2021–2022 Departmental Results Report

2021–2022 Departmental Results Report (PDF version, 2.3 MB)

International Standard Serial Number: 2560-9505

Agriculture and Agri-Food Canada

The Honourable Marie-Claude Bibeau
Privy Councillor, Member of Parliament
Minister of Agriculture and Agri-Food

Minister's message

The women and men who produce and process our food faced many challenges in 2021–22, with an ongoing pandemic, extreme weather, labour shortages, animal and plant disease, high input costs, supply chain disruptions, trade barriers and Russia's brutal and unjustifiable invasion of Ukraine.

Despite these challenges, Canada's agriculture and food industry continues to drive the country's economy, keeping our grocery shelves stocked with high-quality food, while posting a record $82.3 billion in agri-food and seafood exports.

During this trying time, Agriculture and Agri-Food Canada (AAFC) continued its investments and initiatives to help our producers and processors meet the labour shortfall, keep their workers safe, and continue to feed consumers in Canada and abroad.

To help livestock producers cover extra costs due to severe drought and wildfires, we worked with British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and invested $833 million under AgriRecovery. In collaboration with British Columbia, we also supported farmers who suffered damages as a result of the devastating floods, by injecting $228 million in federal-provincial support. We came to the aid of potato growers in Prince Edward Island when the United States suspended access to their market.

To create new opportunities for our farmers and strengthen food security, we successfully removed trade barriers for our canola and found ways to diversify trade, including with important markets in Asia-Pacific. We continued our strong support of Canada's supply management system, with $691 million in support over 10 years to help poultry and egg producers and processors adapt to market changes resulting from the implementation of the Canada–European Union Comprehensive Economic and Trade Agreement, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The pandemic has also been very difficult for families living with food insecurity. In 2021–22, we supported Canadian families impacted by the effects of the pandemic. Through investments of $150 million under the Local Food Infrastructure Fund and the Emergency Food Security Fund, we helped food banks meet greater demand and invest in their equipment such as refrigeration systems and greenhouses in remote and northern communities.

The sustainability of the sector has remained at the heart of our work in the sector, environmentally, economically, and socially. With the increasing frequency of extreme weather events, the sector's climate resilience and ability to feed the world are more vital than ever. That's why we have expanded our network of Living Laboratories, a made-in-Canada model bringing farmers and researchers together to develop sustainable practices that work in real farm conditions. Through the Agricultural Clean Technology and On-Farm Climate Action Fund programs, we have also

funded farmers so they may adopt sustainable practices and technologies such as cover crops and energy-efficient grain dryers.

Innovation remains critical to continuing to build a sustainable and competitive sector. The AgriInnovate Program has enabled farmers and food processors to stay on the cutting edge by focusing on projects such as precision agriculture, automation, robotics, and new export markets. We also supported innovation to reduce food waste. We launched the Food Waste Reduction Challenge, that generated more than 500 ideas to reduce food waste or transform it into sustainable new products, such as bioplastics.

To help farmers manage the many risks they face, we continued to improve our Business Risk Management programs. We increased interest-free advances under the Advance Payments Program to help producers with rising input costs. We also never stopped working with the pork industry to prevent the entry of African Swine Fever into Canada, a disease whose consequences would be devastating to the country if it were to enter.

The year 2021–2022 was a year of challenges, but also of great opportunities for Canadian farmers and food processors. The team at AAFC, in partnership with our agriculture and agri-food industry, along with the provinces and territories, contributed to mitigating risks and maximizing opportunities.

Moving towards the new five-year agricultural policy framework, the Sustainable Canadian Agricultural Partnership, which will begin in April 2023, it is imperative that we continue our collaboration to realize our vision of a Canada that continues to be a global leader in sustainable agriculture.

The Honourable Marie-Claude Bibeau
Privy Councillor, Member of Parliament
Minister of Agriculture and Agri-Food

Results at a glance

In 2021–22, Agriculture and Agri-Food Canada (AAFC) continued to work in collaboration with provincial and territorial governments, industry and other partners to create conditions for the long-term profitability, sustainability and adaptability of the Canadian agriculture and agri-food sector. The sector represents a complex and integrated supply chain that brings significant benefits at both provincial/territorial and national levels and plays a key role in driving Canada's economy, contributing $134.9 billion to Canada's gross domestic product (including food retail and food services) in 2021, and employing 2.1 million people. In addition, the value of agri-food and seafood exports reached $82.3 billion in 2021, already surpassing the Government of Canada target of $75 billion by 2025.

While increased consumer demand, higher food prices, and preferential market access contributed to the success of the sector, 2021–22 was also a year of unprecedented challenges. Devastating floods, drought, and wildfires in Ontario and the western provinces, the ongoing effects of the COVID-19 pandemic, an ongoing rise in global protectionism, and international crises such as the Russian invasion of Ukraine, were among the disruptions to production and trade patterns affecting the sector. In close collaboration with provincial and territorial governments, industry, and other partners, AAFC worked to respond to evolving stakeholder needs and strengthen the competitiveness of the agriculture and agri-food sector in order to achieve results for Canadians. The Department delivered year four of the five-year, $3 billion Canadian Agricultural Partnership policy framework (2018–23) through federal programs and activities, and by supporting provinces and territories in their delivery of cost-shared programming in their jurisdictions. Efforts focused on the Partnership's priority areas of growing trade and expanding markets; innovative and sustainable sector growth; and a diverse, dynamic and evolving sector. In addition, AAFC began engaging with the sector to inform the development of the next agricultural policy framework, the Sustainable Canadian Agricultural Partnership, which will begin in April 2023. Considerations from underrepresented and marginalized groups are being incorporated across the entire framework, which focuses on delivering a vision of being recognized as a world leader in sustainable agriculture and agri-food.

Departmental results achievements in 2021–22 aligned with commitments from the Minister of Agriculture and Agri-Food's mandate letter, broader Government of Canada priorities, and the Department's three core responsibilities. The total resources utilized by the Department in 2021–22 are as follows:

Total actual spending	Total actual full-time
$3,461,924,485	4,984

Leveraging opportunities from government investments and trade agreements to enhance sector competitiveness and diversity trade

Aligned with broader government objectives to increase and diversify Canadian exports, AAFC continued to support the agriculture and agri-food sector to take advantage of trade opportunities, and maintain or improve access to international markets. The Department continued to deliver market development programs and services to promote Canadian products, including through the Canadian Trade Commissioner Service, and worked to maintain industry engagement on key issues through fora such as the Sector Engagement Tables. AAFC worked alongside the Canadian Food Inspection Agency, Global Affairs Canada, and staff in Canadian Embassies and Consulates abroad, as well as with provinces, territories, and industry stakeholders to address market access issues, facilitate trade, and advocate for open and rules-based international trade in agriculture and agri-food products. This included implementing existing trade agreements, and working to negotiate new ones with the United Kingdom, Indonesia, the Association of Southeast Asian Nations, and India. Together, these initiatives will serve to strengthen competitiveness and grow the sector beyond the domestic market, ultimately contributing to the growth of agriculture and agri-food exports. Canada was the fifth-largest exporter of agri-food and seafood products in the world in 2021, despite the challenges posed by the global political environment and other disruptions to supply chains and international trade.

Departmental efforts also advanced commitments from the Minister of Agriculture and Agri-Food's mandate letter related to delivering initiatives under the Food Policy for Canada, and supporting supply-managed sectors affected by recent trade agreements. In 2021–22, additional investments were made in the Local Food Infrastructure Fund, and the Emergency Food Security Fund to reduce food insecurity issues resulting from the COVID-19 pandemic. The Department also launched two new programs for chicken, turkey, and egg farmers that commit a total of $691 million in support over 10 years, as well as a Supply Management Processing Investment Fund. The Department continues to work with supply-managed sectors to provide full and fair compensation with respect to the Canada-United States-Mexico Agreement.

Advancing agriculture and agri-food science to modernize sector research and improve environmental resilience

In 2021–22, the Department continued its collaborative approach to build the sector's scientific capacity to develop and adapt innovative practices, products, and processes. AAFC advanced its scientific research on mitigation of and adaptation to the impacts of climate change, particularly with respect to reducing risks and taking advantage of potential economic opportunities. The new Agricultural Climate Solutions (ACS) program was established to develop and implement beneficial farming practices that tackle climate change, and funding was provided to realize projects that increase soil carbon sequestration, reduce greenhouse gas emissions, and provide environmental co-benefits for soil, water, or biodiversity conservation through the program's two streams: the On-Farm Climate Action Fund, and Living Labs. In addition, the Agricultural Clean Technology Program helps farmers and agri-businesses continue to move towards a low-carbon economy, by supporting their development and adoption of the latest clean technologies. Through various Canadian Agricultural Partnership programs such as these, the Department supported the sector in addressing both commodity-specific and cross-cutting industry priorities, and provided support for innovative solutions to long-term risks and challenges that enhance Canada's agricultural competitiveness on the world stage. Climate change and the environment have been identified as priorities by federal, provincial and territorial Ministers of Agriculture under the forthcoming Sustainable Canadian Agricultural Partnership (2023–28), including focus areas on reducing greenhouse gas emissions and improving carbon sequestration, improving biodiversity and protecting sensitive habitats, and protecting and regenerating soil, water, and air quality.

Efforts at AAFC also continue to advance scientific research by exploring ways to improve agriculture's use of natural resources to respond to climate change (for example, water use efficiency, improved nutrient usage, improved soil health, and increased feed efficiency). This research supports the sector's long-term resilience and economic stability, and contributes to the Government's economic and environmental goals. While decisions regarding future investments remain complex and dynamic, the percentage of revenues generated on farms adopting innovative practices is expected to increase. In addition to programs supporting innovative projects, the Department continues to manage Living Laboratories sites in Manitoba, Ontario, Quebec, and Prince Edward Island, and has launched a new selection process under ACS Living Labs to continue growing the nationwide network and bring federal research teams, farmers, and other partners together to explore and test innovative solutions that will mitigate climate change in a real-life context. Departmental efforts in 2021–22 also advanced broader Government of Canada commitments related to enhancing climate and environmental resilience, including by working with federal, provincial, territorial and industry partners to inform the establishment of a Canada Water Agency, and contributing to the development of Canada's first National Adaptation Strategy.

Recognizing the vast innovation potential existing within diverse Indigenous knowledge and food systems, and the importance of Indigenous leadership in the effort to build a sustainable agricultural sector, the Department is increasing its efforts to ensure long-term, mutually beneficial research relationships with Indigenous partners. The Department continued working to ensure that science hiring practices promote inclusiveness and diversity by giving priority to both women and Indigenous candidates while hiring positions in new and emerging areas of science, strengthening scientific research in a way that reflects Canada's diversity, and supporting the future success of agriculture.

Helping the sector to manage environmental and business risks by providing faster and better adapted support to producers

Despite facing extreme challenges posed by unprecedented climate-related disasters, environmental conditions, trade disruptions, as well as the ongoing impacts of the COVID-19 pandemic, the agriculture and agri-food sector saw overall growth in 2021, as Canada's farmers, food processors and retailers worked tirelessly to deliver high-quality products to global customers. In collaboration with provincial and territorial governments and industry, and in line with the Minister of Agriculture and Agri-Food's mandate letter commitment, the Department continued delivering and making targeted improvements to its suite of Business Risk Management (BRM) programs to help the sector manage threats to their production and income. The Department increased available funding, launched new initiatives, increased benefit payments, and continued discussions on how to build in considerations for underrepresented and marginalized groups. A number of changes to the AgriStability program were also implemented in 2021–22, including removing the reference margin limit, which will increase support for producers with low allowable expenses. The Department began engagement with the sector to inform BRM programming needs under the Sustainable Canadian Agricultural Partnership (2023–28) including to integrate climate risk management, environmental practices, and climate readiness.

Assurance systems are increasingly important to meet consumer demand for products with specific characteristics, or that are produced using particular practices. In 2021–22, AAFC continued to provide programs and enabling services that help position the sector to meet consumer expectations of production and products. Consultations were held with industry partners to explore priorities and future plans for updating assurance programming to continue to help the sector to remain competitive. Collaboration with the Canadian Food Inspection Agency and the Federal Provincial Territorial Plant Health Committee enhanced surveillance and disease intelligence and improved communication and coordination, which led to early sharing and reporting of pest detection information and joint management responses.

For more information on Agriculture and Agri-Food Canada's plans, priorities, and results achieved, see the "Results: what we achieved" section of this report.

Results: what we achieved

Core responsibilities

Domestic and international markets

Description: Agriculture and Agri-Food Canada provides programs and services and works in collaboration with the sector to support its competitiveness at home and abroad. Agriculture and Agri-Food Canada also works to increase opportunities for the sector to export its products by maintaining and expanding market access and advancing agricultural interests internationally.

The Domestic and International Markets core responsibility is focused on advancing the following departmental results:

• The Canadian agriculture and agri-food sector contributes to growing the economy.
• Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions.

Results highlights - Domestic and International Markets

Domestic and international markets are critical to the prosperity of the Canadian agriculture and agri-food sector. Global integration has offered opportunities for the industry to expand and diversify Canada's agriculture and agri-food exports. Agriculture and Agri-Food Canada (AAFC) continues to support the agriculture and agri-food sector in seizing these opportunities through market development initiatives, targeted advocacy and engagement, trade negotiations, and market access efforts.

Departmental efforts to enhance the competitiveness of the sector serve to advance the Government of Canada's trade agenda and its overall priority for economic growth. In 2021–22, the value of agriculture, agri-food, and seafood exports surpassed the target set for 2025. While this increase can be attributed to several factors, including inflation, the agriculture and agri-food sector also overcame various disruptions and unpredictability in the economic environment due to extreme weather events, the COVID-19 pandemic, supply chain issues, and ongoing international trade uncertainties. In addition to helping to position the sector for success, the Department also advanced the commitments in the Minister of Agriculture and Agri-Food's mandate letter related to the Food Policy for Canada and working with supply-managed sectors to provide full and fair compensation with respect to the Canada-United States-Mexico Agreement.

