• Accountability Statement
• The Ministry
• Link to the Government Business Plan
• Vision
• Mission
• Core Businesses 
• Significant Opportunities and Challenges 
• Strategic Priorities 2004-07
• Core Businesses, Goals, Strategies and Measures
  • Core Business One: Facilitate Sustainable Industry Growth
    • Goal 1:  Sustainable growth of the agriculture and food industry
    • Goal 2:  Continued excellence in food safety
  • Core Business Two:  Enhance Rural Sustainability
    • Goal 3: Improved environmental stewardship
    • Goal 4: Strengthened rural communities
  • Core Business Three:  Strengthen Business Risk Management
    • Goal 5: Effective business risk management programming
• Expense by Core Business
• Ministry Statement of Operations
• Consolidated Net Operating Result

This Business Plan for the three years commencing April 1, 2004 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 February 27, 2004 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]

Shirley McClellan, Minister of Agriculture, Food and Development
March 4, 2004

THE MINISTRY

The Ministry is comprised of the Department of Agriculture, Food and Rural Development (AFRD); Agriculture Financial Services Corporation (AFSC); Farmers' Advocate; Irrigation Council; Agricultural Products Marketing Council; and Alberta Grain Commission. 

The Ministry contributes to the government's three core businesses: People, Prosperity and Preservation and the following seven government goals: 6, 7, 8, 9, 10, 11 and 12. Our primary focus is on the second core business – working with others to promote prosperity for Alberta through a strong, competitive, sustainable agriculture and food industry.

VISION

Prosperous, sustainable Alberta farms, processors, agricultural businesses and rural communities.

MISSION

"To enable the growth of a globally competitive, sustainable agriculture and food industry through essential policy, legislation, information and services."

CORE BUSINESSES

Core Business 1: Facilitate Sustainable Industry Growth

Goal 1 - Sustainable growth of the agriculture and food industry
Goal 2 - Continued excellence in food safety

Core Business 2: Enhance Rural Sustainability

Goal 3 - Improved environmental stewardship
Goal 4 - Strengthened rural communities

Core Business 3: Strengthen Business Risk Management

Goal 5 - Effective business risk management programming

SIGNIFICANT OPPORTUNITIES AND CHALLENGES

The agriculture industry has suffered successive years of low moisture culminating, in 2002, in the worst drought in recorded history. Additionally, the global reaction to a single confirmed instance of Bovine Spongiform Encephalopathy (BSE) in Alberta and another instance of BSE linked to Alberta has created significant challenges for our industry. The Ministry will continue to partner with industry and other governments as we support the industry to recover from the longer-term impacts of these events. It is expected that these events will result in revisions to Ministry programming in 2004 and in future years.

Federal, provincial and territorial ministers of agriculture have negotiated the implementation of an "Agricultural Policy Framework". This five-year agreement will continue to impact the strategic direction in this and future plans. The objectives of the five chapters of the Agricultural Policy Framework are linked to the goals in this plan.

Strategies for rural development, growth and research and development are at various stages of development and implementation. These initiatives will continue to impact the future direction of the department and its programming in 2004 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 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.

The Agriculture Growth Strategy has been developed to support growth throughout Alberta. To ensure rural Albertans will benefit from the Agriculture Growth Strategy, consideration will need to be given to targeting specific initiatives for implementation not only along the Calgary-Edmonton corridor, but in other areas of the province.

The creation of the Institute of Food and Agricultural Sciences, Alberta (IFASA) will help to reinforce Alberta's commitment to research and development. The IFASA is the result of a Memorandum of Understanding (MOU) among the Alberta Research Council, the University of Alberta and AFRD. The IFASA may enable internationally recognized, multidisciplinary research programs, which have critical mass, to be built. The MOU is also expected to help strengthen Alberta's applied research and technology commercialization capacity.

STRATEGIC PRIORITIES 2004-07

CORE BUSINESSES, GOALS, STRATEGIES AND MEASURES

CORE BUSINESS 1:  Facilitate Sustainable Industry Growth

Goal 1: Sustainable growth of the agriculture and food industry

What it means

This goal recognizes that industry growth is the outcome of long-term profitability arising from a competitive agriculture and food industry focused on 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.

It is the role of the Ministry to work to enhance market access (e.g., animal and plant disease) for agriculture and food industry products and to improve agriculture and food industry business services. These services include access to capital, risk management tools, business and entrepreneurial processes and enhanced infrastructure.

To achieve this goal, the Ministry will incorporate the objectives of the Agriculture Growth Strategy, Securing Tomorrow's Prosperity (the value-added strategy), the Research and Innovation Strategic Framework and the Rural Development Strategy (Economic Development Strategy) into the appropriate division operating plans.

