Question Period Note: AGRICULTURE AND AGRI-FOOD CANADA (AAFC)’S 2023-24 SUPPLEMENTARY ESTIMATES (B)

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Agriculture and Agri-Food Canada’s (AAFC) 2023–24 Supplementary Estimates (B) of $355.2 million, when added to the 2023–24 Main Estimates, Supplementary Estimates (A), amounts carried forward from the prior year and amounts transferred from TB central votes, bring AAFC's 2023–24 Spending Authorities to Date to $3.831 billion.

AAFC’s 2023–24 Supplementary Estimates (B) of $355.2 million are made up of the following:
ITEM $ Thousands
VOTED STATUTORY TOTAL
Appropriations
1 Funding in support of dairy, poultry and egg supply-managed producers and processors 36,228 300,986 337,214
2 Funding for the Laboratory Asset Renewal Initiative (Budget 2023) 10,287 - 10,287
3 Reinvestment of royalties from intellectual property 5,626 - 5,626
4 Funding for the On-Farm Climate Action Fund (Budget 2023) 5,211 - 5,211
5 Reinvestment of revenues from sales and services related to research, facilities and equipment, and other revenue 2,009 - 2,009
6 Funding to implement Canadaʼs Indo-Pacific Strategy (horizontal item) 1,072 79 1,151
7 Reinvestment of revenues from the sale or transfer of real property 671 - 671
8 Funding to support the Dairy Innovation and Investment Fund (Budget 2023) 600 - 600
Total Appropriations 61,703 301,065 362,768
Transfers
Transfers from Other Organizations
9 From National Defense and Correctional Services for the Federal Contaminated Sites Action Plan 4,358 - 4,358
10 From the Treasury Board Secretariat to support projects which will reduce greenhouse gas emissions in federal government operations 225 - 225
11 From the National Research Council for the delivery of projects under the Quantum Research and Development Initiative 66 - 66
12 From the Canadian Food Inspection Agency (CFIA) to cost share the Market Access Support System 25 - 25
Total transfers from Other Organizations 4,673 - 4,673
Internal Transfers
13 Internal reallocation of resources from contributions ($600K) to Grants in support of the International Collaboration program - -
Transfers to Other Organizations
14 To the Treasury Board Secretariat for financial community developmental programs and initiatives (10) - (10)
15 To the Department of Foreign Affairs, Trade and Development to support departmental staff located at missions abroad (167) - (167)
16 To the CFIA to support initiatives that address food safety, plant and animal health, biosecurity and traceability under Sustainable CAP (2,638) - (2,638)
17 To the Department of Health for the delivery of the Minor Use Pesticide Program under the Sustainable CAP (4,251) - (4,251)
18 To the CFIA to deliver initiatives related to market access under the Sustainable CAP (5,166) - (5,166)
Total Transfers to Other Organizations (12,233) - (12,233)
Total Transfers (7,559) (7,559)
Grand TOTAL 54,144 301,065 355,209
Due to rounding, figures may not add to the total shown

1. $337.2 million – Funding in support of dairy, poultry and egg supply-managed producers and processors – Vote 1 Operating, Vote 5 Capital, Vote 10 Contributions, Statutory Grants and Statutory Employee Benefit Plan (EBP)
   This funding is part of the $1.8 billion funding announced in the 2022 Fall Economic Statement for full and fair compensation to the supply managed sectors for the impacts of the Canada-United States-Mexico Agreement (CUSMA). It provides the following grant and contribution funding:
   • the Dairy Direct Payment Program - additional $1.2 billion funding over 6 years (2023-24 to 2028-29);
   • the Supply Management Processing Investment Fund - $105 million additional funding over 5 years (2023-24 to 2027-28); and
   • the Poultry and Egg On-Farm Investment Program - $112 million over 8 years (2023-24 to 2030-31).
   For 2023-24, the $337.2 million includes $3.7 million for personnel, $2.9 million Other Operating, $0.7 million for Capital expenses, $29 million in Contributions, $1.0 million for employee benefit plans, and $300 million in Statutory Grants.
2. $10.3 million – Funding for the Laboratory Asset Renewal Initiative – Vote 1 Operating and Vote 5 Capital
   This funding is part of the investment announced in Budget 2023 of $115.2 million over six years (2023-24 to 2028-29) for AAFC, under the Laboratory Asset Renewal Initiative, to help restore aging research facilities in urgent need of repair. The funding will be used to supplement AAFC’s real property capital budget for infrastructure renewal to address science infrastructure improvement, recapitalization of aging infrastructure, greenhouse gas emissions reduction actions, and legislative and policy requirements.
3. $5.6 million - Reinvestment of royalties from intellectual property – Vote 1 Operating
   AAFC is seeking access to $5.6 million related to royalties and licenses from intellectual property collected and deposited into the Consolidated Revenue Fund in 2022-23. Royalties are collected for Science and Technology Branch, and are for numerous agricultural commodities that have been developed by scientists. These commodities range from grain & oilseeds to fruits to flowers.
   Treasury Board has authorized departments and agencies to receive, through Supplementary Estimates, an annual appropriation equal to all revenues arising from the licensing of Crown-owned intellectual property which the department or agency remitted to the Consolidated Revenue Fund in the previous fiscal year. This funding will be reinvested into science research projects.
4. $5.2 million – Funding for the On-Farm Climate Action Fund to support sustainable agriculture (Budget 2023) – Vote 10 Contributions
   This funding is part of $452.8 million in new funding over five years (2023-24 to 2027-28) announced in Budget 2023 in support of the 2030 Emissions Reduction Plan, through the extension of the Agricultural Climate Solutions: On-Farm Climate Action Fund. This program extension will support the sector in reducing net greenhouse gas emissions through contribution funding to support the on-farm adoption of beneficial management practices, including a portion for producers in Eastern Canada to adopt nitrogen management beneficial management practices. This brings the total funding for the On-Farm Climate Action Fund to $704.1 million over seven years (2021-22 to 2027-28).
    
