Manitoba Agriculture, Food and Rural Initiatives. Agriculture, Alimentation et Initiatives rurales Manitoba

Transcription

1 Manitoba Agriculture, Food and Rural Initiatives Agriculture, Alimentation et Initiatives rurales Manitoba Annual Report Rapport annuel

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5 Son Honneur l honorable Philip Lee Lieutenant-gouverneur du Manitoba Palais législatif, bureau 235 Winnipeg (Manitoba) R3C 0V8 Monsieur le Lieutenant-Gouverneur, J ai le privilège de présenter à Votre Honneur, à des fins d examen, le rapport annuel du ministère de l Agriculture, de l Alimentation et des Initiatives rurales du Manitoba pour l exercice terminé le 31 mars Le tout respectueusement soumis. Original Signed By Ron Kostyshyn Le ministre de l Agriculture, de l Alimentation et des Initiatives rurales, Ron Kostyshyn

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11 Bureau du sous-ministre Palais législatif, bureau 159 Winnipeg (Manitoba) R3C 0V8 Tél. : Monsieur Ron Kostyshyn Ministre de l Agriculture, de l Alimentation et des Initiatives rurales Gouvernement du Manitoba Monsieur le Ministre, J ai l honneur de vous présenter le rapport annuel du ministère de l Agriculture, de l Alimentation et des Initiatives rurales du Manitoba pour l exercice terminé le 31 mars L industrie agricole du Manitoba est un moteur essentiel de la productivité et de la prospérité de notre province. En 2011, la puissance de notre secteur de production primaire a permis de générer plus de deux milliards de dollars en exportations de produits agroalimentaires transformés intermédiaires et de consommation. Au Manitoba, un emploi sur dix dépend des retombées directes et indirectes de l agriculture. Grâce à la richesse des produits primaires cultivés dans la province, à notre capital naturel constitué de nos terres, de notre eau et de notre environnement sain, et à la demande mondiale croissante d'aliments de qualité, l avenir à long terme de notre industrie agricole est prometteur. Dans cette industrie qui dépend tellement des conditions météorologiques, les défis rencontrés par les producteurs du Manitoba ne sont pas rares. L année 2011 n a pas fait exception à la règle. Les inondations et une humidité excessive ont représenté des défis majeurs et ont exigé des efforts considérables de la part du personnel de notre ministère ainsi que la création d une large gamme de programmes, en plus d une aide d environ 600 millions de dollars fournie par nos programmes permanents fédéraux et provinciaux de gestion des risques de l entreprise. La hausse du taux de remboursement de la taxe scolaire applicable aux terres agricoles, qui est passé de 75 à 80, ainsi qu'un montant total de 31,6 millions de dollars ont également bénéficié au revenu agricole net. Notre industrie est solide et nous continuons à nous appuyer sur nos forces et à créer de nouvelles occasions, tout en ne perdant pas de vue les impacts potentiels de questions comme le changement climatique. Le Manitoba reste un chef de file de la diversification des cultures. La réouverture du marché sud-coréen rend les éleveurs de bétail optimistes. L agrandissement de l usine de transformation de la société Aliments Maple Leaf à Winnipeg, un projet de 85 millions de dollars, créera des emplois et contribuera grandement à l économie du Manitoba.

12 Les changements apportés à la Commission canadienne du blé créent un nouvel environnement commercial pour les producteurs. Le ministère a commencé à informer les producteurs au sujet des différentes possibilités qui s offrent à eux et continue d encourager le gouvernement fédéral à soutenir la nouvelle Commission canadienne du blé ainsi que le port de Churchill. Les programmes agricoles favorisent le dynamisme de l économie et tentent d apporter des solutions aux questions concernant la santé et les maladies chroniques, les collectivités rurales, l'environnement et les bioproduits renouvelables. L investissement de 1,3 million de dollars effectué dans le cadre des programmes de salubrité des aliments de Cultivons l avenir a permis à l industrie d être au premier rang de la salubrité des aliments et d'offrir des programmes novateurs qui établissent de nouvelles normes. À cela s ajoutent nos travaux sur l élaboration du concept de régime alimentaire avantagé par le climat canadien (Canadian Climate Advantage Diet), l agrandissement du Centre de développement de produits alimentaires, et le partenariat avec le réseau de recherche en agrosanté du Manitoba, dont les installations de recherche et de développement de classe mondiale continuent à commercialiser des produits cultivés localement dont les bénéfices pour la santé ont été démontrés scientifiquement. Les collectivités rurales font partie de nos priorités, comme le montre l Initiative de développement économique rural qui a fourni une aide de 15 millions de dollars et a généré plus de 30 millions de dollars pour des projets de développement économique dans les régions rurales et du nord de la province. Le ministère a travaillé en collaboration avec les collectivités sur le soutien apporté aux immigrants, l'acquisition de compétences en leadership et en affaires, l agritourisme et l accroissement de la production agricole dans le nord. Les exploitations agricoles familiales sont le pilier de l industrie agroalimentaire du Manitoba et le ministère continue d aider les jeunes agriculteurs à planifier les relèves d entreprise. Au cours des deux dernières périodes de recensement, la population rurale du Manitoba a augmenté plus rapidement que la population urbaine. La population rurale représente maintenant 29 % de la population de la province, qui s élève à 1,25 million d habitants. Les producteurs et l'industrie continuent d étudier de nouvelles sources de revenu, tout en gardant à l esprit la nécessité d un développement écologiquement viable. Le gouvernement et le secteur ont travaillé ensemble à l élaboration de pratiques de gestion durable. L année dernière, le gouvernement a aussi accordé des mesures d encouragement fiscal ainsi qu une aide de sept millions de dollars aux producteurs, afin qu ils puissent installer des systèmes de traitement du fumier, renforcer leurs capacités de stockage et explorer de nouveaux systèmes de gestion des déchets en vue de protéger les ressources hydriques. Un programme de promotion de la biomasse a fourni une aide de $ visant à favoriser la réduction de l utilisation du charbon au profit de la biomasse, un combustible fabriqué au Manitoba avec des résidus comme la paille et qui constitue un nouveau domaine d activité.

13 Ces progrès sont le résultat de partenariats avec d autres ordres de gouvernement, l industrie et les producteurs. Nous nous tournons également vers l avenir et travaillons avec tous nos partenaires à la planification de Cultivons l'avenir 2, qui continuera de privilégier la rentabilité, la durabilité novatrice, la croissance et la capacité de s adapter aux risques et de les gérer. Le tout respectueusement soumis. Orignal Signed By Barry Todd Le sous-ministre, Barry Todd

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15 2011/12 Highlights Manitoba Agriculture, Food and Rural Initiatives (MAFRI s) priorities for the 2011/12 fiscal year remained balanced between activities related to: farm production and profitability, product commercialization, rural development and economic growth, environmental sustainability, and health and wellness. The department s other major focus was aimed at programs to assist Manitobans affected by flooding, excess moisture and other weather-related challenges. With the Growing Forward (GF) Agreement in its fourth year, the department has been consulting with industry and using its Agriculture as a Solution framework to guide planning for the next federal/provincial agreement after 2012/13. The concept of Agriculture as a Solution is that the agriculture sector is a major economic generator in the Province of Manitoba, and a solution to: the health and chronic disease issues facing society; environmental changes; the growing need for green and renewable bioproducts; and the way to accelerate prosperity and capacity in rural communities. Farm Profitability Farm cash receipts totalled $4.9 billion, which is an increase of 0.8% from A 6.8% increase in livestock receipts mainly due to strong hog receipts was offset by a decrease (8.8%) in the crop sector as excess precipitation resulted in approximately three million acres of unseeded land as well as production loss for seeded crops. The federal/provincial business risk management programs under the Growing Forward Framework helped return producers to close to the previous five year total average income level, with 2011 payments of $599.3 million, consisting of AgriInvest ($42.2 million), AgriInsurance ($255.7 million net of producer premiums), AgriStability ($161.8 million), and AgriRecovery ($139.6 million). The above amount for AgriInsurance includes $162.3 million in Excess Moisture Insurance. The extreme weather and flooding significantly contributed to the above amounts. The federal/provincial AgriRecovery programs, which were negotiated in response to these weather events totalled $139.6 million, and were comprised of the following: o Manitoba Excess Moisture Assistance Program (MEMAP) - $30 per acre for unseeded and flooded land; o Manitoba Forage Restoration Assistance Program (MFRAP) - $50 per acre for reseeded forage and forage seed stands; o Manitoba Transportation Assistance Program (MTAP) - compensation for cost of moving feed to animals or animals to feed; o Manitoba Forage Shortfall Assistance Program (MFSAP) - $0.60 per cow/calf pair per day to purchase feed for summer and winter needs; o Manitoba Greenfeed Assistance Program (MGAP) - $15 per acre for crops that were planted and harvested as greenfeed, thereby increasing the supply of feed; and o Manitoba Infrastructure and Individual Assessment Program (MIIAP) - assistance for producers affected by excess moisture and flooding who were not eligible for Disaster Financial Assistance due to the limitations of that program. A 2011 AgriRecovery program triggering $219 thousand in payments was also negotiated for costs incurred to recover from a 2010 outbreak of avian influenza in turkeys. The Flood 2011 Building and Recovery Action Plan (BRAP) helped families, producers, businesses and communities cope with flooding and build for future flood mitigation. MAFRI s administration assistance and related payments are reflected centrally in government s Emergency Expenditure appropriation. BRAP included the Hoop and Holler Compensation Program, Lake Manitoba Financial Assistance Program, Lake Dauphin Emergency Flood Protection Program, Excess Moisture Economic Stimulus Program and the Dauphin River Flood Assistance Program. Staff assisted at the Emergency Operations Centre and the Flood Recovery Office, assisted in establishing the Appeals

16 Commission office and consulted with municipalities, industry, First Nations and other clients. A State of Emergency for livestock producers was declared, which enabled the use of Crown land (not currently permitted for agriculture use) to house livestock and move machinery to dry locations. Agricultural producers dealing with high water (approximately 42,000 acres of private and 22,000 acres of Crown leased agricultural land) in the Shoal Lakes area received $4.5 million for lost income, related transportation costs and voluntary buy-outs. These costs are reflected centrally in government s Emergency Expenditure appropriation. There were 1,335 claims from producers for animals that died as a result of the late April blizzard, with $6.7 million of compensation being provided. These costs are reflected centrally in government s Emergency Expenditure appropriation. A multi-year $888 thousand federal/provincial pilot project is underway in the RM of Bifrost to assess longer term options for water management for agricultural lands. Enhancements to AgriInsurance were approved in 2011/12, continuing to strengthen risk management programs. Starting in 2012, an Excess Moisture Insurance top up option of $15 per acre has been added, Forage Establishment Insurance increased from $60 to $70 per acre and the Forage Restoration Benefit that compensates for forage stands lost due to excess moisture has been increased from $60 to $70 per acre. The Manitoba Agricultural Services Corporation (MASC) provided credit support of $107.7 million in new loans and loan guarantees that facilitated another $74.2 million in private sector loans in 2011/12. MAFRI provided information to promote Manitoba s agriculture and agri-food sector interests in areas such as the European Trade Agreement, North American Tri-National Accord, the Trans-Pacific Partnership, and the Country of Origin Labelling (COOL) challenge brought before the World Trade Organization s (WTO) appeals panel. The Farmland School Tax Rebate rose from 75 to 80 percent, providing $31.6 million in 2011 tax year rebates, which directly increased net farm income. Food and Agri-Food Product Commercialization The Growing Forward (GF) Innovation Suite in 2011/12 advanced $7.7 million in strategic support and $2.5 million toward industry-led innovation to a number of organizations including the Food Development Centre, University of Manitoba, Prairie Agricultural Machinery Institute (PAMI), crop diversification centres and the Agri-Food Research and Development Initiative (ARDI), which together serve as the foundation for Manitoba agri-food research, development and commercialization infrastructure. The October 2011 announcement of the Maple Leaf Foods expansion is expected to create 350 new jobs and receive GF innovation funds in the future. Work continued on the Food Development Centre (FDC) expansion that will establish it as a Food Centre of Excellence. Four businesses were created and 14 new food products were launched into the retail food market. FDC continued to pursue projects in India, with Central Government of India partners in Bihar, Punjab and Haryana, commercial partners in West Bengal and academic partners in Kamataka. MAFRI supported the Great Tastes of Manitoba television program which promotes local food and commodity groups and with over 30 shows, achieved over a million adult viewers across Manitoba.

17 FDC, in partnership with the Manitoba Food Processors Association, the Food Safety Initiative and Manitoba Agri-Health Research Network (MAHRN) organized a Sodium Reduction Seminar for the food industry. The government wide $5 million Commercialization Support for Business program approved $198.4 thousand and released $71 thousand to 16 projects designed to support food business start-ups and the development of innovative products. Rural Development and Economic Growth The Buy Manitoba Program was successfully launched to the food industry in December It was launched publicly in April 2012 in 33 Canada Safeway stores throughout Manitoba, raising the profile of approximately 1,000 Manitoba products. The Manitoba Food Processors Association (MFPA) is the administrator of the program. The Rural Entrepreneur Assistance (REA) Program approved 37 loan guarantees with total loans valued at $4.3 million. The result was the creation of the equivalent of 90 full-time jobs in rural Manitoba. Manitoba s seven Regional Development Corporations received $490.1 thousand which was used for 38 regional community economic development projects. The Community Enterprise Development Tax Credit program approved five community-based enterprise development projects, which are estimated to generate $3.2 million in private investments. The corresponding personal income tax credits are estimated at $960 thousand. The memorandum of agreement with the Rural Development Institute at the Brandon University was renewed for a five year period for a total investment of $545 thousand. The $100 thousand contribution for 2011/12 supported eight rural community and economic development research projects. Capturing Opportunities 2011 focused on the biobased economy and drew 2,101 individuals. The event also hosted the fifth annual Great Manitoba Food Fight with product development awards totalling $30 thousand, and the Entrepreneur Boot Camp. A total of 2,712 4-H projects were completed by 4-H youth to develop practical marketable skills. In addition, the Manitoba 4-H Council received $12 thousand in funding support. The Hometown Manitoba Program approved $560.5 thousand to 294 projects which leveraged an additional $3 million from rural communities and organizations to improve public areas and enhance local economic activity. The Keystone Centre received $550 thousand towards operations and costs, secured a national horse show and maintained its status as one of Western Canada s premier conference centres and an economic driver for the City of Brandon. AgriTourism training workshops for farmers were provided to five communities in conjunction with Travel Manitoba and the Direct Farm Marketing Conference. The second Open Farm Day occurred on September 18, 2011 which attracted 4,200 visitors to 44 host farms. In addition, 475 people attended two community supper events, raising $12.3 thousand for community organizations. Ag Days 2012 attracted approximately 34,000 participants resulting in a significant injection into the Brandon economy.

18 Environmental Sustainability MAFRI led a number of ecological goods and services (EG&S) projects, met with stakeholders, completed an evaluation report and drafted an EG&S policy framework. The Manure Management Financial Assistance Program (MMFAP), which is a federal/provincial initiative provided $7.08 million to 43 projects in its first year of operation including $240 thousand to PAMI for treatment system research. MAFRI assisted Manitoba Finance in setting up the new Nutrient Management Tax Credit which effectively is equal to 10% of the producer s capital cost of prescribed equipment to treat manure. A new Manitoba Biomass Energy Support Program that supports coal reduction and biomass production from residues like straw provided $400 thousand to 13 coal users who switched to biomass. The department was also involved with PAMI on the testing of the commercial readiness of a mobile straw densification machine. The Manitoba Sustainable Agriculture Practices Program (MSAPP), which was in its final year, provided $1.86 million to 130 projects reducing greenhouse gas emission and providing climate change adaptation benefits. During 2011/12, the Growing Forward (GF) Environment Suite encouraged operational improvements with $3.5 million for soil mapping, as well as 113 projects through the Environmental Farm Action Program, Agricultural Sustainability Initiatives and Agri-Extension Environment. Health and Wellness The Growing Forward (GF) Food Safety Suite provided approximately $1.3 million towards projects improving food safety and traceability on-farm and post-farm. Four food safety audits and 392 inspections as well as surveys have indicated a significant positive behavioural change to food safety which is supported by the large participation in programs and outreach activities. An information-sharing agreement with the Canadian Food Inspection Agency (CFIA) resulted in the development of MAFRI s database of approximately 5,000 premises to date, becoming a critical pillar of a national traceability system. Grants of $464.1 thousand were distributed amongst 27 veterinary service districts, along with funding of $180 thousand to upgrade equipment in rural veterinary clinics. CFIA was informed of three cases of Laryngotracheitis, two cases of Anthrax and one case of equine herpes which is not a reportable disease but has a Canada wide advisory issued. A roundworm parasite (Toxocara vitulorum) was also discovered in bison calves and is the first case diagnosed in Canada. Thirteen (13) Manitoba students accepted to the Western College of Veterinary Medicine each received $1.2 thousand in scholarships and support from MAFRI. All six students who received scholarships and graduated in 2011 returned to work in rural Manitoba. The Crop Residue Burning Authorization Program issued only 172 permits in 2011, substantially fewer than the over 1,000 permits issued in While the lower number was mainly due to weather, it was assisted by the straw management alternatives promoted to minimize health, environmental and safety impacts.

19 The Growing Forward (GF) Northern Agricultural Programming and Northern Healthy Foods Initiative held a successful Northern Harvest Forum in The Pas and approved six applications across various northern communities for new agricultural production systems to improve access to healthy food. MAFRI advanced the development of the Canadian Climate Advantage Diet by facilitating collaboration between Manitoba Healthy Living, Seniors and Consumer Affairs, Manitoba Health, researchers, industry associations and other stakeholders from across Canada. Science has shown that buckwheat, oats, potatoes, hemp, canola, flax and dairy have important health attributes.

20 Points saillants en Les priorités d Agriculture, Alimentation et Initiatives rurales Manitoba pour l exercice financier ont continué de porter sur les domaines suivants : les exploitations agricoles et leur rentabilité, la commercialisation de produits, le développement en milieu rural et la croissance économique, la durabilité de l environnement, la santé et le bien-être. Le ministère a également concentré ses efforts sur les programmes d aide aux Manitobains touchés par les inondations, l humidité excessive et d autres défis liés aux conditions climatiques. L entente Cultivons l avenir étant dans sa quatrième année d existence, le ministère a consulté le secteur et a utilisé le cadre Solutions agricoles afin de guider la planification du prochain accord entre le gouvernement fédéral et la Province qui entrera en vigueur après Solutions agricoles considère le secteur agricole comme un moteur économique majeur du Manitoba qui permet d apporter des solutions aux questions relatives à la santé et aux maladies chroniques, aux changements climatiques et à la demande croissante de bioproduits renouvelables et écologiques et comme un moyen d accroître la prospérité et la capacité des collectivités rurales. Rentabilité des exploitations agricoles Les recettes monétaires agricoles se sont élevées à 4,9 milliards de dollars, ce qui représente une augmentation de 0,8 % par rapport à La hausse de 6,8 % des recettes des productions animales, principalement due à une augmentation des recettes tirées de l industrie porcine, a été contrebalancée par une baisse de 8,8 % des recettes du secteur des cultures. En effet, en raison de précipitations excessives, environ trois millions d'acres de terres n ont pas été ensemencés et des pertes de production ont été constatées dans les champs ensemencés. Les programmes de gestion des risques de l entreprise des gouvernements fédéral et provincial, offerts dans le cadre de l entente Cultivons l avenir, ont permis de rapprocher le revenu des producteurs du niveau de revenu moyen total des cinq dernières années, grâce à des contributions atteignant 599,3 millions de dollars en 2011, réparties entre les programmes Agri-investissement (42,2 millions), Agri-protection (255,7 millions nets des primes des producteurs), Agri-stabilité (161,8 millions) et Agri-relance (139,6 millions). La somme susmentionnée pour le programme Agriprotection comprend la garantie contre l humidité excessive, d un montant de 162,3 millions de dollars. Les conditions météorologiques extrêmes ainsi que les inondations ont eu des répercussions importantes sur les sommes susmentionnées. Un total de 139,6 millions de dollars ont été versés dans le cadre des programmes d Agri-relance des gouvernements fédéral et provincial, négociés en réponse à ces phénomènes météorologiques et comprenant : o le Programme Canada-Manitoba d aide pour les pertes causées par l'excès d'eau : indemnités de 30 $ par acre pour les surfaces non ensemencées et inondées; o le Programme d aide au rétablissement des cultures fourragères du Manitoba : indemnités de 50 $ par acre pour les cultures fourragères réensemencées et les peuplements de graines fourragères; o le Programme manitobain d aide au transport : dédommagement des coûts liés au déplacement des animaux vers leur nourriture ou au transport des aliments vers les animaux; o le Programme manitobain d aide à l affouragement : 0,60 $ par paire (vache et veau) et par jour pour l achat de fourrage d hiver et d été; o le Programme manitobain d aide pour la production de fourrage vert : 15 $ par acre pour les cultures qui ont été semées et récoltées comme fourrage vert, faisant ainsi augmenter les réserves de fourrage; o le Programme manitobain d évaluation et d indemnisation des pertes : aide aux producteurs qui ont été touchés par les inondations et l excès d humidité mais qui ne sont pas admissibles au Programme d aide financière aux sinistrés en raison de restrictions s appliquant à ce programme.

21 On a également négocié en 2011 un programme d Agri-relance de $ destiné à couvrir les frais découlant d une épidémie de grippe aviaire dans le secteur de l élevage des dindes en Le Plan d indemnisation et de construction à la suite de l inondation de 2011 a aidé les familles, les producteurs, les entreprises et les collectivités à faire face aux inondations et à mettre en place des mesures d'atténuation des inondations futures. L aide apportée par Agriculture, Alimentation et Initiatives rurales Manitoba pour l administration ainsi que les contributions connexes apparaissent de manière centralisée dans les crédits affectés aux dépenses d urgence du gouvernement. Le Plan d indemnisation et de construction à la suite de l inondation de 2011 comprenait le Programme d indemnisation pour les sinistrés de la brèche contrôlée à Hoop and Holler Bend, le Programme d aide financière aux sinistrés des inondations du lac Manitoba, le Programme de protection d urgence contre les inondations du lac Dauphin, le Programme de stimulation économique dans les régions touchées par l'humidité excessive et le Programme d aide aux pêcheurs commerciaux touchés par les inondations de la rivière Dauphin. Le personnel a apporté son soutien au centre des opérations d urgence ainsi qu au Bureau d indemnisation des victimes des inondations, a aidé à la création du bureau de la Commission d appel et s est entretenu avec les municipalités, l industrie, les Premières Nations et d autres clients. La déclaration d un état d urgence pour les éleveurs de bétail leur a permis d utiliser des terres publiques (il est actuellement interdit de s'en servir comme terres agricoles) afin de mettre le bétail et les machines à l abri dans des endroits secs. Les producteurs agricoles touchés par les niveaux élevés de l eau dans la région des lacs Shoal (environ acres de terres privées et acres de terres domaniales agricoles louées) ont reçu 4,5 millions de dollars pour compenser les pertes de revenu ainsi que les rachats volontaires et couvrir les frais de transport connexes. Ces coûts apparaissent de manière centralisée dans les crédits affectés aux dépenses d urgence du gouvernement. Il y a eu réclamations déposées par des éleveurs dont des animaux sont morts lors du blizzard de fin avril et 6,7 millions de dollars ont été versés en compensation. Ces coûts apparaissent de manière centralisée dans les crédits affectés aux dépenses d urgence du gouvernement. Un projet pilote pluriannuel fédéral et provincial de $ est en cours dans la municipalité rurale de Bifrost, afin d évaluer des possibilités à plus long terme de gestion des eaux pour les terres agricoles. En , des améliorations au programme Agri-protection ont été approuvées en vue de continuer à renforcer les programmes de gestion des risques. En 2012, une option de supplément de garantie contre l humidité excessive de 15 $ par acre a été mise en place. L Assurance relative aux cultures fourragères en début d exploitation est passée de 60 à 70 $ par acre et les prestations pour le rétablissement de cultures fourragères, qui compensent les pertes de peuplements de cultures fourragères dues à un excès d'humidité, sont également passées de 60 à 70 $ par acre. La Société des services agricoles du Manitoba a offert une aide de 107,7 millions de dollars en nouveaux prêts et garanties de prêts, ce qui a permis le versement additionnel de 74,2 millions de dollars en prêts au secteur privé en Agriculture, Alimentation et Initiatives rurales Manitoba a fourni des renseignements afin de promouvoir les intérêts du secteur manitobain de l agriculture et de l agroalimentaire concernant, entre autres, l accord commercial avec l Union européenne, l accord trinational nord-américain, le Partenariat transpacifique et la plainte à propos de l'étiquetage indiquant le pays d origine soumise au comité d appel de l Organisation mondiale du commerce. Le taux de remboursement de la taxe scolaire applicable aux terres agricoles est passé de 75 à 80 % et a fourni 31,6 millions de dollars pour l année d imposition 2011, ce qui a eu un effet direct sur le revenu agricole net qui a augmenté.

22 Commercialisation des produits alimentaires et agroalimentaires En , le volet d innovation de Cultivons l avenir a avancé 7,7 millions de dollars destinés au soutien stratégique et 2,5 millions pour l innovation menée par l industrie à un certain nombre d organismes dont le Centre de développement de produits alimentaires, l Université du Manitoba, l Institut de la machinerie agricole des Prairies, les centres de recherche sur la diversification des cultures et l Initiative de recherche et de développement en agroalimentaire, qui forment le cœur de l infrastructure du Manitoba en matière de recherche, de développement et de commercialisation en agroalimentaire. L agrandissement de l usine Aliments Maple Leaf, qui a été annoncé en octobre 2011, devrait créer 350 emplois et la société devrait recevoir par la suite des fonds d innovation de Cultivons l'avenir. Les travaux d agrandissement du Centre de développement de produits alimentaires se sont poursuivis afin d en faire un centre d excellence en alimentation. Quatre entreprises ont été créées et 14 nouveaux produits alimentaires ont été lancés sur le marché du détail. Le Centre de développement de produits alimentaires continue ses projets en Inde, en collaboration avec des partenaires gouvernementaux des États du Bihar, du Punjab et de l Haryana, des partenaires commerciaux du Bengale-Occidental et des partenaires universitaires du Kamataka. Agriculture, Alimentation et Initiatives rurales Manitoba a soutenu le programme de télévision The Great Tastes of Manitoba, qui fait la promotion d aliments et de groupements de producteurs spécialisés locaux. Avec plus de 30 émissions, le programme a atteint plus d un million de téléspectateurs adultes dans toute la province. Le Centre de développement de produits alimentaires a organisé un séminaire sur la réduction de sodium destiné à l industrie alimentaire, en partenariat avec la Manitoba Food Processors Association, l Initiative de salubrité des aliments et le réseau de recherche en agrosanté du Manitoba. Le Programme gouvernemental d aide à la commercialisation destinée aux entreprises de cinq millions de dollars a approuvé une contribution de $ et a versé une somme de $ pour 16 projets visant à appuyer les nouvelles entreprises alimentaires et le développement de produits novateurs. Développement et croissance économique en milieu rural En décembre 2011, le programme Achetez manitobain a été lancé avec succès dans le secteur alimentaire. Il a officiellement été mis en place en avril 2012 dans 33 magasins Canada Safeway de la province et fait la promotion d environ produits manitobains. La Manitoba Food Processors Association est responsable de ce programme. Dans le cadre du Programme d aide aux entrepreneurs ruraux, 37 garanties de prêts ont été approuvées pour des prêts totalisant 4,3 millions de dollars. On a ainsi créé l équivalent de 90 emplois à temps plein dans les régions rurales du Manitoba. Les sept sociétés de développement régional du Manitoba ont reçu $, qui ont été utilisés pour financer 38 projets régionaux de développement économique communautaire. Le Programme de crédit d impôt pour l expansion des entreprises dans les collectivités a approuvé cinq projets de développement d entreprises communautaires, qui devraient générer des investissements privés de 3,2 millions de dollars. On estime à $ les crédits d impôt sur le revenu des particuliers. Un investissement total de $ a permis de renouveler le protocole d entente conclu avec l Institut de développement rural de l Université de Brandon pour une période de cinq ans. En 2011-

23 2012, une contribution de $ a soutenu huit projets de recherche dans les domaines du développement économique et des collectivités rurales. Le forum Saisir les occasions 2011 a mis l accent sur la bioéconomie et a attiré personnes. La manifestation a également accueilli le cinquième grand concours annuel du meilleur produit alimentaire du Manitoba, durant lequel des prix de développement de produit totalisant $ ont été remis, ainsi qu'un camp d'entraînement pour entrepreneurs. Des jeunes du programme 4-H ont mené à bien projets qui leur ont permis de développer des compétences pratiques très recherchées sur le marché du travail. De plus, le Conseil des 4-H du Manitoba a reçu une aide financière de $. Le programme Fiers chez nous a approuvé une contribution de $ à 294 projets, ce qui a généré un montant additionnel de trois millions de dollars venant de collectivités et d organismes ruraux en vue d améliorer les endroits publics et de favoriser les activités économiques locales. Le Keystone Centre a reçu une aide de $ destinée à financer ses opérations et ses coûts et a accueilli un concours hippique national. Il est resté l un des centres de conférences les plus importants de l Ouest canadien et un moteur de l'économie de la ville de Brandon. Des ateliers de formation en agritourisme ont été offerts aux agriculteurs de cinq collectivités en collaboration avec Voyage Manitoba et la conférence Direct Farm Marketing. La seconde Journée portes ouvertes sur les fermes s est déroulée le 18 septembre 2011 et a accueilli personnes dans 44 fermes-hôtes. De plus, 475 personnes ont participé à deux dîners communautaires, ce qui a permis de récolter $ pour des organismes communautaires. Les journées agricoles du Manitoba 2012 ont attiré environ participants, ce qui a été très bénéfique à l économie de Brandon. Durabilité de l environnement Le ministère de l Agriculture, de l Alimentation et des Initiatives rurales du Manitoba a dirigé plusieurs projets dans le domaine des biens et des services écologiques, a rencontré les intervenants, a rédigé un rapport d évaluation et a réalisé l ébauche d'un cadre de politique relatif aux biens et aux services écologiques. Le Programme d aide financière à la gestion des déjections animales, une initiative fédéraleprovinciale, a fourni 7,08 millions de dollars à 43 projets durant sa première année d existence, y compris $ à l Institut de la machinerie agricole des Prairies pour des recherches dans le domaine des systèmes de traitement. Agriculture, Alimentation et Initiatives rurales Manitoba a aidé le ministère des Finances à mettre en place le nouveau crédit d impôt pour la gestion des nutriants, qui correspond à 10 % du coût en capital du matériel que les producteurs sont tenus d acquérir pour traiter le fumier. Un nouveau programme manitobain de promotion de l énergie de biomasse, qui soutient la réduction de l utilisation du charbon au profit de la biomasse provenant de résidus comme la paille, a fourni une aide de $ à 13 utilisateurs de biomasse qui utilisaient le charbon auparavant. En collaboration avec l Institut de la machinerie agricole des Prairies, le ministère a également participé à des essais permettant de déterminer si l'on était prêt à commercialiser une machine mobile de densification de la paille.

24 Le Programme de pratiques d agriculture durable du Manitoba, qui en était à sa dernière année, a accordé une contribution de 1,86 million de dollars à 130 projets visant à réduire les émissions de gaz à effet de serre et à tirer des avantages de l adaptation au changement climatique. En , le volet environnemental de Cultivons l avenir a favorisé des améliorations opérationnelles grâce à une aide de 3,5 millions de dollars destinée à la cartographie pédologique, et a soutenu 113 projets dans le cadre du Programme d action environnementale en agriculture, des Initiatives de développement durable de l agriculture et du Programme environnemental de vulgarisation en agriculture. Santé et bien-être Le volet de la salubrité des aliments de Cultivons l avenir a fourni environ 1,3 million de dollars pour des projets visant à améliorer la salubrité et la traçabilité des aliments, à la ferme et en aval. Quatre vérifications de la salubrité des aliments et 392 inspections ainsi que des enquêtes ont montré un changement de comportement important et positif vis-à-vis de la salubrité alimentaire, en plus d une forte participation aux programmes et aux activités de communication. Une entente sur l échange de renseignements conclue avec l'agence canadienne d inspection des aliments a permis la création d une base de données ministérielle contenant à ce jour environ sites et qui est ainsi devenue une ressource indispensable du système de traçabilité national. Des subventions de $ ont été réparties parmi 27 districts de services vétérinaires, ainsi qu un financement de $ destiné à l amélioration de l équipement des cliniques vétérinaires rurales. L Agence canadienne d inspection des aliments a été informée de trois cas de laryngotrachéite, de deux cas de fièvre charbonneuse et d un cas d herpès équin, qui n est pas une maladie à déclaration obligatoire bien qu elle fasse l objet d un avertissement au niveau national. Un parasite, le nématode (Toxocara vitulorum) a également été découvert chez des bisonneaux, ce qui constitue le premier cas diagnostiqué au Canada. Agriculture, Alimentation et Initiatives rurales Manitoba a apporté son soutien à 13 étudiants manitobains ayant été acceptés au Western College of Veterinary Medicine en leur accordant à chacun une bourse d étude de $. Les six étudiants ayant reçu la bourse et obtenu leur diplôme en 2011 sont revenus travailler en milieu rural au Manitoba. En 2011, le Programme d autorisation du brûlage des résidus de culture n a délivré que 172 permis, ce qui est nettement moins qu en 2010, lorsque plus de 1000 permis avaient été accordés. Bien que ce nombre réduit ait été principalement dû aux conditions météorologiques, on peut aussi l attribuer à l offre de solutions de rechange concernant la gestion de la paille, solutions dont on a fait la promotion afin de minimiser les incidences sur la santé, l environnement et la sécurité. Dans le cadre de l entente Cultivons l avenir, le Programme d agriculture dans le Nord et l Initiative d alimentation saine dans le Nord ont organisé avec succès le Northern Harvest Forum à The Pas et ont approuvé six demandes venant de plusieurs collectivités du Nord concernant de nouveaux systèmes de production agricole afin de faciliter l accès aux aliments sains. Agriculture, Alimentation et Initiatives rurales Manitoba a poursuivi l élaboration du concept de régime alimentaire avantagé par le climat canadien (Canadian Climate Advantage Diet) en favorisant la collaboration entre le ministère de la Vie saine, des Aînés et de la Consommation du Manitoba, le ministère de la Santé du Manitoba, des chercheurs, des associations de l industrie et d autres intervenants de partout au Canada. Des recherches ont révélé que le sarrasin, l avoine, la pomme de terre, le chanvre, le canola, le lin ainsi que les produits laitiers ont des propriétés bénéfiques importantes pour la santé.

