2023-2024 Departmental Results Report

From the Minister

When I was first named Minister of Agriculture and Agri-Food back in 2015, it was one of the greatest honours of my life. It's hard to believe that I get this privilege again, but it's been a real pleasure being back in the saddle and to have the opportunity to serve our farmers, ranchers, processors and all of the great folks working in our agricultural sector for a second time.

One of the biggest milestones for Agriculture and Agri-Food Canada in 2023–24 was the launch of the new Sustainable Canadian Agricultural Partnership (Sustainable CAP), Canada's shared federal-provincial-territorial (FPT) vision for the sector as a world leader in environmentally, economically, and socially sustainable agriculture and food. From 2023–2028, Sustainable CAP will drive $3.5 billion in FPT investments targeting climate change and environment; markets and trade; building sector capacity, growth and competitiveness; and science, research and innovation. To help get us out of the gate, I was honoured to announce a number of key federal initiatives under the Sustainable CAP, including 16 research clusters for a range of sectors, from livestock and grains to grapes and wine.

After two very challenging years, the sector came back stronger than ever in 2023–24, posting record exports of nearly $100 billion, supported by our continued efforts at the Department to help Canadian producers and processors maximize their opportunities around the world. That included a special focus on the Indo-Pacific, where I led two trade missions in 2023–24 and opened our first-ever Agriculture and Agri-Food office in Manila to establish our presence and build relationships in one of the world's fastest-growing agri-food markets.

At the same time, we continued our long-standing support of Canada's supply management system, helping Canada's dairy, poultry and egg producers and processors adjust to the impacts of recent trade agreements. As part of our total commitments of over $4.8 billion, I announced a federal investment of up to $333 million over 10 years to help the Canadian dairy sector compete and adapt to new market realities by better managing the surplus of solids-non-fats in Canada.

In 2023–24, we continued to support all Canadian farmers in building their resilience to climate change, while helping them recover from the impacts of extreme weather. Working with my Western provincial counterparts, we were able to allocate $219 million through the AgriRecovery Framework to support farmers in Saskatchewan, Alberta and British Columbia recover from extreme drought and wildfires, which took a heavy toll on their livestock and crops. With continued uncertainty around farm operating costs, I raised the interest-free limit of the Advance Payments Program to $250,000 for the 2024 program year.

To help Canadian farmers build on their stellar environmental record for the long term, I announced more than $97 million under the Agricultural Clean Technology program to support 162 projects across Canada that will keep farmers on the cutting edge with clean technologies.

Under the Agricultural Climate Solutions program we continued to deliver our On-Farm Climate Action Fund, which is helping thousands of farmers right across Canada, including Métis producers in Manitoba, to take action on their farms through cover cropping, fertilizer management, and rotational grazing. The program has been so popular with producers that it was extended until 2028 with an investment of over $704 million. As well, in 2023–24, we launched five new Living Labs, for a total of 14 across Canada, bringing researchers, farmers, and other partners together in the field to develop sustainable practices that work on the farm.

Keeping our farm businesses strong is vital not only for Canada's economy but also for our food security. In addition to helping our farmers provide Canadians with nutritious food, we also continued to help Canadian families facing food insecurity. In 2023–24, we announced a new investment of $10 million in our Local Food Infrastructure Fund, part of the Food Policy for Canada, to help local organizations improve food security in communities through investments in equipment and infrastructure. With our new School Food Infrastructure Fund and our commitment to a National School Food Program, we're making investments that will make a real difference in the lives of countless Canadian families.

I'm proud of our Department's achievements in 2023–24, and I thank all our partners – public and private – for helping us build an innovative and sustainable future for the entire Canadian agriculture and agri-food sector.

The Honourable Lawrence MacAulay, P.C., M.P.
Minister of Agriculture and Agri-Food

Results: what we achieved

• Core responsibility 1: Domestic and International Markets
• Core responsibility 2: Science and Innovation
• Core responsibility 3: Sector Risk
• Internal services

Core responsibility 1: Domestic and International Markets

In this section

• Description
• Progress on results
• Details on results
• Key risks
• Resources required to achieve results
• Related government-wide priorities
• Program inventory

Description - Core responsibility 1

Agriculture and Agri-Food Canada (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.

Domestic and International Markets 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.

Progress on results - Core responsibility 1

This section presents details on how the department performed to achieve results and meet targets for Domestic and International Markets. Details are presented by departmental result.

Table 1 provides a summary of the target and actual results for each indicator associated with the first result under Domestic and International Markets.

Table 1: Targets and results for "The Canadian agriculture and agri-food sector contributes to growing the economy"

Departmental result indicators	Target	Date to achieve target	Actual results
Percentage change in the economic performance of the agriculture and agri-food sector	At least 2.5%Note 1	December 2025	2021–22: 0.5% 2022–23: 1.8% 2023–24: 1.3%Note 2
Percentage change in agri-food products sold	At least 4.5%	December 2025	2021–22: 6.0% 2022–23: 6.9% 2023–24: 6.9%
Value of agriculture and agri-food exports ($billions)	At least $75 billion by 2025	December 2025	2021–22: $82.3 billion 2022–23: $92.8 billion 2023–24: $99.1 billion

Table 2 provides a summary of the target and actual results for each indicator associated with the second result under Domestic and International Markets.

Table 2: Targets and results for "Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions"

Departmental result indicators	Target	Date to achieve target	Actual results
Degree to which AAFC advances the resolution or the mitigation of market access barriers, World Trade Organization (WTO) disputes, and technical trade issues	At least 80%Note 1	March 2024	2021–22: 80% 2022–23: 84% 2023–24: 87%
Degree to which AAFC advances trade policy through negotiations, agreements and discussions	At least 80%Note 1	March 2024	2021–22: 90% 2022–23: 90% 2023–24: 90%

Additional information on the detailed results and performance information for AAFC's program inventory is available on GC InfoBase.

Details on results - Core responsibility 1

The following section describes the results for Domestic and International Markets in 2023–24 compared with the planned results set out in AAFC's Departmental Plan for the year.

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

Canada’s agriculture and agri-food sector is a significant contributor to the overall economy. The ability to improve, protect and diversify Canadian agricultural exports is a critical factor to success. The agriculture and agri-food sector’s performance remained strong despite numerous challenges, including market volatility, overall high prices and ongoing geopolitical conflicts, such as Russia’s continuing war on Ukraine. In 2023–24, the sector contributed $66.8 billion to Canada’s gross domestic product, while agriculture, agri-food and seafood exports totalled $99.1 billion.

AAFC continued to work alongside the Canadian Food Inspection Agency (CFIA), Global Affairs Canada, provinces and territories, and industry stakeholders to deliver a comprehensive range of market development initiatives and maintained and expanded market access and foreign direct investment. These efforts are a critical support system, enhancing the sector's ability to remain competitive and resilient, to trade predictably, and to take advantage of global opportunities. Aligned with the Government of Canada's Export Diversification Strategy, AAFC's ongoing work towards diversifying Canadian agricultural trade supported the growth of Canadian agriculture and agri-food exports in 2023–24. Some highlights of the Department's results in these areas for 2023–24 are provided below.

Results achieved

• Aligned with the Minister's mandate letter commitment, AAFC continued to deliver on the Government of Canada's commitment to compensate producers and processors in adapting to changes in the market from recent trade agreements. Over $4.8 billion has been committed for Canada's dairy, poultry, and egg producers and processors, and all associated programming has been launched (see highlight box below).