Result 1: The Canadian agriculture and agri-food sector contributes to growing the economy

The agriculture and agri-food sector remained a resilient engine of growth and played a key role in driving Canada's economy in 2021–22, contributing $134.9 billion to Canada's gross domestic product and employing 2.1 million people, equivalent to 1 in 9 jobs in Canada. Overall agri-food and seafood exports totaled $82.3 billion in 2021, surpassing the target of $75 billion by 2025. The economic performance of the agriculture and agri-food sector is on track to meet the target for a compound annual growth rate of 2.5% between 2017 and 2025. Furthermore, the value of agri-food products sold (both internationally and domestically) saw a gain of 6.0%. Increased consumer demand, higher food prices and preferential market access contributed to the sector's success, and AAFC worked in close partnership with other federal departments, provinces and territories, and industry stakeholders across the country to help the agriculture and agri-food sector leverage market opportunities in support of achieving these results.

AAFC supports the agriculture and agri-food sector through a suite of market development tools and services to enhance market diversification and trade opportunities. As part of the Canadian Trade Commissioner Service, 40 agri-food trade specialists in 16 markets provided exporters with strategic local intelligence on topics ranging from cultural understanding, labelling requirements, or consumer trends, as well as other in-market support. In 2021–22, trade commissioners completed almost 120 new commercial transactions with buyers of Canadian agri-food products in markets around the world and delivered more than 2,300 services to help exporters achieve their international objectives. AAFC delivered six in-person flagship trade shows in key markets, supporting Canadian companies and provincial governments in their engagement efforts, with exhibitors reporting $459.2 million in actual and anticipated sales resulting from their participation.

The Department also built upon best practices gained from the previous year while adapting to the continued impacts of the global pandemic to deliver improved virtual and hybrid (combination of virtual and in-person) market development activities to keep Canadian companies connected with key buyer groups despite travel restrictions. In addition, AAFC continued to provide pathfinding services to understand stakeholder needs and guide them through available programs and services, and supported exporters with resources and market intelligence to inform their business decisions domestically and internationally.

Through the AgriMarketing Program, AAFC worked with recipients to expand their market reach through industry-led promotional activities that differentiate Canadian products and producers and leverage Canada's reputation as a producer of high-quality and safe food. Similarly, the Canada Brand program provided Canadian agri-food businesses and associations with a branding platform to strengthen their local and international promotions. The Department's ongoing efforts to diversify Canadian agricultural trade through market development initiatives are aligned with the Government of Canada's Export Diversification Strategy, and contributed to the growth of Canadian agriculture and agri-food exports in 2021–22.

AAFC strives to maintain productive dialogue between industry and government, to ultimately advance the growth and competitive position of the Canadian agriculture and agri-food sector. To further these efforts, two new thematic Sector Engagement Tables were launched in 2021–22 on Skills Development and Consumer Demand and Market Trends, complementing the existing engagement tables on Agile Regulations and Sustainability. The Canadian Agricultural Youth Council, an engagement forum targeting young Canadians, also served as an active consultative body to the Department throughout the year. In addition, given some of the exceptional circumstances and evolving challenges impacting the agriculture and agri-food sector during 2021–22, AAFC renewed its Food Sector Network, which allows the Department to engage across the food supply chain on issues such as sector-specific risks and mitigation strategies, and share other information of critical importance with federal, industry, and academic partners for managing future emergencies. AAFC has also worked closely with other government departments to coordinate outreach with sector representatives and federal, provincial, and territorial (FPT) partners, including through participation in working groups. The FPT working group on Retail Fees, for example, has engaged industry stakeholders to address issues within the supply chain, supported the efforts to develop a Code of Conduct and dispute resolution framework for the grocery sector, and will continue to monitor progress and provide guidance to FPT Ministers.

AAFC continued to deliver on the Government of Canada's commitment to support dairy, poultry, and egg sectors in adapting to market changes resulting from the implementation of the Canada–European Union Comprehensive Economic and Trade Agreement (CETA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In 2021-22, the Poultry and Egg On-Farm Investment Program and the Market Development Program for Turkey and Chicken were launched to support Canada's chicken, turkey, and egg farmers (see highlight box below). In addition, the $292.5-million Supply Management Processing Investment Fund was introduced in March 2022 and began providing financial support to processors of supply-managed commodities in 2022–23. The Department also continued to deliver the Dairy Direct Payment Program, with payments to over 9,500 farmers totaling $460.3 million in 2021–22, and extended the terms and conditions of the Dairy Farm Investment Program by one year to March 31, 2023, to allow recipients more time to complete projects due to labour- and market-related disruptions. Further work is also underway with supply-managed sectors, in line with the Minister's mandate letter commitment, to provide full and fair compensation with respect to the Canada-United States-Mexico Agreement.

AAFC also supports the economic growth of the agriculture and agri-food sector through efforts to help ensure that the Canadian food system is healthy, sustainable and inclusive. In 2021–22, the Department continued delivering initiatives under the Food Policy for Canada, which sets out a coordinated and systems-based approach to taking action on food-related opportunities and challenges while supporting positive environmental, health and social outcomes for the food system. Budget 2021 included an additional $10 million for the Local Food Infrastructure Fund (LFIF) to support rapid-response grants that help prevent hunger through investments in infrastructure needs. The LFIF is aimed at community-based, not-for-profit organizations, with a mission to reduce food insecurity by establishing and/or strengthening local food systems in the medium to long term. The LFIF supported projects totaling $20.3 million in 2021–22. In addition, the Government of Canada contributed $130.4 million to the Emergency Food Security Fund, bringing total funding under the initiative since April 2020 to $330 million. These additional investments were aimed at addressing the increased demand and fewer resources faced by food banks and local food organizations, as a result of the COVID-19 pandemic. The 2021–22 year also saw the launch of the AgriCommunication Initiative, a program that raises consumer awareness of Canadian agriculture and supports the sector's understanding of consumer preferences and expectations. The program may also support activities undertaken by domestic agricultural fairs and exhibitions that help strengthen public trust about the origin of the food and how it is produced. These activities support progress towards achieving the vision established for the Food Policy for Canada.

Result 2: Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions

Canada's international market presence is a major factor in the development and profitability of the agriculture and agri-food sector. In 2021, Canada was the fifth-largest exporter of agri-food and seafood in the world behind the European Union (EU), the United States, Brazil and China, exporting to over 200 countries. Exports have also continued to see a positive trend, increasing 10.6% in 2020 from the previous year, and a further 11.1% in 2021. The Department's efforts to strengthen competitiveness and grow the sector beyond the domestic market include opening, maintaining, and expanding access for Canadian products; pursuing free trade agreements with key partners; addressing trade issues; engaging with multilateral fora to advocate for rules-based trade; and positioning Canada as a preferred supplier of high quality agriculture, agri-food and seafood products. As a result, AAFC met its result indicators in 2021–22 measuring the degree to which the Department resolved or mitigated market access issues and advanced trade policy positions.

The global political environment and the threat of rising protectionism among trading partners has increased the risks for Canada's exports. In 2021–22, AAFC worked alongside the Canadian Food Inspection Agency (CFIA), Global Affairs Canada, other government agencies, and staff in Canadian missions abroad, as well as with provinces, territories, and industry stakeholders, to address market access issues and trade disputes informed by industry priorities, and to facilitate trade in products such as agricultural biotechnology. For example, AAFC and CFIA officials engaged regularly with officials from the EU to discuss EU policies and the Canadian food safety system, in order to advocate for science- and outcomes-based approaches to sustainable food production, to ensure trade is not disrupted by new policy approaches. By highlighting the scientific underpinnings of the Canada's food safety system, the Department sought mutually beneficial outcomes within the parameters of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). In addition, AAFC supported the Government of Canada's Team Canada approach, working closely with the province of Prince Edward Island (PEI) and industry, to support PEI potato producers impacted by trade disruptions related to an outbreak of potato wart. This collaborative effort included developing measures to support affected PEI potato farmers, helping to prevent the spread of potato wart to other parts of Canada, and engaging with the United States government at all levels to resolve the issue and resume full market access as quickly as possible.

Free trade agreements, such as CETA and the CPTPP, have supported the diversification of Canadian agricultural trade, in line with the Government of Canada's Export Diversification Strategy. The Department has continued to promote the interests of the agriculture and agri-food sector and advance its positions in trade negotiations with other nations. In 2021–22, negotiations began with both Indonesia and the Association of Southeast Asian Nations on potential new free trade agreements. In addition, Canada and India are considering an interim agreement, the Early Progress Trade Agreement, as an initial first step towards a Comprehensive Economic Partnership Agreement. Throughout these negotiations, AAFC has continued to promote the rigour of Canadian systems, its best practices, as well as its policies on food safety and sustainability internationally.

The Canada-United Kingdom (UK) Trade Continuity Agreement (TCA) entered into force on April 1, 2021 preserving preferential market access for both Canadian and UK businesses following the UK's departure from the EU. The TCA fully protects Canada's dairy, poultry and egg sectors, and provides no new incremental market access for cheese or any other supply-managed products. New bilateral negotiations were launched with the UK in March 2022 toward a new, comprehensive, Canada-United Kingdom Free Trade Agreement. In addition, Canada and other CPTPP parties have established an Accession Working Group to negotiate the terms of a potential accession of the UK to the CPTPP.

The Department continued to push for open and rules-based international trade in agriculture and agri-food products within international fora, and contributed to ongoing Government of Canada efforts to modernize the rules of the World Trade Organization (WTO). This included advancing agricultural trade policy reform in the WTO, with a view to making markets more fair. In a fully virtual format, Canada also worked through the WTO forum to increase and maintain market access for agricultural products through negotiations, including those with UK and the EU.

In addition, the Department continued to support a science- and risk-based approach to food safety, as well as the development of plant and animal health standards. Recognizing the key role played by International Standard-Setting Bodies (Codex Alimentarius, the International Plant Protection Convention, and the World Organization for Animal Health) in ensuring a predictable and transparent trade environment for the Canadian agriculture sector, AAFC provided grant funding to all three organizations in 2021–22. These financial contributions will support initiatives related to reducing the threat of African Swine Fever, the development of guidance around anti-microbial resistance, and monitoring systems that provide insights into the implementation of international standards.

Gender-based analysis plus (GBA Plus) - Domestic and International Markets

Advancing diversity and inclusion in the agriculture and agri-food sector remained a priority in 2021–22, as AAFC continued to explore ways to enhance diversity across the agricultural value chain and to make it more representative of all Canadians. Several departmental initiatives support the sector in becoming more inclusive, including the AgriDiversity Program, the Youth Employment and Skills Program, the Indigenous Agriculture and Food Systems Initiative, and the Indigenous Pathfinder Service. In addition, the Department applies GBA Plus analysis to identify, assess and address potential and existing barriers in its programs and policies. AAFC continues to support efforts by Global Affairs Canada to integrate GBA Plus into free trade negotiations, such as those launched with the UK or Indonesia, to ensure that benefits and opportunities of trade are shared with traditionally underrepresented groups such as women and Indigenous Peoples.

The Sector Engagement Tables are also focused on reflecting a more diverse membership. The tables, which focus on systemic, cross-cutting issues that affect the sector, are divided fairly equally between male and female participants, and each will have Indigenous members along with youth representatives from the Canadian Agricultural Youth Council. Discussions have also progressed around establishing additional engagement fora specifically for Indigenous Peoples and women in agriculture.

In 2021–22, the Department continued to explore barriers facing underrepresented and marginalized groups as well as opportunities to mitigate these barriers and further support their participation in the sector. The Department is developing a framework to ensure a coordinated and holistic departmental approach to advancing diversity, equity, inclusion and accessibility in the sector. Efforts are focused on initiating foundational analysis and research for the framework. For example, the Department is analyzing the participation of women in the sector and expanding that research to consider 2SLGBTQI+ communities. Further research has also been initiated to explore the dynamics for other underrepresented and marginalized groups within the sector, including Indigenous Peoples, youth, racialized communities, official language minority communities, and persons with disabilities. In addition, AAFC has developed value-chain data profiles for underrepresented and marginalized groups in the sector, and an inventory of current departmental actions, all to help inform a broader departmental approach to improve support for underrepresented and marginalized groups in agriculture.

In 2021-2022, the Department began sector engagement and negotiations with provincial and territorial governments to inform the development of the Sustainable Canadian Agricultural Partnership, which will replace the current Canadian Agricultural Partnership in April 2023. Diversity, Equity and Inclusion was included as a guiding principle in the Guelph Statement, issued by FPT Ministers in November 2021, whereby FPT governments will "work to address barriers to participation and consider the needs of underrepresented groups such as youth and women, and strengthen relationships with Indigenous Peoples to better support sector participation." Discussions continue with provincial and territorial governments on how to incorporate considerations for underrepresented and marginalized groups across the entire framework. A key element will be to include GBA Plus data collection for all programs to better understand who is accessing these programs and where barriers may exist.

Further information on the underrepresented and marginalized groups served by the Department's programs and initiatives, such as the Youth Employment and Skills Program, AgriDiversity program, and the Indigenous Agriculture Food Systems Initiative, can be found in the GBA Plus supplementary information table.

United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals - Domestic and International Markets

The 2030 Agenda for Sustainable Development, adopted by Canada and all 193 United Nations member states in 2015, is a global framework centered around an ambitious set of 17 Sustainable Development Goals (SDGs), covering the interconnected economic, social, and environmental dimensions of sustainable development. A 2030 Agenda National Strategy, led by Employment and Social Development Canada, was published in February 2021 and defines Canada's commitment to advancing progress on the SDGs, both at home and abroad, through widespread, collaborative engagement and action. A Federal Implementation Plan has also been developed to articulate how the federal government will contribute to the advancement of the National Strategy and how it will report on progress to Canadians.

AAFC's efforts under the Domestic and International Markets core responsibility support Canada's efforts to address the United Nations 2030 Agenda and the SDGs. Canada's agricultural trade policy encourages open trade and science-based approaches to governing food systems. This helps farmers around the world to reach customers, earn better incomes, and escape poverty and hunger. In addition, the delivery of initiatives under the Food Policy for Canada, contributed towards sustainable development objectives by reducing food waste and increasing access to nutritious food. The Department's work in these areas helps to advance the following SDGs:

• ending hunger, achieving food security and improved nutrition, and promoting sustainable agriculture (SDG 2);
• ensuring healthy lives and promoting well-being for all at all ages (SDG 3);
• promoting inclusive and sustained economic growth, productive employment, and decent work for all (SDG 8);
• ensuring sustainable consumption and production patterns (SDG 12); and,
• taking urgent action to combat climate change and its impacts (SDG 13).

