Question Period Note: AAFC’S 2024-25 SUPPLEMENTARY ESTIMATES (B)

R.1 If approved, Agriculture and Agri-Food Canada’s 2024–25 Supplementary Estimates (B) of $123.4 million would provide funds to support the agriculture and agri-food sector.

Approximately 49% of the funds would support the implementation of federal and cost-shared initiatives under Sustainable Canadian Agricultural Partnership, a five-year (2023–2028), $3.5 billion investment by federal, provincial and territorial governments to strengthen and grow Canada's agriculture and agri-food sector.

As announced in Budget 2024, we are investing $19.9 million in the Local Food Infrastructure Fund to strengthen food security and $3.4 million in support of sustainable pesticide management.

Agriculture and Agri-Food Canada’s (AAFC) 2024–25 Supplementary Estimates (B) total $123.4 million, which, when added to the 2024–25 Main Estimates, the 2024–25 Supplementary Estimates (A), amounts carried forward from the prior year and amounts transferred from TB central votes, bring the Department's total 2024–25 Spending Authorities to Date to $3.991 billion

AAFC’s 2024–25 Supplementary Estimates (B) of $123.4 million are made up of the following:

ITEM

$ Thousands

VOTED

STATUTORY

TOTAL

Appropriations

1

Funding to support cost-shared initiatives under the Sustainable Canadian Agricultural Partnership

59,897

• 59,897

2

Funding to support poultry and egg supply-managed producers

25,000

• 25,000

3

Funding for the Local Food Infrastructure Fund (Budget 2024)

19,422

508

19,930

4

Reinvestment of royalties from intellectual property

6,916

• 6,916

5

Funding to strengthen the capacity and transparency of the pesticide review process (Budget 2024) (horizontal item)

3,340

• 3,340

6

Reinvestment of revenues from sales and services related to research, facilities and equipment and other revenue

2,011

• 2,011

Total Appropriations

116,586

508

117,094

Transfers

Transfers from Other Organizations

7

From Public Works and Government Services, Fisheries and Oceans and Natural Resources for the Federal Contaminated Sites Action Plan

9,160

• 9,160

8

From Health Canada for the Interdepartmental Indigenous Science Technology Engineering and Mathematics Cluster

50

• 50

9

From the Canadian Food Inspection Agency (CFIA) to cost share the Market Access Support System

20

• 20

Total transfers from Other Organizations

9,230

• 9,230

Transfers to Other Organizations

10

Transfer to Foreign Affairs, Trade and Development to support departmental staff located at missions abroad

(277)

• (277)

11

Transfer to CFIA to support initiatives that address food safety, plant and animal health, biosecurity and traceability under the Sustainable CAP

(2,638)

• (2,638)

Total transfers to Other Organizations

(2,915)

• (2,915)

Total Transfers

6,315

• 6,315

Grand Total

122,901

508

123,409

Due to rounding, figures may not add to the total shown

$59.9 million – Funding to support cost-shared initiatives under the Sustainable Canadian Agricultural Partnership – Vote 10 Contributions

These Supplementary Estimates include reprofiled unspent funding from 2023-24 related to the Sustainable Canadian Agricultural Partnership (Sustainable CAP) Cost-Shared multilateral framework agreement totalling $59.9 million in Vote 10 Contributions. This amount is being carried forward into 2024-25.

The Sustainable CAP five-year multilateral agreement creates a legal obligation for the Government of Canada to cost-share programs with Provinces and Territories on a 60:40 cost sharing basis. The flexibility to reprofile up to 25% of planned spending is included in Federal Provincial-Territorial agreements signed by all parties.

This amount is being carried forward into 2024-25 and is broken down as follows:

$42.0 million for Contributions in support of Provincial/Territorial delivered cost-shared programs under the Sustainable CAP;

$10.0 million for Contributions in support of the AgriScience program under the Sustainable CAP;

$5.5 million for Contributions in support of the AgriAssurance program under the Sustainable CAP;

$2.4 million for Contributions in support of the AgriMarketing program under the Sustainable CAP.

$25 million – Funding to support poultry and egg supply-managed producer – Vote 10 Contributions

AAFC is seeking to reprofile $25 million into 2024-25 from future years ($10 million from 2028-29, $10 million from 2029-30 and $5 million from 2030-31) to ensure funding is available for full and fair compensation to eligible producers in a timely manner, as committed by the Government of Canada. Demand has consistently exceeded the program’s annual budgets since its launch.

