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Minister's Message

The Honourable Gerry Ritz

The Canadian agriculture industry plays a major role in our economy, generating more than 2 million jobs and over eight per cent of our Gross Domestic Product.

This economic powerhouse has helped drive Canada's economic recovery over the past year, positioning our farmers and food processors to capture new opportunities in global markets.

Our Government's strategy for this great sector is clear: the marketplace is the most sustainable way to deliver bigger profits back to the farm gate and throughout the value chain. That's why we continue to pursue an aggressive international trade agenda that has delivered real results for our industry, making sure that our farmers and processors can market their top-quality products for the top dollar they deserve.

In 2010, our agriculture, agri-food, and seafood product exports grew to more than $39 billion, the second highest level in history, putting us in the top five global agri-food exporters. The Market Access Secretariat, which we created, was a big part of that success, and we're strengthening it to help our exporters secure and grow their sales.

Side by side with industry, we have embarked on trade missions to more than 20 different markets around the world, growing our sales with key customers, including Mexico, China, Hong Kong, Russia and South Korea. While defending Canada's system of supply management and ensuring our trading partners play by science-based rules, we are aggressively pursuing bilateral and multilateral trade arrangements with major markets including the European Union and India.

Innovation is as old as agriculture and continues to drive our industry's competitiveness. Working with industry we're making strategic investments in result-based science and innovation that are leveraging investments from industry. We will make strategic decisions to make sure we get the best bang for our research buck, in support of Canadian farmers and the entire sector.

Challenges will always be part of agriculture. Last year, our business risk management programs helped farmers weather financial pressures from markets, flooding and drought, with over $2 billion in support provided by federal, provincial and territorial governments. Canada's Economic Action Plan and our five-year, federal-provincial-territorial agriculture policy framework, Growing Forward, are delivering flexible, proactive programs that are helping farmers tackle real issues in the agricultural sector, strengthen the environment and food safety from gate to plate, and deliver innovative, tangible results that will pay dividends in the future.

Long-term, the outlook for Canada's agriculture sector is bright. Farming has become increasingly complex and competitive on the world stage. We're seeing a growing demand for healthy, high-quality food and we know Canadian farmers can deliver. Our natural advantages of land, water, clean environment, skilled workforce, and strong policies and regulations, position us well for future growth and prosperity.

We are now sitting down with industry and provincial-territorial governments to shape a new agricultural framework for the future that will help us move to a more modern, innovative, competitive, and sustainable sector that will define our success over the next decade.

I know I can rely on the continuing collaborative efforts of my entire Portfolio team to support me in tackling the agricultural sector's challenges, while helping the sector to capitalize on its tremendous potential for growth and future profitability.

The Honourable Gerry Ritz, P.C., M.P.,
Minister of Agriculture and Agri-Food and
Minister for the Canadian Wheat Board



Section I: Organizational Overview

Raison d’être

The Department of Agriculture and Agri-Food Canada (AAFC) was created in 1868 – one year after Confederation – because of the importance of agriculture to the economic, social and cultural development of Canada. Today, the Department helps ensure the agriculture, agri-food and agri-based products industries can compete in domestic and international markets, deriving economic returns to the sector and the Canadian economy as a whole. Through its work, the Department strives to help the sector maximize its long-term profitability and competitiveness, while respecting the environment and the safety and security of Canada’s food supply.

Responsibilities

AAFC provides information, research and technology, and policies and programs to help Canada's agriculture, agri-food and agri-based products sector increase its environmental sustainability, compete in markets at home and abroad, manage risk, and embrace innovation. The activities of the Department extend from the farmer to the consumer, from the farm to global markets, through all phases of producing, processing and marketing of agriculture and agri-food products. In this regard, and in recognition that agriculture is a shared jurisdiction, AAFC works closely with provincial and territorial governments.

AAFC's mandate is based upon the Department of Agriculture and Agri-Food Act. The Minister is also responsible for the administration of several other Acts, such as the Canadian Agricultural Loans Act. The Department is responsible for ensuring collaboration among the organizations within the Agriculture and Agri-Food Portfolio; this means coherent policy and program development and effective cooperation in meeting challenges on cross-portfolio issues. The other portfolio organizations consist of: the Canadian Dairy Commission; the Canadian Food Inspection Agency; the Canadian Grain Commission; Farm Credit Canada; Canada Agricultural Review Tribunal; and the Farm Products Council of Canada. AAFC also includes the Canadian Pari-Mutuel Agency, a special operating agency that regulates and supervises pari-mutuel betting on horse racing at racetracks across Canada.

