09. It is currently expected that it will be evaluated in 2010-11 in accordance with AAFC's Five-Year Strategic Evaluation Plan (2009-10 to 2013-14), prepared by AAFC's Office of Audit and Evaluation.

Significant Audit Findings and URL to Last Audit:
An internal audit of AgriRecovery was not undertaken in 2008-09. AAFC's office of Audit and Evaluation performs an annual risk assessment exercise to determine its internal audit priorities and considers risks related to this program. This program is not currently included in AAFC's Three Year Risk-Based Audit Plan 2009-10 to 2011-12.

Note:
The Plum Pox Eradication Program includes two components: survey/research component which accounts for $6.2 million annually; and the financial assistance component which is $2.4 million annually. The annual $2.4 million allocation is sourced from funding available for the AgriRecovery. This amount is reported as part of the costs for that program and is not included in the numbers above.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: AgriStability Program (Statutory)

Start Date: December 19, 2007
Agreements were signed with the provinces to implement the program starting in the 2007 program year.

End Date: March 31, 2012
AgriStability is statutory and ongoing; however, the current policy and program authorities expire on this date.

Description: The AgriStability program is one of four core pillars of the new business risk management (BRM) suite available to producers under Growing Forward.

AgriStability is a margin-based program that provides support when a producer experiences larger farm income losses, which are drops in their margin (eligible farm income, less eligible farm expenses) for the program year of more than 15 percent of the producer's average margin from previous years (i.e., their reference margin). Thus, a payment is triggered under the program when a producer's program year margin drops below 85 percent of their reference margin. AgriStability also includes coverage for negative margins, as well as mechanisms to advance a participant a portion of their expected payment during the year when a significant decline in income is expected (interim payments and Targeted Advance Payments). In combination with the AgriInvest program, it is the successor to the Canadian Agricultural Income Stabilization (CAIS) program. AgriInvest replaces coverage for smaller income declines where AgriStability assists producers in managing larger losses.

Federal AgriStability Website
AgriStability in Alberta (Agriculture Financial Services Corporation (AFSC))
AgriStability in Ontario (Agricorp)
AgriStability in Quebec (La Financire agricole du Qubec)
AgriStability on Prince Edward Island (PEI Agricultural Insurance Corporation)

Strategic Outcome: Security of the Food System

Results Achieved:
AgriStability payments are based on tax information for the program year. Although much of the processing of payments for the first year of AgriStability (2007 program year) was done in the 2008-09 fiscal year, processing will be finalized and performance data will be analyzed in the 2009-10 fiscal year. AAFC tracks, and makes public, applications processed and the percent of applications processed within established service standards.
This information is available at AgriStability Program Statistics Website.

As of March 29, 2009:

For the 2008 AgriStability Program:
45.0% of received and complete 2008 program year applications have been processed. The out going error rate is based on sampling, and as of March 31, 2009 all files for 2008 were being reviewed, so no accuracy rate had been established at that time.

National Delivery: 5,838 complete applications received. Total value of producer payments was $248,527,017 at the end of March 2009.

Federal Delivery: 926 complete applications received. Total value of producer payments was $53,021,050 at the end of March 2009.

For the 2007 AgriStability program:
83.8% of received and complete 2007 program year applications have been processed and the estimated out-going accuracy rate is 96.85% as of the end of March 2009.

National Delivery: 118,910 complete applications received. Total value of producer payments was $554,242,637 at the end of March 2009.

Federal Delivery: 42,883 complete applications received. Total value of producer payments was $165,011,400 at the end of March 2009.

Performance data collected and analyzed in 2008-09 related to the 2006 CAIS program. The program covered 52 percent of Canadian producers (including those in the supply-managed sectors), representing 66 percent of total market revenue. Although this is below the target of 75 percent, it still represents a significant portion of the industry. It is also anticipated that participation will improve under the new suite of BRM programs. 40 percent of participants received a payment under the 2006 CAIS program, which contributed to increasing the margins of participants from 60 percent of their reference margins to 86 percent. This was above the target of 80 percent.

With respect to the processing of 2007 and 2008 AgriStability payments: Where requested by provinces, the Targeted Advance Payments (TAPs) mechanism provided quicker access to these payments for hog and cattle producers ($98 million to 1,713 hog producers for 2007 and $167 million to 3,767 hog and cattle producers for 2008). Changes such as deeper negative margin coverage and an improved inventory valuation method are also expected to benefit those faced with declining incomes and consecutive years of loss. Details of the processing of payments under AgriStability will be provided in 2009-10.

A Performance Measurement Framework is in place for the new BRM suite, which includes Performance Indicators and Targets. Federal and provincial governments are now working to collect the information necessary for reporting and expect to be ready to report on the performance of the new suite of programs in early 2010.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - - - - - -
Total Contributions - 377.3 655.2 340.5 340.5 314.7
Total Transfer Payment Program - 377.3 655.2 340.5 340.5 314.7

Comment(s) on Variance(s):
AgriStability is demand-driven rather than being funded from a set allocation for each fiscal year. Although the administrative costs remain relatively constant, the variance of the year to year grant and contribution payments is directly related to participation and the needs of the agriculture industry. As such, in good years, the program will cost governments less, while in bad years (i.e., years with dropping commodity prices, disasters, etc.) the costs of the program will be higher.

The variance between planned and actual spending for 2008-09 can be largely attributed to the recent increase in the value of grains and oilseeds (G&O). Historically, G&O has accounted for a significant portion of coverage under CAIS and higher prices in the sector resulted in both reduced participation and a decrease in the number of payments being triggered as margins in the sector increased.

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation of AgriStability was not undertaken in 2008-09. It is currently expected that it will be evaluated in 2011-12 in accordance with AAFC's Five-Year Strategic Evaluation Plan (2009-10 to 2013-14), prepared by AAFC's Office of Audit and Evaluation. This program may be evaluated individually or together with a cluster of other Business Risk Management programs.

Significant Audit Findings and URL to Last Audit:
An internal audit of AgriStability was not undertaken in 2008-09. A Follow-Up Audit of the program is currently planned to begin in 2009-10 and will be conducted jointly with the Office of the Auditor General (OAG) as a follow-up to the OAG's Audit of the similar and now sunsetting Canadian Agricultural Income Stabilization (CAIS) Program (May 2007), as well as AAFC's Audit of CAIS, which was completed in June 2008.