The Poultry and Egg On-Farm Investment Program (PEFIP) provides up to $759 million over 10 years (2021-22 to 2030-31) to help supply-managed poultry and egg producers adapt to market changes resulting from the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA).

$19.9 million – Funding for the Local Food Infrastructure Fund (Budget 2024) – Vote 1 Operating, Vote 5 Capital, Vote 10 Contributions and Employee benefit plan

This funding is part of $62.9 million over three years, starting in 2024-25, to renew and expand the Local Food Infrastructure Fund to support community organizations across Canada to invest in local food infrastructure, with priority to be given to Indigenous and Black communities, along with other equity-deserving groups. Part of the expansion will support community organizations to improve infrastructure for school food programs as a complement to the National School Food Program.

$6.9 million – Reinvestment of royalties from intellectual property – Vote 1 Operating

AAFC is seeking access to $6.9 million in Vote 1 Operating in 2024-25 related to royalties from intellectual property collected and deposited into the Consolidated Revenue Fund in 2023-24. 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.

$3.3 million – Funding to strengthen the capacity and transparency of the pesticide review process (Budget 2024) (horizontal item) – Vote 1 Operating

This funding is part of $39.0 M over two years (2024-25 & 2025-26) announced in Budget 2024 for Health Canada and AAFC to continue efforts to strengthen capacity and transparency of the pesticide review process. AAFC funding will total $6.68 million over two years. With this funding AAFC will continue to accelerate research efforts to develop Alternative Pest Management Solutions (APMS) in line with the Minister’s mandate to support food producers who choose approaches that reduce the need for chemical pesticides. AAFC will facilitate the adoption of APMS through demonstrations and knowledge transfer.

$2.0 million – Reinvestment of revenues from sales and services related to research, facilities and equipment, and other revenue – Vote 1 Operating

In accordance with the December 1993 MOU on revenue retention specific to AAFC and the Treasury Board, AAFC is seeking to access research-related revenues collected in the previous year. The $2.0 million in Vote 1 Operating in 2024-25 from sales and services related to research, facilities and equipment, and other revenue earned and deposited into the Consolidated Revenue Fund in 2023-24, will be reinvested into research activities.

Transfers from Other Organizations (totaling $9.2 million)

$9.2 million – Transfer from various Departments for the Federal Contaminated Sites Action Plan– Vote 1 Operating

This is a transfer from various Departments (Public Services and Procurement Canada, Fisheries and Oceans and Natural Resources to support remediation and assessment of contaminated sites within the context of the Federal Contaminated Sites Action Plan (FCSAP). This funding will be used by AAFC for Stage 2 remediation at a former agricultural research site in Kelowna, British Columbia. The remediation project is to address historically applied pesticides (pre-1970s) in surficial soils that were applied as per acceptable practices at the time.

$50 thousand – Transfer from the Department of Health for the Interdepartmental Indigenous Science Technology Engineering and Mathematics Cluster– Vote 1 Operating

AAFC will receive $50 thousand in 2024-25 from Health Canada in support of the Indigenous Science Technology Engineering and Mathematics (I-STEM) Cluster. The I-STEM Cluster is working to inform and enhance departmental policies, programs, activities and recruitment related to STEM disciplines to accelerate the advancement of Indigenous aspirations and innovation. AAFC is hosting the I-STEM Cluster Secretariat.

$20 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.

Transfers to Other Organizations (totaling ($2.9 million)

($277) 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 Manila, Philippines, net of a refund for a deletion of a trade commissioner position in Delhi and a trade officer position in Mumbai.

($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 2024-25:

• 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.

If approved, Agriculture and Agri-Food Canada’s 2024–25 Supplementary Estimates (B) of $123.4 million would provide funds to support the agriculture and agri-food sector.

Approximately 49% of the funds would support the implementation of federal and cost-shared initiatives under Sustainable Canadian Agricultural Partnership, a five-year (2023–2028), $3.5 billion investment by federal, provincial and territorial governments to strengthen and grow Canada's agriculture and agri-food sector.

As announced in Budget 2024, we are investing $19.9 million in the Local Food Infrastructure Fund to strengthen food security and $3.4 million in support of sustainable pesticide management.