Examples of departmental initiatives and programming include:

• ongoing efforts to diversify agricultural trade in support of the Government of Canada's Export Diversification Strategy, which is aimed at helping Canadian businesses access new markets;
• the Food Waste Reduction Challenge, which was introduced in 2020–21 to reduce food waste across the Canadian supply chain;
• the Local Food Infrastructure Fund, which increases access to nutritious food and helps strengthen local food systems; and
• the Emergency Food Security Fund, which supports food banks and community organizations to address challenges and significant disruptions caused by the COVID-19 pandemic.

Experimentation - Domestic and International Markets

In 2021–22, Departmental experiments progressed in testing new approaches to resolving food waste issues and supporting the agriculture and agri-food sector in becoming more inclusive. The Food Waste Reduction Challenge was launched in 2020 to accelerate and advance diverse and high-impact solutions to food waste in Canada. In May 2021, twenty-four semi-finalists were selected under the Business Models stream of the Challenge (seeking solutions to prevent or divert food waste). Their proposed solutions span a diverse range of areas including production, inventory management, transportation, food waste measurement, marketplace solutions, food safety, food recovery, upcycling, and organic waste treatment. Two grand prize winners are expected be selected in 2023. In addition, the Novel Technologies stream of the Challenge was launched in 2021, which focuses on technological solutions that extend the shelf life of perishable food or transform food waste, and accelerate their advancement within the Canadian market. In January 2022, eighteen semi-finalists were selected representing diverse areas such as green chemistry to create natural additives, edible coatings, or bioplastics. Semi-finalists will create a prototype of their technology, and six finalists will be chosen in 2023.

Under the AgriDiversity program, an experiment was launched in 2020 to increase applications to the program with the focus on incorporating the views of women on agriculture and agri-food issues at the local, provincial/territorial, and national levels. Projects were typically proposed and undertaken with national non-government organizations and target specific underrepresented groups to help improve capacity, build skills, and identify issues and remove barriers to participation. Information was collected on a project-by-project basis to determine the performance and impact the project has had on the targeted groups. In continuing this work, sector engagement sessions occurred in 2021–22 to gather representatives from the different regional groups of Canadian women in agriculture. These sessions offered an opportunity to discuss key barriers to increased sector participation for women, and share ideas on the resources and supports that are still needed. AAFC provided participants with information promoting AgriDiversity, including application guidance and a more favourable cost-share ratio, and successfully solicited further applications for industry-led initiatives that could be eligible for support under the program from women in agriculture.

Key risks - Domestic and International Markets

Despite seeing continued growth, the agriculture and agri-food sector faced significant challenges during 2021–22. In addition to rising global protectionism and the increasing threat of tariff and non-tariff barriers, the COVID-19 pandemic continued to have a direct impact on market access activities. While in some cases, the pandemic helped with the resolution of certain issues as some countries were seeking to firm-up or diversity supply sources, in other cases, several of Canada's key agricultural trading partners implemented new trade restrictions. Labour shortages and other disruptions in the agriculture and food supply chain, including as a result of extreme weather events related to climate change, and the presence of avian influenza in Canada, also greatly affected the sector, while changing consumption patterns resulted in a dramatic decline in food service purchases, and inflation increased input costs.

The Department was actively engaged in responses to such challenges and other trade irritants throughout the fiscal year, including issues such as: China's measures impacting imports of Canadian canola; a dispute initiated by the United States on Canada's dairy tariff rate quota administration; advocacy related to United States safeguard investigations targeting fresh fruit and vegetables; and working to restore full market access for PEI potatoes to the United States.

To mitigate and address such risks, the Department advanced the development and adoption of science-based international standards, provided guidance and recommendations, and actively engaged on these issues at the WTO, with international standard-setting bodies, and other multilateral partners. In addition, despite travel restrictions, AAFC worked closely with other government departments in 2021–22 to address market access irritants, including by engaging bilaterally and multilaterally to continue to build and strengthen trading partnerships, prevent market barriers or disruptions, and advance market entry.

In addition, AAFC has continued to work collaboratively with the agriculture sector to address challenges and to provide programming support when risks become beyond producers' capacity to manage (for more information, please see the "Sector Risk" section of this report).

Results achieved - Domestic and International Markets

The following table shows, for Domestic and International Markets, the results achieved, the performance indicators, the targets and the target dates for 2021–22, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental result	Performance indicators	Target	Date to achieve target	2019–20 actual result	2020–21 actual result	2021–22 actual result
The Canadian agriculture and agri-food sector contributes to growing the economy	Percentage change in the economic performance of the agriculture and agri-food sector	At least 2.5%[1]	December 2025	2.5%	3.6%	0.5%[2]
The Canadian agriculture and agri-food sector contributes to growing the economy	Percentage change in agri-food products sold	At least 4.5%	December 2025	2.8%	3.3%	6.0%[3]
The Canadian agriculture and agri-food sector contributes to growing the economy	Value of agriculture and agri-food exports	At least $75 billion by 2025	December 2025	$67.0 billion	$73.9 billion	$82.3 billion
Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions	Degree to which Agriculture and Agri-Food Canada advances the resolution or the mitigation of market access barriers, World Trade Organization disputes, and technical trade issues	At least 80%[4]	March 2022	84%	85%	80%[5]
Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions	Degree to which Agriculture and Agri-Food Canada advances trade policy through negotiations, agreements and discussions	At least 80%[6]	March 2022	87%	90%	90%
Note: Actual results are reported for the fiscal year that data becomes available. This aspirational target was established in 2019 based on provisional gross domestic product data. Following revisions to the Statistics Canada dataset, the Department is reviewing this target and expects to revise it for future reporting. For 2021–22, this indicator has fallen below its target as the Canadian agriculture and agri-food sector faced a number of challenges in 2021, notably the COVID-19 pandemic and extreme weather conditions that disproportionately affected crop production, which ultimately put downward pressure on the sector's economic performance. Data collected and calculations are as of June 2022. Statistics Canada data is constantly subject to revisions to reflect the most accurate and up-to-date information and, as such, reported numbers and target calculations based on those numbers, may fluctuate from year-to-year and may not always be comparable to previous calculations. Based on the most recent updates, the results for previous years have been recalculated and are therefore different from what was reported in previous DRRs (re-profiled GDP results: 2019–20 = 1.6%; 2020–21 = 1.7%; 2021–22 = 0.5%). A number of factors contributed to the growth of this indicator in 2021–22, including: post-pandemic rebound in agri-food capacity; post-pandemic rebound in domestic as well as export demand for agri-food products; higher food prices; a favourable exchange rate relative to the United States dollar; and increased household disposable income. Data collected and calculations are as of June 2022. Statistics Canada data is constantly subject to revisions to reflect the most accurate and up-to-date information and, as such, reported numbers and target calculations based on those numbers, may fluctuate from year-to-year and may not always be comparable to previous calculations. Based on the most recent updates, results for previous years have been recalculated and are therefore different from what was reported in previous DRRs (re-profiled change in agri-food products sold results: 2019–20 = 3.5%; 2020–21 = 3.4%; 2021–22 = 6.0%). Performance against this indicator and target is self-assessed based on a scale of 0% to 100%, whereby a score of 80% to 99% indicates the following: (1) that activities required to advance the resolution and mitigation of market access barriers are undertaken effectively; (2) that, with respect to World Trade Organization disputes and technical trade issues, all Canadian partners and stakeholders are engaged to understand issues; (3) that policy advice is provided in response to most requests; and (4) that frequent problem-solving discussions are held. Additional information on the scale and methodology used is available on GC InfoBase. Although this indicator (80%) has met the target to "maintain a score above 80%", the 2021–22 result is much lower than in previous years due to market access challenges including protectionism and shifting trade policies. In addition, the COVID-19 pandemic limited the ability for the Department to advance or develop relationships in support of increasing trade – in-person meetings were not possible through much of the year, many events were cancelled and, in some cases, virtual engagement was simply not as effective as in person. Performance against this indicator and target is self-assessed based on a scale of 0% to 100%, whereby a score of 80% to 99% indicates strong engagement to bring Canada's position forward; and evidence that key issues have been advanced in promoting or advancing Canadian policy positions. Additional information on the scale and methodology used is available on GC InfoBase.

Budgetary financial resources (dollars) - Domestic and International Markets

The following table shows, for Domestic and International Markets, budgetary spending for 2021–22, as well as actual spending for that year.

2021–22 Main Estimates	2021–22 planned spending	2021–22 total authorities available for use	2021–22 actual spending (authorities used)	2021–22 difference (actual spending minus planned spending)
705,003,048	705,003,048	930,430,629	884,355,981	179,352,933

Note: In 2021-22, actual spending was greater than planned spending due to emergency support provided in response to COVID-19 for emergency food banks and local food organizations under the Emergency Food Security Fund as well as the Youth Employment and Skills program, to support the economic recovery from the COVID-19 downturn. In addition, it reflected support for new supply management initiatives (the Poultry and Egg On-Farm Investment Program and the Market Development Program for Turkey and Chicken), offset by delays in the completion of projects under the Dairy Farm Investment Program due to the COVID-19 pandemic.

Human resources (full-time equivalents) - Domestic and International Markets

The following table shows, in full‑time equivalents, the human resources the Department needed to fulfill this core responsibility for 2021–22.

2021–22 planned full-time equivalents	2021–22 actual full-time equivalents	2021–22 difference (actual full-time equivalents minus planned full‑time equivalents)
515	523	8

For more information, see the "Human resources" section of this report.

Financial, human resources and performance information for Agriculture and Agri-Food Canada's Program Inventory is available in GC InfoBase.

Science and innovation

Description: Agriculture and Agri-Food Canada conducts scientific research, develops new knowledge and new technologies, and transfers the results to the agriculture and agri-food sector. Agriculture and Agri-Food Canada also works with industry and other partners to strengthen the sector's capacity to develop and adopt innovative practices, products, and processes.

The Science and Innovation core responsibility is focused on advancing the following departmental results:

• The Canadian agriculture and agri-food sector knowledge base is increased through Agriculture and Agri-Food Canada supported scientific and innovative research.
• The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices.

Results highlights - Science and innovation

Under the Science and Innovation core responsibility, Agriculture and Agri-Food Canada (AAFC) collaborates with industry, academia, and other federal, provincial, and territorial government partners to help position the agriculture and agri-food sector for future success, including in the important area of climate change. Efforts in 2021–22 focused on research and innovation for mitigation and adaptation to climate change; ensuring that science capacity is maximized; and supporting industry to adopt practices that improve resilience, with an emphasis on the environment and clean growth.

In 2021–22, the new Natural Climate Solutions Fund was established by the Government of Canada, which included programming for Agricultural Climate Solutions (ACS). The Department also worked closely with provinces, territories and producers to support the sustainable growth of the agricultural and agri-food sectors; deliver on the Government of Canada's strengthened climate plan to fight climate change; support ongoing commitments to reduce agriculture's environmental footprint, and advance the Minister's mandate letter commitments. For example, AAFC is working with Environment and Climate Change Canada and other federal departments, as well as with provinces, territories, and industry stakeholders to inform the establishment of a Canada Water Agency to identify best practices to keep fresh water safe, clean and well-managed. The Department is also contributing to the development of Canada's first National Adaptation Strategy that will outline how the Canadian economy and society, including the agriculture sector, can be more resilient and prepared for the impacts of climate change.

Result 1: The Canadian agriculture and agri-food sector knowledge base is increased through Agriculture and Agri-Food Canada supported scientific and innovative research

In 2021–22, the Department contributed to the Government's economic and environmental goals by supporting scientific research that led to innovative products, processes and practices that were commercialized and adopted by the agriculture and agri-food industry. Efforts by AAFC to increase federal agriculture science capacity in new areas of research, and to leverage the Department's strengths to collaborate on and convene research and development activities, contribute to the increase of the Canadian agriculture and agri-food sector's knowledge base. From 2018 to 2022, the Department hired 76 new positions in emerging fields such as predictive analytics, phenomics, and clean technologies.

Achieving results that help create an efficient, sustainable and thriving sector, and conducting scientific research to support the long-term resilience and economic stability of the agri-food sector, remains a priority for the Department. The Canadian Agricultural Partnership, a $3-billion five-year (2018-23) investment by federal, provincial and territorial (FPT) governments, continues to provide support for solutions to long-term risks and challenges and to enhance Canada's agricultural competitiveness on the world stage. For example, the AgriScience Program accelerates the pace of innovation by providing funding and support for pre-commercial science activities and cutting-edge research that benefits the agriculture and agri-food sector and Canadians. Through partnerships with industry, government, and academia, 19 AgriScience Clusters have continued national research and development to address commodity-specific and cross-cutting industry priorities like bioproducts and food processing.

As of May 2022, 84 projects have been approved under the AgriScience Program since its launch in 2018, including 23 in 2021–22. Examples include:

• examining the effects of probiotics on honeybee health to improve disease immunity, hive performance, life expectancy, and production quality;
• state-of-the-art dehydration technology for valuable and heat-sensitive agri-products to prevent nutrition loss, shorten the drying cycle, minimize energy consumption, and enhance productivity; and
• the evaluation of seaweed as a value-add component of cattle feed and its effect on performance and methane reduction during animal trials.

AAFC advanced its scientific research on mitigation of and adaptation to the impacts of climate change, particularly with respect to reducing risks and taking advantage of potential economic opportunities. One example of climate change research that explored ways to improve agriculture's use of natural resources was a project with university researchers in Manitoba and Alberta aimed at increasing the efficiency of the Soil and Water Assessment Tool  (SWAT). The project increased understanding of the susceptibility of soil to erosion and generated a new "erodibility factor" which allowed researchers to find that two-thirds of Canadian agricultural soil is at a high risk for erosion. Another example is a study that identifies crop management practices best suited to address climate change with respect to nitrogen leaching which impacts phosphorus availability for plants. The findings will be delivered to farmers through knowledge and technology transfer events such as extension seminars, field days, and through the agricultural media.

The Government of Canada has joined over 120 countries in committing to reach net-zero emissions by 2050, and all sectors including agriculture, are expected to contribute to this emission reduction target. In March 2022, the Minister of Environment and Climate Change established Canada's 2030 Emissions Reduction Plan which includes an investment of $470 million for the expansion and extension of the ACS: On-Farm Climate Action Fund to help farmers adopt sustainable practices in the areas of cover cropping, rotational grazing and nitrogen management. The Government is also investing $330 million to triple funding for the Agricultural Clean Technology (ACT) Program which supports the development and purchase by farmers of more energy-efficient equipment in order to make progress towards a low-carbon economy and promote sustainable growth in the agriculture and agri-food sector.

