ACCOUNTABILITY
STATEMENT |
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The business plan for the three years commencing April 1,
2006 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 of March 7, 2006 with material economic or fiscal implications
of which I am aware have been considered in preparing the
business plan.
The Ministry's priorities outlined
in the business plan were developed in the context of the
government's business and fiscal plans. I am committed to
achieving the planned results laid out in this business plan.
[Original Signed]
Doug Horner, Minister of
Agriculture, Food and Rural Development
March 7, 2006
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THE
MINISTRY |
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The Ministry
of Agriculture, Food and Rural Development (AFRD) consists
of the Department of Agriculture, Food and Rural Development
and Agriculture Financial Services Corporation (AFSC). The
Ministry is also responsible for the Office of the Farmers'
Advocate; Irrigation Council; Agricultural Products Marketing
Council; and Alberta Grain Commission.
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VISION |
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Growing Alberta farms, processors, and all other agricultural
businesses along with vibrant rural communities.
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MISSION |
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To enable the growth of a globally competitive, sustainable
agriculture and food industry through essential policy, legislation,
information and services in partnership with vibrant rural
communities.
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CORE
BUSINESSES |
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Core Business 1: Facilitate Sustainable Industry Growth
Core Business 2: Enhance Rural Sustainability
Core Business 3: Strengthen Business Risk Management
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LINK
TO THE GOVERNMENT OF ALBERTA STRATEGIC BUSINESS PLAN |
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Agriculture,
Food and Rural Development contributes to Goal 1: Alberta
will have a diversified and prosperous economy, under the
key opportunity of Unleashing Innovation. The Ministry contributes
to this goal by facilitating the growth of the agriculture
industry through several programs and functions, including
implementing the Agriculture Growth Strategy and the Six-point
Recovery Strategy. The Ministry also works to secure a stronger
future for rural Alberta through implementation of the Rural
Development Strategy.
The Ministry contributes to Goal
14: Alberta will have a supportive and sustainable infrastructure
that promotes growth and enhances quality of life, under the
Capital Plan. This is done by providing cost-shared funding
to Alberta's 13 irrigation districts to rehabilitate the districts'
water conveyance infrastructure, supporting municipalities
to develop water/wastewater infrastructure for agricultural
processing and administering funding under the Municipal Industrial
Wastewater Infrastructure Program.
The Ministry also contributes
to Goal 8: Alberta will have a financially stable, open and
accountable government, under the key opportunity of Making
Alberta the Best Place to Live, Work and Visit. This contribution
is made by servicing the debt incurred by the Agriculture
Financial Services Corporation (AFSC) in providing service
to its clients.
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SIGNIFICANT
OPPORTUNITIES AND CHALLENGES |
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The Ministry will continue to partner with industry and other
governments as we support the industry in strengthening its
position globally in its recovery from the longer-term impacts
of Bovine Spongiform Encephalopathy (BSE) and successive years
of drought and ongoing cost competitiveness issues. The erosion
of equity resulting from these events increases the need for
innovative long-term solutions to mitigate these types of
risk. These events, combined with the opportunity to grow
the value-added industry, will continue to result in revisions
to Ministry programming in 2006 and in future years, ensuring
the industry is poised to grow and diversify beyond its pre-BSE
strength.
The Agricultural Policy Framework
(APF) continues to impact the strategic direction in this
plan. The objectives of the five chapters of the APF are linked
to the goals in this plan. Negotiation of the next phase of
the Framework will require ongoing effort in partnership with
industry to allocate resources for the implementation of components
of the strategy. Opportunities to appropriately align Alberta's
policies and processes with national and international developments
and opportunities, such as food policies, environmental goods
and services and biowaste management will need to be explored.
Strategies for rural development,
growth and research and development are at various stages
of implementation. These initiatives will continue to impact
the future direction of the Ministry and its programming in
2006 and beyond.
Current conditions in the agriculture
and food industry clearly demonstrate the susceptibility to
inherent risks such as poor weather, declines in global commodity
prices and exchange rates, and changes in the overall economy.
While the Ministry's strategic direction is outlined, it is
acknowledged that from year to year, changes must be made
to accommodate specific developments. Monitoring of world
trade issues, including food policy challenges and the associated
impacts on legislative and regulatory frameworks will require
ongoing management.
The Institute of Food and Agricultural
Sciences, Alberta (IFASA) is a collaboration among the Alberta
Research Council, the University of Alberta and AFRD. IFASA
will enable internationally recognized, multidisciplinary
research programs, which have critical mass, to be built,
strengthening Alberta's applied research and technology commercialization
capacity.
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STRATEGIC
PRIORITIES 2006-09 |
Through
the Ministry's review of environmental factors, the strategic
priorities described below have been identified. These are in
addition to the important ongoing core activities of the Ministry.
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1.
