| | Preface | Message from the Minister | Management's responsibility for reporting | Overview | Chart of ministry entities | Entities | Operational Overview | Results | Financial statements
Preface
Public Accounts 2004-2005
The Public Accounts of Alberta are prepared in accordance with the Financial Administration Act and the Government Accountability Act. The Public Accounts consist of the annual report of the Government of Alberta and the annual reports of each of the 24 Ministries.
The annual report of the Government of Alberta released June 29, 2005, contains the Minister of Finance's accountability statement, the consolidated financial statements of the Province and a comparison of the actual performance results to desired results set out in the government's business plan, including the Measuring Up report.
This annual report of the Ministry of Agriculture, Food and Rural Development contains the Minister's accountability statement, the audited consolidated financial statements of the Ministry and a comparison of actual performance results to desired results set out in the ministry business plan. This Ministry annual report also includes:
- the financial statements of entities making up the Ministry including the Department of Agriculture, Food and Rural Development, regulated funds, and provincial agencies for which the Minister is responsible,
- other financial information as required by the Financial Administration Act and Government Accountability Act, either as separate reports or as a part of the financial statements, to the extent that the Ministry has anything to report, and
- financial information relating to trust funds.
Minister's Accountability Statement
The Ministry's annual report for the year ended March 31, 2005, was prepared under my direction in accordance with the Government Accountability Act and the government's accounting policies. All of the government's policy decisions as at September 8, 2005, with material economic or fiscal implications of which I am aware have been considered in the preparation of this report.
[Original Signed by]
Doug Horner
Minister of Agriculture, Food and Rural Development
September 8, 2005
Message from the Minister
During my first year as Minister of Agriculture, Food and Rural Development (AAFRD), I have been continually impressed by the knowledge and commitment of our many industry partners. AAFRD staff are devoted to assisting our industry to grow and prosper, and we continue to focus our efforts on fulfilling this vision.
This past year, we have continued to support our beef industry. To date, we have invested more than $713 million in bovine spongiform encephalopathy (BSE) related programs and have established our $30-million Beef Market Development and Retention Fund that assists industry in developing new and existing export markets. Our six-point BSE recovery strategy focusing on slaughter capacity, inventory management, income support, new product and market development, and surveillance and research initiatives was also put into action this year.
As part of our research initiatives, we have partnered with Alberta Innovation and Science, in researching prions, the proteins linked to BSE. In a five-year partnership with the University of Alberta, along with other industry and government partners, we will invest $13 million in the Alberta Poultry Research Centre. We were also pleased to see construction begin on our $14-million Level 3 Biocontainment Lab and our $21-million Agrivalue Processing Business Incubator.
To support our diversified livestock industry, we established new protocols for importing live elk and deer, which will provide increased marketing opportunities for producers. In addition, provincial support totalling $6.6 million was made available to sheep, goat, deer, elk, reindeer and bison producers to assist in maintaining herds.
Rural Alberta continued to be a major focus for government. The Rural Development Strategy, A Place to Grow, was introduced and focuses on ensuring the sustainability of rural areas, economic growth, community capacity, health care and learning and skill development.
We introduced three new bills in the legislature, the Animal Protection Amendment Act, the Animal Keepers Act and the Stray Animals Amendment Act to update and enhance existing livestock legislation.
We have continued to work with the federal government and other provinces on the Agricultural Policy Framework. Major amendments have been made to the Canadian Agricultural Income Stabilization program, including changing the deposit requirement and making it easier to apply while cutting down turnaround time on processing payments. Also introduced was the Alberta Environmental Farm Plan, designed to increase awareness surrounding environmental farming issues.
Improved soil moisture levels this year provide an optimistic outlook for our grain producers. In order to help make the next years successful, we will be reviewing our crop insurance policies, the Spring Price Endorsement and the Revenue Insurance Coverage, to make them more accessible and beneficial to producers.
These initiatives, partnerships and ongoing work in all areas of the Ministry have truly made this year a success. Thanks to everyone - Ministry staff, industry partners, communities and businesses throughout the province for your support.