• Canada's first trade office for agriculture and seafood was established in Manila, Philippines in February 2024. The Indo-Pacific Agriculture and Agri-Food Office (IPAAO) helps Canadian exporters find new business and investment opportunities, along with sustainable and economic development in Indo-Pacific countries. The Indo-Pacific is the fastest growing economic region of the world and represented more than $22.8 billion of Canadian agri-food exports in 2023, making it Canada's largest regional agri-food export market.
• The Agriculture and Food Trade Commissioner Service continued to support the sector with dedicated in-market expertise, assisting Canadian exporters to identify and develop new opportunities abroad. Trade commissioners in 16 markets delivered more than 4,000 services to assist Canadian agri-food exporters achieve their international objectives. With the opening of the IPAAO, an additional five trade commissioners joined the network to further help industry market development and diversification efforts in the region.
• AAFC's Canada Pavilion Program showcased Canadian agri-food products at seven flagship trade shows. Ten trade associations, eight provincial governments, and over 250 Canadian businesses participated in this program across industry-leading international events, with the companies reporting a combined $278 million in on-site sales.
• The Department supported in-person, online, and hybrid market development promotions, in collaboration with provincial partners, trade commissioners and industry. Activities targeted key commodities in priority markets, including matchmaking services aimed at identifying and assessing Canadian suppliers for trade leads and connecting suppliers to Trade Commissioners abroad. In 2023–2024, 86 trade leads were actioned by the Department's regional offices, resulting in more than 240 Canadian organizations being referred to Trade Commissioners abroad in response to export business opportunities.
• Under the Canada Brand, the Department supported over 50 additional market development initiatives to deliver targeted agriculture and agri-food market development activities in five priority export markets: the Indo-Pacific, Europe, the United States, Mexico, and the Gulf Cooperation Council. For example, two high-profile digital marketing campaigns in Japan and Vietnam generated over $4.6 million in e-commerce and retail sales and 15.5 million impressions on social medial platforms.
• As part of a broader direction from FPT Agriculture Ministers, and in support of the Privy Council Office Federal Action Plan to Strengthen Internal Trade, AAFC collaborated with the CFIA and provinces and territories to develop pilots to address barriers to interprovincial trade in border regions and "Ready to Grow" plants. For example, four pilots were established, including one that explores opportunities to increase in market access for "Ready to Grow" high-volume provincially regulated meat plants in Ontario.
• In 2023–24, the AgriMarketing Program approved 46 projects for up to $63.3 million over the next three years. Program recipients such as the Canola Council of Canada, Cereals Canada, and Pulse Canada will be investing in shared in-market resources, to liaise and work in lockstep with the new IPAAO. This will ensure that an increased presence from both government and industry in the Indo-Pacific is coordinated and well-placed to grow exports to the region from Canada's three largest grain sectors.
• In its second year, the Wine Sector Support Program provided short-term funding of over $78.5 million to support 448 wineries in adapting to ongoing and emerging challenges while strengthening the wine sector. In March 2024, the Government of Canada announced an additional investment of up to $177 million for a three-year extension to the program.
• AAFC worked in partnership with Invest in Canada, Global Affairs Canada, other federal departments, provincial and municipal investment attraction offices, and trade commissioners abroad to promote Canada as a destination for agriculture and agri-food investment. AAFC continued to support the Foreign Direct Investment (FDI) ecosystem by coordinating partners' efforts on investment, serving as a center of expertise in the sector, engaging in promotional activities, and addressing investment barriers by responding to investor enquiries.
• AAFC delivered the final year of the inaugural investments as part of the first-ever Food Policy for Canada. Budget 2023 included an additional $10 million in 2023–24 for the Local Food Infrastructure Fund which supported community-based, not-for-profit organizations to improve food security in communities through investments in equipment and infrastructure. Since its launch in 2019, the fund has provided more than $65 million to help over 1,100 projects across Canada. In addition, AAFC released Canada's National Pathways Document that reported on perspectives shared from diverse stakeholders and partners, as well as on steps being taken in Canada toward healthier, more sustainable, and more equitable food systems.
• The AgriCommunication Program delivered its third and final year of funding. Approval of 24 applications for up to $6.6 million supported projects focusing on consumer awareness of Canadian agriculture, sector awareness of consumer perceptions, and industry's efforts to endorse environmentally sustainable best practices.
• AAFC continued working to enhance industry-government engagement through various channels in order to address sector needs and strengthen growth. In 2023–24, the full suite of nine Sector Engagement Tables were launched and continued to advance efforts towards their strategic goals. The Canadian Agricultural Youth Council discussed sustainability considerations, ways to attract and retain youth in the sector, and strategies to improve engagement on food production issues.
• Alongside Health Canada, the CFIA, and the agriculture and agri-food sector, the Department continues to explore opportunities for regulatory modernization and reducing regulatory burden. For example, AAFC's industry-government Agile Regulations Table has focused on examining approaches to measuring and reducing cumulative regulatory impact and consultative burden.
• The Department continued monitoring progress on the Grocery Sector Code of Conduct to bring more fairness, transparency and stability to the grocery sector and supply chain. The Government of Canada remained committed to encouraging major grocers, industry and supply chain partners to adopt and adhere to the industry-led code to ensure supply chain resiliency, and improve retailer and supplier relations.
• Launched in June 2023, AAFC continues to lead the Industry-Government Steering Committee on Plant Breeding Innovation Transparency. The committee supports the oversight of transparency initiatives for gene edited seeds in the Canadian marketplace, aims to safeguard the integrity of all agricultural value chains, and focuses on Canada's organic certification system.
• In 2023–24, through its network of regional offices, AAFC provided a wide range of services to agriculture and agri-food businesses including pathfinding services, promoting programs and services, organizing and participating in 110 industry events, engaging with provinces and territories through 51 Bilateral Management Committees and Annual Planning Meetings, and disseminating 72 trade services information bulletins for regional stakeholders across the country.

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

The continued growth and profitability of Canada's agriculture and agri-food sector is highly dependent on trade relationships. In 2023–24, Canada was the eighth-largest exporter of agri-food, fish and seafood in the world behind the United States, Brazil, the Netherlands, Germany, China, France and Spain, exporting to nearly 200 countries. Canada currently has 15 free trade agreements with 51 countries, and is the only G7 nation with free-trade access to all other G7 countries.

Through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) and other initiatives, the Department continued to support Canada's international market presence and enabling growth for Canadian exporters. This was achieved by opening, maintaining, and expanding access for Canadian products, including by pursuing new free trade agreements, advancing the resolution of trade issues, disputes and technical barriers, defending the interests of Canada's agricultural sectors, and advocating for science-based trade rules. Some highlights of the Department's results in these areas for 2023–24 are provided below.

Results achieved

• AAFC continued to collaborate with key partners domestically and abroad, including the CFIA, Global Affairs Canada, sector stakeholders, and provincial and territorial governments, to address market access issues and trade disputes informed by industry priorities, as well as to facilitate trade and market diversification in agriculture and agri-food products. For example, Canada has engaged extensively and at all levels with the United States to raise concerns and signal that regulations, such as the voluntary "Product of USA" labelling, and California's Proposition 12, have the potential to disrupt integrated supply chains and trade. This approach also contributed to the advancement and resolution of market access issues with countries such as Taiwan, Vietnam, Indonesia, and South Korea.
• The Department continued to support the defense of agricultural trade interests in Canada's regional trade agreements (CUSMA, CETA, CPTPP). In 2023–24, AAFC supported Global Affairs Canada in two CUSMA and CPTPP dispute settlement processes, initiated by the United States and New Zealand respectively, on Canada's dairy tariff rate quota administration. Canada also participated in the dispute settlement proceedings initiated under CUSMA regarding Mexico's measures related to genetically engineered corn.
• AAFC and the CFIA continued to engage with the European Union on its policies related to the Canadian food safety system, further advocating for science- and outcomes-based approaches to sustainable food production, positioning the sector to respond to trade opportunities and challenges.
• In January 2024, the Canada-United Kingdom Trade Continuity Agreement was fully implemented, maintaining preferential access to the British market for Canadian exporters. Separately, Canada also worked with other CPTPP parties to complete the United Kingdom's accession to the CPTPP. The accession protocol was signed in July 2023. The terms of CPTPP will not apply bilaterally between the UK and Canada until parliamentary procedures are completed in each country.
• The Department continued to actively contribute to other Government of Canada trade negotiations, including with Indonesia, the Association of Southeast Asian Nations (ASEAN), and Ecuador.
• The Department promotes Canada's agricultural trade policy interests and priorities with key trading partners and International Standard Setting Bodies by advocating for predictable and transparent trade in international organizations and multilateral fora, including the World Trade Organization (WTO), the United Nations Food and Agriculture Organization, the G7, and the G20. AAFC continued to advocate for innovative approaches to meet climate and environmental targets and sustainability goals, while simultaneously increasing productivity and profitability.
• During the 13th WTO Ministerial Conference in 2023–24, the Department worked to advance the agriculture negotiations and preserve key multilateral rules. AAFC also supported the implementation of the WTO Agreement on Agriculture, including by addressing issues of commercial and systemic interest for Canada's agriculture and agri-food sector.

Key risks - Core responsibility 1

Market challenges

Despite seeing growth, Canada's agriculture and agri-food exports faced a number of challenges in 2023–24, including inflation, high transportation costs, supply chain disruptions, growing skepticism about the benefits of open trade, economic interdependence and globalization, and market volatility – amplified by Russia's illegal war of aggression against Ukraine. Climate change, plant and animal diseases, and non-science-based trade barriers also pose ongoing risks by creating uncertainties for Canadian exporters.

In 2023–24, the Department continued to support the agricultural sector in facing these risks through strategic efforts to diversify Canadian exports. AAFC worked closely with other government departments in addressing market access irritants, and to engage bilaterally and multilaterally to build and strengthen trade partnerships, advance negotiations, support science-based trade rules, and defend Canada's agricultural interests.

Labour and skills shortages

AAFC continued working towards a National Agricultural Labour Strategy in 2023–24, in line with the commitment in the minister's mandate letter. After consulting with key stakeholders, provinces and territories, industry, underrepresented and marginalized groups, and the Canadian public, a What We Heard Report was released in May 2023, highlighting feedback received during consultations on the development of a strategy. Engagement will continue to ensure the needs of the sector are being reflected as the environment evolves.

AAFC also continued working with Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada on the Temporary Foreign Worker Program and immigration reform efforts, ensuring that the needs of the agriculture and agri-food sector are being considered. The Recognized Employer Pilot was launched in September 2023, offering a streamlined approach for employers accessing the Temporary Foreign Worker Program. Additionally, ESDC began consultations on the creation of a New Foreign Labour Program for Agriculture and Fish Processing, and AAFC is actively engaged in the consultation process and working closely with ESDC on this key commitment.

Cyber threats

Cyber disruptions can significantly impact an organization both financially and economically, creating service disruptions that affect consumer trust and Canadian food security. AAFC is engaging sector organizations, provincial and territorial governments, and stakeholders to raise awareness of actions that can be taken to help address and mitigate cyber risks in Canadian agriculture and agri-food.

In 2023–24, AAFC published a "Cyber security and your farming business" web page to share key information with the sector, helping agribusinesses to prevent cyber disruptions and protect their operations. The Department continued to promote available tools and resources through presentations to national organizations, and during panel discussions at agriculture-focused events.

Resources required to achieve results - Core responsibility 1

Table 3 provides a summary of the planned and actual spending and full-time equivalents (FTEs) required to achieve results.

Table 3: Snapshot of resources required for Domestic and International Markets

Resource	Planned	Actual
Spending	$319,184,294	$775,574,824
Full-time equivalents	528	551
Note: In 2023–24, actual spending was greater than planned spending mostly due to the new funding for the renewal of the Dairy Direct Payment Program and the Sustainable Canadian Agricultural Partnership (Sustainable CAP). Both were not included in last year’s Main Estimates due to timing of their approval; however, they were subsequently included in Supplementary Estimates in 2023–24.

The complete financial and human resources information for AAFC's program inventory is available on GC InfoBase.

Related government-wide priorities - Core responsibility 1

Gender-based analysis plus (GBA Plus)

Advancing diversity, equity and inclusion in the agriculture and agri-food sector remained a priority for the Department in 2023–24. AAFC continued to work on enhancing current programming and exploring additional program flexibilities and incentives, in an effort to better support Indigenous Peoples and other underrepresented and marginalized groups in the sector, including women, youth, racialized groups, persons with disabilities, 2SLGBTQI+ communities, and official language minority communities. Some highlights of the Department's efforts in 2023–24 are provided below.