25 TABLE OF CONTENTS Title Page Organization Chart... 1 Executive... 2 Preface... 3 SECTION ONE PART A PROGRAM AND FINANCIAL INFORMATION... 7 Appropriation 1 Administration and Finance (a) Minister s Salary (b) Executive Support (c) Strategic Planning Directorate (d) Financial and Administrative Services Appropriation 2 Policy and Agri-Environment (a) Policy Analysis (b) Knowledge Management (c) Boards, Commissions and Legislation (d) Agri-Environment (e) Land Use (f) Less: Recoverable from Rural Economic Development Initiatives Appropriation 3 Risk Management, Credit and Income Support Programs (a) Manitoba Agricultural Services Corporation (b) Agricultural Income Stabilization (c) Food Industry Development (d) Farmland School Tax Rebate (e) Less: Recoverable from Rural Economic Development Initiatives Appropriation 4 Agri-Industry Development and Innovation (a) Livestock Industry (b) Chief Veterinary Office/Food Safety (c) Crop Industry (d) Agri-Food Innovation and Adaptation (e) Agricultural Sustainability Initiative (f) Less: Recoverable from Rural Economic Development Initiatives Appropriation 5 Agri-Food and Rural Development (a) Growing Opportunities Centres (b) Economy and Rural Development (c) Food Development Centre (d) Food Commercialization and Marketing (e) Infrastructure Development Grants (f) Less: Recoverable from Rural Economic Development Initiatives (g) Rural Economic Development Initiatives Appropriation 6 Costs Related to Capital Assets SECTION ONE PART B CAPITAL INVESTMENT INFORMATION

26 SECTION TWO ADDITIONAL FINANCIAL INFORMATION AND APPENDICES Appendix A: Expenditure Summary for Fiscal Year Ended March 31, Appendix B: Reconciliation Statements Appendix C: Distribution by Main Appropriation: Expenditures Appendix D: Percentage Distribution of Salaries and Employee Benefits and Full Time Equivalents Appendix E: Revenue Summary for Fiscal Year Ended March 31, Appendix F: Five-Year Expenditure History for Years Ending March 31, 2008 to March 31, Appendix G: Five Year Expenditure and Staffing Summary by Main Appropriation for Fiscal Years Ending March 31, 2008 to March 31, Appendix H: Statutory Responsibilities of the Minister of Agriculture, Food and Rural Initiatives Appendix I: Performance Indicators 2011/ Appendix J: The Public Interest Disclosure (Whistleblower Protection) Act Appendix K: Sustainable Development Integration

27 1 Organization Chart of Manitoba Agriculture, Food and Rural Initiatives (This organization chart depicts the status of the department as at March 31, 2012) Minister of Agriculture, Food and Rural Initiatives Honourable Ron Kostyshyn Veterinary Services Commission Pesticides & Fertilizers Advisory Committee Farm Machinery Board MB Farm Mediation Board MB Milk Prices Review Commission MB Farm Products Marketing Council MB Farm Lands Ownership Board MB Agricultural Services Corp Appeal Tribunal MB Agricultural Services Corporation Board Agricultural Crown Lands Appeal Board Women s Institute Advisory Board MB Association of Agricultural Societies Food Development Centre Advisory Board Farm Practices Protection Board Horse Racing Commission Agricultural Producers Organization Cert. Agency Agri-Food & Rural Development Council Deputy Minister B. Todd Agri-Industry Development & Innovation Division T Gilson (Acting) Agri-Food & Rural Development Division L. Scott Food Development Centre L. Lowry Policy & Agri-Environment Division D. Gingera-Beauchemin Corporate Services A. Leibfried Strategic Planning Directorate M. Bouvier MB Agricultural Services Corporation N. Hamilton Livestock Industry Chief Veterinary Office/ Food Safety Crop Industry Agri-Food Innovation & Adaptation Growing Opportunities Centres Economy and Rural Development/ Economic Development Initiatives Food Commercialization and Marketing Policy Analysis Knowledge Management Boards, Commissions & Legislation Agri-Environment Financial & Administrative Services Land Use

28 MANITOBA AGRICULTURE, FOOD AND RURAL INITIATIVES Executive Honourable Ron Kostyshyn, Minister B. Todd, Deputy Minister T. Gilson, A/Assistant Deputy Minister Agri-Industry Development and Innovation Division L. Scott, Assistant Deputy Minister Agri-Food and Rural Development Division D. Gingera-Beauchemin, Assistant Deputy Minister Policy and Agri-Environment Division A. Leibfried, Executive Financial Officer (EFO) Corporate Services M. Bouvier, Executive Director Strategic Planning Directorate L. Lowry, General Manager and Chief Operating Officer Food Development Centre N. Hamilton, President and Chief Executive Officer Manitoba Agricultural Services Corporation 2

29 PREFACE Purpose and Organization of the Annual Report This report was prepared by Manitoba Agriculture, Food and Rural Initiatives (MAFRI) to summarize the activities and accomplishments of the department during the 2011/12 fiscal year. The report is divided into two major sections: Section One includes Part A Program and Financial Information and Part B Capital Investment organized in accordance with the departmental appropriation structure. Section Two contains all appendices such as summary financial tables, Ministerial statutory responsibilities, performance indicators, information on The Public Interest Disclosure (Whistleblower Protection) Act and sustainable development activities. This report is presented according to the financial organization of the department, and is not necessarily organized according to programs and services. Mission The department's mission statement describes a commitment to strengthen the rural and northern Manitoban economies and improve the quality of life of its citizens. The mission statement also provides the means used by the department to achieve its objectives. MAFRI works to accelerate the greater prosperity and capacity of agricultural producers and industry, food processors, other rural entrepreneurs, organizations as well as rural and northern communities. We do this by providing leadership and a range of information, programs and services in support of a vibrant rural and northern Manitoba. MAFRI plays an important role in supporting the overall provincial strategic priorities of building our economy and communities; promoting healthy living; promoting a cleaner, healthier environment; developing our clean energy advantage; and keeping Manitoba affordable. Our Vision The department s vision provides an overview of a desired and achievable state of the province's agriculture and food industries as well as rural and northern communities. The vision stated below declares what this department is striving to achieve while working with our farming, industry and community partners. Through agricultural, food and non-agricultural development, rural and northern Manitobans have transformed the rural and Manitoba economies by: Seizing leading edge business opportunities to capitalize on available natural resources and advantages, in a sustainable manner. Working together to build communities that can imagine and act upon future opportunities. Driving future development based on understanding and utilization of market intelligence. Agriculture is a leading solution provider to this transformation, providing: Profitable primary agriculture. Increased economic activity and investment to sustain and grow rural communities. 3

30 Opportunities to add value to Manitoba-produced commodities for food, animal feed, bio-energy, biofibre and other uses. Products, such as nutraceuticals, functional foods and pharmaceuticals, to increase the health and wellness of Manitobans and the world. Solutions to enhancing environmental sustainability in Manitoba. Philosophy and Values The department's philosophy and values reflect a fundamental commitment to the present and future prosperity of the agriculture and food sectors and rural and northern communities. We believe that: Family farm businesses form the backbone of Manitoba s agri-food industry. We believe in rural and northern Manitoba its agricultural producers, businesses, communities and youth. Agriculture, food and rural and northern economic development are key parts of Manitoba s present and future economic prosperity. Profitable agricultural production is a foundation for rural communities. Economic diversity is important to vibrant rural communities. We are proactive, action-oriented and innovative in seeking our vision. We promote community-centred development. We accomplish more through partnerships and consultation with producers, industry and communities. We provide unbiased technical advice. We are fiscally responsible. Strategic Priorities MAFRI has a broad mandate to serve the agri-food industry and rural and northern communities. Within that mandate, the department has articulated five strategic priorities that focus the department s efforts. The following section outlines MAFRI s five priorities and the departmental objectives in support of each priority. PRIORITY 1 FARM PROFITABILITY Support innovation to drive higher profitability for the agriculture sector. Increase income that producers receive from the marketplace. Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Increase the number of new entrants (farm and farm labour) into primary agriculture. Provide and facilitate affordable loan products for primary agriculture. PRIORITY 2 FOOD AND AGRI-PRODUCT COMMERCIALIZATION Support applied research and innovation to increase returns and opportunities for the value added sector. Increase sales of Manitoba produced food and agri-products to Manitobans and increase sales at Manitoba Farmers Markets. Grow Manitoba s food industry. Establish a robust bioproducts sector in Manitoba. PRIORITY 3 RURAL ECONOMIC DEVELOPMENT 4

31 Support applied research and innovation in rural economic development. Increase the capacity of rural and northern communities to drive local economic development. Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Increase entrepreneurial capacity in rural and northern Manitoba. Help government articulate a rural economic development vision and policy framework. PRIORITY 4 ENVIRONMENTAL SUSTAINABILITY Enhance the environmental stewardship of primary agriculture production. Develop climate change adaptation strategies. Develop climate change mitigation strategies. PRIORITY 5 HEALTH AND WELLNESS Enhance the safety of the food supply in Manitoba. Promote linkages between food production, food processing and the health of Manitobans. Protect human health from zoonotic diseases; animal health from serious diseases; and the welfare of domestic animals. Tools and Resources: Manitoba Agriculture, Food and Rural Initiatives (MAFRI) provides programs and services to a broad audience ranging from agricultural producers, food and agri-product processers, non-agricultural businesses and rural and northern communities. General program areas include agricultural business risk management, production advice and services, business counselling, agricultural and rural business lending, product development and commercialization, sustainable agricultural production, food safety, animal health and welfare, and rural economic development. A key mechanism for delivering agriculture and agri-food programming is Growing Forward. Growing Forward is a framework for co-ordinated federal/provincial/territorial government action through March 2013, helping the agriculture and agri-food sectors to achieve the following broad outcomes: a competitive and innovative sector; a sector that contributes to society's priorities; and a sector that is proactive in managing risks. Federal, Provincial and Territorial Ministers have already begun the process of identifying the priority issues for the next generation of agricultural policy that is expected to commence with new agreements in 2013/14. MAFRI delivers its programs and services in rural and northern Manitoba through Growing Opportunities (GO) Centres/Offices including one Winnipeg-based GO Centre. Knowledge Centres support the delivery of programs and services through the development of leading edge knowledge in their respective area of responsibility for delivery to clients. Together with the Food Development Centre (a Special Operating Agency) and with the Manitoba Agricultural Services Corporation (an independent Crown Corporation), MAFRI works closely with stakeholders as strategic partners towards building a stronger, more stable and profitable agri-food industry. MAFRI also utilizes a video conference network to deliver programs, services and training to rural and northern Manitoba to allow clients to receive services closer to home. At the heart of MAFRI s efforts in increasing the skills and knowledge of its clients is the philosophy of extension. This philosophy embodies teaching people, in their own context and life situations, how to identify and assess their own opportunities and problems; helping them acquire the knowledge and skills required to capture their opportunities and to meet their needs; and inspiring them to action now and into the future. 5

32 Performance Indicators Performance indicators in departmental annual reports provide Manitobans with meaningful and useful information about the outcomes of government s activities along with financial results. Some measures incorporate data collected by the provincial government, while others show data that is collected by external agencies. The department currently tracks six indicators in support of the five priorities identified in the strategic plan. The department continues to develop and refine its performance indicators at the knowledge centre and GO team level in order to illustrate the outcomes achieved through their efforts. For MAFRI s Performance Indicators refer to Appendix I. Internet Site The department's annual report and details on its many programs and services can be found on Manitoba Agriculture, Food and Rural Initiatives' Internet site; 6

33 SECTION ONE PART A PROGRAM AND FINANCIAL INFORMATION 7

34 Appropriation 1 Administration and Finance Provides for the executive management, strategic planning and control of departmental policies and programs. Provides financial and administrative services, accounting, comptrollership and accountability. Appropriation 1 (a) Minister s Salary Objective 1: Provides for the additional compensation an individual appointed to the Executive Council is entitled to. 1 (a) Minister's Salary Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Salaries and Employee Benefits (5) Total Sub-Appropriation (5) 8

35 Appropriation 1(b) Executive Support Executive support provides executive leadership, policy direction, and operational co-ordination including communication of the department activities and initiatives to meet the government policy objectives and attain the priorities set out in the department plan. The Deputy Minister advises the Minister on matters related to strategic and program options of the department and provides direction to the department on the overall management and development of policies and programs in compliance with government policy. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: To provide leadership in ensuring that the department's mission, goals, objectives, and priorities are communicated and effectively carried out. The department's submitted estimates, through its proposed allocation of financial, physical, and human resources, should reflect the government's policies and priorities. Advised the Minister on strategic and program options regarding the application of government and Ministerial policies and priorities. Lead and co-ordinated the decision-making process in the development, implementation, operation, monitoring and evaluation of department s policies and programs. Executive staff ensured that department resources were allocated in accordance with government policies and priorities. The department's services and activities should be delivered equitably, economically, efficiently, and effectively. The assurance of value-for-money and equitable, efficient and effective program delivery remain a major priority of Executive support. 1 (b) Executive Support Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits (27) (2) Other Expenditures (3) Policy Studies (34) Total Sub-Appropriation (55) 9

36 Appropriation 1(c) - Strategic Planning Directorate The Strategic Planning Directorate s (SPD) mandate is to: Provide expertise and leadership in the development of the departmental vision, its strategic plan and consultations plan; Foster excellence in unit-level strategic planning and consultation activities; Provide leadership in the identification of new prospects, frontiers and opportunities for agriculture and rural and northern communities in Manitoba; Support, monitor and report on implementation of strategic directions and policies for the department; Understand, and where possible, integrate the strategic directions of the rural sector and agriculture and food industries into the departmental strategy; Support the development, maintenance and testing of the department s emergency management plan and business continuity plan; and Support the implementation of The Public Sector Disclosure (Whistleblower) Act in the department. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Support innovation to drive higher profitability for the agriculture sector. Agriculture as a Solution framework will be completed. Agriculture as a Solution framework was completed. Department plans will reflect the Agriculture as a Solution framework. Content from the Agriculture as a Solution framework was used to guide departmental planning and inform the Growing Forward 2 planning process. Agriculture as a Solution objectives were the basis for the development of the 2012/13 Supplementary Information for Legislative Review (SILR) report which outlines the department s planned activities. Objective 2: Increase sales of Manitoba produced food and agri-products to Manitobans and increase sales at Manitoba Farmers Markets. Reports on alternate domestic food sources. SPD played a supportive role to the department in the development of policy and programming for initiatives such as Buy Manitoba, and expansion of local distribution systems (e.g. farmers markets) to increase sales of Manitoba products. Objective 3: Support applied research and innovation to increase returns and opportunities for the value added sector. Agri-Food and Rural Development Council (AFRDC) will hold three meetings and generate an annual report with recommendations to the Minister. The AFRDC met twice in 2011/12 to discuss its priority activities, the impact and potential opportunities from federal changes to the Canadian Wheat Board (CWB) and to make plans for the upcoming year. The directorate assisted the AFRDC to examine the issue and opportunities for Manitoba s agri-food sector. 10

37 Objective 4: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. A policy paper on technology and its impact on rural areas will be developed. Work on this paper was deferred due to emergency co-ordination activities undertaken by the directorate during the 2011 flood. A co-ordinated system of rural economic development delivery that enhances results for entrepreneurs, communities, producers and the agri-food industry will be proposed. The department concentrated efforts on co-ordinating internal resources and strengthening partnerships with governmental and non-governmental organizations to co-ordinate economic development efforts. Objective 5: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. A cost-benefit analysis on options to more effectively manage excess moisture on agricultural lands will be completed. Cost-benefit analysis on surface water management options in the Rural Municipality of Bifrost is in progress with completion expected in 2012/13. A topographical survey of the R.M. of Bifrost to aid in water management system design and future decision making will be available. A LiDAR survey and geo-referenced culvert inventory of the Icelandic River Watershed and Washow Bay Creek Watershed was completed. Objective 6: Develop climate change adaptation strategies. A think piece on opportunities in the agricultural and agri-food sectors and rural/northern economy for climate change adaptation. SPD provided input into the department s work to create a climate change adaptation strategy (work is in progress) and supported the department s workshops on adaptation for the forage and beef sectors. A strategy to implement ecological goods and services for Manitoba. Input and support provided to the development of an environmental goods and services (EG&S) policy framework, a natural capital inventory for Agro-Manitoba and potential indicators to consider. Objective 7: Promote linkages between food production, food processing and the health of Manitobans. Programs and collaboration opportunities will be identified and/or developed. Relationships established with the Department of Healthy Living, Seniors and Consumer Affairs to collaborate on priorities that meet mutual or complementary objectives. Examples of collaboration included were; the Farm-to-School Healthy Choices Veggie Fundraiser Program and the Manitoba Consumer Food Monitor Panel (delivered by Agri-food Innovation and Adaptation). Objective 8: Lead futurist thinking for the department. Two opportunities will be identified, analyzed and presented for consideration. 11

38 Worked with Food Commercialization and Marketing Knowledge Centre to initiate work towards a tourism strategy focusing on the beer and wine industry. Contributed to a departmental effort to review changes to the Canadian Wheat Board Act, impacts on Manitoba producers, the industry as a whole and options for the industry given the changes. Reviewed nanotechnology and its potential impacts (positive and negative) on the agricultural industry. Quarterly reports on sector strategies prepared by industry, think tanks and other governments. Monitored and provided updates on the Canadian Wheat Board, trends in the agricultural and food processing sectors, rural policy in other jurisdictions, among many others. Objective 9: Lead the development and maintenance of business continuity and emergency management planning in the department. MAFRI's Business Continuity Plan will be up to date. SPD maintained and updated the department s Business Continuity Plan. Worked to ensure that the department s mission critical functions were up and running during the 2011 flood. MAFRI s Emergency Management Plan will be up to date. Worked with the Emergency Measures Organization (EMO) and other departments to keep the Emergency Management Plans up to date including the Flood Annex and the Avian Influenza Emergency Plan. SPD co-ordinated the department s planning, preparation, response and recovery for the 2011 flood. Objective 10: Support the Department s strategic and operational planning systems. The various work units within MAFRI will have directional plans that support departmental priorities. SPD worked with all groups in MAFRI to support and develop the departmental plan. An approach to measuring the effectiveness of programs will be developed. Program envelopes were developed to help the department measure the effectiveness of programs and spending. A continuous improvement pilot project was initiated to improve MAFRI s program delivery and internal processes. 1 (c) Strategic Planning Directorate Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits (2) Other Expenditures (46) Total Sub-Appropriation (1) 12

39 Appropriation 1 (d) Financial and Administrative Services Financial and Administrative Services provides financial, accounting, management and administrative support to Manitoba Agriculture, Food and Rural Initiatives (MAFRI) in accomplishing its five priorities. Financial and Administrative Services also provides leadership in developing and administering financial and administrative support systems. Financial and Administrative Services consists of two knowledge centres: Financial and Accounting Services Knowledge Centre and the Corporate Review, Administration and Agency Accountability Knowledge Centre. Financial and Accounting Services Knowledge Centre prepares the annual estimates of expenditure, revenue and capital investment together with managing the financial planning, control and reporting systems. The knowledge centre also provides overall departmental comptrollership direction, maintains the department comptrollership plan and provides training on the components of the comptrollership framework. Corporate Review, Administration and Agency Accountability Knowledge Centre provides assurances that financial management practices, systems, delegated authorities and processes are functioning to support accountability and that expenditures are in compliance with policies, procedures, acts and legislation. The knowledge centre actively participates on the Department Audit Committee from a corporate perspective, is responsible for following up on audit recommendations, liaises with Internal Audit and Consulting Services, develops and implements corporate administrative policy in conjunction with central government requirements and co-ordinates the government department reporting required under The Financial Administration Act. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Provide corporate leadership, facilitation, co-ordination, direction, and reporting mechanisms to assist and support staff in achieving the Departmental Plan. The fleet vehicle, parking program and asset management inventories will be co-ordinated and maintained. The co-ordination of the student hiring process and central registration for training will continue and information on staff training will be recorded and reported as required. Staff maintained 66 permanent government fleet vehicles and replaced four fleet vehicles in order to meet business needs. Staff monitored and co-ordinated 218 parking spots for departmental staff throughout Winnipeg and rural Manitoba. Staff maintained an inventory of departmental assets and worked with the program areas to update property insurance values and inventories. Staff co-ordinated the summer and fall part-time Student Temporary Employment Program (STEP), employing 54 students during the summer and five during the fall and winter with a focus on diversity in the workplace. The department continues to encourage its staff to participate in training in order to more effectively complete their job responsibilities. Staff administer a central registration process and a staff training database. A review of the department s accommodations will continue, floor plans will be updated when changes occur, and requests for service monitored to ensure that staff have adequate and useable space and that cost savings are achieved wherever possible. Staff continued to review the office accommodations in 2011/12, kept up-to-date records of staff locations and floor plans throughout Winnipeg and rural Manitoba. 13

40 Three (3) GO office leases were renewed in 2011/12 in conjunction with Manitoba Infrastructure and Transportation (MIT). The Supplementary Information for Legislative Review and the Annual Report will meet all legislative requirements and the Estimates Debate Book and the Ministerial House Book will be completed within appropriate timeframes and according to instructions. The required legislative documents were prepared and tabled in the Legislature within appropriate timeframes and according to regulatory requirements. Objective 2: Develop and administer policy, procedures and guidelines to assist and support staff and to ensure adherence to the central and departmental policies and legislation. Administrative policies will be developed, implemented and managed in consultation with executive and department staff and adherence to policies will be monitored. A number of administrative policies and procedures documents were developed, amended and implemented which resulted in clarification and documentation of various processes. Advice and leadership will be provided to department staff to ensure that records authority schedules are amended, and that government records are maintained, stored or destroyed according to government records management guidelines. Staff approved and monitored the movement of approximately 395 records boxes to storage and destruction centres following central government policies. Staff provided assistance on the development of new and amendments to existing Records Authority Schedules. Advice and support will be provided to department staff on the development of contracts to ensure guidelines in the General Manual of Administration (GMA) are followed and that a proper risk assessment is considered. Staff provided support and assistance to staff in the development of approximately 48 contracts and reviewed a number of Requests for Proposals ensuring GMA and Aboriginal Procurement guidelines were followed and proper risk assessments carried out. Staff will attend interdepartmental meetings with the Information and Privacy Policy Secretariat in order to keep informed of policy and legislative changes to The Freedom of Information and Protection of Privacy Act (FIPPA). Applications for access will be responded to within FIPPA timelines. Privacy Impact Assessments will be completed as required and privacy requirements will be addressed. Staff attended monthly interdepartmental meetings with the departmental FIPPA co-ordinators and the Information and Privacy Policy Secretariat staff. Staff received and responded to 90 FIPPA applications for access in Ninety-seven percent (97%) of MAFRI s responses were responded to within the legislated requirements. FIPPA quarterly reports were submitted as required. Sustainable development practices will be promoted to ensure consistency with the principles and guidelines of The Sustainable Development Act and sustainable development activities will be reported in the Annual Report. Sustainable development practices, products and services are promoted within MAFRI and a sustainable development integration report is co-ordinated and reported in the annual report. A departmental committee on Workplace, Safety and Health will be identified and established so that workplace, safety and health issues are dealt with appropriately. Workplace, Safety and Health (WS&H) committees are active at four locations: Brandon, Carman, Minnedosa and the Agricultural Services Complex, University of Manitoba. Progress is being made in the establishment of a departmental committee. 14

41 The Manitoba Policy on Access to Government will be communicated to staff and an operating plan will be developed and approved to ensure government guidelines are being followed. In February 2012, the Chair of the Disabilities Access Committee attended a training event which included discussions on manual updates for the Manitoba Policy on Access to Government. Objective 3: Ensure the effectiveness and validity of the departmental Comptrollership Plan, stimulate change to achieve strategic and financial objectives and mitigate risk to protect and preserve the assets of the organization. In consultation with departmental staff, the processes and procedures involved in issuing and monitoring the utilization of grants will be reviewed to ensure compliance with prescribed grant accountability practices and instances of non compliance will be remediated. Staff worked with the Internal Audit and Consulting Services and the Office of the Auditor General on providing documentation and following up on improvements to processing of transactions. Staff participated in process enhancement committees to improve the tracking and financial accountability for grants. The Comptrollership Plan will be reviewed for validity and examined annually to ensure that processes and procedures are in place and are operating as planned. Any gaps/weaknesses discovered will be addressed in a timely manner. Staff members will be trained, as required, to ensure that they understand their responsibilities under the Plan. The Comptrollership components are reviewed and updated on an ongoing basis. Provide corporate consultation on department initiatives in relation to administration and accountability. Staff provided liaison between the French Language Services Co-ordinator and the department. Staff developed, co-ordinated and managed a comprehensive hourly time tracking system to track staff time on federal matching Growing Forward programs and other departmental programs. Staff reported Growing Forward expenditures and projections to the Food Development Centre on a quarterly basis. Staff provided leadership to the administrative officers` horizontal team. The Department Audit Committee will be operational and will play an integral part in risk assessment and mitigation in the department and in the process of developing requests for the annual internal audits. Staff initiated and attended a number of Department Audit Committee meetings throughout the year to review the annual audit reports, follow up on audit recommendations and discuss future audit requirements. Objective 4: To provide financial, accounting and analytical services within government guidelines, procedures and policies for the department as well as Manitoba Agricultural Services Corporation (MASC) and the Food Development Centre (FDC). All financial reporting processes will be co-ordinated, standards will be set and assistance will be provided to executive management in the prioritization of program initiatives, enhancements and reductions in accordance with established timeframes and guidelines. Staff have scheduled and completed processes to provide the department timely and meaningful financial reporting and analysis that serves their outcomes prioritization. Reporting deadlines were consistently met. Staff ensured that the preliminary estimates, cash flow and expenditure management processes were co-ordinated, standards were set and assistance was provided to departmental staff and executive management in the prioritization of program initiatives, enhancements and reductions. 15

42 Accurate information on the availability of resources will be provided on a timely basis to facilitate decision making for the achievement of departmental objectives. Staff completed accurate departmental monthly, quarterly and annual cash flow and variance analyzes as well as ad hoc financial reports and forecasts of resource utilization to the end of the fiscal year within reasonable timeframes. Staff provided reports on funding availability and financial strategies on a regular basis. Staff prepared effective and accurate staff vacancy and out-of-province travel reports for executive review. Knowledge centre staff follow verification and audit processes for financial data included in reporting, analysis and other outcomes to ensure its accuracy. Program proposals will be researched and analyzed to provide executive management with recommendations with the objective of ensuring program financial goals are met and human and fiscal resources are used efficiently and effectively. It is a consistent practice of staff to review, analyze and provide necessary due diligence for submissions to executive management including financial, program impacts and recommendations to enhance the department s ability to meet its goals. During 2011/12, staff reviewed approximately 49 submissions. Staff will participate in the development of departmental administrative and financial policy, legislation, regulations, federal / provincial agreements and in compliance with provincial government policies. Staff provided support, analysis and advice when consulted by the department and other entities on government and departmental policy. Staff provided continuing support for the Systems, Application, Products (SAP) software within the department through technical advice and review of policies and procedures related to the business processes necessitated by SAP. Training, support and advice will be provided to departmental staff on a variety of financial matters. Staff provided advice regarding regulatory compliance with The Public Sector Compensation Disclosure Act; the Manitoba provincial government s General Manual of Administration and Financial Administration Manual. Staff completed over 26 year-end reports required by the Department of Finance in a timely manner to ensure the completeness and accuracy of MAFRI s financial information contained in the government s public accounts. Payment, revenue, year-end adjusting and closing entries/documents will be processed for MAFRI programs, as required. Staff processed 3,029 accounts payable and 15 revenue-related SAP documents during the 2011/12 fiscal year. Transaction logs were reviewed and verified for completeness and accuracy in a timely manner. To finalize year-end, staff prepared, analyzed and processed approximately 115 entries for 2011/12. Additional Results: Under the direction of Manitoba Finance, staff co-ordinated the financial processes used by MAFRI and the Manitoba Agricultural Services Corporation (MASC) in the delivery of extensive 2011 flood programs. As part of this role, staff co-ordinated the emergency expenditure funding claim processing, verification and reporting on over 1,300 payments made to producers under the Manitoba Blizzard Livestock Mortality Assistance Program. In addition, staff met deadlines for producing tax receipts for payments made under the program and filed the corresponding information to Canada Revenue Agency (CRA). Staff led the planning and delivery of the All Charities Kick-off Event in September 2011 on behalf of the department. Over 50 departmental employees volunteered for the event which rose over $11 thousand for our designated charity, Manitoba Farm and Rural Support Services. 16

43 1 (d) Financial and Administrative Services Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits ,075 (143) (2) Other Expenditures (95) Total Sub-Appropriation 1, ,460 (238) 17

44 Appropriation 2 Policy and Agri-Environment The Policy and Agri-Environment Division includes the following knowledge centres: Policy Analysis, Program Review and Evaluation, Knowledge Management, Boards, Commissions and Legislation, Agri- Environment and Land Use Planning. The knowledge centres co-ordinate long term policy and program development for Manitoba Agriculture, Food and Rural Initiatives; negotiate federal/provincial agriculture programming; conduct industry-related research and analysis; provide agriculture and food statistics and industry intelligence to department staff, industry and the general public; provide knowledge management; provide support services and funding for the administration of various boards and commissions; provide advice, technical support and programming in the areas of environmental sustainability and land use planning, including the management of Crown land designated for agricultural use. Appropriation 2(a) Policy Analysis The role of the Policy Analysis Knowledge Centre (PAKC) is to analyze and provide clear and objective information on agriculture, food and rural initiative policy issues to government decision-makers, facilitate the policy development process and assist in communicating government policies to the public. More specifically, PAKC conducts policy analysis and development in the following areas: Agricultural competitiveness, business risk management, agri-environment, food safety, marketing, transportation, trade, industry development and adaptation. Building a strong rural economy and vibrant rural communities. Production of healthy, safe and affordable food. Improving capacity of food processing sector. Programs and Services PAKC is responsible for leading in the development and overseeing the province s administrative role in the following areas: Business Risk Management programs (AgriStability, AgriInvest and AgriRecovery and ad hoc responses to crisis situations); Federal/Provincial/Territorial (FPT) Growing Forward Framework Agreement; Manitoba s World Trade Organization requirements and government expenditures; MAFRI cost of production budgets; Agreement in support of the Rural Development Institute at Brandon University; and Industry analysis of agricultural economics and rural economic development. In order to increase the emphasis on program effectiveness and efficiency the Program Review and Evaluation Services (PRE) Knowledge Centre was established. Program Review and Evaluation Services (PRE): The role of PRE is to provide policy and program review and evaluation services. PRE manages the department s performance management system, which includes: 18

45 Conducting reviews of central departmental policies and specific program reviews and evaluations as may be prescribed by MAFRI s Executive Management; Providing services related to the Departmental Program Activity Architecture; Co-ordinating training to enhance departmental capacity on program review and evaluation processes and methodologies; Providing policy and guidance on departmental performance measurement; Collaborating with the federal government on expected results and reporting requirements for federal/provincial programming; and Providing leadership to the Department Audit Committee on controls, financial and compliance matters. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Support Innovation to drive higher profitability for the agricultural sector. Cost of production data that enables business decisions on innovative production practices. Updated and posted to MAFRI website Cost of Production Guidelines for: o Crops Eastern and Western Manitoba o Biodiesel production o Beef Backgrounding, feedlot, grassing, and cow-calf A federal / provincial agreement supporting innovation. Consulted with industry to determine industry priorities and innovation needs. Conducted analysis and provided information for negotiations on development of a Growing Forward 2 agreement. A policy platform built into the department strategy that enables the industry to be competitive, adaptable and sustainable. Identified the competitiveness needs and risk vulnerabilities of the Manitoba agricultural industry through consultations. Identified and developed the policy environment and instruments required to support agricultural industry needs of diversification, increased net income, innovation and risk management. Objective 2: Increase income that producers receive from the marketplace. Policy response options that address industry competitiveness and vulnerabilities. Provided information on farm income, program payments to producers, and government expenditures. Provided analysis of commodity prices, farm input prices, production conditions and other considerations related to farm income. Supported British Columbia and Saskatchewan, as an intervener in a dispute against Quebec s regulations restricting the production and sale of dairy blends and analogues under the Agreement on Internal Trade (AIT). Provided analysis and information, in co-operation with Manitoba Infrastructure and Transportation (MIT), regarding rail issues that impacted the agriculture industry and rural communities. Examples include: Analysis for short line development (Lake Line, River Hills, South Man Sask Rail), Port of Churchill, level of service issues with Canadian National (CN) and Canadian Pacific (CP) railways. National grain marketing and regulatory agencies that respond to Manitoba s industry priorities. Provided analysis related to changes to the Canadian Wheat Board Act as a result of Bill C-18 and the impact to the grain industry and Manitoba grain producers. 19

46 Provided analysis and assisted with information sessions on the proposed changes to the role of the Canadian Grain Commission (CGC) in supporting the interests of Manitoba farmers. Effective communication of relevant information to aid trade policy deliberations. Provided information on Manitoba s trade interests in bi-lateral trade agreements; specifically the development of Canada-European Comprehensive Economic and Trade Agreement (CETA) and other possible trade agreements with South Korea, India, Japan, and Trans-Pacific Partnership (TPP). Improved trade relations through implementation of trade advocacy. Provided analysis and information to provincial representatives engaged in dialogue with US officials at Canada/US events such as the Western Governors Association and Legislative Ag Chairs Summit held in Washington DC on areas of common interest and mutual benefit including: Country of Origin Labelling (COOL), zoning for disease outbreaks, pesticide, vet and drug regulatory harmonization and low level presence policy. Provided Manitoba s interest in developing a Canadian position for the Country of Origin Labelling challenge brought before the World Trade Organization s (WTO) appeals panel. Attended and provided analysis and information on Manitoba s interests to the Tri-National Accord in Texas. Leaders from the US, Canada and Mexico worked on collaborative strategies to strengthen agriculture industries, improve trade relationships and to ensure a productive business climate between the three countries. Delegates discussed critical issues including animal health, plant health, trade agreements on low level presence (LLP) of genetically modified (GM) crops and food safety. Objective 3: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Industry has effective mechanisms that prevent and mitigate risks. Analyzed and identified needs and tools required for water management on the agricultural land base including overseeing the development of AgriFlexibility proposals coming from Manitoba (e.g. Bifrost Agricultural Sustainability Community Service Co-operative Inc (BASIC) project) and working with the federal government on programs to meet water infrastructure needs. Assisted in the development of Manitoba s negotiating position for the Saint Andrews Statement on Growing Forward 2 (GF2) to ensure the agreement enables the development of infrastructure and tools needed by the industry. Business Risk Management (BRM) programs developed to reflect Manitoba s industry risk management needs. Worked extensively on the development and implementation of a comprehensive suite of programs for flood affected producers; including AgriRecovery and Flood 2011 Building and Recovery Action Plan (BRAP). Developed and implemented terms of Canada/Manitoba AgriRecovery Agreement covering the 2011 Avian Influenza Assistance Initiative. Participated in federal/provincial working groups for continued assessment and recommendations for improvements to current and future Growing Forward programs. Ongoing monitoring of core programs that address risk management needs including AgriRecovery, AgriStability, AgriInsurance and AgriInvest. In the event of an unforeseen disaster, information is provided based on a comprehensive analysis of the situation and recovery plans. Completed a comprehensive and timely analysis to support the development, implementation and administration of a comprehensive suite of programs for flood affected producers; including AgriRecovery and Flood 2011 Building and Recovery Action Plan (BRAP). 20

47 The province s BRM payment requirements are managed effectively. Provided oversight of financial requirements ensuring payments under AgriStability and AgriInvest were in accordance with government standards. Negotiated administrative management terms in federal/provincial AgriRecovery Agreements. Objective 4: Grow Manitoba s food industry. Understanding, agreement and direction for MAFRI to strategically support growth in Manitoba s food industry. Chaired and provided policy support to Food Processing Team tasked with the development of Manitoba s Food Processing Strategy, including analysis on the food processing sector in Manitoba. Prepared a web survey together with the Manitoba Food Processors Association to identify issues faced by the food processing industry in Manitoba. Objective 5: Increase the capacity of rural and northern communities to drive local economic development. Understanding of policy instruments that can effectively promote regional economic development and cooperation in the province. Continued development of the Rural Economic Development (RED) database which is a repository of information on RED programming / policy throughout Canada. Assisted in the development and implementation of the Excess Moisture Economic Stimulus Program (EMESP) in response to spring 2011 excess moisture events. Approved funding of $2.5 million to 42 projects to offset the economic impact of excess moisture levels on community, business, and industry sectors. Objective 6: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Movement towards an informed, effective and strategic direction for MAFRI in regional economic development (RED) policy both provincially and nationally. Chaired and provided policy support to the Rural Economic Development Policy Team, in the ongoing analysis of rural economic development in Manitoba, and development of a strategic departmental role in rural economic development. Identify and analyze rural economic development needs, risks and policy options. Informed departmental management of priority information regarding the state of rural economic development in Manitoba, including: Analysis of demographic trends, economic development and human and physical infrastructure. Co-operative and effective analysis of strategic infrastructure and rural economic development opportunities. Effective implementation of agritourism development activities. Provided information on areas of rural economic development including: o Infrastructure needs of wet industries for food processing. o Rural broadband internet infrastructure and services. o Short line development of Manitoba rail networks. Through the management of the Rural Development Institute Agreement, PAKC facilitated research in rural immigration, community economic development tools, rural wealth asset management and demographics to forecast rural economic development opportunities. Provided policy analysis regarding agritourism strategy. 21

48 Objective 7: Help government articulate a rural economic development vision and policy framework. Collaborative understanding, harmonization and development of departmental policies to strategically support rural economic development. Participated as the provincial chair of Rural Team Manitoba for the discussion of issues between federal agencies, provincial departments and community serving organizations focused on the needs of rural Manitoba. Represented Manitoba on the Federal Rural and Co-operatives Secretariat led Rural Development Network to provide a linkage between provincial and federal needs and connection between research and policy. Objective 8: Enhance the environmental stewardship of primary agriculture production. Co-ordinated policy instruments that can effectively meet the province s need for conservation and restoration of natural capital and ecological goods and services (EG&S) on agricultural lands. Led an interdepartmental working group and consulted with stakeholders in the ongoing development of an EG&S policy framework and natural capital inventory for Agro-Manitoba. Analysis of survey results and writing of EG&S-related program evaluation report. EG&S pilot projects involved attending Investment Framework for Environmental Resources (INFFER) workshops and assisted in a feasibility study proposal. Objective 9: Develop climate change adaptation strategies. Provincial and municipal governments, conservation districts, planning districts, First Nations and nongovernment organizations (NGOs) will have improved capacity for climate adaptation decision-making and planning. Led the development and implementation of the Provincial Planning on Adaptation for Excessive Moisture in the Manitoba Interlake Region workshop and report. Assisted in the development of MAFRI s Climate Change Adaptation Strategy. Attended and presented at Prairies Regional Adaptation Collaborative (PRAC) Forums (Water/Drought and Excessive Moisture, September 2011; Final Prairies Forum, February 2012; and Final Manitoba Forum, March 2012). Assist in developing policy that leads to increased use of sustainable practices on grassland/rangeland. Provided project management for PRAC studies: Vulnerability of Grasslands in Southern Manitoba to Climate Change and Increasing Resiliency of Manitoba s Grassland Ecosystems to Climate Change Impacts. Provided policy support to MAFRI workshops on adaptation for the forage and beef sectors (November/December 2011 and February 2012). Objective 10: Develop climate change mitigation strategies. Manitoba agriculture producers are in a better position to adapt and capture opportunities as they have the tools and are aware of climate change Best Management Practices (BMP) and carbon market opportunities. No policy work was required on climate change mitigation in this fiscal year as policies/ programs, such as Manitoba Sustainable Agriculture Practices Program (MSAPP) had been established. Requirements for policy development were focused on climate change adaptation (see Objective 9). 22

49 Objective 11: Enhance the safety of the food supply in Manitoba. Effectively implemented regulations that meet food safety outcomes. Updated a policy paper on food safety regulations in Manitoba and provided policy support in the development of legal and regulatory framework for The Food Safety Act. Provided policy support on the federal/provincial/territorial (FPT) National Meat Hygiene Pilot Project that assisted provincially licensed plants to upgrade their facilities for interprovincial movement of product. Manitoba has one pilot project. Provided policy support for the development of Manitoba s meat inspection services plan for provincially registered slaughterhouses. Objective 12: Promote linkages between food production, food processing and the health of Manitobans. Collaborative understanding and harmonization of departmental policies. Provided policy support on issues dealing with food security and food safety. Assisted in developing food policies for GF2 Framework. Provided policy support to the Northern Foods team. For example; in the development of a community sustainability assessment process for the Northern Healthy Foods Initiatives. Objective 13: Protect human health from zoonotic diseases, animal health from serious diseases and the welfare of domestic animals. A federal traceability framework that is implemented for Manitoba s industry. Participated in the FPT Traceability Task Team meeting to stay updated with the development of a National Agriculture and Food Traceability System (NAFTS). The goal of an NAFTS system is to prepare the industry with enhanced emergency response measures and market competitiveness. Manitoba will have an effective food availability emergency strategy. There were no requests made for PAKC involvement in the further development of this strategy. Objective 14: Improve performance of policies and programs in achieving the Department s overall objectives and priorities. An understanding of effectiveness of programs and policies enabling effective resource allocation and continuous improvement. Conducted an evaluation of Manitoba Growing Forward programs and prepared an evaluation report for the department s executive management and Agriculture and Agri-Food Canada. Drafted program logic models and data collection mechanisms for Growing Forward programs. Worked on program logic models and reporting requirements for AgriFlexibility programs. Provided guidance on performance management elements. Led the preparation of semi-annual and annual performance reports and performance target adjustments. Participated in the preparation of the 2010/11 Growing Forward Progress Report which was completed in 2011/12. Worked with the federal government and other provinces and territories in determining common program goals, reporting and evaluation requirements, as well as in assessing the subsequent program results. Effective and efficient programs in Manitoba that help industry in meeting objectives. Developed outcomes/results and performance measures for departmental program areas as well 23

