SWAN RIVER, Manitoba, Sept. 5, 2002 – Agriculture and Agri-Food Minister Lyle Vanclief today joined with Rosann Wowchuk, Manitoba's Minister of Agriculture and Food, in signing the new Federal-Provincial-Territorial Framework Agreement on Agriculture and Agri-Food in the Twenty-First Century.

The agreement, which sets the stage for the implementation of the five-year Agricultural Policy Framework (APF) in 2003, commits governments to help move the agriculture and agri-food sector beyond crisis management to a more prosperous future by taking action in five key areas: food safety and quality, the environment, business risk management, renewal and science and innovation.

"I'm pleased Manitoba has now signed this blueprint for the future of the Canadian agriculture and agri-food sector," Mr. Vanclief said. "Through the APF, together we are laying the foundation for a new direction for our industry so it can move forward with confidence and stability. Our goal is to put the tools and infrastructure in place to assist our industry to be profitable over the long term and winners on the world stage."

"Manitoba has been a strong supporter of a long-term commitment to agricultural policy and programming with the federal government," said Ms. Wowchuk. "We want to build on the great work that has taken place in Manitoba as a result of the co-operation between producers and the government on programming, and high participation rates in safety net programs."

Nine provincial and territorial governments formally signed or initialed the Agreement at the annual meeting of agriculture ministers in Halifax in June, with Manitoba, Saskatchewan and Quebec opting to consider their participation at a later date. With Manitoba's signature, ministers move to the next stage – negotiating details and developing the programs to fulfill the goals of the APF and equip the industry to be profitable and competitive.

Ministers agreed in principle to the long-term direction in agricultural policy at their annual meeting in Whitehorse in 2001 and wide-ranging consultations subsequently took place, involving the full agri-food chain, including farmers, food processors, environmental groups and consumers.

The agreement sets out an integrated approach to agricultural policy, which will help Canada's industry to meet changing consumer demands and make Canada the world leader in food safety, environmentally responsible production and innovation.

The Government of Canada is providing $3.4 billion to fund the actions under this new Framework, part of a $5.2 billion package of agricultural investments announced in June by Mr. Vanclief and Prime Minister Jean Chrétien. When all implementation agreements are signed, provincial-territorial cost-sharing will add additional funds over the life of the agreement.

The Province of Manitoba provides $75 million a year to producers under existing federal-provincial programs, and it is expected that the province will spend approximately another $450 million on programs over the life of the agreement.

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The Government of Canada, along with provincial and territorial governments and the agriculture and agri-food industry, is putting in place a comprehensive agricultural policy that will increase the profitability of the entire agri-food sector. The Agricultural Policy Framework (APF), cost-shared with the provinces, will provide the tools and the choices for producers to strengthen their businesses. It will allow them to meet the demands of consumers in Canada and around the world while responding to increased global competition and keeping up with rapid technological change. Linking the following elements together in a comprehensive approach will ensure that the Canadian agriculture and agri-food sector has a solid platform from which to maximize economic opportunities in the global marketplace.

Canada's agriculture and agri-food sector enjoys a global reputation for consistently delivering safe, high-quality food. Many players in the industry are already moving to adopt systems that will offer documented evidence of safety and quality to meet consumer demands. The APF will help industry develop these systems to trace their products through the entire food chain to consumers and expand food safety and quality monitoring at the production level. The food safety surveillance and information systems that governments currently have in place would be strengthened.

Environmental stewardship is key to both the industry's long-term sustainability and its profitability. The industry is well aware of this and is already taking action to manage known environmental risks. The APF sets out areas where governments can provide help, including better information and research on the links between agriculture and the environment, the development of best management practices, and stepped-up action on environmental priorities on farms through agri-environmental scans and environmental farm plans.

Business risk management is an integral part of the Agricultural Policy Framework. The APF is looking at new approaches to current safety net programs that address business risks on the farm, such as yield losses because of weather. The new approach to business risk management would not only protect farmers against traditional and emerging risks but would also encourage the use of new practices and strategies to reduce risk in the future. Governments are working with industry stakeholders to build on the best of existing risk management programs, such as crop insurance and the Net Income Stabilization Account, to provide effective tools for the evolving sector. The goal is a more integrated system of programs that cover risk, provide producers with more choice, and promote future growth and profitability.