[Original Signed by]
Doug Horner
Minister of Agriculture, Food and Rural Development
Management's Responsibility for Reporting
The Ministry of Agriculture, Food and Rural Development includes:
- Department of Agriculture, Food and Rural Development
- Agriculture Financial Services Corporation
- Alberta Grain Commission
- The Office of the Farmers' Advocate
- Irrigation Council
- Agricultural Products Marketing Council
The executives of the individual entities within the Ministry have the primary responsibility and accountability for the respective entities. Collectively, the executives ensure the Ministry complies with all relevant legislation, regulations and policies.
Ministry business plans, annual reports, performance results and the supporting management information are integral to the government's fiscal and business plans, annual report, quarterly reports and other financial and performance reporting.
Responsibility for the integrity and objectivity of the consolidated financial statements and performance results for the Ministry rests with the Minister of Agriculture, Food and Rural Development. Under the direction of the Minister, I oversee the preparation of the Ministry's annual report, including consolidated financial statements and performance results. The consolidated financial statements and the performance results, of necessity, include amounts that are based on estimates and judgments. The consolidated financial statements are prepared in accordance with the government's stated accounting policies.
As Deputy Minister, in addition to program responsibilities, I establish and maintain the Ministry's financial administration and reporting functions. The Ministry maintains systems of financial management and internal control, which give consideration to costs, benefits and risks that are designed to:
- provide reasonable assurance that transactions are properly authorized, executed in accordance with prescribed legislation and regulations, and properly recorded so as to maintain accountability of public money,
- provide information to manage and report on performance,
- safeguard the assets and properties of the Province under Ministry administration,
- provide Executive Council, Treasury Board, the Minister of Finance and the Minister of Agriculture, Food and Rural Development any information needed to fulfill their responsibilities, and
- facilitate preparation of Ministry business plans and annual reports required under the Government Accountability Act.
In fulfilling my responsibilities for the Ministry, I have relied, as necessary, on the executive of the individual entities within the Ministry.
[Original Signed by]
Barry Mehr
Deputy Minister
Ministry of Agriculture, Food and Rural Development
September 8, 2005
Overview
Chart of Ministry Entities
Entities - Ministry of Agriculture, Food and Rural Development
Department
The Ministry is divided into the Department of Agriculture, Food and Rural Development and a number of agencies, boards and commissions. The Department is responsible for the management of programs designed to facilitate the development of all phases of the agriculture and food industry, to sustain the natural resource base of the industry and to encourage the development of rural communities. Visit the Ministry web site at http://www.agric.gov.ab.ca
Agriculture Corporate Services
#300, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-2179
Responsible for all revenues and expenditures, development and review of financial systems and procedures, coordination of the budgetary process and coordination of facilities required for the working environment of departmental staff.
Develops and administers human resource programs (staff and organization development, occupational health and safety, classification and compensation, recruitment and selection, employee relations and pay and benefits administration) to advise and assist line management in achieving its strategic objectives.
Provides effective support services to the Department in the area of electronic data processing development, maintenance and use.
Agriculture Information Division
#100A, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-2727
Responsible for the planning, development, organization and evaluation of information programs including publishing, multi-media and executive communications. The Division also administers the Ministerial Action Request System, Legislation, Regulatory Review, Ministerial Orders and Freedom of Information and Protection of Privacy, and the Division is responsible for Records Management.
Communications Branch
#100A, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 422-7099
Provides communications planning and consulting support to the Minister, Deputy Minister and Department. Develops and implements public communications programs that support the Department and the government through cross-ministry initiatives in meeting its business plan goals. Manages media relations, including the province-wide distribution of news releases and coordination of Department announcements and news conferences.
Planning and Competitiveness Sector
Policy Secretariat
#300, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 422-2070
Provides advice and recommendations and undertakes corporate projects to improve the policy and planning decisions of the Ministry. The Secretariat examines domestic, national and international policies, assesses their potential impact on Alberta's agriculture and food industry and makes recommendations on how the Ministry should respond to these challenges. The Secretariat currently concentrates on emerging issues in trade, innovation/biotechnology, research, environment, land use planning and domestic policy.
Economics and Competitiveness Division
#303, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 422-3771
Provides economic data and analysis expertise to assist the Alberta industry to optimize opportunities in agri-food products and services. Functions include applied economic and competitiveness analysis, benchmarking/forecasting as well as analysis of international markets, consumer behavior and emerging industry trends. Building on economic and market research, the Division formulates strategies and assesses economic impacts for agriculture and food issues.
