FPT Agriculture Ministers Reach Agreement on Canadian Agriculture Partnership

Federal, Provincial and Territorial (FPT) Agriculture Ministers reached an agreement on the Canadian Agriculture Partnership (CAP). Replacing Growing Forward 2 on April 1, 2018, the CAP is a 5-year, $3 billion investment designed to bolster competitiveness, growth and innovation in the Canadian agriculture and agri-food sector

by Canadian Cattlemen Association

As outlined in the Calgary Statement last July, the CAP will focus on six main themes:

· Science, Research and Innovation – Helping industry adopt practices to improve resiliency and productivity through research and innovation in key areas.

· Markets and Trade – Opening new markets and helping farmers and food processors improve their competitiveness through skills development, improved export capacity, underpinned by a strong and efficient regulatory system.

· Environmental Sustainability and Climate Change – Building sector capacity to mitigate agricultural greenhouse gas emissions, protect the environment and adapt to climate change by enhancing sustainable growth, while increasing production.

· Value Added Agriculture and Agri-Food Processing – Supporting the continued growth of the value-added agriculture and agri-food processing sector.

· Public Trust – Building a firm foundation for public trust in the sector through improved assurance systems in food safety and plant and animal health, stronger traceability and effective regulations.

· Risk Management – Enabling proactive and effective risk management, mitigation and adaptation to facilitate a resilient sector by working to ensure programs are comprehensive, responsive and accessible.

“The Canadian Agricultural Partnership enables continued investment in strategic initiatives for agriculture and agri-food”

 

While there will be more details to be released between now and April on programming specifics under these six pillars, FPT Agriculture Ministers did release information about changes to the Business Risk Management (BRM) Suite that will be implemented under the CAP.

“The Canadian Agricultural Partnership sets the direction for the future of the sector to help it continue to innovate, grow and prosper, and position Canada as a leader in the global economy,” stated Lawrence MacAulay, Minister of Agriculture and Agri-Food. “Together with provinces and territories, I am committed to expanding business opportunities for our Canadian producers, ranchers and processors, and strengthening the middle class.”

These include capping the AgriStability reference margin limit, which is intended to make the program more equitable to producers with lower cost-structures. A late participation mechanism will also be added to AgriStability, which is intended to allow producers to access the program after the enrollment deadline in times of large income decline. Early descriptions suggest that this measure will be under the decision-making authority of provinces and territories.

Starting in the 2018 program cycle, the maximum Allowable Net Sales eligible under AgriInvest will be reduced to $1 million from $1.5 million. The annual government matching contributions will be limited to $10,000 per AgriInvest account, down from $15,000.

The CCA supports the continuation of the Western Livestock Price Insurance Program (WLIP) under AgriInsurance. The program is a way to manage the risk of unforeseen price downturns which is one of the biggest risks cattle producers face. Expanding this price insurance program beyond the western provinces would positively contribute to a national plan that allows Canadian cattle producers to better manage price risk.

“The Canadian Agricultural Partnership enables continued investment in strategic initiatives for agriculture and agri-food programming in Newfoundland and Labrador, and will have a significant impact on our rural communities and the provincial economy,” added Steve Crocker, Minister of Fisheries and Land Resources. “The partnership will help our government achieve its goal of increasing food self-sufficiency to at least 20 per cent by 2022, and then building beyond that goal, as laid out in The Way Forward: Realizing Our Potential.”

FPT Ministers also agreed to undertake a comprehensive review of BRM programming. The review process will focus on investigating the types of risks agriculture producers face presently and in the future and will assess the effectiveness that BRM programming has on growth and innovation in the industry. Preliminary findings of the review will be presented to FPT Ministers at next July’s meeting.

The CCA Domestic Agriculture Policy and Regulations Committee will be reviewing the changes to BRM programming during CCA’s upcoming semi-annual meeting at the Canadian Beef Industry Conference in August. The CCA also looks forward to contributing meaningfully in the BRM program review and will work to ensure that the risk management needs of cattle producers are addressed in this process.