50 as Growing Forward programs. Provided guidance to the collection and use of program performance measures. Facilitated the development of policy and program priorities and positions that reflect Manitoba s interests for use in the federal/provincial/territorial negotiations of Growing Forward 2 agreements. Conducted multiple consultations with a broad set of stakeholders (including producers, processors, organizations, academia and the general public) to inform the Minister of the agrifood industry s perspective on industry opportunities and priorities as it applies to Growing Forward 2 negotiations. Additional Results: Provided leadership as Chair of the Departmental Audit Committee which advanced internal audits on a risk management basis as well as fostered discussions on increasing effectiveness of departmental operations and management accountability. Provided services related to the Departmental Program Activity Architecture through: o The preparation of MAFRI s Programs and Services information for the Government s BizPal (Business Programs and Services) Directory initiative. o The updating of MAFRI s programs and services website. o The provision of expertise and leadership in the review of main departmental program areas that are in progress. Provided expertise to the government s Performance Management Community of Practice. Captured data on all government expenditures relating to agriculture in Manitoba. Submitted Manitoba Government expenditures data for agriculture to Agriculture and Agri-Food Canada as part of Canada s Notification Report to the WTO. 2 (a) Policy Analysis Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 1, , (2) Other Expenditures (37) Total Sub-Appropriation 1, ,

51 Appropriation 2(b) Knowledge Management The Knowledge Management Knowledge Centre (KMKC) provides leadership, training and staff support to facilitate the adoption of a knowledge culture. This includes but is not limited to adopting the principles, behaviours, processes and tools to support the science of knowledge management. Overall efficiencies and effectiveness is the result of not only the development of a knowledge culture, but also the application of business architecture principles, business case development and project management used by the KMKC in solving business challenges. If appropriate, a technology solution may be recommended as a cost effective solution to meet the business requirements of MAFRI. The KMKC is the liaison with the Business Transformation and Technology branch of Manitoba Innovation, Energy and Mines and collaboratively provides information technology leadership, management and support to ensure effective delivery of technology solutions to enable the department to deliver its programs and activities. The KMKC supports all areas of the department in developing and maintaining a dynamic interactive website that supports MAFRI in its business activities and disseminates information to Manitobans. Similarly, MAFRI uses Geographic Information Systems (GIS) to map information. The KMKC facilitates work with other departments and leads in the development of MAFRI s GIS applications. The KMKC represents MAFRI in interdepartmental technology initiatives that will modernize service delivery to Manitobans by aligning processes, automating routine functions and providing a rich suite of interactive tools for online use. These initiatives are scheduled to be implemented over the next several years. The Industry Intelligence section of the KMKC co-ordinates MAFRI s statistical information in the department s priority areas including agricultural and agri-food economics, production, marketing, outlooks, value added, and rural and socio economics. The analysis of agricultural data enables MAFRI and producers to apply that knowledge strategically in agricultural and agri-food economics, production, marketing and outlooks. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Increase income that producers receive from the marketplace. Producers and MAFRI will have access to the information necessary to make strategic decisions. Monitored the crops and livestock industries and provided public information with over 50 weekly crop and livestock reports, statistical fact sheets and trend activity data. Provided 65 analytical assessments on domestic and international markets and indicators of economic performance for grains, oilseeds and livestock. Information, analysis and economic forecasting of supply, demand and price outlooks, were provided to staff, industry partners, producer groups, farmers and the public. Developed 20 agricultural economic reports on farm cash receipts, farm product prices, net farm income, farm operating expenses, value of farm capital, farm debt and bankruptcies, direct payments to agriculture producers, agricultural sector balance sheets, agriculture value added account, crop and livestock statistics, provincial highlights linked to agricultural commodities, financial and economic impacts of trade and commodity movements. Participated in inter-provincial development of statistical data to generate national and provincial estimates on the economic performance of agriculture. Represented provincial interests in eight federal/provincial/territorial (FPT) meetings to improve statistical data, facilitate measurements of commodity sector activity and quantify economic strengths. 25

52 Participated in seven conference calls and one in-person meeting of the Federal/Provincial Consortium on trade statistics access and consumer-related information. Prepared four provincial agricultural estimates and co-ordinated the update of yearly statistics with staff from the University of Manitoba, Statistics Canada, Agriculture and Agri-Food Canada and the Manitoba Bureau of Statistics. Worked closely with 11 farm organizations, crop commodity groups and livestock producer associations in data analysis and forecasting. Objective 2: Support applied research and innovation in rural economic development. MAFRI will have access to relevant information to support programs. Incorporated changes to enhance the interactive capabilities of the departmental website. Continued to test new management tools for incorporation on the website that will aid producers in the development and strengthening of business management skills. Program, new program and current industry information packages continue to be posted on the department website to ensure producers are up to date on business assistance initiatives and current affairs in the industry. Relationships with other jurisdictions and producer groups will remain strong. Maintained knowledge and networks with MAFRI, government departments, industry and agribusiness, educational and research institutions including federal/provincial facilities, to access current and reliable statistical information. Additional information needs are identified and addressed. Generated and interpreted information derived from the Census of Agriculture data within the Census of Population data. Participated in consultations linked to the 2011 Census of Agriculture in order to expand key statistical tables required to generate informational data on socio-economic characteristics for farm and rural families. MAFRI is participating in AccessManitoba, an initiative to enhance online business services for businesses, producers and entrepreneurs as well as supporting staff in more co-ordinated service delivery. Objective 3: Increase the capacity of rural and northern communities to drive local economic development. Increased data will be available to enable strategic decisions. Generated census-based analysis on rural communities in response to ad hoc requests for information used in integrating social and economic knowledge with rural and northern objectives. Provided relational commodity-based data to assist staff and clients in accessing knowledge on industry activity to support sector growth and promote value added agricultural activity. Generated industry intelligence in support of industry development through the assimilation of current baseline knowledge with comparative historical trend data for food and beverage processing industries. Assisted staff and clients in accessing knowledge on industry activity to support sector growth in targeted areas including major grains, oilseed, vegetable, pulses and specialty crops. More data will provide a more complete understanding of rural economies. Prepared commodity-relevant information specific to economic impacts of crop and livestock production on the rural economy. Increased the frequency of publishing data tables to provide staff, clients and industry with more current information. 26

53 Objective 4: Protect human health from zoonotic diseases, animal health from serious diseases and the welfare of domestic animals. The updated Vet Lab system is operational. Staff worked with MAFRI Veterinary Diagnostic Services to update and upgrade computer-based analysis results distribution. The potential use of mapping technologies is better understood and government systems and standards take into consideration MAFRI s needs. Worked on developing, integrating and implementing updated Geographic Information Systems (GIS) base map etc., in collaboration with GeoManitoba. Partnered in updating ortho-imagery for use by Manitoba in developing maps. MAFRI continues to be a leader in the implementation of food traceability support systems. Provided support to premises identification database and related important components within food supply planning systems including food safety, traceability and animal disease. Staff incorporated resource materials within web-based applications to increase access and enhance user-friendliness and integration of online systems. Staff worked on web-based material for farmers markets and other electronic-based information focused on Manitoba-sourced foods. Initiated project to participate in the food traceability portal pilot project. Additional Results: KMKC supported access to technology enabling staff to be more mobile in meeting with clients, reduce travel costs by using desktop video conferencing and chat, and more modern and efficient software. Implemented AccessManitoba for MAFRI s 350 plus users enabling more collaborative service delivery and a foundation for future online services. Developed and implemented protocols in AccessManitoba to assist in business analytics for program management. Mitigated risk by replacing aging databases to ensure clients retain access to critical services. Supported 2011 flood response with GIS mapping, IT support at the flood response centre and the development of the software, processes and protocols for the emergency response call centre. Supported technical specialists in maintaining current information on the website by facilitating over 10,000 file updates. 2 (b) Knowledge Management Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 1, ,425 (298) 1 (2) Other Expenditures (23) Total Sub-Appropriation 1, ,689 (321) 1. The under-expenditure is primarily due to expenditure management measures to defer filling vacant positions. 27

54 Appropriation 2(c) Boards, Commissions and Legislation The Boards, Commissions and Legislation Knowledge Centre is responsible for regulating the production of certain commodities, providing mediation services, reviewing nuisance complaints arising from agricultural operations, considering applications to own farmland by non-residents, setting producer prices, providing a mechanism to fund research and promotion activities, regulating horse racing within the province and supporting crop insurance and animal care appeal tribunals. The knowledge centre also manages all legislation and regulatory matters administered by the department. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Increase income that producers receive from the marketplace. Supply management will increase returns by matching the production supply to customer demand, by ensuring a fair return to producers, by encouraging broad adaptation of new technologies across the sector and by managing losses due to production risks. Just over 1,900 farm operations participate in the orderly marketing systems regulated under The Farm Products Marketing Act. Five (5) different agricultural commodities (table eggs, chicken broilers, hatching eggs, turkey and milk) are governed by an effective supply management system and are linked to national agencies. Despite variable markets and changes, each sector has maintained profitability for producers and processors and managed food safety, animal disease and animal care risks while promoting reasonable innovation and new food product development. Through its marketing plan regulation and authorities, Peak of the Market manages quota systems for table potatoes, carrots, rutabagas, parsnips and some onions. In addition, the board provides collective marketing benefits to a broad base of additional Manitoba vegetable producers. The boards and commission listed below will operate within their respective legislative authorities and mandate for managing the sector and will render decisions to uphold or dismiss appeals by individuals affected by a decision, regulation or order of a board or commission. Keystone Potato Producers Association Dairy Farmers of Manitoba Manitoba Cattle Enhancement Council Manitoba Chicken Producers Manitoba Egg Producers Manitoba Pork Council Manitoba Beekeepers Association Manitoba Turkey Producers Peak of the Market Milk Prices Review Commission Registered farmers within orderly marketing systems contributed administration levies to their producer board ranging from 1.3 cents to 53 cents per unit to sustain their system as per authority of The Farm Products Marketing Act. Where appropriate, additional levies are paid to a national agency to administer domestic supply management systems and/or national promotion, research, international market development programs. Manitoba Farm Products Marketing Council supervised the nine boards authorized under The Farm Products Marketing Act and have ensured transparent, fair and procedurally correct decision-making by elected members of the boards. In addition, the Manitoba Council hears appeals, as required, on decisions made by a board. 28

55 Advice will be provided to the Minister on issues affecting the various provincial marketing plans, regulations, orders and federal/provincial agreements. The Minister was advised on issues related to processor supply, interprovincial movement of commodities, pooling negotiations, rules for transferring quota, and new entrant programs. A fair producer price for fluid milk that compensates dairy farmers adequately for their cost of production will be reviewed and implemented. The Milk Prices Review Commission reviewed the fluid milk pricing formula and determined in February 2012 that the producer price for fluid milk would decrease by $0.24 per hectolitre. Objective 2: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Farm practices protection legislation will assist in the resolution of nuisance complaints between agricultural operations and neighbors. The Manitoba Farm Practices Protection Board received one registered complaint in 2011/12. The Board, with the assistance of Manitoba Conservation and Water Stewardship, mediated a settlement between the parties involved. Farm lands ownership legislation will help to protect farm land from market speculation by foreign investors. Forty-seven (47) applications to the Farm Lands Ownership Board were received. Forty-six (46) were accepted and one denied. Of the 47 applications 13 were conservation agreements. Appeals under The Manitoba Agricultural Services Corporation (MASC) Act will be heard and satisfactorily resolved by the MASC Appeal Tribunal. The MASC Appeal Tribunal heard and resolved appeals on five insurance related claims. The appeal body for the Canada/Manitoba Feed and Transportation and the Excess Moisture Assistance programs (AgriRecovery) heard and resolved 17 appeals. Objective 3: Increase the number of new entrants (farm and farm labour) into primary agriculture. Each of the commodity boards listed below will demonstrate active new entrant policies and programs that facilitate new entrants to the supply managed sector: o Keystone Potato Producers Association o Dairy Farmers of Manitoba o Manitoba Chicken Producers o Manitoba Egg Farmers o Manitoba Pork Council o Manitoba Beekeepers Association o Manitoba Turkey Producers o Peak of the Market Manitoba Turkey Producers, Manitoba Chicken Producers and Manitoba Egg Farmers are required to set 50% of new quota aside for a new entrant program. Five (5) new producers entered egg farming in 2009 and Since 2009, the new entrant program has been used to support Manitoba Egg Farmers initiative to move the industry to new production systems that meet the five Freedoms of Animal Care. Demand for turkey products has been declining rather than growing, therefore no new quota has been available for new entrants. Fourteen (14) new producers entered dairy farming since Dairy Farmers of Manitoba s new entrant program was established in Peak of the Market sets aside 10% of quota from each reallocation program for its New Entrant 29

56 Program. Two (2) new russet potato growers began production in New entrants into the production of potatoes for processing (Keystone Potato Producers Association), pork (Manitoba Pork Council) and honey (Manitoba Beekeepers Association) can choose to produce this commodity based on their wish to do so and their business plan for profitability. Objective 4: Support applied research and innovation to increase returns and opportunities for the value added sector. Certification contributes to producer-financed research which can be utilized to enhance profitability of the specific crop or livestock sector represented by each of the certified agencies: Manitoba Buckwheat Growers Manitoba Canola Growers Manitoba Corn Growers Manitoba Forage Seed Manitoba Oat Growers Manitoba Pulse Growers Manitoba Sheep Association National Sunflower Assoc. of Canada Winter Cereals Manitoba Inc. Manitoba Flax Growers Certified agencies contributed over $400 thousand of producer funds to over 40 research projects. Several of these projects received matching funds from various sources including the Agri-Food Research and Development Initiative (ARDI) and the federal government under the Growing Forward Framework. New producer organizations will be certified and designated under The Agricultural Producers Organization Funding Act, subject to their application, a producer referenda, and approval by the Agricultural Producers Organization Certification Agency. No new producer organizations applied for designation under the Act. General farm policy organization(s) designated under The Agricultural Producers Organization Funding Act will be certified and monitored. Keystone Agricultural Producers (KAP) is the certified organization under the Act and the Agency approved a request from KAP to increase their membership fee from $150 to $200 (plus GST).This was registered as law May 20, Organic milk and specialized egg products will continue to compete successfully at the retail level. Organic milk produced in Manitoba is processed and available to Manitoba consumers. Manitoba s egg and pullet farmers and egg graders produce and market organic, free range and omega three eggs to Manitoba consumers. Manitoba s companies process the largest volume of eggs in Canada for the specialized egg product market. Value added products arising from the chicken sector in Manitoba will be established. Manitoba s chicken processors provide a variety of specialized chicken products for sale in Manitoba and across Canada. Producer boards will demonstrate collaborative decision-making and programming between producers and processors. In its supervisory capacity, Manitoba Farm Products Marketing Council monitors the nine boards authorized under The Farm Products Marketing Act to ensure producers are adequately consulted on issues related to producer levy, penalties, management of quota, new programming and commodity promotions. In its supervisory capacity, Manitoba Farm Products Marketing Council monitors the nine boards authorized under The Farm Products Marketing Act to ensure the boards adequately consult 30

57 processors on issues related to pricing, supply, management of quota and new programming. The four supply management boards work co-operatively with downstream processor stakeholders in promoting the commodity. Objective 5: Grow Manitoba s food industry. At least one federally inspected beef slaughter and/or processing facility will actively contribute to enhanced beef processing in Manitoba by A total of $7.5 million has been invested/committed by Manitoba Cattle Enhancement Council into the development of business ventures with the objective of achieving federally licensed beef processing status. Objective 6: Increase the capacity of rural and northern communities to drive local economic development. Ten percent of board/commission/council members will participate in relevant training each year. Two (2) percent of appointed board members attended two different training sessions. Sixty-one (61) Manitoba citizens contribute to the work of the 12 boards served by the knowledge centre. Objective 7: Enhance the environmental stewardship of primary agriculture production. Use of farm practices guidelines within the Farm Practices Protection Board complaint procedures and hearings will help to enhance environmental stewardship by farmers demonstrating a need to improve their farming practices. The Farm Practices Protection Board utilizes farm practices guidelines to monitor 25 agricultural operations on an annual basis to ensure compliance to normal farming practices as ordered by the board. Objective 8: Enhance the safety of the food supply in Manitoba. All regulated agricultural commodities will achieve 95% or better producer compliance in the on-farm food safety programs managed by their producer board, thereby enhancing the safety of Manitoba s food supply. One hundred percent (100%) of Manitoba s chicken broiler producers are certified in the Chicken Farmers of Canada s Safe, Safer, Safest On-Farm Food Safety Assurance Program (OFFSAP). One hundred percent (100%) of Manitoba s egg layer and pullet producers are certified in the Egg Farmers of Canada, Start Clean-Stay Clean OFFSAP program. Ninety-three percent (93%) of Manitoba s turkey farmers are certified in the Turkey Farmers of Canada s OFFSAP program. Ninety-eight percent (98%) of Manitoba s dairy farmers are certified in the Dairy Farmers of Canada, Canadian Quality Milk OFFSAP program. Objective 9: Protect human health from zoonotic diseases, animal health from serious diseases and the welfare of domestic animals. The newly appointed members of the Animal Care Appeal Board will develop appropriate appeal procedures necessary to undertake the appeal function required under The Animal Care Act. Board policies and procedures were established and documented within a policies and procedures manual. This included an appeal hearing protocol and a brochure outlining board 31

58 appeal guidelines and procedures. Six appeals under the Act will be heard and resolved in a manner consistent with The Animal Care Act by the Animal Care Appeal Board. Three (3) appeals related to humane treatment of animals were heard and decisions rendered. Other Actual Results: Two (2) types of applications are received by the Manitoba Farm Mediation Board: Voluntary requests for mediation and applications by creditors for leave to foreclose on farmland. A total of 65 applications were received. The board achieved a settlement in 75% of the cases in which its mediation services were used. The Farm Machinery Board received 61 applications for leave to repossess farm equipment. The board resolved 99% without repossession taking place. The Flood 2011 Appeals Commissioner was appointed. A six member Flood 2011 Appeal Committee was established. Appeal policies and procedures were developed and communicated. Ninety seven (97) appeal applications were received. Nine (9) appeals were completed and decisions communicated. The department administers 40 statutes, 147 regulations and orders. The department has made considerable progress in working toward multiple regulations to support the proclamation of The Food Safety and Related Amendments Act. Regulations in support of The Organic Agriculture Products Act are currently being developed that will adopt the national standards of organics set by the Standard Council of Canada. Amendments to the Dairy Regulation made under The Dairy Act were registered prohibiting the sale of unpasteurized dairy products except for raw milk sold by a producer to Dairy Farmers of Manitoba (DFM) or from DFM to a dairy plant. Eleven (11) regulations authorized by The Farm Products Marketing Act were registered improving the orderly marketing regulatory framework of four agricultural commodity boards. 2 (c) Boards, Commissions and Legislation Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits (2) Other Expenditures (35) Total Sub-Appropriation

59 Appropriation 2(d) Agri-Environment The Agri-Environment Knowledge Centre (AEKC) develops and implements programs, policies and regulations that support agriculture production in Manitoba while protecting agri-environmental resources and natural capital. Nutrient management, environmental farm planning (EFP), soil survey, ecological goods and services (EG&S) and climate change are areas of particular focus. The knowledge centre delivers the Environmental Farm Action Program (EFAP), the Manure Management Financial Assistance Program (MMFAP) and the Manitoba Sustainable Agriculture Practices Program (MSAPP). AEKC staff also develop extension materials and training programs aimed at improving the long-term sustainability of the industry. The Agri-Environment Knowledge Centre has implemented an expanded soil survey program to expedite the mapping of soil in areas of particular sensitivity or proposed development. The intent of the program is to ensure the best possible decisions are made about land use and management in Manitoba. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Research opportunities and extend knowledge in climate change and sustainable agriculture. MSAPP will support activities and projects that are built on partnerships, particularly between producers, government and industry; proposed by local producer bodies seeking local solutions to issues of local concern; and proposed by provincial industry bodies seeking sector-wide solutions. Projects with greatest potential for climate change mitigation and adaptation will receive highest ranking in the selection process. The priority areas are: fertilizers/nutrient management, composting, feeding/grazing and cropping systems, anaerobic digestion and modeling. In 2011/12 the Manitoba Sustainable Agriculture Practices Program (MSAPP) funding was focused on beneficial management practice (BMP) incentives and extension. MSAPP will support applied investigation projects to improve sustainable agriculture farming practices. These include the demonstration of proven technologies, workshops and factsheets. Project activities must be conducted in Manitoba or be of direct benefit to Manitoba. AEKC staff participated in the development of a research project funded by the Agricultural Greenhouse Gas Program (AGGP) and led by the Faculty of Agricultural and Food Sciences at the University of Manitoba. The objective of this project is to identify BMPs that minimize greenhouse gas (GHG) emissions from agricultural systems and improve the economic and environmental sustainability of the cattle industry. This project is currently underway with results expected in MSAPP funded a MAFRI workshop to test a climate change risk assessment tool that evaluates agricultural climate change adaptation practices in Manitoba. MSAPP funded a MAFRI workshop to gather input from agricultural stakeholders on climate change adaptation in Manitoba. AEKC staff delivered poster presentations and distributed a factsheet called: Climate change projections for Southern Manitoba and impacts for agriculture. The understanding of agricultural systems in Manitoba from a life cycle assessment (LCA) perspective will ensure that future decisions related to the agricultural sector in Manitoba are based on sound science. Through a LCA analysis, areas of improvement can be identified and new directions could lead to Agriculture being more sustainable and providing or enhancing ecological goods and services (EG&S). 33

60 Staff conducted LCA to ensure that decisions related to agriculture in Manitoba are based on sound science. LCA was completed for alfalfa/grass hay production in Manitoba, identifying energy use and Greenhouse Gas (GHG) emissions as well as potential ways to reduce its environmental impact. Objective 2: Enhance the environmental stewardship of primary agriculture production. Farmers will participate in EFP workshops, and complete new or revised workbooks. In 2011/12, 51 EFP workshops were held with 463 producers in attendance. Of the 463, 314 producers were returning to update their EFP workbook and maintain a valid EFP Statement of Completion certificate. Keystone Agriculture Producers issued 339 Statement of Completion certificates which represent over 652,716 acres assessed. Sustainable development and management of the livestock industry. The Manure Management Financial Assistance Program (MMFAP) delivered its first year of funding in 2011/12. The objective is to provide funding to pig producers to aid in the adoption of three different BMPs specifically aimed at manure management and regulatory compliance. o Forty-three (43) projects were completed or initiated with funding approvals totalling nearly $7.08 million. Staff assisted Manitoba Finance in the development of the new Nutrient Management Tax Credit by providing cost estimates of manure management systems as well as estimates of the number of smaller operations that may require additional over winter manure storage capacity. This is a refundable tax credit for agricultural producers equal to 10% of the capital cost of prescribed nutrient management equipment net any government assistance. Staff participated at the inter-departmental working group to develop the new Technical Review Process for livestock operation proposals that are 300 animal units (AU) or greater in size. The new process came into effect on January 1, Land assessments and land base requirements were conducted for all livestock operations that required a technical review report under the conditional use permitting process. MAFRI staff participated on the Manitoba Livestock Manure Management Initiative (MLMMI) which is a multi-stakeholder organization that funds manure-related research. Staff co-ordinated the continuation of research conducted by Prairie Agricultural Machinery Institute (PAMI) assessing the efficiency of the Alfa Laval centrifuge manure treatment system. Partners include PAMI, MAFRI, MLMMI and the University of Manitoba (U of M). Results are expected in A pilot project assessing phosphorus (P) balance at the farm level was initiated with the Manitoba Egg Farmers. Staff extended technical principles to producers, agronomists, government staff, students and teachers to promote nutrient management and practices that reduce losses to water (nutrients, pathogens) and air (odour, ammonia and nitrous oxide emissions). o Staff delivered guest lectures and served on a project evaluation panel in support of University of Manitoba courses on nutrient management. o Staff co-organized and participated in the annual Tri-Provincial Manure Management Workshop in Saskatoon. o Staff extended results of applied investigations on extensive feeding to Manitoba beef producers. MAFRI staff worked with Manitoba Conservation and Water Stewardship, Manitoba Local Government and industry to define environmentally sound treatment that is similar to or better than anaerobic digestion under The Environment Act. Staff collaborated with government, university and industry partners to conduct applied investigations and develop extension tools and recommendations. 34

61 o o o Staff chaired and participated on the provincial advisory committee on manure management which connects the research community with extension services and industry; Staff participated on the provincial advisory committee on soil fertility which connects the research community with extension services and industry for the purpose of developing provincial soil fertility recommendations; and Staff participated on extensive feeding working groups comprised of federal, provincial and academic staff. Increased awareness and compliance by the agriculture industry with environmental regulations. Staff co-delivered the Manure Management Planners Course and the Commercial Manure Applicator s Course. Staff participated in the development of amendments to the Manure Regulation under The Pesticides and Fertilizers Control Act and supporting documents. Staff participated on the Minor Works Drainage Policy Technical Advisory Committee to streamline the process for municipal drainage applications that impact the flow of water from agricultural land. Staff updated the Dairy Farmers of Manitoba on the Livestock Manure and Mortalities Management Regulation (LMMMR). Staff participated on a project evaluation panel and delivered guest lectures on the LMMMR and in support of University of Manitoba courses. Producers will adopt BMPs that will mitigate environmental impacts: water quality, GHG emissions, biodiversity and natural capital. The Environmental Farm Action Program (EFAP) was delivered in 2011/12. The objective is to provide funding to producers to aid in the adoption of 11 different BMPs with a specific emphasis on water quality. o In 2011/12, 61 projects were completed or initiated with funding approvals totalling nearly $2.5 million through Growing Forward. The MSAPP delivered its final year of programming in 2011/12. The objective was to provide funding to producers to aid in the adoption of nine different BMPs aimed at climate change mitigation and adaptation. o In 2011/12, 130 projects were completed or initiated with funding approvals totalling nearly $1.86 million. Implementation of over 15 AEEP projects by 15 local organizations and MAFRI staff. Thirteen (13) Agri-Extension Environment Program (AEEP) projects were approved in 2011/12 totalling nearly $50 thousand and leveraging almost $22 thousand cash and in-kind support from industry and producers. Project highlights include: o Three (3) projects addressed various issues such as nutrient use in alfalfa, extending the grazing season and promotion of environmental awareness. Six (6) agri-environmental displays were developed to educate producers about the importance of environmental sustainability as it relates to their farming practices, the future of their operation, and the o health of their families. Four (4) field tours / youth events were conducted with 484 participants attending. At the events, MAFRI staff presented information on topics such as agriculture capability and BMPs associated with agricultural sustainability. o Twenty-one (21) workshops were held with a total of 523 participants attending. Three (3) of the workshops focused on grazing plans and a total of 39 grazing plans were developed with farm families. Accelerated adoption of sustainable agriculture practices across Manitoba. Staff extended technical principles to producers, agronomists, government staff, students and teachers to accelerate the adoption of sustainable agriculture practices in Manitoba. 35

62 o Staff delivered lessons in 4R Nutrient Stewardship at the annual Crop Diagnostic School (CDS). o Staff organized and delivered the 2011 Soil and Manure Management Field Clinic. The clinic was attended by 50 participants comprised of agronomists, industry, producer group representatives, provincial staff, researchers and students. o Staff delivered nutrient management lessons at two two-day soil fertility workshops. o Staff delivered a field workshop in extensive feeding and soil sampling for students at Assiniboine Community College. o Staff delivered manure management presentations to beef producers at the four meetings in Souris, Morden, Swan River and The Pas. Staff worked with the Lake Friendly campaign to promote BMPs that reduce nutrient loading to lakes and rivers (including the 4R Nutrient Stewardship concept). Staff worked with the University of Manitoba to draft the Effects of Manure on Soil Fertility and Soil Quality chapter of the manure management planners manual. The chapter is expected to be complete by the fall of Staff populated the Manitoba Sustainability Information Directory database with programs and initiatives. This database is a fully-searchable online knowledge portal for multi-sectoral information on sustainability education providers and their programs, services, and action projects. Staff reviewed the factsheet on the Watershed Evaluation of Beneficial Management Practices (WEBs) small dams study at South Tobacco Creek entitled Positive Effects of Small Dams and Reservoirs. Staff provided extension on BMPs for long-term management of soil quality and productivity including: o Using agricultural capability of the soil to make cropping and soil management decisions. o Soil salinity management through cropping strategies, such as seeding high water use crops and/or saline tolerant forage species. o Proper management of wet soils, such as timing of tillage to reduce compaction, proper fertilizer placement to reduce losses. o Management of crop residue at harvest to decrease need for stubble burning using new technologies (i.e. vertical tillage). Objective 3: Develop climate change adaptation strategies. The MSAPP will provide strategic investment in research to build capacity for enhanced adaptation, as well as mitigation. Manitoba s 2008 Climate Change Action plan commits to progress on adaptation through establishment of research. Bill 15, Climate Change and Emission Reductions Act requires reporting on adaptation progress/activities in 2010, 2012 and every four years post The MSAPP funded BMPs reduce GHG emissions and provide climate change adaptation benefits. BMPs included: perennial legumes in annual crop rotation, seeding permanent cover on environmentally sensitive lands, improving pasture and forage quality on Manitoba s landscape, making use of cover crops, etc. o In 2011/12, 130 projects were completed or initiated with funding approvals totalling nearly $1.86 million. MAFRI staff contributed to the document Climate Change Reporting Requirements under Section 5 of The Climate Change and Emissions Reductions Act (CCERA). Climate change adaptation will be further achieved by promoting strategies such as the reduction of production risk and increased financial viability: biological risk management, buffered production systems, increased crop diversity, perennial crops, and biological cropping systems; expansion of organic acres; integrated farming systems and; water resources protection. 36

63 Manitoba s agricultural climate change adaptation strategy was drafted with the aim to reduce production risk and increase financial viability in the face of climate change. Investigation of climate change adaptation activities in collaboration with Natural Resources Canada on the Prairie Regional Adaptation Collaborative (PRAC). PRAC is a regional initiative between Alberta, Saskatchewan and Manitoba focusing on climate change adaptation in three themes: Drought and Excessive Moisture, Water and Terrestrial Ecosystems. Climate change adaptation research and activities within MAFRI were advanced by MSAPP staff in collaboration with the Prairies Regional Adaptation Collaborative (PRAC). MAFRI staff attended several PRAC workshops to share information and results on current climate change adaptation projects and advance adaptation to climate change through collaboration with other provinces, provincial departments and levels of government. Many activities related to adaptation are currently underway, but may need to be brought together to more effectively deal with this theme. Any extension activity that provides producers with information and tools to cope with changes in precipitation, temperature, wind and frost-free days is beneficial. Collaborations with strategic partners (other departments, different levels of government, non-government organizations, etc.) will be fostered. Staff completed the 2011 Fall Soil Moisture Survey across agro-manitoba. The purpose of the survey is to gather data on soil moisture prior to freeze-up providing an indication of what moisture might remain in the spring. This information is relevant for producers making decisions about future crop choices, as well as for flood forecasters. A climate change adaptation vulnerability and risk assessment tool was piloted to create awareness amongst government staff regarding impacts of climate change on the agriculture sector in Manitoba. Agricultural stakeholders provided input at a workshop on potential adaptation options and modifications to policies that would enhance adaptive capacity of the agriculture sector in Manitoba. An excess moisture study was conducted in the Interlake region to identify policies and programs that would enhance adaptive capacity of this region to the impacts of excess moisture. MAFRI staff co-led the Bifrost Agriculture Sustainability Initiative Co-operative (BASIC) project in the Interlake, which complements many aspects of the PRAC study. The main objective was to develop viable water management options in the Interlake through the use of stakeholder input, field-level topographical maps, engineered drawings and examination of water tolerant crops and alternative cropping systems. Some management practices utilized (e.g. reduced till) minimize risks associated with climatic variability. Climate change adaptation could be enhanced through strategies that reduce production risk and increase financial viability (e.g. perennial crops), integrate farming systems (e.g. mixed farming), and protect water resources (e.g. crop selection to maximize water use efficiency). BMPs funded through MSAPP (e.g. reduced tillage, use of cover crops, perennial cover for sensitive land) all have adaptation co-benefits. These BMPs contributed to improved nutrient management, water conservation and soil conservation. Objective 4: Develop climate change mitigation strategies. As demands to address climate change increase, there is a need to identify cost-effective methods to decrease GHG emissions and adapt to the changes. The agriculture sector can become a leader and an important part of the solution in taking actions to mitigate GHG emissions. In 2011/12 MAFRI provided BMP incentives through MSAPP which led to cost-effective GHG emission reductions averaging $31/tonne of CO 2 eq. The most cost effective BMPs were reduced tillage, perennial cover for sensitive land, and increased perennial legumes in annual crop rotation. 37

64 For many years, producers have been adopting and implementing BMPs that have contributed to reduce provincial GHGs. Furthermore, over the past decade, MAFRI has developed and promoted numerous initiatives with the main goal of reducing GHG emissions in the agriculture sector. Fifty-one (51) EFP workshops were attended by 463 producers where information was provided on practices that minimize GHG emissions. Other MAFRI initiatives that contributed to reduced GHG emissions in the province included the Climate Friendly Farm Woodlot Practices Program (CFWP), and the Manitoba Biomass Energy Initiative. With adequate technical and financial support, the agriculture sector will assist the province with meeting its GHG emission reduction commitment. Incentive programs should be maintained and enhanced. The current estimated GHG reduction in 2011/12 from the MSAPP BMP incentives is 14,500 tonnes CO 2 eq/year. Projects are expected to provide GHG reductions for up to 10 years with an estimated 52,000 tonne CO 2 eq reduction over the lifetime of the projects. The three year MSAPP ended in March Objective 5: Develop a provincial Ecological Goods & Services (EG&S) initiative. Complete an inventory of Manitoba-relevant policies and programs (including federal) that provide for EG&S from agricultural and rural lands. MAFRI staff completed an EG&S-related program survey and evaluation report. The program will support research, modeling and evaluation of EG&S policy options to determine the most effective EG&S policy instrument for agro Manitoba. Different models for this program will be developed and tested on the Manitoba agro-landscape using agricultural landowners in selected pilot study areas. MAFRI staff led EG&S pilot projects: Investment Framework for Environmental Resources (INFFER) workshops and feasibility study, and development of Dennis Lake conservation auction pilot. Consultation with multiple stakeholders, including producer groups, environmental NGOs, conservation districts, municipal and federal government departments. MAFRI staff led a formal meeting with EG&S Initiative Stakeholders Knowledge Group (SKG) on June 28, 2011 and informal discussions with SKG members. MAFRI staff drafted an EG&S policy framework to move EG&S policy forward. Objective 6: To map soil in areas of particular sensitivity or proposed development to ensure the best possible decisions are made about land use and management in Manitoba. MAFRI s Soil Survey program consists of four key components that include field survey, laboratory analysis, data compilation and report/map production. Soil survey reports, maps and soil data are made available on the Manitoba Land Initiative. Reports are also printed and distributed through GO team offices (upon request) and are available on MAFRI s webpage. MAFRI has analyzed data on a municipal basis and soil survey will be focused in the Pembina, Southwest and South Parkland areas. Soil survey reports are complete in the RMs of Killarney-Turtle Mountain (1:50,000), Blanshard (1:50,000), Ritchot (1:20,000) and Springfield (1:20,000). Field work is underway in five RMs: o RM of Langford (1:50,000): 477 pits were completed in Twp 13-16W and 254 pits in Twp 14-16W; o RM of Elton (1:20,000): 243 pits were completed in Twp 12-17W, 18W,19W and 11-17W; 38

65 o RM of Cornwallis (1:50,000): 502 pits were completed in Twp 09-19W and 09-18W, o RM of Morris (1:50,000): 577 pits were completed in Twp 4-1W, 2W and 1E. A total of 360 mechanical analyses, 186 ph analyses, 19 electric conductivity and 18 calcium carbonate analyses were completed. Report and map preparation occurred in the Rural Municipalities of Hamiota (1:50,000), Roblin (1:50,000), DeSalaberry and Tache (1:20,000). o Seven thousand six hundred (7,600) lines digitized or edited in seven Twps in the RM of DeSalaberry. o Lines digitized in six sections in the RM of Langford. o Lines digitized in two sections in the RM of Cornwallis. Digitization of the following reports was completed in 2011/12 and will be made available on the MAFRI webpage in 2012/13. o D25 Sandy Lake (Town-site and area surrounding lake) o D35 - Certain areas within the South Riding Mountain Planning District o D54 - Russell and Binscarth (Town-sites and surrounding areas) o D56 - Souris, Wawanesa and Virden (Town-sites and surrounding areas) o D58 - Hallboro and Neepawa (Town-sites and surrounding areas) o D65 - Birtle, Elkhorn, Hamiota, Newdale, Rapid City, Shoal Lake, Strathclair and Benito- Durban Three (3) presentations were delivered at the annual Manitoba Soil Science Society meeting (MSSS) in Winnipeg and three articles were submitted to Farming for Tomorrow. Additional Results: Staff participated in the emergency call centre for the 2011 flood and in the programming development and delivery. Staff reviewed the Leavitt report on Paleolimnological Evidence of the Timing, Extent, and Potential Causes of the Eutrophication of Lake Winnipeg s South Basin (2011) and provided advice to MAFRI executive on The Save Lake Winnipeg Act and implications for the Manitoba agriculture industry. 2 (d) Agri-Environment Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 1, ,117 (506) 1 (2) Other Expenditures 2,524 2, (3) Grant Assistance - Manure Management Financial 6,844 8,025 (1,181) 2 Assistance Program Total Sub-Appropriation 10, ,396 (1,417) The under-expenditure is primarily due to expenditure management measures to defer filling vacant positions. The under-expenditure is mainly due to lower than anticipated costs incurred by producers for manure treatment projects under the Manure Management Financial Assistance Program in