Note:

  1. The Canadian Agricultural Income Stabilization (CAIS) program was replaced by the AgriStability and AgriInvest programs as of April 1, 2008.
  2. The actual spending amount of $377.3 million reported in 2007-08 pertains to the CAIS Program which preceded Agri-Stability (expenditures also shown below).
Related Program Expenditures:
Canadian Agricultural Income Stabilization Inventory Transition Initiative (CITI)
  2006-2007 2007-2008 2008-2009
CITI Grants: 431.0 (0.7) 8.4
CITI Contributions: 442.0 - 3.7
CITI Program Expenditures 873.0 (0.7) 12.1

CAIS Program Expenditures 933.3 377.3 -  

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Private Sector Risk Management Partnership (PSRMP) Program (Voted)

Start Date: January 6, 2009
End Date: March 31, 2012

Description: The PSRMP Program is designed to facilitate the participation of the private sector financial services industry (FSI) in addressing agricultural risks not presently covered by existing risk management tools. It provides financial and technical assistance to assist non-governmental agricultural organizations in the design, development, and delivery of a business case for the development of new business risk mangement products and services to assist producers in mitigating and responsing to their farm-level business risk management issues.

Strategic Outcome: Security of the Food System

Results Achieved:
In 2008-2009, PSRMP carried forward 12 projects from Agricultural Policy Framework (APF) (no new applications accepted after March 31, 2008) - all projects continued to meet objectives per signed Contribution Agreements.

Project Results Achieved:

  1. Canadian Sheep Federation launched national livestock insurance coverage for Bluetongue Disease in sheep (May 2008);
  2. Pulse Canada launched its western Feed Pea pricing tool (January 2009);
  3. Projects in negotiation with service providers (e.g., Alberta Beef Producers, Western Barley Growers Association, Nova Scotia Egg Producers);
  4. Ontario Livestock and Poultry Council project provided clients with policies, pricing and delivery options for Avian Influenza coverage.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - - - - - -
Total Contributions - - - 6.9 5.1 (5.1)
Total Transfer Payment Program - - - 6.9 5.1 (5.1)

Comment(s) on Variance(s):
At the time of preparation of the 2008-09 Report on Plans and Priorities, Treasury Board approval for this program had not yet been received and as such, planned spending is shown as zero.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation was conducted for PSRMP in 2008-09.

Significant Audit Findings and URL to Last Audit:
No audit was conducted for PSRMP in 2008-09.

Note:
Expenditures for the PSRMP Program (under APF) were $3.8 million in 2006-2007 and $4.1 million in 2007-2008.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Facilitating the Disposal of Specified Risk Materials (Voted)

Start Date: December 14, 2006
End Date: March 31, 2009 (extended to March 31, 2010)

Description: The federal government continues to provide BSE related assistance to Canada's cattle industry to support its efforts to recover from the impacts of Bovine Spongiform Encephalopathy (BSE) first discovered in Canada in May 2003. The Canadian Food Inspection Agency has implemented an enhanced feed ban, which is a significant step towards eliminating BSE from the national cattle herd.

This program will help the beef industry mitigate the cost of adapting to the July 12, 2007 enhancements to the feed ban enforced by the Canadian Food Inspection Agency. The enhancements regulate the disposal of specified risk material (SRM) and adequate disposal infrastructure is required.

Cost-shared federal-provincial programs are in place and offer $127.5 million in financial assistance to the industry (federal: $76.5 million; provincial: $51 million). The program is administered provincially and federal funds are used to support projects that have been approved through the provincial government process.

Strategic Outcome: Security of the Food System

Results Achieved:
As of March 2009, approximately 259 infrastructure project and research iniatives were approved for a total commitment of $105.1 million to help the beef industry adapt to the enhanced feed ban. Facilities such as federal and provincial abattoirs, SRM rendering plants, research institutions are participating in the program. Furthermore, various technologies are being explored to seek value added options for SRM.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - - - - - -
Total Contributions 4.4 22.8 38.5 21.0 19.2 19.3
Total Transfer Payment Program 4.4 22.8 38.5 21.0 19.2 19.3

Comment(s) on Variance(s):
The reason for the difference in planned spending versus actual spending is due to the reprofiling of $17.5 million from 2008-09 to 2009-10. The program was extended to support provincial initiatives that required a one-year extension in order to meet the objectives of the program.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluations were conducted in 2008-09 and none are planned.

Significant Audit Findings and URL to Last Audit:
No audits have been conducted in 2008-09. No audits are planned other than the standard end of program audit.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

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

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

Description: The Advance Payments Program (APP) guarantees cash advances to eligible producers (2006 amendments to AMPA increased the interest free portion of advances from $50,000 to $100,000, and the maximum advance from $250,000 to $400,000) to enable them to produce and market their agricultural products when market conditions are most ideal.

Amendments also now allow livestock producers the ability to receive an advance under AMPA. In February 2008, amendments to the AMPA allowed for emergency advances for livestock producers to address the needs of the livestock industry during unfavourable competitive circumstances. The amendments allowed for a reduced legislative requirements for emergency advances which are issued up to March 31, 2009.

Strategic Outcome: Security of the Food System

Results Achieved:
The AMPA was amended in 2006 to expand eligibility to the livestock sector, increase loan limits to $400,000, increase interest free loan limit to $100,000, and extend the production period to 18 months.

The AMPA was further amended in February 2008 to improve the delivery of the APP to the livestock sector. These amendments removed the requirement for livestock producers to secure advances with a Business Risk Management (BRM) program such as AgriStability. Advances are now secured using the animals as collateral. The amendments also expanded the circumstances under which an emergency APP advance can be issued to include situations of "severe economic hardship".

For the 2008-09 production period, 61 agreements were signed to deliver the APP with producer organizations and approximately $2.72 billion was issued in advances to approximately 40,539 producers. Of that, $312 million was for emergency advances to hogs and $143 million was for emergency advances to cattle.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - - - - - -
Total Contributions 10.6 44.1 137.5 37.0 37.0 100.5
Total Transfer Payment Program 10.6 44.1 137.5 37.0 37.0 100.5

Comment(s) on Variance(s):
The variance between actual and planned spending is due to many factors. The main cause for the variance is due to lower default payments than originally forecasted, as well as a lower interest rate than anticipated for the fiscal year.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation of the new APP program was completed during the 2008-09 fiscal year. As per AMPA legislation, a full evalution is to be completed every 5 years.

