Ontario Canada Agricultural Policy Framework
Backgrounder

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The Government of Canada and the provincial and territorial governments are working together with
Canadian farmers and the food industry to lay the foundation for a stronger agri-food sector now and in the future. Through the Agricultural Policy Framework (APF), a plan is being implemented that will make Canada the world leader in food safety and quality, environmentally responsible production and innovation.

In June 2002, the Government of Canada and the Government of Ontario signed a Framework Agreement on Agriculture and Agri-Food in the Twenty-First Century. This agreement solidified their commitment to work together on the development and adjustment of programs, services and tools. It also identified the goals they would pursue in common over the next five years.

The Canada-Ontario Implementation Agreement, signed in December 2003, builds on the Framework Agreement by spelling out many of the concrete measures that will be undertaken by both governments to achieve those common goals. The measures will help the agri-food sector strengthen businesses, increase prosperity and meet the demands of consumers at home and abroad. They will also ensure that agriculture continues to be a valuable contributor to the quality of life of all Ontarians.

There are six pillars under this framework - business risk management, food safety and quality, environment, renewal, science and innovation, and branding Canada.

Over the five-year life of the agreement, Canada and Ontario will invest more than $1.7 billion in Ontario's agri-food sector. The majority of the funds, $1.5 billion, will be directed towards business risk management programs. To further the sector's progress under the other pillars, Canada has committed $141 million and Ontario has committed $94 million over the five-year life of the agreement.

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Business Risk Management

Business risk management programming, also known as agricultural safety nets, was first implemented in Canada and Ontario during the 1950s and 1960s, to provide a level of protection from income volatility. The number and design of programs has changed considerably over the years in an ongoing effort to better address the challenges posed by weather, changing consumer demands and the trade policies of other nations.

Governments agree that business risk management is a key component of building a stronger, more profitable agriculture sector for the 21st Century, and so have committed to improve risk management programming under the APF.

This new approach to business risk management comprises two complementary and linked programs: the Canadian Agricultural Income Stabilization (CAIS) Program and the Production Insurance Program.

The CAIS program protects farm operators from large or small declines in income by combining stabilization assistance with disaster assistance. The Production Insurance program will expand upon the proven and valuable crop insurance program previously available to farmers. In Ontario, this could include risk management products for livestock producers, coverage for events such as rainfall, and enhanced levels of coverage for higher value crops.

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The two programs are designed to provide:

• Permanent disaster coverage for farmers;
• Equitable treatment of all farmers, across all commodities and in all provinces;
• Affordable coverage for beginning farmers; and
• More effective assistance in the event of back-to-back disasters.

In addition, these programs allow governments to more effectively direct their dollars to the areas of greatest need.

Canada and Ontario will cost-share these business risk management programs on a 60:40 basis. While these national programs are demand driven, it is estimated that each year Canada will provide $180 million and Ontario will provide $120 million in assistance to the farmers of this province.

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Food Safety and Quality

Canada and Ontario enjoy a global reputation for producing consistently safe and high-quality food. This reputation is due in large part to the commitment of producers and processors to rigorous safety and quality control processes. However, a good reputation today does not necessarily guarantee a good reputation tomorrow. Consumers are demanding greater assurances and more detailed information on the safety and quality of their food, and international competition for food markets is increasing.

To build on its positive reputation, the agriculture and agri-food sector must continue to search out and make the most of new food safety and food quality processes.

Under the APF, Canada and Ontario are committed to ensuring that food produced in this country continues to be among the safest and highest-quality in the world. Specifically, the federal and provincial governments have agreed to work toward the following common goals on food safety and food quality:

• To protect human health by reducing exposure to hazards;
• To increase consumer confidence in the safety and quality of food produced in Canada;
• To 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.

The Food Safety and Quality pillar of the APF identifies a range of programs, services and tools for the agri-food sector to be delivered by the federal and provincial governments. These include an on-farm food safety program, traceability initiatives, support for the implementation of quality process control systems and data management systems, and research and technology transfer.

The federal government has committed $39.75 million and the provincial government has committed $40 million to the food safety and quality pillar of the agreement.

The Food Safety Initiative (FSI) is one component of the Canadian Food Safety and Quality Program, and through it Ontario will receive federal funding to help the agri-food industry maintain its high standards in food safety. For more information on the Food Safety Initiative, click here.

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Environment

Farmers depend on the natural environment to deliver the essentials for successful production year after year. The long-term prosperity of the sector is inextricably linked with its ability to operate in the natural environment in a sustainable fashion.

