Environmental Sustainability of Canadian Agriculture: Agri-Environmental Indicator Report Series - Report #2

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Executive Summary

Context

The agriculture and agri-food industry operates in close connection with the surrounding environment. Environmental sustainability producing and processing food and fibre in a way that protects or enhances the natural resources which support production and is compatible with the surrounding natural systems is therefore not a new concept for the sector. Producers have for a long time been adopting technologies, production strategies and beneficial management practices that improve their environmental performance.

In recent decades, globalization, market pressures and technological innovations have spurred Canadian agriculture to increase output and productivity. This has engendered structural changes in the industry, characterized by the adoption of new technologies and a gradual shift towards larger, more intensified operations. Social preferences of Canadians have also evolved, and concerns have been raised about the possible impact of food production on the environment on soil, water and air quality, and biodiversity. Canadians have supported a growing array of domestic and international agreements, regulations and research programs designed to protect the environmental systems with which agriculture interacts. Agriculture today has to balance a wide range of continually evolving environmental demands and expectations. Achieving the goal of long-term environmental sustainability has become a more pressing challenge and one that involves increasingly complex issues.

Farmers, governments and other stakeholders in Canada's agricultural industry have become increasingly aware of the need to integrate environmental factors into their decision-making processes. Decision makers at all levels share a common need for objective information on the current environmental performance of the agricultural sector, to determine whether this performance is satisfactory and how it is likely to behave in response to the decisions they make.

Agri-Environmental Indicators

Agriculture and Agri-Food Canada has developed a set of agri-environmental indicators (AEIs) specific to the agriculture and agri-food sector to assess how well agriculture and agri-food systems manage and conserve natural resources and how compatible they are with the natural systems and processes in the broader environment. These AEIs are a practical means of assessing environmental sustainability by combining current scientific knowledge and understanding with available information on resources and agricultural practices. The intent is to provide an objective, science-based assessment of the overall environmental sustainability of agriculture. These agri-environmental indicators can then be used to:

• track progress and measure performance in achieving priority environmental objectives
• draw public attention to important environmental issues
• translate scientific knowledge and research results into a form that can be understood and used by citizens and decision makers and,
• educate students and citizens interested in understanding agri-environmental issues and their implications.

Agri-environmental indicators are calculated using mathematical models or formulas that integrate biophysical information (on soil, climate and landscape) with land use and farm management data generalized to portray certain environmental conditions in the landscape at a given time. They are primarily intended to provide information on a national, provincial and regional scale, in a manner that is both sensitive to regional variations in agriculture and consistent across Canada . However, to make national assessments, it is necessary to work at broad temporal and spatial scales and to use units that are usually not homogeneous in terms of either farm management practices or biophysical conditions. The aggregated result may therefore obscure local reality, and because of this the indicators cannot be interpreted as showing any specific on-site conditions such as at an individual farm.

A first set of AEI results was published in 2000 covering a 15-year period (1981 to 1996). Building on this initial work, and in light of current and future needs for this kind of information, AAFC established the National Agri-Environmental Health Analysis and Reporting Program (NAHARP) to strengthen its capacity to develop AEIs and tools to integrate them with policy development. This report, the second of the Agri-Environmental Indicator Report Series, can be viewed as an incremental step towards the objective of periodically reporting on the environmental sustainability of Canadian agriculture. The work on agri-environmental indicators involves a process of continuous improvement, and most of the indicators from the first report have been updated, extending the temporal coverage to 2001. Improvements have also been made to existing methodologies and datasets, which means that results and trends for these indicators have been re-assessed for the entire 20-year period covered (1981 to 2001). This second report also provides information on new indicators that are in various stages of development and are expected to generate results in the near future.

Summary of Results

The AEIs included in this report focus on four key components of the environmental sustainability of primary agriculture: soil quality, water quality, air quality and biodiversity. The results reveal some consistent national trends, as well as considerable differences in various agri-environmental conditions across Canada. Overall, the results suggest that considerable progress has been achieved towards environmental sustainability, but that further expansion and intensification of cropping and livestock production has the potential to exacerbate the environmental risks unless appropriate actions are taken to manage them. The main AEI results for the period 1981 to 2001 can be summarized as follows:

Environmental farm management : This component consists of five indicators, including three that currently provide national coverage (Soil Cover, Residual Soil Nitrogen and Energy Use Efficiency). Results are mixed, with soil cover showing overall improvement, whereas nitrogen use efficiency and energy use efficiency have declined. The two other indicators are still under development (Water Use Efficiency - Irrigation and Integrated Pest Management).

Soil quality : There are five soil quality indicators with results, including separate indicators for assessing the risk of soil erosion by water, wind and tillage. The Soil Organic Carbon Change Indicator tracks changes in soil carbon content, and estimates CO₂ sequestration in agricultural soils. The Risk of Soil Salinization Indicator is designed to assess the change in soil salinity on the Prairies. All five indicators showed improvement, with a majority of land in the very low risk classes for erosion and salinity and most land falling into the increasing classes for soil organic carbon change. An additional indicator, the Risk of Soil Contamination by Trace Elements, is being developed to gain a better understanding of how agricultural management practices can affect the levels of trace elements in the soil and change their bioavailability.

Water quality : On the water quality front, two separate indicators were used to assess the Risk of Water Contamination by Nitrogen and by Phosphorus, taking into account changes in land use (e.g., shifts in crop area) and management practices (e.g., fertilizer inputs). Mixed results were obtained for these two indicators. While close to two-thirds of the land shows a low or very low risk of water contamination by nitrogen, the 20-year trend is worsening. By contrast, the trend for the risk of water contamination by phosphorus (Quebec only) is improving, although only a third of farmland is in the lowest risk classes. Two additional indicators, dealing with pesticides and pathogens, are still under development.

Air quality : One air quality indicator is currently available. The Agricultural Greenhouse Gas Budget estimates greenhouse gas (GHG) emissions (nitrous oxide, methane and carbon dioxide) from agricultural sources. The indicator shows a positive national trend, with a 4% reduction in net GHG emissions during the period under review. This trend is largely attributable to an increase in soil carbon sequestration, which compensated for a rise in nitrous oxide and methane emissions. Work is continuing on the development of indicators for measuring agricultural emissions of ammonia and particulate matter.

Biodiversity : Biodiversity is assessed using the Indicator of Wildlife Habitat on Farmland, which provides insight into trends in wildlife habitat availability on Canadian farms. Somewhat negative results were obtained for this indicator, with more farmland showing a decreasing trend in habitat capacity than a rising trend. Several other indicators are currently under development: risk of wildlife damage; invasive alien species; and soil biodiversity.

Food and beverage industry : AAFC's science-based indicator approach is being expanded to include eco-efficiency indicators for the food and beverage industry as well. These indicators, still under development, will cover the following environmental issues: energy use and greenhouse gas emissions; water use and effluent generation; organic solid residues and packaging wastes.