In June 2021, the ACT Program opened for applicants and the first wave of 60 approved projects was announced in February 2022. Funding was allocated for farmers and agri-businesses which focused on three priority areas: green energy and energy efficiency; precision agriculture; and the bioeconomy. At the end of fiscal year 2021–22, 79 projects were contracted under the Adoption Stream, and four projects were approved under the Research and Innovation Stream, for a total of over $25 million in committed funds.

Reducing nitrous oxide emissions from nitrogen fertilizer use will also contribute to meeting and exceeding Canada's greenhouse gas (GHG) emissions reduction target and achieving net-zero emissions by 2050. The Department held preliminary discussions with producer groups and provincial and territorial partners in 2021 to work together on an approach to achieve Canada's target to reduce fertilizer emissions by 30%. This engagement informed a Discussion Document, and additional consultations were launched in March 2022 to further guide the development of this approach for achieving Canada's fertilizer emissions reduction target.

By confirming its support for the Global Methane Pledge in October 2021, Canada has also committed to taking action to reduce global methane emissions by 30% below 2020 levels by 2030. With approximately 30% of Canada's methane emissions coming from the agriculture sector, AAFC will be working closely with partners and stakeholders to identify opportunities and barriers for emissions reductions. Consultations on the development of an approach for addressing methane within the agriculture sector will take place as part of the Department's broader engagement on a new green agriculture plan for Canada, a commitment in the Minister of Agriculture and Agri-Food's mandate letter.

Departmental results related to scientific and innovative research are assessed against indicators that measure the level of collaboration or citation involved in departmental scientific publications. Although a small drop in publication rates was seen in 2021 due to the impacts of the COVID-19 pandemic, the results remain on track, meeting the established target of at least 75% of AAFC's scientific publications being produced in collaboration, and an average of at least 15 citations per departmental scientific publication over the past five years.

Result 2: The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices

In 2021–22, the Department continued to focus on collaborative science and technology efforts that are relevant and beneficial to Canadian industry. By supporting investments in the commercialization and adoption of new innovations, industry was able to mitigate risks associated with applying new technologies to commercial-level production. As of March 31, 2022, the AgriInnovate Program funded 29 projects in the priority areas of precision agriculture, advanced manufacturing, automation, robotics, value-added agri-sectors, and growing export markets. Project examples include: the construction of a new facility to produce insect-based animal feed contributing to a more sustainable food system; and the development of an analytics platform to aid in better controlling diseases and insects in various crops and increasing their yields.

In 2021–22, the Department continued to fund collaborative federal research projects through the Living Laboratories Initiative, a coordinated, long-term, nationwide network of living labs sites. These sites bring together farmers, scientists, and other partners to co-develop, test, and monitor innovative practices and technologies in a real-life context. The newest site in 2021-22, representing an investment of $4.2 million, launched in the Lake Erie region of Ontario in May 2021. Its research focus is the reduction of soil and nutrient runoff from agricultural land, improving water quality, conserving soil health, and increasing biodiversity on agricultural lands in the province.

Under the Natural Climate Solutions Fund, AAFC is partnering with Natural Resources Canada and Environment and Climate Change Canada to develop projects through the Agricultural Climate Solutions (ACS) program that develop and implement beneficial farming practices to tackle climate change. Using practices such as cover crops and rotational grazing, farmers can store carbon and reduce greenhouse gas emissions from their lands, while providing environmental benefits related to adaptation and resilience such as better nitrogen management. The ACS has two streams: Living Labs, and the On-Farm Climate Action Fund.

The ACS-Living Labs stream, launched in April 2021, is a $185 million, 10-year program that will establish a strong Canada-wide network of living labs. It will adopt the same approach as the Living Laboratories Initiative in every province, to focus on management practices that reduce Canada's environmental footprint and enhance climate resilience. Engagement sessions were held in British Columbia, Alberta, Saskatchewan, Nova Scotia, New Brunswick, and Newfoundland and Labrador in 2021–22. Applicants developed partnerships and project proposals to address the priorities of the ACS program: increasing soil carbon sequestration, reducing greenhouse gas emissions, and providing co-environmental benefits. Project proposals are being evaluated and ACS-Living Labs projects are expected to launch later in 2022.

The On-Farm Climate Action Fund stream, launched in August 2021, is a $200 million, three-year fund from 2021 to 2024 that will support farmers in adopting beneficial management practices that store carbon and reduce greenhouse gases in three areas: nitrogen management, cover cropping and rotational grazing practices. In 2021–22, 89 applications were received and 12 were approved. The recipient organizations will launch projects in the 2022 growing season.

Departmental results assess the effectiveness of the Canadian agriculture and agri-food sector in transforming ideas or adopting new technologies, products, practices, processes and systems. Despite the impacts of the COVID-19 pandemic that limited the development of new innovations in 2021–22, the Department remains on track to achieve the goal of 500 new innovations over the duration the Canadian Agricultural Partnership framework (2018–23). Other metrics focus on the percentage of revenues generated on farms adopting innovative practices and the percentage of processors developing and/or introducing innovations. Although several risk factors create uncertainty about future investments, the percentage of revenues generated on farms adopting innovative practices is expected to increase due to strong farm incomes.

Gender-based analysis plus (GBA Plus) - Science and Innovation

Promoting gender equality, diversity, and inclusiveness is a government-wide priority and continues to be supported by AAFC through its science and innovation work. GBA Plus highlights the importance of a diverse and representative workforce in providing the combination of skills and expertise that is required to address the complex challenges facing the agricultural sector. In 2021–22, AAFC worked to ensure that its efforts in science promote inclusiveness and reflect Canada's diversity, including by giving priority to both women and Indigenous candidates in staffing processes. Through the Department's Accelerated Staffing Initiative, for example, 41% of staffed science positions were filled by women, and four Indigenous scientists were hired from 2018 to 2021.

AAFC also continued to educate and influence youth about possible career paths in science, and worked to inspire the next generation of Canadian female agricultural scientists through webinars, training sessions, and the activities of its diversity networks, such as the Women in Science, Technology, Engineering and Mathematics (WiSTEM) Network. The WiSTEM Network promotes an environment in science and science-related activities at AAFC that is inclusive and welcoming for women, including by celebrating the achievements of women in science professions (see highlight box below).

In addition, the Department continued to facilitate mutually beneficial research partnerships and support Indigenous science capacity in the agriculture and agri-food sector. The Department's Indigenous Science Liaison Office (ISLO) provided tailored advice, support, and guidance on building relationships, engaging, and co-developing research projects with Indigenous partners in science. In 2021–22, among other initiatives, the ISLO developed an Indigenous science strategy for the Department that outlines principles, approaches, and intended outcomes supporting Indigenous aspirations in agriculture, and for co-developing a path forward for improving relationships with, and outcomes for, Indigenous Peoples though scientific cooperation.

The Department also continued to lead the interdepartmental Indigenous Science, Technology, Engineering and Math (I-STEM) Cluster, which works to inform and enhance federal policies, programs, activities, and recruitment efforts in order to expand support for Indigenous priorities and innovation in agricultural and environmental research, technology development and transfer, and natural resource stewardship. In 2021–22, the I-STEM Cluster gained two new members, growing to 13 federal departments and agencies, and continued to develop an Indigenous advisory circle to inform the Cluster's work. Continuing to foster partnerships internationally, the I-STEM Cluster was featured in presentations at the Asia Pacific Economic Cooperation webinars hosted by New Zealand in April and May 2021.

Further information on the underrepresented and marginalized groups served by the Department's programs and initiatives can be found in the GBA Plus supplementary information table.

United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals - Science and Innovation

AAFC's activities under the Science and Innovation core responsibility support Canada's efforts to address the United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). The Department continues to modernize its delivery of science and technology to provide leadership in the growth and development of a competitive, innovative, and sustainable Canadian agriculture and agri-food sector. The Department also embraces renewal and greening of its research facilities in support of the Government of Canada's Greening Government objective to be a global leader in government operations that are net-zero, resilient and green. The Canadian Agricultural Partnership and various research areas guided by the Department's science priorities contribute toward:

• ending hunger, achieving food security and improved nutrition, and promoting sustainable agriculture (SDG 2);
• ensuring availability and sustainable management of water and sanitation for all (SDG 6);
• ensuring access to affordable, reliable, sustainable, and modern energy for all (SDG 7);
• promoting inclusive and sustained economic growth, productive employment, and decent work for all (SDG 8);
• building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation (SDG 9);
• ensuring sustainable consumption and production patterns (SDG 12);
• taking urgent action to combat climate change and its impacts (SDG 13); and
• protecting, restoring, and promoting sustainable use of terrestrial ecosystems, sustainably managing forests, combatting desertification, halting and reversing land degradation, and halting biodiversity loss (SDG 15).

Examples of departmental programming and initiatives include:

• the ACS Program, which helps to develop, test and implement farming practices to tackle climate change, including through the Living Labs stream (which supports the co-development of technologies and practices that sequester carbon and/or mitigate greenhouse gas emissions) and the On-Farm Climate Action Fund (which supports farmers in adopting beneficial management practices that store carbon and reduce greenhouse gases);
• the ACT Program, which provides funding for farmers and agri-businesses to develop and adopt the latest clean technologies to reduce GHG emissions and enhance competitiveness; and
• various activities under the Foundational Science and Research Program, such as undertaking research to explore ways to improve water use efficiency, nutrient usage, and soil health, and to increase feed efficiency, leading to new tools, models, and practices that positively impact the environment.

Experimentation - Science and Innovation

In 2021–22, the Department continued to develop and test innovative approaches to science and innovation programming. Innovative program delivery approaches have been implemented through the ACS Program, in both the Living Labs and On-Farm Climate Action Fund streams, as part of the broader Natural Climate Solutions Fund, in order to tackle climate change and Canada's environmental footprint. Both streams leverage existing networks in their innovative delivery models. For example, Living Labs brings together farmers, scientists, academia, and sector partners, establishing strong Canada-wide collaboration to co-develop, test, implement, and monitor beneficial management practices (BMPs) on working farms that store carbon, reduce GHG emissions, and achieve other environmental co-benefits. The On-Farm Climate Action Fund supports farmers in the adoption of BMPs by allocating funding to initial recipients who then further distribute the funds to producers, in order to implement immediate on-farm action in the areas of nitrogen management, cover cropping, and rotational grazing. Both streams have strong knowledge and peer-to-peer learning activities through vocational training, coaching, workshops, courses and farm visits designed to develop skills and transfer knowledge.

Further, AAFC has developed and is testing approaches to increase representation of underrepresented and marginalized groups through departmental programs. This includes piloting the use of favorable cost-share ratios for underrepresented and marginalized groups through programs such as ACT.

Key risks - Science and Innovation

The Canadian agriculture and agri-food sector faces a variety of risks every year: unpredictable weather patterns and extreme weather events significantly affected Canadian agriculture with varying effects across regions, and climate change can create more favourable conditions for pest survival and migration. As seen in 2021, drought and excessive heat can stress crops and livestock and lower yields, while excessive moisture resulting in flooding can have devastating impacts on farm operations, infrastructure, and the loss of arable land.

To mitigate the new and increasing risks faced by Canadian producers, AAFC continued to design and support scientific research and provide programming that contributes to the agri-environmental resilience of the sector. In 2021–22, the Department increased its focus on scientific research on climate change, particularly risk reduction and strengthened economic opportunities. New programming areas are also helping to address these risks. For example, the $165-million ACT Program includes $50-million for the purchase of more efficient grain dryers for farmers across Canada and $10-million toward powering farms with clean energy and moving off diesel. The ACS programming supports immediate actions to reduce on-farm emissions and also to provide environmental co-benefits to help the sector adapt and build resilience to climate change and extreme weather events.

In 2021–22, COVID-19 restrictions caused substantial disruption to project milestones and objectives for science and innovation – largely due to financial impacts, reduced investments, or skilled labour shortages. However, these did not result in cancellation of initiatives, due to the goodwill and resiliency of departmental staff and programs, as well as that of industry partners who had to accommodate project changes. It is anticipated that the overall effects of the pandemic on the science portfolio will not be fully realized for a few more years.

To mitigate this risk, the Department supported knowledge-transfer activities to accelerate the adoption and prioritization of investments in science and innovation. In addition, AAFC continued to evaluate and prioritize its research to ensure that science capacity is maximized and that industry is supported to adopt practices that improve resiliency, with an emphasis on the environment and clean growth.