AAFC provides the overall leadership and coordination on federal rural policies and programs through Canada's Rural Partnership, and supports co-operatives to promote economic growth and social development of Canadian society. Through the Rural and Co-operatives Development program activity, AAFC coordinates the Government's policies towards the goal of economic and social development and renewal of rural Canada. This program activity also facilitates the development of co-operatives which help Canadians and communities capture economic opportunities.

The Department also supports the Minister in his role as Minister for the Canadian Wheat Board.

Strategic Outcomes (SO) and Program Activity Architecture (PAA)

  1. SO 1   An environmentally sustainable agriculture, agri-food and agri-based products sector

    AAFC supports an economically and environmentally sustainable agriculture, agri-food and agri-based products sector that ensures proper management of available natural resources and adaptability to changing environmental conditions. Addressing key environmental challenges in Canada including agriculture's impact on water quality and water use, adaptation to the impact of climate change, mitigation of agriculture's greenhouse gas emissions and the exploration of new economic opportunities contribute to a cleaner environment and healthier living conditions for the Canadian public, while enabling the sector to become more profitable.

  2. SO 2   A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

    Canada's capacity to produce, process and distribute safe, healthy, high-quality and viable agriculture, agri-food and agri-based products is dependent on its ability to proactively manage and minimize risks and to expand domestic and global markets for the sector by meeting and exceeding consumer demands and expectations. Proactive risk management to ensure food safety, market development and responsiveness, and improved regulatory environment contribute directly to the economic stability and prosperity of Canadian farmers and provide greater security for the Canadian public regarding the sector.

  3. SO 3   An innovative agriculture, agri-food and agri-based products sector

    Sector innovation includes the development and commercialization of value-added agricultural-based products, knowledge-based production systems, processes and technologies, and equipping the sector with improved business and management skills and strategies to capture opportunities and to manage change. Such innovation is vital for ongoing growth and improvement in the productivity, profitability, competitiveness and sustainability of Canada's agriculture, agri-food and agri-based products sector and its rural communities.

The graphic below displays AAFC's Program Activities and Program Sub-Activities that comprise its PAA. It reflects how the Department allocates and manages its resources and makes progress toward its Strategic Outcomes.

AAFC's 2010-11 Program Activity Architecture

Program Activity Architecture Diagram

[text version]

Organizational Priorities

AAFC's priorities described in the 2010-11 Report on Plans and Priorities reflected the ongoing importance of competitiveness, innovation, environmental sustainability, and proactive risk management to ensure the sector's long-term profitability. There is a need for continuous investment in scientific research, the development and adoption of leading-edge products and technologies, and business skills, risk management and market intelligence to enable producers and enterprises to achieve a sustainable competitive advantage.

Domestic and international market demands for agricultural and agri-food products continue to evolve, and the Canadian sector must adapt and become more competitive and innovative to meet the challenges of a globalized market. In support of this, AAFC provides information to help the sector identify and respond to emerging trends ahead of Canada's competitors, as well as the tools necessary to encourage adaptation that enables the sector to achieve lower costs and penetrate higher-value markets. In addition, given the sector's heavy reliance on export markets, AAFC works to ensure continued access to existing markets and to gain access to new ones through market access and trade negotiations and disputes programs. Finally, the Department continues to address market demands for assurances that Canada's environmental resources are protected.

With the current agricultural policy framework, Growing Forward, set to expire on March 31, 2013, a new framework is required to position the sector for success over the long term. AAFC is working with provinces and territories to develop the next agricultural policy framework, to help achieve a profitable, sustainable, competitive and innovative agriculture, agri-food and agri-products industry.

AAFC began engagement with industry stakeholders to discuss challenges and opportunities facing the sector. The Department continues to work with provinces and territories to develop policy directions for the next framework based on what has been heard.

AAFC, together with provincial and territorial governments, undertook a strategic review of Business Risk Management (BRM) programs to assess current programs. The findings of the BRM Strategic Review were presented to stakeholders as part of the first phase of the next agricultural policy framework industry engagement in 2010-11. The results of the Strategic Review will inform the policy development process for the next policy framework.

The Government also continued to make significant investments in scientific research, which is a key component to ensuring continued innovation in the agricultural sector. In addition, as the sector and Canada's economy move into recovery from the economic downturn, AAFC continued to implement the important initiatives launched under Canada's Economic Action Plan (EAP), including the Agricultural Flexibility Fund, the Slaughter Improvement Program, and the Canadian Agricultural Loans Act.