• In 2023–24, AAFC's "Framework to Support Underrepresented and Marginalized Groups in the Agriculture and Agri-Food Sector" was finalized, which will guide the Department's efforts to address barriers, create opportunities, and advance diversity, equity, inclusion, and accessibility in the sector.
• AAFC continued working to remove barriers to participation, promote equitable access across all programs, and enable informed decision-making in program planning and design that considers diversity factors. GBA Plus program applicant data collection and analysis was enhanced to support evidence-based decision-making for future program design and delivery, aiming to enable equitable access to departmental programs. Going forward, Statistics Canada data will be utilized in preparing demographic profiles, and measuring progress towards increasing participation of women, youth, and Indigenous Peoples in Sustainable CAP programs.
• In 2023–24, the AgriDiversity Program funded initiatives for Indigenous Peoples and other underrepresented and marginalized groups, including women, youth, visible minorities, racialized persons, and 2SLGBTQI+ communities in the sector. The program approved 11 projects for a combined total of just under $3 million for the first three years, including, for example, Agriculture in the Classroom. This project aims to inspire the next generation of Canadians to care about the food they eat, where it comes from, and how it gets to consumers, as well as to help students better understand the agriculture sector.
• The Department continued to engage and invite diverse perspectives through targeted mechanisms, such as the Canadian Agricultural Youth Council and the Canadian Food Policy Advisory Council, ensuring policies and programs reflect the diversity of Canada's food systems, including advice for the development of a National School Food Policy and Program. The Sector Engagement Tables continued work towards gender parity in their membership, while aiming to increase membership from underrepresented and marginalized groups with the goal of significant (30%) representation.
• AAFC continued to connect Indigenous Peoples and communities with agricultural programs and services through the Indigenous Pathfinder Service. In addition, since its launch in 2019, the Local Food Infrastructure Fund has supported 248 Indigenous-led projects, providing opportunities in their communities, such as building community gardens and kitchens.
• The Department supported underrepresented and marginalized youth by delivering the Youth Employment and Skills Program (YESP) to help youth facing barriers gain career-related work experience in the agriculture sector. In 2023–24, an additional $13.5 million of funding was announced for YESP, supporting over 1,100 youth with projects further benefitting underrepresented and marginalized groups.

Further information on the underrepresented and marginalized groups served by AAFC'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

A number of initiatives under the Domestic and International Markets core responsibility support Canada's efforts to address the United Nations 2030 Agenda and the Sustainable Development Goals (SDGs). For example, 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, ultimately contributing to SDG 2: Zero Hunger; SDG 8: Decent Work and Economic Growth; and SDG 12: Responsible Consumption and Production.

More information on contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in AAFC's 2023 to 2027 Departmental Sustainable Development Strategy.

Innovation

Through its policies, programs and partnerships, AAFC continues to find ways to innovate, leverage new approaches, and enhance evidence-based decision-making towards departmental results in support of the agriculture sector. Some highlights of the Department's efforts in 2023–24 are provided below.

• The Food Waste Reduction Challenge supported high-impact solutions to food waste in Canada. The Business Models Streams focused on solutions that can prevent or divert food waste at any point in the food chain – for example, a line of ingredients for use by food processors made from food that would otherwise be wasted. In March 2024, two grand prize winners were announced, with each receiving up to $1.5 million to grow and scale their innovative food waste solutions. Under the Novel Technologies Streams, two grand prize winners were announced in May 2024, with each receiving up to $1 million to help accelerate the advancement of their solutions, and support their launch into the Canadian market.

Program inventory - Core responsibility 1

Domestic and International Markets is supported by the following programs:

• Trade and Market Expansion
• Sector Engagement and Development
• Farm Products Council of Canada
• Supply Management Initiative
• Canadian Pari-Mutuel Agency
• Food Policy Initiatives
• Water Infrastructure Divestiture
• Federal, Provincial, and Territorial Cost-Shared Markets and Trade

Additional information related to the program inventory for Domestic and International Markets is available on the Results page on GC InfoBase.

Core responsibility 2: Science and Innovation

In this section

• Description
• Progress on results
• Details on results
• Key risks
• Resources required to achieve results
• Related government-wide priorities
• Program inventory

Description - Core responsibility 2

Agriculture and Agri-Food Canada (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.

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

• 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.

Progress on results - Core responsibilityv 2

This section presents details on how the Department performed to achieve results and meet targets for Science and Innovation. Details are presented by departmental result.

Table 4 provides a summary of the target and actual results for each indicator associated with the first result under Science and Innovation.

Table 4: Targets and results for "The Canadian agriculture and agri-food sector knowledge base is increased through AAFC-supported scientific and innovative research"

Departmental result indicators	Target	Date to achieve target	Actual results
Percentage of AAFC scientific publications produced through collaboration	At least 75% Collaboration with external collaborators rises to at least 75% of AAFC peer-reviewed scientific publications	March 2024	2021–22: 77% 2022–23: 73% 2023–24: 74%
Number of citations as a proportion of AAFC scientific publications	An average of at least 15 citations per AAFC peer-reviewed publication in the span of 5 years is maintained	March 2024	2021–22: 17 2022–23: 21 2023–24: 25Note 1

Table 5 provides a summary of the target and actual results for each indicator associated with the second result under Science and Innovation.

Table 5: Targets and results for "The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices"

Departmental result indicators	Target	Date to achieve target	Actual results
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)Note 1	March 2024	2021–22: 72 2022–23: 66 2023–24: 61Note 2
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	2021–22: not available 2022–23: 63% 2023–24: not availableNote 3
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	December 2025	2021–22: not available 2022–23: not available 2023–24: not availableNote 4
Index of Agri-Environmental Sustainability (water, soil, air quality, biodiversity)	At least an Index of 71Note 5	March 2030	2021–22: 68Note 6 2022–23: not available 2023–24: 65
Percentage change in the productivity of the 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 2026Note 7	2021–22: −0.2% 2022–23: −0.3% 2023–24: −0.3%Note 8

Additional information on the detailed results and performance information for AAFC's program inventory is available on GC InfoBase.

Details on results - Core responsibility 2

The following section describes the results for Science and Innovation in 2023–24 compared with the planned results set out in AAFC's Departmental Plan for the year.

Result: The Canadian agriculture and agri-food sector knowledge base is increased through AAFC-supported scientific and innovative research

Scientific and innovative research is necessary to maintain the long-term sustainability and competitiveness of Canada's agriculture, agri-food, and agri-based products sector. The Department worked to strengthen its capacity in new areas of research, aligned with the priority areas of the Sustainable Canadian Agricultural Partnership (Sustainable CAP), by leveraging collaborative relationships with industry, academia and other federal, provincial, and territorial partners. Results are assessed by measuring the level of collaboration or citation involved in departmental scientific publications. Publication rates increased in 2023–24 compared to 2022–23, and the number of citations as a proportion of AAFC publications exceeded its target.

Growing the agricultural knowledge base through scientific research enables the development of innovative products, processes, and practices that can help the sector address critical challenges, while contributing to the Government of Canada's broader economic and environmental goals. Some highlights of the Department's results in this area for 2023–24 are provided below.

Results achieved

• AAFC's Strategic Plan for Science continued to guide science and research efforts within the Department towards knowledge and solutions to address the challenges of the climate crisis, global food security, and new emerging threats facing the sector. In 2023–24, the Department initiated 113 projects under the mission areas of mitigating and adapting to climate change, increasing the resiliency of agro-ecosystems, advancing the circular economy, and accelerating the digital transformation of the sector.
• Initiatives under the Foundational Science and Research Program focused on cross-sectoral challenges in the development of innovations that the sector can apply and bring to market. For example, using UV light to control food contaminants, new tools for disease monitoring in crops, and fruit waste to reduce anti-microbial use in poultry.
• Through the AgriScience Program, the Department supported pre-commercial science activities, in collaboration with industry, that address climate change and the environment, economic growth and development, and sector resilience and societal challenges. In addition, working with the Department's Indigenous Science Liaison Office, AAFC implemented an inclusive-by-design approach to fund Indigenous-led research, development, and technology transfer projects. In 2023–24, 16 clusters and 6 projects were funded under the program, collectively valued at $126 million.
• In July 2023, federal, provincial and territorial (FPT) Ministers of Agriculture tasked experts to examine challenges and opportunities in Canada's current approach to pest control. In February 2024, the new working group presented a report with five recommendations that received full endorsement from FPT ministers, and has since begun developing an implementation plan. AAFC also leveraged funding of over $1 million from the Treasury Board of Canada Secretariat's Centre for Regulatory Innovation to lead an experiment to support the regulatory approval of using drones to apply pesticides in Canada.
• AAFC continued to create opportunities for the sector to increase its awareness and use of alternative pest management approaches through the Pest Management Centre's Pesticide Risk Reduction Program and the Alternative Pest Management Solutions Initiative.

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

Supporting scientific research helps the Canadian agriculture and agri-food sector identify new ideas and solutions. Building on that research through investments to help commercialize and adopt innovations, allows those ideas to be transformed into new business practices and technologies. Departmental results assess the availability of transformative technologies, products, practices or processes, and the effectiveness of their adoption by the sector. In the first year of the Sustainable CAP, 61 new innovations were made available for transfer to the sector. In addition, the latest Index of Agri-Environmental Sustainability score, while slightly reduced from the previous recorded result, remains within the rating of "good".

Efforts to transform ideas into products, processes or practices under science and innovation serve to strengthen sector competitiveness and enable Canadian producers and processors to keep pace with demands for sustainability attributes in agri-food products. Some highlights of the Department's results in this area for 2023–24 are provided below.

