Growing Forward

Canada’s New Agricultural Policy Framework

Agricultural Policy in Canada

• Federal and Provincial (and Territorial) responsibility

• The Agricultural Policy Framework (APF) agreement in 2003, 5-year program

• Spending priorities outlined in the APF

• Program funding by Federal and Provincial governments

APF Characteristics (5 Pillars)

1. Business Risk Management – program payments, crop insurance

2. Food Safety and Quality - traceability

3. Science and Innovation – new crops and opportunities

4. Environment – enhance soil, water and air quality, and biodiversity

5. Renewal – skills development/extension

Business Risk Management

• AgriInvest – producer accounts to help cover margin declines

• AgriStability – to cover large margin declines

• AgriInsurance – crop insurance• AgriRecovery – disaster at a regional level• Advance Payments Program – cash

advances to help with cash flow• http://www.agr.gc.ca/agriinvest

AgriInvest

• A producer account from which payments area made to the producer (account can not go into deficit), also only margin declines of less than 15%

• Payment used to address a small margin decline• Producer deposits of up to 1.5% of allowable net

annual sales• Producer money is matched by government• Supply managed commodities not covered

AgriStability

• Provides support when a large margin decline is experienced

• For margin declines of greater than 15%

• Whole farm support, targeted to individual producers

AgriInsurance

• Includes existing production insurance programs

• Expanded to include additional commodities

• Payments made when a production loss is incurred (drought, frost, flood, …)

• Delivered by the provinces

AgriRecovery

• Government response to disasters in a specific region or industy

• Assistance is to be ‘rapid’

Advance Payments Program

• Cash advances available to producers (mainly annual cropping)

• To provide cash flow throughout the year (especially in the spring-early summer)

The End