Question Period Note: DEPARTMENTAL RESULTS REPORT 2022–23

Q1 – Anticipated question on business risk management programs Q2 – Anticipated question on support for supply-managed sectors Q3 – Anticipated question on support for other investments in the agriculture and agri-food sector

R1 - Business risk management programs help farmers to manage production risks and to recover from adverse conditions. These programs fluctuate from year to year since they are dependent on market and production conditions, are demand driven, and only pay out when they are needed.
In 2022–23, spending on programs that focus on managing sector risk was greater than planned due to support for producers under the AgriInsurance program who experienced a production loss, as well as to help farmers manage income declines or make investments to mitigate risks and improve market outcome through the AgriInvest program.
In 2022–23, the AgriStability program implemented additional measures to provide support to farmers affected by avian influenza outbreaks, as well the damages caused by Hurricane Fiona. The enrolment deadline was extended, and the interim benefit percentage was increased. R2 - The Government continues to deliver on its commitment of providing fair and broad compensation for the impacts of free trade agreements. A total compensation package of $4.8 billion, including a new commitment of $1.7 billion for the impacts of the Canada-United States-Mexico Agreement (CUSMA) has been committed for Canada’s dairy, poultry and egg producers and processors to support their contribution to a growing economy.
The Government continues to support supply-managed sectors through current and new programming, including the new Supply Management Processing Investment Fund.
Additionally, both the Dairy Farm Investment Program and the Dairy Processing Investment Fund were extended to March 31, 2023, allowing for producers and processors to complete projects after facing delays associated to the pandemic. R3 - The Canadian Agricultural Partnership policy framework concluded in March 2023. Over the past year, federal, provincial and territorial governments negotiated and finalized the new $3.5 billion 5-year (2023–28) Sustainable Canadian Agricultural Partnership policy framework, which launched as of April 1, 2023.
The Department continued implementing initiatives under the Food Policy for Canada, including by making further investments in the 5-year Local Food Infrastructure Fund and providing $2.8 million in support of projects through the AgriCommunication Program.
In 2022–23, the Government continued to support Canadian farmers to develop and implement beneficial farming practices to address climate change under the Natural Climate Solutions Fund programs.

The 2022–23 Departmental Results Report outlines results over the last 3 fiscal years under each Core Responsibility (Domestic and International Markets, Science and Innovation, and Sector Risk) of Agriculture and Agri-Food Canada’s Departmental Results Framework.
Details on the Department’s spending and human resources trends for 2022–23 are described below:
• Actual spending was $3.607 billion compared to planned spending of
$3.253 billion, an increase of $353.2 million or 11%;

• Actual spending was $3.607 billion compared to $3.462 billion in 2021–22, an increase of $144.6 million or 4%;

• Actual FTEs were 5,045 compared to planned FTEs of 5,042 (3 FTEs more); and

• Actual FTEs were 5,045 compared to 4,984 in 2021–22, an increase of 61 FTEs.

SPENDING - ACTUAL COMPARED TO PLANNED

Actual spending in 2022–23 was $353.2 million more than planned (actual spending of $3.607 billion compared to planned spending of $3.253 billion).

The increase is primarily due to:
• Increased expenditures under the AgriInsurance Program;
• Spending under the new Wine Sector Support Program;
• Increased funding support for the Agricultural Clean Technology Program and the On-Farm Climate Action Fund stream of the Agricultural Climate Solutions Program.
This was offset by reduced demand and participation under the AgriStability Program where spending varies based on market and production conditions as well as a reduced requirement for program support under the AgriRecovery Program.

Explanations for the major differences by Core Responsibility are:
Core Responsibility 2022–23
Planned Spending
($ millions) 2022–23
Actual Spending
($ millions) Difference
(actual minus planned)
($ millions) Explanation
Domestic and International
Markets 772.0 856.2 84.3 - New Wine Sector Support Program
Science and Innovation 711.7 764.7 53.1 - Increased funding for the Agricultural Clean Technology Program and the On-Farm Climate Action Fund stream of the Agricultural Climate Solutions Program; and
- Amounts carried forward from 2021–22.
Sector Risk 1,609.7 1,768.6 158.9 - Increased expenditures under the AgriInsurance Program as a result of higher commodity prices;
- Offset by:
- Decrease in demand and participation under the AgriStability Program; and
- Reduced requirement for program support under the AgriRecovery Program.
Internal Services 160.0 216.9 56.9 - Amounts carried forward from 2021–22;
- Realignment among programs; and
- New funding received to support investments in information technology, ongoing service delivery improvements and government priorities.

Total 3,253.4 3,606.5 353.2

SPENDING - ACTUAL COMPARED TO THE PREVIOUS YEAR

Actual spending has increased compared to the previous year: $3.607 billion in
2022–23 compared to $3.462 billion in 2020–21, an increase of $144.6 million or 4%.

The increase is primarily due to:
• Increased support under the AgriInsurance and AgriStability Programs, the Agricultural Climate Solutions Programs, and the Agricultural Clean Technology Program as part of the Emissions Reduction Plan;
• Spending under the new Wine Sector Support Program; and
• Increased spending for supply management initiatives: Poultry and Egg On-Farm Investment Program and the Supply Management Investment Fund.
This was offset by a reduced requirement for program support under the AgriRecovery Program and the end of spending for COVID-19 initiatives.
FULL-TIME EQUIVALENTS (FTEs) – ACTUAL COMPARED TO PLANNED

In 2022–23, actual FTEs were 5,045 compared to planned FTEs of 5,042 (3 more FTEs).

Actual full-time equivalents remained relatively stable compared to planned as realignments among programs were done to better manager operational work load.
FTEs - ACTUAL COMPARED TO THE PREVIOUS YEAR

In 2022–23, actual FTEs were 5,045 compared to 4,984 FTEs in 2021–22, an increase of 61 FTEs or 1.2%.

The increase was mainly due to:

• Support for service delivery improvements and government priorities;
• Increased support for dairy, poultry, and egg supply-managed producers and processors, the Agricultural Clean Technology Program and the Agricultural Climate Solutions Programs as part of the Emissions Reduction Plan; and
• Support for the new Wine Sector Support Program.

• The agriculture and agri-food sector is a powerful driver of Canada’s jobs, economy, and growth of the middle class. The Government remains committed to supporting the sector to ensure it upholds its position of leadership in job creation and innovation.
• In response to urgent sector needs, including as a result of unprecedented drought, flooding, and wildfires, the Department delivered critical programs in support of the agriculture and agri-food sector in 2022–23.
• Our programs helped to ensure a reliable supply of Canadian products, maintain confidence in the agricultural supply chain, and support the sector’s financial resilience.
• Actual expenses were higher than planned expenses in 2022–23 mainly due to the demand-driven AgriInsurance program and the Emissions Reduction Plan programs. We also launched new programming in support of the wine sector.