Significant Audit Findings and URL to Last Audit:
Formal audits of participating producer organizations in the APP are completed each fiscal year. The current target for formal audits is 6 producer organizations per fiscal year. Due to contract tendering restraints, AAFC did not get the audits completed in 2008-09, and will be completing a total of 12 formal audits of producer organizations during the 2009-10 campaign.

Note:
Enhanced Spring Credit Advance Program (ESCAP) Expenditures for 2007-2008 - $6.8 million
Spring Credit Advance Payment Program (SCAP) Expenditures for 2007-2008 - $8.9 million

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Cost of Production Benefit (Statutory)*

Start Date: April 1, 2008
End Date: March 31, 2010

Description: The one-time $400 million federal Cost of Production Benefit (COPB) was announced in March 2007 and was intended to partially compensate producers for the decline in incomes experienced over the previous four years due to production costs increasing at a faster rate than output prices.

Under the COPB, payments were made in two installments, with initial payments beginning in June 2007 based on 2.36 percent of participants' average allowable net sales for 2000 to 2004 and final payments beginning in December 2007 based on 0.36 percent of participants' average allowable net sales for 2000 to 2004. The program was delivered by the federal government in all provinces except Quebec.

Websites:
Federal Delivery
AgriInvest in Quebec (La Financire agricole du Qubec)

Strategic Outcome: Security of the Food System

Results Achieved:
With the COPB, AAFC met its objective of increasing participating producers' farm revenue for 2007 by 1 percent based on program and Statistics Canada data.

As of March 2009:

  • Number of Applications Received: 168,172
  • Number of Zero Payments: 3,898
  • Number of Payments: 164,241
  • Applications Remaining to be Processed: 33
  • Total Value of Payments: $359,173,361

The numbers above reflect only where Canada delivers payments (i.e., all provinces except Quebec). An additional $44.7 million was transferred to Quebec to allow the province to make similar payments to its producers.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Total Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - 353.5 - 8.7 8.7 (8.7)
Total Contributions - 44.7 - (0.0) (0.0) (0.0)
Total Transfer Payment Program - 398.3 - 8.7 8.7 (8.7)

Comment(s) on Variance(s):
As a result of an over-estimation of the final payment rate under the COPB, additional funding of approximately $9 million was required to fully meet AAFC's commitments under the program. This funding was sourced from within existing departmental levels.

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation of the Cost of Production Benefit program was not undertaken in 2008-09. There are currently no existing or planned evaluations for this program.

Significant Audit Findings and URL to Last Audit:
An internal audit of the Cost of Production Benefit was not undertaken in 2008-09. AAFC's office of Audit and Evaluation performs an annual risk assessment exercise to determine its internal audit priorities and considers risks related to this program. This program is not currently included in AAFC's Three Year Risk-Based Audit Plan for 2009-10 to 2011-12.

*For the related $100 million Cost of Production Element program, no payments were triggered in 2008-09 primarily due to a strong rise in crop receipts - mainly in the grains and oilseeds sector, for 2008 over 2007.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Control of Diseases in the Hog Industry- Circovirus Initiative (Voted) - Phase I - Circovirus Inoculation Strategy

Start Date: September 27, 2007
End Date: March 31, 2009 (extended to November 30, 2009)

Description: The Circovirus Inoculation Strategy (CIS) is an Agriculture and Agri-Food Canada (AAFC) initiative aimed at providing assistance in minimizing the overall potential effect of the Porcine Circovirus Associated Diseases (PCVAD) on the Canadian hog herd. AAFC is to provide financial assistance towards the identification and mitigation of the virus.

The overarching goal of the Initiative for the Control of Diseases in the Hog Industry, and the specific goal of its CIP element, is to improve the health of the Canadian hog herd, which will help sustain the long-term viability and profitability of the sector. Encouraging producers to increase disease detection and prevention activities will reduce the number of hog mortalities, and result in healthier Canadian hogs going to market.

The funds are provided to producers through the Circovirus Inoculation Program (CIP). The program is being delivered in all provinces directly to producers by the Prairie Farm Rehabilitation Administration (PFRA) of Agriculture and Agri-Food Canada. It consists of two elements.

Under the CIP's diagnostic testing element, eligible applicants are eligible for 50 percent in compensation up to $2,000 per fiscal year and $4,000 over the life of the program. Under the vaccination element, eligible applicants are eligible for 50 percent in compensation to a maximum of $1.00 per piglet and $7.00 per sow, gilt and boar. The maximum assistance over the life of the program is $500,000 per applicant.

Circovirus Inoculation Program Website

Strategic Outcome: Security of the Food System

Results Achieved:
To date, over 3,500 applications have been approved delivering over $30 million is assistance to Canadian hog producers to detect the disease and inoculate hogs. The program deadline has been extended to August 31, 2009 and applications are still being processed.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Total Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - - - - - -
Total Contributions - 14.3 10.8 10.8 10.8 -
Total Transfer Payment Program - 14.3 10.8 10.8 10.8 -

Comment(s) on Variance(s):
N/A

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation of this initiative was not undertaken in 2008-09. It is currently expected that it will be evaluated in 2010-11 in accordance with AAFC's Five-Year Strategic Evaluation Plan (2009-10 to 2013-14), prepared by AAFC's Office of Audit and Evaluation.

Significant Audit Findings and URL to Last Audit:
An internal audit of this initiative was not undertaken in 2008-09. AAFC's office of Audit and Evaluation performs an annual risk assessment exercise to determine its internal audit priorities and considers risks related to this program. This program is not currently included in AAFC's Three Year Risk-Based Audit Plan for 2009-10 to 2011-12.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Cull Breeding Swine Program (Statutory)

Start Date: March 6, 2008
End Date: March 31, 2012

Description: The purpose of the Cull Breeding Swine Program program is to assist in restructuring the Canadian swine industry by facilitating a reduction of the breeding herd. This $50 million initiative is a grant to the Canadian Pork Council (CPC). The objective is to reduce the national breeding herd size by up to 10% over and above normal annual reductions.

Strategic Outcome: Security of the Food System

Results Achieved:
Financial assistance is provided to the hog industry to assist producers that wish to downsize or exit the industry. $38 million has been transfered to the CPC in 2007-08 for reimbursement of slaughter and disposal costs and payment of $225 per breeding animal. The Program was amended allowing for the program start date to be reset to August 1, 2007 from November 1, 2007. As of June 10, 2009, 649 claims have been received for a total of 124,370 animals.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Total Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - 38.0 - 12.0 12.0 (12.0)
Total Contributions - - - - - -
Total Transfer Payment Program - 38.0 - 12.0 12.0 (12.0)

Comment(s) on Variance(s):
The approval of this grant was received after the preparation of the 2008-09 Report on Plans and Priorities, therefore it was not identified in the planned spending.

