2022–2023 Departmental Results Report

2022–2023 Departmental Results Report (PDF version, 1,7 KB)

International Standard Serial Number: 2560-9505

Agriculture and Agri-Food Canada

The Honourable Lawrence MacAulay
Privy Councillor, Member of Parliament
Minister of Agriculture and Agri-Food

From the Minister

The women and men who work in Canada's agriculture and food sector put the food on our tables — and a whole lot more. All told, they drive $143.8 billion of our gross domestic product (GDP) and provided one in nine jobs in Canada, employing approximately 2.3 million people.

Thanks to their passion, dedication, and hard work, the sector continues to grow year after year, and 2022–23 was no exception. In 2022, Canada's agri-food and seafood exports increased over 12% to reach almost $93 billion — quite an accomplishment given the historic challenges faced by farmers, including extreme weather, high input prices, livestock disease, the impacts of Russia's war against Ukraine, and more.

In 2022–23, our team at Agriculture and Agri-Food Canada (AAFC) continued working hard to help producers and processors support a more profitable, sustainable, and competitive Canadian agriculture and agri-food sector.

It was a pivotal year, with the end of the five-year Canadian Agricultural Partnership (2018–23) and the launch of the new Sustainable Canadian Agricultural Partnership (Sustainable CAP), in effect from 2023 to 2028. Backed by a federal-provincial-territorial investment of $3.5 billion — a 25% increase in cost-shared programming from the previous framework — Sustainable CAP will help Canada continue to be recognized as a world leader in sustainable agriculture and agri-food production, and help farmers to continue to feed the world while strengthening their resilience to climate change.

Sustainable CAP will build on federal investments of $1.5 billion to help farmers reduce their emissions and increase their competitiveness — including through our collaborative Living Labs model, bringing together farmers and researchers in the field to co-develop sustainable practices that work on the farm. We launched the first Indigenous-led living lab in 2022–23, under the Agricultural Climate Solutions Program, working to improve the environment, while committing to the protection of Indigenous values, treaties, communities, lands, and resources.

To chart a roadmap for continued progress on the environment, the Department began consultations on our first-ever Sustainable Agriculture Strategy, guided by a wide range of experts through the advisory committee.

On the international stage, we continued to work hard to help our farmers and food processors to increase and diversify their sales, while meeting the world's growing demand for sustainable food. We refreshed our Canada Brand, including a new digital toolkit to help exporters amplify the Canadian difference to their global customers, and announced the development of our first-ever regional agriculture trade office in the Indo-Pacific region, to strengthen ties in this fast-growing region.

The Department continued to pursue new trade agreements with key growth markets, including India, Indonesia, and the Association of Southeast Asian Nations, and to assess accession candidates to the Comprehensive and Progressive Trans-Pacific Partnership. In addition, we advanced Canadian agriculture interests in bilateral negotiations with the United Kingdom. And we continued working closely with Global Affairs Canada and the Canadian Food Inspection Agency to remove non-tariff barriers to trade, resulting in successes such as the full restoration of our beef trade in Japan, Guatemala, and enhanced access in Taiwan.

We also continued to support a strong supply management system in 2022–23, with a new commitment of $1.7 billion to compensate dairy, poultry, and egg producers and processors for the impacts of the Canada—United States—Mexico Agreement. This investment will drive innovation and growth, bringing our total compensation package to $4.8 billion.

Continuing our work to engage on pressures facing the food supply chain, we supported the efforts to develop Canada's first Grocery Code of Conduct to the benefit of both industry and consumers. As well, ongoing initiatives under the Food Policy for Canada helped to enhance local food systems, find solutions to food waste and create community-based solutions for food security challenges.

We also continued to support a competitive and sustainable sector through investments in scientific research and innovative solutions on the farm and through the value chain, guided by our new ten-year Strategic Plan for Science. Our scientists continued to develop new crop varieties that are resistant to drought, pests, and disease, helping to boost production sustainably. In addition, our Agricultural Clean Technology Program and On-Farm Climate Action Fund helped thousands of farmers across Canada to adopt greener technologies such as solar energy, and greener practices such as cover crops.

In 2022–23, Canadian farmers faced extreme weather events, including Hurricane Fiona in Atlantic Canada, and droughts in central and Western Canada. To help farmers manage the severe financial risks they faced, we unlocked new benefits from our Businesses Risk Management programs, allowing producers to access larger up-front payments from AgriStability; defer their taxes on livestock sales; and cope with high input costs through an increased interest-free portion of the Advance Payments Program.

To help livestock producers manage the real risk of animal disease they face, we launched a new program to help Canadian pork producers take steps to prepare for the possibility of African Swine Fever entering the country, and continued to engage with key partners to strengthen overall emergency management preparedness in agriculture.

It's been a busy year, and I thank our team at AAFC, our provincial-territorial partners throughout Canada, and all stakeholders for your hard work and dedication. Our accomplishments over 2022–23 will help us continue to build a more profitable, sustainable, and resilient Canadian agriculture and agri-food sector for the good of our farmers, our sector, and our nation.

The Honourable Lawrence MacAulay
Privy Councillor, Member of Parliament
Minister of Agriculture and Agri-Food

Results at a glance

The Canadian agriculture and agri-food system, from producers and processors to food retail and foodservice providers, is a complex and integrated supply chain that brings significant benefits at both provincial-territorial and national levels. The sector is an important driver of exports and is key to supporting Canada's future economic growth. In 2022, the agriculture and agri-food sector generated $143.8 billion of Canadian gross domestic product and employed approximately 2.3 million people.

Among the factors contributing to the success of the sector in 2022–23 were increased domestic and international consumer demand, higher food prices, and preferential market access. The recovery of Canadian crop production from the devasting weather-related conditions experienced in 2021, and a rebound in manufacturing and foodservices following the loosening of pandemic-related restrictions, also served to boost sector growth. By contrast, new waves of global protectionism, the impacts of Russia's war against Ukraine, and the lingering effects of the pandemic were among the disruptions affecting the sector's production and trading patterns. As a result, farmers and producers have faced significant increases in feed, fuel, and fertilizer prices which has led to a rise in their operating expenses. These increases directly impact Canadians as food costs and food insecurity grows, particularly among lower-income households and Indigenous Peoples.

In 2022–23, Agriculture and Agri-Food Canada (AAFC) continued working to respond to evolving stakeholder needs, and create conditions for the long-term profitability, sustainability, and adaptability of the Canadian agriculture and agri-food sector. Departmental efforts were undertaken in close collaboration with key partners such as other federal departments, portfolio organizations, provincial and territorial governments, industry stakeholders, underrepresented and marginalized groups, and academic institutions. Departmental results achievements in 2022–23 aligned with commitments from the Minister of Agriculture and Agri-Food's mandate letter, broader Government of Canada priorities — including with respect to economic growth, climate resiliency, and supporting diversity — and the Department's three core responsibilities. The total resources utilized by the Department in 2022–23 are as follows:

Total actual spending	Total actual full-time equivalents
$3,606,544,918	5,045

Developed and launched the Sustainable Canadian Agricultural Partnership policy framework

Agriculture is a shared responsibility in Canada between federal, provincial, and territorial (FPT) governments. The Canadian Agricultural Partnership (CAP) policy framework was a five-year, $3-billion investment that concluded on March 31, 2023. The programs and initiatives under CAP served to advance the framework's priorities including: growing trade and expanding markets; the innovative and sustainable growth of the sector; and supporting diversity and a dynamic, evolving sector. As the fourth agriculture policy framework, CAP continued to demonstrate the value of the coordinated and collaborative approach among FPT governments to effectively support the sector's evolving needs.

Throughout 2022–23, FPT governments worked together to finalize and launch the new Sustainable Canadian Agricultural Partnership (Sustainable CAP), in effect from April 1, 2023 to March 31, 2028. Sustainable CAP reflects a shared FPT vision for Canada to be recognized as a world leader in sustainable agriculture and agri-food production — one that fosters resiliency and growth in the food supply chain, addresses the challenges of climate change, and meets the expectations of a growing global population. Like its predecessor, Sustainable CAP includes both federal-only programs and activities, as well as programs that are cost-shared between the federal and provincial and territorial governments, designed to address the specific needs in each jurisdiction. Sustainable CAP programs advance the following five priority areas: climate change and the environment; science, research and innovation; market development and trade; building sector capacity, growth, and competitiveness; and resiliency and public trust.

Strengthened sector competitiveness at home and abroad

With over half of the value of Canadian agricultural production exported, the growth of the sector relies on its ability to sell products abroad. The agricultural operating environment has evolved greatly in recent years, with increasing global demand for agricultural products offering opportunities for export growth. However, these opportunities are also significantly impacted by domestic conditions as well as the interests and actions of key trading partners. The agriculture industry faced new domestic and international market challenges including demands for environmental and sustainability attributes in food production, increasing protectionism and non-tariff barriers to trade, and shifting consumer preferences. Through a comprehensive offering of trade advocacy, market access, and market development initiatives, the Department continued supporting the sector to strengthen its competitiveness at home and abroad.

For example, the opening of the new Indo-Pacific Agriculture and Agri-Food Office in 2023 will enable the expansion of trade, investment, and supply chain resilience with partners in the Indo-Pacific region. To help raise awareness and increase sales of Canadian agricultural products, AAFC refreshed the Canada Brand program, which now includes enhanced digital tools to further expand product recognition and showcase Canada's diverse range of high-quality products to global consumers. The Department also continued to implement existing trade agreements, while advancing negotiations in pursuit of new ones to the benefit of the Canadian agricultural sector. Overall, AAFC's efforts in 2022–23 continued to prioritize working with international, industry, and government partners to help the agriculture and agri-food sector capitalize on opportunities and overcome market challenges, while ensuring that departmental programs and services continue to meet the needs of industry and Canadians. The Department's efforts related to domestic and international markets advance Government of Canada trade objectives by diversifying exports and supporting continued economic growth.

Supported environmental sustainability and sector resiliency

Agriculture plays a key role in meeting the Government of Canada's commitments related to clean growth and climate resiliency. Canadian agricultural production is intensifying in response to growing global food demand, resulting in increasing pressure on local resources. It is to the benefit of the sector to build and protect these resources, while translating market requirements into more sustainable choices for consumers. Guided by its new Strategic Plan for Science, launched in 2022, the Department's scientific research increases the Canadian agriculture and agri-food knowledge base and productivity; strengthens the sector's innovation, profitability, and competitive advantage; and enhances environmental sustainability, resilience, and performance. In 2022–23, AAFC continued to support farmers in developing practices to address climate change and increase resiliency, while building on efforts underway to meet federal emissions reduction targets. Under the Agricultural Climate Solutions Program, the Living Labs stream continued to establish projects as part of its Canada-wide network, with an emphasis on co-developing on-farm climate solutions and addressing environmental concerns together with the sector, while the On-Farm Climate Action Fund supported farmers to adopt beneficial management practices that store carbon and reduce greenhouse gases, including those that come from synthetic fertilizer. The sector also benefitted from programs such as the Agricultural Clean Technology Program, which continued to enable the development and adoption of new and innovative technologies to achieve improved environmental outcomes.

Recent years have highlighted the significant impact that the increasing number of extreme weather events can have on the entire food supply chain, including food production and agricultural operations in Canada. In addition to the adoption of innovative and beneficial management practices, the effective implementation of a suite of Business Risk Management (BRM) tools is essential for producers when faced with such risks, to ensure the viability of their operations. In collaboration with provincial and territorial governments and industry, and in line with the Minister of Agriculture and Agri-Food's mandate letter commitments, AAFC continued to deliver and make targeted improvements to Business Risk Management programs in 2022–23, both under the Canadian Agricultural Partnership, and in preparing for the new Sustainable CAP. The Department advanced efforts to ensure that BRM programming is timely, equitable, easy to understand, and supports the competitiveness, sustainability, and resilience of the sector, including with respect to changing climate conditions.

Focused on diversity, equity, and inclusion

In 2022–23, AAFC continued to explore and implement ways to enhance diversity, equity, inclusion, accessibility, and reconciliation through its programs and services for the agriculture and agri-food sector. The Sector Engagement Tables continued to foster engagement with women, youth, and Indigenous Peoples, while the AgriDiversity Program supported the participation of underrepresented and marginalized groups across the agricultural value chain. In support of the Government of Canada's commitments, AAFC is also advancing reconciliation with First Nations, Inuit, and Métis Peoples through partnerships, programs, and services that support Indigenous-led agriculture. For instance, the first Indigenous-led living lab was established in Saskatchewan under the Agricultural Climate Solutions Program, advancing the common goal of tackling the climate change crisis and improving the environment, while committing to the protection of Indigenous values and resources. In addition, the Department also constructed and opened a ceremonial lodge in Ottawa in 2022, the Mikinàk, as a gathering space for Indigenous employees and community members. In developing the Sustainable CAP, FPT governments committed to continue efforts to understand and address barriers to sector participation, build in considerations for the needs of underrepresented and marginalized groups in agriculture, and further strengthen relationships with Indigenous Peoples.

As an employer, AAFC strives to establish a culture that values diversity, combats racism, and addresses systematic barriers, while being inclusive in its hiring practices. Employee engagement and awareness networks, training resources, staffing process pilots, and the implementation of its Diversity, Equity and Inclusion Plan (2022–2025), are among the ongoing departmental efforts taken in 2022–23. AAFC continued to enhance awareness and cultural appreciation of First Nations, Inuit, and Métis Peoples through its Indigenous Support and Awareness Office, and conducted outreach to encourage the recruitment and retention of Indigenous students and professionals into the public service. As part of its science capacity renewal, AAFC is committed to addressing representation gaps in its workforce, especially for women, Indigenous Peoples, and people with disabilities. The Department has also fully implemented new tools such as the Government of Canada Workplace Accessibility Passport to support inclusion. AAFC remains committed to modernizing and strengthening its workforce, and enhancing sector participation in a way that truly reflects Canada's diversity by supporting Indigenous Peoples and other underrepresented and marginalized groups, including women, youth, persons with disabilities, racialized persons, 2SLGBTQI+ communities, and official language minority communities.

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

Results: what we achieved

Core responsibilities

Domestic and international markets

Description: Agriculture and Agri-Food Canada (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.

