classification growing forward: the policy…how we got there? agriculture, food and resource policy...

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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

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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 »

PARTNERSHIPINTEGRATED

FLEXIBLE

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What (could) shape the new policy

APF 2

WTO

?Trends

History

Politics

Industry

Growing Forward

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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….

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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

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A public policy that reflects the preoccupations of Canadians

Environment

Energy

Health

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CLASSIFICATIONPartnership : Build together the next generation of policies

PHASE 1Fall 2005 to mid 2006(Analysis & Fact Finding)

PHASE 1Fall 2005 to mid 2006(Analysis & Fact Finding)

PHASE 2mid 2006 to Mid 2007(Policy Development)

PHASE 2mid 2006 to Mid 2007(Policy Development)

PHASE 3Mi 2007 / April 2008

(Dev. Program.)Nego./Signature.)

PHASE 3Mi 2007 / April 2008

(Dev. Program.)Nego./Signature.)

FPT Ministers meeting


Science,

Conf

Science,

Conf

CAPI Conf.CAPI Conf.

PHASE 4April 2008

PHASE 4April 2008

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Round2

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Stakeholders• Farm &

industry organisations

• Value chain• Environment

& consumers groups s

• NGO etc…

FPT

Input• Science• CAPI• Parliamen

t ctee• AAFC

teams • APF CTEE• AAFC

portfolio• Etc…

Multilateral

Agreement

Signed

PHASE 4

2009

PHASE 4

2009

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Sector that contributes to

society’s priorities

Sector that is proactive in

managing risks

Competitive and Innovative sector

Public Goods and Services

Pillar

Business Risk Management

Pillar

Strategic Growth Pillar

CFA « Canadian Farm

Bill »

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CLASSIFICATIONPartnership : Build together the next generation of policies

PHASE 1(Eco. context, Gov. direction..)

PHASE 1(Eco. context, Gov. direction..)

PHASE 2(Policy Development)

PHASE 2(Policy Development)

PHASE 3(Dev. Program…)

PHASE 3(Dev. Program…)

PHASE 4April 2013

PHASE 4April 2013

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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

Input• Science• CAPI• Parliamen

t ctee• AAFC

teams • APF CTEE• AAFC

portfolio• Etc…


(Feb. 2010)


(Feb. 2010)

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FOOD strategy, FOOD policy, FOOD security, FOOD safety, FOOD sovereighnety, Le Pouvoir de se nourrir, FOOD is the connection… (dixit : Even Solomon)

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GF 2 ?

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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

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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

The Ministers have agreed

to build on the five pillars

of APF

(Saskatchewan november 25 2005)

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Everything You Always Wanted to Know About…

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Business risk managementBRM

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Second Wave

Whole-farm approach

Net Income Stabilization Account (NISA) complemented by Canadian Farm Income Program (CFIP)

1991 to 2003

Drawbacks to approach: - Problems integrating two programs - Producers did not withdraw funds - CFIP paid after-the-fact: time-lag after drop in income inevitable

Advantages to approach:- Production neutral- Provided support to all participants- Provided protection against countervail

Third Wave

Further integrated programs

Canadian Agriculture Income Stabilization (CAIS) combined both disaster and income stabilization in a single program.

Advantages to approach : - Whole-farm revenue is protected - Payout on sliding scale depending on income loss - Minimizes countervail risk - Covers negative margins

Challenges: - Affordability - Flexibility - Complexity

2003 to Growing Forward

Governments have also provided ad hoc programming throughout this evolution.

Programs history… toward BRM programs

First Wave

1940s to mid 1990s

Commodity price support

Payments triggered when commodity prices declined below target levels

Drawbacks to approach: - Affordability - Uneven payments - Distorted markets - Serious vulnerability to countervail

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From the old world to the new world…

1,1 billions $1,1 billions $

Crop InsuranceCrop Insurance

NISANISA

CFIPCFIP

Advanced PaymentsAdvanced Payments

«Companion » Prog.Ex:ASRA

«Companion » Prog.Ex:ASRA

Before 2003Before 2003Starting in 2003Starting in 2003

Production InsuranceProduction Insurance

CAISPCAISP

Advances : Spring and Advanced Payments

Advances : Spring and Advanced Payments

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CAISP : program based on individual margin……

70 % 70 %

0 % 0 %

Producer Gouv.

STABILIZATIONSTABILIZATION 85 % 85 %

CATASTROPHECATASTROPHE

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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)

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Growing Forward

Until 2007Until 2007 Starting in 2007Starting in 2007

AgriInsuranceAgriInsurance

AgriInvestmentAgriInvestment

AgriRecoveryAgriRecovery

AgriStabilitéAgriStabilité

Advanced Payments ProgramAdvanced Payments Program

Crop InsuranceCrop Insurance

CAISPCAISP

Fall and Spring Cash Advance Payment Programs

Fall and Spring Cash Advance Payment Programs

DisasterAdhoc programs DisasterAdhoc programs

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AgriInvestment and AgriStability……

70 % 70 %

0 % 0 %

Producer Gouv.

AgriStabilityAgriStability

85 % 85 %

AgriInvestmentAgriInvestment

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Let me share with you some thoughts on…

The WORLDS in what we are!

You remember the…?

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Inpredictable and chaotic…

From complicated to complex…From complicated to complex…« 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

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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.

Sector that contributes to

society’s priorities

Sector that is proactive in

managing risks



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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

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« Something is missing! »

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A Competitive and Innovative Sector (continued)

Capacity to adapt and succeed Helping entrepreneurs evaluate their performance and plan the future of their

businesses

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Contributing to Society’s Priorities will be done in a way that minimizes 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 performance with 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

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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

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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…

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classification growing forward: the policy…how we got there? agriculture, food and resource policy...

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