Significant Evaluation Findings and URL to Last Evaluation:
There are no existing or planned evaluations for this program at this time.

Significant Audit Findings and URL to Last Audit:
There was no audit completed in 2008-09. An audit of the 2008-09 fiscal year is targeted for the 4th quarter of 2009-10.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Environment (Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extended until March 31, 2009)

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.

Strategic Outcome: Health of the Environment

Results Achieved:

  • Environmental Farm Plans (EFP) - As of March 31, 2009 over 69,300 reviews of EFPs/Equivalent Agri-Environmental Plans (EAEPs) have been completed under the Agricultural Policy Framework (APF). This represents 30% of all farms across Canada. This is compared with over 56,700 reviews of EFPs/EAEPs completed under the APF as of March 31, 2008.
  • National Farm Stewardship Program (NFSP) - approximately 52,400 Best Management Practices (BMP) Projects completed as of March 31, 2009.
  • Greencover Canada - As of March 31, 2009 approximately 9,000 BMP projects, 572,393 acres converted to long-term perennial cover and 230 technical assistance projects were completed.
  • National Water Supply Expansion Program (NWSEP) - Approximately 8,000 projects completed.
  • Agri-Environmental Standards - Developed standards in the areas of water, biodiversity, pesticides and air.
  • Water Quality Surveillance Program (WQSP) - Conducted pilot studies at several test sites.
  • Information Gaps in Water Quality and Nutrients (GAPS) Study on Regulations - Funded 11 R&D projects.
  • Study on Regulations - Released Phase 1 report in February 2006.
  • National Agri-Environmental Health Analysis and Reporting Program (NAHARP) - Released agri-environmental indicator report.
  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Environment            
Total Grants - - - - - -
Total Contributions 97.0 198.8 45.6 93.3 78.2 (32.6)
Total Transfer Payment Program 97.0 198.8 45.6 93.3 78.2 (32.6)

Comment(s) on Variance(s):
Actual spending is higher than the planned due to delays in program implementation in previous years.

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation of the Environment Chapter was commenced in 2007-08 but still has not been completed.

Significant Audit Findings and URL to Last Audit:
The following OAG Managing Environmental Programming Audit was completed in 2008-09.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Food Safety and Food Quality (FSQ) (Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extended until March 31, 2009)

Description: The objective of the program is to assist industry in developing and implementing government-recognized food safety, traceability and quality process control 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;
  • increase industry's ability to meet or to exceed market requirements for food safety and food quality; and to
  • provide value-added opportunities through the adoption of food safety and food quality systems.

Strategic Outcome: Security of the Food System

Results Achieved:
One of the key food safety control tools is the On-Farm Food Safety Recognition (OFFSR) Program which is part of a Horizontal Initiative between AAFC, the lead partner, and the Canadian Food Inspection Agency (CFIA). This program recognizes food safety systems that have been developed and implemented by national producer organizations that are based on the Hazard Analysis Critical Control Points (HACCP) process, a preventive approach to food safety.

During this year, seven national producer organizations were participating in OFFSR program. Two organizations were issued letters from CFIA recognizing completion of a technical review stage of the OFFSR program. Since 2004, eighteen such letters have been issued by CFIA.

During this transitional year, the Canadian Food Safety and Quality program (CFSQP) was continued while new food safety programming under Growing Forward was designed.

CFSQP had three components:

  1. Systems Development
    AAFC contributed $3.8 million to 21 producer and agri-food organizations for systems development projects as follows: 32 Food Safety (HACCP based), 5 Traceability and 1 Food Quality.
     
  2. On-Farm Implementation
    For the On-Farm Implementation component, AAFC contributed $4.4 million to eight national producer organizations to implement on-farm food safety HACCP based systems for different commodity groups such as dairy, cattle, eggs, turkey and sheep, chickens and horticultural crops.
     
  3. Food Safety Initiative
    Seven provinces participating in the Food Safety Initiative received $8.1 million from AAFC to implement food safety practices in more than 330 non-federally registered food processing plants and conduct over 400 food safety seminars. In 2008-09, Quebec joined the initiative.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Food Safety & Food Quality            
Total Grants - - - - - -
Total Contributions 10.5 45.9 24.9 29.7 16.3 8.6
Total Transfer Payment Program 10.5 45.9 24.9 29.7 16.3 8.6

Comment(s) on Variance(s):
The CFSQP is a client driven program. CFSQP projects typically require 3 to 6 years to complete the development and implementation of food safety and traceability systems. The initial planned amount for 2008-09 was $24.9 million. A key challenge was forecasting the client's requirements because 2008-09 was a transitional year. Also some organizations were unable to complete their activities as originally planned due to the complexity of negotiating new agreements at the beginning of the transitional year. During this fiscal year $16.3 million was spent, $3.8 million on Systems Development projects, $4.4 million on On-Farm Implementation projects and $8.1 million on Food Safety Initiatives.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation was conducted in 2008-09.

Significant Audit Findings and URL to Last Audit:
The Canadian Food Safety & Quality Audit Plan provided for nine project-specific compliance audits. Three audits were completed and two are on-going into 2009-10. The findings of the three completed audits are not considered significant in nature and actions have been taken by the clients to implement the recommendations of the audit reports. There are currently no URLs for these three audits. The remaining audits were not conducted as the projects were assessed to be of low risk and therefore the audit expenditures were not warranted.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Advancing Canadian Agriculture and Agri-Food (ACAAF) (Voted) (Grants and Contributions to facilitate adaptation and rural development within the agriculture and agri-food sector)

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

Description: The purpose of the ACAAF program is to position Canada's agriculture and agri-food sector at the leading edge to seize new opportunities. It is based on a three-pillar approach, including:

  • Pillar I: Industry-Led Solutions to Emerging Issues;
  • Pillar II: Capturing Market Opportunities By Advancing Research Results;
  • Pillar III: Sharing Information to Advance the Sector.

The ACAAF Program was developed as the successor to the Canadian Adaptation and Rural Development (CARD) II Fund.