Results achieved

• AAFC continued to assist industry to address the financial gap between research and the application of innovative practices through the renewed AgriInnovate Program under the Sustainable CAP. Projects are focusing on new technologies and processes that strengthen the Canadian innovation landscape, and provide competitiveness and sustainability benefits in the agriculture and agri-food sector.
• The Department continued to support farmers to increase soil carbon sequestration, reduce greenhouse gas emissions, and improve resiliency to climate change through the two streams of the Agricultural Climate Solutions Program (ACS):
  • Under the $185 million ACS – Living Labs program, nine projects, originally launched in 2022–23 in British Columbia (two), Alberta (two), Saskatchewan (two of which one is Indigenous-led), New Brunswick, Nova Scotia and, Newfoundland and Labrador, have continued to progress and many have completed the baseline measurements necessary to provide a comprehensive view of the soil carbon status at the onset of the program. In 2023–24, five new living labs were established in Manitoba, Ontario, Quebec (two), and Prince Edward Island, bringing the total to 14 across Canada. Efforts in their first year focused on developing collaborative agreements and working with producers, researchers and other partners in the co-design of beneficial management practices (BMPs) for the 2024 growing season. More established living labs advanced data collection of soil carbon, greenhouse gas emissions and other biophysical parameters (air, water, soil, and biodiversity) from participating farms and undertook first iterative evaluations of these results.
  • The $704.1-million ACS On-Farm Climate Action Fund has supported producers with the adoption of BMPs through 13 projects nationwide. Results from 2023-24 are currently under review.
• Through the Agricultural Clean Technology Program, AAFC has supported the adoption of nearly 200 clean technologies by producers to date, including energy efficient grain dryers, precision agriculture equipment and fuel/solar transitioning. In 2023–24, a total of 156 projects were approved under the program's Research and Innovation (19) and Adoption (137) streams. These projects enable the development, purchase and installation of transformative clean technologies that will reduce emissions, and provide other environmental benefits for the sector.
• The Department launched a new Agricultural Methane Reduction Challenge to advance low-cost and scalable practices, processes, and technologies designed to reduce methane emissions produced by cattle. Over 80 applications were received, and they are being reviewed by a jury to advance through the challenge.
• As part of the Sustainable CAP, AAFC, in partnership with provinces and territories, designed the $250-million cost-shared Resilient Agricultural Landscape Program (RALP) to use an ecological goods and services payment approach to incentivize producers to conserve and enhance the resilience of agricultural landscapes. This was achieved through the adoption of on-farm land use and management practices, such as maintaining and restoring grasslands and wetlands; establishing pollinator strips; and enhancing riparian and on-farm wildlife areas.
• To inform the development of a Sustainable Agriculture Strategy, AAFC continued engagement efforts with an advisory committee, provincial and territorial partners, Indigenous Peoples, and other stakeholders. Key highlights from the consultations were captured in a What We Heard Report, released in December 2023, and have been informing the strategy's ongoing development. The Sustainable Agriculture Strategy will focus on five priority areas: soil health, climate adaptation and resilience, water, climate change mitigation, and biodiversity.

Key risks - Core responsibility 2

Climate impacts

The Canadian agriculture and agri-food sector faces a variety of environmental risks every year, and continued to be affected by the challenges of climate change in 2023–24. Higher temperatures, shifting precipitation patterns, extreme weather events such as floods, droughts, wildfires, and the occurrence of conditions more favourable for pest survival and migration, significantly affect Canadian agriculture with varying effects across regions.

The Department worked to mitigate these risks through the design and support of scientific research, and by providing programming, jointly with the provinces and territories, that contributes to the agri-environmental well-being of the sector. In particular, through the AAFC Strategic Plan for Science, which focuses on sustainable agriculture, tackling the climate crisis, the emergence of new threats, and global food security.

Safeguarding scientific research and intellectual assets

In the rapidly evolving landscape of global research and innovation, AAFC recognizes the importance of safeguarding the integrity and security of scientific work. The data generated and used by departmental research projects represents investments and opportunities for the research community, the Canadian agriculture sector, and the public. Open and collaborative research environments are indispensable drivers of innovation and progress; however, intellectual property and research must remain safeguarded from potential misuse and unauthorized applications.

To help mitigate these risks, AAFC strengthened its risk management processes by creating a cyber security operations centre. The centre uses cutting edge tools and processes to identify, protect, detect, respond, and recover when attacked by cyber threat actors. The Department has also invested in a robust platform to store and protect project data, while enabling it to be accessed for re-use where possible. The platform ensures that valuable research assets are safeguarded but discoverable in accordance with agreements with other partners and security policies.

To ensure safeguards are in place, AAFC issued security standards on the use of the Internet of Things and on the use of Artificial Intelligence to guide usage of these technologies within the Department.

Resources required to achieve results - Core responsibility 2

Table 6 provides a summary of the planned and actual spending and full-time equivalents (FTEs) required to achieve results.

Table 6: Snapshot of resources required for Science and Innovation

Resource	Planned	Actual
Spending	$571,844,107	$829,601,909
Full-time equivalents	2,639	2,601
Note: In 2023–24, actual spending was greater than planned spending mostly due to the new funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP) that was not included in last year's Main Estimates due to timing of its approval; however, it was subsequently included in Supplementary Estimates in 2023–24. It also reflected compensation provided related to the renewal of collective agreements and funding for the Laboratory Asset Renewal Initiative.

The complete financial and human resources information for AAFC's program inventory is available on GC InfoBase.

Related government-wide priorities - Core responsibility 2

Gender-based analysis plus

AAFC is committed to ensuring diversity and inclusivity through its science and innovation activities to enable optimal creativity and collaboration, and to support equitable access for Indigenous Peoples, women, youth, racialized groups, persons with disabilities, 2SLGBTQI+ communities and official language minorities communities in the agriculture sector. In addition to the ongoing work to enhance programming options and data collection in support of GBA plus, the Department continues to look to address representation gaps in the workforce through scientific recruitment, and delivers training and learning sessions to promote diversity, equity and inclusion. Some highlights of the Department's efforts in 2023–24 are provided below.

• The Women in STEM (science, technology, engineering, and mathematics) Network collaborated with other diversity networks within AAFC, to host and participate in events to address common issues, and promote a diverse and inclusive workplace. For example, the network co-hosted a panel for International Women's Day with the Department's Young Professionals Network.
• The interdepartmental Indigenous Science Technology Engineering Mathematics (I-STEM) Cluster, hosted by AAFC, continued to highlight the innovative potential of Indigenous-led and co-developed research at various fora. The cluster piloted an Indigenous research ethics workshop, reaching over 100 scientific staff from across 15 member departments. Since launching in 2019, over 500 staff have participated in I-STEM training opportunities and at least an equivalent number also participated in Indigenous employee network events.
• The I-STEM Cluster continued to build and maintain critical research relationships with both international and national Indigenous organizations, such as the First Nations Education Administrators Association. In collaboration with the First Nations Information Governance Centre, in 2023–24, STEM-specific considerations were developed for guidance related to supporting Indigenous data sovereignty to increase federal knowledge, competency, and operability in this area.
• The Department's Indigenous Science Liaison Office advanced efforts to build relationships, engage, and co-develop research projects with Indigenous partners, while providing science-specific cultural literacy and competency training. In 2023–24, the office funded a pilot Indigenous Agriculture Conference hosted by Red Crow Community College planned in partnership with the college and Lethbridge Research and Development Centre. The success of the event led to the college's submission of an application for funding under the AgriDiversity program, to support a subsequent conference in spring 2024.
• In 2023–24, AAFC concluded the fourth year of the Indigenous Agricultural Science Partnerships funding mechanism pilot. Two streams were introduced in 2023–24 to support departmental researchers in initiating relationship-building activities with Indigenous community partners across Canada, and to support science projects that include relationship-building. Six projects were funded, representing a combined total of just under $40,000.

Further information on the underrepresented and marginalized groups served by AAFC'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

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). For example, the Department continues to modernize its delivery of science and technology initiatives to provide leadership in the growth and development of a competitive, innovative, and sustainable Canadian agriculture and agri-food sector. The Department also embraces the renewal and greening of its research facilities in support of Canada's objective to be a global leader in government operations that are net-zero, resilient, and green. Efforts in these areas contribute toward: SDG 2 - Zero hunger; SDG 6 - Clean water and sanitation; SDG 7 - Affordable and clean energy; SDG 8 - Decent work and economic growth; SDG 9 - Industry, innovation and infrastructure; SDG 12 - Responsible consumption and production; SDG 13 - Climate action; and SDG 15 - Life on land.

More information on contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in AAFC's 2023 to 2027 Departmental Sustainable Development Strategy.

Innovation

In 2023–24, AAFC continued to develop and test modern approaches through its science and innovation programming. The Department continued working to strengthen its capacity to analyze the results of past research and science program results, and link data with results from provincial, territorial, and industry-led initiatives. Data and lessons learned from innovative program delivery approaches serves to inform program design, both through its implementation and for the future.

Canada's regulatory system is a key enabler of science and innovation in the agriculture domain. AAFC's industry-government Agile Regulations Table (ART) provides a space for exploring a modern, innovative approach to regulation, including journey mapping and regulatory experimentation.

In 2023–24, AAFC was the Government of Canada lead for an AgTech STI (Science, Technology, and Innovation) Partnership Team under the Prime Minister-level Strategic Dialogue with the Netherlands. Through the Dialogue, AAFC helped support the success and increased awareness of several key events, including inbound and outbound trade missions, and major international Agtech trade shows.

Program inventory - Core responsibility 2

Science and Innovation is supported by the following programs:

• Foundational Science and Research
• AgriScience
• AgriInnovate
• Environment and Climate Change Programs
• Canadian Agricultural Strategic Priorities Program
• Federal, Provincial, and Territorial Cost-Shared Science, Research, Innovation, and Environment

Additional information related to the program inventory for Science and Innovation is available on the Results page on GC InfoBase.

Core responsibility 3: Sector Risk

In this section

• Description
• Progress on results
• Details on results
• Key risks
• Resources required to achieve results
• Related government-wide priorities
• Program inventory

Description - Core responsibility 3

Agriculture and Agri-Food Canada (AAFC) provides tools to mitigate the financial impact of risks beyond producers' control that threaten the viability of their operations. AAFC 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.

Sector Risk 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.

Progress on results - Core responsibility 3

This section presents details on how the Department performed to achieve results and meet targets for Sector Risk. Details are presented by departmental result.

Table 7 provides a summary of the target and actual results for each indicator associated with the first result under Sector Risk.

