Quarterly Financial Report for the quarter ended September 30, 2024 (PDF version, 333 KB)
Introduction
Agriculture and Agri-Food Canada (AAFC) is the federal department responsible for the Canadian agriculture and agri-food sector. Agriculture is a shared jurisdiction in Canada, and our department works closely with provincial and territorial governments on the development and delivery of policies and programs. Along with these policies and programs, our research and technology helps farmers, food producers, and processors grow and develop the sector in order to succeed in Canadian and global markets.
Detailed information on Agriculture and Agri-Food Canada's program activities can be found in the Departmental Plan.
This quarterly financial report has been prepared as required by section 65.1 of the Financial Administration Act in the form and manner prescribed by the Treasury Board, and should be read in conjunction with AAFC's 2024-25 Main Estimates and Supplementary Estimates (A).
This report has not been subject to an external audit or review.
Basis of presentation
This quarterly report has been prepared using an expenditure basis of accounting. The accompanying statement of authorities includes the Department's spending authorities granted by Parliament, and those used by the Department consistent with the 2024-25 Main Estimates, as well as the Supplementary Estimates (A) available for use during the 2024-25 fiscal year. This quarterly report has been prepared using a special-purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.
The authority of Parliament is required before money can be spent by the Government of Canada. Approvals are given in the form of annually approved limits through appropriation acts, or through legislation in the form of statutory spending authority for specific purposes.
The Department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
Highlights of fiscal quarter and fiscal year-to-date results
This quarterly financial report reflects the results of the current fiscal period in comparison to the authorities approved by Parliament, as well as budget adjustments approved by Treasury Board up to September 30, 2024.
The following table provides a comparison of total authorities available for use and year-to-date expenditures for the second quarter of the current and previous fiscal year.
Comparison of total authorities available for use and total year-to-date expenditures for the quarter ended September 30 of fiscal years 2024-25 and 2023-24
| All votes and statutory authorities (in millions of dollars) |
2024-25 | 2023-24 |
|---|---|---|
| Total authorities available for use | 3,881 | 3,489 |
| Total year-to-date expenditures | 1,157 | 723 |
| Utilization | 30% | 21% |
A. Significant changes to authorities
The following table provides a comparison of authorities by Vote for the second quarter of the current and previous fiscal year.
Comparison of total authorities as of September 30 of fiscal years 2024-25 and 2023-24
| Authorities (in millions of dollars) |
2024-25 | 2023-24 | Variances |
|---|---|---|---|
| Vote 1 — Net Operating Authorities | 680 | 668 | 12 |
| Vote 5 — Capital Authorities | 74 | 52 | 22 |
| Vote 10 — Grants and Contributions | 855 | 855 | 0 |
| Budgetary statutory authorities | 2,272 | 1,913 | 359 |
| Total Authorities | 3,881 | 3,489 | 392 |
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Note: Totals may not add up due to rounding. |
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As of the end of the second quarter of fiscal year 2024-25, authorities of $3,881 million are 11% or $392 million higher than the same quarter last year due to the following changes:
- Statutory funding increased by $359 million primarily due to $290 million in new funding for the Dairy Direct Payment Program and the Dairy Innovation and Investment Fund. Additionally, there was a $45 million funding increase under the Agricultural Marketing Programs Act resulting from the increased interest-free loan limit for the Advanced Payments Program.
- Vote 5 — Capital funding increased by $22 million, mainly due to much higher funding for various real property projects under the Laboratory Asset Renewal initiative.
- Vote 1 — Operating funding increased by $12 million, driven by a $40 million increase in collective bargaining obligations, partially offset by a $13 million funding reduction as part of the Budget 2023 Refocusing Government Spending exercise and an $11 million funding decrease in the Operating Budget Carry Forward.
B. Significant changes in year-to-date expenditures
The following table provides spending comparisons by Vote for the second quarter of the current and previous fiscal year.
Comparison of year-to-date expenditures for the quarter ended September 30 of fiscal years 2024-25 and 2023-24
| Expenditures (in millions of dollars) |
2024-25 | 2023-24 | Variance |
|---|---|---|---|
| Vote 1 — Net Operating expenditures | 327 | 316 | 11 |
| Vote 5 — Capital expenditures | 13 | 12 | 1 |
| Vote 10 — Grants and Contributions expenditures | 239 | 153 | 86 |
| Budgetary statutory expenditures | 578 | 242 | 336 |
| Total Net Budgetary Expenditures | 1,157 | 723 | 434 |
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Note: Totals may not add up due to rounding. |
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As of the end of the second quarter of fiscal year 2024-25, expenditures of $1,157 million are 60% or $434 million higher than the same quarter last year due to the following changes:
- Statutory Expenditures increased by $336 million, primarily due to a $295 million rise in AgriInsurance program expenditures. This variance is attributed to the timing of claims received.