66 Appropriation 2(e) Land Use The mandate of the Land Use Planning Knowledge Centre (LUPKC) is to promote sustainable agricultural practices on both private and Crown land including: Land use planning for both private and Crown lands, as guided by The Planning Act, and the Provincial land use policies; Delivery of the Agricultural Crown Lands Program as guided by The Crown Lands Act and applicable regulations; and Rangeland management for both private and Crown land, with emphasis on agricultural land use planning and multi resource use. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Support innovation to drive higher profitability for the agriculture sector. Communication and education regarding land use planning and policy issues, and the implications of land use regulations on agricultural operations. LUPKC represented MAFRI in redrafting the Provincial Planning Regulation (including the Agricultural Provincial Land Use Policies and the Livestock Regulation). Attended 30 meetings with municipalities, planning district boards, consultants and/or Manitoba Local Government (MLG) to discuss land use planning. Support policy development and contribute to planning for agriculture s future within Provincial Land Use Policies (PLUPs) and local development plans/zoning by-laws. Assisted municipalities and planning districts with the interpretation of provincial policy and procedures relative to adopting local support documents focused on land use planning for both private and Crown lands. Planning for agricultural and economic development in northern Manitoba. Participated on Northern Agriculture Program and Northern Healthy Foods Initiative (NHFI) to ensure land use policy allows for agricultural development in order to create healthy food opportunities. Facilitation of increased opportunities for food processing in Manitoba including opportunities for local food production, market garden and fruit growing operations, via input into land use planning that would protect these small parcels of land suitable for such crops from residential encroachment. Provided communication and training on land use planning, policy, legislation and regulations. Objective 2: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Protection for potential livestock operations and expansion through application of Farm Practices Guidelines in review of development proposals. Communication with producers and provincial departments on land use planning and policy issues and implications of land use regulations on agricultural operations. Participation in agricultural rural municipality based background studies providing agricultural input into municipal and planning district development plans and zoning by-laws. Staff attended approximately 30 meetings with councils, planning district boards, consultants and Manitoba Local Government (MLG) to discuss planning issues. 40

67 Staff met with producers to support and/or resolve subdivision and development plan issues. Staff provided articles for the Livestock Knowledge Centre Swine Update Newsletter including an article on the new Provincial Planning Regulation for the November, 2011 edition. Staff assisted MLG in developing the Agriculture Land Use Planning Resource Guide to supplement the new Provincial Planning Regulation and assist planning authorities in preparing their development plans. Development plans and zoning by-laws will provide for sustainable livestock development and expansion that is consistent with provincial regulations and in a way that minimizes land use conflict. Any restrictions on livestock development and expansion will be consistent with allowable restrictions as outlined in Provincial Land Use Policies. Reviewed 11 livestock operation policies as a part of the development plan and development plan amendment review process. Supported 88 local planning authorities in Manitoba for agricultural direction under The Planning Act (45 planning districts and 43 municipalities not in a district), as well as assisted 68 of those, who have already adopted a Livestock Operations Policy (LOP), 14 who are currently developing a draft document and six who still need to initiate an LOP document. Crown land rental rates reflect fair market value for forage production in Manitoba. In conjunction with the Agricultural Crown Lands Act Stakeholders Committee, staff initiated discussion relative to conducting the required triennial private pasture rental survey in 2012, the results of which will set the rental rate on agricultural Crown lands for Management and administrative support of 2,027 long term forage leases involving 1,459,501 acres; 84 cropping leases involving 12,190 acres; and 413 permits and special leases involving 53,675 acres, cumulatively generating approximately $1.5 million in revenue on Crown land. Provided management and administrative support for 1,892 long-term forage leases involving 1,420,041 acres, 81 cropping leases involving 11,146 acres, and 395 permits and special lease agreements involving 49,689 acres, cumulatively generating approximately $1.5 million in revenue on agricultural Crown land. Participation on the Agricultural Crown Lands (ACL) Team dedicated to: o Management, range management and land use planning. o Development of extension activities to increase carrying capacity on Crown lands. o Provide advice on ACL policy and procedures to improve delivery of the ACL program. Total carrying capacity of Crown lands under lease/permit as at March 31 st, 2012 was 645,830 animal unit months (AUMs). This capacity supports the livestock industry by providing the annual grazing requirement for 53,819 beef cows. Responsibility for management and disbursement of $1.5 million in tax dollars (grant in lieu) collected and disbursed through a trust fund to rural municipalities. Collected and disbursed approximately $1.6 million in tax dollars (grant in lieu) through a trust fund to rural municipalities. In conjunction with Manitoba Infrastructure and Transportation (MIT), Crown Lands and Property Agency (CLPA): achieve timely service for clients; a seamless program delivery; and record complete and accurate databases (i.e. Crown Land Registry and Agricultural Crown Lands System), all in compliance with acceptable agricultural policy, legislation and program activity. Staff managed and delivered the Agricultural Crown Lands Program on 1.5 million acres of Crown land, with continued support of CLPA as administrative agent. Provided authorization and recommendations on 107 parcels advertised for allocation. LUPKC scored and approved 44 applications for lease or permit, resulting in 43 allocations, provided recommendations and approval for 86 family transfers involving 517 parcels and 20 unit transfers involving 213 parcels. Reviewed and approved four cancellations for non-performance of covenant, one cancellation for non-use, eight cancellations for non-payment, and 41

68 reviewed/approved 91 leases for renewal. Administered 964 parcels of land under administrative agreement with seven rural municipalities, totalling 154,240 acres. Continued efforts towards drafting a service agreement between MAFRI and CLPA for the delivery of the agricultural leasing program in Manitoba, to support the mandates of CLPA (administration) and MAFRI (management). Participated with CLPA in a pilot project (Kaizen) to demonstrate the effect of becoming LEAN practitioners through the examination and streamlining of the agricultural Crown land program delivery. Several procedures have now been analyzed from which achievements and efficiencies in process will be documented, as well as identifying future improvements. Objective 3: Ensure infrastructure needs are appropriately addressed in Development Plans to allow for opportunities for value added and other rural economic development. Communicate and provide training on land use policy, legislation and regulation for producers, industry organizations and departments. Staff participated on the planning committee for the 2012 Manitoba Planning Conference as well as presented and chaired two sessions. Participated on the planning committee for the 2012 Manitoba Soil Science Society (MSSS) Conference. Municipalities and MAFRI will ensure that infrastructure needs are identified prior to approval of development plans. Provided education and support to municipalities identifying the importance of land use planning for future infrastructure requirements. Objective 4: Support rural economic development that is consistent with principles of sustainable, planned development as outlined in Provincial Land Use Policies (PLUPs). Increased awareness emphasizing the necessity for planned development via communication and training on land use policy, legislation and regulation for producers, industry organizations and departments. Local planning-related barriers to establishing rural businesses will be minimized in development plans and zoning by-laws, and policies that enable a variety of rural economic development activities will be adopted. Communicated with municipalities and planning districts to provide education and awareness regarding the importance of land use planning in Manitoba. Objective 5: Support sustainable rural economic development through technical, administrative and legislative review of planning documents and requests. Provide input into the resolution of disputes over agricultural land use issues including co-operation and co-ordination with staff of other departments in the preparation and presentation of agriculture s position at Municipal Board hearings (average of eight per year) and Planning District hearings. Staff presented at seven Municipal Board hearings. Departmental review of all development plans, zoning by-laws and amendments, and all subdivision proposals in agricultural areas. 42

69 Provide guidance on conditional use and variation proposals at the request of municipal councils to ensure land is appropriately subdivided and developed, to avoid conflict and/or restrictions on agricultural lands, operations and activities. Reviewed eight development plans along with 47 development plan amendments, 22 zoning bylaws, 46 zoning by-law amendments and 577 subdivision proposals. Participate with Manitoba Conservation and Water Stewardship and other government departments and agencies represented in Crown land planning and classification of Crown lands for multi resource management. Provide ongoing Crown land management by applying the principles of multi-use and development, thus facilitating economic development opportunities in rural Manitoba. Continued support in conjunction with Manitoba Conservation and Water Stewardship to facilitate effective management of unauthorized drainage of agricultural Crown lands. Reviewed the proposal for the Shale Valley Wildlife Management Area. Participated on regional Bloc Planning Committees in support of agriculture, to ensure the ultimate use of Crown land, and meet long term planning objectives of the Crown Land Assistant Deputy Minister s Committee (CLADMC). Objective 6: Support applied research and innovation to increase returns and opportunities for the value added sector. Municipal governments will develop land use plans that focus on ensuring long-term compatibility of farmrelated and non-farm-related uses of rural lands. Mentored municipal governments on the importance of land use planning to ensure that local planning documents minimize conflict and continue to promote sustainable agricultural activities. Improved productivity on agricultural Crown lands through extension of forage and rangelands management practices to producers and participation in activities focused on range management and multi resource use (i.e. brush management, beaver management and grazing management) on both private and Crown land. Attended 15 meetings related to rangeland health and the effects of climate change on grasslands, riparian health issues, community pasture management, and species at risk on Crown lands. Provide science and research from ongoing projects such as: Garland Project, the Native Pasture Improvement Program, the Manitoba Forage Benchmarking Project and the Forage Land Planner to support changes in range management, complementary use and productivity. Supported the continued development of a final report detailing the findings of the Native Pasture Improvement Program (initiated in 2005). This report will provide valuable data for innovative and sustainable pasture management practices. Continued development of final reports to summarize the conclusion of: The Garland Project (initiated in 1997 to evaluate the resource interaction of grazing management strategies for harvested areas and support co-management of Crown land), and the Forage Benchmarking Project (initiated in 2004, with a focus on gathering baseline data on native pastures in Manitoba to guide future extension activities relative to rangeland/pasture management and assist in the classification of Crown lands.) Identify areas suitable for commercial and industrial developments, and contribute to development of infrastructure plans. Assisted municipalities and planning districts in the development of local planning documents that will address current and future infrastructure needs including highway access, roads and waste water services. 43

70 Objective 7: Grow Manitoba s food industry. Increase the knowledge base amongst GO teams and other MAFRI knowledge centres on local development plans, zoning and subdivision activities to facilitate business development initiatives. Worked with staff on planning issues (approximately 700 land use responses related to development plans, amendments, zoning by-laws and subdivisions). Improved productivity on agricultural private and Crown lands through extension of forage and rangelands management practices to producers focusing on low cost technologies. Participated in projects, the results of which will support efficient rangeland management activities and sustain the environment, including the Yellow Quill Mixed Grass Prairie Project, with emphasis on improving the health of natural areas through a multi-faceted grazing management plan. Objective 8: Support applied research and innovation in rural economic development. Departmental review of development plans and zoning by-laws (including amendments to those documents), as well as subdivision proposals ensuring general conformity to provincial goals for use and development of agricultural lands, as outlined in Provincial Land Use Policies (PLUPs). Influence land use planning decisions that minimize conflict and/or restrictions on agricultural activities and operations. Participated in meetings relative to the new process for the Technical Review Committee and was an active member on the Pork Horizontal Team. Participated on the Odour Advisory Council with emphasis on a project by the University of Manitoba (funded by Manitoba Livestock and Manure Management) to document the scientific/social basis for separation distances. Assist in maintaining flexibility within development plans (including Livestock Operations Policies) to facilitate livestock expansion and diversification. Assisted in the adoption of local livestock operations policies that provide a sustainable environment for livestock producers, with options for development. Influence municipal land use planning decisions to ensure conflict and restrictions on agricultural activities and operations are minimized. Work with municipalities and planning districts preparing and reviewing development plans in the context of the livestock operation policy requirements under The Planning Act. Met with 12 councils and municipal councils and planning district boards to explain the position of agriculture with respect to land use planning decisions. Provide input and recommendations on land use related issues via assessment of 750 subdivision proposals in rural areas, conditional use applications, variation proposals and technical advice on proposals filed as per The Environment Act and land use reviews under The Planning Act. Reviewed and provided department input for 577 subdivision proposals, 87 Environment Act proposals, 13 highways proposals, 14 Oil and Gas Act proposals and eight road closing by-laws. Objective 9: Increase the capacity of rural and northern communities to drive local economic development. Development plans and zoning by-laws in northern and remote areas of the province will facilitate opportunities for food production, and minimize barriers to local food production. Worked with four northern communities in the review of land use plans to develop opportunities for economic development and healthy food strategies. 44

71 Education and awareness contributing to the sustainability and future of agriculture in northern Manitoba. Participated on the Northern Healthy Foods Initiative Horizontal Team. Collaborated with Four Arrows Regional Health Authority, Bayline Regional Round Table, Northern Association of Community Councils, Food Matters Manitoba, Frontier School Division, Parkland Regional Health Authority, Burntwood Regional Health Authority and NOR-MAN Regional Health Authority in the development of strategies to initiate healthy food opportunities. Objective 10: Increase entrepreneurial capacity in rural and northern Manitoba. Review and provide input on Aboriginal Traditional Area Agreement and Land Use Plans to ensure that the agricultural goals of the Provincial Land Use Policies and Crown lands are upheld. Participated on the Inter-departmental Working Group (IDWG) for Crown-Aboriginal consultations to provide agricultural advice, strategic direction and assist with legislative and policy development for Crown-Aboriginal consultation. Within an inter-departmental framework, expansion of agricultural opportunities in Traditional Use Plans by identifying and making available agricultural Crown lands for Aboriginal use. Incorporation of the Crown consultation process for First Nations, Métis communities and other aboriginal communities into current policies and procedures as part of the Agricultural Crown Lands Program delivery. Identify treaty land entitlement and work towards resolving outstanding land issues with Aboriginal people. Consulted with applicable First Nations regarding their traditional territory and significant sites, as well as attended 40 meetings with 10 First Nations to discuss matters relative to community pastures, land sales, Lake St. Martin and flooding issues. Met with Aboriginal and Northern Affairs on eight occasions to discuss First Nations issues. Continued participation with the Duty to Consult initiative with emphasis on working within the Framework Agreements to facilitate Treaty Land Entitlement. Conducted Crown-Aboriginal consultations for all land sales related to agriculture. Increased Aboriginal participation in the Agricultural Crown Land Leasing Program. Implemented changes in the allocation of Crown lands to ensure Crown-Aboriginal consultation is incorporated into current operations. Objective 11: Help government articulate a rural economic development vision and policy framework. Through regular meetings with industry stakeholders and commodity groups, provincial policy related to private and Crown land use planning will be modified to appropriately reflect industry goals and trends that meet the needs of agricultural producers. Participation in meetings with industry stakeholders and commodity groups to address current industry concerns and assist in long-term planning. Commodity and industry groups will increase their participation in municipal planning processes. Provided education and awareness regarding provincial legislation and regulations as well as the importance of land use planning for agricultural lands. Along with Agri-Environment Services Branch (AESB) of Agriculture and Agri-Food Canada (AAFC), provide grazing on 21 community pastures involving 395,506 acres during the summer grazing season. Along with AESB, administered provincial Crown land within 21 community pastures involving 395,306 acres via established federal/provincial agreements, as well as municipal/provincial agreements with respective municipalities who have agreed to secure municipal lands within the 45

72 pasture program. The pasture program was utilized by 443 patrons in 2011 and pastured 26,468 cows and heifers, 20,345 calves, 524 bulls, 3,741 steers, 699 horses, 38 stallions and 277 foals at foot. Negotiate agreements for municipal lands used in AESB pasture and strengthen business relationships. Continued liaison between MAFRI and Agriculture and Agri-Food Canada on all land use related issues. Objective 12: Enhance the environmental stewardship of primary agricultural production. Provide support to the Agricultural Crown Lands Appeal Board insofar as interpreting and supporting MAFRI policy and procedure. Provided administrative and management support to the Agricultural Crown Lands Appeal Board for three appeals, including two based on the allocation of land and one based on a cancellation for non-performance of covenant. Provide agricultural representation as part of the Sustainable Planning Co-ordination Team and the Livestock Working Group, the Provincial Land Use Policies Regulation review process and amendments to The Planning Act. Participated and provided agricultural representation to support the agricultural industry through efficient and proactive land use planning. Provide land use planning for Crown lands including multi land use co-operation and co-management to achieve the highest and best use of Crown land. Continued planning and research dedicated to sustainability on Crown lands through multiresource use and co-management strategies. Participated as part of the Protected Areas Initiative dedicated to building a network of protected areas that contain the biological diversity found in the varied landscapes of Manitoba. Reviewed 229 Crown land circulars from an agricultural perspective. Participated on the Invasive Species Council, Leafy Spurge Stakeholders Group and the Manitoba Ecosite and Rangeland Health group. Attended the Prairie Health Initiative Working Group meetings, working towards defining a strategy for climate change and ecological goods and services for rangelands in Manitoba. Participated on the working group for Riparian Health Initiative focusing on the development of new technology for riparian assessment purposes. Objective 13: Promote linkages between food production, food processing and the health of Manitobans. Strengthen linkages between community visioning documents and the development plan process by way of continued education and training on land use planning, policy, legislation and regulations. Conducted a presentation to the Charleswood Rotary Club and the 2011 Manitoba Soil Science Society (MSSS) Summer Tour on the topic of land use planning. Attended the University of Manitoba s Soil and Water Management Degree Course as a guest lecturer on land use planning and policy. Objective 14: Provide support to The Water Protections Act and The Planning Act through the incorporation of Watershed Management Plans into the development plan process. Agricultural land users will be recognized as key partners in the protection of surface and groundwater, agricultural uses of land will be protected within watersheds. 46

73 Integrated Watershed Management Plans (IWMPs) will outline the producers position as a key solution provider to surface and groundwater quality issues in watersheds, and will outline water supply issues related to the ability of farmers and agri-business to develop irrigation and water supply for processing. Provided input into the agriculture support document in partnership with AESB for the Dauphin Lake, Swan Valley and Rat-Marsh River IWMP documents. Development plans will appropriately reflect the role farmers play as solution providers in improving water quality, and will reflect water supply and infrastructure needs related to irrigation development and agriprocessing. Reviewed and edited the draft IWMP reports from Manitoba Conservation and Water Stewardship for West Souris River, Willow Creek and Whitemud Watersheds. Additional Results: Provided support to the livestock industry affected by the 2011 flood activity. Assisted with discussions and identification of possible Crown lands suitable for the Lake St. Martin re-location. Assisted in the developing of programming to support agricultural producers affected by chronic flooding in the Shoal Lakes Complex. Participated on the Interdepartmental Committee on Off-Road Vehicles to examine and establish a framework to balance off-road vehicle use in Manitoba and on Crown lands. 2 (e) Land Use Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits (42) (2) Other Expenditures Total Sub-Appropriation 1, ,

74 Appropriation 2(f) Less: Recoverable from Rural Economic Development Initiatives (REDI) This sub-appropriation provides for the recovery of capital grant expenditures related to the Manure Management Financial Assistance Program from Rural Economic Development Initiatives. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Enhance the environmental stewardship of primary agriculture production. Sustainable development and management of the livestock industry in Manitoba. REDI funding of $2.347 million was provided in support of the Manure Management Financial Assistance Program to hog production facilities in Manitoba to build additional manure storage capacity in order to eliminate winter application of manure and to repair manure storage structures to reduce the risk of leakage. 2 (f) Less: Recoverable from Rural Economic Development Initiatives Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Recoveries (2,347) - (2,919) Total Sub-Appropriation (2,347) - (2,919) The variance is mainly due to lower than anticipated costs incurred by producers for manure treatment projects under the Manure Management Financial Assistance Program in

75 Appropriation 3 Risk Management, Credit and Income Support Programs Appropriation 3(a) Manitoba Agricultural Services Corporation (MASC) The Manitoba Agricultural Services Corporation (MASC) is a Crown corporation that provides risk management solutions for farmers, financing options for agricultural and rural businesses, and other programs and services that support the development and sustainability of rural Manitoba. MASC's responsibilities and governance are outlined in The Manitoba Agricultural Services Corporation Act. MASC is responsible for developing and delivering AgriInsurance in Manitoba. AgriInsurance is provided on 60 different crops, covering about 90 per cent of Manitoba s annual crop land. Costs are shared between insured producers and the governments of Canada and Manitoba. MASC offers a separate Hail Insurance policy to producers enrolled in AgriInsurance. Producer premiums cover all of the related hail costs, including administration. In addition, Wildlife Damage Compensation is provided to producers who suffer financial losses due to damage caused by waterfowl, big game and natural predators. The cost of Wildlife Damage Compensation is shared between the governments of Canada and Manitoba. MASC provides loans and loan guarantees to agricultural producers and rural businesses. Special emphasis is placed on young farmers through the Bridging Generations Initiative, and on farm diversification and value added production, which are vital to the future of rural communities. In addition, MASC facilitates loans to small businesses in rural Manitoba by providing loan guarantees through the Rural Entrepreneur Assistance (REA) and Operating Credit Guarantees for Rural Small Business programs. Funding for all of MASC s lending programs is provided by the Manitoba government. MASC administers a number of other support programs for Manitobans. More information on these programs and on MASC s insurance and lending activities and associated results can be found in MASC s 2011/12 Annual Report. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Develop effective risk management programs for producers. Insure $2.05 billion of AgriInsurance liability, covering 9.3 million acres and 8,800 farming operations. Protect $580 million of hail insurance liability, covering 4.2 million acres and 4,400 farming operations. Pay $2.7 million in wildlife damage compensation. Provide AgriInsurance premium rebates of $15 thousand under the Young Farmer Crop Plan Credit Program. AgriInsurance liability totalled $1.72 billion covering 9.6 million acres, with 8,929 insured farming operations. Liability was lower than expected due to over 2.9 million acres that could not be seeded as a result of excess moisture. Hail insurance liability totalled $493 million on 3.5 million acres, with 3,937 insured farming operations. Liability was lower than expected due to the 2.9 million unseeded acres. Wildlife Damage Compensation paid out $2.0 million in compensation. 49

76 Sixty-seven young farmers qualified for Young Farmer Crop Plan premium credits totalling $18.5 thousand. Objective 2: Provide affordable credit for primary agriculture. Administer a total loan/guarantee portfolio that facilitates $600 million of credit to 4,200 Manitoba producers. Provide $77.2 million in new loans through MASC s loan programs. Facilitate $85.2 million in loans to agricultural enterprises through the private sector by providing $21.3 million in loan guarantees. Provide interest benefits of $1.85 million to young farmers. MASC s portfolio of direct loans and loans facilitated by guarantees totalled $642.4 million, covering 3,284 Manitoba farmers. $107.7 million in new loans were provided through MASC s loan programs in 2011/12. $74.2 million in private sector agricultural loans were facilitated through MASC, providing $18.6 million in loan guarantees. $1.7 million of benefits were provided to young farmers through the Young Farmer Rebate and Management Training Credit components of the Bridging Generations Initiative. Objective 3: Retain and increase business activity and employment in rural Manitoba. Facilitate $5.1 million in term loans and $2.0 million in operating loans for rural economic development by providing loan guarantees totalling $4.6 million. Through the Rural Entrepreneur Assistance (REA) program, MASC facilitated $4.3 million in private sector term loans by providing $3.4 million in loan guarantees. MASC facilitated a further $900 thousand in private sector operating credit by providing $225 thousand in loan guarantees through the Operating Credit Guarantee for Rural Small Business program. 50

77 3 (a) Manitoba Agricultural Services Corporation Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Grants/Transfer Payments: (1) Administration 8, ,655 (2,218) 1 (2) AgriInsurance 38,958 50,351 (11,393) 2 (3) Wildlife Damage Compensation 1,097 1,477 (380) 3 (4) Net Interest Costs, Loan Provisions and (149) 412 (561) 4 Program Incentives Total Sub-Appropriation 48, ,895 (14,552) The under-expenditure is mainly due to the unanticipated allocation of administration costs to programs relating to the 2011 Flood, decreased regular program costs due to a high level of emergency program activity, expenditure management measures, and decreased adjusting costs due to fewer AgriInsurance claim adjustments. The decrease in premiums is primarily due to the 2.9 million acres that could not be seeded due to excess moisture. The under-expenditure is mainly due to an unanticipated decrease in volume for wildlife and waterfowl claims which was partially offset by an increase in the number and average cost of livestock predation claims. The variance is primarily due to a decrease in loan provisions required due to decrease in required loan provisions due to financial improvement in the beef sector, partially offset by an increase in loan provisions required for the Manitoba Assistance Loan Program. 51

78 Appropriation 3(b) Agricultural Income Stabilization To fund the Business Risk Management (BRM) suite of programs that provides producers with tools to manage business risks largely beyond their control. These programs help producers reduce income losses stemming from low commodity prices, reduced production, or natural disasters. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Producers will realize increased stability in their net incomes, with government assistance when their margin drops. The provincial target is that producers will attain at least 70% of the previous five-year net market income, including program payments was a challenging year for many producers as excess rainfall resulted in considerable yield losses and unseeded land. BRM programs helped return producers to close to the previous five year total average income. Net Cash Income (NCI) and BRM Payments: ($millions) Program Year NCI before BRM Inventory Change Net BRM Payments Triggered* Total (102.5) , , (575.9) Average (prelim.) (343.0) 599.3** % of average: 99% * Includes AgriStability, AgriInvest, AgriInsurance net of producer premiums, AgriRecovery and preceding programs (based on the year triggered, not the year received) ** Consists of AgriInvest ($42.2 million), AgriInsurance ($255.7 million net of producer premiums), AgriStability ($161.8 million), and AgriRecovery ($139.6 million) Most commercial producers will participate in the programs. The provincial target for AgriStability and AgriInvest is that producers representing at least 80% of all farm market revenues will participate. The last full program year for which statistics are available is In that year, participation in AgriStability represented 75.1% of market sales. Participation in AgriInvest represented 96.6% of market sales, and producers deposited 88% of the maximum allowed. 52

79 Program Allowable Sales (all tax filers) Allowable Sales (participants) % of Allowable Sales Participating ($ millions) 2009 AgriStability 4, , % 2009 AgriInvest* 4, , % * excludes supply management (dairy, poultry, eggs) Note: Excludes participants with gross revenue under $10,000 Source: AAFC, Statistics Canada (Canadian Farm Financial Database) AgriStability participation includes only those who submit their full financial results at the end of the year. Higher grain prices reduced expectations for program benefits, which may have affected participation. Additional Results: AgriStability For the 2010 program year (as of June 24, 2012): Nine thousand, six hundred and twelve (9,612) Manitoba producers paid the fee to participate. One thousand, seven hundred and eighteen (1,718) producers had received a final payment for a total of $63.5 million, of which Manitoba s share is $25.4 million (96.1% of received applications processed). For the 2011 program year (as of June 24, 2012): Approximately 8,854 Manitoba producers had paid the fee to participate. Four hundred seventy-nine (479) interim payments were made for a total of $40.9 million. Final payments will be provided to producers starting 2012/13. The 2011/12 appropriation represents expected payments for the 2011 program year, and adjustments for prior years. Payments must be estimated at year end, because the information needed to calculate 2011 program year payments is not available until participants file their tax forms, usually in AgriInvest For the 2010 program year (as of June 24, 2012): Fourteen thousand, one hundred and eighty-two (14,182) Manitoba producers were eligible to participate for total benefits of $44.0 million. Eleven thousand, two hundred and forty-seven (11,247) producers had made a matchable deposit for a total of $38.6 million. Governments matched the producers deposits, bringing the total AgriInvest deposits to $77.2 million. The 2011/12 appropriation represents expected government contributions for the 2011 program year. The actual amount required will be determined after all participants file their tax forms and make their deposits. As deposits are not known at year end, the amount recorded is based on estimated farm cash receipts. AgriRecovery Excessive precipitation in the winter and spring of 2011 led to overland flooding and high water levels that flooded land along a number of lakes and rivers. Approximately 3 million acres of annual cropland were too wet to seed and large areas of pasture and forage producing land were impacted. On May 24, 2011, 53

80 Manitoba announced the Manitoba Building and Recovery Action Plan (BRAP) to help families, producers, businesses and communities cope with flooding and build for future flood mitigation. The action plan included programs for the Hoop and Holler Bend and Portage Diversion areas, and areas affected by high water levels in Lake Manitoba. The AgriRecovery framework was utilized to provide flood recovery programs to Manitoba producers outside the BRAP areas. On July 7, 2011, Manitoba and the federal government announced a total of $194 million for a suite of programs: o Manitoba Excess Moisture Assistance Program (MEMAP) - $30 per acre for unseeded and flooded land. o Manitoba Forage Restoration Assistance Program (MFRAP) - $50 per acre to reseed forage and forage seed stands. o Manitoba Transportation Assistance Program (MTAP) - Compensation for cost of moving feed to animals or animals to feed. o Manitoba Forage Shortfall Assistance Program (MFSAP) - $0.60 per cow per day to purchase feed for summer and winter needs. o Manitoba Greenfeed Assistance Program (MGAP) - $15 per acre to plant crops to increase supply of feed and use moisture. o Manitoba Infrastructure and Individual Assessment Program (MIIAP) - Assistance for producers not eligible for assistance due to limitations under Disaster Financial Assistance or other restrictions. An AgriRecovery program of approximately $219 thousand was also provided in 2011/12 to assist a turkey producer and a turkey hatchery for costs incurred to recover from an outbreak of avian influenza in November (b) Agricultural Income Stabilization Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. Grants/Transfer Payments: $(000s) FTEs $(000s) $(000s) (1) AgriInvest Agricultural Income Stabilization 96,323-50,518 45,805 1 (2) 2011 Agri Recovery Programs 141, ,605 2 Total Sub-Appropriation 237,928-50, , The over-expenditure is mainly due to higher than anticipated costs associated with 2011 program payments and prior year adjustments based on federal forecasts and actual AgriStability and AgriInvest program activity, The variance is attributable to the delivery of programs due to the excess moisture and flooding conditions experienced in The 2011 AgriRecovery Program mitigated the impacts of the disaster by providing financial assistance to farmers for the restoration and maintenance of their farms in time for the 2012 crop year. Programming was delivered by the department and Manitoba Agricultural Services Corporation at a cost of $141,386, which was partially offset by $72,210 in revenue from the federal government. The department also incurred $219 in costs associated with assistance provided to turkey producers related to the 2010 Avian Influenza outbreak. Costs were partially offset by $131 in revenue from the federal government. 54

81 Appropriation 3(c) Food Industry Development This program provides support to Manitoba s food industry sector and fosters sustainable development and investment in that sector. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Increase sales of Manitoba produced food and agri-products to Manitobans and increase sales at Manitoba Farmers Markets. Twenty percent annual increase in market share of Manitoba food products. Twenty percent annual increase in availability and sales of Manitoba-produced agri-food products. Provided $516.4 thousand to the Manitoba Food Processors Association for the second year of the Buy Manitoba Program. This program encourages Manitobans to purchase locally processed and/or produced food products, through brand identification, recognition and marketing. The funding provided was utilized for the hiring of a full time program manager and a part time communications officer; brand development and design; and costs associated with the official public launch that took place on April 26, Objective 2: Grow Manitoba s food industry. Diversification and growth of Manitoba s food manufacturing/processing industry with the development of ten new food products and/or enterprises in 2011/12. The Manitoba Agri-Innovation Suite program was re-profiled to Commercialization Support for Business (CSB) program which is administered by Manitoba Entrepreneurship, Training and Trade. MAFRI staff consulted with entrepreneurs/businesses relating to the development of 30 food related projects. Sixteen (16) food related projects were approved in 2011/12 for a total of $198 thousand under CSB. MAFRI staff gave presentations on the CSB program to 60 entrepreneurs and service providers at five regional events. 3 (c) Food Industry Development Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Grants/Transfer Payments (42) Total Sub-Appropriation (42) 55

82 Appropriation 3(d) Farmland School Tax Rebate To generate greater net farm income and foster increased equity amongst rural land owners in support of educational costs. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Enhance farm profitability through reduced input costs. Net farm income will increase. Local education costs will be more equitably distributed. As of March 31, 2012, Manitoba Agricultural Services Corporation (MASC) increased net farm income by providing $31.6 million in rebates associated with 2011 property taxes. Rebating 80% of the school taxes levied on farmland represents a significant move towards a more equitable distribution of the school taxes paid by all property owners. 3 (d) Farmland School Tax Rebate Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Grants/Transfer Payments 36,905-35,515 1,390 Total Sub-Appropriation 36,905-35,515 1,390 56

83 Appropriation 3(e) - Less Recoverable from Rural Economic Development Initiatives (REDI) This sub-appropriation provides for the recovery of expenditures from the Rural Economic Development Initiatives related to the Food Industry Development Program; and funding support to Manitoba Agricultural Services Corporation related to the Rural Entrepreneur Assistance and Community Works Loan programs. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objectives: Increase sales of Manitoba produced food and agri-products to Manitobans and increase sales at Manitoba Farmers Markets. Grow Manitoba s food industry. Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Provision of the necessary funding allows for the delivery of the Food Industry Development, Rural Entrepreneur Assistance (REA) and the Community Works Loan programs, to meet the requirements of rural and northern Manitoba. The performance of the funded programs is reported within Rural Economic Development Initiatives (REDI). Funding of $551.4 thousand was provided for the salaries, operating costs and loan loss provision for the REA Program. $516.4 thousand was provided through the Food Industry Development Program for the second year of the Buy Manitoba Program which encourages Manitobans to purchase locally processed and/or produced food products, through brand identification, recognition and marketing. Funding of $149.1 thousand was provided for interest costs related to existing loans under the Community Works Loan Program. 3 (e) Less: Recoverable from Rural Economic Development Initiatives Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Recoveries (1,217) - (1,288) 71 Total Sub-Appropriation (1,217) - (1,288) 71 57

84 Appropriation 4 Agri-Industry Development and Innovation The Agri-Industry Development and Innovation Division includes the following knowledge centres: Livestock Industry, Chief Veterinary Office/Food Safety, Crop Industry, Agri-Environment, Land Use Planning, and Agri-Food Innovation and Adaptation. The knowledge centres provide technical support, leadership, specialized services and information to staff, producers, and industry to enhance the development of Manitoba s agri-food industry and rural economy. They provide advice and professional support in the areas of agronomy, livestock production, veterinary medical science, food safety, diversification, research, innovation and adaptation. They develop and extend leading-edge knowledge in specialized areas and also provide advice on the control and prevention of crop and livestock diseases. They administer the many and various programs including the operation of the veterinary and crop diagnostic laboratories. The knowledge centres provide liaison and co-ordination of research with provincial and federal agri-food research agencies. Agri-Food Research and Development Initiative (ARDI) This initiative provides funding for an agriculture development and research initiative aimed at enhancing diversification and value added opportunities in Manitoba s agri-food sector. Grants to the University of Manitoba and the Prairie Agricultural Machinery Institute (PAMI) These grants provide funding in support of agricultural research. Appropriation 4(a) Livestock Industry To advance Manitoba s livestock industry by utilizing leadership capacity and technical expertise to develop and deliver innovative extension and business development programs. To enhance animal health in Manitoba by providing accurate, timely and affordable veterinary diagnostic services through the Provincial Veterinary Diagnostic Laboratory and supporting veterinary rural practice through administration of the Rural Veterinary District program, Large Animal Veterinary Retention Program, Veterinary Science Scholarship Fund and Veterinary Summer Student Program. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Support innovation to drive higher profitability for the agriculture sector. Work with industry and research organizations to evaluate and implement opportunities for industry development and diversification. Pursued opportunities for a natural feed ingredient. Assisted with ARDI application to support further trials at the St. Boniface Hospital Research Centre investigating cell tissue cultures, extraction methods and toxicity testing. Assisted stakeholders with the formation of a registered business. Continued working with Manitoba Sheep Association to evaluate out-of-season breeding of sheep in the Manitoba environment. This is the final year of a two-year project funded through ARDI. 58

85 Continued evaluating the feasibility of commercial freshwater land based aquaculture through the Manitoba - Canadian Model Aqua-Farm Initiative. Participated on the Canadian Council of Fisheries and Aquaculture Ministers - Strategic Management Committee for Aquaculture. Participated on the Canada - Manitoba Fisheries Advisory Committee. Collaborated with the University of Manitoba (U of M) on the Growing Forward funded Residual Feed Intake (RFI) Research project. Staff worked with producers to locate the 65 bulls required to conduct a feeding trial at the Glenlea Research Station. Participated on the strategic advisory committee which provides direction for the Western Beef Development Centre in Saskatchewan. Represented Manitoba on the Water Quality Task Group of the Canadian Council of Ministers of the Environment (CCME) - Agricultural Water Use Sub-Group. Provided ongoing support for the work of the Vaccine and Infectious Disease Organization (VIDO) through a grant targeted towards the practical research and development of vaccines that address many important livestock diseases. Information on research and new technologies will be transferred to industry. Responded to hundreds of producer, industry and staff requests for information on many aspects of livestock production. Provided feeding rations to Manitoba livestock producers. Planned and delivered the 2011 Brandon Hog Days with approximately 1,000 in attendance. Planned and delivered the 2012 Manitoba Swine Seminar with approximately 390 in attendance. Planned and delivered the 2011 Manitoba Grazing School with over 160 in attendance. Planned and delivered the 2012 Manitoba Beef and Forage Days at five different locations with approximately 450 in attendance. Served as co-chair of the organizing committee for the 2012 Western Nutrition Conference (WNC). The committee consists of MAFRI, feed industry and university representatives and is responsible for the planning and delivery of the WNC to the feed and feed-related industries. The WNC will take place in Winnipeg in September, Participated in the planning and delivery of the 2011 Provincial Pasture Tour. Fulfill obligations under the tripartite agreement by writing news articles on BRC research, assisting with field days and assisting MBP with workshops and posting of information. Worked with Agriculture and Agri-Food Canada (AAFC)-Brandon Research Centre (BRC) and Manitoba Beef Producers (MBP), as part of the Tripartite Agreement, for the purpose of extending research information and results to producers and industry stakeholders. This included writing news articles on BRC research, assisting with field days, and assisting MBP with workshops / posting of information. Maintained the research webpage on the MAFRI website to assist with the extension of research activities and findings relating to the Manitoba beef industry. Provide technical assistance in the delivery of whole systems research such as the University of Manitoba Riparian Management project and MAFRI s Polycropping project. Participated in organization and planning of the University of Manitoba s Riparian project which included providing assistance in the field for all collection periods. Participated in the organization and delivery of a polycropping project which included selecting producer sites, gathering data, reporting on the results and extending the information to clients through a variety of extension tools such as trade booth displays and delivery of presentations to different beef events around the province. Staff training update sessions on livestock management will be held at least once annually for both LKC and GO team staff. 59