Results achieved - Science and Innovation

The following table shows, for Science and Innovation, the results achieved, the performance indicators, the targets and the target dates for 2021–22, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental result	Performance indicators	Target	Date to achieve target	2019–20 actual result	2020–21 actual result	2021–22 actual result
The Canadian agriculture and agri-food sector knowledge base is increased through Agriculture and Agri-Food Canada supported scientific and innovative research	Percentage of Agriculture and Agri-Food Canada scientific publications produced through collaboration	At least 75% Collaboration with external collaborators rises to at least 75% of Agriculture and Agri-Food Canada peer-reviewed scientific publications	March 2023	77%	79%	77%
The Canadian agriculture and agri-food sector knowledge base is increased through Agriculture and Agri-Food Canada supported scientific and innovative research	Number of citations as a proportion of Agriculture and Agri-Food Canada scientific publications	An average of at least 15 citations per Agriculture and Agri-Food Canada peer-reviewed publication in the span of 5 years is maintained	March 2022[1]	15 (based on citations from 2014 to 2019, for peer-reviewed publications published in 2014)	17 (based on citations from 2015 to 2020, for peer-reviewed publications published in 2015)	17 (based on citations from 2016 to 2021, for peer-reviewed publications published in 2016)
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Number of new technologies, products, practices, processes, or systems that are available for transfer to the sector	Average development of 100 new innovations annually with the goal of achieving 500 over the Canadian Agricultural Partnership framework (2018-2023)	March 2023	108	121	72[2]
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Percentage of revenues generated on farms adopting innovative practices	At least 55% of total Canadian agricultural gross revenues are generated by farms that adopt innovative products, processes, or practices between 2023 and 2025	December 2025[3]	Not available	64% (based on results from the 2019 Farm Financial Survey for the period from 2017 to 2019)	Not available (results available in 2023)
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Percentage of processors developing and/ or introducing innovations	75% of food processors with sales of $1 million or more introducing at least one product, process, marketing or organizational innovation between 2021 and 2023[4]	December 2023	72% (based on survey results for 2016 to 2018)	Not available	Not available (results available in 2025)
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Index of Agri-Environmental Sustainability (water, soil, air quality, biodiversity)	At least an Index of 71[5]	March 2030[6]	Not available	Not available	68[7] (based on the 2016 Census of Agriculture)
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Percentage change in the productivity of the agriculture and agri-food sector	At least 1.4% Agriculture sector: Maintain annual productivity growth rate at 1.4% between 2016 and 2026	December 2026[8]	Not available	Not available	Not available
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Percentage change in the productivity of the agriculture and agri-food sector	At least 0.2% Agri-food sector: Compound annual growth rate increases to at least 0.2% between 2016 and 2026	December 2026[9]	Not applicable	0.1% (compound annual growth rate from 2016 to 2017)	−0.2%[10] (compound annual growth rate from 2016 to 2018)
Note: Actual results are reported for the fiscal year that data becomes available. Results that are "not available" are due to lag times in data availability, including as noted below. Indicator measures citations in the span of five years, between time of publication and citations. This result fell under its annual target in 2021–22 due to the effects of the COVID-19 pandemic, but results are expected to pick up again as normal work resumes. The indicator is still on track to meet its ultimate goal of 500 over the course of the Canadian Agricultural Partnership policy framework (the cumulative total is now 407). Data from the Farm Financial Survey is available every two years with a two-year lag time. Baseline and target were established based on the 2016–18 "Survey on Innovation in the Food Processing Industry" in 2019. The next reference period for the Survey will be 2021 to 2023, with data available in 2025. The Agri-Environmental Sustainability Index ranges from 0-100, whereby 0-19 represents an "undesirable" status, 20-39 represents "poor," 40-59 represents "moderate," 60-79 represents "good," and 80-100 represents "desired". An index of 71 would indicate that overall water, soil, air, and biodiversity quality related to agricultural lands is rated as "good" or, in other words, that agri-environmental health is at low risk of being significantly degraded. The calculation of the Index is based on four sub-indices for water quality, air quality, soil quality, and biodiversity. Indicator is dependant on Census of Agriculture data, which is collected every five years, and then has a five-year lag time for the data to be processed, analyzed, and reported. The reported result of 68 marks a four-point increase from the Index's baseline of 64 (2001), driven by increases across all sub-indices, and demonstrating progress towards achieving the target of 71 by 2030. Indicator for the agriculture/primary sector is dependant on Census of Agriculture data, which is collected every five years, and then has a three-year lag time for results calculation. The next update will use 2021 Census data, which will be released in 2024. Indicator for the agri-food/processing sector has a four-year lag time; 2026 result will be available in March 2030. Productivity typically grows in spurts and it is not uncommon to see slowdowns or even small negative trends in productivity over the short term. Although 2016–17 and 2017–18 growth rates were not trending towards the target, recent overall sector performance suggests the sector is still on track to meet the target by 2026.

Budgetary financial resources (dollars) - Science and Innovation

The following table shows, for Science and Innovation, budgetary spending for 2021–22, as well as actual spending for that year.

2021–22 Main Estimates	2021–22 planned spending	2021–22 total authorities available for use	2021–22 actual spending (authorities used)	2021–22 difference (actual spending minus planned spending)
615,035,822	615,035,822	695,312,205	657,519,661	42,483,839

Note: In 2021–22, actual spending was greater than planned spending mainly due to support for Prince Edward Island potato producers to help manage surplus potatoes, and to the renewal of the Agricultural Clean Technology Program.

Human resources (full-time equivalents) - Science and Innovation

The following table shows, in full‑time equivalents, the human resources the Department needed to fulfill this core responsibility for 2021–22.

2021–22 planned full-time equivalents	2021–22 actual full-time equivalents	2021–22 difference (actual full-time equivalents minus planned full‑time equivalents)
2,635	2,631	(4)

For more information, see the "Human resources" section of this report.

Financial, human resources and performance information for Agriculture and Agri-Food Canada's Program Inventory is available in GC InfoBase.

Sector risk

Description: Agriculture and Agri-Food Canada provides tools to mitigate the financial impact of risks beyond producers' control that threaten the viability of their operations. Agriculture and Agri-Food Canada also works with the sector to ensure that systems, standards, and tools are developed to support its ability to prevent and control risks and address market demands.

The Sector Risk core responsibility is focused on advancing the following departmental results:

• The agricultural sector is financially resilient.
• The agriculture and agri-food sector is equipped with assurance systems and supporting tools.

Results highlights - Sector risk

The growth and resiliency of the Canadian agriculture and agri-food sector relies on an effective suite of risk management tools that help farmers face various uncertainties in managing their operations. These may include production risks resulting from weather events, pests or diseases that impact crops and livestock, or risks related to market conditions such as supply and demand fluctuations and volatilities in world markets.

Agriculture and Agri-Food Canada (AAFC), in collaboration with provincial and territorial governments, continues to deliver and make targeted improvements to its suite of Business Risk Management (BRM) programs in response to sector needs. These programs serve to help producers when risk events are beyond their capacity to manage, such as the unprecedented droughts, wildfires, and flooding experienced in 2021, as well as the COVID-19 pandemic. In addition, the Department supports the industry-led development and implementation of assurance systems that respond to consumer demands for specific product attributes, while protecting the sector against threats to plant and animal health. The Department's sector risk activities are critical to ensure a reliable supply of Canadian food products, to maintain confidence in the agricultural supply chain and the sustainability of its production, and to support the ultimate result of a financially resilient agriculture and agri-food sector.

Result 1: The agricultural sector is financially resilient

The past two years have been unlike any other in recent history, due to the COVID-19 pandemic and climate-related disasters. The agriculture and agri-food sector was greatly impacted by extreme weather events, including the severe drought across western Canada and in northern Ontario that devastated crop output, as well as the massive flooding and landslides that struck British Columbia, which caused considerable damage to infrastructure and disrupted the food supply chain. In addition, Russia's invasion of Ukraine in early 2022 has had global impacts on food security and agricultural and food systems, including the disruption of supply chains and trading patterns, and affecting production input costs. Yet, in the face of extreme challenges, Canada's farmers, food processors and retailers worked incredibly hard to feed Canadians and deliver world-class products to global customers. In 2021–22, the Department continued to support the agriculture and agri-food sector in overcoming these challenges by delivering an effective suite of BRM programs that responded to these extraordinary conditions and evolving sector needs, implementing programming changes where necessary, and helping to position the sector for a sustainable future.

To support Canadian livestock producers facing extraordinary costs and damages due to drought, wildfires, the Department worked with British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario to provide up to $833 million in shared support through AgriRecovery initiatives. In addition, AAFC worked with the provinces to extend the AgriStability 2021 program year deadline for producers from April 30 to July 3, 2021, and also increased the 2021 AgriStability interim benefit payment percentage from 50% to 75% in several provinces. This allowed producers to access a greater portion of their benefit early to meet their urgent needs. Prince Edward Island, British Columbia and Manitoba also opened up late participation in AgriStability to farmers who did not register in 2021 in order to benefit from this important income support.

In July and August 2021, the Livestock Tax Deferral provision was announced for prescribed drought regions in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. This allowed livestock producers, who were forced to sell a significant amount of their breeding herd due to drought conditions, to offset the resulting revenues from livestock sales with the costs to replace the herd, thus reducing the potential tax burden.

To assist British Columbia farmers who suffered extraordinary damages and losses in the devastating floods of November 2021, the Canada-BC Flood Recovery for Food Security Program was created in early 2022, leveraging the AgriRecovery framework and Disaster Financial Assistance Arrangements. British Columbia farmers have access to up to $228 million in federal-provincial support to help their farms return to production and support the province's food security and agricultural communities in the years ahead. A committee of federal and provincial ministers are working together along with Indigenous leadership to guide immediate and ongoing support to families, businesses, and communities in British Columbia affected by the extreme weather events.

In addition to weather-related events, Canadian farmers and processors have risen to the challenges caused by the COVID-19 pandemic. Throughout the pandemic, AAFC has invested in initiatives and made programming adjustments to support and ensure a robust agriculture and agri-food sector as the country continues to adapt and move beyond the pandemic. Two new AgriRecovery initiatives were launched in Prince Edward Island and New Brunswick in 2021–22 to support livestock producers facing ongoing challenges due to COVID-19, while multiple initiatives that had launched the previous year in response to the pandemic continued to operate, together representing a total commitment of over $93 million by federal, provincial and territorial (FPT) governments towards relief for farmers. In addition, under AgriInsurance, the Department approved the inclusion of labour disruption due to COVID-19 as an insurable peril for Ontario in 2021–22.

The Department has continued working closely with provincial, territorial and industry partners on targeted improvements to the BRM program suite, including the removal of the AgriStability reference margin limit and proposals to improve programs' effectiveness and responsiveness to evolving sector needs. This ongoing work advances the direction received from FPT Ministers of Agriculture at their annual meetings in November 2020 and 2021, and supports the Minister of Agriculture and Agri-Food's mandate letter commitment to update business risk management programs. In 2021–22, AAFC also continued working closely with provinces and territories to explore potential BRM programming adjustments as part of the Sustainable Canadian Agricultural Partnership to begin in April 2023. These efforts will help to ensure that the BRM program suite can best contribute to sector growth objectives, while addressing the ever-evolving risks that threaten a farm's health and viability.

Within the Sector Risk core responsibility, there are two indicators used to assess the financial health of farms. The first is a proportional sector income indicator, which measures whether the sector has experienced a significant decline in income after accounting for BRM assistance. For the 2019 program year, net operating income was 84% of its five-year average, which is just below the target of 85%. While the indicator is expected to remain above the target for subsequent program years, shocks to the sector as a result of severe weather, disease outbreaks, or trade-related issues can affect the achievement of this result in any given year.

The second indicator is the percentage of financially healthy farms, as measured by the Farm Financial Survey. In 2019 (latest data available), 86% of farms were assessed as financially healthy. A decline in farm product prices and farmland values from record highs and an increase in long-term debt have contributed to this result indicator having fallen below the target of 90%. However, future results are expected to improve due to anticipated increases in the value of farmland and other farm assets, and anticipated increases in net operating income driven by stronger commodity prices.

Despite the extreme challenges faced in 2021–22, overall the agriculture sector experienced growth and is expected to continue to perform well in 2022. Although experiences of the last year may vary across the supply chain, a continued growth in farm income shows that the sector overall is resilient in the face of significant disruptions. The measures for financial resilience indicate that farms are generally financially healthy and rely less on program payments over the long-run. BRM programs are demand driven, and support can vary from year to year, with increases intended to offset declines in market income.

Result 2: The agriculture and agri-food sector is equipped with assurance systems and supporting tools

In addition to effective risk management, trust in Canada's food and agriculture sector is critical to ensure the competitiveness of individual businesses and the sector as a whole. Equipping the agriculture and agri-food sector with assurance systems and tools helps the industry to demonstrate that their agriculture products have certain characteristics, or are produced using specific methods.

Assurance systems are a key tool for producers and processors to proactively manage their risks by adopting food safety, biosecurity, traceability, environmental, and emergency management measures. In addition to their risk management attributes, assurance systems help build consumer confidence that Canadian products are produced using practices that support sustainability, animal welfare, and other attributes such as halal, kosher and organic. Assurance systems are becoming increasingly important as the sector works to meet consumer demand for products with specific characteristics or that have been produced using particular practices.

The AgriAssurance program has helped the sector establish a robust suite of assurance systems and tools to make verifiable claims to address rapidly evolving export requirements and consumer demands related to safety, quality, traceability, sustainability, or animal welfare. In 2021–22, to help inform future program design, the Department held consultations with industry partners to explore their priorities and future plans for updating their assurance systems, and sought constructive suggestions for improvement and areas for collaborative action. The input received from this stakeholder engagement will ensure that future assurance programming continues to be relevant and helps the sector address key issues in order to remain competitive.

In addition to this work, the Department continued to collaborate with the Canadian Food Inspection Agency to renew biosecurity standards based on the best available science. This work enhances surveillance and disease intelligence, and fosters proactive actions for the prevention and control of emerging and existing food- and disease-related threats, building trust in Canada's agriculture and agri-food systems. Another result of this ongoing collaboration includes improved communication and coordination through the FPT Plant Health Committee, which has allowed for early sharing and reporting of pest detection information and joint management responses.

In 2021–22, the Department continued to surpass its annual target of 20 applications to the AgriAssurance program with 31 submissions, 18 of which were approved. Since 2018–19, a cumulative total of 134 applications have been received by the program, with 87 projects approved as of March 31, 2022. Given the long-term nature of this work, results data measuring the functionality of implementation plans for assurance projects will be available in 2023.

Gender-based analysis plus (GBA Plus) - Sector Risk

Enhancing access to BRM programs for underrepresented and marginalized groups, including youth, women, and Indigenous communities continues to be a focus for federal, provincial, and territorial governments, as work towards improving, analyzing and interpreting results of the suite of programs is ongoing.

In 2021–22, the Department began sector engagements and negotiations with provincial and territorial governments to inform the development of the Sustainable Canadian Agricultural Partnership (2023–28). As part of these negotiations, discussions continue to advance on how to incorporate considerations for underrepresented and marginalized groups across the entire framework, including within BRM programs. A key element will be to include GBA Plus data collection for BRM programs to better understand who is accessing these programs and where barriers may exist. Enhancements to programming, including the BRM suite, will also be informed by the departmental framework being developed to improve support for underrepresented and marginalized groups in the agriculture and agri-food sector. Efforts related to the framework have initially focused on foundational research, along with compiling a current inventory of actions.

Research has shown that the COVID-19 pandemic has had a profound impact on women and other underrepresented and marginalized groups across Canada, intensifying many existing barriers. In 2021–22, the Department initiated a literature review to assess the impacts of the pandemic on women in the agriculture and agri-food value chain. The findings of this research emphasized the importance of inclusive economic recovery, but further highlighted the value of incorporating GBA Plus into decision-making.

Further information on the underrepresented and marginalized groups served by the Department's programs and initiatives can be found in the GBA Plus supplementary information table.