Strategic Outcome: Innovation for Growth

Results Achieved:
For this last year of ACAAF, 337 new projects were approved and funded. They consisted of 10 new national projects, 265 new Industry Council regional projects and 62 multi-regional collective outcome projects. Most projects were Pillar I initiatives.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants 44.3 37.7 30.3 33.0 31.9 (1.6)
Total Contributions 6.2 10.5 3.1 13.7 13.3 (10.2)
Total Transfer Payment Program 50.5 48.2 33.4 46.7 45.2 (11.8)

Comment(s) on Variance(s):
Planned spending for 2008-09 reflects only the funding presented in the 2008-09 Report on Plans and Priorities. The over expenditures for the last year of the program (2008-09) was due to underspending in the first few years; total program spending still falls within the total five year authority of the program.

Significant Evaluation Findings and URL to Last Evaluation:
The ACAAF Evaluation, which began during the 2007-08 fiscal year, assessed the relevance, success/progress and cost effectiveness of ACAAF in meeting its objectives. Conclusions were generally favorable and the recommendations following the evaluation have been incorporated in the planning of the successor program, Canadian Agricultural Adaptation Program (CAAP).

Significant Audit Findings and URL to Last Audit:
Initially, one National project recipient was to be selected for a compliance audit. However, due to time constraints and unforeseen delays in setting up the contract for the audit, it was decided to forego the compliance audit. Active monitoring of the National project files and financial audits ensured due diligence was met.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Agri-Opportunities Program (New Opportunities for Agriculture Initiatives) (Voted)

Start Date: December 14, 2006
End Date: March 31, 2011

Description: The Agri-Opportunities program is a $134 million program, ending March 2011, that focuses on new innovative value-added agricultural, agri-food and agri-based products, services or processes that are currently not commercially produced or available in Canada and that are ready to be introduced into the marketplace. The program provides repayable contributions for commercialization projects that are expected to increase market opportunities for the Canadian agricultural industry across the value chain and to increase demand for primary agricultural products.

Strategic Outcome: Innovation for Growth

Results Achieved:
The Agri-Opportunities program has signed agreements to fund 13 innovative commercialization projects for a total of $31,759,712 helping to accelerate the pace of innovation in Canada.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants - - - - - -
Total Contributions - 2.1 40.8 12.3 9.0 31.9
Total Transfer Payment Program - 2.1 40.8 12.3 9.0 31.9

Comment(s) on Variance(s):
Actual expenditures were less than planned primarily due to the global economic crisis at that time, which was having a serious impact on the Canadian investment climate, particularly the availability of debt and equity financing to companies.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation was conducted in 2008-09. An evaluation is planned for 2009-10.

Significant Audit Findings and URL to Last Audit:
There was no audit conducted this year. An audit is planned for 2010-11.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Agricultural Bioproducts Innovation Program (Voted)

Start Date: December 14, 2006
End Date: March 31, 2011

Description: The Agricultural Bioproducts Innovation Program (ABIP) is an initiative designed to strengthen the capacity of Canadian science providers and industry through the creation of networks for research, technology development, and commercialization of agricultural bioproducts and bioprocesses.

Strategic Outcome: Innovation for Growth

Results Achieved:
Nine Networks have been approved for funding under the Agricultural Bioproducts Innovation Program (ABIP). Currently the program is fully subscribed and no new proposals are being accepted. In support of the work to be undertaken by the approved networks, Agriculture and Agri-Food Canada has signed nine (9) Contribution Agreements with recipients external to the federal government. In addition, eight (8) Agency Agreements between Recipients and the Recipient Agent, and eight (8) Letters of Understanding (LOUs) with other government departments and agencies have been executed.

AAFC will report on the activities and the execution of the Network Agreements negotiated to deal with governance, intellectual properties and related issues with the parties involved in the nine approved ABIP Networks in the next FY 2009-10.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants - - - - - -
Total Contributions - 0.6 20.7 7.3 7.3 13.4
Total Transfer Payment Program - 0.6 20.7 7.3 7.3 13.4

Comment(s) on Variance(s):
The variance of $13.4 million in planned versus actual spending is due to the delay in the development and signing of Network Agreements. This new program is utilizing novel structures and requires appropriate lead time for the development of communication and administration tools and access to resources to ensure that internal and external stakeholders are provided clear, consistent, timely and accurate messages on all aspects of program requirements.

Significant Evaluation Findings and URL to Last Evaluation:
There was no evaluation undertaken in 2008-09.

Significant Audit Findings and URL to Last Audit:
Recipient Auditing: The ABIP Secretariat has adopted a risk-based approach to the selection of contributions for audit. The audit risk of each contribution agreement will be assessed annually. The intent is to audit contributions where the ABIP Secretariat has identified some specific concerns.
There were no audits conducted in 2008-09. The intent for fiscal year 2009-10 is to complete two recipient audits.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

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

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

Description: The Canadian Farm Family Options program is a 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 for 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 by November 20, 2008.

Strategic Outcome: Innovation for Growth

Results Achieved:
The Canadian Farm Family Options Program paid more than $145 million to over 15,000 farm families in its first year (2005 applicants) and more than $76 million to over 9,300 farm families in its second year (2006 applicants). Farmers qualified for Options if their total family income, as submitted to the Canada Revenue Agency (CRA) in their tax return, fell below $25,000 (below $15,000 for individual farmers). Payments were calculated to bring an individual farmer's total income up to the $15,000 threshold, and a farm family's total income up to the $25,000 threshold.

In total, participants received approximately $221 million, resulting in a total average payment of $17,000. 80.7% or 12,280 of Options participants completed their Renewal requirement (Farm Business Assessment, skills development or equivalent). Of these, 1,898 participated in more than one activity per application, with a total of 14,178 program activities resulting from the Options program. Final payment cheques were mailed to eligible applicants in early August, 2008 and the Options program reached its end on November 20, 2008.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants 145.0 76.0 - - (1.0) 1.0
Total Contributions - 11.2 16.0 14.2 10.3 5.7
Total Transfer Payment Program 145.0 87.2 16.0 14.2 9.3 6.7

Comment(s) on Variance(s):
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 reallocate the remaining funding to other initiatives. Actual spending was lower than planned in 2008-09 as funding for year two was only made available to qualified applicants from year one.

Significant Evaluation Findings and URL to Last Evaluation:
There were no previous evaluations and none conducted in 2008-09. An evaluation of the Options program is to be completed by March 31, 2010.