Strategies

• Encourage market access, market responsiveness, diversity and industry competitiveness through the provision of information, technology and targeted research.
• Enhance efficiencies in production and processing through the delivery of business and technical information and services.
• Facilitate capital investment in the agriculture and food industry through opportunity identification, evaluation, lending products and providing risk management* tools and training.
• Enhance the development of new products and processes to assist industry in capturing additional value added market opportunities.
• Develop and administer essential policy, legislation and regulation.
• Advocate policies and programs that facilitate market access, human resource development and industry competitiveness.
• Work with partners to ensure that appropriate infrastructure is in place.

* For business risk management detail, reference Core Business 3.

Measures

GOAL 2:  Continued excellence in food safety

What it means

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 implementation of food safety process control systems throughout the food production continuum, through development and administration of essential food safety legislation, regulations and policy and through food safety surveillance systems that ensure consumer confidence and market access. These initiatives support the development of a national approach to food safety as identified in the Agricultural Policy Framework food safety and food quality chapter.

Strategies

• Facilitate adoption of internationally accepted food safety systems and standards in production and processing of Alberta food.
• Develop, implement and maintain a food safety surveillance system that validates the safety of Alberta's agriculture and food products.
• Develop and administer essential policy, legislation and regulation.
• Develop and transfer knowledge and technology in support of safe food production and processing.
• Provide information, training and other programs that enhance food safety awareness and emergency response.
• Participate, as appropriate, in national traceability initiatives.

Performance Measures

CORE BUSINESS 2:  Enhance Rural Sustainability

GOAL 3: Improved environmental stewardship

What it means

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 divisional operational plans.

Strategies

• Support and conduct applied/adaptive research and evaluations to find economically sound, environmentally friendly technologies and management practices for crop and livestock production and agricultural processing.
• Transfer integrated technology and knowledge to assist the industry in becoming more environmentally sustainable, including provision of support for adoption of environmental farm plans.
• 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.
• Monitor the effect of the agricultural production and processing industry on soil and water quality.

Performance Measures

GOAL 4: Strengthened rural communities

What it means

This goal recognizes that vibrant and sustainable rural communities are one component of a prosperous province. The Ministry contributes to this goal by working to strengthen rural communities through involvement in facilitation, leadership development and infrastructure development.

The Ministry has a lead role in coordinating rural development initiatives, under the Economic Development Strategy. Implementing the Rural Development Strategy will facilitate cooperative efforts to ensure a balanced emphasis on social, economic and environmental priorities by all stakeholders in support of community prosperity.

Strategies*

• Provide leadership development for youth and people actively engaged in agriculture and community organizations.
• Facilitate the development of sustainable communities, organizations and agricultural and rural businesses that are networked, flexible, adaptable and manage change pro-actively and positively.
• Co-ordinate a multi-ministry approach to rural development.

* Many of the strategies of this Ministry included under other goals also contribute to “Strengthened Rural Communities”.

Performance Measures

CORE BUSINESS 3:  Strengthen Business Risk Management

GOAL 5: Effective business risk management programming

What it means

This goal recognizes the need for greater stability in an industry significantly affected by unforeseen weather disasters, disease and global market influences. Increased stability coupled with targeted business management information and training allows farmers to concentrate their management efforts on adoption of the most economically sustainable management practices for their area. The Ministry contributes to this goal by providing appropriate support through programs such as the Canadian Agricultural Income Stabilization Program, crop insurance*, drought preparedness and disaster recovery initiatives.

* Crop insurance programs are designed to be actuarially sound over a 20-year time frame.
Crop insurance program expenses are offset by projected premium contributions from the
federal government and producers. These contributions are reported in the budgets
for "Transfers from Government of Canada" and "Premiums, Fees and Licenses", in the
Ministry Statement of Operations.

To achieve this goal the ministry will incorporate the objectives of the business risk management chapter of the Agricultural Policy Framework into appropriate division operating plans.

Strategies

• Stabilize farm income by providing Alberta farmers with effective and efficient business risk management programs.\
• Ensure business risk management programs are delivered effectively and have the flexibility to meet producer needs.
• Through the Agricultural Policy Framework process, implement enhancements to business risk management programs to better respond to changing global market influences.
• Respond to issues resulting from recurring drought by continuing to administer the Agriculture Drought Risk Management Plan.
• Facilitate the development of business interruption insurance for agriculture. 

Performance Measures

EXPENSE BY CORE BUSINESS

MINISTRY STATEMENT OF OPERATIONS

CONSOLIDATED NET OPERATING RESULT

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