Table 7: Targets and results for "The agricultural sector is financially resilient"

Departmental result indicators	Target	Date to achieve target	Actual results
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 2024	2021–22: 84% 2022–23: 110% 2023–24: 136%Note 1
Percentage of financially healthy farms	At least 90% Percentage of financially healthy farms is maintained at least at 90%	March 2024	2021–22: not available 2022–23: 92% 2023–24: not availableNote 2

Table 8 provides a summary of the target and actual results for each indicator associated with the second result under Sector Risk.

Table 8: Targets and results for "The agriculture and agri-food sector is equipped with assurance systems and supporting tools"

Departmental result indicators	Target	Date to achieve target	Actual results
Percentage of implementation plans for assurance projects reported to be functioning	Range between 65% and 85%	March 2024	2021–22: not available 2022–23: not available 2023–24: 85%Note 1

Additional information on the detailed results and performance information for AAFC's program inventory is available on GC InfoBase.

Details on results - Core responsibility 3

The following section describes the results for Sector Risk in 2023–24 compared with the planned results set out in AAFC's Departmental Plan for the year.

Result: The agricultural sector is financially resilient

The financial health of Canadian farms serves as an indication of the agriculture and agri-food sector's overall resilience to ever-evolving market pressures and environmental conditions. Producers encounter a number of challenges in managing their operations, such as extreme weather, price fluctuations, plant and animal disease, labour shortages, and international crises that may affect supply chains and agricultural trade.

Through programs and services under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), the Department provided producers with tools to manage these risks and promote growth in their operations, as assessed by sector income as a proportion of historical income, and the percentage of financially healthy farms. Some departmental results in this area for 2023–24 are highlighted below.

Results achieved

• Under the first year of the Sustainable CAP, an extensive range of business risk management (BRM) programs were available to agriculture and agri-food producers to prevent income and production losses, helping them to mitigate and respond to risks that threaten the viability of their operations (see highlight box below).

• To provide additional support to producers with the growing costs of agricultural inputs, the interest-free limit under the Advance Payments Program was further increased from $250,000 to $350,000 for the 2023 program year. Increasing the limit from $100,000 to $350,000 allowed eligible participants to save an average of $6,336 in additional interest costs for the year, representing a total savings of $81.1 million for 12,800 producers.
• In 2023–24, producers were provided approximately $4.2 billion of indemnity payments through the AgriInsurance program to help mitigate the impact of losses during the crop year. A project is underway to analyze the impact of climate change on crop production levels, yield volatilities and AgriInsurance program costs.
• Through AgriRecovery, a total federal investment of just over $243 million was allocated in 2023–24 to help agricultural producers across Canada with the extraordinary costs they incurred to return to production after a disaster event. For instance, $219 million was allocated to farmers and ranchers in British Columbia, Alberta, and Saskatchewan, dealing with severe financial impacts created by drought conditions and wildfires. The framework supported beekeepers in Manitoba, Alberta, Saskatchewan, and beekeepers and grape producers in Ontario affected by extreme cold weather. It also supported producers in Nova Scotia, Prince Edward Island, and Newfoundland and Labrador affected by Hurricane Fiona.
• In addition to the core BRM suite, the Livestock Price Insurance Program provided additional support by allowing producers to purchase price protection on cattle and hogs. Additionally, the Livestock Tax Deferral provision was invoked in 2023 with designated regions in British Columbia, Alberta, Saskatchewan and Manitoba as a result of drought conditions. This allowed livestock producers in these regions, who sold part of the breeding herd, to defer a portion of their income from sales until the following tax year.
• At their annual meeting in July 2023, Federal, Provincial and Territorial (FPT) Ministers of Agriculture agreed to introduce an optional model for AgriStability that would improve the timeliness, simplicity and predictability of the program. This follows a successful, two-year pilot initiative that concluded in 2023. As of the 2024 program year, producers in the provinces and territories where AgriStability is federally administered have the option of aligning their reference margin calculation to their tax-filing method. This builds on the increase to the AgriStability compensation rate, from 70% to 80%, that began in the 2023 program year.
• To help inform future program changes, AAFC initiated a multi-year review to assess the impacts of climate change across the BRM programming suite in 2023–24 in consultation with the provinces and territories. The ongoing review will examine the relationship between BRM programs, climate change adaptation and mitigation strategies, while supporting the fiscal sustainability of the programs. The review is expected to be completed by the end of 2025-26.
• AAFC collaborated with industry stakeholders and federal, provincial, and territorial governments to implement proactive strategies for planning, preventing, and mitigating production risks, climate-related disasters, and supply chain disruptions that could impact human, animal, plant, and environmental health and to enhance integrated responses during emergencies. Efforts in 2023–24 focused on bilateral engagement with provinces and territories on their emergency management programs and experiences and meetings with the Food Sector Network where members discussed specific risks, developed strategies to mitigate these risks, and shared information. This broad collaboration will enable sectoral emergency management preparedness and will help inform the renewal of the Emergency Management Framework for Agriculture in Canada. AAFC also coordinated and participated in federal preparedness activities such as table-top exercises related to African Swine Fever (ASF).
• Recognizing that the mental health and well-being of the agriculture community is critical to its resilience, the Department supported the Canadian Centre for Agriculture Wellbeing in the development of a mental health toolkit to support producers when faced with an extreme event – such as an ASF outbreak – and through funding to provide agriculture literacy training for mental health professionals to ensure the unique needs and challenges of farmers are well supported.

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

Assurance systems are guidelines, protocols and procedures designed to ensure that risks in the food supply chain are effectively managed and mitigated. They play a vital role in Canadian agriculture by providing producers with tools to ensure their products meet high-quality standards, adhere to strict production methods, and can be certified as meeting specific product claims. This enhances the reputation and credibility of Canadian producers, and enables them to respond effectively to changing consumer demands and market trends.

Departmental efforts in this area, in collaboration with federal, provincial and territorial partners, help build and maintain public trust in the agriculture and agri-food sector, ensure ongoing confidence of Canadians in the agricultural supply chain and contribute to long-term growth. Some highlights of the Department’s results in this area for 2023–24 are outlined below.

Results achieved

• Through the AgriAssurance Program, AAFC supported the agriculture industry in developing, verifying, and integrating assurance systems to address market and regulatory requirements. This enables the industry to make credible and verifiable claims about the health, safety, and quality of Canadian agricultural products. In 2023–24, the AgriAssurance Program approved 27 projects across its two components, valued at up to $42.9 million over five years.
  • Funding under the National Industry Association component, for example, supported the development of the second National Beef Sustainability Assessment and Strategy Report by the Canadian Roundtable for Sustainable Beef. The assessment highlights progress in the Canadian beef sector between 2014 and 2021 on sustainability indicators, and noted key environmental improvements, such as a 15% reduction in greenhouse gas emissions to produce 1 kilogram of beef since 2014.
  • Through the Small and Medium-sized Enterprises component, AAFC supported projects for Canadian food processors looking to obtain certification from third parties to meet export requirements. For instance, Revived Foods Inc., which aims to respond to the challenge of food waste by transforming food by-products into high-quality meals, received funding under the program to assist in obtaining the food safety certification needed to export to the United States.
• AAFC and the Canadian Food Inspection Agency (CFIA) strengthened their collaboration in the areas of assurance systems, food safety recognition, traceability, and biosecurity by signing a five-year Memorandum of Understanding in 2023. This agreement sets out the framework for coordination, cooperation, and reporting to support the agricultural sector with assurance systems and technical expertise. It also enables collaboration between the organizations to facilitate assurance recognition programs, plant and animal health activities, particularly biosecurity and surveillance, and traceability programs under the Sustainable CAP.

Key risks - Core responsibility 3

Climate impacts

Agricultural producers are confronted with a variety of risks that can threaten the sustainability of their operations. Environmental factors such as rising temperatures, altered growing seasons and precipitation patterns, and a heightened frequency and intensity of extreme events like droughts, wildfires, and floods pose ongoing challenges to the sector. The shifting climate may also result in an increased incidence of pests and diseases through, for example, greater overwinter survival, and the emergence of those not currently found in Canada.

To support the sector in mitigating these risks, the Department continued delivering programming that supports the adoption of on-farm BMPs to tackle climate change, reduce greenhouse gas emissions, and improve resiliency. In addition, the suite of BRM programs provided agricultural producers with essential financial protection against income and production losses that could otherwise jeopardize the sustainability of their farms.

Market disruptions

The agriculture and agri-food sector faces fluctuating commodity prices and inflationary pressures, while domestic and international supply chain disruptions, geopolitical tensions, and disease outbreaks affect both producers and the marketplace. Market disruptions affect consumer demand, input costs, overall production, supply chain resilience, and the financial burdens of producers.

To help mitigate these risks, BRM programming provides financial support to affected producers, while programs such as the African Swine Fever Industry Preparedness Program serve to enhance efforts to prevent diseases from entering the country and ready the industry for a potential outbreak. Through this program, the Department invested nearly $1 million to support Animal Health Canada in its role in African Swine Fever (ASF) prevention and preparedness efforts in Canada. AAFC continued working with provinces, territories and industry stakeholders on prevention and preparedness measures, including through its membership in the African Swine Fever Emergency Management Board.

In July 2023, FPT Ministers of Agriculture agreed to continued collaboration, including with industry, on disease prevention, surveillance and management plans, and cost-shared response programming. AAFC has advanced engagement efforts to increase Canada's capacity and readiness to respond to potential outbreaks. Ministers also emphasized the importance of supporting practical traceability measures that reflect operational realities. Proposed amendments to the Health of Animals Regulations (Part XV) were published in the Canada Gazette Part I in 2023-24, with an update expected in early 2025.

Labour and skills shortages

Some areas of the agriculture and agri-food sector struggle with labour shortages, and the loss of skilled labour. A labour shortage affects employers’ abilities to fill positions and retain staff which greatly affects operations, resulting in lost productivity and economic potential, as well as increased pressures on workers and operators. In 2023–24, AAFC continued consultations and engagement with provincial and territorial governments, industry stakeholders, and the public in the development of a National Agricultural Labour Strategy to address labour challenges faced by the sector.