The ongoing focus on management excellence was important to deliver results for the sector, of note, through improved service to clients, and reflected in human resources and investment plans driven by government priorities.

Additional information on departmental priorities is provided below.

Priority Status Legend



Percentage of the expected level of performance that was achieved during the fiscal year for the priority identified in the corresponding RPP

Exceeded: More than 100%

Met All: 100%

Mostly Met: 80 to 99%

Somewhat Met: 60 to 79%

Not Met: Less than 60%


Priority 1: Secure and enhance market access for Canadian agricultural and agri-food products
Priority Type Strategic Outcome:
Secure and enhance market access for Canadian agricultural and agri-food products Ongoing SO2 - A competitive sector that proactively manages risk
Status: Met All
Globally, breakthroughs were made for exporters in the following sectors: animal genetics (bovine, porcine and poultry); beef; canary seed; canola; feed and flax; fish and seafood products (including lobster); horticulture (including potatoes); organic commodities; peas; plant biotechnology; pork and swine; poultry meal and porcine blood meal; rendered animal by-products; and wheat, among others.


Priority 2: Support science and innovation, keys to the sector's competitiveness
Priority Type Strategic Outcomes:
Support science and innovation, keys to the sector's competitiveness Ongoing SO1 - An environmentally sustainable sector
SO2 - A competitive sector that proactively manages risk
SO3 - An innovative sector
Status: Met All

AAFC scientists and their partners worked to make significant contributions to research and innovation in Canada. The Department developed improved agricultural practices that address environmental challenges, new food production, processing and distribution techniques that mitigate food safety risks, new crops enhancing Canada's biodiversity, and improved livestock production and management.

Growing Forward innovation programs, such as the Canadian Agri-Clusters and Developing Innovative Agri-Products initiatives, accelerated the pace of innovation by providing support all along the innovation continuum — from discovery through marketplace.

Through the Agricultural BioProducts Innovation Program, AAFC supported conversion of feedstocks into agricultural bioproducts, developed technologies for agricultural biomass conversion, and found ways to diversify products. As a result, Canada's R&D capacity increased and the country was positioned as a significant player in the bioproducts and bioprocessing sector.

The Department helped increase farmer participation in the biofuels industry and contributed to the government's biofuels content target in transportation fuels via the ecoAgriculture Biofuels Capital Initiative.

AAFC accelerated the commercialisation of new innovative value-added agricultural, agri-food and agri-based products, services and processes through the delivery of the Agri-Opportunities Program.

AAFC continued to enhance its management tools for science and innovation, ensuring that its strategic action plan and its human resource, communications and investment plans are fully developed.


Priority 3: Ensure current suite of Business Risk Management programs is achieving its objective"
Priority Type Strategic Outcome:
Ensure current suite of Business Risk Management programs is achieving its objective through the Business Risk Management Strategic Review with Provinces and Territories Previously committed to SO2 - A competitive sector that proactively manages risk
Status: Met All

Federal, provincial, and territorial officials undertook a Strategic Review of BRM programs, which showed that BRM programs played an important role in stabilizing producers' income when market income dropped.

The results of the BRM Strategic Review are helping inform the policy development process. They were presented during the first phase of the next agricultural policy framework industry engagement.



Priority 4: Improve the sector's environmental performance"
Priority Type Strategic Outcomes:
Improve the sector's environmental performance in support of Canada's environmental agenda Ongoing SO1 - An environmentally sustainable sector
SO2 - A competitive sector that proactively manages risk
SO3 - An innovative sector
Status: Met All

AAFC continued to develop and support an evolving set of expertise and tools required to help the sector adapt to climate change and water issues. The Agricultural Greenhouse Gases Program, Canada’s contribution to the Global Research Alliance, was developed and launched.

AAFC continued to explore new approaches to address complex agri-environmental challenges and continued to deliver initiatives that enabled sound environmental decision-making.

AAFC continued to work with partners to improve conservation of air, water, soils, and biodiversity through sector stewardship practices, and to improve ecosystems by increasing and sharing scientific knowledge.

AAFC continued to increase collaboration among stakeholders to help the sector be more resilient and sustainable in the face of complex agri-environmental challenges.