5. $2.0 million – Reinvestment of revenues from sales and services related to research, facilities and equipment, and other revenue – Vote 1 Operating
   AAFC is seeking to access $2.0 million related to revenues collected from sales and services related to research, facilities and equipment, and other revenue earned and deposited into the Consolidated Revenue Fund in 2022-23. The funds will be reinvested into research activities.
6. $1.2 million - Funding to implement Canadaʼs Indo-Pacific Strategy (horizontal item) – Vote 1 Operating and Statutory EBP
   This funding is part of $2.26 billion over five years (2023-24 to 2027-28) and $175.4 million per year ongoing for the implementation of Canada's Indo-Pacific Strategy. This Strategy is led by Global Affairs along with 15 participating federal departments and agencies including AAFC. The Strategy is in support of five objectives that will aim to promote peace, resilience, and security; expand trade, investment, and supply chain resilience; invest and connect in people; build a sustainable and green future; and ensure Canada’s role as an active and engaged partner to the region.
   The funding allocated to AAFC totals $14.9 million over 5 years (2023-24 to 2027-28) and $3.4 million ongoing, to establish Canada’s first regional Indo-Pacific Agriculture and Agri-Food Office. This office will enable Canada to engage with stakeholders, regulatory counterparts, and policy decision-makers to deepen partnerships with Indo-Pacific economies that value sustained meaningful relationships, collaboration, and the sharing of expertise. For 2023-24, this $1.2 million includes $291 thousand for personnel and $781 thousand for Other Operating.
7. $0.7 million – Reinvestment of revenues from the sale or transfer of real property – Vote 5 Capital
   AAFC is seeking access to $0.7 million related to revenue from the sale of a small parcel of land at St Foy Research Center to accommodate a transit expansion for the city. The total sale price was $1.57 million, and this $0.7 million is the second installment received of three installments.
8. $0.6 million – Funding to support the Dairy Innovation and Investment Fund (Budget 2023) – Vote 1 Operating
   This funding is part of the $333 million over 10 years starting 2023-24, announced in Budget 2023, for the Dairy Innovation and Investment Fund. The program will support investments in research and development of new products based on solids non-fat, market development for these products, and processing capacity for solids non-fat-based products more broadly.
   As this fund is in the implementation phase in 2023-24, this $0.6 million is for program administration. The contribution funding begins in 2024-25.

Transfers from Other Organizations (totaling $4.7 million)
9. $4.4 million – Transfer from the Correctional Service of Canada and Department of National Defence for the Federal Contaminated Sites Action Plan – Vote 1 Operating
This transfer from Department of National Defence and Correctional Services Canada is to support remediation and assessment of contaminated sites within the context of Federal Contaminated Sites Action Plan (FCSAP).
The $4.25 million from Department of National Defence will be used for the remediation of the Kelowna sites; and $0.1 million from Correctional Services Canada will support the ongoing assessment of future disposal sites and to finalize assessment at Flings Brook, NL where FCSAP Assessment contributions were used in 2021-22.
10. $0.2 million – Transfer from the Treasury Board Secretariat (TBS) to support projects which will reduce greenhouse gas emissions in federal government operations – Vote 5 Capital
This transfer is from TBS’s Greening Government Fund, which was established to explore and share innovative approaches to reducing greenhouse gas emissions in government operations. This transfer includes $150,000 funding to replace AAFC's Sherbrooke Research and Development Centre pig barn fans with heat-recovery ventilators specially developed for animal breeding buildings and $75,000 to support the installation of a forest biomass heating system (wood pellets) in the main building of the Normandin research centre located in northern Quebec.
11. $0.07 million - Transfer from the National Research Council (NRC) for the delivery of projects under the Quantum Research and Development Initiative – Vote 1 Operating
This transfer is part of $8.97 million over five years (2023-24 to 2027-28), to launch the Quantum Research and Development Initiative (QRDI) as a new program under the Canada’s National Quantum Strategy (NQS). The QRDI will support collaborative, federal quantum R&D and will be coordinated and administered by the NRC. The primary goal of the QRDI is to coordinate horizontal research across the federal government to support quantum innovation in priority areas such as defence and security, communications, natural resource and environmental management, among others. It will allow participating departments and agencies (NRC, Natural Resources Canada, AAFC, Environment and Climate Change Canada, Defence Research and Development Canada) to increase their quantum R&D capacity, take on cross-cutting shared projects that fulfil national needs, and better collaborate with other quantum players across the country.
Of the $8.97 million, AAFC will receive $1.082 million over 5 years ($66 thousand in 2023-24 and $254 thousand each year for the next 4 fiscal years). AAFC will contribute $1.076 million from existing resources, for a total of $2.158 million in support of its R&D projects under QRDI.
12. $25 thousand - Transfer from the Canadian Food Inspection Agency (CFIA) to cost share the Market Access Support System – Vote 1 Operating
This is an annual recurring transfer to cost share the joint development and maintenance of the Market Access Support System - a shared tool used both by CFIA and AAFC.