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

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

Results highlights

- Domestic and International Markets

Domestic and international markets are critical to the prosperity of the Canadian agriculture and agri-food sector. Agriculture and Agri-Food Canada (AAFC) continues supporting the sector to enhance its competitiveness, seize the opportunities presented by global markets, and expand and diversify exports, including through: market development initiatives; targeted advocacy and engagement; trade negotiations; and market access efforts. In 2022–23, the value of agriculture, agri-food, and seafood exports surpassed the target set for 2025, largely due to high international market prices and increased demand from both key trading partners and emerging markets. The agriculture and agri-food sector also overcame various disruptions and unpredictability in the economic environment as a result of Russia's war against Ukraine, interest rate increases, and ongoing pandemic-related supply disruptions.

Departmental efforts related to Domestic and International Markets serve to advance the Government of Canada's trade agenda and its overall priority for economic growth. In addition to helping to position the sector for success in 2022–23, AAFC advanced the commitments in the Minister of Agriculture and Agri-Food's mandate letter related to the Food Policy for Canada, and working with supply-managed sectors to provide full and fair compensation with respect to the Canada-United States-Mexico Agreement (CUSMA).

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

The agriculture and agri-food sector continues to be a cornerstone of the Canadian economy. In 2022, the sector provided 1 in 9 jobs in the country, employed approximately 2.3 million people, and generated $143.8 billion of Canada's gross domestic product (GDP). Fewer pandemic-related restrictions in the foodservices sector and the recovery of crop production following the droughts in 2021, helped sector GDP increase by about 7% in 2022 from the previous year. Similarly, the rebounding of employment in food manufacturing and foodservices contributed to a rise in the sector's employment by around 4% in 2022 from the employment level in 2021. Agri-food and seafood exports totaled $92.8 billion in 2022, representing an increase of over 12.6% from 2021. The economic performance of the agriculture and agri-food sector reached a compound annual growth rate of 1.8% between 2017 and 2023, demonstrating a significant increase over the previous year.

Despite these successes, Canadian producers continued to face obstacles due to ongoing pandemic-related challenges, and disruptions such as Russia's war against Ukraine, resulting in increased production costs. AAFC continued to work with other federal departments, provinces and territories, and industry stakeholders across the country to help the agriculture and agri-food sector leverage market opportunities in support of achieving results. The Department's ongoing efforts to diversify Canadian agricultural trade through market development initiatives align with the Government of Canada's Export Diversification Strategy, and contributed to the growth of Canadian agriculture and agri-food exports in 2022–23.

AAFC supports the agriculture and agri-food sector through a suite of market development tools and services to enhance market diversification and trade opportunities. The Agriculture and Food Trade Commissioner Service, which consists of 40 agri-food trade specialists in 16 markets, provides exporters with in-market intelligence regarding new business opportunities in potential foreign markets. The Department also continued to provide focused analysis and exporter guides for Canadian companies eager to export to new markets. AAFC's presence abroad delivered more than 3,800 services in 2022–23, spanning the pursuit of new opportunities, aiding economic outcomes, and advancing the resolution of market access issues for Canadian exporters.

In 2022–23, in collaboration with provincial partners and trade commissioners, AAFC supported over 50 in-person, online, and hybrid market development promotions in nine priority markets: the United States, Mexico, the European Union, China, India, the United Arab Emirates, Japan, South Korea, and South-East Asia. Activities included delivering six flagship trade shows with Canadian companies, which reported $206 million in sales, along with two pilot trade shows in the Indo-Pacific region. Additional activities were also held to support small- and medium-sized exporters in leveraging emerging opportunities abroad, including at restaurants and leading retail chains, and on e-commerce platforms such as Amazon India. Despite the challenges in exploring new international markets as an ongoing result of the pandemic, investing in these efforts remains critical for the sector's future success and contribute to improving global food security.

Through the AgriMarketing Program, AAFC worked with the agriculture and agri-food sector to expand its market prospects both domestically and internationally, through industry-led promotional activities to showcase Canadian products and producers. In 2022–23, the program provided almost $20 million to support 310 market development activities mainly in North America, Europe, and Asia. Examples include a project to further grow the Canadian-made wine market, and another focused on expanding Canadian seafood exports internationally. In addition, to bolster licensed Canadian wineries as they adapt to ongoing and emerging challenges, AAFC launched the Wine Sector Support Program in 2022–23, which will contribute up to $166.2 million over two years. This short-term financial support is intended to help wine producers to remain competitive and strengthen the future of the sector in domestic and international markets.

In February 2023, AAFC launched a refresh of the Canada Brand program, providing industry, trade commissioners, and provincial colleagues with digital marketing tools to help raise awareness and increase sales of Canadian agricultural products. The update showcases Canada's diverse range of products, and helps consumers recognize Canadian food and beverage products around the world.

To advance the sector's competitive position and support economic growth, AAFC strives to maintain purposeful dialogue between agriculture and agri-food leads and governments. In this context, the Sector Engagement Tables (SETs) held 16 meetings in 2022–23, and saw the launch of new commodity-specific tables on Horticulture and Animal Protein, complementing the four existing thematic tables that examine implementing solutions to cross-cutting issues. A leadership table serves as a focal point to guide the work of all engagement fora in the SET model, including other forums such as the Canadian Agricultural Youth Council, and the Canadian Food Policy Advisory Council.

As one of the few Government of Canada platforms for young people to contribute to headline issues, the Canadian Agricultural Youth Council continued to represent the future generation of food and farming professionals. The mandate concluded for the first cohort in June 2022, and members of the second cohort were announced in 2022–23, including a diverse mix of individuals from subsectors across the agriculture and agri-food sector. Members provided advice and shared information on various topics and departmental initiatives, including the new Sustainable Canadian Agricultural Partnership policy framework (2023–28), the Sector Engagement Tables, and the design of the AgriCommunication Program.

The Department also engaged with numerous stakeholders in preparation for potential crises that may affect Canada's integrated food system. In 2022–23, AAFC supported the creation of a national emergency preparedness and response plan, and established the Food System Emergency Management Working Group as a means to strengthen the collective emergency management capacity of federal, provincial, and territorial governments. The Department also re-established the Food Sector Network, which allows for engagement with industry stakeholders across the food supply chain on issues such as sector-specific risks and mitigation strategies.

AAFC continued to analyze and engage on issues throughout the food supply chain by expanding the Department's traditional focus on primary agriculture and food processing, and to recognize the importance of retail and foodservice companies in the broader food system. In 2022–23, AAFC continued to support the industry-led development of Canada's first-ever Grocery Code of Conduct, and the Minister of Agriculture and Agri-Food renewed the mandate for the Crop Logistics Working Group to find solutions to grain supply chain issues. Including in collaboration with Transport Canada, the Department engaged stakeholders, such as railways, ports, grain companies and industry associations, to understand challenges for helping ease the movement of goods across Canada's transportation networks.

In support of economic growth, AAFC actively promotes and defends Canada's trade interests, including the supply-managed sector, which has created over 100,000 jobs in production and processing activities. The Department continued to deliver on the Government of Canada's commitment to support the dairy, poultry, and egg processing sectors in adapting to market changes resulting from free trade agreements, such as the Canada–European Union Comprehensive Economic and Trade Agreement (CETA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Through the 2022 Fall Economic Statement, a further $1.7 billion was committed and will be distributed to supply-managed sectors, beginning in 2023–24, for the impacts of the Canada-United States-Mexico Agreement (CUSMA). This investment will bring total compensation up to $4.8 billion for Canada's supply-managed sectors.

In 2022–23, the Department launched a new Supply Management Processing Investment Fund to support processors of supply-managed commodities to invest in new equipment and technologies. In its first year, the Fund approved $60 million in support of various projects, such as the adoption of sophisticated processing equipment or automated manufacturing and packaging technology, that will increase productivity while reducing the operations' environmental footprint. Both the Dairy Farm Investment Program and the Dairy Processing Investment Fund were extended to March 31, 2023, allowing for producers and processors to complete projects after facing delays associated to the pandemic. The Department's programs for supply-managed sectors, as outlined below, continued to help drive innovation and economic growth in 2022–23, while advancing the Minister's mandate letter commitment to deliver fair and broad compensation to supply-managed sectors for the impacts of free trade agreements.

• The Dairy Direct Payment Program provided payments to over 9,300 farmers, totalling over $458 million.
• The Dairy Farm Investment Program, which ended on March 31, 2023, supported over 3,400 farmers by committing $228 million towards investments in farm operations to improve productivity.
• The Dairy Processing Investment Fund, which ended on March 31, 2023, funded a total of 103 projects, valued at $86 million, to help processors improve their productivity and competitiveness.
• The Poultry and Egg On-Farm Investment Program approved up to $73.5 million for 518 projects — for instance, the construction of new facilities or equipment upgrades — that will help producers to increase efficiency or productivity, respond to consumer preferences, or improve on-farm safety, biosecurity, or environmental sustainability.
• The Market Development Program for Turkey and Chicken approved $6 million in multi-year projects for two industry associations to support the sector's market position through promotional activities.

In 2022–23, the Department continued to deliver on initiatives under the Food Policy for Canada. The Local Food Infrastructure Fund supports a wide range of community-led projects that aim to boost access to healthy, safe, and culturally diverse food. Budget 2023 included an additional $10 million for the Fund, for a total investment of $70 million, to further strengthen local food systems across the country. In 2022–23, the Fund launched a new phase, with up to $20 million in support for community-based and not-for profit organizations in their efforts to create long-term solutions to address food security challenges. A total of 79 infrastructure projects were funded to create or expand a portion of an entire food system. In communities that experience the highest food insecurity, these projects aim to have both an immediate and long-lasting impact. The Government of Canada is committed to working with community-based food security organizations to ensure they have access to the necessary tools going forward, and to meet the increasing needs of people grappling with food insecurity in Canada. In addition, the AgriCommunication Program provided a total of $2.8 million in support of 18 projects to raise consumer appreciation and trust of the contributions made by farmers and the food industry, serving to advance the vision of the Food Policy for Canada.

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

Canada's international market presence is a major factor in the development and profitability of the agriculture and agri-food sector. In 2022, Canada was the fifth-largest exporter of agri-food and seafood in the world behind the European Union (EU), the United States, Brazil, and China, exporting to nearly 200 countries. Exports also continued to see a positive trend in 2022, increasing almost 13% from the previous year, to reach $92.8 billion. The Department's efforts to strengthen competitiveness and grow the sector beyond the domestic market include: opening, maintaining, and expanding access for Canadian products; pursuing free trade agreements with key partners; addressing trade issues; engaging with multilateral fora to advocate for rules-based trade; and positioning Canada as a preferred supplier of high quality agriculture, agri-food and seafood products.

In 2022–23, AAFC continued to collaborate with key partners, including the Canadian Food Inspection Agency (CFIA), Global Affairs Canada, staff in Canadian missions abroad, provincial and territorial governments, and industry stakeholders, to address market access issues and trade disputes informed by industry priorities, and to facilitate trade in agriculture and agri-food products. For example, collaborative efforts enabled the reinstatement of access for two Canadian canola companies and nine Canadian pork establishments to China, and gained new access for fresh British Columbia cherries in South Korea. AAFC also supported the defense of Canada's dairy sector in disputes on dairy tariff-rate quotas launched by the United States (CUSMA) and New Zealand (CPTPP). In line with the Government of Canada's Export Diversification Strategy, AAFC continued to support the diversification of Canadian agricultural trade through the implementation of free trade agreements, such as CETA, CPTPP, and CUSMA.

The Department continues to promote and defend the interests of the agriculture and agri-food sector, and advance its positions in trade negotiations with other nations. In 2022–23, AAFC and CFIA engaged regularly with the EU to discuss its policies and the Canadian food safety system, in order to advocate for science- and outcomes-based approaches to sustainable food production, and to ensure trade is not disrupted by new policy approaches. In addition, the Canada-United Kingdom (UK) Trade Continuity Agreement, which will be fully implemented by January 2024, preserves the preferential access created under CETA for Canadian agriculture and agri-food products in the UK market, following the UK's departure from the EU. During 2022–23, bilateral negotiations continued to advance on replacing the Trade Continuity Agreement with a new, permanent, Canada-United Kingdom Free Trade Agreement. Through a robust process, Canada also welcomed the United Kingdom as the first economy to accede to the CPTPP while maintaining the partnership's high standards, and ensuring no expansion or increase in access for Canada's supply-managed products.

In 2022–23, negotiations also advanced on a Comprehensive Economic Partnership Agreement with Indonesia, and another with India, which includes consideration for an Early Progress Trade Agreement. Exploratory talks commenced between Canada and Ecuador in November 2022 towards launching negotiations for a bilateral free trade agreement. As a long-time dialogue partner, Canada and the Association of Southeast Asian Nations (ASEAN) committed to establish a Strategic Partnership in November 2022, which recognizes Canada's expanded presence and growing collaborative relationship with ASEAN's 10 member states, as negotiations continued towards a Canada-ASEAN free trade agreement. Securing such an agreement would enhance Canada's trade and investment across many sectors, including agri-food, and strengthen its presence in one of the world's fastest-growing economic regions. Throughout all of these discussions and negotiations, AAFC continues to promote the rigour of Canadian systems, its best practices, as well as its policies on food safety and sustainability internationally.

In November 2022, the Government of Canada launched its Indo-Pacific Strategy, consisting of five interconnected strategic objectives. Encompassing more than 40 economies, the Indo-Pacific is the fastest growing region in the world and represents Canada's second-largest export market and trading partner (after the United States) with $30.6 billion in two-way agri-food and seafood trade in 2022. Expanding Canada's presence in the Indo-Pacific will position Canada as a preferred supplier in the region, allowing the sector to maximize its opportunities. Canada will soon be establishing its first agriculture office in this region, the Indo-Pacific Agriculture and Agri-Food Office (IPAAO). With $31.8 million of dedicated funding over five years, the IPAAO will position Canada to engage with stakeholders, regulatory counterparts, and policy decision-makers to deepen partnerships with Indo-Pacific economies.

As part of the Indo-Pacific Strategy, the Government of Canada committed to exploring further economic opportunities by strengthening its regional partnerships, in particular with Japan. In 2022, for instance, the Japanese market for Canadian beef and beef products was $518 million, largely due to Canada's preferential access under CPTPP. As of March 2023, Japan reopened its doors to Canadian processed beef by removing the last restrictions that had been in place since 2003. This regained access will allow for further market expansion for beef exports to Japan, which is Canada's second-largest market for such products.

The Department continues to promote Canadian interests and priorities through engagement with key partners and International Standard Setting Bodies, and by advocating for predictable and transparent trade within multilateral fora. Positioned in a leadership role, Canada continued to advance strategic interests in agriculture trade reform at the World Trade Organization (WTO) agriculture negotiation table in 2022–23. Canada continued monitoring key trading partners for predictability and transparency, as well as for the implementation of WTO commitments under the rules-based multilateral trading system. In addition, the Department continues to support a science- and risk-based approach to food safety, as well as the development of plant and animal health standards. In 2022–23, AAFC provided funding to support the Standards and Trade Development Facility, a global partnership that works to facilitate international agriculture trade with developing countries, while promoting adherence to international standards of food safety, animal, and plant health.