The Department also continued collaborative efforts with Employment and Social Development Canada as well as Immigration, Refugees and Citizenship Canada to address labour shortage challenges through their launch of the Recognized Employer Pilot within the Temporary Foreign Worker Program. The 3-year pilot enables simpler and more predictable access to labour, and provides a streamlined approach for employers who meet the highest standards for working and living conditions and worker protections to fill positions for in-demand fields. In addition, Employment and Social Development Canada began consultations for the creation of a New Foreign Labour Program for Agriculture and Fish Processing, and AAFC is actively engaged in the consultation process with Employment and Social Development Canada on this commitment.

Resources required to achieve results - Core responsibility 3

Table 9 provides a summary of the planned and actual spending and full-time equivalents (FTEs) required to achieve results.

Table 9: Snapshot of resources required for Sector Risk

Resource	Planned	Actual
Spending	$794,201,282	$2,300,585,983
Full-time equivalents	420	414
Note: In 2023–24, actual spending was greater than planned spending mostly due to the new funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP) that was not included in last year’s Main Estimates due to timing of its approval; however, it was subsequently included in Supplementary Estimates in 2023–24.

The complete financial and human resources information for AAFC's program inventory is available on GC InfoBase.

Related government-wide priorities - Core responsibility 3

Gender-based analysis plus

Advancing diversity and inclusion in the agriculture and agri-food sector, including through Sector Risk initiatives, remained a priority for the Department in 2023–24. AAFC continued working to enhance its programming and GBA plus data collection, and to better support Indigenous Peoples and other underrepresented and marginalized groups in the sector, including women, youth, racialized groups, persons with disabilities, 2SLGBTQI+ communities, and official language minority communities. Some highlights of the Department's efforts in 2023–24 are provided below.

• AAFC continued working with partners to enhance the outreach of BRM programs in support of embracing diversity, equity and inclusion within the sector, and to improve understanding of participation by Indigenous Peoples and other underrepresented and marginalized groups. Work is ongoing to enable the identification of barriers and the necessary data requirements to advance policy and program development that ensures inclusive outcomes.
• Voluntary self-identification questions were implemented on the program forms for the Advance Payments Program, and the Canadian Agricultural Loans Act programs to assess participation barriers for diversity groups, and support future analysis.

Further information on the underrepresented and marginalized groups served by AAFC'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

Activities and programs 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), contributing towards SDG 2: Zero Hunger; and SDG 8: Decent Work and Economic Growth. In addition, 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. This could indirectly support SDG 16: Peace, Justice and Strong Institutions and, specifically, target 16.6, which aims to develop effective, accountable, and transparent institutions at all levels.

More information on contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in AAFC's 2023 to 2027 Departmental Sustainable Development Strategy.

Innovation

In 2023–24, AAFC continued using innovative approaches launched in previous years to enhance the delivery of risk management programs and build new risk management tools. For example, to streamline and increase the timeliness of AgriStability program payments, the Department analyzed results and assessed the impact of a cash reference margin pilot initiative in select jurisdictions. The results of this pilot informed the decision to offer the new option of tax-aligned reference margin calculation for AgriStability. In addition, a 2-year AgriStability outreach position was piloted in Nova Scotia to facilitate communications with agricultural producers, and to encourage participation in the program. Activities in the second year of the pilot continued to provide producers with additional supports. An evaluation of the pilot position was completed in June 2024, and the results will inform further outreach activities.

AAFC continued advancing a nudge project designed in collaboration with the Privy Council Office Fellowship Program to generate more interest and uptake in the "My AAFC" account portal, and default users to only online interactions. Efforts in 2023–24 focused on re-evaluating the efficacy of the new portal, following a number of project delays and technical challenges. A five-year e-communications strategy has been developed to further enhance the portal's functionality to reduce paper-based communications with producers.

Program inventory - Core responsibility 3

Sector Risk is supported by the following programs:

• AgriStability
• AgriInsurance
• AgriInvest
• AgriRecovery
• Livestock Price Insurance Program
• Loan Guarantee Programs
• Farm Debt Mediation Service
• Pest Management
• Assurance Program
• Federal, Provincial, and Territorial Cost-Shared Assurance
• Return of Payments
• African Swine Fever Response

Additional information related to the program inventory for Sector Risk is available on the Results page on GC InfoBase.

Internal services

In this section

• Description
• Progress on results
• Resources required to achieve results
• Contracts awarded to Indigenous business

Description - Internal services

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

• management and oversight services
• communications services
• legal services
• human resources management services
• financial management services
• information management services
• information technology services
• real property management services
• materiel management services
• acquisition management services

Progress on results - Internal services

This section presents details on how the Department performed to achieve results and meet targets for internal services.

Prioritizing diversity, equity, and inclusion (DEI) in our workforce and workplaces

The Department remains dedicated to fostering a positive work environment where employees feel valued, heard, and respected. Through the implementation of various initiatives, Agriculture and Agri-Food Canada (AAFC) has continued to build on the strategic objectives of its 2022–25 DEI Strategy and Action Plan: enhancing representation, promoting belonging, building accessible and inclusive workplaces, and increasing leadership, accountability, and monitoring efforts. AAFC also remains committed to responding to the Clerk of the Privy Council's Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service. Some examples of the Department's efforts in these areas in 2023–24 are highlighted below.

• AAFC continued to remove biases and facilitate diversity in staffing processes through various initiatives, including the Diverse Staffing Board Initiative, which grew its volunteer pool to 127, and received 18 requests from hiring managers in 2023–24. The Department maintained talent inventories for members of employment equity groups and identified pre-qualified Indigenous students, and students with disabilities.
• In the Department's 2022-25 DEI Strategy, there was a commitment to enhance representation of Indigenous Peoples, persons with disabilities, racialized persons, and equity-seeking groups in the executive cadre. Through engagement with each DEI network, 7 equity-seeking employees participated in AAFC's Manager Leadership Development Program (MLDP). AAFC also sponsored 6 employees for leadership development through AAFC's Employment Equity Sponsorship Program, and the Government of Canada's MOSAIC Leadership Development program.
• Activities hosted by the Department's diversity networks helped to advance awareness and support employee learning with respect to equity and inclusion. Events in 2023–24 engaged 1,940 employees and featured discussions on accessibility for the International Day for Persons with Disabilities on accessibility, the impact of artificial intelligence on racialized groups, and reducing violence against two-spirit persons.
• To promote awareness and implementation of inclusive practices throughout the organization, AAFC developed a manager's toolkit, added DEI content to onboarding sessions, and maintains shared calendars of observance days and DEI events.
• A comprehensive marketing campaign was undertaken to continue the recruitment of persons with disabilities employed by AAFC in order to meet the Department's hiring needs. The campaign featured current AAFC employees with disabilities sharing their experience of working at the Department.

Enhancing employee wellness and engagement in a modern work environment

AAFC continued to foster an inclusive and adaptable hybrid work environment that addresses the diverse circumstances of its employees, while cultivating innovation, collaboration and productivity. Some examples of the Department's efforts in these areas in 2023–24 are highlighted below.

• AAFC continued to modernize worksites across the country while engaging with employees, employee-led networks and union partners. Examples include conducting an on-site employee experience survey and providing communication products to support successful adaptation to a hybrid work model.
• AAFC made significant progress on commitments under the Accessible Canada Act. As an early adopter of the Government of Canada Workplace Accessibility Passport, the Department continued advancing a collaborative approach to identify, remove, and prevent barriers in the workplace and in policies, programs, and services. In 2023–24, efforts focused on publishing an updated accessibility plan and 2023 progress report, and establishing an internal process to monitor progress on legislative requirements.
• AAFC engaged employees through a voluntary questionnaire to gain insights into the prevalence of accessibility barriers in the workplace, and introduced the "Accessibility for All" initiative. The initiative expands and expedites access to adaptive digital technologies in support of employee accommodations needs to facilitate a more inclusive and efficient work experience.
• AAFC continues to ensure employees and managers are informed of their responsibilities for preventing and responding to harassment and violence in the workplace. Aligned with Bill C-65, the Department met its target of 80% completion rate for mandatory training on harassment and violence prevention and a new directory of community resources was developed for employees.

Managing departmental assets and real property

AAFC remains committed to ensuring that its buildings, land and equipment are managed in a way that meets operational needs and delivers high-quality programs and services to Canadians. Some examples of the Department's efforts in these areas in 2023–24 are highlighted below.

• To improve the sustainable and strategic management of real property under its jurisdiction while supporting AAFC's science mandate, the Department continued to build upon the recommendations stemming from a 2017–20 Horizontal Fixed Asset Review. These efforts align with ongoing progress towards a sustainable 25-year Real Property Strategy, aimed at ensuring sound management of the Department's real property portfolio.
• AAFC continued implementing commitments under the federal government's Greening Government Strategy, including working towards the greenhouse gas (GHG) emissions target of a 40% reduction from buildings and vehicle fleets by 2025, and by at least 90% by 2050 relative to 2005 levels. By 2023–24, the Department had achieved a 55% reduction of its GHG emissions. Further details on AAFC's efforts can be found in the 2023 to 2027 Departmental Sustainable Development Strategy.
• The Department continued to engage in collaborative initiatives with other science departments and Laboratories Canada which aim to modernize agriculture science and technology infrastructure. The Department launched a project to modernize digital research infrastructure that addresses current and future needs for science data storage, and access to high-performance computing. This project contributes to the Government of Canada's broader goals of fostering a stronger, more sustainable and collaborative federal science and technology community.

Strengthening digital service delivery, data analytics and transparency

AAFC remains committed to advancing the vision of a digital government that delivers quality programs and services, while prioritizing client-driven, digitally enabled, inclusive, and accessible solutions. The Department advanced efforts across five key data and digital building blocks: people, digital infrastructure, cyber security, data, and enterprise architecture. Some examples of the Department's efforts in these areas in 2023–24 are highlighted below.