Responsible for playing an advocacy role for Alberta's agriculture and agri-food industry at key forums, conferences and bilateral discussions with the U.S. and other priority trading partners.
Rural Services Division
#200, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 422-9167
Responsible for the delivery of several farm income assistance programs, Alberta Farm Fuel Benefit Program, Alberta Farm Credit Stability Program, Feeder Association Loan Guarantee and disaster compensation under the federal Disaster Financial Assistance arrangements. Also responsible for program policy development, program evaluation and negotiating and managing federal cash flow requirements under the Agricultural Policy Framework and managing Alberta's obligations under specific federal/provincial bilateral companion agreements.
Promotes community-based, economically sustainable rural development by directing and supporting rural organizations and services such as agricultural service boards, agricultural societies, agricultural development committees, 4-H clubs and councils and recommending policy in rural development.
Responsible for coordinating and delivering educational, leadership and training programs such as 4-H, Green Certificate, employment experience programs, home study, agriculture in the classroom and farm safety in partnership with communities and other agriculture organizations.
Rural Development Initiative
#200, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 422-4920
The unit is responsible for developing and managing the implementation of the rural development strategy for the Province. The unit assists the Assistant Deputy Minister Cross Ministry Committee in coordinating the strategies and actions to support rural development in ministry business plans through a cross ministry initiative. The Initiative also provides support to the Task Force on Rural Development and assists the Task Force in their review of rural issues and the preparation of their recommendations to the Minister and government. The unit also provides input and liaison in partnership with the federal government to establish a national rural framework that will lead to the setting of national priorities for rural development as well as set the stage for possible future federal-provincial bi-lateral agreements.
Rural Utilities Branch
Fifth Floor, Petroleum Plaza North Tower 9945 - 108 Street Edmonton, Alberta T5K 2G6 (780) 427-1930
The Branch administers the Rural Gas, Rural Electric and the Remote Area Heating Allowance (RAHA) program areas. The Rural Gas and Rural Electric are cost-sharing programs that help defray the high cost of constructing natural gas and electrical systems in rural areas. The RAHA program provides rebates to the cost of propane or fuel oil for individuals who are unable to obtain natural gas service at a reasonable cost.
The Branch also administers the Rural Utilities Act, which provides the framework for the establishment and business affairs for approximately 280 rural gas, electric and water associations in the province. In addition, the Branch also administers the Gas Distribution Act, which governs the issuing of franchise areas and the setting of all standards relating to the design, construction, operation, maintenance, quality assurance and plant records for rural gas utilities.
Industry Development Sector
Ag-Entrepreneurship Division
4709 - 44 Avenue Stony Plain, Alberta T7Z 1N4 (780) 968-3512
Strives to foster the people who create and develop new products and enterprises (including new services, technologies and uses) through diversification, access to new markets and/or adding value to existing products. The Division delivers results by leading projects that inspire new agri-entrepreneurs, expand the capacity of existing agri-entrepreneurs, cultivate new networks and remove barriers that impede agri-entrepreneurship growth and development.
Agri-Food Investment Division
#304, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-7366
Attracts new investment to establish and expand agri-food processing and primary production in Alberta. Assists companies/investors to identify and evaluate investment opportunities, locate sources of capital, develop industry partnerships/alliances/joint ventures, complete feasibility studies and select site locations. Supports municipalities in the development of water/wastewater infrastructure for agricultural processing and administers funding under the Municipal Industrial Wastewater Infrastructure Program.
Business and Innovation Division
#304, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-3166
Promotes the growth and prosperity of Alberta's agriculture, agri-industrial and agri-food industries. The Division's team of experts combines business knowledge with technical expertise to guide clients to maximize profits and growth. Works with producers, agri-processors and affiliated associations to capitalize on market opportunity, open doors to new markets and assist in the development of new products and/or processes, all with a focus on business management strategies. The Division's mandate is to help producers and agri-processors grow their businesses, resulting in a stronger Alberta agricultural industry.
Crop Diversification Division
#204, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-5341
The Division is dedicated to developing new technologies and agronomic information research (genetic improvement, agronomy, integrated pest management, technology transfer), which increases the net return to producers and the value of crops grown in the province. The Division's primary focus is on three goals: diversifying Alberta's crop economy through new crops, new classes and new quality factors that command a premium, continued advances in technology to keep producers competitive in a global market and proactive initiatives to prevent losses through integrated pest management.