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

Advancing diversity, equity and inclusion remained a priority in 2022–23 as AAFC continued to explore new program areas, and ways to enhance the flexibility of existing programming in an effort to better support Indigenous Peoples and other underrepresented and marginalized groups (for example, women, youth, racialized persons, persons with disabilities, 2SLGBTQI+ communities, official language minority communities) in the agriculture and agri-food sector. Several ongoing departmental programs and initiatives support the sector in becoming more inclusive. Under the new Sustainable Canadian Agricultural Partnership policy framework (in effect as of April 1, 2023), FPT governments committed to work to address barriers to sector participation, strengthen relationships with Indigenous Peoples, and consider the needs of underrepresented and marginalized groups such as youth and women, to better support sector participation.

In 2022–23, the AgriDiversity Program provided funding of over $1 million for 9 projects. The program helped five organizations to support underrepresented and marginalized groups to enter the industry and pursue careers as agricultural entrepreneurs. In addition, AAFC invested around $3.7 million to the Youth Employment and Skills Program, aiming to create jobs for youth in the sector. From the 249 projects funded, 69% of interns supported through the program identified as being in two or more underrepresented and marginalized groups. The Indigenous Agriculture and Food Systems Initiative provided funding of over $2.9 million for 15 projects in 2022–23, which aimed to boost Indigenous participation in economic growth by supporting entrepreneurs who were ready to launch agriculture and food systems projects, and others who sought to build their capacity to participate in the sector. The program sunset on March 31, 2023.

The Indigenous Pathfinder Service continued to provide advice to Indigenous communities to help navigate the relevant support available to start or expand activities in the agriculture and agri-food sector. In 2022–23, out of 100 clients gaining assistance, 43% were from Indigenous communities, 34% were from Indigenous-owned and operated businesses, and 13% were from Indigenous organizations. To focus on the needs of Indigenous, Northern, and rural communities, a new phase of the Local Food Infrastructure Fund was launched in 2022–23, funding $19.5 million to support 79 new community-led projects and not-for-profit organizations to advance the development of local food systems.

In addition to this programming support, the Sector Engagement Tables are focused on reflecting a more diverse membership. The tables are divided fairly equally between men and women participants. Representing about 50% of the total membership in the Tables, 88 members identify as belonging to underrepresented and marginalized groups, with women making up a significant portion of that number. AAFC continues exploring ways to increase participation from all underrepresented and marginalized groups. In addition to the Canadian Agricultural Youth Council, for example, discussions continue around establishing additional engagement fora specifically for Indigenous Peoples and women in agriculture.

Through the collaborative efforts of the Department's established GBA Plus Advisor Network and other teams, AAFC created a GBA Plus Policy in 2022–23. The policy offers guiding principles, roles and responsibilities, and training to guide the direction for applying GBA Plus within the Department's work, along with an evaluation component to assess the application of the policy over time.

The Department continues to apply GBA Plus to identify, assess, and address potential and existing barriers in its policies, programs and initiatives. AAFC continues to support efforts by Global Affairs Canada to conduct comprehensive GBA Plus assessments throughout all free trade negotiations, to ensure that benefits and opportunities of trade are shared with traditionally underrepresented and marginalized groups, including Indigenous Peoples and women. Under each free trade agreement, AAFC conducts thorough analysis on socio-economic groups involved in Canada's agriculture and agri-food sector, and uses available GBA Plus data (such as gender, age, Indigenous identity, race and ethnicity, ability, and rural/urban location) to examine how various intersecting identity factors impact the effectiveness of a free trade agreement.

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

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

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

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

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

Examples include ongoing departmental efforts to diversify Canadian agricultural trade and help Canadian businesses access new markets, which advances SDG 8, and delivering the Food Policy for Canada, which contributes towards SDGs 2, 3, 12, and 13. In 2022–23, the Food Waste Reduction Challenge provided support to innovations intended to divert or transform food waste and extend the life of food, and the Local Food Infrastructure Fund launched a new phase to help create long term solutions to address food security challenges.

Innovation - Domestic and International Markets

The Department remains committed to exploring innovative practices to increase food availability and strengthen Canada's food systems. More than half of the country's annual food supply is lost or wasted. The Food Waste Reduction Challenge, launched in 2020, is a $20 million initiative under the Food Policy for Canada, aimed at delivering high-impact solutions to food waste in Canada. This Challenge provides support to innovators with either business models or novel technologies which prevent, divert, and/or transform food waste or extend the life of food.

In 2022–23, $7.4 million of funding was provided for the Challenge as it entered the final stages of the Business Model and Novel Technologies streams. In June 2022, 12 finalists under the Business Models streams received a total of $4.8 million as they moved to the next stage. This is a fraction of the 343 applicants that the first round attracted from innovators in Canada and around the world. Entries were evaluated against criteria such as the potential volume of food waste reduction, level of innovation and scalability, and environmental, social, and economic benefits. As the Challenge draws to a close in fall 2023, two grand prize winners will be chosen, each receiving up to $1.5 million.

In January 2022, 18 semi-finalists were selected under the Novel Technologies streams of the Challenge, directed at developing technological solutions to food waste. Each semi-finalist in this second cohort received $100,000 to build a prototype of their innovative technology. In January 2023, six finalists were chosen from 238 applicants to advance to the next stage, collectively receiving $2.6 million to provide solutions on extending the life of perishable food, or transforming food waste into new or value-added products. It is expected that two grand prize winners will be chosen in spring 2024, each receiving up to $1 million. Creating more innovative solutions to food waste in Canada will save money for consumers and businesses, reduce greenhouse gas emissions, and increase food availability.

Key risks - Domestic and International Markets

In 2022–23, Canada's agriculture and agri-food sector was impacted by a variety of market challenges and export barriers, compounded by factors such as Russia's war against Ukraine, which has had a lasting impact on global food security, and the ongoing supply chain disruptions caused by the COVID-19 pandemic. To mitigate these issues, AAFC took various measures to strengthen and diversify trade, including, for example, by continuing negotiations for new free trade agreements, and through establishing Canada's first agriculture office in the Indo-Pacific region. In addition, the Department's range of market development services supported exporters through a refreshed Canada Brand, trade shows, in-market activities and advice, and targeted market intelligence, helping to mitigate the risk that industry may not fully capitalize on new or existing market access opportunities. While resolving market barriers and establishing new free trade agreements provides new avenues for growth, market development efforts help empower exporters with the necessary resources and information to effectively seize opportunities in global markets.

Despite advocacy and market access efforts during 2022–23, geopolitical factors in certain markets impeded the success of these endeavors. Canadian agricultural exports continued to face arbitrary trade actions and non-tariff barriers imposed by China, which jeopardized market access for Canadian agriculture exports while creating significant costs and uncertainty for Canadian exporters. In response, Canada remained committed to utilizing bilateral and multilateral channels to actively sustain its current exports and mitigate these challenges. AAFC and the CFIA engaged with foreign authorities to open, restore, or maintain access for Canadian agriculture and agri-food products.

To ensure that sector stakeholders were well-informed, AAFC continued sharing regular updates with both sector and government contacts, providing comprehensive updates on priority topics such as the labor shortage and other ongoing COVID-19 related developments. The Department's available programming also continued to support the sector through challenges related to export restrictions. In April 2022, for example, United States imports of Prince Edward Island potatoes for consumption resumed, after being temporarily halted in November 2021, with specific conditions implemented to mitigate the risk of potato wart introduction. AAFC established a contribution agreement with the Prince Edward Island Potato Board to reduce the necessity of surplus potato destruction, including by diverting potatoes to processors, alternative markets, and food banks during 2022, and encouraging sustainable disposal methods where required.

Results achieved - Domestic and International Markets

The following table shows, for Domestic and International Markets, the results achieved, the performance indicators, the targets, and the target dates for 2022–23, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental result	Performance indicators	Target	Date to achieve target	2020–21 actual result	2021–22 actual result	2022–23 actual result
The Canadian agriculture and agri-food sector contributes to growing the economy	Percentage change in the economic performance of the agriculture and agri-food sector	At least 2.5%Tablenote 1	December 2025	1.7% (previously reported as 3.6%)Tablenote 2	0.5%	1.8%Tablenote 3
The Canadian agriculture and agri-food sector contributes to growing the economy	Percentage change in agri-food products sold	At least 4.5%	December 2025	3.4% (previously reported as 3.3%)Tablenote 2	6.0%	6.9%Tablenote 4
The Canadian agriculture and agri-food sector contributes to growing the economy	Value of agriculture and agri-food exports	At least $75 billion by 2025Tablenote 5	December 2025	$73.9 billion	$82.3 billion	$92.8 billionTablenote 6
Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions	Degree to which AAFC advances the resolution or the mitigation of market access barriers, WTO disputes, and technical trade issues	At least 80%Tablenote 7	March 2023	85%	80%	84%
Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions	Degree to which AAFC advances trade policy through negotiations, agreements and discussions	At least 80%Tablenote 8	March 2023	90%	90%	90%
Notes: Actual results are reported for the fiscal year that data becomes available. Table 1 note [1] This aspirational target was established in 2019 based on provisional gross domestic product data. Following revisions to the Statistics Canada dataset in 2022, the Department is reviewing this target and expects to revise it for future reporting. Return to table 1 note [1] referrer Table 1 note [2] Statistics Canada data is constantly subject to revisions to reflect the most accurate and up-to-date information and, as such, reported results based on those numbers may fluctuate from year-to-year and may not always be comparable to previous calculations. Following revisions to the Statistics Canada dataset in 2022, results were recalculated and are therefore different from what was reported in previous reports. Return to table 1 note [2] referrer Table 1 note [3] While this indicator was back on an upward trajectory in 2022–23, the Canadian agriculture and agri-food sector faced a number of challenges in 2022 that have had an adverse impact on GDP growth rate. Notably, the lingering effects of COVID-19-related supply chain disruptions and labour shortages, as well as higher production costs associated to Russia's war against Ukraine. Return to table 1 note [3] referrer Table 1 note [4] A number of factors contributed to the growth of this indicator in 2022–23, including: post-pandemic rebound in agri-food capacity, as well as in domestic and international demand for agri-food products; higher food prices; and a favourable exchange rate relative to the United States dollar. Return to table 1 note [4] referrer Table 1 note [5] The Department is reviewing this target and expects to revise it for future reporting. Return to table 1 note [5] referrer Table 1 note [6] The increase in exports in 2022–23 has largely been driven by high international market prices and increased demand from the United States and other emerging markets for Canadian agriculture and agri-food products. Return to table 1 note [6] referrer Table 1 note [7] Performance against this indicator and target is self-assessed based on a scale of 0% to 100%, whereby a score of 80% to 99% indicates the following: (1) that activities required to advance the resolution and mitigation of market access barriers are undertaken effectively; (2) that, with respect to World Trade Organization disputes and technical trade issues, all Canadian partners and stakeholders are engaged to understand issues; (3) that policy advice is provided in response to most requests; and (4) that frequent problem-solving discussions are held. Additional information on the scale and methodology used is available on GC InfoBase. Return to table 1 note [7] referrer Table 1 note [8] Performance against this indicator and target is self-assessed based on a scale of 0% to 100%, whereby a score of 80% to 99% indicates strong engagement to bring Canada's position forward; and evidence that key issues have been advanced in promoting or advancing Canadian policy positions. Additional information on the scale and methodology used is available on GC InfoBase. Return to table 1 note [8] referrer

Financial, human resources, and performance information for AAFC's program inventory is available in GC InfoBase.

Budgetary financial resources (dollars) - Domestic and International Markets

The following table shows, for Domestic and International Markets, budgetary spending for 2022–23, as well as actual spending for that year.

2022–23 Main Estimates	2022–23 planned spending	2022–23 total authorities available for use	2022–23 actual spending (authorities used)	2022–23 difference (actual spending minus planned spending)
771,983,892	771,983,892	888,447,416	856,236,287	84,252,395

Note: In 2022–23, actual spending was greater than planned spending as it reflected spending under the new Wine Sector Support Program.

Financial, human resources, and performance information for AAFC's program inventory is available in GC InfoBase.

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

The following table shows, in full time equivalents, the human resources the Department needed to fulfill this core responsibility for 2022–23.

2022–23 planned full-time equivalents	2022–23 actual full-time equivalents	2022–23 difference (actual full-time equivalents minus planned full‑time equivalents)
551	537	(14)

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

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

Science and innovation

Description: Agriculture and Agri-Food Canada (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.

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

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

Results highlights - Science and innovation

Under the Science and Innovation core responsibility, Agriculture and Agri-Food Canada (AAFC) collaborates with industry, academia, and other federal, provincial, and territorial government partners to help position the agriculture and agri-food sector for future success, including in the important area of climate change. Efforts in 2022–23 focused on research and innovation for the mitigation of and adaptation to climate change; ensuring that science capacity is maximized; and supporting industry to adopt practices that improve resilience, with an emphasis on climate resiliency and clean growth. AAFC also continued to modernize its delivery of science and technology objectives as part of the Department's mission to provide leadership in the growth and development of a competitive, innovative, and sustainable Canadian agriculture and agri-food sector.

In response to the pressing global challenges faced by the agricultural sector, AAFC launched its new Strategic Plan for Science in 2022, which will guide its science and research activities over the next ten years, and better positions the Department to contribute to a profitable, competitive, innovative sector. Departmental programs such as Agricultural Climate Solutions, and Agricultural Clean Technology, continued to support the agriculture sector in reducing its emissions and adapting to an increasingly low-carbon global economy. Ongoing collaborative efforts to support the sustainable growth of the agriculture and agri-food sector advance the Minister's mandate letter commitments, and support the delivery of broader Government of Canada objectives from its strengthened climate plan, including a target of net-zero emissions for the economy by 2050.

Result 1: The Canadian agriculture and agri-food sector knowledge base is increased through Agriculture and Agri-Food Canada 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. In 2022–23, the Department's efforts in this context focused on strengthening its capacity in new areas of research and leveraging collaborative relationships. By growing the agricultural knowledge base, AAFC 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.