- Vote 10 — Grants and Contributions expenditures increased by $86 million, driven by higher spending in the Poultry and Egg On-Farm Investment Program, Sustainable Canadian Agricultural Partnership, and Agricultural Clean Technology Program. The Poultry and Egg program rose by $22 million due to earlier payments, while the Sustainable Canadian Agricultural Partnership increased by $31 million due to claim timing. Agricultural Clean Technology saw a $13 million rise from higher demand as it nears its final year.
- Vote 1 — Net Operating Expenditures increased by $11 million, primarily from a $21 million rise in salary costs from collective bargaining, offset by a $9 million increase in vote-netted revenue due to the timing of billing.
Risks and uncertainties
Agriculture and Agri-Food Canada continues to exercise prudent management and oversight in implementing its policies and delivering its programs. The Department has established an integrated process to identify, assess, monitor, and respond to a variety of strategic and operational risks to facilitate decision-making and priority setting, and to contribute to more effective delivery and efficient use of resources.
The department continues to remain vigilant and prepare for risks, situations and events impacting its operating environment. Departmental mitigations are in place to manage the risks facing AAFC's people and processes to ensure we can attract, develop and retain a diverse, high-performing, qualified workforce (Our People); adapt our processes and workplace in a way that maximizes the benefits of a hybrid workforce (Our Workplace); as well as effectively navigate financial pressures and ensure scarce resources are allocated to areas of greatest importance (Prioritization and Oversight).
Departmental mitigations are also in place to manage longer-term impacts, including those related to technology and infrastructure, and external events. These include the ability to effectively prevent, detect, contain or respond to cyber security threats that may affect its operations, systems and information (Cyber Security); ensuring that laboratories and other critical infrastructure can be maintained or recapitalized, in support of leading-edge, sustainable, safe and secure scientific and operational activities (Critical Infrastructure); and ensuring the department can modernize its digital infrastructure in an appropriate and timely fashion to adequately support a secure, data-enabled business model and efficient operations (Digital Modernization for Data-enabled Services & Decisions).
They also include the ability of AAFC's policy directions, program solutions and scientific activities to adequately respond to the climate and environmental threats facing the agricultural sector (Climate and Sustainability); and managing major disruptive industry and market crises (Economic and Market Disruption).
AAFC will continue to closely monitor its environment and operations in order to ensure that resources are being managed effectively to deliver expected results and/or to reallocate resources to key priorities, as necessary.
Significant changes in relation to personnel and programs
Personnel
On September 9, 2024, Nasser Alsukayri was appointed as Chief Information Officer of AAFC.
Programs
There have been no significant changes in relation to programs
Approval by senior officials
Approved by:
Original signed by
Lawrence Hanson, Deputy Minister
Ottawa, Canada
Original signed by
Marie-Claude Guérard, Chief Financial Officer
Ottawa, Canada
| Fiscal year 2024-25 | Fiscal year 2023-24 | |||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending March 31, 2025Table 1 Footnote 1 | Used during the quarter ended September 30, 2024 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2024Table 1 Footnote 1 | Used during the quarter ended September 30, 2023 | Year to date used at quarter-end | |
| Vote 1 — Net Operating expenditures | 680,350 | 166,214 | 327,090 | 667,819 | 165,512 | 315,944 |
| Vote 5 — Capital expenditures | 73,901 | 9,033 | 13,300 | 51,844 | 8,033 | 11,726 |
| Vote 10 — Grants and contributions | 854,515 | 154,863 | 238,732 | 855,473 | 121,196 | 153,314 |
| Budgetary statutory authorities Table 1 Footnote 2 | 2,271,899 | 490,921 | 577,726 | 1,913,447 | 203,076 | 241,752 |
| Total Budgetary authorities | 3,880,665 | 821,031 | 1,156,848 | 3,488,584 | 497,817 | 722,737 |
| Total authorities | 3,880,665 | 821,031 | 1,156,848 | 3,488,584 | 497,817 | 722,737 |