Livestock Development Division
#204, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-2166
Supports growth in the livestock, livestock products and forage industries by providing new technology to adjust to shifts in consumer demand and to remain competitive with other areas of the world. The Division uses technical expertise, applied research and information packages to support industry access to global markets. Collaborates in the design and implementation of safe food production systems, sustainable environmental initiatives and essential policies related to the livestock industry.
Processing Development Division
6309 - 45 Street Leduc, Alberta T9E 7C5 (780) 986-4793
Focuses on value-added processing of agriculture commodities through laboratory development and pilot plant scale-up to develop new products, establish new technologies and improve existing processes. The work is done through the four units: the Food Processing Development Centre, the Centre for Agri-Industrial Technology, the Food Science and Technology Program and the Sensory Evaluation Program.
The Processing Development Division has a strong focus on the development of new companies. Further enhancement of this capability will occur upon completion of the Agrivalue Processing Business Incubator now under construction.
Program Information Services Division
#304, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 644-2401
Provides leadership in setting the strategic direction of the Industry Development Sector, updating and reporting on the Growth Strategy, and partnering with Alberta Innovation and Science in the implementation of Alberta's Agriculture Research and Innovation Framework. Operates the Alberta Ag-Info Centre, which serves as contact point for commercial agricultural inquiries from producers and others in the Alberta agriculture community.
Sustainable Agriculture Sector
Food Safety Division
#300, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-6159
Provides leadership and support for safe food production systems and global market access for Alberta's agriculture and food industry through information, services and administration of legislation.
Includes partnership in food safety emergency response, support for development of on-farm production protocols, assistance with Hazard Analysis Critical Control Point program implementation for slaughter and food processing plants, inspection of provincial slaughter plants, dairy farm inspection, food safety surveillance, animal health surveillance and provision of essential non-routine diagnostic services.
Irrigation Secretariat
#328, Provincial Bldg. 200 - 5th Avenue South Lethbridge, Alberta T1J 4L1 (403) 381-5176
Provides administrative support to the Irrigation Council, administers the Irrigation Rehabilitation Program and works with irrigation districts to ensure compliance with the Irrigation Districts Act.
Resource Management and Irrigation Division
#206, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 422-4596
Provides policy advice and oversees the planning, delivery and evaluation of irrigation management and development as well as environmentally sustainable agriculture programming.
Program areas include soil conservation, water and air quality, greenhouse gases and climate change, irrigation development and management as well as resource conservation. Also manages the Alberta Environmentally Sustainable Agriculture program.
Technical Services Division
#306, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-0674
Directs and coordinates programs and policies to support the sustainable growth of the agriculture industry through research, testing and evaluation of technology and equipment, development of legislation and technical standards for confined feeding operations, and quality farm water supplies for domestic and livestock use.
Program areas include livestock welfare, engineering services, on-farm water management and environmental practices related to sustainable livestock and crop production.
Agencies, Boards and Commissions
Agriculture Financial Services Corporation (AFSC)
Lacombe Central Office 5718 - 56 Avenue Lacombe, Alberta T4L 1B1 (403) 782-8200
Camrose Central Office 4910 - 52 Street Camrose, Alberta T4V 4E8 (780) 679-1311
AFSC provides a wide variety of risk management products and financial services to fit the business needs of farmers, the agriculture industry and small businesses in Alberta. It offers unique financial products and services not readily available from conventional sources to the industry.
AFSC provides insurance products to mitigate risks related to crop production, including hay and pasture. AFSC also offers waterfowl and wildlife damage compensation, to help Alberta farmers protect against production losses on their farms. It also delivers the Canadian Agricultural Income Stabilization (CAIS) Program, a whole-farm program that provides compensation of decline in farm margin relative to historical margin for eligible producers regardless of the commodities they produce. AFSC offers agriculture financial services such as farm loans, guarantees and business analysis services for beginning and developing farmers, financial counseling and financing for those facing disastrous reductions in farm production or income. AFSC also provides and facilitates sourcing of financing for companies in the agri-food and value added industry, as well as the small business sector.
AFSC produces a separate annual report.
Alberta Grain Commission
#305, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-7329
Provides policy recommendations to the Minister on any matter pertaining to the grain industry via its ongoing review of all facets of the grains industry. Provides a daily grain price information service.