AAFC's Strategic Plan for Science was launched in October 2022 and outlines the Department's vision for the future of research and development, while considering the environmental, social, and economic context in which all scientific activities are conducted. The plan will steer departmental science activities over the next decade, focusing on meeting the evolving needs of producers and food processors as they navigate immediate challenges, such as the climate crisis and global food security, as well as the emergence of new threats facing the sector. The plan organizes AAFC science under four missions:

• mitigating and adapting to climate change;
• increasing the resiliency of agro-ecosystems;
• advancing the circular economy; and
• accelerating the digital transformation of the sector.

These missions are providing the framework for project selection and prioritization by AAFC scientists. This renewed strategic direction recognizes that productivity cannot come at the expense of the environment and vice-versa, and aims to turn the traditional stewardship among Canada's producers and food processers into a powerful competitive advantage. The three pillars of the plan — mission-driven science, people first strategy, and organizational excellence — serve to orient the Department's critical role in addressing national science priorities in collaboration with industry, academia, producers, and Indigenous partners.

Through the Canadian Agricultural Partnership policy framework, which concluded on March 31, 2023, the Department continued to support science and innovation efforts within the sector, to advance solutions to long-term risks and enhance its resilience and global competitiveness. The AgriScience Program supported industry-led research, development, and knowledge transfer activities to develop innovative practices, processes, and products to address sector challenges, and increase market opportunities. The program awarded a total of $250 million in support of 88 projects and 19 clusters over the course of its five-year duration (2018–23). The AgriScience Clusters continued to mobilize partnerships between industry, government, and academia to advance research on cross-cutting issues, for example supporting the development of:

• a new vaccine to control dairy cattle diseases;
• effective pest management strategies for greenhouse ornamentals;
• a new generation of spectrum LED lighting for use in the egg industry; and
• technology to rapidly identify antibody response to swine influenza virus infections.

AAFC continued to advance its scientific research on mitigating and adapting to the impacts of climate change, particularly with respect to reducing risks and taking advantage of potential opportunities. By exploring ways to improve water efficiency, nutrient usage, soil health, and feed efficiency, the Department supported the sector in identifying ways to enhance its use of natural resources. For example, through a comprehensive study, the first of its kind in Canada, AAFC researchers found that climate change increased the incidence of nitrogen leaching, which is harmful to the environment, and reduced the phosphorus available to plants. However, they also discovered that combining crop management solutions, such as crop diversity, reduced tillage treatments, and careful fertility planning, allowed the nitrogen and phosphorous levels in soil to remain constant.

As another example, researchers found that the amount of solar energy a surface reflects or absorbs can be affected by crop type and the use of agricultural management practices. When solar energy is reflected rather than absorbed by the earth, it creates a cooling effect that helps to reduce the impacts of climate change. This project discovered that the amount of solar energy reflected or absorbed can be calculated and thus accounted for in agricultural practices. Research projects such as these support Canadian farmers in implementing solutions for the long-term resilience and economic stability of the sector.

Departmental results related to scientific and innovative research are assessed against indicators that measure the level of collaboration or citation involved in departmental scientific publications. Publication rates in 2022–23 fell slightly below their target, due to the continuing affects of the pandemic, but results are expected to rebound again once field activities fully resume. The indicator measuring the number of citations as a proportion of AAFC publications exceeded its target in 2022–23, with an average of 21 citations per departmental scientific publication over the past five years.

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

Supporting scientific research helps the sector to identify new ideas and solutions. Building on that research through investments to help commercialize and adopt innovations, allows those ideas to then be transformed into new business practices. In 2022–23, AAFC continued to assist industry in addressing the financial gap between research and application, and in mitigating the risks associated with adopting new technologies in commercial-level production. The Department continued to deliver the AgriInnovate Program, which funded three projects in 2022–23 totalling almost $7.8 million. One of the projects supported the building of a commercial facility to produce cricket protein for human consumption. Relatively new for Canadian agriculture, food-grade processing of insects provides an alternative source of protein, is highly sustainable, and can produce a high volume of nutritious food with a low environmental footprint. By accelerating the commercialization and adoption of innovative products, technologies, services, and processes such as these, the Canadian agriculture and agri-food sector can strengthen its competitiveness and keep pace with the demand for sustainability attributes in agri-food products.

In addition, the Department's ongoing focus on collaborative science and technology efforts continued to enhance the overall impact of government, industry, and academic expertise by reducing duplication and leveraging collective research capacities. Such partnerships make government investments more valuable and ensure that projects are relevant to Canadian industry priorities. The Living Laboratories Initiative was a coordinated network of sites across the country, each built on an innovative approach where farmers, scientists, and other partners co-develop, test, and evaluate beneficial management practices and technologies in a real-life context. Throughout its duration (2019–23), the Initiative established four living labs in Prince Edward Island, Manitoba, Quebec, and Ontario. These have helped in the development and adoption of sustainable practices and technologies by Canadian farmers to address environmental concerns in the agriculture sector in order to:

• reduce water contamination;
• improve soil and water conservation;
• maximize habitat capacity and biodiversity; and
• mitigate and adapt to climate change.

Launched in 2021 through the Government of Canada's Natural Climate Solutions fund, the Department's Agricultural Climate Solutions (ACS) Program includes two streams. The first stream, ACS-Living Labs, is establishing a strong Canada-wide network of living labs to strengthen the climate resiliency of the agriculture sector. Adopting the same approach as the Living Laboratories Initiative but in every province, the sites co-develop, test, and evaluate agricultural practices that trap and store carbon, reduce greenhouse gases, and support the environment on actual Canadian farms. In July 2022, AAFC announced an investment of almost $54 million to establish nine new collaborative living lab projects in British Columbia, Alberta, Saskatchewan, New Brunswick, Nova Scotia, and Newfoundland and Labrador. This first wave of projects included the first Indigenous-led living lab, by the Mistawasis Nêhiyawak and Muskeg Lake Cree Nation in Saskatchewan, which advances efforts towards the common goal of environmental improvement, while protecting Indigenous values, treaties, communities, lands, and resources. Activities under the program in 2022–23 also focused on assessing proposals for additional projects in the provinces of Manitoba, Ontario, Quebec, and Prince Edward Island, which will complete the Canada-wide network.

The second stream of the ACS Program, the On-Farm Climate Action Fund, supports farmers in adopting beneficial management practices that store carbon and reduce greenhouse gases in the areas of nitrogen management, cover cropping, and rotational grazing practices. In March 2022, Canada's 2030 Emissions Reduction Plan included an investment of $470 million for the expansion and extension of the Fund. In addition to the 12 projects initially approved under the Fund, a $4.8 million Indigenous-led project was approved in June 2022. Interim progress reports indicated that the Fund's recipient organizations are on pace to surpass their targets in supporting the adoption of beneficial management practices to reduce greenhouse gases, sequester carbon, and provide other environmental co-benefits. The Government of Canada joined over 120 countries in committing to reach net-zero emissions by 2050 and, all sectors, including agriculture, are expected to contribute to the emission reduction target of 40% below 2005 levels by 2030. Activities supported through the On-Farm Climate Action Fund are expected to reduce greenhouse gas emissions by up to 2 million tonnes by 2024, along with improving biodiversity and soil resiliency.

In 2022–23, the Government of Canada provided an additional $330 million to triple the amount of funding initially committed for the Agricultural Clean Technology (ACT) Program, to assist farmers in developing and purchasing more energy-efficient equipment, contribute to the low carbon economy, and promote sustainable growth in the agriculture and agri-food sector. The ACT Research and Innovation Stream committed $12.6 million in funding in 2022–23 for 16 projects that developed and demonstrated clean technologies that reduced greenhouse gas emissions. Many approved projects focused on bioeconomy solutions such as biomass processing and utilization technologies, along with developing fertilizer alternatives, manure management technologies, and emissions measurement and verification technologies. The ACT Adoption Stream supported 168 projects in 2022–23, totalling just under $50 million, enabling the purchase and installation of clean technologies that will reduce emissions and provide other environmental benefits. Many funded projects focused on green energy and energy efficiency technologies, including more efficient grain dryers and solar panels.

To support the agriculture sector's actions on climate change and pressing environmental priorities, the creation of a Sustainable Agriculture Strategy was highlighted as one of the Minister's mandate letter commitments. In 2022–23, AAFC launched consultations to guide the development of such a strategy, with a vision to create a long-term plan that will position Canada as a world leader in sustainable agriculture and a trusted food provider. The Department led discussions with stakeholders, including producers, industry, non-government organizations, and Indigenous communities, on ways to strengthen collaboration on environmental and climate action in the sector. Collectively, this feedback will inform the actions, goals, and outcomes of the strategy as its developed, along with how to measure progress to ensure the sector is well equipped to respond to extreme events. The Department also continued working with partners to maximize opportunities for fertilizer emissions reductions. AAFC undertook extensive consultations in 2022 on how to best support farmers and producers through voluntary measures going forward. The Department published a "What We Heard Report" compiling the feedback received, which will inform AAFC's work in collaboration with the sector, towards meeting the target of a 30% reduction of fertilizer emissions from 2020 levels by 2030. To this end, AAFC created a new government-industry Fertilizer Working Group, co-chaired by the Department and Fertilizer Canada, to collaboratively work to reduce fertilizer emissions while protecting the livelihoods of Canadian farming families.

Departmental science and innovation results assess the effectiveness of the Canadian agriculture and agri-food sector in transforming ideas or adopting new technologies, products, practices, processes and systems. Over the course of the Canadian Agricultural Partnership (2018–23), the Department reached a cumulative total of 473 out of the targeted 500 new innovations, with 66 of those in 2022–23, limited by the continued impacts of the pandemic. The indicator measuring the percentage of revenues generated on farms adopting innovative practices recorded a result of 63%, surpassing the established target of 55%, while the metric assessing the percentage change in the productivity of the sector has been demonstrating a slight negative trend. However, this is not uncommon for assessments of productivity growth, and recent overall sector performance suggests it should achieve its ultimate target.

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

Promoting gender equality, diversity, and inclusiveness is a government-wide priority, and continues to be supported by AAFC through its science and innovation work. GBA Plus highlights the importance of a diverse and representative workforce in providing the combination of skills and expertise required to address the complex challenges facing the agricultural sector. In recognition of this, the Department's Strategic Plan for Science includes a "people first" pillar, emphasizing that science excellence includes ensuring an inclusive workforce that embraces differences and mobilizes diversity. In 2022–23, AAFC worked to ensure that its efforts in science promote inclusiveness and reflect Canada's diversity, including by giving priority to both women and Indigenous candidates in staffing processes to increase their representation in science, technology, engineering, and mathematics (STEM) roles. Through the Department's Accelerated Staffing Initiative, 303 scientist and science professional positions were filled in 2022–23 and, of those, 116 self-declared as members of an employment equity group. The Department also supported the development of an Indigenous recruitment initiative for research technician positions towards the goal of increasing representation of Indigenous Peoples in science, technology, engineering and mathematics. While the initiative is ongoing, results in 2022–23, which included 230 completed applications, kept the Department on track to achieve a 30-person hiring goal for technician positions to close this gap by 2025.

AAFC continued to educate and influence youth about possible career paths in science, and worked to inspire the next generation of Canadian female agricultural scientists through webinars, training sessions, and the activities of its diversity networks, such as the Women in STEM network (WiSTEM). This network promotes an environment in science and science-related activities at AAFC that is inclusive and welcoming for women, and that celebrates the achievements of women in science professions — including by profiling their work on Wikipedia. In 2022–23, the network held a national forum (October 24 and 26, 2022) on the future of work from a women in STEM perspective, seeking to solicit recommendations and tangible outcomes on workplace change within AAFC. In addition, the network hosted a pilot project for "Hands-On STEM Days" in March 2023, enabling engagement between high school students and female scientific staff at four of the Department's research and development centres. The WiSTEM Network continued working closely with the Department's other diversity networks to address common issues, and promote a diverse and inclusive workplace within AAFC.

In support of Indigenous science capacity in the sector, the Department's Indigenous Science Liaison Office provided support and advice on building relationships, engaging, and co-developing research projects with Indigenous partners. In 2022–23, AAFC implemented the first year of an Indigenous strategy specifically for its science and technology branch staff, with guidance for contributing to reconciliation through the course of their daily work. An associated action plan, with key targets and performance measures based on the strategy's objectives, provides a path forward for improving relationships with Indigenous Peoples through scientific collaboration. In addition, the Department concluded the third year of a successful pilot under the Indigenous Agriculture Science Partnerships Fund. Funding was provided to enable departmental research staff to initiate relationship-building activities with prospective Indigenous partners across Canada, and supported 15 projects in 2022–23.

The Department also continued to lead the interdepartmental Indigenous Science, Technology, Engineering and Math (I-STEM) Cluster on behalf of 15 federal departments and agencies. The Cluster works to foster long-term relationships with Indigenous partners that support stewardship and innovation, while advancing the environmental, cultural, and socio-economic goals of Indigenous Peoples in a collaborative and reciprocal way. In 2022–23, the Cluster established a core Secretariat and an Indigenous Advisory Circle. It continued supporting initiatives highlighting the innovative potential of co-developed research at national and international fora, and managed important research relationships with key Indigenous organizations. As well, the Cluster continued collaborating with the First Nations Information Governance Centre to co-develop STEM-specific considerations for their existing Ownership, Control, Access and Possession principles of First Nations data. These efforts will increase federal knowledge, competency, and operability. Training opportunities through the I-STEM Cluster reached approximately 80 science employees from across the member departments in 2022–23, bringing the total to over 300 since its launch in 2019, while also offering ongoing and unlimited Indigenous employee participation.

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

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

AAFC's activities under the Science and Innovation core responsibility support Canada's efforts to address the United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). The Department continues to modernize its delivery of science and technology to provide leadership in the growth and development of a competitive, innovative, and sustainable Canadian agriculture and agri-food sector. The Department also embraces 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. The Canadian Agricultural Partnership policy framework (2018–23) and various research areas guided by the Department's science priorities contributed toward:

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

Initiatives and projects under the ACS Program, in both the Living Labs and On-Farm Climate Action Fund streams, served to tackle climate change and reduce Canada's environmental footprint, contributing to SDGs 2, 12, 13, and 15. In addition, by focusing on the areas of soil health, adaptation and resilience, water, climate change mitigation, and biodiversity, the Department's Strategic Plan for Science and work towards a Sustainable Agriculture Strategy also contribute to the SDGs related to the sustainable management of agricultural resources, such as SDGs 2, 6, 9, 12, 13, and 15.