As agriculture is knowledge intensive, producers are increasingly engaging in continuous learning to keep pace with change. Renewal efforts include enhanced public and private business management and consulting services, management and marketing information to assist farmers to enhance their profitability, and networks to better link scientific advances to the creation of new economic opportunities.

Advances in science and technology have long been part of the success of Canada's agriculture and agri-food sector and one of the goals of the APF is to make the sector the world leader in innovation. The APF emphasizes the coordination of research and innovation efforts across governments, the sector and private research institutions to achieve maximum return on investments in the key areas of food safety, the environment and innovative production.

As global competition intensifies, we have to continually innovate to stay ahead of our competitors in meeting market demand. The first step is building the infrastructure to make Canada the world leader in food safety and food quality, environmentally responsible production and the creation of innovative agri-based products and services that meet or exceed market demands. The next step is gaining recognition at home and abroad for our success in being the world leader, and ensuring our industry has the access to foreign markets to make the best use of its global leadership in food production. The Government of Canada will continue to work with industry to advance the trade interests of the sector by developing targeted market strategies for key, fast-growing international markets while pursuing Canada's objectives in the World Trade Organization. This is the key to reaping maximum benefit from the APF for the sector. Consultations

Industry stakeholders will continue to be consulted extensively in the further development of the Agricultural Policy Framework.

Who has signed the Federal-Provincial-Territorial Framework Agreement on Agriculture and Agri-Food for the Twenty-First Century?

At the annual meeting of federal and provincial agriculture ministers, held in Halifax in June, 2002, the agreement was signed by British Columbia, Alberta, Ontario, New Brunswick, Nova Scotia, and Newfoundland and Labrador.

At that time, the agreement was also initialled by Prince Edward Island, the Northwest Territories and the Yukon, pending the full authority from their governments to officially sign on. Since then, the Yukon has added its signature.

Manitoba is adding its signature.

Quebec and Saskatchewan have not signed the agreement to date.

How will this agreement be funded and what are the provinces' shares?

• The Government of Canada has committed $3.4 billion over five years to fund initiatives under the Agricultural Policy Framework (APF). This funding was announced in June, 2002, as part of the federal government's $5.2-billion package of new investments in agriculture and agri-food.
• This $3.4 billion APF funding includes $500 million a year for business risk management, over and above the existing envelope of $600 million in Agriculture and Agri-Food Canada's permanent budget. This amounts to a federal commitment to provide $1.1 billion a year in business risk management programming for the next five years.
• The APF funding also includes $180 million each year for other measures in food safety and food quality, environment, renewal, and science and innovation.
• Provinces are expected to cost-share in the Agricultural Policy Framework under the traditional 60-40 funding arrangement.

• Of the $3.4 billion envelope, $2.5 billion is to go to risk management programming; provinces will be required to provide their 40 per cent share.
• The remaining $900 million ($180 million a year for 5 years) is for initiatives in food safety, environment, science and innovation, and renewal. Of this $180 million per year, the Government of Canada will contribute $60 million annually to federal-only initiatives. Provinces will be expected to provide their 40 per cent share on the remaining federal commitment of $120 million, which amounts to $80 million per year from provincial governments.

• Provincial allocations are a subject of negotiations and will be spelled out in the implementation agreements.

What are the next steps for the Agricultural Policy Framework?

• Bilateral implementation agreements will be negotiated between the federal government and each of the provincial and territorial governments who have signed the framework agreement. These agreements will spell out the programs to be used to deliver on the goals identified for each of the five areas of the APF: food safety and quality, environmental stewardship, business risk management, renewal, and science and innovation.
• The current framework expires March 31, 2003. Bilateral agreements are to take effect at the beginning of the 2003 fiscal year. The introduction of new programs will be governed by the new agreements, which will likely provide for transitional arrangements. The Federal-Provincial-Territorial Framework Agreement on Agriculture and Agri-Food for the Twenty-First Century provides a three-year period for transition.