Irrigation Council
#328, Provincial Bldg. 200 - 5th Avenue South Lethbridge, Alberta T1J 4L1 (403) 381-5176
Established under the Irrigation Districts Act. Makes recommendations to the Minister on any matter under the Act. Sets policies and approves expenditures for the Irrigation Rehabilitation Program. Monitors irrigation district activities as outlined in the Act.
Agricultural Products Marketing Council
#305, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-2164
Advises the Minister on matters relating to the establishment, operations and control of the boards and commissions established under the Marketing of Agricultural Products Act. Provides assistance and advice to boards and commissions in support of their efforts in the areas of market development, research, promotion and strategic planning.
Farmers' Advocate of Alberta
#305, J.G. O'Donoghue Bldg. 7000 - 113 Street Edmonton, Alberta T6H 5T6 (780) 427-2433
Provides the Minister with information on issues concerning rural Albertans. Works closely with agricultural interest groups, Alberta Environment, Alberta Energy, Alberta Sustainable Resource Development and other levels of government to formulate policy recommendations and procedures that affect the rural community. Works with surface rights groups and landowners on surface lease and freehold mineral lease issues. Provides dispute resolution services, advice and information to individual farmers or agricultural associations on issues that affect rural Albertans.
Administers the Farm Implement Act, Farm Implement Dealerships Act, Water Well Restoration or Replacement Program, Wild Fire Cost Assessment Review and Part 1 of the Agricultural Operation Practices Act.
Operational Overview
Ministry's Core Businesses
The Ministry contributes to the government's three core businesses: People, Prosperity and Preservation. The primary focus of Alberta Agriculture, Food and Rural Development is on the second core business - working with others to promote prosperity for Alberta through a strong, competitive, sustainable agriculture and food industry.
Ministry core businesses:
- Facilitate sustainable industry growth
- Enhance rural sustainability
- Strengthen business risk management
Each of the five Ministry goals contributes to the achievement of these core businesses. The results constitute the role of Alberta Agriculture, Food and Rural Development in contributing to the Government of Alberta's core performance measures. The Results Analysis section of this annual report presents a comprehensive discussion of the Ministry goals, the contributions to the cross-ministry initiatives, performance measures and results of operations for the fiscal year 2004-2005.
Costs for Core Businesses
(unaudited)
 | (thousands of dollars) |
| Core businesses | 2004-2005
Estimates | 2004-2005
Actual | 2003-2004
Actual
(Restated) |
| Facilitate sustainable industry growth | $212,095 | $291,970 | $239,320 |
| Enhance rural sustainability | 42,015 | 45,012 | 39,305 |
| Strengthen business risk management | 707,212 | 999,102 | 1,268,538 |
| Ministry expense | $961,322 | $1,336,084 | $1,547,163 |
Highlights of changes in the Ministry's spending are as follows:
Facilitate sustainable industry growth - expenses increased by $79.9 million over budget primarily due to the creation of the Beef Market and Retention fund and due to funding for ongoing research into the development, production and marketing of value-added products, creating commercial uses for specified risk materials and beef product and market development. Expenses were $52.6 million higher than 2003-2004 as a result of market research and development initiatives in response to the effects of BSE.
Enhance rural sustainability - expenses were $5.7 million higher than 2003-2004 primarily due to increased funding for irrigation infrastructure projects.
Strengthen business risk management - expenses increased by $291.9 million over budget primarily due to increased BSE-related support payments for the Canadian Agricultural Income Stabilization (CAIS) program and other BSE Recovery program expenses offset by decreased crop insurance indemnity payments. Expenses decreased by $269.4 million from 2003-2004 because of reduced BSE-related support payments.
Expense by Function
All Ministry expenses, with the exception of debt servicing costs, are reported under the Government of Alberta function: Agriculture, Resource Management and Economic Development.
Overall Ministry Operations and Services
Here are the overall Ministry budget and actual operating results for all Ministry entities:
(unaudited)
(millions of dollars) |
| 2004-2005
Budget | 2004-2005
Actual | 2003-2004
Actual |
| Revenues | $549 | $793 | $827 |
| Expenses | 961 | 1,336 | 1,547 |
Excess of expenses
over revenues | $412 | $543 | $720 |
Results analysis (PDF-593 KB)
Financial Statements
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