United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals - Sector Risk

AAFC's activities under the Sector Risk core responsibility support Canada's efforts to address the United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). The BRM programming suite under the Canadian Agricultural Partnership, contributes towards:

• ending hunger, achieving food security and improved nutrition, and promoting sustainable agriculture (SDG 2); and
• promoting inclusive and sustained economic growth, productive employment, and decent work for all (SDG 8).

For example, in 2021–22, AgriStability and AgriInsurance provided over $800 million of federal financial support to producers, and thereby sustained and protected economic growth and employment. AAFC continues to take the lead on ensuring a sustainable agriculture and agri-food sector by addressing climate risks, as well as by creating conditions for industry to succeed and compete globally. In addition, by supporting resilience and risk management, AAFC, in collaboration with provincial and territorial governments, helps to build and maintain public trust in the agriculture and agri-food sector and ensures ongoing confidence of Canadians in the agriculture and agri-food supply chain.

Experimentation - Sector Risk

In 2021–22, AAFC continued to explore experimental approaches that enhance the delivery of risk management programs, or advance the development of new risk management tools. For example, the Department launched a two-year cash reference margin pilot for the 2020 and 2021 program years in jurisdictions where the AgriStability program is delivered. Under this pilot, AgriStability participants can choose to have their Reference Margins calculated on the cash basis if reporting their financial information for income tax purposes using cash accounting. There was agreement between AAFC and the governments of Ontario, Manitoba, Saskatchewan, Alberta and British Columbia to increase the 2021 AgriStability interim benefit payment percentage from 50% to 75%. This provision allowed producers access to a greater portion of the benefit early to meet their urgent needs. The AgriStability enrollment deadline for 2022 was extended to later in the year, and a comprehensive report on the pilot will be released in 2023.

The Department also continued working to re-platform the "My AAFC" account portal, and to adapt the associated business processes and sign-up procedures. These efforts advance an experimental project initiated in 2019–20 with the Privy Council Office Fellowship program to generate more interest and uptake in the portal. In 2020–21, a pilot project examined how AgriInvest and AgriStability clients could use their "My AAFC" account portal exclusively to communicate, submit requests, and receive their program documents, rather than receiving hard-copy documents by mail. Given the move towards a more digitally-driven environment, AAFC aims to continue pursuing opportunities to increase client participation on this portal. Despite the project facing delays during the 2021–22 year, the Department is expected to move a select number of clients to an online account by October 2022.

In addition, AAFC participated in Experimentation Works 2, a government-wide initiative training public servants to incorporate experimentation into their skills and practices. The Department's project, which concluded in March 2021, focused on using behavioural, insights-based research methods to better understand consumer preferences for food products with sustainability-oriented assurance claims. In 2021–22, AAFC assessed lessons learned from the project and determined that further application of the research methods would likely be beyond the scope or expertise within the Department. As a result, no additional activities were pursued as part of this experiment; however, the initiative helped AAFC in building skills, knowledge, and proof-of-concept models that may inform further experimentation efforts related to consumer engagement.

Key risks - Sector Risk

Agricultural producers face a number of risks that potentially threaten the viability of their operations. While continuing to support industry to recover from the COVID-19 pandemic, and prepare for animal health emergencies such as African Swine Fever (ASF) or avian influenza, AAFC played an important role in responding to a number of emergencies. This included significant drought, wildfire and flooding events. Along with providing a robust suite of BRM programs, AAFC brought together government and industry to articulate immediate needs for assistance, connect industry to government programs and services, and answer questions as quickly as possible.

AAFC engaged across the food supply chain on issues of critical importance for managing future emergencies. The Department also worked closely with provincial and territorial partners, as well as industry, with the goal of increasing transparency, predictability and respect for the principle of fair dealing between suppliers and retailers, and ultimately improving supply chain relations. In addition, AAFC has developed analytical capacity and broadened stakeholder relationships with retail, foodservices, and consumers to understand their impacts on the food supply chain. AAFC has also remained actively engaged with government-wide Emergency Transformation efforts, including participating in all Federal Emergency Response Plan workshops, and contributing to stakeholder discussions regarding Public Safety Canada's Action Plan for Critical Infrastructure.

As a reportable disease, ASF continues to pose a significant threat to the Canadian pork supply chain. The Department continued to actively engage with provincial and territorial governments and industry throughout 2021–22 on ASF prevention and preparedness efforts. Working closely with these partners, AAFC began drafting documents which will guide government and industry in responding to an outbreak. This guidance will establish governance mechanisms and outline options for longer-term responses and recovery efforts. There was agreement on this heightened urgency for continued collaboration among all orders of government and industry, and a recommitment to a timely, coordinated approach for action.

In addition, in 2021–22, AAFC continued collaborating with the Canadian Food Inspection Agency, other federal departments, as well as with provincial and territorial partners and poultry producers to respond to an outbreak of highly pathogenic avian influenza (HPAI) across the country. While it does not pose any food safety risks, the disease can have devastating effects on production, on the movement of animals, as well as on the import and export of Canadian poultry products and by-products. Efforts focused on working together to control the disease and prevent future spread, including through biosecurity measures, to minimize its impacts on industry and trade, and work towards recovery.

Throughout the pandemic, AAFC recognized the vital importance of temporary foreign workers to the Canadian economy, including their contribution to food security for Canadians, and the success of Canadian food producers and processors. The Department continued to monitor the long-standing labour challenges, and the effects they are having on the food supply chain. Reliable access to workers through the Temporary Foreign Worker Program is a key concern for many agriculture and food processing employers. To ensure that the Canadian food supply chain had adequate labour, and that workers would be protected during the pandemic, the Department extended funding to the Mandatory Isolation Support for Support for Temporary Foreign Workers Program in 2021–22. With over $132 million in federal funding provided to support workers through 7,700 approved projects, this enabled employers to create the necessary measures to follow the mandatory isolation period required of all workers arriving from abroad. The 2021 season exceeded pre-pandemic trends for temporary foreign worker arrivals in agriculture and food processing, with almost 70,000 work permits issued.

In accordance with the Minister's mandate letter commitment to address the chronic labour shortages in farming and food processing across the country, the Department started to develop an Agricultural Labour Strategy in 2021–22. Over the course of the year, open discussions were facilitated through the creation of a government-industry Skills Development Table. This forum helped identify solutions to cross-cutting workforce development issues, and resulted in the adoption of a strategic plan that outlines the mandate going forward.

Results achieved - Sector Risk

The following table shows, for Sector Risk, the results achieved, the performance indicators, the targets and the target dates for 2021–22, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental result	Performance indicators	Target	Date to achieve target	2019–20 actual result	2020–21 actual result	2021–22 actual result
The agricultural sector is financially resilient	Sector's income as a proportion of historical income	At least 85% Sector income is maintained above the 85% threshold of five-year average income	March 2022[1]	104% (for the 2017 program year)	91% (for the 2018 program year)	84%[2] (for the 2019 program year)
The agricultural sector is financially resilient	Percentage of financially healthy farms	At least 90% Percentage of financially healthy farms is maintained at least at 90%	March 2022[3]	Not available	86% (based on data in the 2019 Farm Financial Survey for the period from 2017 to 2019)	Not available (results available in 2023)
The agriculture and agri-food sector is equipped with assurance systems and supporting tools	Percentage of implementation plans for assurance projects reported to be functioning	Range between 65% and 85%	March 2023[4]	Not available	Not available	Not available

Note: Actual results are reported for the fiscal year that data becomes available. Results that are "not available" are due to lag times in data availability, including as noted below.

1. The indicator demonstrates whether producers have been able to maintain their primary agriculture incomes, after accounting for BRM programs. A percentage less than 100% indicates that the sector's income is worse than the five year average.
2. There is a two-year lag in reporting this indicator due to the time to finalize BRM payment data; results for the 2021–22 program year will be available in 2024. In the 2019 program year, both net market income and BRM payments decreased. The decrease in net market income was not offset by an increase in BRM payments, mainly due to low participation in AgriStability and the fact that AgriInsurance does not protect against increased expenses, which was the main driver of the decrease in net market income. The results for this indicator do fluctuate year over year. Based on preliminary and incomplete data, it is expected that in 2020 the target will again be met and/or exceeded as income rebounded strongly above the level from 2017.
3. Indicator has a two-year lag time; data is only available every two years based on the Farm Financial Survey.
4. Indicator has a lag time; actual results will be available in March 2023, due to the time required for participants to develop systems and for those systems to be taken up by the sector.

Budgetary financial resources (dollars) - Sector Risk

The following table shows, for Sector Risk, budgetary spending for 2021–22, as well as actual spending for that year.

2021–22 Main Estimates	2021–22 planned spending	2021–22 total authorities available for use	2021–22 actual spending (authorities used)	2021–22 difference (actual spending minus planned spending)
1,546,409,618	1,546,409,618	1,753,357,326	1,719,540,364	173,130,746

Note: In 2021–22, actual spending was greater than planned spending mainly due to support for producers who faced drought and wildfires in 2021 under the AgriRecovery program, as well as an increase under the AgriInsurance program. It also reflected emergency support provided in response to COVID-19 under the Mandatory Isolation Support for Temporary Foreign Workers program. The increase was offset by a decrease in demand and participation in the AgriStability program, continued low interest rates resulting in lower defaults and loan guarantee payments under the Advance Payments Program, and lower claims for losses under the Canadian Agricultural Loans Act program. In addition, actual spending was net of $13.1 million related to a return of funding from statutory grant and contribution programs.

Human resources (full-time equivalents) - Sector Risk

The following table shows, in full‑time equivalents, the human resources the Department needed to fulfill this core responsibility for 2021–22.

2021–22 planned full-time equivalents	2021–22 actual full-time equivalents	2021–22 difference (actual full-time equivalents minus planned full‑time equivalents)
421	442	21

For more information, see the "Human resources" section of this report.

Financial, human resources and performance information for Agriculture and Agri-Food Canada's Program Inventory is available in GC InfoBase.

Internal services

Description: Internal services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal services refers to the activities and resources of the 10 distinct service categories that support program delivery in the organization, regardless of the internal services delivery model in a department. The 10 service categories are:

• acquisition management services
• communication services
• financial management services
• human resources management services
• information management services
• information technology services
• legal services
• material management services
• management and oversight services
• real property management services

Results highlights - Internal services

In 2021–22, Agriculture and Agri-Food Canada (AAFC) undertook internal service initiatives in support of the Department's mandate and to strengthen our capacity to deliver results to Canadians.

Prioritizing wellness, diversity, accessibility and inclusion in our workforce and workplaces

AAFC seeks to continuously improve its organizational culture by increasing awareness of the benefits of a diverse and inclusive workplace and strives to be an employer that is diverse in representation, respectful, and inclusive in its employment policies and practices. The Department continues to build on the strategic objectives outlined in its Diversity, Equity and Inclusion Plan, including by developing a number of tools and resources for its employees and managers. A new intranet page, for example, features information on departmental achievements, as well as a comprehensive list of steps that staff can take to support diversity, equity and inclusion in the workplace. The Department's Management and Leadership Program offered revised and enhanced training on staffing in 2021–22, to include an expanded focus on diversity, equity and inclusion practices. An Indigenous Awareness module was also added to the program's curriculum in response to the Truth and Reconciliation Commission's Call to Action #57, which refers to the responsibility of all federal departments to educate their employees on the history of Indigenous Peoples in Canada.

AAFC launched a new talent-management approach and sponsorship program that will provide tailored developmental opportunities to high-potential candidates from employment and equity-seeking groups in order to address representation gaps at executive levels. In addition, AAFC developed and launched a diversity and inclusion index using representation data and Public Service Employment Survey results, which will allow the Department to benchmark its performance, assess outcomes, and track the progress over time of its diversity, equity and inclusion activities in support of forward planning at all levels of the organization.

AAFC continues to advance the elimination of barriers and biases when hiring, to ensure equal access to posted opportunities. The Department completed a comprehensive Employment Systems Review in 2021–22 in order to identify barriers for equity-seeking groups, as well as instances of unconscious bias in employment practices and processes. In an effort to attract qualified candidates from groups where significant employment equity gaps exist, AAFC launched a number of targeted recruitment initiatives. AAFC also piloted a Diverse Staffing Assessment Board initiative, which provided hiring managers access to diverse volunteers who could participate in their staffing processes, and took steps to replace gendered terminology in job posters with gender-neutral terms.

This past year, AAFC approved an interim Accessibility Plan which proactively identifies, removes, and prevents barriers to accessibility, especially for persons with disabilities. The Department continues to make advancements toward achieving full and equal participation of all persons at AAFC, including through deliberate strategies and other mechanisms. In addition, AAFC has taken a leadership role in creating a more accessible federal public service. The Department co-chairs an Assistant Deputy Minister steering committee, which serves as a consultative body supporting the digital development of the Government of Canada Workplace Accessibility Passport. The Passport is a tool to create a more inclusive and accessible workplace aimed at supporting employee mobility and career development by ensuring the portability of adaptive tools and support measures between federal organizations. As an early adopter of the Passport during its pilot phase, in 2021–22 AAFC actively participated in working groups related to integration and digital solutions, and collaborated with Treasury Board Secretariat in the delivery of information sessions.

Collectively, the findings of these studies and initiatives have served to develop AAFC's 2022–25 Diversity, Equity and Inclusion Strategy, which will drive continued actions to address the underrepresentation of employment equity group employees, enhance inclusive leadership, and improve accountability and monitoring.

The Department also continued to promote the activities of employee-led networks focused on diversity, equity and inclusion to support the government-wide priority to promote accessibility and inclusion, and eliminate barriers and discrimination. Through numerous training and information sessions and various other events throughout the year, these networks sought to enhance the work experience of all employees by creating an environment that is safe and inclusive. For example, among other efforts, AAFC's Gender and Sexual Diversity Inclusion Network delivered 11 training sessions to employees, and the Women in Science, Technology, Engineering and Mathematics Network celebrated women's scientific contributions by communicating their achievements to both internal and external audiences. As a way to support network initiatives and promote upcoming projects and goals, a Diversity and Inclusion Champions Committee was also established.