Significant Audit Findings and URL to Last Audit:
There were no previous audits and none conducted in 2008-09. An audit of the Options program is to be completed by March 31, 2010.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Canadian Cattlemen's Association Legacy Fund (Statutory)

Start Date: June 27, 2005
End Date: March 31, 2015

Description: The purpose of the Canadian Cattlemen's Association Legacy Fund is to support to the Canadian beef sector to develop markets for beef cattle, beef cattle genetics, beef and beef products in a post-BSE environment. Grants totalling $50 million over 10 years will be provided.

Strategic Outcome: Security of the Food System

Results Achieved:
Industry is struggling to manage the ongoing impact of BSE and simultaneously regain its competive position given the rapid appreciation in the value of the Canadian dollar, increased feed prices and underutilization of packing capacity. Notwithstanding these challenges, Legacy Funds enabled the Beef Information Centre, Canada Beef Export Federation and Canadian Beef Breeds Council to undertake significant market development programs focussed on key Canadian, US and Asian beef markets. In 2008, beef exports totalled $1.35 billion, up from $1.24 billion in 2007. Sales of beef cattle genetics in 2008 were $26.65 million compared to $14.32 million in 2007.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Total Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants 4.9 7.0 5.0 7.0 7.0 (2.0)
Total Contributions - - - - - -
Total Transfer Payment Program 4.9 7.0 5.0 7.0 7.0 (2.0)

Comment(s) on Variance(s):
In developing the spending profile for the Legacy Fund, annual expenditures were estimated by spreading the available funding over the ten year time frame in equal annual increments. However, funds are allocated based on the requirements outlined in an annual business plan which reflects the priorities of the three marketing groups. As such the funds needed in any particular year will vary depending on the marketing program developed in that year. These forecasts are made even more difficult by challenges in predicting when a market might actually open to imports of Candian beef.

Significant Evaluation Findings and URL to Last Evaluation:
The contract with CCA requires a mid-term and a final evaluation. A third-party review of the grant and the results achieved to date was conducted for the period September 29, 2005 to June 30, 2008. The review determined that the objectives of the grant have been met and the funds were administered in an efficient and effective manner in accordance with the funding agreement.

Significant Audit Findings and URL to Last Audit:
No audits were completed in 2008-09 and none are planned at this time.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: EcoAgriculture Biofuels Capital Initiative (Voted)

Start Date: March 29, 2007
End Date: March 31, 2011

Description: The ecoAgriculture Biofuels Capital initiative (ecoABC) is a four-year, $200 million federal initiative that provides conditionally repayable contributions towards the construction or expansion of biofuel facilities that have equity investments from farmers and use agricultural feedstock. The initiative, which is part of the federal renewable fuels strategy, is providing an opportunity for farmers to benefit from the emerging renewable fuels industry while helping the government to achieve its targets for renewable fuel content in gasoline and diesel fuel.

Strategic Outcome: Innovation for Growth

Results Achieved:
EcoABC has six signed contribution agreements totalling $44.5 million. These projects have encouraged private sector investment of $42.0 million by 502 agricultural producers, helping to broaden their economic base beyond the farm gate.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants - - - - - -
Total Contributions - 0.6 75.0 18.1 17.4 57.6
Total Transfer Payment Program - 0.6 75.0 18.1 17.4 57.6

Comment(s) on Variance(s):
Actual expenditures were less than planned primarily due to the global economic crisis at that time, which was having a serious impact on the Canadian investment climate, particularly the availability of debt and equity financing to emerging industries such as biofuels. Companies were finding it very difficult to secure the financing needed to move forward with their planned biofuels facilities. This in turn slowed the uptake for the EcoABC program which was contingent upon projects being fully financed prior to federal funding approval.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation was completed in 2008-09. An evaluation is planned for 2009-10.

Significant Audit Findings and URL to Last Audit:
No audit was undertaken in 2008-09. An audit is planned for 2011-12.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

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

Start Date: April 19, 2004
End Date: March 31, 2011

Description: The Plum Pox Eradication Program (PPEP) provides funding for activities aimed at eradicating the Plum Pox Virus (PPV) from the Niagara region of Canada while ensuring the viability of the tender fruit industry (peaches, plums, apricots, nectarines). The bulk of the funding supports an extensive survey of tender fruit orchards, research and financial assistance for tender fruit producers whose orchards are affected by the PPV. The program also includes an asset loss compensation component. This seven-year program (2004-05 to 2010-11) is a follow-up of the original three-year program (2001-02 to 2003-04).

The program is jointly funded by Agriculture and Agri-Food Canada (AAFC), the Canadian Food Inspection Agency (CFIA) and the Ontario Ministry of Agriculture Food and Rural Affairs (OMAFRA).

Canadian Food Inspection Agency Website: Plum Pox Virus

Strategic Outcome: Security of the Food System

Results Achieved:
2008-09 was year five of the seven-year program. Surveillance for the virus continued by the sampling of trees in the quarantine area. Infected trees and trees in infected blocks that met the removal threshold were removed. In 2008, the Plum Pox Virus infection rate has fallen for the third consecutive year. The rate fell from 0.00046% in 2007 to 0.000173% in 2008, a significant decrease.


  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Total Authorities Actual Spending Variance between Actual and Planned
Program Activity: Business Risk Management            
Total Grants - - - - - -
Total Contributions - 6.9 8.6 8.6 8.6 -
Total Business Risk Management - 6.9 8.6 8.6 8.6 -
Program Activity: Innovation and Renewal            
Total Grants - - - - - -
Total Contributions 5.5 - - - - -
Total Innovation and Renewal 5.5 - - - - -
Total Transfer Payment Program 5.5 6.9 8.6 8.6 8.6 -

Comment(s) on Variance(s):
N/A

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation of the Plum Pox Eradication Program was not undertaken in 2008-09. It is currently expected that it will be evaluated in 2010-11 in accordance with AAFC's Five-Year Strategic Evaluation Plan (2009-10 to 2013-14), prepared by AAFC's Office of Audit and Evaluation.

Significant Audit Findings and URL to Last Audit:
An internal audit of the Plum Pox Eradication Program was not undertaken in 2008-09. AAFC's office of Audit and Evaluation performs an annual risk assessment exercise to determine its internal audit priorities and considers risks related to this program. This program is not currently included in AAFC's Three Year Risk-Based Audit Plan for 2009-10 to 2011-12.