Innovation - Science and Innovation

In 2022–23, AAFC continued to develop and test modern approaches to its science and innovation programming. Both the Living Labs and On-Farm Climate Action Fund streams of the ACS Program leveraged existing networks in their innovative delivery models. ACS Living Labs is guided by an approach that brings together producers, scientists, and other partners to co-develop and test innovative technologies and beneficial management practices. The program is founded on an innovative model of collaboration and co-development amongst agricultural sector stakeholders. The On-Farm Climate Action Fund employs an innovative program model that leverages partner infrastructures, expertise, and networks. The program hosted a number of national calls with recipient organizations in 2022–23, with more planned for the following year, to facilitate further collaboration and relationship-building with the sector. Both the Living Labs and On-Farm Climate Action Fund also featured strong knowledge and peer-to-peer learning activities through vocational training, coaching, workshops, courses, and farm visits, designed to develop skills and transfer knowledge.

The Government of Canada continues to recognize the importance of technological innovation, including its contributions to transforming the agriculture sector while ensuring it remains sustainable and competitive. In 2022–23, AAFC partnered with Innovation, Science and Economic Development Canada, through its Innovative Solutions Canada program, to fund up to $400,000 for 4 businesses to advance automation and robotic technologies by developing solutions for work productivity, labour shortages, and operational efficiency in the agricultural sector. In addition, AAFC provided funding in 2022–23 for the development of a digital food innovation hub for the Canadian Food Innovation Network, allowing members to connect with others within Canada's food sector. As an interactive, self-serve platform, this online community helps businesses find new resources to enable continued progress and innovation in their field, improve collaboration, and stimulate new opportunities for economic growth.

As part of AAFCs efforts to support technology development and adoption, the Department made strides to facilitate the sector to deploy new technologies through regulatory experimentation. Initiated by the Agile Regulations Sector Engagement Table, with the support of Treasury Board Secretariat's Centre for Regulatory Innovation, and in collaboration with industry stakeholders and the Pest Management Regulatory Agency, AAFC launched an experiment on the use of drones for pesticide applications. Currently, drones are not permitted to be used for crop spraying in Canada due to regulatory data gaps. This experiment, being conducted by AAFC's Pest Management Centre, will help to fill that data gap through field trials and will help inform regulatory decisions. Through novel approaches like this, AAFC continues to support the deployment of new technologies that give farmers the tools they need to improve productivity, reduce costs, and adopt sustainable practices.

Key risks - Science and Innovation

Canada's agriculture and agri-food sector faces a variety of risks every year and continued to be affected by the challenges of climate change in 2022–23, characterized by higher temperatures, shifting precipitation patterns, extreme weather events such as floods and droughts, and the occurrence of more favorable conditions for pest survival and migration. Due to its northerly location, Canada experiences climate change at twice the rate of the world's average, and these factors have had a significant impact on Canadian agriculture, with varying effects observed across different regions. Hurricane Fiona and drought-induced feed shortages were among the exceptional circumstances faced by the sector in 2022–23. Flooding can have devastating impacts on farm operations and the loss of arable land, while drought and excessive heat can stress crops and livestock, and lower yields.

AAFC has continued to mitigate these risks by taking measures to enhance the agri-environmental resilience and adaptability of the sector in 2022–23. Through the design and delivery of its scientific research and programming, including in collaboration with key partners, the Department continued to develop, assess, and demonstrate best management practices and innovative technologies to address climate risks in farming. Activities such as climate, weather, and crop modelling, as well as decision support tools like drought watch assessments, also remained instrumental in understanding the ramifications of climate change. In addition, ongoing efforts to explore climate-, disease-, and pest-resistance crop varieties and more efficient irrigation systems, helped enable the adoption of mitigation measures to the benefit of the sector's climate resilience.

With climate change and environment identified as a priority area under the new Sustainable Canadian Agricultural Partnership policy framework (2023–28), AAFC has worked with provincial and territorial partners to update the parameters of the AgriScience Program to include mandatory minimum investments in activities focusing on these areas, and to establish performance indicators specifically for environment and climate change. The Department remains committed to supporting the mitigation of climate-related risks through the resilience of agri-ecosystems.

In addition to environmental risks, the sector was also confronted with challenges that could impact science and innovation outcomes. Factors such as financial constraints, reduced investment, or skilled labour shortages, can limit the adoption of innovations and new technologies within the sector. To mitigate these risks and enhance the sector's ability to compete and withstand adversity, AAFC has continued supporting knowledge-transfer activities, which accelerate the adoption of scientific advancements to improve resilience. Additionally, the Department has continued to evaluate and prioritize its research efforts to ensure that science capacity is maximized, including through the launch of its ten-year Strategic Plan for Science.

Results achieved - Science and Innovation

The following table shows, for Science and Innovation, the results achieved, the performance indicators, the targets, and the target dates for 2022–23, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental result	Performance indicators	Target	Date to achieve target	2020–21 actual result	2021–22 actual result	2022–23 actual result
The Canadian agriculture and agri-food sector knowledge base is increased through Agriculture and Agri-Food Canada supported scientific and innovative research	Percentage of Agriculture and Agri-Food Canada scientific publications produced through collaboration	At least 75% Collaboration with external collaborators rises to at least 75% of Agriculture and Agri-Food Canada peer-reviewed scientific publications	March 2023	79%	77%	73%Table 2 note 1
The Canadian agriculture and agri-food sector knowledge base is increased through Agriculture and Agri-Food Canada supported scientific and innovative research	Number of citations as a proportion of Agriculture and Agri-Food Canada scientific publications	An average of at least 15 citations per Agriculture and Agri-Food Canada peer-reviewed publication in the span of 5 years is maintainedTable 2 note 2	March 2023	17 (based on citations from 2015–20 for peer-reviewed publications published in 2015)	17 (based on citations from 2016–21 for peer-reviewed publications published in 2016)	21 (based on citations from 2017–22 for peer-reviewed publications published in 2017)
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Number of new technologies, products, practices, processes, or systems that are available for transfer to the sector	Average development of 100 new innovations annually with the goal of achieving 500 over the Canadian Agricultural Partnership framework (2018-2023)	March 2023	121	72	66Table 2 note 3
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Percentage of revenues generated on farms adopting innovative practices	At least 55% of total Canadian agricultural gross revenues are generated by farms that adopt innovative products, processes, or practices between 2023 and 2025	December 2025Table 2 note 4	64% (based on results from the 2019 Farm Financial Survey for the period 2017–19)	Not available	63% (based on data from the 2021 Farm Financial Survey for the period 2019–21)
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Percentage of processors developing and/ or introducing innovations	75% of food processors with sales of $1 million or more introducing at least one product, process, marketing or organizational innovation between 2021 and 2023Table 2 note 5	December 2023	Not available	Not available	Not available (result available in 2025)
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Index of Agri-Environmental Sustainability (water, soil, air quality, biodiversity)	At least an Index of 71Table 2 note 6	March 2030	Not available	68 (based on the 2016 Census of Agriculture)	Not availableTable 2 note 7
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Percentage change in the productivity of the agriculture and agri-food sector	At least 1.4% Agriculture sector: Maintain annual productivity growth rate at 1.4% between 2016 and 2026	December 2026Table 2 note 8	Not available	Not available	Not available
The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices	Percentage change in the productivity of the agriculture and agri-food sector	At least 0.2% Agri-food sector: Compound annual growth rate increases to at least 0.2% between 2016 and 2026	December 2026Table 2 note 9	0.1% (compound annual growth rate from 2016-17)	−0.2% (compound annual growth rate from 2016-18)	−0.3%Table 2 note 10 (compound annual growth rate from 2016-19)
Notes: Actual results are reported for the fiscal year that data becomes available. Table 2 note [1] The average percentage of AAFC publications produced through collaboration in the past five years exceeded the target of 75%, although the result for 2022–23 fell slightly below at 73%. This can be attributed to decreased field activities in the past couple of years as a result of the COVID pandemic which, in turn, has impacted publication frequency and overall collaboration. Return to table 2 note [1] referrer Table 2 note [2] Indicator measures citations in the span of five years, between time of publication and citations. Return to table 2 note [2] referrer Table 2 note [3] This result fell under its annual target in 2021–22 and 2022–23 due largely to the effects of the COVID-19 pandemic. Results are expected to pick up in subsequent years as the Department moves away from pandemic impacts, and resumes normal research and field work operations. Over the course of the five-year Canadian Agricultural Partnership, AAFC reached a cumulative total of 473 innovations out of the targeted 500, for an average of 95 innovations annually between 2018 and 2023. Return to table 2 note [3] referrer Table 2 note [4] Indicator has a two-year lag time; data is only available every two years based on the Farm Financial Survey. Return to table 2 note [4] referrer Table 2 note [5] Baseline and target were established in 2019 based on the 2016–18 "Survey on Innovation in the Food Processing Industry". The next reference period for the Survey will be 2021 to 2023, with data available in 2025. The most recently reported result was 72% in the 2019–20 year, based on survey results for 2016 to 2018. Return to table 2 note [5] referrer Table 2 note [6] The Agri-Environmental Sustainability Index ranges from 0-100, whereby 0-19 represents an "undesirable" status, 20-39 represents "poor," 40-59 represents "moderate," 60-79 represents "good," and 80-100 represents "desired". An index of 71 would indicate that overall water, soil, air, and biodiversity quality related to agricultural lands is rated as "good" or, in other words, that agri-environmental health is at low risk of being significantly degraded. The calculation of the Index is based on four sub-indices for water quality, air quality, soil quality, and biodiversity. Return to table 2 note [6] referrer Table 2 note [7] Indicator is dependant on Census of Agriculture data, which is collected every five years, and then has a five-year lag time for the data to be processed, analyzed, and reported. The next update of the Index is expected in late 2023. Return to table 2 note [7] referrer Table 2 note [8] Indicator for the agriculture/primary sector is dependent on Census of Agriculture data, which is collected every five years, and then has a five-year lag time for the data to be processed, analyzed, and reported. Beginning in 2023–24, this indicator was removed from AAFC's Departmental Results Framework as challenges with data availability limited its efficiency in measuring productivity results. Return to table 2 note [8] referrer Table 2 note [9] Indicator for the agri-food/processing sector has a four-year lag time; 2026 result will be available in March 2030. Return to table 2 note [9] referrer Table 2 note [10] Productivity typically grows in spurts and it is not uncommon to see slowdowns or even small negative trends in productivity over the short term. Although compound annual growth rates have not been trending towards the target, largely attributable to declines in beverage and tobacco productivity, recent overall performance suggests the sector is still on track to meet the ultimate target of at least 0.2% by 2026. Return to table 2 note [10] referrer

Financial, human resources, and performance information for AAFC's program inventory is available in GC InfoBase.

Budgetary financial resources (dollars) - Science and Innovation

The following table shows, for Science and Innovation, budgetary spending for 2022–23, as well as actual spending for that year.

2022–23 Main Estimates	2022–23 planned spending	2022–23 total authorities available for use	2022–23 actual spending (authorities used)	2022–23 difference (actual spending minus planned spending)
711,673,975	711,673,975	800,984,203	764,747,108	53,073,133

Financial, human resources, and performance information for AAFC's program inventory is available in GC InfoBase.

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

The following table shows, in full‑time equivalents, the human resources the Department needed to fulfill this core responsibility for 2022–23.

2022–23 planned full-time equivalents	2022–23 actual full-time equivalents	2022–23 difference (actual full-time equivalents minus planned full‑time equivalents)
2,639	2,622	(17)

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

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

Sector risk

Description: Agriculture and Agri-Food Canada (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.

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

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

Results highlights - Sector risk

The growth and resiliency of the Canadian agriculture and agri-food sector relies on an effective suite of risk management tools that help farmers when they face various uncertainties in managing their operations. These may include production risks resulting from weather events, pests or diseases that impact crops and livestock, or risks related to trade conditions such as supply and demand fluctuations and volatilities in world markets. In collaboration with provincial and territorial governments, Agriculture and Agri-Food Canada (AAFC) remains committed to delivering and improving its comprehensive suite of Business Risk Management (BRM) programs in addressing the evolving needs of the sector. Over the course of 2022–23, the Department supported producers through difficulties including severe weather conditions, environmental challenges, supply chain disruptions, and ongoing labour shortages.

In addition, to support producers and processors in addressing market demands for specific product attributes, while safeguarding the sector against threats to plant and animal health, AAFC continued to facilitate industry-led development and implementation of assurance systems. These systems play a critical role in promoting sustainability in production and ensuring a reliable supply of Canadian food products, fostering confidence in the agricultural supply chain, and contributing to the financial resilience of the agriculture and agri-food sector.

Result 1: The agricultural sector is financially resilient

Throughout 2022–23, the Canadian agriculture and agri-food sector encountered a wide range of risks that presented challenges to its stability and resilience. Environmental conditions, including from climate change and extreme weather phenomena (droughts, flooding), directly affected production capabilities and posed challenges to agricultural activities. The sector also experienced instances of disease outbreaks and pest infestations, and was subject to market volatilities including trade restrictions, global supply and demand shocks, as well as rising inflation and production costs. In the face of these and other challenges in 2022–23, AAFC remained committed to supporting the sector in managing these risks, while enabling economic growth.

The Department continued to deliver a comprehensive suite of BRM programs to help Canadian agricultural producers successfully navigate the significant challenges that could threaten the viability of their operations. Under the Canadian Agricultural Partnership policy framework (2018–23), the following BRM programs were administered in collaboration with provincial and territorial governments through cost-sharing agreements, and provided producers an annual average of approximately $2.1 billion in support to help them endure the effects of severe events and sustain their productivity.

• AgriInsurance offers insurance coverage to producers against various natural hazards, helping to mitigate the financial impact of production or asset losses. Eligible risks include drought, flood, wind, frost, excessive rain, heat, snow, uncontrolled disease, insect infestations, and wildlife. Producers receive payments when they experience a production loss during the year.
• AgriInvest is a savings account that allows farmers to make contributions, which are then matched by the government. The funds can be used to manage income declines or make investments that help mitigate risks or improve market income.
• AgriRecovery is a disaster relief framework that enables federal, provincial, and terri-torial collaboration to respond to natural disasters, as well as pest or disease outbreaks. It provides financial support to producers for the extraordinary costs associated with recovery activities.
• AgriStability helps farmers manage market and production risks by providing compre-hensive, margin-based support. It offers protection against significant producer income declines when they experience a severe income decline due to factors such as production loss, increased costs, or unfavorable market conditions.
• AgriRisk provided funding to support the development and implementation of new risk management tools within the agricultural sector. These tools were led by industry stake-holders and aimed to enhance risk management capabilities. Under the new Sustainable Canadian Agricultural Partnership framework, which came into effect on April 1, 2023, objectives previously included under AgriRisk will be incorporated under other federal programs, depending on the objective and purpose of the project.