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Notes: Totals may not add due to rounding. |
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| Fiscal year 2024-25 | Fiscal year 2023-24 | |||||
|---|---|---|---|---|---|---|
| Planned expenditures for the year ending March 31, 2025 | Expended during the quarter ended September 30, 2024 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2024 | Expended during the quarter ended September 30, 2023 | Year to date used at quarter-end | |
| Expenditures: | ||||||
| Personnel | 607,542 | 152,486 | 311,105 | 586,099 | 148,462 | 281,693 |
| Transportation and communications | 7,641 | 2,261 | 4,059 | 3,961 | 2,206 | 3,851 |
| Information | 11,808 | 959 | 2,244 | 12,614 | 944 | 2,293 |
| Professional and special services | 119,650 | 22,985 | 38,257 | 136,180 | 24,537 | 43,090 |
| Rentals | 11,649 | 1,330 | 6,411 | 9,826 | 1,796 | 7,211 |
| Repair and maintenance | 17,195 | 3,241 | 5,199 | 13,220 | 2,553 | 3,818 |
| Utilities, materials and supplies | 57,187 | 8,551 | 15,488 | 53,242 | 8,164 | 14,615 |
| Acquisition of land, buildings and works | 24,879 | 4,086 | 5,660 | 39,721 | 7,427 | 11,304 |
| Acquisition of machinery and equipment | 36,672 | 4,644 | 7,307 | 39,721 | 7,427 | 11,304 |
| Transfer payments | 3,039,680 | 626,167 | 777,833 | 2,671,177 | 306,883 | 362,082 |
| Other subsidies and payments | 9,074 | 6,260 | 6,497 | 9,290 | 1,487 | 3,345 |
| Total gross budgetary expenditures | 3,942,977 | 832,971 | 1,180,059 | 3,548,502 | 507,725 | 736,607 |
| Less Revenues netted against expenditures: | ||||||
| Vote-netted revenues | 62,312 | 11,939 | 23,210 | 59,918 | 9,908 | 13,870 |
| Total net budgetary expenditures | 3,880,665 | 821,031 | 1,156,848 | 3,488,584 | 497,817 | 722,737 |
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Note: Totals may not add due to rounding. |
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Annex A
| Fiscal year 2024-25 | Fiscal year 2023-24 | |||||
|---|---|---|---|---|---|---|
| Planned expenditures for the year ending March 31, 2025 | Expended during the quarter ended September 30, 2024 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2024 | Expended during the quarter ended September 30, 2023 | Year to date used at quarter-end | |
| Contributions to employee benefit plans | 71,643 | 17,753 | 35,506 | 82,485 | 14,701 | 29,403 |
| Minister of Agriculture and Agri-Food — Salary and motor car allowance | 99 | 25 | 49 | 95 | 32 | 47 |
| Contribution payments for the AgriStability program | 339,658 | (11,304) | (24,287) | 339,658 | (3,350) | (14,366) |
| Contribution payments for the AgriInsurance program | 1,033,783 | 375,298 | 397,290 | 1,033,783 | 97,692 | 102,334 |
| Grant payments for the AgriInvest program | 153,974 | 59,243 | 100,302 | 124,463 | 62,460 | 93,219 |
| Payments in connection with the Agricultural Marketing Programs Act | 160,183 | 36,574 | 52,658 | 113,300 | 28,982 | 31,436 |
| Grant payments for the AgriStability program | 52,063 | 99 | 545 | 52,063 | - | - |
| Contribution payments for the AgriInvest program | 19,779 | 10,978 | 12,053 | 16,711 | - | - |
| Loan guarantees under the Canadian Agricultural Loans Act | 13,111 | - | 425 | 13,111 | - | 279 |
| Contributions in support of the Assistance to the Pork Industry Initiative | - | - | (2,814) | - | - | (4,034) |
| Grants to agencies established under the Farm Products Agencies Act | 100 | - | - | 100 | - | - |
| Contribution payments for the Agricultural Disaster Relief Program (ADRP)/AgriRecovery | 118,513 | 62 | 2,595 | 118,513 | (94) | (94) |
| Contribution payments for the Livestock Price Insurance program (Farm Income Protection Act) | 4,000 | 358 | 358 | 4,000 | - | - |
| Canadian Pari-Mutuel Agency Revolving Fund | 1,848 | 198 | (188) | 2,018 | 535 | 333 |
| Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | 13,145 | 1,641 | 3,258 | 13,146 | 2,121 | 3,202 |
| Grant payments for the Canadian Agricultural Income Stabilization program Inventory Transition Initiative | - | - | - | - | - | - |
| Contribution payments for the Canadian Agricultural Income Stabilization program Inventory Transition | - | (2) | (7) | - | (1) | (4) |
| Grant Payments Related to the Dairy Direct Payment Program | 290,000 | - | - | - | - | - |
| Budgetary statutory authorities | 2,271,899 | 490,921 | 577,726 | 1,913,447 | 203,076 | 241,752 |
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Note: Totals may not add due to rounding. |
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