Note:
The PPEP includes two components: the survey/research component which accounts for $6.2 million annually, and the financial assistance component which is $2.4 million annually. The annual $2.4 million allocation is sourced from funding available for the AgriRecovery/Agricultural Disaster Relief Program (ADRP).

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Renewal (Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extended until March 31, 2009)

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 enables them to pursue on- and off-farm income opportunities.

Strategic Outcome: Innovation for Growth

Results Achieved:
Canadian Agricultural Skills Service (CASS) - 697 applications were received in 2008-09.
In 2008-09, more than 2,384 producers across Canada applied to participate in the Canadian Farm Business Advisory Service (CFBAS) and Planning and Assessment for Value-Added Enterprise (PAVE): 1,835 for Farm Business Assessment (FBA), 510 for Specialized Business Planning Services (SBPS), and 39 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 2008-09 to identify the new skills and learning opportunities needed in a knowledge-intensive economy.

Funding to National Organizations:

  • The Canadian Farm Business Management Council (CFBMC) developed and distributed advanced farm management information and tools for established and beginning farmers;
  • the Canadian 4-H Council (4-H) developed a strong base of skills and knowledge for rural youth, many of whom will become the next generation of Canadian farmers;
  • the Canadian Agricultural Safety Association (CASA) improved the health and safety on Canadian farms;
  • the Canadian Young Farmers' Forum (CYFF) facilitated the exchange of information and best farming practices amongst young and beginning farmers; and
  • the Canadian Outstanding Young Farmers Program (COYFP) recognized young farmers that exemplify excellence in their profession.

In a 2007 Client Impact Survey with 703 participants of Renewal programs, results showed that program participation was a vehicle for change. Respondents reported that the programs strengthened their understanding of their business; reduced stress; improved communications with family, partners and other business partners; enabled participants to consider their original plans and make changes; had a direct impact on their incomes; and contributed toward the achievement of their goals.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants - - - - - -
Total Contributions 31.6 55.0 3.0 32.5 25.9 (22.9)
Total Transfer Payment Program 31.6 55.0 3.0 32.5 25.9 (22.9)

Comment(s) on Variance(s):
Actual spending was higher than planned since planned spending only included approved amounts for the 2008-09 Main Estimates. Additional funding was approved later in the year.

Significant Evaluation Findings and URL to Last Evaluation:
An evaluation of Renewal programs was conducted in 2008-09 but has not been finalized yet. An evaluation of funding to national organizations will be conducted in 2009-10.

Significant Audit Findings and URL to Last Audit:
Recipient compliance audits have been undertaken in 2008-09 for the following: The delivery of the Canadian Agricultural Skills Service under the Canada-Manitoba Implementation Agreement and under the Canada-Ontario Implementation Agreement, the Managing Risk Education Program under the Canada Implementation Agreement and the Contribution Agreement for the Agricultural Management Institute between Canada, Ontario and the Agricultural Adaptation Council. Final reports are pending.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions for Agriculture and Agri-food Sector Assistance - Science and Innovation (Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extended until March 31, 2009)

Description: The purpose of the Science and Innovation Transfer Payments Program 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:
The Broker and Agri-Innovation program successfully concluded March 31, 2009 exceeding the target of 10 collaboration partnerships.

Overall 18 Contribution Agreements were signed during 2008-09 in support of establishing agri-innovations partnerships.

The Broker portion of the program funded 15 projects that supported the development of 11 innovation value chains and the creation of 14 strategies.

The Agri-Innovation portion of the program advanced four strategies that were created with support from the Broker portion of the program.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants - - - - - -
Total Contributions 54.0 73.5 6.9 10.8 9.2 (2.3)
Total Transfer Payment Program 54.0 73.5 6.9 10.8 9.2 (2.3)

Comment(s) on Variance(s):
The variance between the planned and actual spending is due to an increase in spending of $2.3 million required for additional project activities for recruitment, equipment, and renovations for the Vineland Connections Project at the Vineland Innovation Research Centre.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation of the Program was carried out in 2008-09. A Chapter evaluation, performed in 2007-08, included the Science and Innovation program. Each recipient submitted a final report which was evaluated before final payment was released.

Significant Audit Findings and URL to Last Audit:
A compliance audit for one project was carried out in the 2008-09 fiscal year. The sampled invoices and claims did not show any significant discrepancies during the compliance audit.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Orchards & Vineyards Transition Program (Voted)

Start Date: October 25, 2007
End Date: March 31, 2011

Description: This program funds plant removal which is the very first step towards replanting orchards and vineyards or planting other crops to help producers compete in the changing global markets. The program also responds to the market pressure by funding strategic planning activities which will increase the industry's knowledge and help the industry make decisions. The program operates in British Columbia, Ontario, Quebec, New Brunswick and Nova Scotia.

Strategic Outcome: Innovation for Growth

Results Achieved:
Plant Removal: About 1250 applications were approved to remove about 10,180 acres of old tree fruit and grapes from orchards and vineyards in British Columbia, Ontario, Quebec, New Brunswick and Nova Scotia.

Strategic Planning: $1,736,500 worth of strategic plan projects have been approved across Canada. Industry associations are currently developing the approved strategic plan projects.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants - - - - - -
Total Contributions - 0.7 15.2 13.4 11.4 3.8
Total Transfer Payment Program - 0.7 15.2 13.4 11.4 3.8

Comment(s) on Variance(s):
While the program uptake met or exceeded forecast demand in most provinces (i.e. British Columbia, Ontario, New Brunswick and Nova Scotia), the uptake in Quebec was much lower than expected. This accounts for the difference between planned and actual spending.

Significant Evaluation Findings and URL to Last Evaluation:
There was no evaluation conducted in 2008-09. A summative evaluation will be conducted during fiscal year 2010-11.

Significant Audit Findings and URL to Last Audit:
No audit was completed in 2008-09. Any recipient audits will be determined based on the audit work plan. The need for an internal audit will be determined by the Office of Audit and Evaluation.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Tobacco Transition Program (TTP) (Voted)

Start Date: February 12, 2009
End Date: March 31, 2010

Description: The Program facilitated the transition of Ontario flue-cured tobacco quota holders wishing to exit the industry.