The Rural Development Strategy
Linkage:
Goal 4 |
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The Rural Development Strategy is a cross-government strategy
and is being implemented through rural-focused initiatives
within each ministry. The Ministry of Agriculture, Food and
Rural Development is responsible to coordinate a collaborative,
cross-ministry approach that delivers an integrated suite
of programs and services to rural Albertans. In addition to
implementing their own specific initiatives, the Ministry
is also responsible for fostering community engagement and
providing opportunities and mechanisms for government to hear
and respond to rural based needs, issues and concerns. Funding
has been allocated to support community based projects to
respond to the recommendations of government's Rural Development
Strategy. |
2.
The Agriculture Growth Strategy
Linkage:
Goals 1 and 4 |
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The
industry opportunity to sustainably grow primary agricultural
production to $10 billion and value-added industry to $20
billion by 2010 will be achieved through the implementation
of the growth strategy by industry. The Ministry will continue
to work in partnership with industry to clearly articulate
outcomes in both qualitative and quantitative terms, including
the development of appropriate levels of slaughter capacity,
to facilitate achievement. |
3.
The Research and Innovation Strategic Framework
Linkage:
Goals 1, 2, 3 and 4 |
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Longer-term
achievement of the Ministry's vision and mission will be dependent
on industry's ability to support strategically targeted research
in the agriculture and food industry. The Ministry will focus
efforts on the components of the Research Strategy in partnership
with industry and Innovation and Science. |
4.
Animal Health and Food Safety Surveillance
Linkage:
Goals 1 and 2 |
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The
Ministry and the province's cattle industry are committed
to implementing processes that will help maintain Canada's
status as a minimal risk country and promote Alberta's safe
food practices as among the best in the world helping to contribute
to the growth of the industry. |
5.
Business Risk Management
Linkage:
Goals 1, 4 and 5 |
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The susceptibility
of the agriculture and food industry to inherent risks evidences
the need for a continued strategic focus on business risk
management. The Ministry will continue to work in partnership
with industry and other governments to help business managers
make the decision necessary to mitigate the impacts of these
risks. |
6.
Six-point Recovery Strategy
Linkage:
Goals 1, 2 and 6 |
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The Ministry's
Six-point Recovery Strategy will require continued commitment
from Ministry officials in assisting the beef industry in
its recovery from the impacts of BSE. The six elements of
the strategy include addressing slaughter capacity, new product
development, set-aside programs, surveillance, the Canadian
Agricultural Income Stabilization Program as well as research
initiatives. |
7.
Using and Respecting the Land
Linkage:
Goals 1 and 3 |
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Agriculture,
Food and Rural Development is working with other ministries
to develop a land use framework for effective management of
competing land use interests to preserve Alberta's high quality
of life and continued economic prosperity. The framework will
consider the needs, perspectives and issues of all Albertans,
including the agricultural industry, working agricultural
landscapes and the natural capital value of those landscapes. |
8.
Water for Life: Alberta's Strategy for Sustainability
Linkage:
Goals 1, 3, 4, 5 and 6 |
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Water
for Life: Alberta's Strategy for Sustainability is a comprehensive,
10-year strategy for water and watershed management in the
province. Implementing the Water for Life Strategy is a key
strategic priority of the 2006-09 business plan. Agriculture,
Food and Rural Development, along with a number of other ministries,
is working collaboratively to ensure the outcomes of the strategy
– safe, secure drinking water; healthy aquatic ecosystems;
and reliable, quality water supplies for a sustainable economy
– are achieved. |
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CORE
BUSINESSES, GOALS, STRATEGIES & PERFORMANCE MEASURES:
Core Business One: Facilitate Sustainable Industry Growth |
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Sustainable growth of the agriculture and food industry |
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This goal recognizes
that industry growth is the outcome of long-term profitability
arising from a competitive agriculture and food industry focused
on consumer-driven market opportunities. The Ministry contributes
to this goal by encouraging new and diversified product development
and investment (primary and value-added food and non-food
products) and facilitating long-term sustainable growth in
established sectors.
To achieve this goal, the Ministry
will incorporate the objectives of the following initiatives
into the appropriate division operating plans:
- Alberta's Agriculture Growth
Strategy,
- Securing Tomorrow's Prosperity
(A Strategy for Sustaining the Alberta Advantage),
- Alberta's Agriculture Research
and Innovation Strategic Framework,
- A Place to Grow – Alberta's
Rural Development Strategy, and
- Agricultural Policy Framework.
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1.1 Encourage
development of new products, processes and services that respond
to new market opportunities and enhance diversity.
1.2 Facilitate capital investment
in the agriculture and food industry through opportunity identification,
evaluation and lending products.
1.3 Advocate policies/programs
and develop networks that facilitate market access, human
resource development, industry competitiveness and add value
to primary production.
1.4 Develop and administer essential
policy, legislation and regulations.
1.5 Deliver targeted research,
technology, information and services to enhance competitiveness
and market access.
1.6 Work with partners to ensure
that appropriate physical infrastructure is in place. |
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Continued excellence in food safety |
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This goal recognizes
that a reputation for excellence in food safety is essential
to maintain consumer confidence and expand markets, both domestic
and international.