86 Assisted with the development and delivery of a two-day planning and technical workshop for GO teams, livestock and forage staff. Information on new and current production strategies will be transferred to producers via the writing of factsheets, web pages and newsletters. Submitted an article on liver flukes to Cattle Country, an article on anthrax to the Manitoba Veterinary Medical Association (MVMA) newsletter and an article on the effects of mild weather on livestock to the Manitoba Co-operator. Wrote factsheets on Livestock Biosecurity during a Flood and Anaplasmosis. Contributed to and mailed out Sheep Sense, a quarterly newsletter for Manitoba sheep producers. Edited and published three issues of Swine Updates, a newsletter for Manitoba swine producers. Presentations will be delivered on production management, cost of production and animal health and welfare to over 1,000 participants at local and provincial meetings such as Beef and Forage week, Ag Days and Manitoba Grazing School. Staff delivered more than 100 presentations on a wide variety of topics including animal health, biosecurity and production management. Highlights included: o Co-ordinated two (2) continuing education meetings for rural veterinarians and technicians about sheep and goat diseases and biosecurity. Seventy eight (78) in attendance. o Delivered a training workshop to over 20 participants on the use of the FAMACHA card (anemia detection through eye color) to minimize the unnecessary use of anthelmintics for parasite control in sheep and goats. o Delivered a presentation on goat welfare as an invited speaker at the International Goat Symposium in Ontario to more than 400 participants. Participated in the planning and delivery of the 3 rd MooMania event which is held in conjunction with the Provincial Exhibition at the Livestock Expo. Presented at Beef and Forage Week on Calving issues and vaccinations and Ask the Vet. Co-ordinated an educational seminar with the Manitoba Bison Association. Farm visits as required followed by detailed actual farm and facility plans generated for specific individual facilities. Conducted 20 sheep and goat farm visits to address husbandry, health and facilities related concerns. Conducted 35 bison producer visits re: husbandry, facility design and/or alterations, breeding stock selection and other issues concerning bison. Completed 32 detailed farm and facility plans. Objective 2: Increase income that producers receive from the marketplace. Assist producers individually and by means of producer and industry meetings in developing production and marketing systems to create increased income generation from diversification opportunities in livestock production. Continued to support Dunn-Rite Food Products Ltd. in the processing and marketing of Halal chicken products. Provided support and assistance to a provincial abattoir for the Halal slaughter of sheep, goats and beef. Assisted piglet producers in developing a co-operative to increase purchasing power and the ability to maximize training dollars across their organization. Participated in national sheep, swine and beef value chain round tables with the objective of enhancing Canadian competitiveness and profitability through a broad, solutions-based approach that encourages industry-led solutions to identified problems. 60

87 Updated cost of production for three types of bison production enterprises. Updated cost of production for five types of swine production enterprises. Distributed weekly market reports from the Canadian Bison Association to bison producers. Objective 3: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. All auction marts will be inspected at least three times per year, all livestock dealers and agents buying livestock in Manitoba are licensed, payment to producers is within the legislated time period, and manifests are made available. Completed required auction mart inspections and addressed all associated concerns. Administered dealer/agent licensing program with approximately 100 licensed dealers and 100 licensed agents. Administered the brand program with over 1,600 registered brands. Subsequent to the default of G&M Livestock in February 2011, distributed the G&M bond to eligible claimants on a pro rata basis. Revised livestock manifests to include premise ID information as recommended by the federal/provincial Cattle Movement Reporting Working Group. Producers within the Riding Mountain Eradication Area (RMEA) will have access to on-farm risk assessments and preventative strategies such as the guardian dog and barrier fencing programs. Staff continued their involvement in tuberculosis (TB) risk management in conjunction with the RMEA. Specific activities included: o Tendering for the construction of six stackyard fences to prevent access by wildlife to livestock feed supplies. o Ongoing consultation with industry stakeholders on eradication strategies. o Active involvement in the TB task group and the TB expert working group. Encourage producers to make use of appropriate risk management strategies by means of producer meetings. Delivery of 43 biosecurity meetings across the province in conjunction with Manitoba Pork Council and Canadian Swine Health Board. Approximately, 450 producers and staff attended. Objective 4: Increase the number of new entrants (farm and farm labour) into primary agriculture. Provided unbiased extension services to producers recently entering into various livestock industries. A maximum of four qualified applicants will enter the dairy industry through the Dairy Farmers of Manitoba New Entrants Program. There were three applicants to the program in 2011/12 and two were approved. Further dairy extension activity occurred with barn set up and manure storage consultation. Objective 5: Grow Manitoba s food industry. Work with industry stakeholders and the Manitoba Cattle Enhancement Council to develop, expand and upgrade federal and provincial slaughter plants. Provided technical support regarding the availability of slaughter animals in Manitoba to support the potential development of federal slaughter capacity. Objective 6: 61

88 Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Investigate the feasibility of hog production and marketing at The Pas, assisted by access to the local processing plant. No further activity in 2011/12 as the project was put on hold due to a change in First Nations staffing (i.e. a new Economic Development Officer). Provide management assistance to the First Nations Bison Marketing Station. Co-ordinated ongoing educational sessions with the Manitoba First Nations Bison Marketing Station participants. Conducted biweekly visits to First Nations Bison Marketing Station working with the station manager in the areas of marketing, records and bison husbandry. Visits also served to build the confidence of the manager in operating the station. Assisted with the application to form the Manitoba First Nations Bison Co-operative Ltd. and the development of by-laws. Assisted with development of a logo for the co-operative and their products. Work with the First Nations Bison Marketing Station to further develop markets for Manitoba First Nations branded bison both locally and in Europe (e.g. Germany). Continued working with First Nations Bison Marketing Station participants in development of markets for First Nations product in Manitoba. Due to lack of federal or EU slaughter facilities in Manitoba, it is difficult to develop markets outside of Manitoba. Worked with First Nations Bison Marketing Station and Kelwin Consulting in the development of a feasibility study for a First Nations EU processing and kill facility. Provide on-site advice, training, demonstration, and extension resources to develop First Nations/Northern livestock industries. Completed a detailed consultation with an Economic Development Officer and a potential bison herd manager of a First Nations band looking at starting a new bison operation. Consulted with a new bison producer in The Pas in person and by telephone. Worked with a local processor on marketing and processing of bison from First Nations Bison Marketing Station. Additional Results: Continue working with one ex-pregnant Mare Urine (PMU) producer to reuse the empty facilities to produce lambs by adopting new technologies. Continuing consultation with swine producers to modify empty hog barns to raise sheep. Continued to support and assist individuals and companies wishing to capitalize on growing niche markets for fresh and local lamb and goat products. Objective 7: Enhance the environmental stewardship of primary agriculture production. Provide producers with strategies for sustainable manure management including treatment and storage options, and alternative feeding and housing practices. As MAFRI representative, participated in seven Manitoba Livestock Manure Management Initiative (MLMMI) meetings to review manure related project proposals for funding. Participated in four MLMMI sub-committee meetings to provide support and direction to the Prairie Agricultural Machinery Institute (PAMI) manure separator testing project. Participated in three Phosphorous Committee meetings with industry and the University of Manitoba to discuss research, demonstration and extension needs of the livestock industry to better manage manure so as to reduce phosphorous losses to the environment and comply with regulatory requirements by

89 Staff presented information on manure application technologies at two manure applicator training courses. Worked with Manitoba Egg Producers (MEP) Board to develop design criteria for lower cost solid manure storages. Staff is working with the Chief Veterinary Office (CVO) to establish methods to dispose of mass mortalities should a foreign animal disease or border closing event occur. Provide assistance to the Intensive Livestock Operations Technical Review process. Completed six technical reviews for new or expanding livestock operations and attended municipal council conditional use hearings for each proposal. Participated on a multi-departmental committee to develop a new technical review process as required by regulation for January Objective 8: Enhance the safety of the food supply in Manitoba. Increase the knowledge, development and uptake of on-farm food safety programs. Continued providing knowledge and support to the sheep and beef industries for the uptake of the On-Farm Food Safety program. In 2011/12, 10 producers signed on with the sheep and goat program and 206 with the beef program. Trained 15 private veterinarians through the Canadian Swine Health Board Biosecurity Initiative and nine through Growing Forward for on-farm veterinary biosecurity visits. Continued to work with the needle-free injector program through Growing Forward and On-Farm Food Safety programming. Work with industry in the organization and delivery of the Verified Beef Program. Co-ordinated seven Verified Beef Program meetings. Develop a Canadian Bison Association on-farm food safety program at the First Nations Bison Marketing station. Continued to work with First Nations Bison Marketing Station in the development of an On Farm Food Safety program incorporating management principles which are essential in maintaining consumer confidence in bison products. Continue to provide on-farm milk quality services with Dairy Farmers of Manitoba. Staff made 43 farm calls to Manitoba dairy producers to troubleshoot milk quality and taste issues. All calls were referred to the LKC by producer relations at Dairy Farmers of Manitoba. Objective 9: Protect human health from zoonotic diseases, animal health from serious diseases and the welfare of domestic animals. Administered grants to 27 Veterinary Services District clinics. Administered the Veterinary Services District operating grant of $464 thousand. The grant is distributed among 27 Veterinary Service Districts. Staff assisted the Veterinary Service Commission (VSC) with the dispersal of the $180 thousand Veterinary Technical Enhancement Grant. The extension veterinarian worked directly with the Veterinary District boards and the VSC to address local issues in the delivery of veterinary services to their communities. Administer veterinary student scholarship and STEP placement programs. The Large Animal Veterinary Retention Program provided 10 scholarships totalling $50 thousand to Manitoba students in their third or fourth year at the Western College of Veterinary Medicine. In return for each $5 thousand award received, the recipient has agreed to work for one year in a 63

90 rural Manitoba veterinary clinic. A total of 13 Veterinary Sciences Scholarships worth $1.2 thousand each were awarded in Currently 20 veterinarians are writing off a portion of their scholarships by providing veterinary service to rural Manitoba. All six students who received scholarships and graduated in 2011 returned to work in rural Manitoba. In 2011, 13 veterinary students were placed with rural veterinarians for summer employment through the Student Temporary Employment Program (STEP). Participate on the CVO s animal welfare advisory committee. Attended meetings and gave input to the animal welfare committee. Provide input into the development of national standards for Beef Codes of Practice. Input was given to the Beef Code of Practice committee which is revising the nationally developed guidelines for the care and handling of beef animals. Expanded and enhanced services to meet industry and government demands which included the construction of a Foreign Animal Disease (FAD) laboratory and the enhancement of electronic data collection system. Veterinary Diagnostic Services: o Veterinary Diagnostic Services (VDS) received 13,811 cases and performed 94,648 tests. Tests and revenue were down 30% and 19% respectively over 2010/11. o Decreased procedures and revenue in 2011/12 are due to discontinued Enzyme-Built Immunosorbent Assay (ELISA) testing for swine and avian as well as Chronic Wasting Disease, Bovine Spongiform Encephalopathy, Scrapie, bovine tuberculosis and toxicology testing in February of This was due to air quality issues in areas of the laboratory. o ELISA testing for swine was resumed in February o Capital assets acquired include a hematology analyzer for Clinical Pathology, ultraviolet microscope for Microbiology, LED light for an ultraviolet microscope, a thermocycler in virology and a digital X-ray for post mortem. Reportable diseases: o Detection of Avian Influenza H5N2 virus infection in breeding turkeys in November VDS continues to monitor for avian influenza with no positive cases. o Infectious Laryngotracheitis Virus: Three cases were reported to Manitoba Chief Veterinary Officer (CVO) and to the Canadian Food Inspection Agency (CFIA). o Anthrax: 21 Polymerase Chain Reaction (PCR) tests for anthrax with two positives from one farm reported to the Canadian Food Inspection Agency (CFIA) and CVO. o A Canada wide advisory was issued regarding outbreaks of the neurological form of EHV-1 (equine herpes virus). VDS diagnosed one EHV-1 positive case by PCR. No further cases. The disease is not reportable but was of considerable concern to the horse community. o Toxocara vitulorum in bison calves was discovered, which is the first case of this roundworm parasite diagnosed in Canada. Expanded and Enhanced Service: o Installed and validated a new thermal cycler to improve the quality of conventional PCR tests and to obtain faster results. o Redesigned all DNA real time PCRs to use FastAdvanced chemistry for faster results. o Redesigned all DNA and RNA real time PCRs to include internal cellular r18s assay for efficient quality control. o Introduced new real-time PCR assays for one Swine influenza virus subtypes H1N1 and H3N2 and two Infectious bronchitis viruses. o Introduced an improved conventional PCR for Brachyspira pilosicoli. o Installed and validated a new cryostat to improve the quality of fluorescent antibody tests. 64

91 o o o o o o o Participated in the proficiency testing for Porcine Respiratory and Reproductive Syndrome virus PCR, ELISA and indirect fluorescent antibody tests; porcine circovirus Type 2 PCR tests and PCR and ELISA tests for foreign animal diseases. Maintained certification for four technologists for foreign animal disease PCR tests. Dr. T. Joseph was selected as a technical assessor for the Standard Council of Canada to perform technical assessment of virology laboratories for ISO accreditation. Dr. T. Joseph participated in the technical re-assessment of the National Centre for Foreign Animal Diseases for ISO accreditation in November and December Dr. A. Galezowski and Clinical Pathology staff were trained on the new hematology analyzer and validated test methods. VDS management and laboratory supervisors participated in the Kaizen project in October A review of VDS accessioning was completed in collaboration with the Kaizen consultant. Dr. Angelica Galezowski visited the Prairie Diagnostic Centre at the Western College of Veterinary Medicine to obtain samples for training, teaching and continuing education purposes for the clinical pathology staff. Assisted CVO in animal welfare investigations, VDS staff participated in 14 cases. Dr. Mark Swendrowski testified as an expert witness in a humane animal welfare case. o o Communication with Clients: o New revised laboratory accession forms were placed on the MAFRI website. o VDS staff continue to publish a quarterly newsletter that is distributed to veterinary clients. o Presentation: Review of Livestock Knowledge Centre and Veterinary Diagnostic Services (VDS) for the MVMA Licensing Session given by Dr. Copeland. o Animal Health Technician Students from Red River College toured VDS and received presentations by Dr. Copeland and Dr. Galezowski. Publications: o Rodriguez-Lecompte, J.C., Shekhar, S, Joseph, T Zoonotic Implications of Avian and Swine Influenza (Eds. Hendrick, S. & Krause, D.O.) Book chapter-9 in Zoonotic Pathogens in the Food Chain (CAB International, Oxfordshire, UK, 2011). pp Presentations: o Four (4) pathologists from Veterinary Diagnostic Services laboratory attended the 2011 Western Conference of Veterinary Diagnostic Pathologist (WCVDP) in Saskatoon. The topic was Pathology of the Alimentary system. Eleven (11) cases were submitted from VDS with eight cases being presented by laboratory staff at the conference. Case submissions included: Equine Proliferative Enteropathy - Mark Swendrowski, Marek Tomczyk Porcine Circovirus Associated Disease: Enteritis (Porcine Circovirus PCV2) - Rosemary Postey Porcine Edema Disease - Shelagh Copeland Segmental Ulcerative Colitis, Renomegaly, and Metabolic Bone Disease - Shelagh Copeland Oral Squamous Cell Carcinoma - Shelagh Copeland Parasitic nodular typhlitis - Steven Scott (Western College of Veterinary Medicine -WCVM), Frank Juck Coccidiosis in a Pig - Jamie Rothenburger (WCVM), Rosemary Postey Necrotizing Enteritis in a PMU three day old Belgian foal (Clostridium perfringens Type A) - Tom Hutchison Vitamin A Deficiency In Cornish Giant Chickens - Rosemary Postey Watery Diarrhea in Sows and Piglets (TGE) - Tom Hutchison Bovine Lymphosarcoma Enteric and Spinal - Marek Tomczyk Chronic Ostertagiasis in a Bison - Marek Tomczyk 65

92 Toxocara vitulorum - Shelagh Copeland The 2012 conference is in Calgary, Dr. Shelagh Copeland was voted in as President of WCVDP for Differential diagnosis considerations for Foreign Animal Disease (FAD) course for CFIA - Dr. Mark Swendrowski, Practical Cytopathology. Dr. Angelica Galezowski. Invited speaker at the American Veterinary Medical Association Annual Conference in San Diego CA (August 4, 2012). Dr. Angelica Galezowski taught two classes to senior residents and clinical pathology residents at the Western College of Veterinary Medicine (May 8-9, 2012). Projects: o Program to certify swine herds in Western Canada as negative for the Porcine Respiratory and Reproductive Syndrome virus. o Investigation of egg-drop and white chick syndrome in Manitoba with the office of the CVO since January, o Collaboration with CFIA laboratory in Lethbridge, AB for the development of user-friendly porcine respiratory disease microarray. Dr. Joseph is a co-investigator in this project. o Collaboration with the Department of Animal Sciences, University of Manitoba for the onfarm evaluation of a needle-free injection device (NFID) to vaccinate beef cattle under Manitoba conditions. Dr. Joseph is a member of the advisory committee of the M.Sc. student working on this project. o Dr. Joseph is a member of the advisory committee of a Ph.D student in the Department of Medical Immunology, Faculty of Medicine, University of Manitoba, working on the modulation of host immune response by the trypanolytic compound Berenil. Continuing Education: o Pathologists participated in the Veterinary Laboratory Quality Assurance program for histopathology for the second year and correctly identified all cases. o National Society for Histotechnology teleconference for 2011/12; professional and technical staff participated in six teleconferences. o Twenty-two (22) laboratory technologists completed 100 online continuing education, compliance, and document control sessions for clinical laboratories through MediaLab. o Workers compensation course: Dr. Neil Pople and Agnieszka Gigiel. o Dr. Neil Pople: audited a course in Clinical Microbiology at Cadham laboratory. o Dr. Rosemary Postey enrolled in a web based distance education Veterinary Forensic Certificate course provided by the University of Florida. o Aquatic course presented by CFIA attended by Dr. Copeland, Tomczyk and Postey. Additional Results: Continued educating sheep/goat producers as well as the consumers to discourage illegal onfarm slaughtering and the risks associated with this practice. Thirty six (36) sheep and goat producers and 201 beef producers established veterinary - client relationships through Growing Forward s Biosecurity Herd Consultation Program. Participated on the National Goat Biosecurity Advisory Group. Consultation with CVO staff and Western College of Veterinary Medicine regarding investigation of a parasite not previously found in Manitoba bison. Assisted the University of Manitoba in the selection of their new veterinary entomology professor. Worked with Manitoba Conservation and Water Stewardship in acquiring and using tranquilizers for polar bears. Advised the Clean Farms program on the possibility of collecting unused veterinary pharmaceuticals during the collection of unused pesticides. Developed and delivered 2011 Flood Programming. LKC staff were involved with the floodrelated activities as follows: 66

93 o o o o o o Active participation in Emergency Response Operations: This included staffing the Emergency Operations Centre at 545 University Crescent and Emergency Measures Organization (EMO) Emergency Response Center, contacting producers, compiling information on affected livestock and forage and developing response plans and programming Spring Blizzard Livestock Mortalities Assistance Program: Provided technical expertise in assessing the disaster and developing a provincial program to address the problem. Provided training to staff, assisted in delivery, appeals, audits and helped the program administrator as requested. AgriRecovery: Participated in the initial assessment of the assistance programs needed for the Manitoba flood of Based on the conclusions found from the assessment the following programs were developed: 1) Excess Moisture Assistance, 2) Greenfeed, 3) Forage Shortfall, 4) Transportation 5) Forage Restoration, and 6) Infrastructure and Individual Assistance. The LKC provided leadership and technical assistance to all programs. Many roles were performed by LKC staff: administration, development of terms and conditions, program delivery, inspections, staff training, technical review, verification, audits and appeals. Manitoba Infrastructure and Individual Assessment Program (MIIAP): Staff members were assigned to the delivery of the program. Developed inspection criteria. Conducted over 30 farm visits and maintained close contact with applicants throughout the evaluation process. Reviewed/verified all claims submitted by applicants. Participated in over 40 MIIAP meetings, prepared advisory notes and policy papers. Manitoba Forage Shortfall Assistance Program: Staff provided assistance with the delivery of the Forage Shortfall and Transportation programs from July 2011 to March Involved in program development, development of calculation spreadsheet, staff training and support, verification and audits. Lake Manitoba Financial Assistance Program (LMFAP) Parts A and B Provided leadership as program lead and technical lead for Parts A and B of Lake Manitoba Financial Assistance Program (LMFAP) and technical lead for Agricultural Property Damage Component of Part B. Developed worksheets, processes, eligibility interpretations for processing payments for Part B advance payments. Responsible for recommending authorization of payments for Flood Mitigation, Transportation, Lost Off-farm Income and Agricultural Property Damage components. Provided cost estimates and produced year end accrual for these components. Conducted and presented reviews of large files over set financial triggers. Provided leadership and developed administration of the debris cleanup, fence and corral damage and personal agriculture property damage component of Part B. Developed processes for verifying, calculating and authorizing the over 300 claims for fence damage and 200 claims for debris cleanup. Developed and administered the temporary wintering site assistance provided for 55 producers with evacuated livestock. Participated in weekly conference calls with MASC, GO team and other staff to co-ordinate flood activities. Supported GO teams staff working on LMFAP programs, including training webinars, staff instruction documents, worksheets and responding to staff questions. 67

94 Worked with First Nations and other clients to assist with emergency evacuation of livestock. At the request of Lake Manitoba First Nations, met with the Band Council to discuss the program and worked directly with clients with agriculture losses. 4 (a) Livestock Industry Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 4, , (2) Other Expenditures 1,523 1,771 (248) (3) Grant Assistance Total Sub-Appropriation 7, ,310 (113) 68

95 Appropriation 4(b) Chief Veterinary Office/Food Safety The guiding principles for the Office of the Chief Veterinary Office/Food Safety (CVO/FS) Knowledge Centre have been translated into five goals for action: 1. To protect the health of the public from diseases that can pass directly or indirectly from animals to people (Zoonotics). This would include diseases such as Avian Influenza (AI), H1N1 influenza, tularemia, enterotoxogenic E. coli and salmonella. 2. To protect the safety and security of the food supply from farm to fork, to safeguard the health of Manitobans and to justify confidence in Manitoba s food system at home and abroad. This will focus on the provincially regulated food industry to reduce the risk of food-borne illness, support trade and diversity and add value to Manitoba agricultural products. 3. To protect the health and welfare of animals for economic and intrinsic benefit. This goal will focus on protecting the economic interests of producers, protecting the supply of animal-based food, and protecting the welfare of animals. 4. To protect trade in agricultural products through health certification and assurance programs. This will promote agricultural trade and the economic viability of Manitoba producers. 5. To develop critical information management information technology tools and systems that provide the foundation for accomplishing goals one to four. Within each of these goals will be specific activities that can be grouped into the following major areas: A. Effective Early Warning Detection and Surveillance Systems Early warning detection and surveillance systems will become key components of animal health, animal welfare and food safety programs. B. Situation Analysis and Policy Development The Office of the CVO will develop expertise in investigation and response systems required to deal with animal disease, animal welfare or food safety concerns. Staff will take an active role in shaping provincial and national policy in animal health, veterinary public health, animal welfare, traceability and food safety through various forums such as the Traceability Task Team, the National Farmed Animal Health and Welfare Strategy (NFAHWS) and Council; the Canadian Animal Health Surveillance Network and a One World - One Health (OWOH), Collaboration Framework and a Western Canadian Meat Inspection Network. C. Timely Response Capacity The Office of the CVO works closely with other agencies such as the Canadian Food Inspection Agency (CFIA) and Manitoba Health to co-ordinate responses to threats such as avian and pandemic influenza of food-borne illness investigations. The Animal Emergency Committee has put Manitoba at the forefront of emergency preparedness in Canada. Our participation in other groups such as the bovine Tuberculosis (TB) Task Group for Riding Mountain National Park (RMNP) will continue. D. Prevention and Preparedness Programs are being developed in conjunction with other agencies, departments and producer groups to prevent and prepare for animal disease and food safety threats. Staff will be stressing the 69

96 importance of biosecurity to prevent outbreaks of disease, and will participate with CFIA in joint simulation exercises to prepare for outbreaks, should they occur. Within the food processing sector, staff will be promoting the adoption of Good Manufacturing Practices (GMPs) and food safety programs such as Hazard Analysis Critical Control Point (HACCP). In animal welfare, staff will be working with other groups such as the Winnipeg Humane Society (WHS) to provide extension materials regarding the welfare standards for raising or handling animals. E. Education, Co-ordination and Communication We continue to develop information and knowledge management tools for the CVO/Food Safety Knowledge Centre to enable staff to respond quickly to emergency situations. This includes rapid access to published literature, preparation of summary web-ready fact sheets, to include animal health, animal welfare and food safety. Development of computerized GIS and disease outbreak management tools will be a major activity. Major emphasis will be placed on developing systems and decision support tools such as the VetLab and Premises ID databases that are foundational to disease surveillance, analysis and response capacity. The knowledge centre will play a leading role nationally in developing and deploying these tools. Our outreach to food producers and processors will continue through the promotion of both on-farm and post-farm food safety programs. A major source of their funding comes from the federal/provincial/territorial Growing Forward (GF) Program. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Protect the health of the public from diseases that can pass directly or indirectly from animals to people (Zoonotics). Identify animal disease threats in a timely manner. Staff of the CVO have ongoing collaboration with the Veterinary Diagnostic Laboratory so that outbreaks may be identified and subsequently investigated if and when they occur. Potential disease outbreaks that were investigated include three investigations of Salmonella enteritidis in poultry, one investigation of chronic wasting disease in cervids, and one human outbreak of Cryptosporidium linked to livestock. There was also an investigation related to antimicrobial drug residue in milk from multiple dairy herds. Ongoing monitoring programs continue for diseases such as chronic wasting disease of cervids, and bovine spongiform encephalopathy of cattle. An outbreak of an emerging parasitic disease, Toxocara vitulorum, in a bison herd in Manitoba was identified and investigated. This initiated a provincial-wide survey of the bison industry to determine the significance of this finding and to inform and educate producers and veterinarians. Staff participate in a number of networks, including the Manitoba Zoonotic Disease Committee and the Joint Council of Chief Veterinary Officers and Chief Medical Officers of Health. These networks assist us with quickly identifying new issues and formulating plans for collaborative management. Participate in national surveillance networks; create a common dataset for collecting disease information across Canada. MAFRI participates in the Canadian Animal Health Surveillance Network which is a mechanism to collate surveillance data from across Canada. MAFRI staff were pivotal in creating a national standard for gathering information for animal health surveillance. 70

97 Develop new and innovative tools for analyzing surveillance information and predicting the outcome of disease control strategies. Staff of the CVO have developed a computerized decision support system for animal emergencies that can be used for managing any type of emergency including disease outbreaks and natural disasters. Staff of the CVO have collaborated with federal government agencies to develop surveillance systems for reportable diseases, such as bovine tuberculosis. Components of these systems include the development of an On-farm Risk Assessment tool and a Freedom of Disease Model that can be used to demonstrate success of the bovine tuberculosis control and surveillance programs. A Johne s Disease Surveillance and Control program was developed but requires further funding to become fully operational. Develop a strong network and working relationship with human health professionals nationally and provincially built on the principles of One World One Health (OWOH) that links human health, animal health and environmental health. Staff from the CVO/FS Knowledge Centre are active participants in national and provincial committees that bring together representatives from animal health and human health departments. A goal of these groups is to develop common datasets for disease surveillance and/or situational analysis. Use of the holistic One World One Health approach, linking animal health, human health and environmental health, is facilitated by our participation in these networks. These linkages include: o National Swine Disease Surveillance project o Salmonella enteritidis federal/provincial/territorial working group o National Farmed Animal Health and Welfare Council o Fore-Can Network for Foresighting in Agriculture o Council of Chief Veterinary Officers (CCVO) o Joint Council of Chief Veterinary Officers and Chief Medical Officers of Health o National Non-enteric Zoonotic Diseases Committee o Manitoba Zoonotic Diseases Committee o Manitoba Animal Emergency Committee o CCVO subcommittee for Antimicrobial Use and Resistance o Canadian Animal Health Surveillance Network o Surveillance/Epidemiology Advisory Committee o o Manitoba Salmonella enteritidis Task Group National Collaborating Centre for Infectious Diseases (NCCID) One Health Advisory Group Conduct joint investigations. Joint investigations with other agencies and departments were conducted for: o Cryptosporidium infections in animals and people (in conjunction with Manitoba Health). o Animal welfare/hoarding scenarios. (These involved mental and public health professionals as well as Office of the Fire Commissioner and the RCMP.) Promote the prudent use of antimicrobial drugs, to minimize the chance of contamination of food, and to minimize the transfer of drug-resistant bacteria between animals and people. Staff from the CVO/FS Knowledge Centre are active participants in national and provincial groups working on the issue of prudent use of antimicrobials. This includes participation in: o The CCVO subcommittee for Antimicrobial Use and Resistance; o Industry and Manitoba Veterinary Medical Association consultation and assistance with investigations pertaining to the possible misuse of these products. Objective 2: Protect the safety and security of the food supply, to safeguard the health of Manitobans and to justify confidence in Manitoba s food system at home and abroad. 71

98 Harmonize MAFRI food safety inspection systems with those of Manitoba Health through the use of a common inspection database (Hedgehog). There was extensive collaboration with Manitoba Health in 2011/12 regarding a harmonized food inspection system. This work is essential to meet the Office of Auditor General report recommendations. In conjunction with Manitoba Health, a number of joint policies and procedures were drafted and implemented. This collaboration continues as MAFRI develops new food safety regulations. To ensure a consistent food safety inspection system throughout the province, MAFRI and Manitoba Health use the same database (Hedgehog) to record inspection results. Conduct inspections on approximately 400 non-federally registered processing and distribution facilities in the province. Two hundred and sixty (260) food safety inspections in 220 facilities were conducted in 2011/12. Develop a food safety audit recognition program for food processors, through Growing Forward (GF) programming. The food safety audit recognition program is established; protocols and procedures were drafted and finalized. Staff conducted four food safety audits. Conduct other inspections and food safety investigations as needed, enforce elk game farm regulations, conduct turkey flock audits, conduct Farm Market Council investigations upon request. In 2011/12, 132 dairy farm inspections and three elk inspections were conducted. Update food safety legislation and regulations. A preliminary draft of the new regulations under the Food Safety Act is nearing completion. MAFRI continues to move this important legislation forward as it is essential for The Food Safety Act to be proclaimed prior to MAFRI assuming responsibility for meat inspection in provincial abattoirs from the CFIA by January 1, Administer Growing Forward programs to promote the uptake of food safety, traceability and biosecurity programs for food producers, processors and distributors. Both post-farm and on-farm GF programs continue to be very active and well received by industry. For example: o On-Farm Six hundred and sixty-seven (667) applications were approved in 2011/12. Two hundred and eighty-seven (287) producer projects (food safety, traceability, biosecurity) received $642 thousand. Eight hundred and twenty-six (826) producers received food safety, biosecurity and traceability training. Six hundred and thirty-three (633) on-farm biosecurity assessments were conducted by contracting private veterinarians. Eight (8) commodity specific industry steering committees guided GF programming decisions. o Post-farm $1.147 million was committed to food processors to implement food safety programs. Ninety-three (93) applications were approved in 2011/12. Eleven percent (11%) of total food processing facilities applied were approved for food safety or traceability funding. $649.2 thousand was provided to food processors and warehouses to assist industry with implementing food safety and traceability initiatives. Provided food safety training for 565 industry members, bringing the total to almost 2,000 participants who have received training under GF programming. Distributed nine issues of the food safety e-bulletin to 607 subscribers. 72

99 Developed a user-friendly Good Manufacturing Practices guidebook with templates to encourage and assist food processors to adopt preventative food safety programs. This tool has been applauded by food processors as a useful model to promote the uptake of food safety programs. Conduct surveys for food safety hazards. Continued to design and implement surveillance projects that contribute to the development of baseline data of food safety hazards. This information is also used to design risk-based inspection models. o A water surveillance project began in January To date, water samples have been analyzed from 54 food processing facilities. o Conducted a voluntary environmental monitoring surveillance program in select food processing plants. Tested for common foodborne pathogens in the environment as well as indicator organisms on food contact surfaces. Results were used to assess the effectiveness of 38 facility sanitation programs. o Analyzed non-compliance data from routine facility inspections and determined the most common infractions and potential hazards. This information will be used to target extension and education programs and to design food safety regulations. Support applied research aimed at solving practical problems in food safety delivery. Three (3) research projects were funded through post farm GF funds. Two (2) of the projects focused on food safety issues in particular commodities that negatively affected their ability to access domestic and foreign markets. o A traceability database was established by the Farmers Market Association of Manitoba to allow the rapid identification of vendors should a food safety incident ever arise. o Processing methods were investigated to determine if the microbiological load of a ready to eat grain could be reduced. o An environmental scan was completed to assess the relevant scientific literature, regulatory and safety information available on Listeria in ready to eat grains. Objective 3: Protect the health and welfare of animals for economic and intrinsic benefit. Use laboratory data from Veterinary Diagnostic Services (VDS) to monitor key animal diseases. Laboratory case data from VDS is routinely sent to the Canadian Animal Health Surveillance network (CAHSN). The information and the tools available on CAHSN have been used to extract information from VDS for Salmonella Enteritidis (SE) monitoring. The development of a tool set and extraction for monitoring of other diseases continues to progress. Build systems to collect surveillance information from veterinarians in the field. Although several projects have been explored to conduct clinic-based surveillance, funding models that would meet the goals of all partners could not be agreed upon. MAFRI is working closely with the Canadian Swine Health Board, which has developed the Canadian Swine Health Information Network (CSHIN). CSHIN includes both a communication network and a clinic based surveillance system that will allow data collection and analysis from swine practices. The first regional meeting is occurring on July 19, Use abattoir inspection information collected by CFIA to monitor animal health. A pilot project that analyzed nine months of data from provincial abattoirs identified condemnation reports as potentially significant indicators of food safety and animal health issues. A larger project is now underway reviewing five years of data from provincial abattoirs. The purpose of the project is to identify key condemnation trends and to assess the utility of the current data collection system to monitor animal health and food safety trends in food animals. The project is scheduled to be completed in September

100 Participate in surveillance programs for specific diseases, such as Salmonella enteritidis, avian influenza, bovine tuberculosis and chronic wasting disease. A joint surveillance project for Salmonella enteritidis (SE) infections in animals and people is currently under way with Manitoba Health. SE continues to be monitored routinely through laboratory submissions and the Manitoba Hatchery Supply Flock Program. MAFRI continues to participate in avian influenza (AI) surveillance. In 2012, 13 small farm flocks that had sudden death in one or more birds were tested for AI under the small flock monitoring program and were found to be negative. AI monitoring conducted in wild birds in conjunction with Manitoba Conservation and Water Stewardship monitored four cases of sudden deaths in wild birds in None were positive for AI. Manitoba continues to routinely collect samples for Chronic Wasting Disease (CWD) from farmed elk that either die on farm or are slaughtered locally. Manitoba also tested up to 300 wild cervids collected through a hunter sampling program operated by Manitoba Conservation and Water Stewardship in None tested positive. Manitoba supports the CFIA in conducting bovine TB surveillance. In 2011, two farms that reported health concerns after TB testing were evaluated by MAFRI. Neither farm was found to have health concerns that related to the TB testing program. Develop a close working relationship with CFIA for detection and response for federally reportable diseases. MAFRI has developed a close working relationship with regional CFIA staff. Over the last 12 months this relationship has allowed for extensive program development and rapid response to animal health diseases in the province (such as SE, bovine TB, and fowl cholera). Develop new self-assessment tools for producers to assist them with implementing biosecurity and disease control programs (i.e. for Johne s disease). Through the federal GF initiative, MAFRI has developed and promoted an on-farm assessment for biosecurity and disease control. Three hundred and forty-eight (348) Manitoba swine farms participated in a biosecurity and disease assessment program. Similarly, 32 dairy farms participated in a Johne s disease assessment, and 721 beef, bison, goat and sheep operations participated in a general on-farm biosecurity audit. Currently, the on-farm program is fully subscribed and is no longer accepting new applications. Develop streamlined administrative processes for animal welfare, including the creation of an independent appeal board. The independent appeal board is currently up and running. The animal welfare program inspected 453 cases during the 2011/12 fiscal year. Efforts taken to expand the network of Animal Protection Officers throughout Manitoba included multiple targeted APO training exercises. The program also increased collaboration with other agencies such as the Canadian Food Inspection Agency, Winnipeg Humane Society, municipal police forces, the RCMP and a multi-agency/department hoarding coalition. Objective 4: Protect trade in agricultural products through health certification and assurance programs. Work closely with CFIA to support disease certification programs needed for export. CFIA announced the withdrawal of federal funding for the investigation and sample collection related to four important diseases of Western Canada, (Anaplasmosis of cattle; Anthrax in cattle, horses, bison and small ruminants; Chronic Wasting disease of deer; and Rabies). Implementation is proposed for January 1, Faced with these new responsibilities, MAFRI staff will be working closely with industry and Manitoba Health to design and implement programs for these four diseases. 74