In response to the significant challenges faced by farmers affected by avian influenza outbreaks in Alberta and British Columbia, as well as the damages caused by Hurricane Fiona in Nova Scotia and Prince Edward Island, the AgriStability program implemented additional measures to provide support in 2022–23. The program's enrollment deadline was extended to June 30, 2022 to allow time for producers to assess their risk management needs and access the support available for the 2022 program year. Recognizing the urgent financial situation resulting from Hurricane Fiona, the interim benefit payment percentage in Nova Scotia and Prince Edward Island was increased from 50% to 75% of the expected final total under the program. This adjustment enabled farmers to access a larger portion of their benefits early, providing crucial support for their immediate needs.

In August 2022, additional support was extended to Canadian producers in response to extreme weather conditions attributed to climate change. The Livestock Tax Deferral provision was introduced to assist livestock producers in Alberta, Saskatchewan, and Manitoba who were compelled to sell a substantial portion of their breeding herds due to drought or flooding. This provision allowed producers to defer a portion of their income from these sales until the subsequent tax year. The purpose of this measure was to provide reassurance and support to producers as they faced challenging decisions regarding herd management due to adverse conditions.

The exceptional circumstances experienced in 2022–23, including drought-induced feed shortages, pandemic-related delays, and Russia's war against Ukraine, disrupted supply chains and raised input costs for Canadian farmers, including for fuel and fertilizer. In recognition of these challenges, changes were made to the Advance Payments Program to increase cash flows to producers to assist them in managing high input costs and ensuring a successful planting season. The requirement for pre-production advances to be issued in two installments, 60% up-front and 40% after seeding confirmation, was waived. This allowed producers to receive 100% of their 2022 advance immediately when they applied. As a result, between April and August 2022, almost $2.4 billion in advances were issued, a notable 32% increase compared to the same period in 2021. This growth can also be attributed to the increased interest-free limit (that is, the portion of each advance on which the Government pays the interest), which was raised from $100,000 to $250,000 for the 2022 and 2023 program years. This temporary program change benefited over 9,500 Canadian farmers, resulting in an additional $1.06 billion in interest-free advances and approximately $24 million in interest savings.

Throughout 2022–23, the Department continued to collaborate closely with provincial and territorial partners to further strengthen and enhance BRM programs, with the objective of bolstering the financial resilience and overall well-being of the agriculture and agri-food sector. As part of these efforts, improvements were made to the AgriInsurance program to ensure alignment with the evolving requirements of producers, and included updating insurable values and program deadlines, introducing new coverage features for producers, and modifying various program parameters. In addition, during their July 2022 meeting, federal, provincial, and territorial Ministers of Agriculture agreed to continue efforts to modernize BRM programming, including under the new Sustainable Canadian Agricultural Partnership policy framework (2023–28). Efforts are ongoing to ensure that the suite of programs continues to support the growth objectives of the sector while addressing the constantly changing risks that can impact the health and sustainability of farms. For example, the AgriStability compensation rate is expected to increase from 70% to 80% starting with the 2023 program year, and the Department is implementing measures to make the program more timely, equitable, and easy to understand.

In addition, government partners also continue to actively engage in exploring ways to enhance the integration of climate and environmental considerations into BRM programming. Climate change and environment was identified as a priority area of the Sustainable Canadian Agricultural Partnership. Adjustments to BRM programs will align agricultural practices with sustainability goals while addressing the challenges posed by climate change, and contributing to Canada's 2030 and 2050 emissions reduction targets. Starting in 2025, producers participating in AgriInvest with allowable net sales of at least $1 million will be required to undergo an agri-environmental risk assessment, such as an environmental farm plan, in order to receive the government-matching amount of their AgriInvest deposit.

In addition to delivering a suite of BRM programs, the Department continued to support the financial resilience of the Canadian agricultural sector through its Farm Debt Mediation Service. This program provides free and confidential services to commercial farmers experiencing challenges in meeting their financial obligations. Throughout 2022–23, the service facilitated discussions between producers and their creditors through the involvement of a neutral mediator, aiming to achieve a mutually agreeable resolution regarding farm debt and financial obligations.

The Sector Risk core responsibility uses two indicators to assess the financial well-being of Canadian farms. The first measures the sector's income relative to historical income, which determines how sector income has changed after accounting for BRM assistance. In 2022–23, net operating income saw positive gains based on data from the 2020 program year, reaching 110% of the five-year average and surpassing the 85% target, while BRM payments remained generally consistent with the previous year. The second indicator measures the percentage of farms that are financially stable, based on the latest available information from the Farm Financial Survey (2021). Recent data revealed that 92% of farms were assessed as financially healthy, surpassing the target of 90%, primarily due to strong cash flows.

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

The trustworthiness of Canada's food and agriculture sector plays a pivotal role in maintaining the competitiveness of the industry, both at home and on the global stage. In 2022–23, the Department continued to collaborate with industry to ensure that assurance systems and tools for food safety, biosecurity, traceability, and emergency management are available to support Canadian agricultural producers in their proactive management of risks. In addition to risk management, assurance systems help fulfill market demands by attesting to requirements for specific product attributes or production methods. They play a crucial role in fostering consumer confidence that Canadian products are produced in a manner that is consistent with sustainability, and good animal welfare practices. Assurance systems are also used to demonstrate that food meets the requirements to be designated as halal, kosher, or organic. As consumer demands for specific production methods and product preferences increase, assurance systems are becoming even more crucial.

Through the AgriAssurance Program, the Department continued to assist in the development, adoption, and enhancement of sustainability certification and assurance systems within the sector. The program had 59 active projects in 2022–23, including supporting the establishment of the National Soybean Sustainability Program, which enables Canadian soy growers to obtain independently verified sustainability certification for their products. The program also aided the development of National Salmon Farming Commitments, demonstrating to consumers that Canadian salmon farmers provide safe, reliable, healthy, and environmentally friendly protein with a low carbon footprint. In 2022–23, the AgriAssurance Program approved six projects under the National Industry Association Component and nine under the Small and Medium-sized Enterprises Component. This brought the overall number of industry-led projects supported to 99 throughout the entire five-year duration of the Canadian Agricultural Partnership policy framework.

The Department also remains committed to partnering with industry stakeholders, provincial and territorial governments, and other federal departments, to increase awareness of emergency preparedness and planning, share information on significant risks, and develop best practices to mitigate the impact of emergency situations. In August 2022, the Government of Canada committed up to $45.3 million to enhance efforts in preventing African Swine Fever (ASF) from entering Canada and preparing for a potential outbreak. As part of this investment, AAFC launched the African Swine Fever Industry Preparedness Program in November 2022, a three-year program with up to $23.4 million in funding to help Canada's pork industry prepare for the possibility of ASF entering the country. The program was created to support various initiatives, including biosecurity assessments and improvements, wild pig management, retrofitting of existing abattoirs, as well as sector analysis and ASF-related research projects. As of March 2023, the program had 22 applications under review.

Additionally, the Department maintained its ongoing collaboration with the Canadian Food Inspection Agency to advance plant and animal health. This partnership encompasses initiatives related to traceability and biosecurity, which play a crucial role in mitigating risks related to food safety and disease within the sector, and in fostering trust in Canada's agriculture and agri-food industry. Notable collaborative projects include supporting the efforts of Animal Health Canada, as well as the creation of the Canadian Plant Health Council, as official coordination bodies. These organizations work together to safeguard the overall health and well-being of plants and animals in the country by advancing Canada's Plant and Animal Health Strategy.

Results related to assurance systems under the Sector Risk core responsibility are measured by the percentage of functioning implementation plans for assurance projects. However, results data for this indicator is limited due to the long-term nature of this work. The Department employs a proxy indicator to assess results, based on the average annual number of assurance projects approved by the AgriAssurance program since the beginning of the Canadian Agricultural Partnership. During the policy framework's five-year duration, a total of 147 applications were received to the program, out of which 99 were approved, just shy of the proxy target of 20 approved applications per year between 2018 and 2023.

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

AAFC remains committed to collaborating with provincial and territorial governments to address barriers to participation and improve access to agricultural programming for underrepresented and marginalized groups in the sector, including Indigenous Peoples, women, youth, persons with disabilities, racialized groups, 2SLGBTQI+ communities, and official language minority communities. The AgriAssurance Program collects data to monitor and report on organizations including, and projects benefitting, underrepresented and marginalized groups. Among the projects supported by the program in 2022–23, 25% specifically identified their organizations as having a focus on underrepresented groups, and 25% stated that their activities would directly benefit one or more underrepresented and marginalized groups.

Enhancing access to BRM programs is a priority for federal, provincial, and territorial governments. Work is ongoing to improve and analyze the outcomes of these programs to ensure their effectiveness, including by incorporating the unique and diverse needs of underrepresented and marginalized groups. These efforts have been further emphasized and incorporated within the new Sustainable Canadian Agricultural Partnership (2023–28). Reviews of programming under the Agricultural Marketing Programs Act and the Canadian Agricultural Loans Act undertaken in 2022–23 included assessing participation and potential roadblocks for underrepresented groups with the aim of increasing their access to the programs in the future.

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

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

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

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

AAFC continued to lead on ensuring a sustainable agriculture and agri-food sector by addressing climate risks and creating conditions for industry to succeed and compete globally. The AgriInvest, AgriStability, AgriInsurance, and Advance Payments programs provide agricultural producers with protection against income and production losses, which advances SDG 2 and 8. Supporting resilience and risk management in collaboration with provincial and territorial governments also helps to build and maintain public trust in the sector and ensure ongoing confidence of Canadians in the agriculture and agri-food supply chain. This could indirectly support SDG 16 (peace, justice and strong institutions), specifically, target 16.6, which aims to develop effective, accountable, and transparent institutions at all levels.

Innovation - Sector Risk

In 2022–23, AAFC continued to explore experimental approaches to enhance the delivery of risk management programs or advance the development of new risk management tools, building upon the initiatives launched in previous years and continuing the focus on innovation and improvement in the agricultural sector. For instance, in 2020–21, the Department launched a two-year cash reference margin pilot under the AgriStability program in Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador, and the Yukon. Under this pilot, AgriStability participants could choose to have their reference margins calculated on the cash basis if reporting their financial information for income tax purposes using cash accounting. This reduced data reporting requirements for producers, resulting in reduced application processing times and timelier access to benefits to meet their urgent needs. The results indicators for this pilot were approved by the federal, provincial, and territorial BRM working group with a view to seeking final approval by Assistant Deputy Ministers in summer 2023. The pilot has been extended a further three years to fiscal year 2024–25.

Additionally, a nudge initiative was launched in 2020–21 aiming to generate more interest and uptake in the "My AAFC" account portal, and to default users to purely online interactions. However, due to multiple delays in the re-platforming of the portal, both the initial planned experiment and its future development were impacted. The portal was re-platformed in October 2022, although with less functionality than the previous version, due to the overall complexity of the existing software and the time constraints of the project. As a result, efforts through the remainder of 2022–23 were devoted to recovering the reduced functionality, in order to then resume further development of the portal, including to introduce new features and services from this new foundation. Despite these challenges, as a result of the re-platforming, new "My AAFC" account portal users are now defaulted to purely online interactions with the Department.

A pilot AgriStability outreach position was introduced in Nova Scotia in 2021–22, with joint funding from AAFC and the province. The position involves engaging with farmers, agricultural associations, and other stakeholders to raise awareness about the AgriStability program and its benefits. The results of this pilot position will be assessed upon its completion in November 2023, and will be used to inform future decisions regarding the pilot's continuation and/or AgriStability client service engagement improvements.

Key risks - Sector Risk

Agricultural producers are subject to a myriad of risks that may threaten the viability of their operations. In 2022–23, these challenges included wildfires, extreme weather events such as droughts and floods, as well as vulnerabilities due to declining commodity prices, rising input costs, labor shortages, pest infestations, and the spread of animal diseases. Global events, including the lingering impacts of the COVID-19 pandemic, and geopolitical tensions like Russia's war against Ukraine, further exacerbated these risks. Meanwhile, the rise in inflation and interest rates impacted agricultural input costs, debt management, and investment decisions.

To mitigate these risks, agricultural producers relied on the comprehensive suite of BRM programs offered through the Canadian Agricultural Partnership. These programs continued to provide essential protection against income and production losses, enabling producers to effectively manage the diverse risks that could otherwise undermine the long-term sustainability of their farms. In addition, working in close collaboration with provincial and territorial governments, AAFC continued to explore how BRM programming under the new Sustainable Canadian Agricultural Partnership (2023–28), could better support producers in anticipating, mitigating, and responding to risks, as part of a shared commitment to enhance sector resiliency. For example, by raising the AgriStability compensation rate, and agreeing to conduct a review on how to integrate climate risk and readiness in BRM programs.

In recognition of the significant threat posed to the Canadian pork supply chain, AAFC continued to provide leadership in bringing together industry and government to improve the livestock industry's preparedness and readiness in case of a potential foreign animal disease incursion. The new African Swine Fever Industry Preparedness Program, launched in 2022, will run over three years under two streams: Prevention and Preparedness; and Welfare Slaughter and Disposal. Ongoing collaboration on ASF, along with lessons learned from the recent Highly Pathogenic Avian Influenza outbreak, are being used to inform Canadian prevention and preparedness efforts for other diseases of concern.

The Department is committed to ongoing and active engagement of other federal organizations, provinces and territories, the agriculture and agri-food sector, and Indigenous communities, to enhance awareness of the benefits of emergency preparedness and planning, share information related to key risks, and develop best practices to mitigate the impacts of reportable diseases. In this context, following consultations with critical partners, AAFC delivered an action plan in 2022–23 to the House of Commons Standing Committee on Public Accounts for the development of a national emergency preparedness and response plan for potential crises that may affect Canada's entire food system.

In response to chronic workforce challenges in the agriculture and agri-food sector, AAFC began developing an Agricultural Labour Strategy in 2022 by launching consultations to engage with provincial and territorial governments, industry stakeholders, and the wider Canadian public. The purpose of these consultations was to develop a comprehensive understanding of the challenges that exist and to gather ideas on how they can be overcome. Consultations were completed in winter 2022, with the results of the consultations released in May 2023 in a "What We Heard" report. The feedback will be used to inform the development of an action-oriented strategy that reflects the needs of the Canadian agriculture and agri-food sector.

Addressing the impacts of inflation and other risks, the Department co-led a federal, provincial and territorial working group that is supporting the development of an industry-led Grocery Code of Conduct. This initiative aims to improve transparency, predictability, and fair dealing within the supply chain. The Grocery Code of Conduct is expected to alleviate some of the pressures facing the food supply chain and help manage inflationary pressure.