Priority 5: Management Excellence"
Priority Type Strategic Outcomes:
Management Excellence Ongoing SO1 - An environmentally sustainable sector
SO2 - A competitive sector that proactively manages risk
SO3 - An innovative sector
Status: Met All

Sound management practices, processes and systems, particularly in areas such as human resources and service delivery, continued to be key to AAFC's ability to deliver programs and services and achieve its strategic outcomes. Details of the Department's performance in these areas are provided in the discussion of Internal Services in Section II. Highlights include:

Actions to further implement AAFC's Service Excellence agenda included the delivery of a suite of initiatives aimed at helping AAFC to better understand its clients, to better communicate its offerings, and to improve its services to clients through modernized business approaches and system enhancements. For example, AAFC has established service standards for 75% of its programs.

People management strategies identified in the Department's 2009-12 Integrated Human Resources Plan were implemented in support of objectives that advanced Government priorities. As examples, the Department exceeded its student recruitment target for 2010-11, reviewed staffing policies with a view to eliminating duplication and redundant information, and developed a draft new AAFC Values and Ethics Code to be implemented with the new Values and Ethics Code for the Public Sector. The Plan also established the foundation for fostering a work environment that values professional excellence, diversity, linguistic duality, continuous learning, and mutual respect.

With regard to the 2009-10 Management Accountability Framework (MAF) assessment, TBS's observations on AAFC's management capacity were very positive, consistent with the Department's strong performance from the previous year. The Department received five "Strong" ratings and seven "Acceptable" ratings, and progress was made with respect to management priorities identified in the previous MAF assessment. No area of management was rated below "Acceptable". The Department was recognized for maintaining high standards in its level of management performance, while also handling a busy policy and program agenda, specifically the implementation of Growing Forward programs and Budget 2009 (Canada's Economic Action Plan) initiatives.


AAFC's three-year Integrated Human Resources Plan continued to be an important element of the Department's integrated planning approach. Its ongoing relevance will be assured through an update in 2011-12, reflecting the changing environment, business priorities and risks. The key human resources issues facing the Department are similar, but some have grown to be more pressing. These key issues include:

  • projected gaps, as well as shortages of skills and knowledge, in key areas due to retirement rates;
  • ongoing management of human resources to maintain long-term capacity to deliver strategic outcomes through a period of sustained fiscal restraint; and
  • a workplace where the contributions of all employees and the use of both official languages are encouraged and supported.

Strategies to achieve the Department's goals in these areas include:

  • a staffing and recruitment strategy outlining initiatives that support the Department in meeting its current and future staffing needs, attract high-quality candidates, and continuously improve the effectiveness of the staffing system;
  • enhanced opportunities for career and skill development and continuous learning;
  • revising the departmental Employment Equity and Inclusiveness strategy to respond to the findings of the Employment Systems Review; and
  • continuing the national official languages awareness campaign emphasizing employee rights and obligations under the Official Languages Act.

AAFC finalized the first departmental five-year Investment Plan (2010-15) in accordance with Treasury Board's Policy on Investment Planning — Assets and Acquired Services to guide effective investment of resources that clearly support program outcomes and government priorities. The Plan was approved by Treasury Board June 17, 2010. In year one of the Plan, all EAP-funded projects were completed and many other projects were advanced. The Department also positioned itself for year two of the Plan.

Risk Analysis

In 2010, Canada saw its Gross Domestic Product rebound by a healthy 3.1% in real terms, after having declined by 2.5% in 2009. Stronger domestic demand, government spending and business investment in 2010 helped buoy this economic growth as inflationary pressures remained moderate.

For the agriculture and agri-food sector, 2010 saw a small increase in real Gross Domestic Product in spite of lower production. Crop production was down due to adverse weather on the Prairies that hampered planting and harvesting. In the second half of the year, crop and livestock prices advanced significantly in world markets. Higher crude oil prices tended to push up input prices and transportation costs for primary producers, food processors and consumers. However the Canadian dollar appreciated by 10% in 2010 relative to the U.S. dollar, off-setting some of the commodity price increases and the effect of higher crude oil prices. Farm incomes were up positively as a result. The food processing sector, which maintained its steady growth during the recession of 2009, continued to advance at a steady rate in 2010.

The stronger dollar also provided an opportunity for farmers and processors to boost productivity with the help of lower-priced imported machinery and equipment.

Other challenges resulted from changes in regulations and policies in other countries regarding safety and quality issues. For instance, the Canadian livestock industry bore the brunt of the impact of mandatory country of origin labelling in the U.S., its major market. Prices were higher in the European Union, but regulations (e.g., on hormone use) and tariff rate quotas were effective barriers to some Canadian exports.

