News release

ALBERTA SIGNS AGRICULTURAL POLICY FRAMEWORK IMPLEMENTATION AGREEMENT

EDMONTON, AB., June 4, 2003 - New and better agricultural programs will soon be in place in Alberta following today's signing of an agreement to implement the Agricultural Policy Framework in the province.

Agriculture and Agri-Food Minister Lyle Vanclief and and Alberta Deputy Premier and Minister of Agriculture, Food and Rural Development Shirley McClellan announced the agreement at a news conference.

"It is important that we move forward with the delivery of new and better-designed programming to Canadian producers," said Mr. Vanclief. "With the signing of this federal-provincial agreement, that new and more comprehensive agricultural programming is on the way for farmers in Alberta. This agreement means producers will be given access to the tools they need to better deal with their current and future needs."

Mrs. McClellan said, "Today's agreement not only provides Alberta producers with enhanced risk management tools it also address a number issues vital to the future of our industry such as: food safety, environment, industry, renewal and the use of science innovation in agriculture."

Prior to the implementation agreement announcement, Minister Vanclief and Minister McClellan met with members of Alberta's cattle industry to discuss the Bovine Spongiform Encephalopathy (BSE) issue and its effects on farmers in the province. The two ministers agreed that all options would be explored in the ongoing effort to deal with this isolated, yet very important issue.

"Minister McClellan and I talked frankly and openly about a number of issues related to the single BSE finding in the province," said Mr. Vanclief. "We discussed the current situation and the next steps needed to get the U.S. border open as soon as possible to Canadian beef exports."

Mrs. McClellan added, "We need to work in a coordinated and cooperative way to resolve this issue as quickly as possible and proceed with restoring markets and consumer confidence."

Mr. Vanclief said the direction behind the APF has been underlined by the events of the past couple of weeks. Under the APF, governments have been working to advance many of the policies and systems that will assist Canada in managing issues such as BSE - and in assuring global customers that Canada is the world leader in food safety and food quality. The APF places strong priority on food safety and quality systems that are designed by industry to meet industry needs.

The APF, endorsed by federal, provincial and territorial ministers of agriculture in 2001, brings together five key elements - business risk management, environment, food safety and quality, renewal and science and innovation in a single solid platform. The framework is designed to help Canadian agriculture maximize new opportunities internationally by safeguarding and enhancing the food safety and quality system in Canada through science and environmentally-sound agricultural practices.

Implementation agreements govern the delivery of new programming under the five elements of the APF. The agreements set out the programming that will be delivered, delivery mechanisms and which level of government that will deliver them. In addition, the agreements list program costs and formalize such things as the management structures needed to oversee particular programs.

New APF programming in the areas of environment, food safety and quality, renewal and science and innovation in Alberta is valued at almost $221.5 million. Business risk management funding will be demand driven. However, Canada and Alberta are committing almost $70 million over three years to support the transition from existing programs to the new business risk management programs. For a complete list of programs and individual funding allocations, see attached backgrounder.

For more information, media may contact:

Media Relations
Agriculture and Agri-Food Canada
Ottawa
(613) 759-7972

Terry Willock
Communications Director
Alberta Agriculture, Food
and Rural Development
(780) 422-7683

Backgrounder

Highlights of the Canada-Alberta Implementation Agreement

In June 2002, the Government of Canada and the Government of Alberta signed a framework agreement on agriculture and agri-food in the 21st century. This agreement solidified the commitment of these governments to work together on developing and adjusting programs, services, and tools to help producers succeed today and tomorrow. It also identified the common goals they will pursue over the next five years.

The Canada-Alberta Implementation Agreement spells out many of the concrete measures that both governments will undertake to deliver on their common goals. The measures will help producers strengthen their businesses, increase prosperity, build on their diversification and value-added activities, and meet the demands of consumers at home and abroad, and will ensure that Canadian agriculture continues to be a valuable contributor to the quality of life of all Canadians.

