Growing Forward: the policy…how we got there?

1. Growing Forward: the policy…how we got there? Agriculture, Food and Resource Policy course McGill University Winter 2010 Macdonald Campus Charles Cantin Strategic Policy Branch in AAFC

2. From APF to GF… • APF was the first Canadian agriculture and agrifood policy with shared national goals • Nothing is perfect…there was need for improvement • Three words inspired the development of the next generation of policy « Growing Forward » PARTNERSHIP INTEGRATED FLEXIBLE

3. History WTO Politics Industry ? Trends What (could) shape the new policy Growing Forward APF 2

4. WHAT ABOUT THE INDUSTRY? • Production : Canadian Federation of Agriculture (CFA) • Processing : Conseil de la transformation agroalimentaire et des produits de consommation (CTAC) • Think tanks : Canadian Agriculture Policy Institute, George Morris Centre, Institut agricole du Canada, M. Easter consultations documents, l’OECD etc….

5. WHAT ABOUT THE INDUSTRY…the producers • «FARMERS WANT TO EARN INCOME FROM THE MARKET» • CFA is promoting the «APF II A Canadian Farm Bill» ou en français «CSA II Une loi agricole canadienne» a three pillar policy • Public goods and services • Business risk management • Startegic growth

6. A public policy that reflects the preoccupations of Canadians • Environment • Energy • Health

7. CFA « Canadian Farm Bill » Partnership : Build together the next generation of policies PHASE 1 Fall 2005 to mid 2006 (Analysis & Fact Finding) PHASE 2 mid 2006 to Mid 2007 (Policy Development) PHASE 3 Mi 2007 / April 2008 (Dev. Program.) Nego./Signature.) PHASE 4 April 2008 PHASE 4 2009 • Stakeholders • Farm & industry organisations • Value chain • Environment & consumers groups s • NGO etc… CAPI Conf. Competitive and Innovative sector Strategic Growth Pillar Round 1 Round 2 FPT Working group Working group Implementation of APF 2 FPT Ministers meeting FPT Ministers Meeting Process. approbation FPT Negociations Growing Forward Implementation FPT Ministers FPT mtg. Ministers FPT Ministers FPT Ministers annual meeting • Input • Science • CAPI • Parliament ctee • AAFC teams • APF CTEE • AAFC portfolio • Etc… Sector that contributes to society’s priorities Public Goods and Services Pillar Sector that is proactive in managing risks Business Risk Management Pillar Science, Conf Multilateral Agreement Signed

8. Partnership : Build together the next generation of policies PHASE 1 (Eco. context, Gov. direction..) PHASE 2 (Policy Development) PHASE 3 (Dev. Program…) PHASE 4 April 2013 ? FOOD strategy, FOOD policy, FOOD security, FOOD safety, FOOD sovereighnety, Le Pouvoir de se nourrir, FOOD is the connection… (dixit : Even Solomon) CFA, OFA and UPA are in a policy definition process. Forge united positions through the value chain. Emerging themes: health, euity, sustainable development, autonomy… • Stakeholders • Farm & industry organisations • Value chain • Environment & consumers groups s • NGO etc… FPT Implementation of GF 2 FPT Ministers FPT Ministers • Input • Science • CAPI • Parliament ctee • AAFC teams • APF CTEE • AAFC portfolio • Etc… FPT Ministers meeting (Feb. 2010) FPT Ministers annual meeting GF 2 ?

9. A LITTLE BIT OF HISTORY: APF Goal • “Enhance the long term sector profitability by making the Canadian agriculture and agrifood the world leader in food safety, innovation and environmentally-responsible production”. • Branding Canada to compete on quality rather than price

10. The Ministers have agreed to build on the five pillars of APF (Saskatchewan november 25 2005) The APF Agreement provided a framework in five major areas • Environment • Food safety and quality • Renewal • Science and innovation • Business risk management …To make Canada a world leader

11.  Everything You Always Wanted to Know About… BRM

12. Business risk managementBRM

13. Third Wave First Wave Second Wave Commodity price support Whole-farm approach Further integrated programs Canadian Agriculture Income Stabilization (CAIS) combined both disaster and income stabilization in a single program. Payments triggered when commodity prices declined below target levels Net Income Stabilization Account (NISA) complemented by Canadian Farm Income Program (CFIP) Drawbacks to approach: - Affordability - Uneven payments - Distorted markets - Serious vulnerability to countervail • Advantages to approach: • Production neutral • Provided support to all participants • Provided protection against countervail Advantages to approach : - Whole-farm revenue is protected - Payout on sliding scale depending on income loss - Minimizes countervail risk - Covers negative margins Drawbacks to approach: - Problems integrating two programs - Producers did not withdraw funds - CFIP paid after-the-fact: time-lag after drop in income inevitable Challenges: - Affordability - Flexibility - Complexity Governments have also provided ad hoc programming throughout this evolution. 1940s to mid 1990s 1991 to 2003 2003 to Growing Forward Programs history… toward BRM programs