In terms of AAFC's operating environment, as the employee population ages and retirements continue to peak, maintaining workforce capacity to deliver results to Canadians is important. Renewal of the workforce is being tackled through the targeted recruitment of new employees and the creation of programs to ensure transfer of knowledge about the agriculture sector and to develop management competencies. In a climate of sustained fiscal restraint across the public service, AAFC is committed to ongoing refinement of its integrated business planning process to align human and other resources to deliver on business priorities.

To help accomplish its mandate, AAFC continues to enhance and integrate its risk and opportunity management practices to nourish a risk-smart culture. Risk and opportunity management continues to be a key factor that supports and informs departmental priority setting, business and resource planning, and decision-making.

AAFC's Corporate Risk Profile, which is updated annually, summarizes the possible exposure to risks by identifying key potential events or circumstances and documents management action under way. In 2010-11, AAFC effectively mitigated identified corporate risks, avoiding adverse effects on the achievement of results. The following chart provides a brief description of the risks identified in AAFC's 2010-11 Corporate Risk Profile, and summarizes the status of mitigation strategies.

Risk: Status of Risk and Mitigation Strategies
Risk Status of Risk and Mitigation Strategies
Catastrophic Crisis
A large-scale event could present a severe risk to the sector and/or Canadians at large.

AAFC has a long history of responding to emergencies with appropriate policies and programs. The Department leveraged the AgriRecovery Framework of the BRM suite to facilitate the implementation of 13 initiatives in response to natural disaster events across the country. The Department also continued to engage government and sector partners to enhance emergency preparedness. Significant progress was made in preparing the Department to respond quickly to internal emergencies, such as power outages or a pandemic. As a result of recent threats, such as H1N1, business continuity plans and tested emergency response plans have been refined. Work began to develop plans to address animal diseases; subsequent analysis may help adapt these plans to address plant health concerns.

Information Management
Compromised information, information management or information systems could impact the Department's ability to make effective policy and program decisions, and subsequently affect reporting.

Mitigation activities progressed effectively. AAFC continued to advance recordkeeping guidance and developed a year-round communications strategy on Information Management/Record Management awareness and education. A privacy management framework was developed to help meet Privacy Act requirements. To improve information and data management, AAFC continued to work towards solutions, such as internet portals, enhanced search tools, reviewed data warehousing, and business intelligence design.

Electronic document management was expanded in the National Capital Region and network preparations for further deployment of the electronic document and records management software to AAFC regional offices are complete.

Program Risk
AAFC's highly complex programs and broad range of clients present risks for potential errors, or risks that management processes and tools are inadequate to provide sufficient program control frameworks.

Mitigation activities such as recipient auditing, consistent performance reporting and service standard monitoring have reduced program design and management risks while enhancing service to clients.

Business Risk Management (BRM) program administrators continued to work cooperatively to identify and address risks towards the consistent and increasing quality of BRM program delivery.

Initiatives were implemented that helped improve client service and accuracy. AAFC developed technology to provide a one-window access to both federally and provincially delivered programs. A service excellence communication plan was also developed to drive culture change and meet AAFC's priority of achieving service excellence.

A contribution agreement template for non-BRM programs, as well as grants and contributions program and risk management training, helped ensure efficient program control. Recipient reporting and auditing were enhanced through centralized financial and performance reporting of provincial and territorial agreements and the Department's Recipient/Project Risk Management Framework.

Infrastructure
Aging infrastructure and assets could impair AAFC's significant moveable assets and physical infrastructure holdings, impeding achievement of strategic outcomes.

AAFC is a large custodian of buildings (2,360), land (940,000 hectares), and equipment ($213 million). It has 19 major research centres, 37 research stations and 33 dams. Infrastructure management occurs through the integrated Investment Plan (IP) and IP governance to support ongoing operations of the Department and address government priorities. Implementation of the IP progressed successfully. Effective project management practices were in place with defined roles and responsibilities, and progress continues to be closely monitored.

People Work Environment
AAFC's capacity to maintain a talented, principled and representative workforce in an environment that is fair, ethical, supportive, and safe could impact on achievement of strategic outcomes.

To mitigate workforce risks, AAFC put in place its 2009-12 Integrated Human Resources Plan and supporting multi-year strategies for staffing and recruitment, employment equity and inclusiveness, and official languages. This included a focus on maintaining science capacity in the Department.

To reduce the web of rules, AAFC reviewed all staffing policies, with a view to eliminating duplication and redundant information. Access to Human Resources services was streamlined through a single online window called Human Resources Direct Access.

