Question Period Note: NON-BUSINESS RISK MANAGEMENT (BRM) SUSTAINABLE CANADIAN AGRICULTURAL PARTNERSHIP (CAP) PROGRAMMING

Q1 – What is the suite of Federal Programming under Sustainable CAP? Q2 – What is the status of Federal Programming under Sustainable CAP? Q3 – How will Sustainable CAP Cost-Shared Programming support the Canadian agriculture sector?
Q4 – How will Sustainable CAP address the environment and climate change?

R.1 - The federally delivered programs and activities under Sustainable CAP represents an investment of $1 billion to programs such as: the AgriAssurance Program, the AgriCompetitiveness Program, the AgriMarketing Program, the AgriDiversity Program, the AgriScience Program, and the AgriInnovate Program. R.2 - All of the Federal Sustainable CAP programs have been launched. Many of the programs experienced high demand from past program participants and new applicants. As a result, most programs prioritized projects that best aligned with program objectives. R.3 - Under Sustainable CAP, $2.5 billion will be cost-shared 60% federally and 40% provincially/territorially for programs that are designed and delivered by provinces and territories. This represents $500 million in new funds for cost-shared activities, a 25% increase above the Canadian Agricultural Partnership, which will allow provinces and territories greater flexibility to support activities in each of the five priority areas of the Sustainable CAP - such as tackling climate change, supporting sustainable agriculture and economic growth, and enhancing sector resilience.

This increase in cost-shared funds includes the introduction of the Resilient Agricultural Landscape Program (RALP), a new $250 million cost-shared program that will use an ecological goods and services payment approach to support on-farm adoption of environmental beneficial management practices that reduce GHG emissions and increase carbon sequestration. R.4 - The Sustainable CAP will play a critical role in supporting the agriculture and agri-food sector by contributing to reductions in greenhouse gas emissions, adapting to climate change and continuing to ensure a sustainable path for economic growth.

Central to having a more significant focus on climate change is the establishment of the Resilient Agricultural Landscape Program, a $250 million investment by FPT governments which will support on-farm adoption of environmental beneficial management practices that reduce GHG emissions and increase carbon sequestration.

Additionally, under Sustainable CAP, with the exception of the territories, all provinces have agreed to spend at least 12.5% of their total spending, excluding federal-attributed initiatives, on activities that specifically support GHG emissions-reducing and carbon sequestration activities.

Sustainable Canadian Agricultural Partnership (Sustainable CAP)

• The Sustainable CAP is a $3.5-billion, 5-year agreement (April 1, 2023 to March 31, 2028), between the federal, provincial and territorial governments to strengthen the competitiveness, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector.
• The agreement includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities funded by federal, provincial and territorial governments.
• This new five-year agreement will inject $500 million in new funds, representing a 25% increase in the cost-shared portion of the partnership.
• Under the cost-shared envelope, FPT governments agreed to a $250 million Resilient Agricultural Landscape Program to support ecological goods and services provided by the agriculture sector.

The Sustainable CAP builds off of the priority areas from CAP, with greater emphasis on achieving environmental, economic and social objectives.

FPT Ministers agreed on several key changes from CAP to Sustainable CAP including:
• To bolster climate change and environment action across the framework;
• To improve the suite of Business Risk Management (BRM) programs by exploring options to better integrate climate risks;
• A strengthened approach to Performance Measurement and Results with shared targets complemented by a focused proportionate spend;
• Enhanced focus to encourage the participation of underrepresented groups in the sector;
• Continued enhancements to Science and Innovation, Market Development and Trade and increased emphasis in other focus areas (e.g., Labour; Indigenous Participation; Mental Health);
• Reflecting a sustainable development approach and competitiveness throughout the framework.

FPT Ministers agreed on the need for a more robust results strategy for the Sustainable CAP including improved data sharing, results reporting, and a commitment to contribute to common, measurable outcomes, over the lifespan of the partnership, in particular contributing to:
• 3-5 MT reduction in Greenhouse Gas (GHG) emissions
• $250B in sector revenues and $95B in sector export revenues by 2028
• Increase in proportion of funded recipients that are Indigenous Peoples, women and youth over the five years of the partnership

Federal Programs and Activities under Sustainable CAP
• Federal programs and activities are national in scope and represent a $1 billion investment over 5 years.
• Federally delivered programs include: AgriScience, AgriInnovate, AgriDiversity, AgriCompetitiveness, AgriAssurance, AgriMarketing.
• Sustainable CAP federal programs and activities include a greater focus on priority areas such as:
• Science, research and development of innovative technologies and practices that address sector and government research priorities;
• Supporting science, research and development of transformative solutions that can contribute to the Government of Canada’s 2030 and 2050 emissions targets; and,
• Market diversification, including activities in the Indo-Pacific region; marketing green products; and supporting inclusive trade.
• Key changes to the programs since the last framework include:
• Greater focus on environmental priorities;
• Better cost share and/or stacking ratio for underrepresented groups; • Design changes to help incentivize small enterprises, start-ups and emerging innovators;
• Greater emphasis on impacts and performance measurement; and,
• The launch of the Grants and Contributions Digital Platform solution for end-to-end online program administration.

Cost-Shared Strategic Initiatives under Sustainable CAP

• Cost-shared Strategic Initiatives are a joint undertaking whereby both federal and provincial/territorial (PT) governments provide funding for programming that is designed and delivered by PTs.
• These initiatives represent a $2.5 billion investment over 5 years: 60% federally funded ($1.5 billion) and 40% PT funded ($1 billion) including $250 million for the Resilient Agricultural Landscape Program.
• The main objective is to provide the PT governments with flexibility to meet regional priorities and resolve issues while contributing to broader national outcomes that are developed collaboratively among federal, provincial and territorial governments.
• Funding will be allocated among the five Priority Areas identified in the Guelph Statement:
• Climate Change and Environment;
• Science, Research, and Innovation;
• Market Development and Trade;
• Building Sector Capacity, Growth, and Competitiveness; and,
• Resiliency and Public Trust.
• Key changes to the programs since the last framework include:
• Introduction of the new Resilient Agricultural Landscape Program;
• PT governments agreed to a level of proportionate spending of at least 12.5% of cost-shared funds to support GHG emissions-reducing and carbon sequestration activities; and,
• Increased emphasis on understanding programming impact through improved data sharing, results reporting, and a commitment to contribute to measurable outcomes.

• Resilient Agricultural Landscape Program (RALP)
• The new $250 million cost-shared program will use an ecological goods and services payment approach (per-acre payments to farmers and land agreements) to support on-farm adoption of environmental beneficial management practices that reduce GHG emissions and increase carbon sequestration.
• It will be designed and delivered by provinces and territories to reflect local conditions and regional needs.
• RALP will complement other programs that help to develop and implement farming practices that use the natural ability of agricultural land to address climate change.

Business Risk Management Programs (BRM) under Sustainable CAP
• The suite of BRM programs are detailed in the card entitled Business Risk Management Programs.

• Launched on April 1, 2023 and replacing the Canadian Agricultural Partnership, the Sustainable Canadian Agricultural Partnership is a 5-year, $3.5 billion investment by federal, provincial and territorial governments to strengthen and grow Canada’s agriculture and agri-food sector.
• Sustainable CAP includes $1 billion in federal programs and activities, and $2.5 billion in cost-shared programs and activities funded by FPT governments.
• This new framework provides an additional $500 million in support for the sector, and includes a commitment to reduce GHG emissions by 3 to 5 megatonnes, strengthen the resiliency of the food system, and encourage diversity and inclusion in the sector.
• As with the previous framework, some Sustainable CAP programs are experiencing a high demand.