In support of broader Government of Canada initiatives on workplace wellness, including the federal Work Place Harassment and Violence Prevention Regulations, which came into force on January 1, 2021, the Department continued its efforts to ensure a workplace where mental health is woven into its organizational culture, processes and practices. The Department continues to promote, track, and monitor participation in the mandatory training on preventing harassment and violence in the workplace, and has delivered multiple sessions on the rights and responsibilities of employees with respect to harassment and violence in the workplace. As a response to the Departmental Ombudsperson's 2020 recommendation to connect and support employee volunteers, a Wellness Network was created by the Department. The network shares ideas, best practices and experiences to support Department-wide, grassroots mental health initiatives. In addition, AAFC provided further resources to support mental health, including wellness sessions and an employee curriculum of health and wellness courses.

Supporting Indigenous initiatives

Through regular engagement, AAFC collaborates with federal, provincial, territorial, First Nations, Inuit, and Métis Nation partners to maintain and improve relationships, and support the development of policies, programs and strategies that focus on Indigenous-led participation in agriculture. As mentioned under the Science and Innovation core responsibility, AAFC continues to host the Interdepartmental Indigenous Science, Technology, Engineering and Mathematics (I-STEM) Cluster, a team that works collaboratively across 13 departments and agencies to reduce duplication, break down silos inside government, and enhance effectiveness while co-developing solutions with Indigenous partners.  In addition, to reflect AAFC's commitment to Reconciliation and to the principles of the United Nations Declaration on the Rights of Indigenous Peoples, the Department updated its Indigenous Policy Framework in 2021–22. The framework's guiding principles will ensure a coordinated, strategic, and holistic departmental approach to reconciliation through the support of Indigenous agriculture and food systems.

Indigenous participation in the sector, including through programming related to the new Sustainable Canadian Agricultural Partnership (2023–28), was established as a key federal priority. In 2021, AAFC delivered a number of consultation sessions including to Indigenous organizations, to help inform priorities, policies and program development of this new framework, which will replace the current Canadian Agricultural Partnership. AAFC, in collaboration with the Canadian Agricultural Human Resource Council, also conducted five regional outreach sessions with Indigenous Peoples in summer 2021. The sessions sought to learn about Indigenous connections to food and agriculture and to gather perspectives on key topics, including challenges and opportunities for Indigenous agriculture, and government support and program experiences. Feedback from the engagement sessions helped to frame a recommendation to enhance programming to address Indigenous inclusion, which will be considered when developing future initiatives to advance Indigenous participation in the sector.

The Department continues to build awareness and ensure strong recruitment efforts among underrepresented groups into many roles through the Indigenous Student Recruitment Initiative. To facilitate the introduction of Indigenous students into careers within the Federal Government, Indigenous offices within universities and colleges were targeted for recruitment, as well as Indigenous communities across Canada. A total of 74 students were hired through the initiative in 2021-22. In addition, the Indigenous Support and Awareness Office implemented a mentorship program for all Indigenous students, and an Indigenous and Awareness training module was developed and delivered to the non-Indigenous mentors prior to them being matched with Indigenous students. AAFC also continued working to maintain the Department's outreach to Indigenous communities and organizations, including through the Indigenous Network Circle. The network provided continuous support for Indigenous staff throughout the course of 2021–22, including by adjusting to a post-pandemic work environment. A virtual sharing space for allies was created to access learning resources in support of Truth and Reconciliation and to express solidarity with AAFC's Indigenous community. The network hosted a series of drop-in sessions including educational opportunities and cultural teachings, and addressed employee wellness needs in response to the discovery of unmarked graves at former residential school sites. Thinking of future needs for the network, a three-year strategic plan was developed to support the interests of Indigenous employees.

As a response to the Truth and Reconciliation Commission's Call to Action #57 to educate public servants on the history of Indigenous Peoples, AAFC also continued to deliver its Indigenous Awareness Learning Series. Indigenous staff worked collaboratively with Elders to deliver a total of 90 events with a total of 4,287 attendees including tailored group sessions, cultural awareness training sessions, Indigenous awareness learning sessions, and a speaker series. In addition, the construction of a Ceremonial Lodge called the Mikinàk was completed in Ottawa, which will serve as a sacred place for Indigenous employees, and will host cultural awareness sessions for all employees. Two local Algonquin communities of Kitigan Zibi and Pikwakanagan as well as the Algonquins of Ontario were engaged throughout the planning of the Lodge to ensure validation of the approach.

Modernizing the work environment and organizational operations

Ensuring the health and safety of employees remains a top priority for AAFC, both as the COVID-19 pandemic continued to evolve, and in planning for the future of work. Throughout 2021–22, AAFC supported remote work capabilities and began to modernize workspaces for employees to ensure an ongoing ability to safely and effectively deliver services for Canadians. A key principle in AAFC's approach was to ensure that employees were informed, engaged and able to contribute to plans for the transition to a 'hybrid' workplace offering employees the flexibility to work both remotely and on site.

In order to inform the transition, AAFC conducted an employee engagement survey in March 2021 that assessed employees' collective needs, and their views on workplace arrangements, both at present, and once COVID-19 related restrictions lifted in the future. AAFC also developed guidance materials to help employees and managers understand and apply the Department's approach, and 23 engagement sessions were held throughout 2021–22, providing valuable up-to-date information while ensuring open and ongoing communication with staff.

The Department developed an application to help coordinate office access for employees while maintaining social distancing and capacity guidelines, has been exploring and piloting new employee workstations, and continued to evolve and modernize its data and digital capabilities, all to better support working in a hybrid environment. Guided by both the federal and departmental Digital Operations Strategic Plan, which provide the vision and framework for all data and digital transformation activities, AAFC deployed and further configured Microsoft 365, and updated boardrooms with improved technology, better enabling employees to maintain effectiveness and connectivity. Departmental efforts related to modernizing its work environment continue to adapt and evolve, allowing for the safe resumption of activities at AAFC offices and research centres across the country.

Strengthening digital service delivery, data analytics and transparency

AAFC continues to enhance its digital presence in order to deliver quality programs and services that are client-centred, well-integrated, inclusive, and accessible. To maintain a high level of client service in a more virtual environment while managing an increased number of programs and applications in 2021–22, AAFC reviewed its processes and continued investing in digital technologies to provide an integrated approach to service delivery while offering clients the ability to self-serve. The Department also worked to evolve and advance its departmental public cloud platform, supported the Government of Canada's Cloud First strategy, and created a new Chief Data Officer role to strengthen the Department's capacity to provide digitally enabled services to Canadians and meet stakeholder expectations. This office is committed to providing the overall digital vision within the Department, while facilitating stronger data-driven decision-making.

To address new digital and information technology challenges, the Department continues to find ways to enhance security tools and surveillance, aligned with the Government of Canada's Policy on Service and Digital. AAFC is integrating key elements of information technology, data, cyber security and service in order to improve security monitoring and defence tools on-premises, and in the cloud. In addition, improving the digital and data interface between stakeholders and government continues to be a priority. In 2021–22, enhancements were made to the departmental data catalogue that supports the storage and sharing of data and information resources through the Open Government Portal. This included the advanced automated sharing of information between the Departmental data catalogue and the Open Government Registry.

Managing departmental assets and real property

AAFC ensures the sound management of its assets, such as buildings, land, and equipment, in order to meet operational requirements, and to deliver quality programs and services to Canadians. As part of the Greening Government Strategy, AAFC remains on track to meet the federal government greenhouse gas emission target (building and fleet) of 40% reduction by 2025 relative to the 2005-06 baseline, with a 44% reduction as of 2021-22.

In order to achieve a sustainable 25-year real property strategy, AAFC is advancing  the sustainable management of real property, stemming from the results of a horizontal fixed asset review. A strategy has been developed to address the recommendations of this review, which will guide all research and development of real property within AAFC. In addition, the Department continues to modernize agriculture science and technology infrastructure in collaboration with other science departments and Laboratories Canada. This work supports the Government of Canada commitments to build a stronger, more sustainable, and collaborative federal science and technology community.

Budgetary financial resources (dollars) - Internal services

The following table shows, for internal services, budgetary spending for 2021–22, as well as spending for that year.

2021–22 Main Estimates	2021–22 planned spending	2021–22 total authorities available for use	2021–22 actual spending (authorities used)	2021–22 difference (actual spending minus planned spending)
156,366,349	156,366,349	200,515,480	200,508,479	44,142,130

Note: In 2021–22, actual spending was greater than planned due to amounts carried forward from 2020-21, increased investments in information technology, ongoing service delivery improvements, and increased efforts related to the Retail and Consumer Taskforce Team and the Sustainable Canadian Agricultural Partnership.

Human resources (full-time equivalents) - Internal services

The following table shows, in full‑time equivalents, the human resources the Department needed to carry out its internal services for 2021–22.

2021–22 planned full-time equivalents	2021–22 actual full-time equivalents	2021–22 difference (actual full-time equivalents minus planned full‑time equivalents)
1,332	1,388	56

For more information, see the "Human resources" section of this report.

Spending and human resources

Spending

Spending 2019–20 to 2024–25

The following graph presents planned (voted and statutory spending) over time.

 

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Departmental spending trend

	2019–201	2020–211	2021–221	2022–232	2023–24	2024–25
Statutory	1,487	1,864	2,101	2,025	815	813
Voted	1,081	1,174	1,361	1,229	778	671
Total	2,568	3,038	3,462	3,253	1,593	1,484

Notes

1. Spending for 2019–20, 2020–21, and 2021–22 represents the actual expenditures incurred during the respective fiscal years, as reported in Public Accounts.
2. Spending for 2022–23, 2023–24, and 2024–25 represents Planned Spending amounts as reported in the 2022–23 Departmental Plan.

Over the period of 2019–20 to 2024–25, spending varies from a high of $3.5 billion spent in 2021–22 to a low of $1.5 billion planned for 2024–25. Agriculture and Agri-Food Canada's (AAFC's) programs and initiatives vary from year to year in response to changes affecting the agriculture, agri-food and agri-based products sector, as outlined below.

Actual spending was high in 2021–22 as it reflected increased support under the AgriRecovery program for producers who faced drought and wildfires in 2021 as well as support in response to COVID-19 through the Emergency Food Security Fund, the Mandatory Isolation Support for Temporary Foreign Workers Program, and the Youth Employment and Skills program. It also reflected support for new supply management initiatives (the Poultry and Egg On-Farm Investment Program and the Market Development Program for Turkey and Chicken), support for potato producers to help manage surplus potatoes, and the renewal of the Agricultural Clean Technology program.

Planned spending in 2022–23 is lower mainly due to the expiry of the funding for the Dairy Farm Investment Program and the Dairy Processing Investment Fund at the end of 2021–22.

The decrease in 2023–24 reflects that funding authorities will need to be renewed for the current five-year Canadian Agricultural Partnership. AAFC, in consultation with provinces and territories, continues to develop a successor to the Canadian Agricultural Partnership policy framework to position the industry to meet challenges in the decade ahead. The decrease also reflects the expiry of the current Dairy Direct Payment Program.

The decrease in 2024–25 reflects the expiry of the Food Policy Initiatives (Local Food Infrastructure Fund, Food Waste Reduction Challenge, and AgriCommunication Initiative) and the On-Farm Climate Action stream of the Agricultural Climate Solutions Program at the end of 2023–24.

Budgetary performance summary for core responsibilities and internal services (dollars)

The "Budgetary performance summary for core responsibilities and internal services" table presents the budgetary financial resources allocated for Agriculture and Agri-Food Canada's core responsibilities and for internal services.

Core responsibilities and internal services	2021–22[1] Main Estimates	2021–22[2] planned spending	2022–23[3] planned spending	2023–24[3] planned spending	2021–22[4] total authorities available for use	2019–20[5] actual spending (authorities used)	2020–21[5] actual spending (authorities used)	2021–22[5] actual spending (authorities used)
Domestic and international markets	705,003,048	705,003,048	771,983,892	222,189,562	930,430,629	622,424,048	905,392,316	884,355,981
Science and innovation	615,035,822	615,035,822	711,673,975	462,986,569	695,312,205	590,348,161	722,050,477	657,519,661
Sector risk	1,546,409,618	1,546,409,618	1,609,744,770	776,539,433	1,753,357,326	1,177,946,837	1,217,957,856	1,719,540,364
Subtotal	2,866,448,488	2,866,448,488	3,093,402,637	1,461,715,564	3,379,100,160	2,390,719,046	2,845,400,649	3,261,416,006
Internal services	156,366,349	156,366,349	159,963,841	131,312,646	200,515,480	177,211,477	192,214,746	200,508,479
Total	3,022,814,837	3,022,814,837	3,253,366,478	1,593,028,210	3,579,615,640	2,567,930,523	3,037,615,395	3,461,924,485
Note: For an explanation of the variances by core responsibility and internal services, please refer to the "Results: what we achieved" section of this report. Main Estimates figures are as reported in the 2021–22 Main Estimates Expenditures by Program or Purpose. Planned spending figures are as reported in the 2021–22 Departmental Plan. Planned spending reflects funds already brought into the Department's reference levels as well as amounts to be authorized through the Estimates process as presented in the Annual Reference Level Update. Planned spending figures for 2022–23 and 2023–24 are as reported in the 2022–23 Departmental Plan. It does not reflect funding announced in Budget 2022. Total authorities reflect 2021–22 Main Estimates and a net total increase of $556.8 million consisting of adjustments to statutory amounts to equal actual spending, Supplementary Estimates and allocations from central votes received during 2021-22, as well as other adjustments and amounts available from previous year, as reported in the Public Accounts of Canada 2022. Actual spending figures represent the actual expenditures incurred during the respective fiscal year, as reported in Public Accounts. In certain cases, where authorized amounts are unspent, they can be reprofiled for use in future years.

Human resources

The "Human resources summary for core responsibilities and internal services" table presents the full-time equivalents allocated to each of Agriculture and Agri-Food Canada's core responsibilities and to internal services.

Human resources summary for core responsibilities and internal services

Core responsibilities and internal services	2019–20 actual full‑time equivalents	2020–21 actual full‑time equivalents	2021–22 planned full-time equivalents	2021–22 actual full‑time equivalents	2022–23 planned full‑time equivalents	2023–24 planned full‑time equivalents
Domestic and international markets	519	519	515	523	551	539
Science and innovation	2,650	2,614	2,635	2,631	2,639	2,618
Sector risk	443	438	421	442	439	439
Subtotal	3,612	3,571	3,571	3,596	3,629	3,596
Internal services	1,219	1,294	1,332	1,388	1,413	1,413
Total	4,831	4,865	4,903	4,984	5,042	5,009

Notes:

1. Planned full-time equivalents are as reported in the 2021–22 and 2022–23 Departmental Plans.
2. Actual full-time equivalents reflect only those funded through the Department's appropriated resources. In addition to the actual full-time equivalents of 4,984, there were 46 full-time equivalents employed by Agriculture and Agri-Food Canada for research funded through collaborative agreements with industry partners and 466 full-time equivalents employed as students.