Results achieved - Sector Risk

The following table shows, for Sector Risk, the results achieved, the performance indicators, the targets, and the target dates for 2022–23, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental result	Performance indicators	Target	Date to achieve target	2020–21 actual result	2021–22 actual result	2022–23 actual result
The agricultural sector is financially resilient	Sector's income as a proportion of historical income	At least 85% Sector income is maintained above the 85% threshold of five-year average income	March 2023Table 3 note 1	91% (for the 2018 program year)	84% (for the 2019 program year)	110%Table 3 note 2 (for the 2020 program year)
The agricultural sector is financially resilient	Percentage of financially healthy farms	At least 90% Percentage of financially healthy farms is maintained at least at 90%	March 2023Table 3 note 3	86% (based on data in the 2019 Farm Financial Survey for the period from 2017–19)	Not available	92% (based on data from the 2021 Farm Financial Survey for the period 2019–21)
The agriculture and agri-food sector is equipped with assurance systems and supporting tools	Percentage of implementation plans for assurance projects reported to be functioning	Range between 65% and 85%	March 2023	Not available	Not available	Not availableTable 3 note 4
Notes: Actual results are reported for the fiscal year that data becomes available. Results that are "not available" are due to lag times in data availability, including as noted below. Table 3 note [1] This indicator demonstrates whether producers have been able to maintain their primary agriculture incomes after accounting for BRM programs. Direct payments to producers should support the sector's income to at least 85% of its five-year average. Return to table 3 note [1] referrer Table 3 note [2] There is a two-year lag in reporting this indicator due to the time to finalize BRM payment data. Results for the 2022–23 program year will be available in 2025. In 2020, this indicator's result rebounded from the previous year due, in large part, to the growth in net market income in 2020, which was boosted by rising prices and strong domestic and international demand. BRM programs are demand driven, intended to offset declines in market income, and support can vary from year to year. In 2020, BRM payments remained consistent to the 2019 level. Return to table 3 note [2] referrer Table 3 note [3] Indicator has a two-year lag time; data is only available every two years based on the Farm Financial Survey. Return to table 3 note [3] referrer Table 3 note [4] Indicator has a lag time given the long-term nature of this work. Actual results data measuring the functionality of implementation plans for assurance projects will be available in fall 2023. As of the end of the Canadian Agricultural Partnership on March 31, 2023, the Department had received a cumulative five-year total of 147 applications to the AgriAssurance program with 99 projects approved, for an average result of 19.8 against the proxy indicator of 20 applications approved per year between 2018 and 2023. Return to table 3 note [4] referrer

Financial, human resources, and performance information for AAFC's program inventory is available in GC InfoBase.

Budgetary financial resources (dollars) - Sector Risk

The following table shows, for Sector Risk, budgetary spending for 2022–23, as well as actual spending for that year.

2022–23 Main Estimates	2022–23 planned spending	2022–23 total authorities available for use	2022–23 actual spending (authorities used)	2022–23 difference (actual spending minus planned spending)
1,609,744,770	1,609,744,770	1,782,917,337	1,768,648,597	158,903,827

Note: In 2022–23, actual spending was greater than planned spending mainly due to increased expenditures under the AgriInsurance Program as a result of higher commodity prices. The increase was offset by a decrease in demand and participation in the AgriStability Program and a reduced requirement for program support under the AgriRecovery Program.

Financial, human resources, and performance information for AAFC's program inventory is available in GC InfoBase.

Human resources (full-time equivalents) - Sector Risk

The following table shows, in full‑time equivalents, the human resources the Department needed to fulfill this core responsibility for 2022–23.

2022–23 planned full-time equivalents	2022–23 actual full-time equivalents	2022–23 difference (actual full-time equivalents minus planned full‑time equivalents)
439	415	(24)

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

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

Internal services

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

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

Results highlights - Internal services

In 2022–23, internal services initiatives at Agriculture and Agri-Food Canada (AAFC) advanced broader Government of Canada objectives regarding diversity, equity, inclusion, and reconciliation; supported the Department's overall mandate; and strengthened its capacity to deliver results for Canadians. AAFC remains committed to fostering a healthy work environment — one that is diverse, inclusive, respectful, and harassment-free — while creating equitable, accessible, and modern workplaces that fuel innovation and inspire creativity.

Prioritizing diversity, equity, and inclusion in our workforce

The Department remains fully committed to implementing initiatives that help employees feel welcome, heard, and respected in a positive work environment. The Department launched its three-year (2022–25) Diversity, Equity and Inclusion Strategy and Action Plan, which builds on the strategic objectives put forth in its predecessor and outlines steps to increase representation, create an inclusive workplace, and enhance leadership and accountability. A new monitoring framework was implemented as part of the strategy to enable progress reporting across the Department, and help measure the outcomes of key activities. AAFC also launched a diversity and inclusion index, a benchmarking tool using indicators based on the representation of equity designated groups in the workforce, combined with Public Service Employee Survey responses regarding employees' views of the workplace, management, and leadership. The first index report was released in 2022–23, which helped to focus diversity, equity and inclusion efforts across the Department, including through the new Strategy, and allows for stronger progress monitoring going forward.

To continuously improve its organizational culture, AAFC implemented a number of initiatives in 2022–23 to champion the benefits of a diverse workplace that is inclusive in its employment policies and practices. The Department launched targeted recruitment efforts for employment equity groups, and implemented an inventory of diverse assessment board members to help eliminate barriers and biases in staffing processes, which facilitated multiple hires over the 2022–23 year. In addition, a new self-identification consent form enables employees from employment equity groups to signal their interest in targeted initiatives such as talent management or language training. A sponsorship program was implemented to support high-potential candidates from employment-equity groups and address representation gaps at the executive level.

AAFC also worked to increase employee awareness and engagement through its five diversity and inclusion networks, which hosted a total of 21 learning events throughout 2022–23. A new monthly communique was implemented to encourage open discussions, and a diversity, equity, and inclusion toolkit for managers was developed. It features training, resources, and guidance documents to support managers' knowledge and awareness, contributing to a more inclusive workplace.

AAFC is committed to being inclusive by design and accessible by default by ingraining accessibility in planning and decision-making, and collaborating with persons with disabilities to identify needs, resolve issues, and gauge progress. Aligned with the Accessible Canada Act regulations, the Department's Interim Accessibility Plan highlights identified accessibility challenges, and outlines priorities, targeted actions, and expected results in addressing them. The Plan also includes mechanisms for employees and members of the public to offer feedback on its implementation. This supports continuous improvements in the workplace and in the Department's policies, programs, and services for the sector. In addition, as an early adopter, AAFC has now fully implemented the Government of Canada Workplace Accessibility Passport, and employees are encouraged to use this tool to support discussions on workplace accommodation needs and options, including with regard to the hybrid work environment.

Enhancing employee wellness and engagement

In support of broader Government of Canada initiatives, the Department continued its efforts to ensure a workplace where wellness is woven into its organizational culture, processes, and practices. The Department continues to promote, track, and monitor participation in mandatory training on preventing harassment and violence in the workplace, and has made significant progress in its uptake. As of December 2022, 83% of AAFC employees had completed the training, compared to 41% in January 2022. In addition, AAFC developed new learning materials and toolkits to grow employee awareness of risk factors, their preventative measures, and how to express concern and check-in safely, including for responding to domestic and intimate partner violence, in order to reduce the risk of harassment and violence in AAFC workplaces.

Enhancing employee wellness and ensuring ongoing engagement was also a top priority for AAFC in planning for the return to the office. Throughout 2022–23, the Department continued to support remote work capabilities, while modernizing onsite workspaces to accommodate a variety of functional environments and allow for further innovation, collaboration, and productivity in delivering services to Canadians. A key principle of AAFC's approach has been to ensure employees are informed, engaged, and able to contribute to the transition to a hybrid workplace, offering employees the flexibility to work both remotely and on-site. To inform the ongoing evolution, AAFC engaged and updated employees through various meeting formats and information sessions, and conducted an employee survey in fall 2022 to assess employees' ongoing and collective needs. In addition, new communication products were developed and implemented to share information and guidance related to hybrid work at AAFC, such as etiquette guidelines, and teleworking resources.

The Department worked to update collaborative onsite workspaces by equipping more boardrooms with M365 technology for hybrid meetings, to better enable connectivity, and facilitate employees working flexibly. AAFC also onboarded to GCcoworking, a Government of Canada initiative that aims to provide alternative work locations to federal employees in various regions across Canada, allowing for more collaborative and in-office workspace options. In 2022–23, increased engagement with employees, including through departmental Diversity, Equity and Inclusion networks, as well as with union partners, enabled a better understanding of specific needs, as efforts to modernize the work environment continue to adapt and evolve at AAFC offices and research centres across the country. The Department is committed to keeping employees informed and engaged in charting the way forward.

Supporting Indigenous initiatives and advancing reconciliation

AAFC remains committed to advancing reconciliation as part of a whole-of-government approach, and to supporting Indigenous-led agriculture and food systems through its programs and services. In 2022–23, the Department updated its Indigenous Policy Framework to ensure a strategic and holistic approach to:

• enhancing cultural awareness, literacy, and departmental capacity, including by supporting Indigenous employee and student recruitment, retention, and advancement;
• fostering relationships and partnerships with Indigenous Peoples through continued engagement with Indigenous partners; and
• ensuring policies and programs are inclusive by design, and by developing and implementing strategies to help guide activities in support of Indigenous participation in agriculture and food systems.

The Indigenous Support and Awareness Office (ISAO) at AAFC continued to support the Department's Indigenous Network Circle, which provides a platform for enhanced awareness and appreciation of Indigenous Peoples and culture. The ISAO's Indigenous Awareness Learning Series delivered 52 learning sessions to 2,885 employees in 2022–23. ISAO and the Indigenous Science Liaison Office jointly delivered mandatory Indigenous cultural awareness training and science-specific Indigenous cultural literacy and intercultural competency training to over 90% of staff, researchers, and management in the Department's science branch. In addition, the construction of a ceremonial lodge in Ottawa, the Mikinàk, was completed in 2021, and opened in September 2022. Since opening, the lodge has hosted 59 tours and meetings, attended by a total of 400 AAFC employees, 100 community members, five different government departments, and two community organizations. ISAO also worked with the Department of National Defence to provide advice and support with the creation of its ceremonial lodge.

In 2022–23, the Department also joined the Indigenous Career Navigators Program which was established in response to the Many Voices, One Mind: A Pathway to Reconciliation Action Plan. Under the guidance of two AAFC Indigenous Career Navigators, the program provides advice and guidance to Indigenous employees on recruitment, retention, professional development, and career advancement. The program also provides managers with support in the recruitment and development of Indigenous employees.

In the context of ensuring continuous engagement, the Department continues to foster relationships and partnerships with Indigenous communities, organizations, and academic institutions. For example, the Indigenous Science Liaison Office supports the Department in building relationships and co-developing research projects with Indigenous partners while providing an Indigenous science lens on science policy and programming. In addition, AAFC Student Advisors resumed outreach to Indigenous communities in 2022–23 to promote the Indigenous Student Recruitment Initiative and explain the student employment opportunities available within the Department. A total of 100 students were hired in 2022–23, and the Department also actively participated in the recruitment efforts for the Government of Canada Information Technology Apprenticeship Program for Indigenous Peoples.

In terms of accessing AAFC programs and services, the Indigenous Pathfinder Service assisted 100 clients through the year to navigate information, tools and support available within the agriculture and agri-food sector. Among these clients, 43% were Indigenous Communities, 34% were Indigenous-owned and operated businesses, 13% were Indigenous organizations, and 5% were non-Indigenous businesses which have an Indigenous focus in their work.

As part of the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act, AAFC developed an internal process and environmental scan to review its current acts and regulations to ensure that they align with the Declaration. This work will feed into a larger gap analysis of the Department's policies, programs, and services. AAFC continues to implement an integrated approach to coordinate Indigenous agriculture policy and program initiatives both within the Department, and among other government partners. This approach benefits Indigenous communities by discussing and combining strategies or projects that benefit from both Indigenous knowledge and western science. The Department continues to develop analysis and advice on Indigenous agriculture issues to inform key departmental policy initiatives, including the Food Policy for Canada, and the Sustainable Canadian Agricultural Partnership. AAFC is committed to supporting the Act through the co-development and implementation of program measures, and through the promotion of food-focused research of the intersectionality of Indigenous Peoples' food security, sovereignty, and sustainability.

Managing departmental assets and real property

AAFC works to ensure the sound management of its assets, such as buildings, land, and equipment, in order to meet operational requirements and deliver quality programs and services to Canadians. In 2022–23, efforts focused on modernizing procurement practices and procedures, specifically the development and implementation of a new departmental guide to procurement. This guide has been instrumental in the assessment of procurement life cycles, enabling informed decisions that contribute to efficient and effective life-cycle management of departmental assets. The release of the guide has also helped to advance AAFC's overall modernization of material management practices and procedures planned for 2023–24.

The Department has continued to improve the sustainable management of real property under its stewardship in 2022–23, based on recommendations resulting from the horizontal fixed asset review conducted from 2017 to 2020. An Owner Investor Group was established to develop strategies and implement recommendations from the review. In addition to a 25-year real property strategy, various policies and tools were developed and implemented to support the sustainable management of AAFC's real property portfolio.

The Department continues to take action in support of federal targets under the Greening Government Strategy related to transitioning to net-zero carbon and climate-resilient operations, while reducing environmental impacts, including with respect to waste, water, and biodiversity. AAFC has made good progress with the key government-wide target to reduce greenhouse gas (GHG) emissions from federal real property and conventional fleet by 40% by 2025, and at least 90% by 2050, relative to 2005 levels. As of 2022–23, AAFC has seen a 49.2% reduction in GHG emissions from its custodial buildings and vehicle fleet relative to the 2005 base year. The Department will continue to reduce its GHG emissions predominantly through energy efficiency improvements to its custodial buildings, the procurement of 100% clean electricity by 2025, and the modernization of its fleet to zero and low-emission vehicles. Due to the nature of its mandate, AAFC has one of the largest and oldest vehicle fleets in the Government of Canada, but is committed to supporting departmental operations in a sustainable and innovative way. In 2022–23, the Department replaced 37 internal combustion engine vehicles with less emitting fleet (including hybrids, plug-in hybrids and battery electric vehicles).

Further information on the Department's contributing actions to Greening Government can be found in the Departmental Sustainable Development Strategy.