14. From the old world to the new world… 1,1 billions $ Starting in 2003 Before 2003 Production Insurance Crop Insurance CAISP NISA CFIP Advances : Spring and Advanced Payments Advanced Payments «Companion » Prog. Ex:ASRA

15. … CAISP : program based on individual margin Producer Gouv. STABILIZATION 85 % 70 % CATASTROPHE 0 %

16. THE POLITICAL AGENDA : what will happen with CAISP? • «Ministers are also determined to move forward on transforming the the CAIS program .…They tasked officials to review options …including the possibility of replacing the current integrated CAIS program with one that separates disaster relief from income stabilization». (British Columbia March 20 mars 2006) • «…the government wants to replace CAISP …we are also going to pitch in when the unexpected strikes by creating a fund for disaster relief assistance over and above income stabilization. We promised to commit at least an additional 500 M$ every year to farm support programs».(Stephen Harper, Farm income crisis debate, April 6 2006)

17. Growing Forward Until 2007 Starting in 2007 Crop Insurance AgriInsurance CAISP AgriInvestment AgriStabilité Fall and Spring Cash Advance Payment Programs Advanced Payments Program AgriRecovery DisasterAdhoc programs

18. … AgriInvestment and AgriStability Producer Gouv. AgriInvestment 85 % 70 % AgriStability 0 %

19. You remember the…? Let me share with you some thoughts on… The WORLDS in what we are!

20. « If you are not trouble right now, if your mind is not confused, it is because you don’t understand what’s happening! » Jack Welch, CEO General Electric Inpredictable and chaotic… From complicated to complex… Innovate...to be in control! ?

21. Competitive and Innovative sector Competitive and Innovative sector Sector that contributes to society’s priorities Sector that is proactive in managing risks The vision and the outcomes of Growing Forward are the key elements to programs development Vision: A profitable and innovative agriculture, agri-food and agri-based products industry that seizes opportunities in responding to market demands and contributes to the health and well-being of Canadians.

22. A Competitive and Innovative Sector is central to achieving long-term profitability • Capacity to innovate • Science clusters to deal with priority areas • Science to Support Commercialization of New Agri-Based Products • Support for commercialization and innovation • Regulatory performance • Improving approval process for veterinary drugs, novel foods and food additives • Science and other support to help industry generate approval for health claims and new minor use pesticide products • Industry success in global and domestic markets • Support for industry-led marketing strategies • Canada branding strategy • Market intelligence and services for exporters • Maintaining and improving market access

23. «  Something is missing! »

24. "DREAMS CALCULATOR"

25. A Competitive and Innovative Sector (continued) • Capacity to adapt and succeed • Helping entrepreneurs evaluate their performance and plan the future of their businesses

26. Contributing to Society’s Priorities will be done in a way thatminimizes costs and maximizes opportunities Food Safety • Facilitation of producer adoption of systems where the market demands • Support for and recognition of food safety systems • Environmental performancewith focus on priority areas • Research into agricultural practices that improve environmental performance • Support for adopting management practices that create benefits or reduce risk in priority areas • Dissemination of knowledge and information on environmentally sound practices • Measurement of the sector’s environmental performance

27. Proactively Managing Risks means taking steps to both prevent /prepare for problems and Business Risk Management • Preventing and preparing for risk • Animal and plant biosecurity strategy • Implementing biosecurity and traceability systems • Improved BRM program suite • AgriStability • AgriInvest • AgriRecovery • AgriInsurance

28. IN RESUMÉ…… • Agriculture policy…done! We already strated to work on the next one. • Integrate and innovate easy to say…but to do! • Partnership a formula that we have to invent continually • We built on APF pillars… there is a continuum in policy but other aspect provoke evolution (health, energy…) • Industry and think tanks have influenced Growing Forward (CFA, CAPI… • What are the next Global Drivers that could influence the future…WTO, Climate change, Food crises, Energy, Water…

29. MERCI!