The increase in full-time equivalents from 2019–20 to 2022-23 is due to staffing required to support service delivery improvements and modernization of agriculture science and technology initiatives, the Food Policy for Canada, the new supply management initiatives (the Poultry and Egg On-Farm Investment Program, and the Market Development Program for Turkey and Chicken), as well as the Supply Management Processing Investment Fund.

The decrease in planned full-time equivalents starting in 2023–24 is due to the expiry of funding for the Advance Agricultural Discovery Science and Innovation Initiative and the current Dairy Direct Payment Program at the end of 2022–23. The current five-year Canadian Agricultural Partnership funding authorities expire at the end of 2022–23. A successor policy framework, the Sustainable Canadian Agricultural Partnership, is being developed and it is anticipated that full-time equivalents will remain stable.

Expenditures by vote

For information on Agriculture and Agri-Food Canada's organizational voted and statutory expenditures, consult the Public Accounts of Canada 2021.

Government of Canada spending and activities

Information on the alignment of Agriculture and Agri-Food Canada's spending with Government of Canada's spending and activities is available in GC InfoBase.

Financial statements and financial statements highlights

Financial statements

Agriculture and Agri-Food Canada's consolidated financial statements (unaudited) for the year ended March 31, 2022, are available on the Department's website.

Financial statement highlights

The financial highlights presented within this Departmental Results Report are intended to serve as a general overview of the Department's financial position and operations. More detailed information is provided in the Department's consolidated financial statements which are prepared using an accrual basis of accounting.

Condensed statement of operations (unaudited) for the year ended March 31, 2022 (dollars)

Financial information	2021–22 planned results	2021–22 actual results	2020–21 actual results	Difference (2021–22 actual results minus 2021–22 planned results)	Difference (2021–22 actual results minus 2020–21 actual results)
Total expenses	3,090,785,000	3,067,719,000	4,063,711,000	(23,066,000)	(995,992,000)
Total revenues	58,788,000	53,769,000	53,179,000	(5,019,000)	590,000
Net cost of operations before government funding and transfers	3,031,997,000	3,013,950,000	4,010,532,000	(18,047,000)	(996,582,000)

Note: Consolidated Future-Oriented Statement of Operations (Unaudited) can be found on the Department's website.

Condensed statement of financial position (unaudited) as at March 31, 2022 (dollars)

Financial information	2021–22	2020–21	Difference (2021–22 minus 2020–21)
Total net liabilities	1,468,556,000	1,820,897,000	(352,341,000)
Total net financial assets	1,386,888,000	1,741,354,000	(354,466,000)
Departmental net debt	81,668,000	79,543,000	2,125,000
Total non-financial assets	456,733,000	450,536,000	6,197,000
Departmental net financial position	375,065,000	370,993,000	4,072,000

The 2021–22 planned results information is provided in Agriculture and Agri-Food Canada's Future-Oriented Statement of Operations and Notes 2021–22.

Expenses and revenues

Expenses incurred and revenues earned, in support of Agriculture and Agri-Food Canada's programs and services that benefited Canadians during 2021–22, are detailed in the following graphs.

Expenses by core responsibility

 

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Expenses by Core Responsibility

Sector Risk	Science and Innovation	Domestic and International Markets	Internal Services	Total Expenses
$1,727.4 million / 56.3%	$597.2 million / 19.5%	$419.9 million / 13.7%	$323.2 million / 10.5%	$3,067.7 million

Total expenses were $3,067.7 million in 2021–22, a decrease of $996.0 million from the previous year's total expenses of $4,063.7 million. The decrease is primarily attributable to the future year programming and expenditures reflected in 2020–21 for the Dairy Direct Payment Program. In addition, there was decreased spending in emergency support programming provided in response to COVID-19. These declines were offset by increased support for producers who faced drought and wildfires in 2021 under the AgriRecovery program and increased indemnities under the AgriInsurance program, and two new supply management initiatives: Poultry and Egg On-Farm Investment Program and the Market Development Program for Turkey and Chicken.

Planned expenses for 2021–22 were $3,090.8 million compared to actual expenses of $3,067.7 million. Actual expenses were $23.1 million lower than planned mainly as a result of an accrual for two fiscal years of programming for the Dairy Direct Payment Program included in 2020-21, and decreased participation in the AgriStability program. This was offset by our transfer payment programs as a result of new programming, support for producers who faced drought and wildfires in 2021, and support provided in response to COVID-19.

Revenues by type

 

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Breakdown of Revenues by Type

Sale of goods and services	Interest	Joint project and cost sharing agreements	Gain on disposal of assets	Miscellaneous revenues	Crop Reinsurance Fund	Total revenues (Gross)
$62.2 million / 72.3%	$13.6 million / 15.8%	$7.3 million / 8.5%	$1.7 million / 2.0%	$1.0 million / 1.2%	$0.2 million / 0.2%	$86.0 million

Note: Revenues earned on behalf of government are included in this graph.

Total revenue is presented in the departmental consolidated financial statements net of revenues earned on behalf of government which amounted to $32.2 million. Total net revenues remained relatively stable year over year at $53.8 million in 2021–22 compared to $53.2 million in 2020–21, a slight increase of $0.6 million.

Liabilities

Liabilities arising from departmental activities at the end of 2021-22 were $1,468.6 million, a decrease of $352.3 million compared to the previous year's liabilities of $1,820.9 million. The decrease was primarily in the Department's accounts payable and accrued liabilities, mainly due to the $460.3 million decrease of accrual as payments were made under the Dairy Direct Payment Program, offset by increased accounts payable in support of programs. The Department does not hold any liabilities on behalf of government.

Liabilities by type

 

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Breakdown of Liabilities by Type

Accounts payable and accrued liabilities	Other liabilities	Vacation pay and compensatory leave	Deferred revenue	Environmental liabilities	Employee future benefits	Total Liabilities
$1,319.8 million / 89.9%	$61.4 million / 4.2%	$47.0 million / 3.2%	$22.3 million / 1.5%	$9.4 million / 0.6%	$8.7 million / 0.6%	$1,468.6 million

Assets

At the end of 2021-22, the Department held total financial assets of $1,708.2 million, consisting primarily of the asset Due from Consolidated Revenue Fund. This category represents the net amount of cash that the Department was entitled to draw from the Consolidated Revenue Fund without further authorities to discharge its liabilities. Taking into account financial assets held on behalf of government which were $321.3 million, total net financial assets at the end of 2021-22 were $1,386.9 million, a decrease of $354.5 million from the previous year's net financial assets of $1,741.4 million. The change in total net financial assets was primarily attributable to a decrease in the amounts due from the Consolidated Revenue Fund, mainly due to a decrease in accounts payable under the Dairy Direct Payment Program. The Department also held non-financial assets totalling $456.8 million at March 31, 2022, relatively unchanged compared to $450.6 million at the same time in 2021.

Assets by type

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Assets by Type

Due from Consolidated Revenue Fund	Tangible capital assets	Loans receivable	Accounts receivable and advances	Prepaid expenses and inventory	Total assets
$1,355.4 million / 62.6%	$453.8 million / 21.0%	$318.1 million / 14.7%	$34.7 million / 1.6%	$3.0 million / 0.1%	$2,165.0 million

Corporate information

Organizational profile

Appropriate minister: The Honourable Marie-Claude Bibeau
Institutional head: Chris Forbes, Deputy Minister
Ministerial portfolio: Agriculture and Agri-Food Canada
Enabling instrument: Department of Agriculture and Agri-Food Act (R.S.C. 1985, c. A-9)
Year of incorporation / commencement: 1994

Raison d'être, mandate and role: who we are and what we do

"Raison d'être, mandate and role: who we are and what we do" is available on Agriculture and Agri-Food Canada's website.

For more information on the department's organizational mandate letter commitments, see the Minister's mandate letter.

Operating context

Information on the operating context is available on Agriculture and Agri-Food Canada's website.

Reporting framework

Agriculture and Agri-Food Canada's Departmental Results Framework and Program Inventory of record for 2021–22 are shown below.

Agriculture and Agri-Food Canada Departmental Results Framework

	Domestic and International Markets		Science and Innovation		Sector Risk		Internal Services
Core Responsibilities	AAFC provides programs and services and works in collaboration with the sector to support its competitiveness at home and abroad. AAFC also works to increase opportunities for the sector to export its products by maintaining and expanding market access and advancing agricultural interests internationally.		AAFC conducts scientific research, develops new knowledge and new technologies, and transfers the results to the agriculture and agri-food sector. AAFC also works with industry and other partners to strengthen the sector's capacity to develop and adopt innovative practices, products, and processes.		AAFC provides tools to mitigate the financial impact of risks beyond producers' control that threaten the viability of their operation. AAFC also works with the sector to ensure that systems, standards, and tools are developed to support its ability to prevent and control risks and address market demands.
Results	The Canadian agriculture and agri-food sector contributes to growing the economy	Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions	The Canadian agriculture and agri-food sector knowledge base is increased through AAFC supported scientific and innovative research	The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	The agricultural sector is financially resilient	The agriculture and agri-food sector is equipped with assurance systems and supporting tools
Indicators	Percentage change in the economic performance of the agriculture and agri-food sector Percentage change in agri-food products sold Value of agriculture and agri-food exports	Degree to which AAFC advances the resolution or the mitigation of market access barriers, World Trade Organization disputes, and technical trade issues Degree to which AAFC advances trade policy through negotiations, agreements, and discussions	Percentage of AAFC scientific publications produced through collaboration Number of citations as a proportion of AAFC scientific publications	Number of new technologies, products, practices, processes, or systems that are available for transfer to the sector Percentage of revenues generated on farms adopting innovative practices Percentage of processors developing and/or introducing innovations Index of Agri-Environmental Sustainability (water, soil, air quality, Biodiversity) Percentage change in the productivity of the agriculture and agri-food sector	Sector's income as a proportion of historical income Percentage of financially healthy farms	Percentage of implementation plans for assurance projects reported to be functioning

Agriculture and Agri-Food Canada Program Inventory (2021–22)

	Domestic and International Markets	Science and Innovation	Sector Risk	Internal Services
Programs	Trade and Market Expansion Sector Engagement and Development Farm Products Council of Canada Dairy Programs[1] Canadian Pari-Mutuel Agency Food Policy Initiatives Federal, Provincial, and Territorial Cost-shared Markets and Trade	Foundational Science and Research AgriScience AgriInnovate Agricultural Greenhouse Gases Program[2] Canadian Agricultural Strategic Priorities Program Federal, Provincial, and Territorial Cost-shared Science, Research, Innovation and Environment	AgriStability AgriInsurance AgriRisk AgriInvest AgriRecovery Loan Guarantee Programs Farm Debt Mediation Service Pest Management Assurance Program Federal, Provincial, and Territorial Cost-shared Assurance Return of Payments Mandatory Isolation Support for Temporary Foreign Workers Program	Management and Oversight Services Communication Services Legal Services Human Resources Management Services Financial Management Services Information Management Services Information Technology Services Real Property Services Material Services Acquisition Services
Notes: Beginning in 2022–23, Dairy Programs was renamed as Supply Management Initiatives, to better capture the nature of the program in light of recently added initiatives. Beginning in 2022–23, the Agricultural Greenhouse Gases Program was renamed as Environment and Climate Change Programs, to better capture the nature of the program in light of recently added initiatives.

Supporting information on the program inventory

Financial, human resources and performance information for Agriculture and Agri-Food Canada's Program Inventory is available in GC InfoBase.

Supplementary information tables

The following supplementary information tables are available on Agriculture and Agri-Food Canada's website:

• Reporting on Green Procurement
• Details on transfer payment programs
• Gender-based analysis plus
• Response to parliamentary committees and external audits
• Up-front multi-year funding

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.

Organizational contact information

Appendix: definitions

appropriation

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures

Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

core responsibility

An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.

Departmental Plan

A report on the plans and expected performance of an appropriated department over a 3‑year period. Departmental Plans are usually tabled in Parliament each spring.

departmental priority

A plan or project that a department has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.

departmental result

A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments' immediate control, but it should be influenced by program-level outcomes.

departmental result indicator

A quantitative measure of progress on a departmental result.

departmental results framework

A framework that connects the department's core responsibilities to its departmental results and departmental result indicators.

Departmental Results Report

A report on a department's actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

experimentation

The conducting of activities that seek to first explore, then test and compare the effects and impacts of policies and interventions in order to inform evidence-based decision-making, and improve outcomes for Canadians, by learning what works, for whom and in what circumstances. Experimentation is related to, but distinct from innovation (the trying of new things), because it involves a rigorous comparison of results. For example, using a new website to communicate with Canadians can be an innovation; systematically testing the new website against existing outreach tools or an old website to see which one leads to more engagement, is experimentation.

full‑time equivalent

A measure of the extent to which an employee represents a full person‑year charge against a departmental budget. For a particular position, the full‑time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person's collective agreement.

gender-based analysis plus (GBA Plus)

An analytical tool used to support the development of responsive and inclusive policies, programs and other initiatives; and understand how factors such as sex, race, national and ethnic origin, Indigenous origin or identity, age, sexual orientation, socio-economic conditions, geography, culture and disability, impact experiences and outcomes, and can affect access to and experience of government programs.

government-wide priorities

For the purpose of the 2021–22 Departmental Results Report, government-wide priorities refers to those high-level themes outlining the government's agenda in the 2020 Speech from the Throne, namely: Protecting Canadians from COVID-19; Helping Canadians through the pandemic; Building back better – a resiliency agenda for the middle class; The Canada we're fighting for.

horizontal initiative

An initiative where two or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.

non‑budgetary expenditures

Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance

What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

performance indicator

A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting

The process of communicating evidence‑based performance information. Performance reporting supports decision making, accountability and transparency.

plan

The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.

planned spending

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

program

Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

program inventory

Identifies all the department's programs and describes how resources are organized to contribute to the department's core responsibilities and results.

result

A consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization's influence.

statutory expenditures

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

target

A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures

Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.