Strengthening digital service delivery, data analytics, and transparency

AAFC continues to work towards a vision of a digital government that is able to seamlessly deliver quality programs and services that are client-driven, digitally enabled, inclusive, and accessible. The Department has continued to accelerate its data and digital transformation in order to meet stakeholders' expectations while optimizing value and ensuring transparency. Targeted investments in digital technology and training or skills development have helped to modernize the Department's internal capacity to better serve stakeholders across the sector.

In 2022–23, AAFC supported digital government initiatives that help the Department adapt and compete in a fast-changing world while remaining responsive, resilient, and relevant. This included investments in the development of a diverse and skilled workforce; a connected workplace leveraging secure, reliable, and accessible digital tools; and new systems to support program delivery and improve client support. Along with its newly created Security Operations Centre, the Department continues to build digital trust through an enhanced focus on cyber security, including by adapting and enhancing security tools and surveillance to address new digital and information technology challenges.

AAFC also continues to reduce lifecycle costs of information management and information technology equipment and software, through review of its asset and software license management. Enhancing data analytics, along with the use of business intelligence, data sharing platforms, artificial intelligence, and process automation, continues to support better decision-making with a focus on achieving the best outcomes for the agriculture and agri-food sector. This is demonstrated by enabling faster technology and knowledge transfer to stakeholders, and by moving the Department towards enterprise service management concepts, processes, and technologies.

AAFC also continues to advance initiatives to make government more accessible, transparent, and accountable to everyone through continued sharing of data to the public, such as through Canada's Open Government Portal, and continues to improve the digital and data interface between stakeholders and government. In 2022–23, the Department launched a searchable catalogue of AAFC's departmental data assets that centralizes internal data sharing and automates the publication of data to the Open Government Portal.

Contracts awarded to Indigenous businesses

Under the Directive on the Management of Procurement, which came into effect in 2021, departments must ensure that a minimum of 5% of the total value of the contracts they award are held by Indigenous businesses. This requirement is being phased in over three years, and full implementation is expected by 2024. AAFC is a phase 2 organization and is aiming to achieve the minimum 5% target by the end of 2023–24.

Affirming the Department's commitment to increase the participation of Indigenous businesses in federal procurement, AAFC has modernized its Procurement Strategy for Indigenous Business (PSIB) framework to meet new obligations. The Department established an Indigenous procurement objective of 3% for fiscal year 2022–23 and plans to meet or exceed a 5% planned Indigenous procurement target for fiscal year 2023–24. In 2022–23, AAFC awarded approximately 6.2% of the year's procurement activity to Indigenous firms via PSIB set-asides and incidentals, although the Department must still complete a procurement data validation exercise on these results.

To support efforts in meeting these targets, AAFC established a PSIB working group consisting of key stakeholders from across the Department, with the goal of planning and identifying Indigenous set-aside procurements. On a Government of Canada level, AAFC has continued its participation in PSIB Interdepartmental Committees and with the Treasury Board Secretariat to ensure a consistent and unified approach to achieving the 5% target. Direct engagement between AAFC's procurement community and Indigenous suppliers continues to foster participation in procurement opportunities, while the Department seeks to identify commodities where opportunities exist to further expand its business with Indigenous suppliers. Indigenous company profiles are shared with business owner groups within the Department, encouraging set-aside procurements when qualified Indigenous suppliers are known to exist in the marketplace.

Keeping PSIB at the forefront, AAFC has mandated the completion of two Canada School of Public Service training courses on integrating Indigenous considerations in procurement for all AAFC procurement and materiel management specialists. These courses promote the use of PSIB and pre-established methods of supply that include PSIB considerations wherever possible. A communications plan was developed to ensure AAFC's procurement staff and business owners are aware of the Department's Indigenous procurement targets, and the Government of Canada's overall commitment to Indigenous communities.

Budgetary financial resources (dollars) - Internal services

The following table shows, for internal services, budgetary spending for 2022–23, as well as spending for that year.

2022–23 Main Estimates	2022–23 planned spending	2022–23 total authorities available for use	2022–23 actual spending (authorities used)	2022–23 difference (actual spending minus planned spending)
159,963,841	159,963,841	217,112,729	216,912,926	56,949,085

Note: In 2022–23, actual spending was greater than planned spending due to amounts carried forward from 2021–22, a realignment among programs and new funding received to support investments in information technology, ongoing service delivery improvements and government priorities.

Human resources (full-time equivalents) - Internal services

The following table shows, in full‑time equivalents, the human resources the Department needed to carry out its internal services for 2022–23.

2022–23 planned full-time equivalents	2022–23 actual full-time equivalents	2022–23 difference (actual full-time equivalents minus planned full‑time equivalents)
1,413	1,471	58

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

Spending and human resources

Spending

Spending 2020–21 to 2025–26

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

Description of the above image

Planned (voted and statutory spending) over time, in millions of dollars

	2020–21Tablenote 1	2021–22Tablenote 1	2022–23Tablenote 1	2023–24Tablenote 2	2024–25Tablenote 2	2025–26Tablenote 2
Statutory	1,864	2,101	2,195	818	816	816
Voted	1,174	1,361	1,411	1,009	762	751
Total	3,038	3,462	3,607	1,827	,5781	1,567

Notes:

Over the period 2020–21 to 2025–26, spending varies from a high of $3.6 billion spent in 2022–23 to a low of $1.6 billion planned for 2024–25 and 2025–26. Agriculture and Agri-Food Canada's (AAFC's) programs and initiatives vary from year to year in response to changes affecting the agriculture, agri-food and agri-based products sector as outlined below.

Actual spending was high in 2022–23 as it reflected increased support for the AgriInsurance and 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.

The decrease in planned spending starting in 2023–24 reflects that funding authorities for the new five-year Sustainable Canadian Agricultural Partnership and Dairy Direct Payment Program were not yet approved at the time of publishing the 2023–24 Departmental Plan. The funding for both are being reflected in the 2023–24 Supplementary Estimates, and will be in the 2023–24 Departmental Results Report and 2024–25 Departmental Plan.

The decrease in planned spending in 2024–25 reflects that the extension of the On-Farm Climate Action Fund stream of the Agricultural Climate Solutions Program was not yet approved at the time of publishing the 2023–24 Departmental Plan, as well as the expiry of the Wine Sector Support Program, the Food Policy Initiatives (Local Food Infrastructure Fund, Food Waste Reduction Challenge and AgriCommunication Initiative), and the African Swine Fever Industry Preparedness Program at the end of 2023–24.

The decrease in planned spending in 2025–26 reflects a decrease in funding for the Youth Employment and Skills Program.

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

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

Human resources

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

Human resources summary for core responsibilities and internal services

The increase in full-time equivalents from 2020–21 to 2023–24 is due to: staffing required to support service delivery improvements and modernization of agriculture science and technology initiatives; the Food Policy for Canada; new programs to support dairy, poultry, and egg supply-managed producers and processors; the renewal of the Agricultural Clean Technology Program and the new Agricultural Climate Solutions Program as part of the Emissions Reduction Plan; the Wine Sector Support Program; as well as the African Swine Fever Industry Preparedness Program. This was offset by the expiry of the Dairy Direct Payment Program at the end of 2022–23, as the extension was not yet approved at the time of publishing the 2023–24 Departmental Plan. Although the new five-year Sustainable Canadian Agricultural Partnership funding authorities were not yet approved at the time of publishing the Plan, it was anticipated that full-time equivalents would remain consistent with the Canadian Agricultural Partnership.

The decrease in planned full-time equivalents starting in 2024–25 reflects that the extension of the On-Farm Climate Action Fund stream of the Agricultural Climate Solutions Program was not yet approved at the time of publishing the 2023–24 Departmental Plan. The decrease is also due to the expiry of the Food Policy Initiatives (Local Food Infrastructure Fund and Food Waste Reduction Challenge), the Wine Sector Support Program, and the African Swine Fever Industry Preparedness Program at the end of 2023–24.

Expenditures by vote

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

Government of Canada spending and activities

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

Financial statements and financial statements highlights

Financial statements

Agriculture and Agri-Food Canada's consolidated financial statements (unaudited) for the year ended March 31, 2023, are available on the Department's website.

Financial statement highlights

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

Condensed statement of operations (unaudited) for the year ended March 31, 2023 (dollars)

The 2022–23 planned results information is provided in AAFC's Future-Oriented Statement of Operations and Notes 2022–23.

Condensed statement of financial position (unaudited) as at March 31, 2023 (dollars)

The 2022–23 planned results information is provided in AAFC's Future-Oriented Statement of Operations and Notes 2022–23.

Expenses and revenues

Expenses incurred and revenues earned, in support of Agriculture and Agri-Food Canada's programs and services that benefited Canadians during 2022–23, are detailed in the following graphs.

Expenses by core responsibility

Total expenses were $3,213.4 million in 2022–23, an increase of $144.8 million from the previous year's total expenses of $3,068.6 million. The increase was primarily attributable to increased spending in AgriInsurance, AgriStability Programs, and the Emissions Reduction Plan programs such as the Agricultural Climate Solutions and Agricultural Clean Technology Programs. In addition, there was new spending in the Wine Sector Support Program. The increase was offset by a decrease in the AgriRecovery Program due to reduced requirements for program support and the end of spending on COVID–19 initiatives.

Planned expenses for 2022–23 were $2,878.2 million compared to actual expenses of $3,213.4 million. Actual expenses were $335.2 million higher than planned mainly due to demand driven programs like AgriInsurance and AgriInvest Programs. In addition, there was new programming, such as the Wine Sector Support Program.

Revenues by type

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

Total revenue is presented in the departmental consolidated financial statements net of revenues earned on behalf of government which amounted to $42.1 million. Total net revenues in 2022–23 were $64.2 million as compared to $53.8 million in 2021–22. The increase of $10.4 million was mainly attributable to increases in our research agreements and services provided to other government departments.

Liabilities

Liabilities arising from departmental activities at the end of 2022–23 were $1,124.1 million, a decrease of $377.4 million compared to the previous year's liabilities of $1,501.5 million. The decrease was primarily in the Department's accounts payable and accrued liabilities, mainly due to the decrease of accrual as payments were made under the Dairy Direct Payment Program, offset by increased accounts payable in support of programs. The Department does not hold any liabilities on behalf of government.

Liabilities by type

Assets

At the end of 2022–23, the Department held total financial assets of $1,320.4 million, consisting primarily of the asset due from the Consolidated Revenue Fund. This category represents the net amount of cash that the Department was entitled to draw from the Consolidated Revenue Fund without further authorities to discharge its liabilities. Taking into account financial assets held on behalf of government which were $310.0 million, total net financial assets at the end of 2022–23 were $1,010.4 million, a decrease of $376.5 million from the previous year's net financial assets of $1,386.9 million. The change in total net financial assets was primarily attributable to a decrease in the amounts due from the Consolidated Revenue Fund, mainly due to a decrease in accrual relating to the Dairy Direct Payment Program as payments were made. The Department also held non-financial assets totaling $481.4 million at March 31, 2023, an increase of $22.0 million from last year's $459.4 million.

Assets by type

Corporate information

Organizational profile

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

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

"Raison d'être, mandate and role: who we are and what we do" is available on AAFC's website.

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

Operating context

Information on the operating context is available on AAFC's website.

Reporting framework

Agriculture and Agri-Food Canada's approved departmental results framework and program inventory of record for 2022–23 are shown below.

Agriculture and Agri-Food Canada Program Inventory (2022–23)

	Domestic and International Markets	Science and Innovation	Sector Risk	Internal Services
Programs	Trade and Market Expansion Sector Engagement and Development Farm Products Council of Canada Supply Management InitiativesTablenote 1 Canadian Pari-Mutuel Agency Food Policy Initiatives Water Infrastructure DivestitureTablenote 2 Federal, Provincial, and Territorial Cost-shared Markets and Trade	Foundational Science and Research AgriScience AgriInnovate Environment and Climate Change ProgramsTablenote 3 Canadian Agricultural Strategic Priorities Program Federal, Provincial, and Territorial Cost-shared Science, Research, Innovation and Environment	AgriStability AgriInsurance AgriRisk AgriInvest AgriRecovery Loan Guarantee Programs Farm Debt Mediation Service Pest Management Assurance Program Federal, Provincial, and Territorial Cost-shared Assurance Return of Payments African Swine Fever ResponseTablenote 4	Management and Oversight Services Communication Services Legal Services Human Resources Management Services Financial Management Services Information Management Services Information Technology Services Real Property Management Services Material Management Services Acquisition Management Services
Notes: Table 7 note [1] Beginning in 2022–23, Dairy Programs was renamed as Supply Management Initiatives, to better capture the nature of the program in light of initiatives that were added. Return to table 7 note [1] referrer Table 7 note [2] Water Infrastructure Divestiture was added to the program inventory during the 2022–23 fiscal year, following the publication of the Departmental Plan, as per the approved Treasury Board Submission, "Funding for the Transfer of Federal Water Infrastructure in Saskatchewan". Return to table 7 note [2] referrer Table 7 note [3] Beginning in 2022–23, the Agricultural Greenhouse Gases Program was renamed as Environment and Climate Change Programs, to better capture the nature of the program in light of initiatives that were added. Return to table 7 note [3] referrer Table 7 note [4] African Swine Fever Response was added to the program inventory during the 2022–23 fiscal year, following the publication of the Departmental Plan, as per the approved Treasury Board Submission, "Funding to support pre-paredness, prevention and trade continuity in response to African Swine Fever." Return to table 7 note [4] referrer

Supporting information on the program inventory

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

Supplementary information tables

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

• Reporting on green procurement
• Details on transfer payment programs
• Gender-based analysis plus (GBA Plus)
• Response to parliamentary committees and external audits
• United Nations 2030 Agenda and the Sustainable Development Goals

Federal tax expenditures

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

Organizational contact information

Appendix: definitions

appropriation

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

budgetary expenditures

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

core responsibility

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

Departmental Plan

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

departmental priority

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

departmental result

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

departmental result indicator

A quantitative measure of progress on a departmental result.

departmental results framework

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

Departmental Results Report

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

full‑time equivalent

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

gender-based analysis plus (GBA Plus)

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

government-wide priorities

For the purpose of the 2022–23 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; fighter 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

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

Indigenous business

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, an organization that meets the definition and requirements as defined by the Indigenous Business Directory.

non‑budgetary expenditures

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

performance

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

performance indicator

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

performance reporting

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

plan

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

planned spending

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

program

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

program inventory

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

result

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

statutory expenditures

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

target

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

voted expenditures

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