AAFC embarked on collaborative projects with other federal government organizations aimed at sharing administrative systems. These efforts will continue into the next several years.

System/Technology Sufficiency
Evolving business priorities and processes may not be adequately supported if applications investments are not made in a strategic manner using modern application development tools. This could result in infrastructure failure or incapacity to integrate information to facilitate decision making.

Mitigation activities progressed satisfactorily. AAFC started the development of a foundational Information Management/Information Technology (IM/IT) architecture with the main emphasis on security architecture. It also advanced its portfolio project management practices as per Treasury Board Secretariat standards, which included a foundational costing model for shared application support services. AAFC reviewed its IT policy instruments and developed new ones where gaps existed. IM/IT disaster recovery options related to business continuity and critical business services for 0-48 hours recovery were approved, and work began on developing the implementation plan.

 

Summary of Performance

2010-11 Financial Resources ($ millions - net)


Summary of Performance: Financial Resources
Planned Spending Total Authorities Actual Spending
There is an overall reduction between Planned Spending and Total Authorities primarily as a result of a reduction in the requirement for Business Risk Management program funding mainly due to stronger commodity prices. Variances between Total Authorities and Actual Spending result from the annual demand for multi-year program funding as well as timing of new program implementation. The majority of the unspent funding is expected to be carried forward for use in future years.
3,331.3 2,918.3 2,674.8

2010-11 Human Resources (Full-Time Equivalents - FTEs)


Summary of Performance - Human Resources
Planned Actual1 Difference2

1 Full-Time Equivalents - reflect only those FTEs funded through the Department's appropriated resources. In addition to the actual FTEs of 6,266 there were 25 FTEs employed by AAFC for research funded through collaborative agreements with industry partners and 9 FTEs funded from other government departments. Also, an additional 528 FTEs were employed as students.

2 Actual FTEs are higher than Planned primarily due to additional resources required for the development of the next agricultural policy framework and the creation of the Market Access Secretariat. Planned FTEs did not reflect these factors due to timing of the preparation of the Report on Plans and Priorities. The actual number of FTEs has decreased by 14 when compared to the 2009-10 Actual FTEs of 6,280.

6,086 6,266 180


Strategic Outcome 1: An environmentally sustainable agriculture, agri-food and agri-based products sector
Performance Indicators Targets 2010-11 Performance
* The indices listed measure agri-environmental progress in each of the four key areas of soil, water, air, and biodiversity. The scale for these indices is: 0-20 = Unacceptable; 21-40 = Poor; 41-60 = Average; 61-80 = Good; and 81-100 = Desired. A target of 81-100, with a stable or improving trend, represents the desired value for the sector's performance. Results are based on 2006 data published in 2010 in Environmental Sustainability of Canadian Agriculture: Agri-Environmental Indicator Series, Report #3.
Soil Quality
Agri-Environmental Index*
81 by Mar 31, 2030 The Soil Quality index was within the Good range and showed an improving trend. This is attributed to increased adoption of conservation and no-till practices, increased forage and permanent cover crops, and reduced use of summer fallow.
Water Quality
Agri-Environmental Index*
81 by Mar 31, 2030 The Water Quality index was within the Good range but showed a deteriorating trend. This is due to an overall increase in supplemental nutrients as there was an increase in farmland under cultivation.
Air Quality
Agri-Environmental Index*
81 by Mar 31, 2030 The Air Quality index was within the Good range and showed an improving trend. This is attributed to increased adoption of conservation and no-till practices, increased forage and permanent cover crops, and reduced use of summer fallow.
Biodiversity Quality
Agri-Environmental Index*
81 by Mar 31, 2030 The Biodiversity index was within the Average range on the Agri-Environmental Index, showing a stable trend.
Strategic Outcome 1: Program Acivity spending
Program Activity 2009-10
Actual
Spending
($ millions - net)1
2010-11 ($ millions - net) Alignment to Government of Canada Outcomes
Main
Estimates2
Planned
Spending3
Total
Authorities4
Actual
Spending5
Environmental Knowledge, Technology, Information and Measurement 92.9 58.5 59.6 92.9 89.8 A Clean and Healthy Environment
On-Farm Action 85.0 152.2 152.5 152.1 89.7
Total  178.0 210.7 212.1 245.0 179.6  