Governments and producers understand this concept well, and are working together to enhance the sector's ability to operate in an environmentally responsible manner. The Environment pillar of the APF will encourage the adoption of practices that protect air, water and soil quality and promote the conservation of living things.

Environmental Farm Plans (EFPs) have been part of the Ontario landscape for more than 10 years. Nutrient management legislation is taking farmers' best management practices and making them mandatory across the province.

Under the APF, governments and farmers will further their work on environmentally responsible production, proving to Canada and the world that Canadian farmers take their stewardship role very seriously. The federal and provincial governments have agreed to work in partnership with industry to reduce agricultural risks and provide benefits to:
· the health and supply of water, with key priority areas being nutrients, pathogens, pesticides and water conservation;

• the health of soils, with key priority areas being soil organic matter and soil erosion caused by water, wind or tillage; and,
• the health of air and the atmosphere, with key priority areas being particulate emissions, odours and emissions of gases that contribute to global warming.

Canada, Ontario and the agricultural community will also work to ensure compatibility between biodiversity and agriculture, with key priority areas being habitat availability, species at risk and economic damage to agriculture from wildlife.

To achieve these goals, the implementation agreement commits the federal and provincial governments to deliver a range of programs, services and tools for producers, including support to develop and implement Environmental Farm Plans, education and technology transfer.

The federal government has committed $67.66 million and Ontario has committed $42.72 million to the Environment pillar of the Implementation Agreement.

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Renewal

Producers are operating in an environment that is increasingly knowledge intensive. The international marketplace is complex, and to stay competitive producers must stay on top of advances in science and technology, value-added opportunities, business practices and production techniques. Access to top-notch farm business management information and advice is more important now than ever.

To keep Ontario agriculture at the forefront, governments have agreed to work with producers to ensure they have access to the leading edge information, tools and skills required to put innovative practices and technologies to work and take advantage of emerging opportunities. Under the APF, the federal and provincial governments will work with the sector to:

• increase farmers' profitability;
• enable farmers to make informed choices about sources of income;
• help farmers meet market and consumer demands regarding food safety and quality and environmentally-sound production; and
• capture opportunities created by science and innovation.

A range of programs, services and tools -- including business advisory services, skills development and training -- will be made available to Ontario's producers. The governments will also work together with industry to create an Agricultural Management Institute that will develop and deliver leading-edge management resources and information to the sector.

The federal government has committed $24.17 million and Ontario has committed $5.5 million to this part of the Implementation Agreement.

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Science and Innovation

Farmers and food processors in Canada have a long history of developing and implementing scientific and technical advances in farming and food production to deliver economic, food safety and environmental benefits. So, too, do the agri-food sectors of other nations.

As the pace and complexity of scientific discovery continues to accelerate, the future success of Canada's agriculture and agri-food sector will depend in large part on its ability to adapt to and be at the forefront of this innovation wave. Doing so will require close collaboration among researchers, producers and manufacturers in developing and adopting innovations throughout the value chain.

Governments have agreed to foster scientific and innovative activity in Canada's agriculture and agri-food sector, under the APF, by pursuing the following goals:

• realigning public science resources;
• co-ordinating along the entire value chain; and
• creating an innovation climate.

A key initiative will be the development of a strategy to increase investment in, and secure the resulting returns from, Canada's bio-based economy. Others include support for innovative projects such as Soy 20/20, research, development and commercialization efforts, and awareness-building activities that promote the benefits and safeguards of bioproducts.

The federal government has committed $9.42 million and Ontario has committed $5.78 million to this pillar of the APF.

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Branding Canada and Maximizing International Opportunities

Canada's agriculture and agri-food sector enjoys a positive image abroad and has been recognized for its ability to deliver consistently safe and high-quality products. This success has helped Canada to become the world's third largest exporter of agriculture and food products.

Governments will work together to increase international opportunities by reducing traditional barriers to market access and seeking to overcome newer technical barriers to agri-food trade. As this integrated international approach is developed, stakeholder input will be sought through value chain roundtables to facilitate the creation of marketing and branding strategies, and to help establish priorities in support of updated export performance objectives.

Producers, processors and governments will build on the industry's past successes and open new export markets for Canada's agriculture and agri-food products.

Reaching the goals of each of the APF pillars will help producers and processors make real gains in food safety and quality, environmental stewardship, business management and innovation. This in turn will strengthen our position in global markets … branding Canada's agri-food sector as a world leader.

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