• AAFC has continued to prioritize client service improvements. For example, AAFC successfully implemented a program delivery solution, the Grants and Contributions Digital Platform (GCDP), integrated with the My AAFC Account portal, to enhance online service delivery. The portal provides a simplified user experience, a secure application, claims, and supporting documentation submission process, and status monitoring for clients.

 

• AAFC has implemented initiatives leveraging artificial intelligence (AI) to improve service delivery and internal operations. A departmental AI centre of excellence has developed innovative systems, such as those related to document and image identification, which are now being widely shared and adopted across government departments and agencies.
• As part of a heightened focus on cybersecurity, AAFC maintained collaboration with other government security departments and established an expert network to raise awareness and adapt outreach activities within the agricultural sector. The Department also took steps to increase employee knowledge of cybersecurity risks and responsibilities among employees.
• Work continued towards establishing an enterprise-wide platform for the Department. AgriClient, a client relationship management system, captures and tracks interactions between AAFC and Canadian agriculture and agri-food stakeholders.
• The Department opened a Digital Innovation Hub in Ottawa that encourages employees to expand their skillsets with cutting-edge technology, and offers a collaboration zone for teams to design new, agile ways of working that are technologically advanced.

Supporting Indigenous initiatives and advancing reconciliation

AAFC remains committed to advancing reconciliation in response to the Truth and Reconciliation Commissions Call to Action by supporting Indigenous-led agriculture through various programs and services, including by establishing an Indigenous Engagement and Partnership office and implementing a departmental Indigenous Policy Framework. These efforts support the whole-of-government approach to implementing the United Nations Declaration on the Rights of Indigenous Peoples Act (UN Declaration Act) and the Inuit Nunangat Policy. Some highlights of the Department's efforts in these areas for 2023–24 are outlined below.

• The Department's Indigenous Support and Awareness Office (ISAO) continued to foster relationships with, and benefits for, Indigenous Peoples through outreach, engagement, delivering learning sessions, and by providing an Indigenous lens on departmental activities. In 2023–24, the ISAO engaged with several external entities, including by request to provide feedback on land acknowledgements, and delivered 53 sessions on various topics as part of its Indigenous Awareness Learning Series.
• The Indigenous Network Circle (INC) at AAFC supported all Indigenous employees by providing safe spaces to network and build connections. The Circle continued enhancing awareness and appreciation of Indigenous heritage and culture, such as providing teaching and learning events at the Mikinàk Ceremonial Lodge in 2023–24.
• To encourage and support Indigenous Peoples in joining the federal public service, the Indigenous Science Liaison Office (ISLO) continued to support recruitment and retention initiatives, particularly in STEM disciplines. The Department created candidate pools for six AAFC research centers in 2023–24. In addition, as part of the Indigenous Student Recruitment Initiative, a team of regional champions and Indigenous student advisors contacted 130 schools and 150 Indigenous communities nationwide to increase awareness of opportunities in the federal public service.
• AAFC established an Indigenous Programming Strategy to direct the delivery of accessible and inclusive programs and services for Indigenous peoples. The strategy expands the role of the Indigenous Pathfinder Service to include providing assistance in the completion and submission of applications to federal, provincial and territorial programs. In 2023–24, the Service assisted 114 clients navigate the available information and tools within the agriculture and agri-food sector.

Resources required to achieve results - Internal services

Table 10 provides a summary of the planned and actual spending and full-time equivalents (FTEs) required to achieve results.

Table 10: Resources required to achieve results for internal services this year

Resource	Planned	Actual
Spending	$141,842,856	$257,678,682
Full-time equivalents	1,481	1,507
Note: In 2023–24, actual spending was greater than planned spending mostly due to the new funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP) that was not included in last year’s Main Estimates due to timing of its approval; however, it was subsequently included in Supplementary Estimates in 2023–24. It also reflected compensation provided related to the renewal of collective agreements as well as amounts carried forward from 2022–23.

The complete financial and human resources information for AAFC's program inventory is available on GC InfoBase.

Contracts awarded to Indigenous business - Internal services

Government of Canada departments are to meet a target of awarding at least 5% of the total value of contracts to Indigenous businesses each year. This commitment is to be fully implemented by the end of 2024–25.

AAFC's result for 2023-24

As shown in Table 11, AAFC awarded 7.7% of the total value of all contracts to Indigenous businesses for the fiscal year.

Table 11: Total value of contracts awarded to Indigenous businesses^{Note 1}

Contracting performance indicators	2023–24 results
Total value of contracts awarded to Indigenous businessesNote 2 (A)	$12,658,361
Total value of contracts awarded to Indigenous and non‑Indigenous businessesNote 3 (B)	$163,371,055
Value of exceptions approved by deputy head (C)	$0
Proportion of contracts awarded to Indigenous businesses [A / (B−C) × 100]Note 4	7.7%

To ensure the Department met or exceeded its established 5% target, AAFC concentrated on communicating its Procurement Strategy for Indigenous Business (PSIB) framework in 2023–24, and encouraged internal stakeholders to increase participation of Indigenous businesses in procurement requirements. To support these efforts, AAFC has:

• Continued engagement via its departmental PSIB working group, comprised of key stakeholders to plan and identify Indigenous set-aside procurements to facilitate the department's efforts towards achieving the 5% target.
• Responded to requests for participation in PSIB Interdepartmental Committees, and the Treasury Board Secretariat's PSIB Tiger Team to ensure a unified approach to achieving the 5% target.
• Remained engaged with Indigenous businesses to understand business capabilities to increase procurement opportunities, and explore future procurement areas for growth.
• Shared Indigenous company profiles with AAFC business owners as well as pre-established methods of supply that include PSIB principles encouraging set-aside procurements.
• Communicated mandatory government-wide learning requirements for procurement officers to the help the department meet its obligations.
• Developed an internal communications strategy to ensure that AAFC procurement specialists and business owners remain informed about the Department's Indigenous procurement objectives, and of the Government of Canada's commitment to Indigenous communities.

In its 2024–25 Departmental Plan, the Department forecasted that, by the end of 2023–24, it would award 5% of the total value of its contracts to Indigenous businesses.

Spending and human resources

In this section

• Spending
• Funding
• Financial statement highlights
• Human resources

Spending - Spending and human resources

This section presents an overview of the Department's actual and planned expenditures from 2021–22 to 2026–27.

Budgetary performance summary

Table 12 presents how much money AAFC spent over the past three years to carry out its core responsibilities and for internal services.

Table 12: Actual three-year spending on core responsibilities and internal services (dollars)

Core responsibilities and internal services	2023–24 Main EstimatesNote 1	2023–24 total authorities available for useNote 2	Actual spending over three years (authorities used)Note 3
Domestic and international markets	319,184,294	816,188,439	2021–22: 884,355,981 2022–23: 856,236,287 2023–24: 775,574,824
Science and innovation	571,844,107	915,358,454	2021–22: 657,519,661 2022–23: 764,747,109 2023–24: 829,601,909
Sector risk	794,201,282	2,313,629,368	2021–22: 1,719,540,364 2022–23: 1,768,648,596 2023–24: 2,300,585,983
Subtotal	1,685,229,683	4,045,176,261	2021–22: 3,261,416,006 2022–23: 3,389,631,992 2023–24: 3,905,762,716
Internal services	141,842,856	257,821,223	2021–22: 200,508,479 2022–23: 216,912,926 2023–24: 257,678,682
Total	1,827,072,539	4,302,997,484	2021–22: 3,461,924,485 2022–23: 3,606,544,918 2023–24: 4,163,441,399

Analysis of the past three years of spending

Actual spending was higher in 2022–23 compared to 2021–22 as it reflected increased support for the AgriInsurance and the AgriStability programs, as well as the Agricultural Climate Solutions Program and the Agricultural Clean Technology Program as part of the Emissions Reduction Plan. It also reflected spending under the new Wine Sector Support Program and increased spending for supply management initiatives: the Poultry and Egg On-Farm Investment Program and the Supply Management Processing Investment Fund. This was offset by a decrease under the AgriRecovery Program due to a reduced requirement for program support and the end of spending for COVID-19 initiatives.

Actual spending was higher in 2023–24 compared to 2022–23 as it reflected an increased requirement for support under the AgriInsurance, AgriStability, AgriRecovery and Advance Payments programs. It also reflected increased spending for the Supply Management Processing Investment Fund, the Poultry and Egg On-Farm Investment Program and the Agricultural Clean Technology and Agricultural Climate Solutions programs offset by reduced spending for the Dairy Direct Payment Program. The increase also reflects compensation adjustments due to the renewal of collective agreements.

More detailed financial information from previous years is available on the Finances section of GC Infobase.

Table 13 presents how much money AAFC plans to spend over the next three years to carry out its core responsibilities and for internal services.

Table 13: Planned three-year spending on core responsibilities and internal services (dollars)

Core responsibilities and internal services	2024–25 planned spendingNote 1	2025–26 planned spendingNote 1	2026–27 planned spendingNote 1
Domestic and International Markets	700,800,905	698,706,799	593,674,080
Science and Innovation	883,841,405	877,864,634	780,474,714
Sector Risk	1,980,539,152	1,973,729,896	1,973,615,763
Subtotal	3,565,181,462	3,550,301,329	3,347,764,557
Internal Services	176,842,212	177,578,605	175,461,172
Total	3,742,023,674	3,727,879,934	3,523,225,729

Analysis of the next three years of spending

The decrease in 2025–26 reflects a decrease in funding for the Youth Employment and Skills Program and the expiry of the African Swine Fever Preparedness Program at the end of 2024–25 as well as further spending savings as part of the refocusing government spending exercise.

The decrease in 2026–27 reflects a decrease in funding for the Dairy Direct Payment Program and for the Agricultural Clean Technology Program as well as the expiry of funding for the Fertilizer Program under the Emissions Reduction Plan. It also reflects further spending savings as part of the refocusing government spending exercise.

Information on the alignment of AAFC's spending with Government of Canada spending and activities is available on the Finances section of GC Infobase.

Funding - Spending and human resources

This section provides an overview of the Department's voted and statutory funding for its core responsibilities and for internal services. For further information on funding authorities, consult the Government of Canada budgets and expenditures.