The Ministry contributes to this
goal by promoting or directing implementation of food safety
systems in the production of food. This is achieved through
essential food safety legislation, regulations, policy and
education, and through surveillance systems that support consumer
confidence and market access. These initiatives support the
development of a national approach to food safety as identified
in the Agricultural Policy Framework. |
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2.1 Facilitate
adoption of internationally accepted food safety systems and
standards in production and processing of Alberta food.
2.2 Maintain a continually improving
surveillance system that validates and identifies opportunities
for enhancing the safety of Alberta's agriculture and food
products.
2.3 Review and administer essential
policy, legislation and regulation, and facilitate emergency
response.
2.4 Develop and transfer knowledge
and technology in support of safe food production and processing.
2.5 Deliver information, training
and other programs that enhance food safety awareness and
supports access to domestic and international markets.
2.6 Represent the Province's
interests in national, provincial and industry food safety
and traceability initiatives. |
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Core
Business Two: Enhance Rural Sustainability |
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Improved environmental stewardship |
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This goal recognizes
it is the role of the Ministry to assist the agriculture and
food industry to maintain or improve Alberta's air, water
and soil for the well being of current and future generations.
The Ministry contributes to this goal through essential policy,
legislation, information and services related to soil conservation,
water quality, air quality, climate change and biodiversity.
To achieve this goal the Ministry
will incorporate the objectives of the Environment Chapter
of the Agricultural Policy Framework, Water for Life: Alberta's
Strategy for Sustainability, the Agriculture Growth Strategy,
the Rural Development Strategy and the agricultural components
of the provincial Climate Change Strategy into appropriate
division operating plans. |
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3.1 Support and
conduct applied/adaptive research and evaluations to develop
economically sound, environmentally friendly beneficial management
practices for relevant areas of crop and livestock production
and agricultural processing.
3.2 Transfer integrated technology
and knowledge to assist the industry in becoming more environmentally
sustainable, including provision of support for adoption of
environmental farm plans.
3.3 In consultation with the
industry and other involved ministries, provide guidelines,
standards, regulations and legislation for environmental performance
requirements to sustain the quality of Alberta's soil, water
and air.
3.4 Monitor the effect of the
agricultural production and processing industry on soil and
water quality. |
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Strengthened rural communities |
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This
goal recognizes that sustainable rural communities with increased
human and business capacity are components of a prosperous
province. The Ministry contributes to this goal by working
to strengthen rural communities through facilitating leadership
and skill development, business growth and development and
community infrastructure.
To achieve this goal, the Ministry
will incorporate the priorities of the Rural Development Strategy. |
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4.1
Provide leadership and skill development for youth and adults
actively engaged in agriculture and community organizations
and rural businesses.
4.2 Facilitate the development
and sustainability of rural communities and organizations
to be flexible, adaptable and manage change.
4.3 Facilitate the growth and
development of sustainable agricultural and rural businesses.
4.4 Coordinate a collaborative,
cross-ministry approach to the implementation of the Government
of Alberta Rural Development Strategy. |
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Core
Business Three: Strengthen Business Risk Management |
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Effective risk management decisions by agricultural business
managers |
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This goal recognizes
the business risk associated with production affected by weather
extremes, disease epidemics and unforeseen global market influences.
Cooperative efforts by service providers will target business
management training and information dissemination, allowing
managers to adopt the most economical and effective management
practices to sustain their business. "Agri-business manager"
is an inclusive term indicating the range of industry people,
from primary to value added, using risk management tools in
decision-making. This goal is manager-driven. The manager
makes the decisions, not government on behalf of the manager. |
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5.1 Determine
risk management information needs of business managers in
the primary and value added sectors.
5.2 Collect, develop and distribute
data and information to support business risk management decisions
in the primary and value added sectors.
5.3 Facilitate development and
use of analytical tools to proactively identify, measure and
manage business risk in the primary and value added sectors.
5.4 In collaboration with the
private sector, provide information and training on business
risk management tools and strategies in the primary and value
added sectors. |
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Effective programs for industry competitiveness and growth |
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This
goal recognizes the need for pro-active financial risk management
programming and disaster support in the absence of effective
private sector tools when natural and market events occur
that are beyond agri-business managers' control. Industry
stability is desirable from a Ministry perspective as it helps
agri-businesses recover from disaster events and facilitates
overall industry growth.
The Ministry contributes to this
goal by continuously improving appropriate programs such as
the Canadian Agricultural Income Stabilization (CAIS) Program,
Production Insurance and disaster recovery initiatives. |
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6.1
Design and deliver production risk and income stabilization
programs through the Agricultural Policy Framework Agreement.
6.2 Develop and deliver specific
programs that increase industry competitiveness.
6.3 Develop programs, where appropriate,
that respond to significant events that impact business sustainability. |
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EXPENSE
BY CORE BUSINESS |
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MINISTRY
STATEMENT OF OPERATIONS |
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CONSOLIDATED
NET OPERATING RESULT |
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