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A Federal-Provincial-Territorial Initiative
Putting Canada FirstAgricultural Policy for the 21st Century
Putting Canada FirstAgricultural Policy For the 21st Century
A Federal-Provincial-Territorial Initiative
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Key elements of the Agricultural Policy Framework:
• Environment
• Food Safety and Food Quality
• Science and Innovation
• Renewal
• Business Risk Management
The Agricultural Policy Framework contains five key elements
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Environment
Environment
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Environment
Products produced in an environmentallysound manner translate into benefits
to producers and consumers
In 5 years, we will have:
• National standards for farm environmental certification
• New tools to support environmentally sound production
• Environmental farm planning
• Producers receive recognition for their environmental investments
• Consumer access to quality food produced according to the highest environmental performance standards
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On-Farm Action
PerformanceMeasurement
Knowledge &
Information
Program elements
Environment
Programs under the APF will achieve the following:
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Food Safety and Food Quality
Food Safety and Food Quality
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Program elements
• Facilitating industry adoption of Hazard Analysis Critical Control Point (HACCP)-based food safety systems, both on-farm and beyond
• Food quality — assisting in the developmentof quality process control systems
• Traceability systems which allow products to be traced backwards and forwards through the agri-food continuum
Food Safety and Food Quality
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Supporting activities
• Research to address knowledge gaps
• Enhancing collaboration among federal stakeholders
• Government recognition of on-farm food safety programs
• Government recognition and certification of food quality systems to improve market access
Food Safety and Food Quality
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Renewal
Renewal
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What is Renewal?
Renewal
Renewal is about providing farmers with:
• Assistance to develop the skills and knowledge which will help them continue to be successful
• Access to advice to help increase profitability through on- or off-farm opportunities
• Information on opportunities to help farmers improve family income and/or make informed choices about sources of income
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Proposed programming will focus on five key areas
• Canadian Farm Business Advisory Services
– a network of advisory services that provide useful information for making business-related decisions
• Support for Skills Assessment and Training
– assistance for skills development and training to help farmers make choices about the future and enable them to pursue opportunities on and off-farm
• Capturing Opportunities
– improve profitability by increasing awareness of innovations in science and technology and how to implement them
Renewal
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Proposed programming will focuson five key areas (Continued)
• Awareness
– To provide information that helps farmers make decisions about their business operation and to establish and build awareness for renewal initiatives
> Benchmark CD Rom and Web site: www.agr.gc.ca/compare
> Agricultural Services Web site: www.agr.gc.ca/ren/serv/supp_e.cfm
• Access to Capital
– To increase private sector investment and improve farmers’ profitability of obtaining debt and/or equity financing
Renewal
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Science and Innovation
Science and Innovation
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Promoting science, research and technology transfers
Science and Innovation
• Realigning public science resources
– realigning and increasing science investments sourced from outside the agriculture sector
– realigning AAFC research resources already undertaken in support of APF priorities
• Coordinating science and innovation efforts
– taking the results of knowledge from the lab to the market place and into use
• Creating a climate for innovation
– ensuring that agriculture’s innovation needs are built into the government’s innovation policies
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International
International
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The new international strategy
International
• Gaining recognition and building markets
– market research; branding; technical marketing assistance; emerging market strategies; trade specialists
• Improving market access
– trade negotiations; strategic alliances; advocacy; and consultations
• Overcoming technical barriers
– influence trade policy and rules; alliances; early warning; and market access protocols
• Enhancing international development
– research and analysis; strategic program objectives; and market development
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Implementing the new strategy
International
• 2003-04
– Value-chain roundtables
– Development of marketing strategies
– Transition from AFTP to the new international program
• 2004-05
– Full implementation
– New funding structure
– Adapt to changing market priorities
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Business Risk Management
Business Risk Management
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New program design: CAIS
Business Risk Management
• Integrated stabilization and disaster mitigation program, with larger government contributions for disasters
• Whole farm approach
• Government funds would be accessed when a need is established
• Coverage based on a “production margin”, which is larger than the pervious gross margin
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How CAIS will work
Business Risk Management
• Integrated Trigger for Stabilization and Disaster
– A producer would receive a payment when their current margin falls below their reference margin
– Funds will be accessed in a ratio determined by the degree of margin decline
– The more severe the loss, the greater government financial participation
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Costs will be shared, but borneprogressively more by governments
85%
0%
DISASTER TIER
Government funds cover larger share of loss
producer governments
NEGATIVE MARGINSCould be partly provided through
Production Insurance or Private Risk Management Tools
70%
50% 50%
30% 70%
20% 80%
STABILIZATION TIERS
Producer funds cover larger share of loss
100%
Business Risk Management
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• Depending on their own situation, the producer would request a specific level of coverage
• To access the desired level of protection, the producer would place on account the required share of funds
producer governments
85%
0%
70%
100%
Disaster TierDisaster Tier
Stabilization TiersStabilization Tiers
Business Risk Management
Producers would be able to select their coverage level, up to their entire margin
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• Producers could initially select the minimum protection option with 1/3 of their needed contribution on account
• By the third year, they would need to increase the amount on account to the minimum level
• This process could be reset after a major downturn, to ensure time to rebuild the producer’s account
governmentproducer
85%
0%
70%
100%
Business Risk Management
For affordability, farmers could initially obtain basic coverage with only 1/3 down
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One program for stabilization, disaster
Under CAIS
1/3 down gives protection and can be carried over
Can rebuild protection immediately
Designed to meet WTO criteria
Previously…
• more complex: different programs, criteria
• producers need to build accounts over time
• After a major downturn, rebuild funds over time
• Designed to meet WTO criteria
Business Risk Management
The new approach has many advantages compared to the previous program
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Production Insurance
• Governments are committed to expanding options available to more commodities
• Often this will involve building on the best of what is already available across Canada, for example:
– products based on satellite imagery, for example to estimate the yield of forage and pasture crops
– insurance that is tied to the average rainfall in a particular area
– crop value insurance that can compensate producers of perishable crops with multiple harvest dates
• Introduction of a whole farm option
Business Risk Management
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Conclusion
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Progress to date and next steps
• Negotiations on programming and implementation details are ongoing
• Programs will be implemented as they are finalized through to 2008
A Federal-Provincial-Territorial Initiative
Putting Canada FirstAgricultural Policy For the 21st Century
A Federal-Provincial-Territorial Initiativewww.agr.gc.ca/puttingcanadafirst
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