101 In conjunction with CFIA, MAFRI has initiated an anaplasmosis certification program through GF. To date, no beef producers in Manitoba have utilized this program. Develop and implement a Foreign Animal Disease Eradication Support (FADES) plan in collaboration with CFIA. The CVO continues to support the FADES plan and is working on several inter-governmental and industrial initiatives to deal with the problem of animal surplus to market in the event of a border closure. Growing Forward funding has been directed to an ongoing research program, with Bioengineering, at the University of Manitoba, in the testing of various gas mixtures for the mass euthanasia of weaned pigs. In the event of a border closure, Manitoba would be faced with a surplus of up to 88,000 weanlings per week. CFIA continues to review and modify specific disease response plans. In particular, zoning and vaccination have been included as strategies to respond to Foot and Mouth Disease. CFIA and MAFRI are part of the Avian Influenza emergency response plan. This plan is currently under review. Offer turkey producers a health certification program that enables them to export birds to the State of Minnesota. The provincial program for certification of turkeys for export to the United States (US) enables Manitoba producers to export turkey hatching eggs and day old poults to the US. MAFRI provides an AI certification program for turkey flocks destined for slaughter in Minnesota. For 2012, 29 flocks are scheduled for export certification. Twelve (12) flocks have completed the testing and have been exported. Develop an on-farm biosecurity program for producers, especially those dealing with bovine tuberculosis or anaplasmosis threats. In particular, MAFRI developed an on-farm risk assessment for bovine TB in 2008 and a large portion of this assessment includes biosecurity related to wildlife contact. Over 50 farms have utilized the risk assessment, including farms that have implemented on-farm risk mitigation measures supported by MAFRI. The CFIA is including the risk assessment in its bovine TB management plan and will utilize the tool to assess risks to help guide its TB testing plan, both on individual farms and in high risk regions. MAFRI is further exploring additional validation and updating to the risk assessment tool through a research proposal from the University of Saskatchewan. Objective 5: Develop critical information management information technology tools and systems that provide the foundation for accomplishing goals one to four. Develop a premises identification database that locates premises where food animals are kept, sold or assembled. Participate in the development of a national agri-food traceability system. Promote the identification of premises in Manitoba. The premises identification database was launched in September The premises identification database was utilized for 23 animal health events during the 2011/12 fiscal year. Just under 5,000 premises have been identified, including 100% of the commercial dairy, swine and poultry farms. MAFRI is participating in the National Traceability Information Portal Project, which will allow the sharing of traceability information assisting in the development of a national agri-food traceability system. MAFRI participates in the Federal/Provincial/Territorial (FPT) Traceability Task Team and the Industry Government Advisory Committee on Traceability, as well as the working groups, developing a national agri-food traceability system. 75

102 Develop new information technology tools to support MAFRI s surveillance, disease investigation and outbreak response capacity. Create mapping systems that integrate the premises identification systems with surveillance systems. A core mapping framework has been developed that allows MAFRI to be prepared during an emergency to produce consistent, high quality maps. Premises Identification information is now integrated into the mapping system with the Decision- Support Software for Animal Emergencies tool that MAFRI created. Further develop the common food safety inspection database, in conjunction with Manitoba Health. Work has continued on further developing Hedgehog, the common food safety inspection database, in conjunction with Manitoba Health. Create decision support tools to assist with managing animal emergencies, such as disease outbreaks, or flooding. The Decision-Support Software for Animal Emergencies was developed and combines premises identification data with a core emergency dataset in order to make decisions during an emergency. This software is also the tool that is used to integrate the premises identification data into the mapping software. Additional Results: MAFRI continues to develop the concept of creating a One Health framework across multiple departments within Manitoba. Some initial steps have been to develop a joint surveillance approach for zoonotic diseases. 4 (b) Chief Veterinary Office/Food Safety Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 2, ,468 (167) (2) Other Expenditures 2,298 2, Total Sub-Appropriation 4, ,746 (147) 76

103 Appropriation 4(c) Crop Industry The key role of the Crops Knowledge Centre (KC) is to provide critical intelligence and recommendations on a range of issues pertaining to efficient production, processing and marketing of crops suited for production in Manitoba. The underlying principles for priority development include: enhancement of net farm income rural community development environmental sustainability The Crops KC plays a key leadership role in identifying and supporting provincial strategies that enhance development in three areas of agriculture and rural development: crops, apiculture and woodlot production. The Crops KC also collaborates with GO teams, other knowledge centres, and other agencies in developing initiatives that improve net income and the development of related industries in rural Manitoba. Leadership Agronomic Information - Develop and deliver pertinent information and recommendations on emerging and established crops to GO teams, producers, industry and other agencies such as Manitoba Agricultural Services Corporation (MASC). This includes a strong level of support to the Manitoba Crop Variety Evaluation Trial (MCVET) program. Timely Pest and Disease Reporting - Develop and provide timely information on diseases and pests of crops and bees to GO teams, producers and other agencies. Real-Time Crop Reporting Co-ordinate the production of weekly updates on crop/commodity conditions and incorporate appropriate weather-based indicators. Ag-Meteorology Program - Develop agro meteorological data management capabilities and interpretation to support crop production, crop protection, policy development and climate change adaptation. Diversification and Value Added Opportunities - Identify and develop diversification and value added opportunities in crops, apiculture and woodlot production. Organic Food Lead organic sector development in consultation with producer associations, other governments and agencies. Identify and develop opportunities related to organic food production and marketing. Agro-Woodlot Develop and provide information to Manitoba producers on woodlot management, including economic and environmental benefits. Regulatory and Policy Responsibilities Administration of Legislation: The Noxious Weeds Act, The Pesticides and Fertilizers Control Act, The Plant Pests and Diseases Act, The Bee Act, The Fruit and Vegetable Sales Act, and The Organic Agricultural Products Act. Pesticide Use and Training Develop and implement programs and policies related to agricultural pesticide use (including minor use registration), training and licensing. Training is delivered through a Memorandum of Understanding with Assiniboine Community College. Nutrient Management - Participate with other knowledge centres and government departments in the development of policies and extension initiatives. Flood / Drought / Frost Work with GO teams, MASC and other knowledge centres to assess crop losses associated with flood/drought conditions and make recommendations related to potential compensation programs. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. 77

104 Objective 1: Support innovation to drive higher profitability for the agriculture sector. Provide recommendations to producers and agri-businesses relating to field, forage, horticulture, medicinal and industrial crops, pasture and range management systems, weed, insect and disease control and soil fertility. In the fiscal year 2011/12, the 19 specialists in the Crops KC provided more than 5,300 recommendations (average 280) to producers and agribusiness in 22 distinct specializations. This represents a substantial commitment to the support of sound agronomy in crop-related issues in Manitoba. Publication of 4,500 copies of the annual Guide to Field Crop Protection. Published 4,300 copies of the annual Guide to Field Crop Protection. Work with the MB Seed Growers Association, Manitoba Crop Variety Evaluation Team (MCVET) to develop, co-author and distribute 25,000 copies of Seed Manitoba. Twenty-five thousand (25,000) copies of Seed Manitoba produced and distributed through the MCVET program. New and updated factsheets and guides providing recommendations on crop production to growers and crop advisors. Ten (10) factsheets were updated. One (1) guide was updated (Guide to Field Crop Protection). Worked with the Vegetable Growers Association of Manitoba and the University of Manitoba to develop an online version of the Guide to Vegetable Crop Protection. Field Crop Diagnostic School providing field scouting training to 400 agronomists and farmers. Field Crop Diagnostic School providing field scouting training to 442 agronomists and farmers. Organize and conduct potato field days and agronomy meetings attended by 110 agronomists and potato producers. Participated in Brandon Potato field days. Conducted one field day in Winkler attended by 35 producers/consultants. Staff were involved in program delivery for Hoop, Diversion, MIIAP, and Lake Manitoba Programs. Deliver 170 technical presentations at, and actively participate in the organization of, industry workshops: Manitoba Agronomists Conference, Ag Days, Potato Days, Special Crops Symposium, Manitoba Grazing School, Direct Farm Marketing Conference, commodity group workshops, etc. Delivered 125 technical presentations at, and actively participated in the organization of, industry workshops: Manitoba Agronomists Conference, Ag Days, Potato Days, Special Crops Symposium, Manitoba Grazing School, Direct Farm Marketing Conference, commodity group workshops, etc. Objective 2: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Diagnosis of on average 1,000 crop samples for plant diseases, herbicide injury and insect damage and identification of weeds and insects. Diagnosis of 959 crop samples for plant diseases, herbicide injury and insect damage and identification of weeds and insects. As part of the Western Canada Canola Disease Survey co-ordinated by Agriculture and Agri- 78

105 Food Canada out of Brandon, MAFRI staff (CKC and GO) surveyed 77 fields for root, foliar and pod diseases. From the surveyed fields, MAFRI sent 46 soil samples to be tested for clubroot. Two (2) fields came back positive for clubroot DNA but were unable to cause infection. In co-operation with Communications, CKC put out a news release on the detection alone with management practices to reduce the likelihood of getting clubroot on individual fields. Inspection of 3,500 honey bee colonies and diagnosis on 350 samples for diseases. Inspection of 85 leaf cutting bee operations and diagnosis on 100 samples for diseases. Inspection of 4,500 honey bee colonies and diagnosis on 350 samples for diseases. More honey bee operations were inspected and samples diagnosed because there was a higher incidence of nosema disease in some parts of the province which increased concern and sample submission. Inspection of 75 leaf cutting bee operations and diagnosis on 100 samples for diseases. Fewer leafcutting bee operations were inspected and samples were diagnosed due to fewer producers in the industry. Additional Results: Worked in MAFRI s Emergency Response Centre to provide situational analysis, intelligence and develop terms and condition for Flood 2011 and AgriRecovery programming. Assisted in rollout of programming through webinars, presentations, application development etc. Worked to resolve land restoration and crop production claims within the Controlled Breach, Diversion, and Lake Manitoba areas. Worked with Emergency Measures Organization and Crown Lands Property Agency as a technical resource on agricultural claims for 2011 flood. Developed and administered the Manitoba Infrastructure and Individual Assessment Program (MIIAP) which covers lost infrastructure in both horticultural (greater than $10,000 in gross sales) and livestock operations (those with gross sales over $2 million, as smaller operations were covered by Disaster Financial Assistance programming). Thirty-three (33) horticulture operations (vegetable, fruit, potato and landscape) were eligible and accepted into MIIAP. Eleven (11) livestock operations were eligible and accepted into MIIAP. In 2011/12, $184.2 thousand was paid out as advance payment to 14 horticultural operations. Work with water licensing bodies and producers to repair/restore irrigation pump sites damaged from the flood. Made recommendations to 15 producers for repairs to pump sites. Objective 3: Support applied research and innovation to increase returns and opportunities for the value added sector. Complete 35 technical reviews of proposals to the Agri-Food Research and Development Initiative (ARDI), Agricultural Sustainability Initiative (ASI), Manitoba Rural Adaptation Council (MRAC) and the Sustainable Development Innovations Fund. Completed six (6) technical reviews for ARDI. Completed 15 MRAC technical reviews. Delivered an ASI project for the Manitoba potato weather network. Worked with Manitoba Agri-Health Research Network (MAHRN) on six projects within the Manitoba Functional Food Opportunities Program (MFFOP2) o Carrots Inc o Edible Bean Inc o Soy Inc o Buckwheat 79

106 o o Saskatoons Inc Sunflower Inc Objective 4: Grow Manitoba s food industry. Expand horticulture crop industry through expanded domestic consumption of local horticulture crops. Worked with Manitoba Hydro to assist in Otterburne. The 100,000 square foot greenhouse is producing two million cucumbers/year and selling them to grocery stores operated by Federated Co-ops. After yields were taken from the multicoloured vegetable trial (tomatoes and potatoes) from the trial at the Canada/Manitoba Crop Diversification Centre (CMCDC) site in Portage, produce was delivered to the Assiniboine Community College Culinary School in Brandon to expose the next generation of chefs to niche high value, local product. Commercialization of two value added projects adding to the Manitoba economy. Worked with YES Winnipeg on preliminary stages of a potential starch industry. Worked with regional GO team staff to re-establish Flax processing plant after it was destroyed by fire. Worked with Manitoba Grass Fed Beef Association to test market flavoured sausages, hamburger patties, pate and meat pies. Maintenance of supply of high quality product to the three frozen potato processing facilities and one chipping potato processing facility. The flood of 2011 reduced potato yields below the previous five year average which led to a shortage of potatoes. Objective 5: Establish a robust bioproducts sector in Manitoba. Continue to promote and assist on-farm, regional and provincial biodiesel crushing facilities as they develop. No activities due to the majority of canola grading well. Feedstock for biodiesel is canola that does not meet food standards (Canada #1 or #2) due to green seed, frost or spoilage. Objective 6: Increase the capacity of rural and northern communities to drive local economic development. Contribute to increasing the numbers of northern gardens established in isolated communities to promote healthy eating and drive social change. MAFRI CKC personnel worked with Northern Healthy Foods Initiatives (NHFI) to establish 169 gardens in 2011 and maintain 641 existing gardens representing over 80 communities for a total of 810 gardens. The youth training focus has contributed to developing life skills in young adults making them attractive to employers in their communities. Increase organic production of flax, wheat, oats, spelt and horticultural crops through new transitioned producers and more acres of established organic farmers. Work was deferred as staff reassigned to assist with 2011 Flood Program inspection duties. Objective 7: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. 80

107 Complete 50 woodlot management plans, 25 harvesting and salvage projects (including 53 acres of logging Best Management Practices (BMP s), establish two permanent National Forest Inventory (NFI) sample plots, and deliver eight micro-forestry skills training workshops. The Manitoba Agro Woodlot Program completed: - Thirty-two (32) woodlot management plans; - Thirty-three (33) harvesting and salvage projects; - Seven (7) micro forestry training workshops. Reason for variance staff was re-assigned to flood and weather related work. No NFI permanent sample plots were established. The known 2011/12 economic value of wood products in Manitoba totalled $816 thousand. Objective 8: Enhance the environmental stewardship of primary agriculture production. Deliver a licensing program and, together with Assiniboine Community College, deliver training for pesticide dealers and applicators and manure applicators. Licences were issued to 1,253 pesticide applicators, 437 pesticide dealers and 96 manure applicators. The number of dealers appears to be trending downward, due to consolidation within the agricultural supplies sector. Co-ordinate the Crop Residue Burning Authorization Program to control smoke from crop residue burning, develop and extend technology related to straw management alternatives and promote alternative straw utilization opportunities. The Crop Residue Burning Authorization Program issued only 172 permits in 2011, substantially fewer than in the previous year when >1,000 permits had to be issued. The reasons for variance include: o The very wet spring prevented the seeding of some of the crops (flax and oats) that are more likely to require burning as a management tool in the fall. In 2012, these crops have seen resurgence in acres sown. o The very dry late summer and fall allowed alternative straw management techniques to be employed prior to significant snowfall. Since 2009, the permitting requirement has focused on the rural municipalities surrounding the City of Winnipeg. The Program does, however, provide valuable extension to producers on minimizing the environmental and safety impacts of crop residue burning. Additional Results: The Manitoba Agro Woodlot Program partnered with the Pembina Valley Conservation District (PVCD) in a Call Before You Clear extension initiative aimed at helping RM of Thompson landowners make informed land use decisions on steep slopes and informing landowners of the value of some of the standing trees as raw materials for local value added products. Objective 9: Develop climate change adaptation strategies. Provide weather and climate information to monitor, assess and project crop variety adaptation, crop diseases, weed and insect problems, crop yields and quality as well as other factors. Information to potato producers on late blight disease severity and crop water demand was provided daily using information from the Manitoba weather network. 81

108 4 (c) Crop Industry Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 2, , (2) Other Expenditures (87) Total Sub-Appropriation 3, ,

109 Appropriation 4(d) Agri-Food Innovation and Adaptation. The Agri-Food Innovation and Adaptation (AFIA) Knowledge Centre is responsible for departmental interaction with public (e.g. universities) and private research providers, research funding agencies and entities that encourage agri-food innovation. Activities cover the entire innovation continuum and the spectrum of science from basic to applied. AFIA assists in expanding the capacity for agri-food innovation in Manitoba and in developing policies and programs that encourage the development and application of agricultural science to improve the quality of life for Manitobans. AFIA performs applied research in co-operation with GO teams and producer members of applied research centres at Melita, Arborg, Roblin, and the Canada-Manitoba Crop Diversification Centre. The centres work with area residents to examine new agricultural production techniques and to support the development of value added agri-businesses. The AFIA Knowledge Centre delivers programs that assist the agri-food and rural sectors in capturing opportunities in the renewable energy sector and to incorporate alternative energy technologies in farm and ranch enterprises. AFIA manages the department s investment in functional food development that is building the scientific and economic link between food and human health. Activities are focused on the following cluster of organizations: Richardson Centre for Functional Foods and Nutraceuticals, Food Development Centre, Canadian Centre for Agri-Food Research in Medicine and various departments of the University of Manitoba. AFIA leads the development of a green economy through research, innovation and policies that encourage the creation of new products and processes from primary products and by-products of agriculture. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Support innovation to drive higher profitability for the agriculture sector. Knowledge of alternative production systems expressed in MAFRI extension programs. Growing Forward (GF) provided $312 thousand to University of Manitoba (U of M) Biological Cropping Systems, Diversification Centres and Manitoba Zero Tillage Research Association to develop and summarize data and develop extension material on polyculture, strip tillage, integrated crop and livestock production systems. Knowledge of the economics of crop production options expressed at field days and in MAFRI extension programs. Farm Diversification Centres assessed the economics of incorporating hemp, calendula, camelina, linen flax, hulless oat, haskap and sour cherry, fababeans, seabuckthorn, niger seed, soybean and presented results at five field days. Products for local and export markets. Examples include fuel pellets, biofuels, health foods and green consumer products. Technical assistance was provided to proponents of next generation biofuels as well as developers and consumers of biomass energy products. Prairie Agricultural Machinery Institute (PAMI) continued to refine an in-field crop residue densifier. 83

110 Agri-Food Research and Development Initiative (ARDI) awarded $217.1 thousand to six projects to develop the preventative and therapeutic health properties of Manitoba farm products. Manitoba Agri-Health Research Network (MAHRN) developed products and mentored functional food entrepreneurs in beans, buckwheat, sunflower, soy, saskatoons and carrots. GF provided $121 thousand to the University of Manitoba to operate the Manitoba Consumer Monitor Food Panel (MCMFP) project. Forty-three thousand dollars was provided for the development of performance benchmarking of agricultural fibres suitable to the production of natural fibre mats for composites manufacture. Use of healthy foods was promoted through AFIA mediated collaborations with the Culinary Arts Programs at Red River College, Manitoba Institute of Culinary Arts at Assiniboine Community College and the Canadian Culinary Federation. Through the Canadian Climate Advantage Diet (CCAD) initiative, Manitoba food producers and processors had the opportunity to promote their products with a unique point of differentiation that optimizes their natural advantage. New primary agricultural products with increased value. The Farm Diversification Centres conducted fibre and sustainability evaluations for a number of new and traditional varieties such as industrial hemp, kenaf and flax. New crops like calendula and camelina were also evaluated for potential oil production. General variety and agronomic evaluations were conducted for a number of crops such as, peas, canola and ancient grains. Progress toward establishment of the Canadian Cereal Research and Innovation Laboratory. Financial models have been developed and scientific partnerships were initiated. Objective 2: Increase income that producers receive from the marketplace. Improved yield and pest resistance in the primary crops grown in Manitoba. Farm Diversification Centres evaluated yield and pest response of pre-commercial new commercially available varieties of cereal, oilseed, pulse and forage crops across 12 sites in Manitoba. The centres also evaluated inter-cropping cereals and legumes. ARDI awarded $781.8 thousand to 11 projects in the crops sector to improve yield and pest resistance. ARDI awarded $423.3 thousand to nine projects to improve productivity in the beef, dairy, pork and poultry sectors. Options to increase gross value of primary farm products. MAHRN received $281.3 thousand GF funds towards testing and assessing plant and animalbased bioactive compounds focusing on adding value to the farm gate as well as promoting health and wellness. GF provided $57 thousand towards six small enterprises to commercialize new products that utilize Manitoba grown and processed commodities. ARDI awarded $144.1 thousand for four projects moving potato starch, cereal grain components, saskatoon berry and carrot powders, and buckwheat fractions into functional food ingredients and nutraceuticals with demonstrated health promotion attributes for animals and humans. ARDI awarded $100 thousand to support two projects examining production management systems with a focus of increased value at the farm gate for beef and hog producers. GF provided $126.1 thousand to conduct a pilot project through the National Centre for Livestock and the Environment (NCLE) to utilize the GrowSafe system in Manitoba to benefit beef production through identification of energy efficient beef cattle. Additional data from the Agriculture and Agri-Food Canada-Brandon (AAFC) Beef Systems Project was used to develop technical bulletins and factsheets on the production, reproductive and economic performance of cattle. The information compared summer pasture and winter 84

111 feeding strategies for cow-calf production. The data from the AAFC Beef Systems Project will also be used to predict the efficiency of fossil fuel energy use. In addition, technical bulletins on the predictions of enteric methane emissions from different summer pasture and winter feeding strategies for cow-calf production were developed and extended. New primary agricultural products with increased value. The Farm Diversification Centres conducted fibre and sustainability evaluations for a number of new and traditional varieties such as industrial hemp and linen flax. New crops like calendula and camelina were also evaluated for potential oil production. General variety and agronomic evaluations were conducted for a number of crops such as dryland rice, peas, canola and ancient grains. Objective 3: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Alliances within the northern Great Plains (both states and provinces) to jointly encourage the development and adoption of innovations to assist adaptation to climate change. Opportunities for specific partnerships have not been identified at this time. Objective 4: Support applied research and innovation to increase returns and opportunities for the value added sector. Improved value added products and alignment of research capacity behind the continuous refinement of those products. An additional report was generated that showed the specific advantages of Manitoba s climate in producing crops with therapeutic attributes. MAHRN supported six small enterprises to commercialize new food products that utilize Manitoba grown commodities. Parkland Industrial Hemp Growers received $60 thousand from GF to advance the value added hemp industry. Twelve (12) ARDI projects are aimed directly at growth in the value added sector, seven projects will develop new farm income streams and 15 will investigate methods to reduce the costs of primary production. Objective 5: Increase sales of Manitoba produced food and agri-products to Manitobans and increase sales at Manitoba Farmers Markets. Progress toward recognition among health care providers, the food industry and policy makers of the CCAD. CCAD is a MAHRN-MAFRI project exploring the agronomic, policy and health care advantages that would support the development of a 'Canadian' diet focused on unique Canadian foods that would provide easier access to foods whose health attributes have been assessed and supported by sound science. Results show that buckwheat, oats, potato, hemp, canola, flax and dairy production have important attributes from a climate and diet perspective. GF provided $121 thousand to the U of M to continue the MCMFP project. The information will help public policy and program development by establishing linkages between food production, food processing and health. GF provided $84.8 thousand to the Richardson Centre for Functional Foods and Nutraceuticals to examine the impact of climate on productions systems and the environmental opportunities for a health and wellness advantage for Manitoba grown products. GF provided $573.5 thousand towards six small enterprises to commercialize products that have 85

112 demonstrated health benefits for consumers. AFIA is facilitating collaboration between Manitoba Healthy Living Seniors and Consumer Affairs, Manitoba Health, researchers, industry associations and other stakeholders from across Canada on the development of the CCAD. Objective 6: Grow Manitoba s food industry. New food products for domestic and export markets. GF provided $134 thousand to U of M, Faculty of Human Ecology, to operate the MCMFP project to generate, analyze and disseminate data about the ways Manitobans (4,000 urban and rural) use food and the perceptions they hold about food-related issues. ARDI supported the development of two businesses in rural Manitoba and provided $57 thousand to improve birch syrup processing and tea and soup products using saskatoons and carrots. AFIA facilitated linkages between Manitoba food companies and our functional food research cluster to access relevant research information and to initiate research projects on ingredients and products in order to enhance company sales. Objective 7: Establish a robust bioproducts sector in Manitoba. Advanced stages of development of biomass energy, agri-fibre products from hemp and flax fibre and consumer products from potato starch and other co-products. Staff continue to actively work with stakeholders to develop and broker bioproduct policies, projects and programs. Through GF, funds were provided to research centres and entrepreneurs to advance bioproduct and biotechnology development; $150 thousand to Life Sciences Association of Manitoba for advocating and serving Manitoba s ag-bio sector; $143.6 thousand for demonstrating production and use of biobased materials in construction; $60 thousand to a growers co-op to continue the development of hemp varieties for bioproducts; $64 thousand to a farm for a waste-to-biogas demonstration; and $3 thousand to a farm to demonstrate a willow harvest technology for biomass energy production. ARDI provided $80 thousand for flax breeding for industrial and consumer products including bioproducts. The Composites Innovation Centre received $43 thousand to develop performance benchmarking for new fibre crops for composite applications. Progress toward policies such as green procurement in a manner that supports agri-food based bioproduct development. The department continues to provide technical support for bioproduct and biofuel producers currently in operation, as well as those looking at development opportunities in Manitoba. The department continued to contribute to the development of regulations to reduce coal use including on farms. Outcomes from the first phase of Bioproducts Strategy. Support was provided to companies and individuals looking to develop bioproducts and business opportunities in Manitoba. GF provided $143.6 thousand to the Composites Innovation Centre s Green Garage to develop and demonstrate the viability of composite building materials. Thirteen (13) biomass consumers and producers received $400 thousand under the Manitoba Biomass Energy Support Program to support their conversion from coal to biomass fuel. Objective 8: Support applied research and innovation in rural economic development. 86

113 A range of projects with rural development outcomes (e.g. enhanced employment) conducted by research and innovation service providers. GF contributed $2.48 million to 19 projects supporting innovation leading to economic growth in rural Manitoba. ARDI awarded $610 thousand to 13 projects with direct impact on the value added sector in rural Manitoba. New innovative approaches to rural development. Providers of science that improve crop and livestock production are being made aware that their work will be assessed using rural development indicators. Science programs are being constructed to pursue rural development goals. Objective 9: Increase the capacity of rural and northern communities to drive local economic development. Alignment of research institutions behind greenhouse development in the north and participation of research institutions in specific projects with rural economic development outcomes. Two (2) individuals earned greenhouse management certificates from Assiniboine Community College. These are the first graduates of the new GF supported program. Expansion of crop diversification facilities at Melita and Arborg. Investments made in 2011 levered additional reports that completed the progress. Objective 10: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Improved value added products and alignment of research capacity behind the continuous refinement of these products. The CCAD benchmarking study identified opportunities for Manitoba food producers, processors and research institutions to align their resources to produce scientifically-supported high quality foods. MAHRN supported six small enterprises to commercialize new food products that utilize Manitoba grown commodities. Parkland Industrial Hemp Growers received $60 thousand from GF to advance the value added hemp industry. ARDI awarded $40 thousand to a small Manitoba company to improve birch syrup processing. ARDI contributed $50.5 thousand to a rural Manitoba company for the investigation of health attributes of the potato starch product they produce. Advanced stages of development of biomass energy, agri-fibre products from hemp and flax fibre and consumer products from potato starch and other co-products. Manitoba provided $29.3 thousand under GF to conduct an on-farm energy audit to identify areas where energy could be produced or better utilized on the farm. Keystone Agricultural Producers collaborated on the project. Funding was provided to the U of M to conduct feedstock trials for anaerobic digestion optimization. Thirteen (13) biomass consumers and producers received $400 thousand under the Manitoba Biomass Energy Support Program to support their conversion from coal to biomass fuel. In addition, a number of greenhouses have switched from fossil fuels to biomass. Biomass production capacity is increasing in response to programs and policies (e.g. emissions tax on coal) to support biomass energy. GF provided $90 thousand toward cost-efficient biomass conversion technologies such as a mobile densification system. 87

114 AFIA specialists continue to provide technical assistance to biofuel producers looking to increase production efficiency and market access. This also includes support for the development of next generation biofuels from non-food feedstocks. Partnerships have been developed with French and Chinese companies to facilitate investment in high value flax fibre processing. Objective 11: Enhance the environmental stewardship of primary agriculture production. Projects and outcomes from the Manitoba Livestock Manure Management Initiative (MLMMI), pest resistant crops, low input systems, commercial fertilizer substitutes and other studies in sustainable agriculture. ARDI awarded $243.5 thousand to support four projects that develop alternative sustainable methods of soil nutrient management and improve economic and environmental sustainability for crop and beef production. The MLMMI utilized $366 thousand from GF funds to instigate eight projects on a range of sustainable manure management topics from manure treatment to water recycling and whole farm nutrient balance. In addition, MLMMI is responsible for extending these results to the Manitoba industry and beyond. Objective 12: Develop climate change adaptation strategies. Alliances within the northern Great Plains (both states and provinces) to jointly encourage the development and adoption of innovations to assist adaptation to climate change. Opportunities for specific partnerships have not been identified at this time. Objective 13: Develop climate change mitigation strategies. Progress toward low emission technologies and processes. PAMI was commissioned to install and monitor a variety of micro turbines at selected sites in agro-manitoba, such as the Roblin Diversification Centre. These will serve as demonstration sites for producer extension tours. GF provided $253 thousand for four farm-size turbines. Support for biomass densification trials using dedicated energy crops such as miscanthus, willow and switchgrass. Fuel additive testing was conducted using a bio-additive to improve fuel economy and reduce emissions. Objective 14: Enhance the safety of the food supply in Manitoba. Projects and results leading to improved food safety through innovation. ARDI awarded $167.1 thousand to four projects that will reduce mycotoxin contamination arising from fusarium-infected grain. ARDI provided $90 thousand toward an investigation aimed at enhancing the health and welfare of cattle and safety of cattle products by reducing leakage from the digestive tract. GF provided $214 thousand to U of M to investigate methods of preventing pathogenic bacterial infection of broiler chicks. Objective 15: Promote linkages between food production, food processing and the health of Manitobans. 88

115 Projects and results assessing the effect of food and food bioactives on disease. ARDI awarded $144.1 thousand for four projects moving potato starch, cereal grain components, saskatoon berry and carrot powders, and buckwheat fractions from raw products to functional food ingredients and nutraceuticals with health promotion attributes for animals and humans. Interest and investment in R&D and product development from local, national and international partners and the establishment of a centre of expertise in cereal bioactives. Interest in ARDI funding continues to be very strong, two application intake dates were offered in 2011/12 and 57 applications were received requesting $4.4 million in ARDI funding. Thirty-four (34) projects received an ARDI contribution of $1.7 million and have leveraged an additional $2.4 million from industry and other partners. ARDI partners in 2011/12 included Manitoba farmers ($1.35 million), Manitoba businesses ($334.2 thousand), national and international businesses with operations in Manitoba ($273.2 thousand) and other governments and non-government organizations providing scholarships to students studying at Manitoba institutions ($458.5 thousand). MAHRN received $281.3 thousand GF funds toward testing plant and animal-based bioactive compounds focusing on adding value to the farm gate as well as promoting health and wellness. MAHRN promoted the local functional food cluster among senior officials from Utah, Minnesota, North Dakota and Saskatchewan and brokered projects with organizations and companies in Netherlands, Finland, Chile and the US including the US Grains for Health Foundation. GF provided $121 thousand to the U of M to operate the MCMFP project. The information assists in the development of public policy and programs by establishing linkages between food production, food processing and health. GF provided $84.8 thousand to the Richardson Centre for Functional Foods and Nutraceuticals to examine the impact of climate on production systems and the environmental opportunities for health and wellness advantage for Manitoba grown products. GF provided $573.5 thousand toward six small enterprises to commercialize products that leverage existing research and have a scientifically backed health benefit for consumers. Partnerships with major companies in the life sciences and health sectors have been established to commercialize specific products arising from GF funded research. 4 (d) Agri-Food Innovation and Adaptation Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 1, ,382 (66) (2) Other Expenditures (73) (3) Grant Assistance 1,465 1,465 - Total Sub-Appropriation 3, ,575 (139) 89

116 Appropriation 4(e) Agricultural Sustainability Initiative The Agricultural Sustainability Initiative (ASI), a provincially funded Growing Forward Program, is delivered through Manitoba Agriculture, Food and Rural Initiatives. The program provides funding to Manitoba producer groups and provincial commodity organizations to conduct demonstrations or technology transfer projects on environmentally sustainable agriculture practices throughout the province. The goal is to improve the health of agricultural ecosystems in Manitoba by encouraging adoption of these sustainable agriculture practices. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Enhance the environmental stewardship of primary agriculture production. Approved over 40 projects by 30 local organizations and MAFRI staff. Thirty-nine (39) projects from 33 proponents were approved for funding totalling $971.2 thousand. Change practices and attitudes of Manitoba s farmers regarding environmental issues and concerns. Accelerate adoption of sustainable agriculture practices across Manitoba. Reduce agricultural impact on the environment. All ASI projects focus on extension or demonstration of sustainable agriculture practices. Adoption of practices is unknown however a survey sent to producer groups in 2011/12 indicated that producers are interested in adopting practices if economically feasible. Several extension events on sustainable agriculture topics were supported by ASI in 2011/12: o Eight (8) provincial events were held with just over 2,400 participants attending. o Five (5) field tours were held with 150 participants. o Three (3) workshops were held with 130 participants. o Six (6) meetings were held with 480 attendees. Five (5) articles were written on agricultural sustainability issues and submitted to Farming for Tomorrow magazine which is circulated to 22,000 farm mailboxes in Manitoba. Fourteen (14) proponents conducted field based projects, including: o Two (2) demonstration/investigation projects on polyculture cropping systems. o One (1) survey on feeding strategies in the beef industry (prairie-wide). o One (1) production guide update on sunflower production. o One (1) weather network funded which provided over 70 updates on insect/disease for potatoes. o The second year of a study using new technology (unmanned aerial vehicle) to determine appropriate fungicide application rates in annual cropping systems. o A study on re-cropping after grass seed production to determine optimal nutrient application. o A trial using different fertilizer sources, timing, and technologies on irrigated potatoes to determine Best Management Practices (BMPs) to reduce greenhouse gasses. o Feasibility study of a disease model for use in Manitoba. o The new Tobacco Creek Model Watershed Consortium will conduct cumulative effects monitoring in the watershed. o Four (4) Crop Diversification Centres located across the province conducted demonstration trials on a wide variety of cereal, pulse, and oilseed crops as well as new crop options for Manitoba. Continued emphasis on current agri-environmental issues including nutrient management in bale grazing. Ten (10) projects were approved under the ASI priority Water Quality Related to Agriculture. The 4 th year of the study of Nutrient Cycling in Grazing Systems was conducted with results 90

117 reported from sites across Manitoba on differing soil types. Bale grazing sites were sampled to determine nutrient load and optimal rotation of bale grazed sites. Maintained/enhanced quality of agricultural lands through projects such as invasive species monitoring and mapping which addressed ecological goods and services and biodiversity issues. Five (5) projects approved under EGS/Biodiversity/Invasive Species including projects such as: Leafy spurge response plan for Manitoba; Invasive Species Awareness for the Pembina Valley area; and support for the North American Weed Management Conference held in Winnipeg. Four (4) posters produced on invasive species and distributed to landowners. Additional funds attracted from other sources as partnerships are formed to carry out program activities. Overall cash and in-kind leveraged, including the producers share, for 2011/12 totalled $1.115 million. 4 (e) Agricultural Sustainability Initiative Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Other Expenditures 837-1,000 (163) 1 Total Sub-Appropriation 837-1,000 (163) 1. The under-expenditure is primarily due to lower expenditures for communication and staff time allocated to flood related activities. 91

118 Appropriation 4(f) Less: Recoverable from Rural Economic Development Initiatives (REDI) This sub-appropriation provides for the recovery of capital grant expenditures related to the Veterinary District Technical Enhancement Grant Program. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Protect human health from zoonotic diseases, animal health from serious diseases and the welfare of domestic animals. The 27 rural veterinary district animal clinics will continue to replace aging equipment and outdated technology to better serve their clients. Funding of $180 thousand was provided to 27 rural Veterinary Services District clinics through the Veterinary Technical Enhancement Grant Program to upgrade equipment in rural veterinary clinics. 4 (f) Less: Recoverable from Rural Economic Development Initiatives Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Recoveries (180) - (180) - Total Sub-Appropriation (180) - (180) - 92

119 Appropriation 5 Agri-Food and Rural Development The Agri-Food and Rural Development Division provides front-line delivery and supporting extension programs in partnership with stakeholders to enhance the viability of family farms; to provide value added and diversification opportunities; to strengthen the capacity of Manitoba s food processing industry; and to build vibrant rural and northern communities. Through the division s Growing Opportunities (GO) Teams Branch and knowledge centres, extension services and technical leadership is delivered by staff in farm production, farm and rural business management, community and economic development, entrepreneurship, Aboriginal agriculture, immigration, youth and leadership capacity development, urban and consumer awareness, northern foods, food processing, industrial development and food commercialization and marketing. The division provides leadership and resources to accelerate initiatives, that will create new employment opportunities and capital investment that anchors sustainable communities. Financial and professional support is also supplied to economically viable projects in partnership with communities, municipal governments, local and regional community development organizations, entrepreneurs, businesses, cooperatives, and youth organizations. The Agri-Food and Rural Development Division also works closely with many organizations, partners and institutions, such as the Rural Development Institute, the University of Manitoba, and the Canadian Centre for Agri-Food Research in Health and Medicine, to provide a platform of research and science that facilitates economic development and commercialization in Manitoba s agriculture and rural sectors. Appropriation 5(a) Growing Opportunities Centres GO teams work in co-operation with other departments to implement a single window delivery approach to client service. GO teams, with knowledge centres, are also moving to a horizontal team approach to provide integrated and specialized service to rural clients. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Support innovation to drive higher profitability for the agriculture sector. Staff will deliver 25 pasture grazing plans that will increase rancher s pasture utilization, and work with more than 20 producers adopting alternative winter feeding practices (e.g. bale grazing, swath grazing) that reduce cost of production. Staff delivered alternate winter feeding practices to 25 producers with information on reducing cost of production, and a more environmentally sustainable production at meetings in Franklin, Boissevain and Rossburn. The Provincial Grazing Tour was delivered to 49 producers in the Southwest and South Parkland GO team area demonstrating the following; development of replacement females, multi-species grazing and swath grazing. Staff will extend pasture and hay renovation information to producers in Westlake and Interlake areas of the province through one-on-one consultation. 93