Strategic Outcome 2: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk
Performance Indicators Targets 2010-11 Performance
Increase in agriculture and agri-food (includes seafood processing) Gross Domestic Product (GDP), in constant dollars (1997 dollars) 10% by Mar 31, 2013 Progress toward the strategic outcome can be considered satisfactory. Between 2009 and 2010, GDP for agriculture and agri-food processing has increased 1.5% to $44.9 billion due to higher prices for agriculture crops and a higher value of food industry shipments.
Strategic Outcome 2 Program Acivity spending
Program Activity 2009-10
Actual
Spending
($ millions - net)1
2010-11 ($ millions - net) Alignment to Government of Canada Outcomes
Main
Estimates2
Planned
Spending3
Total
Authorities4
Actual
Spending5
Business Risk Management 1,508.2 1,678.9 1,996.2 1,477.6 1,452.5 Strong Economic Growth
Food Safety and Biosecurity Risk Management Systems 98.1 150.3 154.8 144.8 95.2
Trade and Market Development 100.5 116.3 116.3 123.0 93.4
Regulatory Efficiency Facilitation 12.5 35.9 35.9 25.8 12.1
Farm Products Council of Canada 3.0 2.8 2.8 3.1 2.8
Total 1,722.2 1,984.1 2,306.0 1,774.4 1,656.1  


Strategic Outcome 3: An innovative agriculture, agri-food and agri-based products sector
Performance Indicators Targets 2010-11 Performance
Percentage increase in the development of food and other agriculture-derived products and services as measured by 1) revenues from bio-products and 2) percentage increase in private industry's Research and Development (R&D) expenditures in the agri-food sector as measured by the food processing and bio-products sectors (Percentage reflects a real increase, after adjustments for inflation) 10% by Mar 31, 2014 In making progress towards the four-year target, AAFC is meeting or exceeding its goals for programs and initiatives within the Program Activities that support this Strategic Outcome. Please see the Performance Analysis in Section II of this report for a description of progress at these lower levels.
Increase in agriculture Net Value-Added (Value-Added is a Statistics Canada measure of Canadian value-added GDP) 7% by Mar 31, 2014 In making progress toward the four-year target, AAFC is meeting or exceeding its goals for programs and initiatives within the Program Activities that support this Strategic Outcome. Please see the Performance Analysis in Section II of this report for a description of progress at these lower levels.
Strategic Outcome 3 Program Acivity spending
Program Activity 2009-10
Actual
Spending
($ millions
- net)1
2010-11 ($ millions - net) Alignment to Government of Canada Outcomes
Main
Estimates2
Planned
Spending3
Total
Authorities4
Actual
Spending5
Science, Innovation and Adoption 275.7 404.4 408.8 368.0 360.3 An Innovative and Knowledge-Based Economy
Agri-Business Development 48.6 64.1 72.9 148.9 104.3
Rural and Co-operatives Development 22.0 25.1 25.1 24.9 21.1
Canadian Pari-Mutuel Agency 0.7 0.4 0.4 4.6 1.0 A Fair and Secure Marketplace
Total 347.0 494.0 507.2 546.4 486.7  


PA 4.1 Internal Services (Supports all of AAFC's Strategic Outcomes)
Program Activity 2009-10
Actual
Spending
($ millions - net)1
2010-11 ($ millions - net)
Main
Estimates2
Planned
Spending3
Total
Authorities4
Actual
Spending5
Internal Services 357.9 301.4 306.0 352.5 352.5


Total Department
  2009-10
Actual
Spending
($ millions
- net)1
2010-11 ($ millions - net)
Main
Estimates2
Planned
Spending3
Total
Authorities4
Actual
Spending5
Total Departmental Spending 2,605.2 2,990.1 3,331.3 2,918.3 2,674.8

For an explanation of the variances for the total Department spending, please refer to the Expenditure Profile subsection of this report.

1 Actual Spending figures represent the actual expenditures incurred during the 2009-10 fiscal year, as reported in the 2009-10 Public Accounts.

2 Main Estimates figures are as reported in the 2010-11 Main Estimates.

3 Planned Spending figures are as reported in the 2010-11 Report on Plans and Priorities (RPP). Planned Spending reflects funds already brought into the Department's reference levels as well as amounts to be authorized through the Estimates process as presented in the Annual Reference Level Update. It also includes adjustments totalling $341.1 million for funding approved in the government fiscal plan, but not yet brought into the Department's reference levels at the time of the Main Estimates.

4 Total Authorities reflect 2010-11 Main Estimates plus a net total reduction of $71.8 million comprised of Supplementary Estimates and allotment transfers received during the 2010-11 fiscal year, as well as adjustments to statutory amounts to equal Actual Spending, and internal adjustments and transfers, as reported in the 2010-11 Public Accounts.