Food safety and food quality

A food safety and food quality program will enhance food quality and safety systems across Canada. Initiatives under the program will support industry activities in the areas of on-farm food safety, off-farm food safety, traceability, and food quality. (Total investment: $19.5 million)
A fostering national approaches initiative will further national food-safety program approaches by supporting a range of activities related to awareness, training, research, and surveillance. (Total investment: $22.83 million)
Food-safety process control systems for small and medium-sized food processing establishments, transportation, distribution, and storage industries will be supported as these industries work to implement and audit HACCP-based food-safety systems. (Total investment: $4 million)
Food safety surveillance programs will be designed to generate baseline data on food-safety hazards and to help develop mitigation strategies. (Total investment: $7 million)
HACCP implementation in provincially licensed meat and dairy facilities will be supported to help these facilities move from current inspection-based programs to preventative food-safety process control programs. (Total investment: $13.96 million)
A provincial on-farm food safety program will help various crop and livestock groups develop and implement national or provincial food-safety process control systems. (Total investment: $3.25 million)

The environment

Support will be provided to help producers with the development and implementation of environmental farm plans. These plans will help them increase their understanding of the environment, assess the potential environmental risks and benefits of their operations, and then identify measures to take action on their findings. An incentive program will also be established to help producers more quickly adopt the environmentally beneficial actions needed to reduce the risks and enhance the benefits identified in the plans. (Total investment: $50.3 million)
Soil, water, air and biodiversity beneficial management practices will be developed to help support the adoption of environmentally sustainable farming practices. (Total investment: $9.05 million)
Support will be provided for the extension of soil, water, air and biodiversity beneficial management practices. (Total investment: $22 million)

Renewal

Business advisory services programs will provide producers with access to a network of consultants that will offer business management counseling to help them make business decisions, develop business plans, access capital, expand and diversify their operations to create value-added enterprises, and develop and assess options for the future. (Total investment: $20.73 million)
A skills development and learning assistance program will offer producers financial assistance to develop their skills and obtain on- or off-farm training, as well as career counseling, that could improve the profitability of the farm and increase family income by generating new business opportunities and employment. (Total investment: $12.95 million)
A skills development initiative, in support of the skills development program, will identify appropriate skills, develop approaches to deliver agriculture-related skills and learning, and provide advice to governments and educational institutions on the availability of agriculture trainers and consultants. (Total investment: $820,000)
A business development initiative will evaluate prospects for enhancing existing agriculture industries and to further develop other agriculture-related opportunities and business opportunities unique to rural areas. (Total investment: $14.8 million)
An initiative to build private-sector capacity will support the development of professionals and agencies that offer information and services to primary producers. (Total investment: $2.75 million)
Feasibility assessment services will help identify opportunities for new products and new types of agricultural businesses. (Total investment: $2.5 million)
An initiative will help develop strong leaders and managers who will be able to run successful agricultural businesses and take advantage of the new opportunities offered to the industry. (Total investment: $2 million)
An initiative will develop business risk management information, tools and other materials and opportunities for the beef, crops, pork and emerging industries. (Total investment: $3.754 million)
Other provincial initiatives will also support the work of advisors under the business advisory services programs and support the development and delivery of tools, information and skills development initiatives to reach farmers and their families. (Total investment: $4 million)

Science and innovation

The overarching program for science and innovation will focus on strategic development for science and innovation. This program will include a benchmark study on current levels of investment in science and innovation, a realignment action plan to make adjustments that increase the effectiveness of those investments, and a strategy to increase investment and returns in Canada's bio-based economy. The program will also sponsor pilot projects with industry, the academic community, and research institutions to fill identified knowledge gaps. (Total investment: $4.47 million)
Innovations for new economic opportunities will facilitate the transfer of research results and innovations into new economic opportunities for producers, processors, and the emerging bio-products sector. (Total investment: $2.845 million)

Business risk management

The implementation agreement commits Canada and Alberta to delivering national programs on business risk management for producers. The funding provided to the industry through these programs will be driven by demand. Canada and Alberta will, however, commit $69.667 million over three years to support the transition from existing programs to the new business risk management programs.

The new programs include:

A new stabilization and disaster program will be introduced to more effectively stabilize producers' incomes (including severe drops), while being affordable and flexible for producers.
Crop insurance will be broadened to production insurance to better respond to the needs of today's producers. This may include providing coverage for more commodities, increasing options for diverse farming operations, and developing innovative insurance tools based on new technology, such as satellite imagery.

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