120 Staff organized grazing meetings in Ethelbert, Gilbert Plains, Alonsa, Eddystone, Rorketon, Meadow Portage, Franklin, Boissevain and Rossburn to 221 livestock producers. Staff will deliver technical information on farm management tools, such as accounting, human resources, cost of production, succession planning and off-farm investing at 15 workshops. Staff consulted with 75 individual farm families regarding succession planning through the Growing Forward Agri-Advisor program. Staff will work with producers in making optimal use of AgriStability and other Business Risk Management programs through one-on-one consultation, to improve producer understanding of the programs. Staff provided one-on-one consultation to 75 producers on AgriStability, and advised 104 producers on Agri-Advisor applications. Staff will participate in one biomass/bio-energy event in the province. Staff partnered with the bioproducts working group, including the Prairie Agricultural Machinery Institute (PAMI) to deliver the 4 th annual Biomass Workshop and Tour in Brandon, Manitoba to 100 participants. Staff will deliver 25 technical talks throughout the province and during Beef Week to assist Manitoba livestock producers. Staff delivered Beef and Forage Days to 450 participants at five venues (Rosa, Eriksdale, Ste. Rose du Lac, Holland and Teulon). Staff delivered 28 technical talks to Manitoba beef producers across the province on the following topics: Alternate feeding systems, financial and risk management, renovation of forage fields and the principle of holistic management. Staff will present at the 2011 Western Canadian Holistic Management Conference, and will deliver ten workshops to grazing clubs to identify appropriate management practices, as well as organize four grazing demonstrations. Staff attended and presented at the conference. Staff delivered ten grazing plans to producers on how to utilize grazing, to reduce costs and utilize environmental Best Management Practices (BMP) on their operations. Staff attended all fall Manitoba Beef Producer district meetings. Staff delivered two farm plan workshops, and provided one-on-one consultation to 85 livestock producers. Staff will assist Agricultural Crown Lands (ACL) clients with 50 lease renewals and evaluate 150 properties. Staff provided assistance to Ag Crown lands clients with a total of 2,466 dispositions including: o Forage leases 1, renewals o Cropping leases 83 5 renewals o Special leases 2 o Casual grazing permits 22 o Casual hay permits 41 o Renewable grazing permits 48 o Renewable hay permits 290 Staff will conduct 75 canola disease field surveys. Staff conducted 38 canola disease surveys. Staff will partner with canola, oat, corn and other seed growers, and present at their annual meetings and five summer tours. Staff presented information at 14 summer tours across the province involving: canola, winter wheat, soybean, sunflower, oat and corn growers. Over 350 producers were in attendance. Five staff presented at the Crop Diagnostic School attended by 442 producers. 94

121 Objective 2: Increase income that producers receive from the marketplace. Staff will deliver grain marketing workshops to Manitoba producers. Staff delivered technical presentations at three industry crop production workshops and three grain marketing clubs to 310 participants. Staff partnered with the University of Manitoba (U of M) to deliver one technical risk management, cost of production (COP) and marketing planning presentation to 60 students at the U of M. Staff will revise and update legal resources for farmers and make them available on the internet. Farm business management resources are continually updated and available on the internet. Staff will disseminate cost of production and farm plan information to producers through workshops and one-on-one consultations. Staff will present technical information on beneficial risk management practices related directly to farm enterprises at 30 workshops. Staff delivered one farm management conference, two provincial marketing workshops, and partnered with industry on four additional workshops, to 350 participants. Staff worked one-onone with 185 producer clients regarding farm planning, commodity marketing, Agri-Advisor and farm mediations. Cost of production bulletins are updated annually. Staff will deliver one provincial young farmer workshop focused on succession planning. Staff partnered with Keystone Agricultural Producers (KAP) to deliver the 2012 Provincial Farm Management Conference Young and Beginning Farmers to 100 participants. Staff will provide support as the co-ordinating producer of the Great Tastes of Manitoba television show, resulting in 15 shows with an average audience of 30,000. Staff will produce and distribute 36,000 recipe booklets, and develop a consumer website. Staff provided organizational support resulting in over 30 shows reaching an estimated 1,083,000 adult viewers. Staff will work with producer organizations to develop a nutrition supplement for the Winnipeg Free Press with a readership of 233,700, with the objective of cultivating a connection between consumers and locally produced Manitoba foods. Staff in partnership with producer marketing agencies, produced a nutrition supplement for the Winnipeg Free Press. Its estimated circulation is 231,100 people. Staff will continue to develop messages, organize events and support other organizations, including Ag Societies, Women s Institutes, 4-H, Agriculture and Agri-Food Canada, Ag in the Classroom, foodmanitoba, Manitoba commodity groups, as well as others. Staff will increase the public s knowledge of agriculture through activities, including Ag Awareness Day, Ag in the City, Royal Winter Fair, Red River Ex, Red River Heritage Fair, and Manitoba Livestock Expo. Staff organized and developed Ag Awareness Day The Changing Face of Agriculture held at the Legislature March 20, Staff supported and organized displays at the Royal Manitoba Winter Fair, Discover Ag in the City and Red River Exhibition. Provide extension services on value chain development to staff and clients, through the Manitoba Agriculture, Food and Rural Initiatives (MAFRI) website and presentations. Staff will provide guidance to clients/staff in value chain development by utilizing the Improving your Profitability through Value Chain Management Handbook resource. Staff participated in 16 client consultations to extend the benefits of the value chain model. As well, staff attended the Canadian Value Chain Network Conference in Winnipeg. 95

122 Application of LEAN thinking (e.g. Kaizen) to multiple facets of ACL delivery, which will reduce client processing time by 15%, and achieve zero outstanding lease renewals. New ACL policies implemented to reduce advertising period to one listing per year. LEAN process evaluation is on-going, and has been applied to five ACL processes. Further process review and implementation to meet targets will occur in 2012/13. New policy has been implemented. Objective 3: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Staff will continue to lead in the front line delivery of the Agri-Excellence and Agri-Skills programming, through workshops and one-on-one advisory services. The goal is to have 150 Agri-Excellence clients and 75 Agri-Skills clients. Staff managed and supported 234 Agri-Excellence clients across Manitoba. Staff will work with producers using AgriStability and other business risk management programs through one-on-one consultations, to improve producer understanding of the programs and to maximize payouts to producers in crisis areas. Staff worked one-on-one with 185 producer clients regarding farm planning, commodity marketing, Agri-Advisor and farm mediation. Staff will deliver at least two provincial marketing workshops with a focus on risk management planning, which will result in improved understanding of marketing methods and increased financial stability for at least 75 grain producers. Staff delivered two regional grain marketing workshops in Brandon and Oak Bluff, focusing on transitioning to an open market system to over 200 participants. Insects (Diamond Back Moth, Bertha Army Worm, and grasshoppers) will be monitored. At least 70 trap locations will be monitored. Seventy (70) traps were deployed across the province. Flea beetle monitoring was also conducted in association with Agriculture and Agri Food Canada. Canola disease survey will be conducted with at least 50 fields being surveyed. Thirty eight (38) fields were surveyed by staff. Staff will partner with the Chief Veterinary Office to deliver verified beef programming. Staff supported 20 producers with livestock age verification. Objective 4: Increase the number of new entrants (farm and farm labour) into primary agriculture. Staff will continue to deliver more than 40 training events targeted at more than 450 eligible Bridging Generation Initiatives (BGI) clients. Staff delivered 25 workshops and training events to more than 450 BGI clients, as part of the Management Training Credit program. Staff will continue to work with the Manitoba Zero Tillage Research Association, to provide education and research on sustainable farming practices for producers. Four major tours and six workshops will be organized. Staff assisted the Manitoba Zero Tillage Research Association (MZTRA) with two crop tours, as well as through staff representation on the MZTRA board. 96

123 Staff will promote the Centennial Scholarship Program in partnership with the University of Manitoba, to increase the number of students choosing agriculture and food as a career choice by offering five scholarships. Staff promoted the program resulting in 27 applications and five scholarships awarded. Staff will deliver production and farm management extension events to three First Nations. Staff delivered production and farm management extension to Skownan, Lake Manitoba and Peguis First Nations. Objective 5: Provide and facilitate affordable loan products for primary agriculture. Staff will partner with Manitoba Agricultural Services Corporation to promote lending products. Staff will continue to provide consultation service to potential immigrant farm buyers. Staff provided one-on-one consultations regarding MASC lending programs, along with farm profitability analysis to 38 producers. Staff provided consultative support to 30 potential immigrant buyers. Objective 6: Support applied research and innovation to increase returns and opportunities for the value added sector. Staff will deliver three value chain workshops. Staff will participate in at least ten one-on-one client consultations extending the benefits of the value chain model. Staff participated in 16 client consultations to extend the benefits of the value chain model. Staff will deliver an on-farm agri-energy wind pilot project at four locations in rural Manitoba. The projects will monitor and evaluate the economic and environmental benefits of on-farm small scale wind projects. Staff partnered with PAMI to install two small farm scale wind turbines at crop diversification centres in Melita and Roblin. Staff will organize and deliver the Capturing Opportunities conference with the central theme of the event to be The Bio-Based Economy. Staff will support and organize the 6 th annual Manitoba Biomass workshop. Total attendance at all Capturing Opportunity events was 2,101 attendees. Over 100 participants attended the 4 th annual Manitoba Biomass workshop held in Brandon. Manitoba Crop Diversification Centres in Carberry, Portage, Melita, Roblin and South Interlake provide staff with the opportunity to support and extend research results to producers. There will be five major crop tours and ten smaller producer meetings. Staff supported crop tours at Crop Diversification Centres in Carberry, Portage, Melita, Roblin and South Interlake that attracted over 350 participants, with topics including: crop diseases, alternative crops, alternative energy and potato agronomy. Objective 7: Increase sales of Manitoba produced food and agri-products to Manitobans, and increase sales at Manitoba Farmers Markets. Staff will co-ordinate the 2011 Direct Farm Marketing Conference, partnering with the Prairie Fruit Growers Association and Farmers Markets Association of Manitoba. Staff will continue to promote farmers market vendors. Staff will provide one-on-one consultation to farmers market vendors. Conference held in Portage la Prairie with 130 direct marketers in attendance. Staff provided assistance to eight farmer s market boards, and 12 individual vendor one-on-one 97

124 consultations. Objective 8: Grow Manitoba s food industry. Staff will deliver ten targeted seminars/workshops on distribution, Hazard Analysis Critical Control Point (HACCP) in bakery and meat processing, selling skills and working at a trade show. Staff will target three events (e.g. Manitoba Food Processors Association annual general meeting (AGM), Direct Farm Marketing Conference, Great Manitoba Food Fight 2011), to increase promotion and commercialization of Manitoba food products. Staff will work with entrepreneurs to prepare for, and compete in the 2011 Great Manitoba Food Fight. Staff will deliver business support services to 75 new and/or existing food clients to enhance the commercialization of local food products. Staff delivered seven targeted workshops: five Selling Your Food Products at the Farm Gate 96 participants; one Food Retail or Food Service 36 participants; one Kickstart Your Food Product Idea 22 participants. Staff assisted 10 entrepreneurs to compete in the 2011 Great Manitoba Food Fight. Staff participated in the Manitoba Food Processor Association annual general meeting, Direct Farm Marketing conference, Great Manitoba Food Fight 2011 to increase the promotion and commercialization of Manitoba food products. Staff delivered business support services to 88 new/existing food clients. Objective 9: Establish a robust bioproducts sector in Manitoba. Staff will work with 12 individuals, as well as several community groups on agri-energy and biomass production opportunities. Staff worked with 13 individuals and community groups on agri-energy and biomass production opportunities. Staff will work with Prairie Agricultural Machinery Institute to test the commercial readiness and application of a mobile straw densification machine. Testing completed resulting in on-going efforts to commercialize the process. Staff will create public cost of production models for various agri-energy and biomass production systems. Staff will distribute monthly e-bulletins on biofuel/biomass business management. Staff will continue to monitor and report on the economics of various agri-energy and biomass sectors. Two (2) cost of production models for agri-energy and biomass production systems were posted on the MAFRI website. Six (6) monthly e-bulletins were developed and distributed to clients. Weekly economic reports for biodiesel and ethanol sectors continue to be produced. Staff will continue to work with the Parkland Industrial hemp growers regarding a hemp processing facility. Staff worked with the growers to investigate processing yield efficiencies, through utilization of newly available technology. Objective 10: Increase the capacity of rural and northern communities to drive local economic development. Staff will provide Community Economic Development (CED) training to Regional Economic Development Corporations, the Association of Manitoba Municipalities (AMM), and Manitoba Association of Agricultural Societies through attendance, participation, and inclusion in monthly meetings, AMM workshop series or association annual general meetings. Staff attended over 60 community CED meetings through the province. Meetings included presentations on Regional Economic Assessment Program, First Impression Community 98

125 Exchange, promotion of regional economic development initiatives, and a presentation to Community Development Corporations. Staff promoted the Excess Moisture Economic Stimulus program, which approved $2.5 million into 35 communities affected by severe moisture and flooding conditions. Staff will create awareness and use of the CED pathfinder, photovoice and regional economic analysis process resources, among economic development officers and regional development corporations. The CED pathfinder and associated resources were mailed out to all Manitoba municipalities, with presentations on the pathfinders given at the Association of Manitoba Municipalities (AMM) annual general meeting, as well as at regional AMM meetings. Staff will assist with the development of a community housing pathfinder. Community housing pathfinder has been developed and circulated to the Association of Manitoba Municipalities, as well as prospective housing development organizations. Staff in partnership with Volunteer Manitoba, will promote and deliver ten workshops based on the assessed need of rural communities and organizations. Staff delivered nine workshops across Manitoba topics included: encouraging community involvement, effective communications, roles and responsibilities of the board and community fundraising. Staff through ten 4-H area councils will continue to provide direction and support to the 4-H program. Staff provided direction and support to the 10 area 4-H councils. Area councils supported activities such as 4-H communications, camp and conference programs leadership development events. Staff will work with Manitoba 4-H Council and area councils to deliver relevant programming to more than 1,000 volunteer leaders, and almost 2,500 4-H members in Manitoba. Staff worked with the 10 area councils and provincial council to foster leadership and skill development of the 2,191 4-H members, and 954 volunteer leaders in H clubs. Staff will co-ordinate Junior Achievement programming, Young Entrepreneur and Aboriginal Young Entrepreneur programming in northern communities which will promote leadership and youth business skills. Staff delivered 17 Junior Achievement sessions promoting leadership and entrepreneurial skill to over 350 students. (The program was moved to Children and Youth Opportunities in January Staff will promote the Northern Healthy Foods Initiative (NHFI) and Northern Ag Program (NAP) with funding from Manitoba Aboriginal and Northern Affairs (ANA) (for NHFI) and the Canada/Manitoba Growing Forward Agreement (for NAP), Northern and Aboriginal Service Enhancement, as well as other services when they visit northern communities that are accessible by road. Staff provided information and applications for NAP and NHFI to 42 communities. Six NAP applications were approved. Community garden/education projects continue in northern communities (Moose Lake, Sherrifon, Berens River and Oxford House). MAFRI is partnering with ANA for a Northern Agriculture and Food Conference to be held in The Pas in October It is expected that more than 100 delegates from across northern Manitoba will attend to learn about food development and handling. The Northern Harvest Forum was held in The Pas in October with 42 communities represented by 82 participants. Presentations included examples of commercial food entrepreneurs in Alaska, food handling and preservation methods, greenhouse construction, as well as cold storage construction. 99

126 Objective 11: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Staff will provide extension resources/tools to 20 women in business networking events. Staff will deliver 10 rural workshops (low-cost marketing, social networking, Be Your Own Boss, etc.) targeting rural entrepreneurs. Staff organized and delivered 14 entrepreneurship workshops, ranging from marketing/social media strategies to proper business plan development. Staff organized and delivered the Dale Carnegie Leadership course via eight video conference sites throughout the province to 50 participants. Deliver four First Impression Community Exchange projects. Exchanges occurred between the communities of Rivers and Rossburn, RM of Pipestone and Binscarth, as well as Hamiota and McCreary. Reports for each exchange have been generated and presented to local councils for their use in local economic development activities. Staff will consult and advise on more than 160 business development projects. Staff will provide business succession tools to rural clients through 20 one-on-one consultations. Staff have consulted with, and provided advice to 161 business clients throughout rural Manitoba on various business development projects. Staff will provide support to producers trying to build a business plan to purchase three different short line railroads in the Gimli, Treherne and Reston areas. Staff provided business plan support to three potential short line railroads (Arcola, River Hills and Winnipeg Beach) and one existing short line railroad (Boundary Trails Railroad Company). Staff will organize and implement an Open Farm Day concept with 40 farms participating across the province. Staff will work with public and private partners to implement an Agritourism strategy, and other tourism opportunities in rural and northern Manitoba. Staff delivered the 2 nd annual Open Farm Day with 44 farms participating (an increase of eight host farms over 2010.) An estimated 4,200 visitors travelled to participating farms. Staff delivered two local food supper events in conjunction with Open Farm Day, Steinbach served 275 and Arborg served 200 people. Partners included Eastman Tourism, Keystone Agricultural Producers (KAP), Manitoba Regional Tourism Network, and Manitoba Rural Tourism Association. Staff organized and participated in three Agritourism Advisory Council meetings and one Agritourism tour. Staff delivered three Open Your Gates to Tourism workshops in Pine Falls, Dauphin and Cypress River. Through 17 video conference sites located in MAFRI offices, more than 500 clients will participate in 200 sessions in the areas of business transition, business development/business start-up and value chain workshops. Eight hundred and thirty (830) clients and 304 staff participated in 322 sessions including environmental farm planning, leadership training and business management. Successful delivery of the Hometown Manitoba program in rural Manitoba. Staff managed over 300 Hometown applications, resulting in 322 projects that were approved in 2011/12, totalling $560.5 thousand in provincial support. Projects included 95 ($285.2 thousand) for meeting places, 192 ($164.6 thousand) for main streets and 35 ($110.7 thousand) under the tree component. The projects leveraged over $3 million in total project dollars being spent in rural communities. 100

127 Staff will continue to support Manitoba Ag Days with program development, technical presentations and organizational capacity building. More than 30,000 people attend over three days, and it is estimated $7.5 million is injected into the local economy during the event. Staff provided significant support to Manitoba Ag Days with program development, technical presentations and organizational capacity. Five staff made program presentations to an average of participants. Objective 12: Increase entrepreneurial capacity in rural and northern Manitoba. Staff will assist the Department of Healthy Living, Youth and Seniors with intake assessment and business plan development from 25 Young Entrepreneurs Program applications. Staff assisted with the intake, assessment and business plan development for 28 applications. Staff will co-deliver, in partnership with Entrepreneurship, Training and Trade (ETT), a minimum of ten business planning workshops in rural Manitoba. Staff co-delivered 11 rural business start workshops to over 120 participants, resulting in increased access for rural entrepreneurs to programs, such as Young Entrepreneurs Program and Rural Entrepreneurship Assistance program. Staff will publish and distribute four editions of Rural Biz e-bulletin to an estimated 650 contacts. Staff published and distributed the Rural Biz e-bulletin to 845 contacts. Staff will promote and work with up to ten entrepreneurs under the Young Rural Aboriginal Entrepreneurship initiative. Staff promoted the initiative by providing information to Community Development Corporations, rural municipalities and directly to potential clients resulting in three successful applications to the program. Objective 13: Help government articulate a rural economic development vision and policy framework. Staff will provide support, recommendations, and resources towards the development of a rural economic development vision and policy framework through Agriculture as a Solution consultations. Staff organized and delivered 10 advisory council sessions focused on Agriculture as a Solution. Objective 14: Enhance the environmental stewardship of primary agriculture production. Twenty-five environmental farm plan meetings will be planned and delivered. Staff delivered 32 environmental farm plan meetings to over 400 clients. Ten presentations on environment goods and services will be given on topics, such as carbon credits, riparian areas, wetland retention, and reducing stubble burning. Staff delivered at 10 meetings on topics that included: fertility management, crop residue management, riparian management and water management. Two carbon offset trading presentations will be delivered. Staff delivered three precision agriculture presentations at meetings in Pembina, Red River and Southwest GO Teams. Assistance will be provided for completion of Environmental Farm Action Plan (EFAP) and Manitoba Sustainable Agriculture Practices Program (MSAPP) applications, so applicants have a better 101

128 understanding of programs and the impact the changes they make will have on the environment. Staff completed over 50 in-depth consultations on environmental funding applications. Through the Growing Forward Environmental extension program, staff submitted and had approved applications for a total budgeted funding of $66 thousand. Objective 15: Develop climate change mitigation strategies. Staff will support provincial biomass workshop and biomass densification projects. Staff will develop cost of production budgets for biomass. Staff delivered technical presentations at three workshops, distributed four e-bulletins on Biofuel Business Management and extended information to producers about new technologies and processes (e.g. biofuel production, straw densification). Staff will support the provincial objective of changing coal usage to biomass usage, by supporting requests from the Agri-Food Innovation and Adaptation Knowledge Centre. Staff supported Agri-Food Innovation and Adaptation Knowledge Centre staff to determine overall coal usage by agricultural producers, and prepared preliminary cost of production budgets for various biomass models including wheat straw and biomass energy cost comparisons. Objective 16: Enhance the safety of the food supply in Manitoba. In partnership with Ag Societies and other groups, staff will deliver more than 20 events that promote buylocal food consumption, as well as have presence at large public events including Ag Days, the Royal Winter Fair and Discover Ag in City at the Forks. Staff work with the 59 Agricultural Societies on events including farm production events, farm safety days, Buy Manitoba/agriculture awareness promotions, rural agricultural fairs and 4-H activities. Partner with the Chief Veterinary Officer (CVO) to deliver on-farm food safety programming with commodity group partners. Promote premise ID program to Manitoba livestock producers working towards the complete registration of all Manitoba livestock producers. Staff are members on seven On-Farm Food Safety commodity committees. These committees are developing new Good Agricultural Practices (GAP) in food safety, traceability and biosecurity. Two (2) meetings in the Eastman area were organized to deliver information on anaplasmosis. Staff co-ordinated presentations on premise identification to approximately 500 livestock producers at five beef and forage week meetings. Staff was directly involved (mustered animals, loaded and made alternative housing arrangements) in animal evacuations during the 2011 flood event, which improved the welfare of distressed livestock. Objective 17: Promote linkages between food production, food processing and the health of Manitobans. Staff will continue to work on the NHFI in partnership with other departments, organizations and educational groups promoting local food product consumption in northern and Aboriginal communities. Staff continues to work with NHFI partners in promoting greenhouse projects, growing root crops, greenhouse design and construction, food handling and preservation. Additional Results: The flood of 2011 was unprecedented in Manitoba history. GO teams branch staff spent a considerable amount of time reacting to the demands for program development and client service delivery. Flood and excess moisture work consisted of the following: 102

129 A significant number of GO branch staff supported the Emergency Operations Centre. Seventeen thousand, one hundred twenty-four (17,124) flood related enquiries (livestock, crop, rural business and other) were handled through our rural GO offices. Staff had a significant role in the development and administration of six Flood 2011 Building and Recovery Action Plan programs and six 2011 Manitoba AgriRecovery programs and their various components. These programs have generated over 7,000 applications and corresponding client follow up. GO staff were involved in emergency response livestock issues around Lake Manitoba. Staff in the South Interlake team supported the delivery of the Shoal Lakes Agricultural Flooding Assistance program, including the voluntary buyout component. GO offices in the Interlake, North Parkland, South Parkland, Central Plains and Southwest handled numerous applications, case files and client questions. All offices in all GO team areas provided front line services to clients, applying for various flood and excess moisture component programs under the AgriRecovery program. Many staff from other GO teams were redeployed to provide support to the flood initiative in the form of: on-farm verification of client information, application intake, application review and support to the MASC Flood Recovery office in Portage la Prairie. The focus and volume of work that staff experienced over the past year was significantly different from previous years, and directly resulted in the need to reprioritize our plans in 2011/12. 5 (a) Growing Opportunities Centres Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 9, ,809 (1,161) (2) Other Expenditures 3,253 3,742 (489) Total Sub-Appropriation 12, ,551 (1,650) 103

130 Appropriation 5(b) Economy and Rural Development The Economy and Rural Development Knowledge Centre supports farms and rural businesses in developing profitable, sustainable enterprises and turning rural and northern Manitoba communities into vibrant and sustainable regions. The centre strengthens the human capacity to establish and manage businesses and communities and promotes economic development opportunities in rural and northern Manitoba. It also facilitates collaboration among farm and rural economic development stakeholders. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Increase income that producers receive from the marketplace. Five thousand people will participate in programs to evaluate their management skills and business needs and increase their knowledge, improve skills and develop action plans for their businesses. Forty thousand (40,000) participants were reached through the five resources and 47 events supported by the Agri-Extension Business program. A Young and Beginning Farmer Conference, Manitoba Farm Women s Conference and a Young Farmer Newsletter were supported. 72% of participating clients reported they have adopted beneficial management practices. Developed 134 action plans through the Agri-Advisor program. Under this program, 63 succession plan reviews, eight feasibility start-ups, 66 business plans, 23 marketing plans and one product development plan were completed with 73% reporting improved business management knowledge and skills and 83% indicating they met their business goals. Staff developed 188 learning plans with farm clients, with 89% of clients reporting improved business management knowledge and skills and 86% indicating they adopted beneficial management practices. Objective 2: Provide risk management and risk mitigation and other programs for producers to enhance long term viability. Eighteen hundred people will receive support through Manitoba Farm and Rural Support Services. Two thousand, two hundred twenty-three (2,223) people received support through the Manitoba Farm and Rural Stress Line. Two thousand (2,000) families affected by the flood were reached with two new stress management resources: Signs of Stress and Stress on the Farm. One hundred and fifty (150) agricultural finance professionals received stress management tools through three workshops. Fifteen (15) farmers received support through two farmer to farmer support groups. Objective 3: Increase the number of new entrants (farm and farm labour) into primary agriculture. One hundred and twenty young farmers will receive a management training credit on their MASC loan. One hundred and thirty-eight (138) loans received a management training credit. Fifteen hundred people will receive the Young Farmers Newsletter. Three (3) issues of the Young Farmers Newsletter were distributed to 1,500 clients. Eight hundred youth will complete an agriculture based 4-H project Nine hundred and sixty (960) 4-H agriculture projects were completed by rural youth. 104

131 Fifty young farm women will have increased skills and involvement in the farm business. Sixteen (16) young farm women participated in a pasture tour and 700 women received information through a farm women s newsletter. Fifty GO team staff will have improved connection, cultural awareness and knowledge of Aboriginal agriculture producers. Provided connection, information and leads to 52 MAFRI staff for dealing with agricultural programs. Assisted five First Nations and one Métis producer to complete applications for Growing Forward programs. An Agriculture Sector Council will be established. A needs assessment involving 400 Manitoba farmers was completed which supports the development of an Agriculture Sector Council. Objective 4: Increase sales of Manitoba produced food and agri-products to Manitobans and increase sales at Manitoba Farmers Markets. One community commercial kitchen will be established, supporting five new or growing agri-food businesses. Supported eight (8) food entrepreneurs in developing their product and business plan. Participated in the management of the Northern Healthy Foods Initiative reaching 91 communities. This initiative involves 59 greenhouses and 1,155 gardeners in 897 gardens and produces 166,743 pounds of vegetables. Thirteen communities and 30 families are involved in livestock production. Objective 5: Establish a robust bioproducts sector in Manitoba. Five hundred people will attend Capturing Opportunities and will enhance their understanding of the biobased economy. A total of 2,101 individuals attended Capturing Opportunities, with 213 participating in bio-based economy seminars. Objective 6: Support applied research and innovation in rural economic development. Six rural development research projects will be supported. Eight (8) projects were supported. Over 1,000 hits and downloads of Rural Development Institute (RDI) information and 4,000 downloads of the Journal of Rural and Community Development are averaged per month. Local GO team staff will be trained and supported in using the model for sustainable community planning to assist two local community or regional development groups in working on their strategic plan. The results of the sustainable community planning pilot projects were shared with Community Economic Development specialists who have since supported communities with planning activities. Sustainable community plans were also developed with the Northern Healthy Foods Initiative partners. Three rural initiatives scholarships will be awarded in rural development. Scholarships were not awarded in order to maintain the principal in the scholarship fund. 105

132 Objective 7: Increase the capacity of rural and northern communities to drive local economic development. Two thousand people will be exposed to new business and economic development ideas and concepts. Reached 22,308 individuals through 16 business workshops, competitions and seminars. Five leadership development events will reach 500 rural leaders and youth. Communication, leadership, board governance and strategic planning concepts were delivered through seven leadership development events reaching 156 people. Two thousand youth will develop practical, marketable skills through the completion of a 4-H project. 4-H youth completed 2,712 4-H projects. One hundred and twenty youth will gain experience in making public presentations. Seventy-nine (79) members represented their regions in a Provincial 4-H Communications event. Ten women will gain leadership skills through their involvement with the Manitoba Farm Women s Conference committee. The Manitoba Farm Women s Conference had 12 women participate on the planning committee. Thirty-five rural youth and families will build international network contacts. Due to the earthquake and tsunami in Japan, the 2011 exchange program was postponed. Thirty-five 4-H members and leaders will gain experience and skills in effective board governance and management. The Manitoba 4-H Council had 30 4-H members and leaders participate on its board. Five hundred people will be exposed and trained in the use of the Community Economic Development pathfinder tool. The tool was updated and shared at the Association of Manitoba Municipalities conference. Twelve rural community organizations will be supported with strategic planning, consultation and/or leadership training. Eighteen (18) community organizations and groups were supported with strategic planning, governance, and leadership development. Training was provided to 95 people through five workshops. Seven economic development projects of regional importance will be undertaken by the seven Regional Development Corporations. Regional Development Corporations reported using grant funding for 38 projects. Five collaborative projects will be undertaken through Rural Team. Rural Team met quarterly with 38 federal, provincial, academic and community serving organizations. Objective 8: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Entrepreneurs and MAFRI staff working with entrepreneurs will access the business development pathfinder. The business development pathfinder tool was updated and made available to business development specialists for use in their work with clients. 106

133 Staff will work with Community Economic Development partners and encourage the co-ordinated delivery of economic development between agencies involved in providing the services. Co-ordination with other groups and agencies was undertaken and information shared with other economic development groups to ensure best use of resources and to extend reach to clients. Staff will work in further development of a co-ordinated approach with other departments to involve immigrants in rural business succession. Facilitated discussions with 36 international investors interested in exploring farm and rural businesses. Objective 9: Increase entrepreneurial capacity in rural and northern Manitoba. Five Young Rural Aboriginal Entrepreneurship projects will be supported. Provided business development assistance and guidance to six entrepreneurs and supported one Aboriginal entrepreneurship and business conference. Entrepreneurship will be highlighted as a career opportunity with 100 Manitoba youth. One hundred and forty-three (143) youth received business skills through workshops and competitions. Six (6) youth awards for business and entrepreneurship were presented. Developed a career planning workshop for youth to identify skills, experience and knowledge that can be used to achieve entrepreneurship and business success. Junior Achievement Manitoba will develop a strategic plan and marketing strategy with assistance from MAFRI staff. Provided support to Junior Achievement in the development of their organization s sustainability plan and discussed options for extending the program further into rural Manitoba. (The program was moved to Children and Youth Opportunities in January Capturing Opportunities awards will be presented in four categories celebrating success and leadership in entrepreneurship and rural economic development. Thirty community projects highlighting rural economic development, business and entrepreneurship success were celebrated at Capturing Opportunities. Twenty people will participate in the Entrepreneur Boot Camp. Nine (9) businesses participated in the business management workshops, networking, one-onone advisory sessions and the business pitch competition as part of the Entrepreneur Boot Camp. Seven people will participate in the Great Manitoba Food Fight. Eight (8) food entrepreneurs enhanced their product and business plans through the Great Manitoba Food Fight. Four editions of the e-biz bulletin will be distributed to 500 people. Three (3) editions of the Rural e-biz bulletin highlighting business information and successes were distributed to 650 contacts. Additional Results: Supported the development and delivery of flood related assistance to Manitobans with emphasis on the Excess Moisture Economic Stimulus Program, the psycho-social flood response teams and the flood recovery office. Thirty-five (35) families were recognized for maintaining their family farm for 100 years and 25 farm families were celebrated for maintaining their family farm for 125 years. 107

134 5 (b) Economy and Rural Development Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits 1, ,894 (347) 1 (2) Other Expenditures (240) (3) Grant Assistance Total Sub-Appropriation 2, ,503 (587) 1. The under-expenditure is primarily due to expenditure management measures to defer filling vacant positions. 108

135 Appropriation 5(c) Food Development Centre The Food Development Centre (FDC) is a Special Operating Agency of the Province of Manitoba and operates under the authority of Manitoba Agriculture, Food and Rural Initiatives (MAFRI). Its mandate is to assist the agri-food industry in the development and commercialization of conventional and functional foods and natural health products. More information can be found in the FDC 2011/12 Annual Report available on the website. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Support innovation to drive higher profitability for the agriculture sector. Initiate one joint project with a Manitoba Agri-Health Research Network (MAHRN) partner. FDC initiated one joint project with the Canadian Centre for Agri-Food Research in Health and Medicine (CCARM) for a Northern Manitoba-based client to develop and clinically test birch sap and chaga products for diabetes health. This project was jointly funded by Manitoba Health, Aboriginal and Northern Affairs and the Commercialization Support for Business (CSB) program. Five product development projects with producer groups under the direction and support of MAHRN (projects with bioactive components in carrots, buckwheat, pulses, sunflower seeds and saskatoons). FDC successfully developed four product prototypes (carrot powder, sunflower seed hulls, Saskatoon berry powder and Saskatoon berry syrup) under the Manitoba Functional Food Opportunity Program (MFFOP II) which is managed by MAHRN. A buckwheat snack developed as FDC s in-house development project, was licensed to a Manitoba company and is now being sold in the market under the brand name BuckShots. Two (2) new projects were approved for FDC by the Manitoba Pulse Growers Association (MPGA): The development of a soy-berry smoothie using Manitoba fruits and the evaluation of the performance of pea fibre compared to cellulose fibre in white bread products. FDC initiated one sunflower seed project which seeks to incorporate the high fibre content of the hulls as an ingredient in human food. Develop two food products (including snacks) utilizing pulse fractions and barley fractions. Work continues at FDC on prototype development of a retorted barley pilaf in a shelf stable pouch. FDC continued work on a two-year strategic research project to investigate the use of pea fractions (starch, fibre, flour and protein) in coatings for battered French fries, breaded cheese sticks, vegetables and onion rings. Objective 2: Support applied research and innovation to increase returns and opportunities for the value added sector. One training session for the producers and food processors to share research results. FDC held its first Sodium Reduction Seminar in conjunction with the Manitoba Food Processors Association (MFPA) and MAHRN on November 29, The goal of the seminar was to inform food processors about the current levels of sodium in foods and methods to reduce sodium in order to create healthier food products in the future. Assist two Manitoba companies in the commercialization of functional products. FDC assisted four companies in the commercialization (launch) of functional food products. Production of one new functional food product in the Pilot Plant. 109

136 The Pilot Plant produced 10 new functional food products. Objective 3: Grow Manitoba s food industry. Growth of four new food companies through food production creation. FDC assisted in the growth of four new food companies through food production in the pilot plant. Initiation of three new clients producing in the Pilot Plant. FDC initiated six new Pilot Plant clients that are currently producing products. Objective 4: Enhance the safety of the food supply in Manitoba. FDC Hazard Analysis Critical Control Point (HACCP) co-ordinators will complete five external and four internal HACCP plans for Manitoba food processors. FDC HACCP consultants developed and completed 11 HACCP plans for internal clients and two HACCP plans for external clients. Objective 5: Promote linkages between food production, food processing and the health of Manitobans. Development of two products with gluten-free ingredients. FDC developed five gluten free products: A buckwheat snack available in four flavours, two varieties of millet flour, a berry bar, a wild rice mix and a mozza stick made with pea flour. Present at one seminar on nutritional labelling. FDC consultants presented nutritional labelling information at seven seminars. Develop two products with approved health claims. FDC produced three products that would qualify as products with approved health claims: o Hibiscus ready to drink (RTD) beverages. o Muesli. o Seabuckthorn berry puree. Incubate and manufacture three healthy products in Pilot Plant. FDC manufactured six health conscious products in the Pilot Plant for companies as follows: o Genki berry bar. o Roasted peas. o Buckwheat snacks (four flavours). FDC created prototypes for six healthy products: o Oat bran pudding mix. o Millet flour. o Wild rice bar mix. o Very berry prairie bar. o Extruded oat bran. o High fibre mozza stick. 5 (c) Food Development Centre Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Grants/Transfer Payments 2,245-2,245 - Total Sub-Appropriation 2,245-2,

137 Appropriation 5(d) Food Commercialization and Marketing The Food Commercialization and Marketing Knowledge Centre provides services to Manitoba Agriculture, Food and Rural Initiatives (MAFRI) staff, agriculture producers, food processors and organizations to strengthen the competitive position of Manitoba s agriculture and agri-food industry in the domestic and global marketplace. The Food Commercialization and Marketing Knowledge Centre provides marketing and business management services and information, facilitates industry promotion through collaboration and alliances, and partners in building a diversified rural Manitoba. Delivery of programs and services is supported with media promotion, workshop reference materials, publications and other resources. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Increase sales of Manitoba produced food and agri-products to Manitobans and increase sales at Manitoba Farmers Markets. The Buy Manitoba initiative offers a local approach to the economics of the food system by developing strong local linkages between farmers, processors, retailers and consumers. The Buy Manitoba program will shift Manitoba s economic priorities toward support for a sustainable community-based economy resulting in increased consumption of local foods while strengthening the local food distribution system. Staff for the Buy Manitoba Program were hired, which included the program manager and a PR/media co-ordinator. Brand design and implementation strategy were developed. The new brand was unveiled to Manitoba Food Processors Association members. Preparations for consumer launch of the brand were made with Canada Safeway and Canad Inns, the program s primary retail grocery and foodservice partners, respectively. The program s website, was launched. Increase the growth of farmers markets in Manitoba and strengthen the Farmers Market Association of Manitoba (FMAM) and the sales of local foods. MarketSafe training was offered for market vendors at the 2012 Direct Farm Marketing Conference, March 9-10, The conference provided a venue for Farmers Market Association of Manitoba s fifth Annual General Meeting (AGM). The FMAM market membership increased from 36 to 43 member markets. (Total of 65 farmers markets in Manitoba). MAFRI supports FMAM by assisting local markets with the organization of meetings, contacting vendors and promoting farmers' markets. Publish the Manitoba Food Products Guide and Manitoba s Local Produce Guide for consumers as well as a web listing for business-to-business trade. These resources will increase the consumption of local foods by Manitobans while strengthening the local agri-food industry. MAFRI updated and published the Local Produce Guide which promotes farmers markets, market gardens, u-picks and community-supported agriculture farms. Distribution of the guide was increased to 15,000 copies from the previous 10,000. It was also published on MAFRI s website. MAFRI updated, published and distributed 10,000 copies of the Food Products Guide listing 127 food processors throughout the province. This guide is also available on the MAFRI website. Collaborate with the Direct Farm Marketing Conference to introduce participants to new marketing ideas and strategies, emerging trends in agri-food, agritourism and farmers markets so that rural and farm entrepreneurs can expand their income streams while growing both domestic and international tourism in the province. The Direct Farm Marketing Conference, March 9-10, 2012, in Gimli, provided training sessions for 130 participants. Topics included: Social media marketing, risk management liability insurance, 111