Internal Transfer
13. $600 thousand - Internal reallocation of resources in support of the International Collaboration program – Vote 10 Contributions to Grants
This funding, which will be reallocated from contributions to grants, will be used to fund an increased demand in International Collaboration program grants. This item is required in these estimates to obtain authority to increase the related grant. These funds will enable Canada to play a more active role in critical international organizations such as :Global Biodiversity Information Facility and Agricultural Market Information System. This is an internal reallocation of Vote 10 Contribution funding from the Poultry and Egg on Farm Investment program.
The addition of this funding will bring the total of the "Grants for the International Collaboration Program to $2.243 million for 2023-24.
 
Transfers to Other Organizations (totaling ($12.2 million)
14. ($10) thousand - Transfer to the Treasury Board Secretariat for financial community developmental programs and initiatives – Vote 1 Operating
This transfer is AAFC's contribution for 2023-24 to fund the renewal and delivery of the Office of the Comptroller General Financial Community Developmental Team programs and initiatives. These programs and initiatives are being renewed from 2023-24 to 2028-29 and will continue to be funded with contributions from large Departments and Agencies.
15. ($167) thousand - Transfer to the Department of Foreign Affairs, Trade and Development to support departmental staff located at missions abroad – Vote 1 Operating
This transfer is to support two positions for the Indo-Pacific Agriculture and Agri-Food Office in Manilla, Philippines - following the implementation of Canada’s Indo-Pacific Strategy.
16. ($2.6) million - Transfer to CFIA to support initiatives that address food safety, plant and animal health, biosecurity and traceability under the Sustainable CAP – Vote 1 Operating
This transfer is to support the following initiatives under Sustainable CAP for 2023-24:
- Assurance recognition activities, including the Food Safety Recognition Program;
- Plant and animal health activities with a focus on biosecurity and surveillance; and
- Traceability activities, including: Implementation and evaluation of new livestock traceability regulations; and continued integration, including ensuring data integrity, and sharing of livestock traceability information through the Traceability National Information Portal.
17. ($4.3) million - Transfer to Health Canada for the delivery of the Minor Use Pesticide Program under the Sustainable CAP – Vote 1 Operating
This transfer is to support the delivery of the Minor Use Pesticide Program (MUPP) under the Sustainable CAP for 2023-24. The MUPP is jointly delivered as part of federal government commitments as they relate to pesticides under the Sustainable CAP, which seeks to improve grower access to new minor uses of pesticides. Through the MUPP, AAFC and HC will continue to collaborate with stakeholders to prioritize pest management needs, facilitate access to new pest management tools that meet health and environmental standards and continue to contribute to improving the competitiveness of Canadian growers of horticultural and specialty crops HC will provide regulatory advice and review submissions to register new minor uses of pesticides.
18. ($5.2) million - Transfer to the CFIA to deliver initiatives related to market access under the Sustainable CAP – Vote 1 Operating
This transfer is to support the delivery of initiatives related to Market access under the Sustainable CAP for 2023-24. This is for CFIA work delivered under the trade policy and market access component of the Sustainable CAP to resolve priority market access issues and provide technical expertise abroad related to creating export conditions required for Canadian agricultural goods to enter markets abroad for sale.

• AAFC’s 2023-24 Supplementary Estimates (B) of $355.2 million will provide funds to support the agriculture and agri-food sector. Most of these funds will go to supply management producers and processors.

• The Government of Canada is delivering on its commitment to provide full and fair compensation to the dairy, poultry and egg producers and processors for the impacts of recent trade agreements.

• As part of up to $1.8 billion in compensation to supply-managed sectors for the impacts of the Canada-United States-Mexico Agreement, announced in the 2022 Fall Economic Statement and in Budget 2023, $337.8 million is being made available to dairy, poultry and egg supply-managed producers and processors through these Supplementary Estimates (B).