Conference of Federal-Provincial-Territorial Ministers of Agriculture

TORONTO , November 17, 2007

Ministers of Agriculture from federal, provincial and territorial governments   met this week in Toronto, announcing significant progress on programs in the new   business risk management (BRM) suite for farmers and other elements of Growing   Forward, the new policy framework for Canada’s agriculture, agri-food and   agri-based products industry.*

Recognizing the importance of a smooth transition to Growing   Forward, Ministers also announced they intend to seek the authorities   needed to continue non-BRM programming currently in place under the Agricultural   Policy Framework (APF) for up to one additional year. This would provide for a   transition period while Growing Forward programs are developed and   implemented.

The Suite of BRM Programs

AgriInvest, AgriStability, AgriRecovery and AgriInsurance were announced in   June and form a new suite of BRM programs for farmers.

Ministers agreed to seek authorities from their governments, and pending   finalization and approval, to implement the following:

   
• AgriInvest, producer accounts that provide coverage for small margin   declines;
   
• AgriStability, the improved margin-based program that provides producers   with assistance for larger income declines; and
   
• AgriRecovery, the disaster relief framework.

AgriInvest was developed in close collaboration with   producers and producer organizations. It will replace the coverage under the   Canadian Agricultural Income Stabilization (CAIS) program for margin losses of   15 per cent or less. Through government and farmer contributions to producer   accounts, it will provide producers with flexible coverage for small income   declines as well as support for investments to mitigate risks or improve market   income. With agreement on AgriInvest, the federal $600 million Kickstart for   producer accounts can start flowing early in 2008.

Provinces are seeking authority from their respective governments on the   details of this program. Under this program, producers who make a deposit to   their AgriInvest account will receive a matchinggovernment   contribution based on a percentage of allowablenet sales of   eligible commodities. AgriInvest responds to the long-standing desire of   producers for programming that allows them to better predict their government   contribution in a given year.

 AgriStability is an improved margin-based   program that will provide farmers with assistance for larger income declines. It   replaces the coverage previously available under CAIS, compensating producers   when their margin in the program year is more than 15 percent lower than their   reference margin – their average margin from previous years.

Ministers agreed to request authorities from their governments for   AgriStability. Producers who participated in 2006 CAIS will automatically   receive a notice with information on their fee. Others are encouraged to contact   their program administration for information on how to participate. The deadline   to enroll and pay the fee is December 31, 2007.

Ministers agreed on the details of AgriRecovery, the   disaster relief framework which ensures rapid assistance for producers hit by   smaller natural disasters – those that are regional in scope, have a relatively   small impact on the Canadian industry, can be easily contained, and have few   trade implications. Ministers committed to seek authorities to jointly fund   these types of disasters on a 60/40 federal/provincial-territorial basis.

Ministers also discussed how their governments would respond in the case of   larger natural disasters – ones that result in relatively large costs to   governments, are national in scope, significantly affect the competitiveness of   the Canadian agricultural sector, and result in potential health risks to   Canadians as well as in significant trade implications.When   larger disasters strike, ministers committed that their governments would work   together to quickly address the unique circumstances and respond to the needs of   producers.

Federal, provincial and territorial governments are continuing work to   enhance production insurance plans under AgriInsurance to   better meet the needs of producers.

Working with Stakeholders and Ensuring a Smooth Transition to Growing Forward

Ministers recognized the best approach is one that addresses the needs of   farmers and the sector as a whole. To ensure that those in the industry have a   voice in the development of new programs under Growing Forward and to   ensure a smooth transition from the current APF, Ministers agreed to seek the   authorities needed for a transition period of up to one additional year starting   April 1, 2008 during which time current APF programs would continue until new   programs under Growing Forward are established. Ministers will be   holding further discussions on funding issues.

Governments will work closely with farmers and sector   organizations on program design. Ministers committed to provide farmers and   others in the sector notice well in advance of any program changes.

Provincial and territorial governments have been engaging stakeholders over   the past few months on Growing Forward. Further grassroots input will   be gathered through provincial and territorial consultations, which will be   followed by national consultations early in the new year. These additional   consultation sessions will focus on ensuring new Growing Forward programs are designed to:

   
• Encourage an approach to innovation that encompasses the full continuum from   basic research to practical implementation integrating the best ideas from other   sectors and countries;
   
• Generate benefits for the sector and all Canadians by contributing to   priorities ranging from food safety, to environmental sustainability, to health   and wellness;
   
• Enable provincial-territorial flexibility, consistent with national   objectives, so that provinces and territories can adapt programming to local   needs;
   
• Modernize and implement innovative regulations and standards in a way that   ensures society’s needs are met and contributes to the sector’s competitiveness;   and
   
• Ensure streamlined, transparent and efficient service delivery for all   programs.

 FPT Action Plan

Ministers discussed in depth the rapidly escalating pressures on cattle and   hog producers. They agreed to develop a joint   industry-government action plan to address these challenges and to support   long-term profitability of the sector. Ministers agreed to a set of principles   to guide them in their discussions with the livestock sector. These principles   are:

   
• A coordinated national approach is necessary;
   
• Governments’ response will be developed in full partnership with industry;
   
• Responses should not mask market signals;
   
• Any action must be fully consistent with Canada’s trade obligations;
   
• Actions will encourage sound business planning and practices towards a   profitable future; and
   
• The short term response should be consistent with a long term   competitiveness and profitability strategy.

Ministers agreed they would:

   
• Accelerate access to existing programs such as targeted advances and interim   payments under AgriStability, AgriInvest and the federal $600 million Kickstart   program, and improve access to the Advance Payments Program;
   
• Work with industry to improve Canada’s export market position; and
   
• Work to enhance competitiveness and profitability by modernizing and   streamlining regulations, including addressing regulatory issues identified by   industry.

Ministers directed officials from both levels of government to meet with the   livestock industry as soon as possible in a concerted national approach focused   on identifying how these actions can support its long term strategies. Ministers   also directed officials to address similar issues faced by the Ontario   horticultural sector.

World Trade Organization

Ministers also reviewed the status of the World Trade Organization (WTO)   agriculture negotiations and noted the intensive efforts underway by WTO Members   since September to make progress toward successful conclusion to the Doha round.   Ministers affirmed Canada’s continued, strong interest in pressing for an   ambitious outcome from the negotiations for the benefits of Canada’s entire   agriculture sector, including both supply-managed and export-oriented   industries.

Agreement on Internal Trade

Ministers directed officials to continue work toward finalizing wording for   the Agriculture and Food Goods Chapter of the Agreement on Internal   Trade.

Ministers will be holding a conference call in December and a further meeting   early in 2008.