Approved funding (statutory and voted) over a six-year period, ($)

Description of the above image

The above graph illustrates the actual spending for the years 2021-22 to 2023-24 and the planned spending for the years 2024-25 to 2026-27 broken down by Statutory, Voted and Total Spending.

Approved funding (statutory and voted), 2021-22 to 2026-27, in dollars

	2021–22	2022–23	2023–24	2024–25	2025–26	2026–27
Statutory	2,101,946,431	2,195,324,996	2,582,802,399	2,213,514,119	2,221,076,419	2,126,373,574
Voted	1,360,978,054	1,411,219,922	1,580,638,999	1,528,482,555	1,506,803,515	1,396,852,155
Total	3,461,924,485	3,606,544,918	4,163,441,399	3,742,023,674	3,727,879,934	3,523,225,729

Analysis of statutory and voted funding over a six-year period

Over the period 2021–22 to 2026–27, spending varies from a high of $4.2 billion spent in 2023–24 to a low of $3.5 billion spent in 2021–22. Agriculture and Agri-Food Canada'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.

• Statutory actual spending was higher in 2023–24 as it reflected an increased requirement for support under the AgriInsurance, AgriStability, AgriRecovery and Advance Payments programs.
• Statutory planned spending increases in 2025–26 due to increased funding for the Dairy Innovation and Investment Fund and then decreases in 2026–27 reflecting a decrease in funding for the Dairy Direct Payment Program.
• Voted actual spending was higher in 2023–24 compared to 2022–23 as it reflected increased spending for the Supply Management Processing Investment Fund, the Poultry and Egg On-Farm Investment Program and the Agricultural Clean Technology and Agricultural Climate Solutions programs. The increase also reflects compensation adjustments due to the renewal of collective agreements.
• The decrease in 2024–25 voted planned spending reflects that the extension of the Wine Sector Support Program and the Food Policy Initiatives (Local Food Infrastructure Fund) had not yet been approved to be reflected in the 2024–25 Departmental Plan. Funding for these initiatives will be reflected in the 2024–25 Supplementary Estimates, the 2024–25 Departmental Results Report and the 2025–26 Departmental Plan. The 2024–25 planned spending also reflects the winding down of the African Swine Fever Industry Preparedness Program and spending savings under the refocusing government spending exercise.
• The decrease in 2025–26 voted planned spending reflects a decrease in funding for the Youth Employment and Skills Program as well as further spending savings as part of the refocusing government spending exercise.
• The decrease in 2026–27 voted planned spending reflects a decrease in funding for the Agricultural Clean Technology Program as well as the expiry of funding for the Fertilizer Program under the Emissions Reduction Plan. It also reflects further spending savings as part of the refocusing government spending exercise.

For further information on AAFC's departmental voted and statutory expenditures, consult the Public Accounts of Canada.

Financial statement highlights - Spending and human resources

Agriculture and Agri-Food Canada's complete consolidated financial statements (unaudited) for the year ended March 31, 2024, are available online.

Table 14 summarizes the expenses and revenues for 2023–24 which net to the cost of operations before government funding and transfers.

Table 14: Condensed Statement of Operations (unaudited) for the year ended March 31, 2024 (dollars)

Financial information	2023–24 actual results	2023–24 planned results	Difference (actual results minus planned)
Total expenses	5,298,166,000	2,829,225,000	2,468,941,000
Total revenues	56,009,000	63,751,000	(7,742,000)
Net cost of operations before government funding and transfers	5,242,157,000	2,765,474,000	2,476,683,000

The 2023–24 planned results information is provided in Agriculture and Agri-Food Canada's Future-Oriented Statement of Operations and Notes 2023–24.

Table 15 summarizes actual expenses and revenues which net to the cost of operations before government funding and transfers.

Table 15: Condensed Statement of Operations (unaudited) for the year ended March 31, 2024 (dollars)

Financial information	2023–24 actual results	2022–23 actual results	Difference (2023–24 minus 2022–23)
Total expenses	5,298,166,000	3,213,422,000	2,084,744,000
Total revenues	56,009,000	64,164,000	(8,155,000)
Net cost of operations before government funding and transfers	5,242,157,000	3,149,258,000	2,092,899,000

Table 16 provides a brief snapshot of the department's liabilities (what it owes) and assets (what the department owns), which helps to indicate its ability to carry out programs and services.

Table 16: Condensed Statement of Financial Position (unaudited) as of March 31, 2024 (dollars)

Financial information	Actual fiscal year (2023–24)	Previous fiscal year (2022–23)	Difference (2023–24 minus 2022–23)
Total net liabilities	2,527,228,000	1,124,117,000	1,403,111,000
Total net financial assets	2,428,618,000	1,010,402,000	1,418,216,000
Departmental net debt	98,610,000	113,715,000	(15,105,000)
Total non-financial assets	491,411,000	481,363,000	10,048,000
Departmental net financial position	392,801,000	367,648,000	25,153,000

Human resources

- Spending and human resources

This section presents an overview of the Department's actual and planned human resources from 2021–22 to 2026–27.

Table 17 shows a summary of human resources, in full-time equivalents (FTEs), for AAFC's core responsibilities and for its internal services for the previous three fiscal years.

Table 17: Actual human resources for core responsibilities and internal services

Core responsibilities and internal services	2021–22 actual FTEs	2022–23 actual FTEs	2023–24 actual FTEsNote 1
Domestic and international markets	523	537	551
Science and innovation	2,631	2,622	2,601
Sector risk	442	415	414
Subtotal	3,596	3,574	3,566
Internal services	1,388	1,471	1,507
Total	4,984	5,045	5,073

Analysis of human resources over the last three years

The increase in full-time equivalents from 2021–22 to 2023–24 is due to staffing required to support service delivery improvements and modernization of agriculture science and technology initiatives, new programs to support dairy, poultry and egg supply-managed producers and processors; and the Wine Sector Support Program.

This was offset by the expiry of the Mandatory Isolation Support for Temporary Workers Program, as well as the expiry of funding for genomics, digitization and data mobilization of Agriculture and Agri-Food Canada biological collections at the end of 2021–22. It also reflected the expiry of funding for the Advance Agricultural Discovery Science and Innovation Initiative at the end of 2022–23.

Table 18 shows information on human resources, in full-time equivalents (FTEs), for each of AAFC's core responsibilities and for its internal services planned for the next three years. Human resources for the current fiscal year are forecasted based on year to date.

Table 18: Human resources planning summary for core responsibilities and internal services

Core responsibilities and internal services	2024–25 planned FTEsNote 1	2025–26 planned FTEs	2026–27 planned FTEs
Domestic and international markets	535	522	520
Science and innovation	2,617	2,616	2,598
Sector risk	395	394	394
Subtotal	3,547	3,532	3,512
Internal services	1,491	1,481	1,471
Total	5,038	5,013	4,983

Analysis of human resources for the next three years

The decrease in full-time equivalents in 2025–26 and 2026–27 is due to attrition and vacancy management as part of the refocusing government spending exercise, as well as reductions to funding for the Youth Employment and Skills Program in 2025–26 and the Agricultural Clean Technology Program in 2026–27.

Corporate information

Departmental profile

Appropriate minister: The Honourable Lawrence MacAulay

Institutional head: Lawrence Hanson, 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

Departmental contact information

Mailing address: Agriculture and Agri-Food Canada, 1341 Baseline Road, Ottawa, Ontario, K1A 0C5

Telephone: 1-855-773-0241

TTY: 613-773-2600

Fax: 613-773-1081

Email: aafc.info.aac@agr.gc.ca

Website: agriculture.canada.ca

Supplementary information tables

The following supplementary information tables are available on AAFC's website:

• Details on transfer payment programs
• Gender‑based analysis plus
• Response to Parliamentary committees and external audits

Information on AAFC's contributions to the United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals can be found in the 2023 to 2027 Departmental Sustainable Development Strategy.

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.

Definitions

appropriation (crédit)

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

budgetary expenditures (dépenses budgétaires)

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

core responsibility (responsabilité essentielle)

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 (plan ministériel)

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 (priorité)

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 (résultat ministériel)

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 (indicateur de résultat ministériel)

A quantitative measure of progress on a departmental result.

departmental results framework (cadre ministériel des résultats)

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

Departmental Results Report (rapport sur les résultats ministériels)

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

full-time equivalent (équivalent temps plein)

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) (analyse comparative entre les sexes plus (ACS Plus))

An analytical tool used to support the development of policies, programs and other initiatives and to access the impact of policies, programs and initiatives on different groups of women, men and gender-diverse people. GBA Plus is a process for understanding who is impacted by the issue or opportunity being addressed by the initiative; identifying how the initiative could be tailored to meet diverse needs of the people most impacted; and anticipating and mitigating any barriers to accessing or benefitting from the initiative. GBA Plus is an intersectional analysis that goes beyond biological (sex) and socio-cultural (gender) differences to consider other factors, such as age, disability, education, ethnicity, economic status, geography (including rurality), language, race, religion, and sexual orientation.

government-wide priorities (priorités pangouvernementales)

For the purpose of the 2023–24 Departmental Results Report, government-wide priorities are the high-level themes outlining the government's agenda in the November 23, 2021, Speech from the Throne: building a healthier today and tomorrow; growing a more resilient economy; bolder climate action; fight harder for safer communities; standing up for diversity and inclusion; moving faster on the path to reconciliation; and fighting for a secure, just and equitable world.

horizontal initiative (initiative horizontale)

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

Indigenous business (entreprise autochtones)

For the purpose of the Directive on the Management of Procurement Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses and the Government of Canada's commitment that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses, a department that meets the definition and requirements as defined by the Indigenous Business Directory.

non budgetary expenditures (dépenses non budgétaires)

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

performance (rendement)

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

performance indicator (indicateur de rendement)

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

plan (plan)

The articulation of strategic choices, which provides information on how a department 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 (dépenses prévues)

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 (programme)

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 (répertoire des programmes)

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

result (résultat)

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

statutory expenditures (dépenses législatives)

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 (cible)

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

voted expenditures (dépenses votées)

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