5 Actual Spending figures represent the actual expenditures incurred during the 2010-11 fiscal year, as reported in the 2010-11 Public Accounts. In certain cases, where authorized amounts are unspent, they can be reprofiled for use in future years.

The figures in the above table have been rounded. Due to rounding, figures may not add up to the totals shown.

Expenditure Profile

AAFC departmental spending varies from year to year in response to the circumstances in the agriculture, agri-food and agri-based products sector in any given period. Programming within AAFC is in direct response to industry and economic factors which necessitate support to this vital part of the economy. Much of AAFC's programming is statutory (i.e. for programs approved by Parliament through enabling legislation) and the associated payments fluctuate according to the demands and requirements of the sector.

Canada's Economic Action Plan (EAP)

AAFC's spending plans were augmented through initiatives under EAP, recognizing that agriculture and agri-food as a vital sector of the Canadian economy. Key investments were made to help Canadian farmers maximize market opportunities and derive benefits as soon as possible, on the understanding that they have an important role in helping Canada recover from the global recession. In implementing these investments, AAFC ensured that they are complementary and integrated with Growing Forward programs.

Progress was achieved on the EAP initiatives in support of Canada's farm and agricultural businesses as the Government continues to make funding available to the sector. The Agricultural Flexibility Fund supported new initiatives, both federally and in partnership with provinces, territories and industry, to improve the sector’s competitiveness. Under the Slaughter Improvement Program, 20 projects worth $56 million were approved to help make red meat packing and processing facilities more competitive and accessible to farmers across Canada. The Canadian Agricultural Loans Act helped farmers gain easier access to credit. Transfer of Delivery of the AgriStability Program to the provinces of Saskatchewan and British Columbia was implemented with no significant client service impacts to program applicants. The Modernizing Federal Laboratories Program enabled facilities to be updated at eight AAFC laboratories. Also, the Accelerating Federal Contaminated Sites Action Plan resulted in accelerated assessment and remediation activities at several sites, thereby reducing risks to human health and the environment as well as the Department's liability risks. Detailed information regarding these EAP initiatives can be found in Section II.

Departmental Spending Trend

The figure below illustrates AAFC's spending trend in Main Estimates, Planned Spending, Total Authorities, and Actual Spending from 2008-09 to 2010-11.

Departmental Spending Trend Graph

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Notes:
1 Main Estimates figures are as reported in the Main Estimates for each respective year.

2 Planned Spending figures are as reported in the respective Report on Plans and Priorities. Planned Spending reflects funds already brought into the Department's reference levels as well as funding approved in the government fiscal plan, but yet to be brought into the Department's reference levels, at the time of the respective Report on Plans and Priorities. Planned Spending did not reflect Budget 2008, 2009 or 2010 information. These adjustments were subsequently made and reflected in Total Authorities.

3 Total Authorities reflect Main Estimates plus adjustments comprised of Supplementary Estimates and allotment transfers, adjustments to statutory amounts to equal Actual Spending, and internal adjustments and transfers, as reported in Public Accounts.

4 Actual Spending represents the actual expenditures incurred during each respective fiscal year, as reported in Public Accounts. In certain cases where authorized amounts are unspent, they can be reprofiled for use in future years.

Over the past three fiscal periods from 2008-09 to 2010-11, the Actual, Planned and Authorized Spending ranged from a low of $2.6 billion in 2009-10 to a high of $3.3 billion in 2010-11. Although the actual spending trend depicted above is generally consistent across the years, the programs and initiatives vary from year to year in response to changes affecting the agriculture, agri-food and agri-based products sector.

2009-10 included funding provided to the pork industry to support an orderly transition of the sector in view of new market challenges, while 2010-11 reflects support under the Prairie Excess Moisture Initiative, which provided emergency assistance to producers affected by flooding conditions from the spring and summer of 2010. Both 2009-10 and 2010-11 included investments under Canada's Economic Action Plan to assist in the recovery from the global economic recession.

The requirement for Business Risk Management program funding over the recent years has been lower than in the past as a result of stronger commodity prices.

Actual Spending in 2010-11 is lower than authorities as the result of several factors including the timing of the start-up of some programs. However, the majority of the unspent funding is expected to be carried forward for use in future years.

Estimates by Vote

For information on organizational Votes and/or statutory expenditures, please see the 2010-11 Public Accounts of Canada (Volume II) publication.