Strategic Outcome: Innovation for Growth

Results Achieved:
The Tobacco Transition Program, (TTP) is now completed. The Ontario Flue-Cured Tobacco Growers' Marketing Board (the delivery agent) replaced the production controls with a licensing system and 1,050 quota holders applied to the TTP. The total program cost was $284,879,885 to retire 99.8% of the quota (271,134,732 pounds of Basic Production Quota) and pay for the administrative costs incurred by the delivery agent.
As of May 1, 2009, all payments had been received by TTP participants.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Innovation and Renewal            
Total Grants - - - - - -
Total Contributions - - - 287.9 284.9 (284.9)
Total Transfer Payment Program - - - 287.9 284.9 (284.9)

Comment(s) on Variance(s):
At the time of preparation of the 2008-09 Report on Plans and Priorities, Treasury Board approval for this program had not yet been received and as such planned spending is shown as zero.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation was conducted in 2008-09. A summative evaluation will be conducted during fiscal year 2011-12.

Significant Audit Findings and URL to Last Audit:
A program implementation audit was conducted in March-April 2009 to ensure that the delivery agent had put in place all the necessary processes to implement the program. The implementation audit found that the delivery agent put in place the necessary processes to ensure that the program would be delivered as per the programs guidelines and that the intent of the program would be upheld. Recipient audits are planned during fiscal year 2009-10. The need for an internal audit will be determined by the Office of Audit and Evaluation.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Contributions in support of Rural Canada and of development in the area of Co-operatives (Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extended until March 31, 2009)

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 "Models for Rural Development", and "The Partnership Initiative" (formerly the Networking Initiative), both of which focus on approaches to rural development, and building partnerships;
  • the Rural Community Capacity Building Program, which places a focus on tools, services, knowledge, and processes; and
  • the Co-operatives Development Initiative (CDI) ($12.4 million from 2003-04 to 2007-08). In 2006, additional funding was provided to CDI to provide support for co-op development projects to enable farmers to capture new biofuels and other value-added opportunities - Ag-CDI funding (G&Cs): $3.75 million for 2006-07 to 2008-09.

Strategic Outcome: Innovation for Growth

Results Achieved:
Rural Development
Funding ($226,000) was provided to complete projects under the Models Program. Fifty projects were funded as part of the Rural Partnership Development Program for a total value of $1.575 million. Project final reports are due by June 30, 2009. Partnership projects brought together an average of 6 partners per project.

Total Contributions under Rural Development: $1.8 million.

Co-operative Development
Under CDI, 35 funded projects were undertaken and completed. There was on-going management of 2 existing contribution agreements for CDI-Advisory Services and Ag-CDI. Under Ag-CDI, 45 value-added agricultural co-operatives were supported.

Total Contributions under Co-operative Development: $4.5 million.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Rural and Cooperatives Secretariat            
Total Grants - - - - - -
Total Contributions 9.1 10.6 5.9 7.4 6.3 (0.4)
Total Transfer Payment Program 9.1 10.6 5.9 7.4 6.3 (0.4)

Comment(s) on Variance(s):
Planned spending only included amounts approved at the time that the 2008-09 Report on Plans and Priorities was prepared. Additional funding for the program was approved later in the year.

Significant Evaluation Findings and URL to Last Evaluation:
In October 2008, the Office of Audit and Evaluation completed an Assessment of the Canadian Rural Partnership Program (CRP). This assessment relied on a new Value-for-Money tool created by Treasury Board of Canada Secretariat.

Key findings were:

  • CRP has demonstrated good value-for-money in terms of program relevance and performance.
  • CRP is relevant and consistent with government's priority of building strong communities.

Report on the Mid-term Evaluation of the Co-operative Development Initiative
Assessment of the Canadian Rural Partnerships Program

Significant Audit Findings and URL to Last Audit:
No audits were undertaken in 2008-09.

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Details on Transfer Payment Programs for Agriculture and Agri-Food Canada

($ millions)

Name of Transfer Payment Program: Agriculture and Agri-food Sector Assistance - International (Canadian Agriculture and Food International Program) (Voted)

Start Date: April 1, 2003
End Date: March 31, 2008 (extended until March 31, 2009)

Description: The purpose of the Canadian Agriculture and Food international (CAFI) program is to provide support to industry to gain and expand international recognition for Canada and enhance market opportunities for Canadian agriculture and food products. The program replaces and improves on AAFC's Agri-Food Trade Program (AFTP).

Strategic Outcome: Security of the Food System

Results Achieved:
In 2008-09, the Canadian Agriculture and Food international (CAFI) program, continued to fund industry activities to improve international markets development and gain recognition for Canada as a leader in supplying high-quality, safe and innovative agriculture, agri-food, beverage and seafood products. The CAFI program provided funding to 49 industry associations - over $22.8 million in support of industry activities including $17.5 million for long-term international strategies and $5.3 million for projects.

In 2008-09, some results achieved included:
The Canadian Aquaculture Industry Alliance developed a booklet "Top 10 Things Consumers Don't Know About Aquaculture" to showcase how the BC industry focuses on environmental issues such as sustainability and protection of wild salmon. To ensure that the booklet was well received by target audiences, focus groups were conducted to develop and fine tune the copy and overall messaging. The booklet was mailed to buyers, distributors, influencers, and Trade Commissioners in key US markets for BC farmed salmon. The booklet was also distributed at the San Francisco Fancy Food Show in January 2009.

The Canadian Bison Association advertised in the Fall 2007 edition of Flavourful, a magazine which highlights Canadian foods for international tables. 7,000 copies of the magazine were printed and circulated to the Canadian Embassies and trade posts based on language requirements. It was printed in English and French, English and Spanish, English and Japanese, and English and Mandarin. 1000 copies were circulated to the Hospitality, Restaurant, and Hotel Associations. Others were circulated to Food writers. Copies of the magazine were also used by marketers and the association to promote bison products in response to inquiries about bison.

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.

  2006-2007 2007-2008 2008-2009
  Actual Spending Actual Spending Planned Spending Authorities Actual Spending Variance between Actual and Planned
Program Activity: Markets and International            
Total Grants - - - - - -
Total Contributions 22.1 17.9 24.8 22.8 22.3 2.5
Total Transfer Payment Program 22.1 17.9 24.8 22.8 22.3 2.5

Comment(s) on Variance(s):
Actual spending was less than planned spending due to the fact that some associations were unable to spend all of their approved funding. All of CAFI's recipients are associations that are undertaking activities in foreign markets and due to the global downturn, some associations were not able to undertake and/or complete some of their activities.

Significant Evaluation Findings and URL to Last Evaluation:
No evaluation of the CAFI Program was done in 2008-09.

Significant Audit Findings and URL to Last Audit:
No audits were completed in 2008-09.