138 culinary tourism, MarketSafe food safety training, commercial kitchen regulations, new legislation for estate wineries and breweries, realities of agritourism and fruit production research. The Direct Farm Marketing Conference s evening event, Celebrate Local Flavours provided local food entrepreneurs a marketing opportunity to test the market, create awareness and sell their products. The Direct Farm Marketing Conference provided a venue for the Prairie Fruit Growers Association and Farmers Market Association of Manitoba to conduct their annual general meetings in conjunction with the conference. Develop current and timely information on consumer food and beverage trends, including organic, for MAFRI staff, producers and processors. Researched, compiled and provided consumer food and beverage trends information in response to 11 MAFRI staff and client requests. Presented consumer food and beverage trends information as well as marketing strategy information to a total of 68 clients at three Selling Your Food Products at the Farm Gate workshops held in Stonewall, Steinbach, and Somerset. Use the consumer monitor panel data and analysis to determine and disseminate the implications and usefulness of the identified trends in consumer attitudes and perceptions for Manitoba stakeholders to support business and policy decision-making. The Manitoba Consumer Monitor Food Panel data and analyses relating to the selection, consumption and perceptions of local foods were used in the brand and strategy development of the Buy Manitoba Program. MAFRI provided marketing expertise to the Joint Steering Committee of the Manitoba Consumer Monitor Food Panel regarding pricing, promotional, and panelist retention strategies and assisted in the development of survey questionnaires. Objective 2: Grow Manitoba s food industry. Engage up to ten new food entrepreneurs in showcasing their products at the Great Manitoba Food Fight at Capturing Opportunities, with the goal of two new food products entering the retail or food service channel. Eight (8) entrepreneurs presented their new food product innovations to a panel of judges at Assiniboine Community College s Manitoba Institute of Culinary Arts (MICA). MICA s students helped competitors to see the foodservice market potential for their products by creating a unique recipe using each competitor s food product as a base or significant ingredient. Product development activities for the three winning products have thus advanced, but are not yet completed. Participate on the Trade Team Manitoba Council that is represented by MAFRI; Manitoba Entrepreneurship, Training and Trade; Department of Foreign Affairs; International Trade; Agriculture and Agri-Food Canada; and Western Economic Diversification Canada that co-ordinates international trade with industry and associations to promote and increase Manitoba exports. Three (3) Trade Team Manitoba Executive Council meetings were held during the 2011/12 fiscal year. The main outcome of these meetings was the sharing of information regarding pending incoming and outgoing trade missions. Strengthen the Manitoba agri-food industry in India by promoting trade activities with India including collaborating with the Indian Government in developing a food park in India that will result in expanded trade with India in services, agri-food products and agricultural equipment and food storage equipment. The Food Development Centre (FDC) continued to pursue projects in India with Central Government of India partners in Delhi, State Government partners in Bihar, Punjab and Haryana, with commercial partners in West Bengal and with academic partners in Karnataka. Business missions to India took place in November 2011 and March FDC is continuing to seek opportunities to partner with The National Institute of Food Technology 112

139 Entrepreneurship and Management (NIFTEM) and the central government initiative of the Ministry of Food Processing Industries (MFPI) in the hope of providing scale-up and commercialization expertise for the incubation suites at NIFTEM. Punjab Agro Industries Corporation (PAIC) has agreed to partner with FDC to develop product specific proposals including primary and secondary processing recommendations for wheat, rice, one fruit and one vegetable product. o A document has been provided to PAIC outlining our capacity in processing. FDC met with the University of Agricultural Sciences Dharwad (UASD) in Karnataka to pursue opportunities to establish a food development centre on their university campus. They are interested in expanding their extension activities into added value for native products and cultivated crops. FDC is preparing product-specific prototype development proposals to demonstrate its capacity and to assist the university in selecting a direction to expand their services, culminating in an operational food development centre on their campus. Objective 3: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Work with stakeholders in the agritourism industry to enable the agricultural sector to capitalize on tourism opportunities and to find solutions for ongoing and emerging issues as identified in a 2008 study of the agritourism industry in Manitoba. The Inter-departmental Task Group initiated by the Memorandum of Co-operation (MOC) between MAFRI and Culture, Heritage and Tourism (CHT) and signed by the ministers on September 28, 2010, continued to plan and implement the Provincial Agritourism Strategy. The MOC includes provisions for departmental co-operation resulting in the Tourism Secretariat providing training resources to MAFRI staff and clients through the Manitoba Tourism Education Council (MTEC); MAFRI co-ordinating and delivering capacity building, training workshops for farmers in co-operation with partners; Travel Manitoba including agritourism packages in marketing/promotion vehicles, and partnership development of agritourism operators. MAFRI participated in discussions with the Canadian Agritourism Working Group and Rural and Co-operative Secretariat of Agriculture and Agri-food Canada in order to collaborate on a national study of the economic impacts of agritourism and rural culinary tourism activities in Canada. Continue to engage members of the Agritourism Advisory Committee that is representative of the various sectors of the agritourism industry to enable farmers to voice their concerns in order to find solutions to the issues impeding the development of the industry. MAFRI staff convened three Agritourism Advisory Committee meetings to find solutions to the issues impeding the development of the agritourism industry. Discussions included liability insurance question and answer session with brokers in order to develop insurance tailored to agritourism operations; food safety regulations that applied to country vacations, bed and breakfasts and farm gate sales; reviewed signage regulations through Manitoba Infrastructure and Transportation; marketing training included social media technology, agritourism training needs and promotional opportunities afforded by Travel Manitoba and Open Farm Day. Provide training opportunities to farmers who are involved in or interested in agritourism. MAFRI continued to develop an accredited agritourism training program with the Assiniboine Community College, incorporating advice from the Agritourism Advisory Committee to include experiential best practice tours and practical business information, using a variety of delivery methods such as face-to-face, on-line and mentoring. The Growing Forward funding application was deferred to the next funding year, 2012/13. Training opportunities for farmers interested in agritourism included an Open Your Gates to Agritourism workshop in Pine Falls, Selling Food at the Farm Gate workshops in Steinbach, Somerset and Stonewall, Cutting Edge Experiential Tourism workshop with Travel Manitoba and the Direct Farm Marketing Conference in Gimli. 113

140 An Experience Agritourism interactive display at Ag Days on January 2012 showcased the experiences of four agritourism operations educating the public and farmers about agritourism. Open Farm Day, September 18, 2011 will provide consumers the opportunity to learn more about farming, the products produced on the farm and agritourism. The second Open Farm Day occurred Sunday, September 18, 2011 with 4,200 travellers visiting the 44 host farms which is an increase of eight host farms over last year. There were two local food supper events held in Steinbach and Arborg in conjunction with Open Farm Day which served a combined total of 475 people and grossed $12.3 thousand with funds going to community organizations. Objective 4: Support applied research and innovation to increase returns and opportunities for the value added sector. MAFRI staff will deliver three value chain workshops and will participate in at least ten one-on-one consultations extending the benefit of the value chain model. Manitoba hosted a Canadian Value Chain Network Conference in September MAFRI staff continued to promote the benefits of the value chain model in client consultations. Value chain information and resources are available on the MAFRI website. Additional Results: Presented retail grocery and foodservice industry structure, marketing strategies, pricing information and worksheets to a total of 36 clients at a workshop held in Stonewall. Provided a total of 51 hours of one-on-one consultation to 12 clients regarding product strategy, brand strategy, pricing strategy, marketing, and market development. Provided marketing expertise towards the development of marketing materials, signage and website for the Food Processing Centre Pilot Project in Swan River. Provided marketing advice, industry and government connections and strategic direction to members of the Food Matters Manitoba Farm and to Cafeteria Steering Committee. Provided advice and support in the development of a provincial food strategy for MAFRI which will provide direction on the development of programs and policies in support of the food processing sector. MAFRI collaborated with Manitoba Entrepreneurship, Training and Trade in making preparations for the North American Agricultural Marketing Officials conference being hosted by Manitoba in July 2012, including the development of the conference program, selection of venues and speakers, menu development and procurement of resource materials and samples of Manitoba products. Collaborated with the Canada Organic Trade Association and the Manitoba Organic Alliance to provide training on Opportunities in the Organic Marketplace held on March 16, 2012 for 43 participants. Topics included detailed analyses of the key organic markets of Germany and the United States, as well as opportunities in the domestic marketplace. Developed a monthly electronic newsletter which provides trends in the organic marketplace and market intelligence (including pricing and sales opportunities) to the organic industry. The newsletter is distributed by the Manitoba Organic Alliance. Provided one-on-one crop planning and marketing advice to 12 organic operators. Organized two additional market development workshops for organic operators to be held in April 2012 and began planning for an international organic ingredients show to be held on January 2014 in Winnipeg. 114

141 5 (d) Food Commercialization and Marketing Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (1) Salaries and Employee Benefits (331) 1 (2) Other Expenditures (351) 2 Total Sub-Appropriation ,275 (682) The variance is mainly due to expenditure management measures to defer filling vacant positions. The under-expenditure is primarily due to reduced operating costs resulting from vacant positions and the ending of the Value Chains Initiative. 115

142 Appropriation 5(e) Infrastructure Development Grants This program facilitates infrastructure projects which enhance sustainable economic development in various communities in Manitoba. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Development of municipal infrastructure (sewer/water/roads) to service new or expanding enterprises in rural Manitoba deemed of strategic importance to the regional/local economy. Additional Results: Provided $237.5 thousand to Winnipeg Old Country Sausage Ltd. to upgrade and expand their existing Winnipeg facility to become a federally registered meat processing facility compliant with federal meat inspection regulations, allowing the company to expand its meat exports to markets across Canada. 5 (e) Infrastructure Development Grants Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Grants/Transfer Payments 238-1,015 (777) 1 Total Sub-Appropriation 238-1,015 (777) 1. The under-expenditure is primarily due to expenditure management measures to defer capital projects. 116

143 Appropriation 5(f) Less: Recoverable from Rural Economic Development Initiatives (REDI) This sub-appropriation provides for the partial recovery of salary and operating expenditures related to departmental economic development activities, capital infrastructure programs and grants to the Regional Development Corporations from Rural Economic Development Initiatives. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Facilitate the funding necessary to enhance sustainable community and economic development in rural and northern Manitoba. Provide the necessary funding for the delivery of Rural Economic Development Initiatives and for the Regional Development Corporations to meet the requirements of rural and northern Manitoba. The performance of the funded programs is reported within Rural Economic Development Initiatives. Funding of $1,141.9 million was provided for the salaries and operating costs of staff members delivering economic development programs in rural and northern Manitoba. Provided $490.1 thousand to seven Regional Development Corporations for fostering communication and co-operation amongst member municipalities and other stakeholder groups, to pursue economic development opportunities and initiatives. Contributed $237.5 thousand through the Infrastructure Development Grants Program towards the upgrading and expansion of Winnipeg Old Country Sausage Limited existing Winnipeg facility to become a federally registered meat processing facility and expand its meat exports to markets across Canada. 5 (f) Less: Recoverable from Rural Economic Development Initiatives Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Recoveries (1,869) - (2,258) Total Sub-Appropriation (1,869) - (2,258) Recoveries were lower than anticipated mainly due to decreased economic development initiatives costs, resulting from expenditure management measures to defer filling vacant positions and limiting discretionary expenditures. 117

144 Appropriation 5(g) Rural Economic Development Initiatives The Rural Economic Development Initiatives (REDI) supports rural and northern community economic development activities. REDI is a fund derived entirely from revenues generated by video lottery terminals in rural and northern Manitoba. Funds are invested back into the economy to encourage economic development and diversification. These funds are designed to provide a boost to the economy while laying the foundation for sustained growth and development. The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: Support applied research and innovation in rural economic development. The preparation of three reports related to rural community economic development. In the spring of 2011, MAFRI and the Rural Development Institute (RDI) at Brandon University renewed a memorandum of agreement (MOA) for a five year period from April 1, 2011 to March 31, 2016 for a total investment of $545 thousand. The department provided $100 thousand to the RDI in 2011/12 under this renewed MOA. Four (4) research proposals were approved in 2011/12 for the feasibility of producing fertilizer from northern Manitoba s low-value fish species; understanding the challenges faced by community development corporations; mechanisms of kelp stimulation on crop growth in northern Manitoba; and developing promotional strategies for increased usage of recreational facilities in a rural area. Four (4) research projects were conducted during 2011/12 relating to immigration and rural communities; future-oriented planning tools for rural economic development challenges; pathways for communities selecting tools for Community Economic Development; and retention strategies for rural communities. $1.080 million provided to support the commercialization of new products/innovations. Sixteen (16) food related projects were approved in 2011/12 for a total of $198.4 thousand under the Commercialization Support for Business (CSB) Program administered by Manitoba Entrepreneurship, Training and Trade. MAFRI staff consulted with entrepreneurs/businesses relating to the development of 30 food related projects. MAFRI staff gave presentations to 60 entrepreneurs and service providers at five regional events on the CSB program. Additional Results: Provided $87.6 thousand to Canadian Prairie Garden Puree Products Inc. to assist with the development and commercialization of bulk aseptic packaged vegetable and fruit purees for food production. Contributed $19.6 thousand to YOMM Beverages Inc. to develop, market and produce a Manitoba-made hibiscus tea product. REDI provided $4 thousand for a business plan regarding the layout and design of the proposed expansion to the recreation complex in Carman. Provided $40 thousand to the St. Boniface Research Centre for a study of the effects of chaga mushrooms and birch tree sap in the treatment of Type 2 Diabetes. Contributed $10.7 thousand to Ridgeland Colony Aqua Farm to support costs associated with the commercialization of a new Arctic char fish hatchery in Dugald, Manitoba. Contributed $46.7 thousand toward a feasibility study/business plan for the Gimli Airport. Objective 2: Increase the capacity of rural and northern communities to drive local economic development. 118

145 Contribute $250 thousand to the Brandon and Thompson Neighbourhood Renewal Corporations. Provided $250 thousand through Manitoba Housing and Community Development to support the operation of Neighbourhood Renewal Corporations in Brandon and Thompson that are involved in community-driven neighbourhood revitalization efforts. Expend an estimated $8 million for economic development/business projects. REDI provided $ million in financial support for 38 economic development/business projects throughout rural and northern Manitoba, many of which have been noted within this narrative. During 2011/12, REDI investment in rural and northern communities across Manitoba resulted in the leveraging of $ million in investment to boost Manitoba s rural economy and give rural communities and businesses the tools to help them grow. Creation of two new community foundations in rural and northern Manitoba. A new three year agreement was entered into in the fall of 2011 with The Winnipeg Foundation for a total of $300 thousand to help pay for the business support services it provides to Manitoba s 47 rural community foundations. REDI provided $100 thousand in 2011/12 under this new agreement to The Winnipeg Foundation to enhance the presence of Manitoba s community foundations. Currently, The Winnipeg Foundation is managing 283 funds worth $17.3 million for 30 Manitoba Community Foundations. Contribute $490 thousand to the seven Regional Development Corporations for regional community economic development initiatives. REDI contributed $490.1 thousand to the seven Regional Development Corporations to foster communication and co-operation amongst member municipalities and other stakeholder groups, to pursue economic development opportunities and initiatives. Creation of two Community Round Tables in a rural or northern community. Provided funding of $5 thousand for the development of a competitive analysis of trade corridor systems to attract investment, industry development, manufacturing and related services for 11 municipalities in the Parkland Area. Provide $110 thousand to Community Economic Development activities/services in 15 northern communities. An investment of $107.1 thousand was provided to the Community Economic Development Fund (CEDF) for the delivery of REDI programs in northern communities including single industry communities of Lynn Lake, Leaf Rapids, Churchill, Snow Lake, Wabowden and Thompson, as well as Aboriginal and Northern Affairs communities of Thicket Portage, Brochet, Norway House, Nelson House, Moose Lake and Cross Lake. Results of the 2011/12 Community Economic Development activities include: o Research and writing of the Northern Commercial Hydroponics, a business plan that proves the economic viability of commercially grown produce in northern Manitoba. o Housing audit of Leaf Rapids Housing Renewal Project - Phase I and development of Phase II of Leaf Rapids Housing Renewal Project including an apprenticeship component for local residents to address local labour market concerns. o Research and writing of the University College of the North (UCN)/Leaf Rapids Regional Centre concept paper. Concept outlines a strategy to counter the 40 plus percentage failure rate of northern first year post secondary students attending southern institutions. o Research and writing of the Lynn Lake Water Plant Operator/Assistant Town Foreman funding proposal and position description. Additional Results: REDI contributed $44.8 thousand to support developmental work towards a comprehensive Brandon Regeneration Strategy focusing on the redevelopment of the downtown area. 119

146 REDI provided funding of $40 thousand for Capturing Opportunities 2011, which took place April 20 to 21 in Brandon. The forum brought communities, businesses and youth together to discuss issues of importance to rural and northern communities. The theme for 2011 was "The Bio- Based Economy and focused on food and health, bioproducts, energy and agriculture. Provided $375 thousand to the Keystone Centre in Brandon for operating and debt servicing. REDI contributed $326.2 thousand in financial assistance to planning districts and municipalities under the Community Planning Assistance Program, which is part of Manitoba s Livestock Stewardship Initiative, for the preparation of planning by-laws, public involvement in the planning process and the creation of digital parcel mapping to support land use policy and implementation. Manitoba Conservation and Water Stewardship administered REDI funds of $502.4 thousand for the suppression of the spruce budworm outbreak and to protect the long term wood supply in northwestern and eastern Manitoba. REDI provided funding of $236 thousand towards the Beach Safety Program which provides water safety education and emergency response at Birds Hill, Grand Beach and Winnipeg Beach Provincial Parks. Manitoba Justice administered REDI funds of $2 million for two Brandon Police Officers, one Dakota Ojibway Police Service (DOPS) officer and 23 rural RCMP members to enforce federal and provincial statutes and municipal by-laws and administered crime prevention programs in rural municipalities, cities, towns, villages, and local government districts that do not provide their own police service. Manitoba Culture, Heritage and Tourism administered REDI funds of $451.3 thousand for five strategic public information campaigns related to communicating important safety information about severe summer weather; to remind Manitobans about free provincial park access and outline many of the features of Manitoba parks; a media campaign to promote the Canadian Wheat Board and for research on rural development issues; and to sustain communications with the Canadian Wheat Board Alliance and producers during the Canadian Wheat Board (CWB) plebiscite on the future of the single desk marketing system. REDI contributed $20 thousand to the Provincial Exhibition of Manitoba towards agriculture activities at the Royal Manitoba Winter Fair. Contributed $25 thousand to Manitoba Communities in Bloom Inc. to operate and promote its community beautification program throughout Manitoba. In 2011, eleven communities participated in the provincial edition of the program with six communities competing at the national level. Provided $100 thousand to the Keystone Centre in Brandon to support the cost of hosting the Royal Red Horse Show which took place August 15 to 20, Provided assistance to Sport Manitoba of $20 thousand to enlarge the Active Start physical literacy program which provides literacy training to child care centre staff and conducts workshops with children. REDI contributed $15 thousand to the Rural Municipality of Gimli for the repair and restoration of the Gimli Viking statue. Contributed $30 thousand to the Manitoba Aboriginal Sport and Recreation Council in support of the 2011 Manitoba Indigenous Invitational Games (MIIG), held in Opaskwayak Cree Nation and Peguis First Nation. Provided $75 thousand to the Keystone Centre in Brandon to repair and repave the east side entrance ramp to ensure the safety of the facility s patrons. REDI contributed $5 thousand to the Dauphin Railway Museum towards the purchase of the original Dauphin Railway Station Clock. Objective 3: Retain and increase business activity, wealth creation and employment in rural and northern Manitoba. Facilitate 51 loans for rural economic development through $5.1 million in loan guarantees. The Rural Entrepreneur Assistance (REA) Program approved 37 loan guarantees in 2011/12 with total value of loans guaranteed of $4.3 million and creating the equivalent of 90 full time jobs. 120

147 Creation of approximately 181 new jobs in rural and northern Manitoba. REDI programs contributed to the creation of an estimated 161 new jobs in rural and northern Manitoba. Private investment of $300 thousand in two community-based enterprise development projects through personal income tax credits. The Community Enterprise Development Tax Credit program approved five community-based enterprise development projects worth $3.2 million in private investments resulting in personal income tax credits of $960 thousand. Leverage $16.0 million for capital investment in rural and northern Manitoba. REDI approved $4.6 million in capital infrastructure projects leveraging $12.5 million to enhance sustainable economic development in various communities in Manitoba. Funding of $180 thousand was provided to 27 rural Veterinary Services District clinics through the Veterinary Technical Enhancement Grant Program to upgrade equipment in rural veterinary clinics. Contributed $237.5 thousand to Winnipeg Old Country Sausage Ltd. to upgrade and expand their existing Winnipeg facility to become a federally registered meat processing facility compliant with federal meat inspection regulations, allowing the company to expand its meat exports to other provinces. Two (2) Grow Bond issues for Acrylon Plastics Inc. in Winkler are still being administered for a total of $2.5 million. The maturity dates of the two outstanding Grow Bond issues were extended to April 15, Manitoba Housing and Community Development administered REDI funds of $344 thousand for its Community Places Program which provided funding and planning assistance of $4.5 million to 328 not-for-profit groups for facility construction, upgrading, expansion or acquisition projects which offer sustainable benefits to communities. This funding is expected to have leveraged more than $39 million in community-based construction projects. Approval of 245 Hometown applications providing $450 thousand in financial support leveraging an additional $2.8 million in capital investment in rural and northern communities, to enhance the physical appearance of main street public areas, building exteriors and greening initiatives. The Hometown Manitoba Program approved 322 projects, 294 projects moved forward representing $560.5 thousand in financial support. Program funding leveraged an additional $3 million from rural communities, organizations, co-operatives and businesses, resulting in capital investment in rural and northern communities of $3.5 million. Project payments totalled $389.6 thousand for 2011/12. $3.0 million applied towards upgrades of municipal water and sewage treatment infrastructure for rural communities. REDI provided funding of $2.984 million through the Manitoba Water Services Board, to approximately 35 rural communities to develop safe and sustainable water and/or sewage treatment infrastructure. $1.165 million provided to 18 conservation districts covering over 60% of Agro-Manitoba to effectively manage the natural resources of their area. REDI contributed funding of $1.165 million through Manitoba Conservation and Water Stewardship to 18 conservation districts, which represents 154 municipal governments, for rural and northern communities to install or upgrade water and sewer services to improve environmental and economic sustainability. REDI also provides for the development of new conservation districts to undertake sustainable economic development projects in the areas of soil and water management and habitat enhancement. $155 thousand provided to 66 Manitoba communities for the operation of handy van services in rural Manitoba to enable mobility disadvantaged citizens to live more independently. 121

148 Contributed $30 thousand through the Mobility Disadvantaged Transportation Program administered by Manitoba Local Government for the cost of purchasing handi-vans for the establishment and operation of handi-van services for the rural communities of Village of St Pierre-Jolys, City of Selkirk and City of Brandon. Provided funding of $125 thousand through the Mobility Disadvantaged Transportation Program for approximately 68 sponsoring communities to support the establishment and operation of a handi-van service to enable mobility disadvantaged citizens to live more independently. $31 thousand provided to Rivers West Red River Corridor for five priority projects in the development of the Red River region as a tourism and economic development destination area. REDI contributed funding of $31 thousand to Rivers West Red River Corridor Inc. to organize community consultations and develop a three year strategic operational plan. The organization also planned and hosted Canadian Rivers Day on June 12, 2011; assisted the RM of St. Clement s develop their regional heritage website; collaborated with the St. Boniface Hospital Research Foundation on a research project aimed at linking cardiac health of women with physical activity; supported The Forks Riparian project and St. Norbert Bio-retention project; developed a bilingual stormwater management resource guide; and completed trailheads throughout the City of Winnipeg s trail system. Additional Results: REDI contributed $150 thousand to Travel Manitoba to foster development, growth and diversity in the tourism industry. Contributed $50 thousand towards the Northern Healthy Foods Initiative for projects such as the expansion of a loan-purchase program for low income families to purchase freezers, composting programming and transportation of materials and construction of solar greenhouses in communities accessible only by winter road. Objective 4: Increase entrepreneurial capacity in rural and northern Manitoba. $1.850 million provided to create meaningful and career-oriented summer employment opportunities for 800 students and youth in rural and northern Manitoba that provides a variety of community development opportunities that improve neighbourhoods, promote community involvement and help develop young leaders. Contributed $1.682 million to the Green Team Program which enabled 259 youth to work in provincial parks across the province and 536 youth employment opportunities in rural Manitoba communities. $463 thousand provided to improve the employability of 295 youth receiving income assistance or facing multiple barriers to employment; support youth who want to establish a business venture; support services for Aboriginal youth pursuing business development and for young entrepreneurs to attend a business related education program. Contributed $268.2 thousand to the Partners with Youth Program which enabled participating communities to provide valuable work experience for 331 youth involved in 15 projects across rural Manitoba. $36 thousand contributed to the Manitoba Chamber of Commerce for the Young Entrepreneurs Challenge to teach more than 300 Manitoba high school students entrepreneurial skills. REDI contributed $36 thousand to the Manitoba Chamber of Commerce under the Youth Business Institute Program for the Youth Entrepreneurs Challenge. This challenge provided over 340 Manitoba high school students with the opportunity to learn about business and practice their business skills through a computer simulated business game. 122

149 $8 thousand provided to the Fort Whyte Foundation for the Fort Whyte Farms Initiative to provide 20 youth from inner-city schools and youth-servicing agencies hands-on training and experience in agricultural projects. Contributed $8.3 thousand to the Fort Whyte Farms Initiative to work with youth from the innercity to provide experience in agricultural projects. This initiative provided approximately 250 hours of hands-on training to youth participants and employed twelve youth summer interns. 5 (g) Rural Economic Development Initiatives Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Rural Economic Development Initiatives 18,271-22,975 (4,704) 1 Total Sub-Appropriation 18,271-22,975 (4,704) 1. Rural Economic Development Initiatives provide funding for community economic development/business projects and strategic initiatives in rural and northern Manitoba. On an annual basis, costs vary mainly as a result of unanticipated client proposal and delays in project planning, implementation and/or completion. In 2011/12, lower than anticipated expenditures primarily occurred due to the delayed launch of the Manure Management Financial Assistance Program and lower expenditure requirements for programs administered by other departments. 123

150 Appropriation 6 Costs Related to Capital Assets The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: To comply with Canadian Institute of Chartered Accountants standards that requires that expenditures on tangible capital assets be amortized over the useful life of the asset. Recognizing amortization in this way allocates the cost of capital assets to the periods of service provided and amortization is recorded as an expense in the statement of operations. 2011/12 amortization expense costs were recorded in compliance with the Canadian Institute of Chartered Accountants standards by Manitoba Agriculture, Food and Rural Initiatives. Objective 2: To provide for interest costs related to capital investment decisions made by the department. Provision of financing costs for capital investment related to the department. 2011/12 interest expense was recorded in compliance with the Canadian Institute of Chartered Accountants standards by Manitoba Agriculture, Food and Rural Initiatives. 6 Costs Related to Capital Assets Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) (a) Amortization Expense (16) (b) Interest Expense (5) Total Appropriation (21) 124

151 SECTION ONE PART B CAPITAL INVESTMENT INFORMATION 125

152 Part B Capital Investment The expected results, as planned during the 2011/12 estimates process, are displayed below in italics followed by bulleted actual results. Objective 1: To provide for the acquisition of tangible capital assets needed in the Veterinary Diagnostic Services (VDS) laboratory to protect human health from zoonotic diseases and animal health from serious diseases. The department will invest $250 thousand in new laboratory equipment. During 2011/12, the department purchased $226 thousand in new laboratory equipment. Additional Results: The department incurred $3.081 million in capital investment costs related to 2011 flood programming primarily for land purchases under the Shoal Lakes Agricultural Flooding Assistance Program Part B Voluntary Buy-out program component. Additional funding of $3.063 million was allocated from 26 Capital Assets Internal Service Adjustments. Part B - Capital Investment Actual Estimate Variance Expl. Expenditures by Sub-Appropriation 2011/ /2012 Over/(Under) No. $(000s) FTEs $(000s) $(000s) Capital Investment 3,307-3,313 (6) TOTAL 3,307-3,313 (6) 126

153 SECTION TWO ADDITIONAL FINANCIAL INFORMATION AND APPENDICES 127

154 128 Appendix A: Financial Information Manitoba Agriculture, Food and Rural Initiatives Expenditure Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) Estimate Appropriation Actual Actual Increase/ Expl. 2011/ / /2011 (Decrease) No ADMINISTRATION AND FINANCE 37 (a) Minister's Salary (5) (b) Executive Support 609 (1) Salaries and Employee Benefits (2) Other Expenditures (3) Policy Studies (c) Strategic Planning Directorate 518 (1) Salaries and Employee Benefits (2) Other Expenditures (d) Financial and Administrative Services 1,075 (1) Salaries and Employee Benefits 932 1,025 (93) 385 (2) Other Expenditures ,879 Subtotal ,580 2,555 25

155 129 Appendix A: Financial Information Manitoba Agriculture, Food and Rural Initiatives Expenditure Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) Estimate Appropriation Actual Actual Increase/ Expl. 2011/ / /2011 (Decrease) No POLICY AND AGRI-ENVIRONMENT (a) Policy Analysis 1,518 (1) Salaries and Employee Benefits 1,688 1, (2) Other Expenditures (b) Knowledge Management 1,425 (1) Salaries and Employee Benefits 1,127 1,135 (8) 264 (2) Other Expenditures (33) (c) Boards, Commissions and Legislation 506 (1) Salaries and Employee Benefits (23) 203 (2) Other Expenditures (56) (d) Agri-Environment 2,117 (1) Salaries and Employee Benefits 1,611 1,683 (72) 2,254 (2) Other Expenditures 2,524 1,100 1, ,025 (3) Grant Assistance - Manure Management Financial 6,844-6,844 2 Assistance Program (e) Land Use 878 (1) Salaries and Employee Benefits (67) 834 (2) Other Expenditures (2,919) (f) Less: Recoverable from Rural Economic Development (2,347) - (2,347) 2 Initiatives 15,439 Subtotal ,465 8,541 5,924

156 130 Appendix A: Financial Information Manitoba Agriculture, Food and Rural Initiatives Expenditure Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) Estimate Appropriation Actual Actual Increase/ Expl. 2011/ / /2011 (Decrease) No RISK MANAGEMENT, CREDIT AND INCOME SUPPORT PROGRAMS (a) Manitoba Agricultural Services Corporation 10,655 (1) Administration 8,437 9,081 (644) 3 50,351 (2) AgriInsurance 38,958 41,748 (2,790) 4 1,477 (3) Wildlife Damage Compensation 1,097 1,138 (41) 412 (4) Net Interest Costs, Loan Provisions and (149) (2,385) 2,236 5 Program Incentives (b) Agricultural Income Stabilization 50,518 - Agricultural Income Stabilization 96,323 41,709 54, AgriRecovery 141, , (c) Food Industry Development ,515 (d) Farmland School Tax Rebate 36,905 33,354 3,551 8 (1,288) (e) Less: Recoverable from Rural Economic Development (1,217) (1,182) (35) Initiatives 148,199 Subtotal , , ,619

157 131 Appendix A: Financial Information Manitoba Agriculture, Food and Rural Initiatives Expenditure Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) Estimate Appropriation Actual Actual Increase/ Expl. 2011/ / /2011 (Decrease) No AGRI-INDUSTRY DEVELOPMENT AND INNOVATION (a) Livestock Industry 4,864 (1) Salaries and Employee Benefits 4,999 5,207 (208) 1,771 (2) Other Expenditures 1,523 1,574 (51) 675 (3) Grant Assistance (143) (b) Chief Veterinary Office/Food Safety 2,468 (1) Salaries and Employee Benefits 2,301 2,507 (206) 2,278 (2) Other Expenditures 2,298 1, (c) Crop Industry 2,372 (1) Salaries and Employee Benefits 2,463 2, (2) Other Expenditures (58) (d) Agri-Food Innovation and Adaptation 1,382 (1) Salaries and Employee Benefits 1,316 1, (2) Other Expenditures ,465 (3) Grant Assistance 1,465 1, ,000 (e) Agricultural Sustainability Initiative (180) (f) Less: Recoverable from Rural Economic Development (180) (180) - Initiatives 19,519 Subtotal ,961 18,

158 132 Appendix A: Financial Information Manitoba Agriculture, Food and Rural Initiatives Expenditure Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) Estimate Appropriation Actual Actual Increase/ Expl. 2011/ / /2011 (Decrease) No AGRI-FOOD AND RURAL DEVELOPMENT (a) Growing Opportunities Centres 10,809 (1) Salaries and Employee Benefits 9,648 10,096 (448) 3,742 (2) Other Expenditures 3,253 3, (b) Economy and Rural Development 1,894 (1) Salaries and Employee Benefits 1,547 1,578 (31) 743 (2) Other Expenditures (101) 866 (3) Grant Assistance 866 1,590 (724) 11 2,245 (c) Food Development Centre 2,245 2,245 - (d) Food Commercialization and Marketing 782 (1) Salaries and Employee Benefits (2) Other Expenditures (69) 1,015 (e) Infrastructure Development Grants 238 1,000 (762) 12 (2,258) (f) Less: Recoverable from Rural Economic Development (1,869) (2,109) 240 Initiatives 22,975 (g) Rural Economic Development Initiatives 18,271 19,581 (1,310) 43,306 Subtotal ,295 38,194 (2,899) 03-6 COSTS RELATED TO CAPITAL ASSETS 421 (a) Amortization Expense (c) Interest Expense (2) 508 Subtotal TOTAL: DEPARTMENT OF AGRICULTURE, FOOD 229,850 AND RURAL INITIATIVES 394, , ,021

159 133 Appendix A: Financial Information Manitoba Agriculture, Food and Rural Initiatives Expenditure Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) Explanations: 1. The increase primarily reflects increased activity for the Manitoba Sustainable Agricultural Practices Program (MSAPP) in 2011/ This increase is primarily due to the launch of the Manure Management Financial Assistance Program (MMFAP) in 2011/12, which is partially recovered from the Rural Economic Development Initiatives (REDI) program. 3. The decrease is mainly the result of the unanticipated allocation of administration costs to emergency programs relating to the 2011 flood and decreased regular program costs due to a high level of emergency program activity. 4. The decrease is primarily the result of a combination of fewer acres being seeded in 2011/12 due to excess moisture, partially offset by 2011/12 increases for crop prices, premium rates, probable yields and producer coverage level selections. 5. The increase is mainly due to the increase of specific loan provisions required for the Manitoba Hog Assistance Loan Program, partially offset by an increase in net interest revenue due to higher loan activity, a decrease in the provision required for the BSE Recovery Loans Program, and other loan programs due to improvement in the beef sector and insurance set-offs. 6. On an annual basis, Agricultural Income Stabilization expenses can vary significantly as a result of global economic and local weather conditions experienced, which impact farm income. Total costs recorded in 2011/12 were $96,323, including $75,984 for AgriStability and $20,339 for AgriInvest compared to total costs recorded in 2010/11 of $41,709, including $25,427 for AgriStability and $16,282 for AgriInvest. 7. Manitoba farmers experienced significant setbacks in 2011 due to excess moisture and flooding. The 2011 Manitoba AgriRecovery Program mitigated the impacts of this disaster by providing financial assistance to farmers for the restoration and maintenance of their operations through 2011, and for the rehabilitation of their farms in time for the 2012 crop year. AgriRecovery flood programs were jointly delivered by MAFRI and MASC with total program costs estimated at $141.4 million. In addition, a further $0.2 million in fin ancial assistance was provided under the AgriRecovery program to turkey producers to offset their remediation costs following the November 2010 outbreak of avian influenza. 8. The variance is mainly due to the 2011/12 increase in the rebate level from 75% to 80%, increased participation in the program and a slight increase in farmland school tax levies compared to 2010/ The increase is primarily the result of higher client participation in food safety programs in 2011/ The increase is mainly due to the implementation of the Manitoba Biomass Energy Support Program, which provided an incentive to support biomass consumers looking to switch from fossil fuels to biomass energy and a capital incentive to support the necessary infrastructure upgrades to manufacture or consume biomass fuel.

160 134 Appendix A: Financial Information Manitoba Agriculture, Food and Rural Initiatives Expenditure Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) 11. The decrease from the prior year primarily relates to one-time grant assistance to the University of Manitoba, Faculty of Human Ecology Centenary Legacy Fund for student scholarships and a contribution to the Winnipeg River Community Adjustment Corporation in 2010/11 as well as ending of support for feasibility studies, which was re-profiled in 2011/12 as Commercialization Support for Business under the Department of Entrepreneurship, Training and Trade. 12. The decrease from prior year is the result of a 2010/11 contribution to the Town of Grand Rapids for the construction of a new integrated municipal water and sewer system partially offset by a 2011/12 contribution to Winnipeg Old Country Sausage to upgrade and expand its existing Winnipeg facility to meet federal standards for the interprovincial trade of meat products.

161 Appendix B Manitoba Agriculture, Food and Rural Initiatives Reconciliation Statements Part A - Operating DETAILS 2011/2012 ESTIMATES $(000's) 2011/2012 MAIN ESTIMATES - PART A 228,299 MAIN ESTIMATES AUTHORITY TRANSFERRED FROM : Enabling Appropriations Canada - Manitoba Enabling Vote 1,500 Internal Service Adjustments 155 MAIN ESTIMATES AUTHORITY TRANSFERRED TO : Children and Youth Opportunities (104) 2011/2012 ESTIMATE 229,850 Part B - Capital Investment DETAILS 2011/2012 ESTIMATES $(000's) 2011/2012 MAIN ESTIMATES - PART B 250 MAIN ESTIMATES AUTHORITY TRANSFERRED FROM : Enabling Appropriations Internal Service Adjustments 3, /2012 ESTIMATE 3,

162 136 Appendix C Manitoba Agriculture, Food and Rural Initiatives Distribution by Main Appropriation 2011/2012 Expenditures Risk Management, Credit and Income Support Progams 81.7% Agri-Industry Development and Innovation 4.8% Agri-Food and Rural Development 9.0% Administration and Finance 0.7% Costs Related to Capital Assets 0.1% Policy and Agri-Environment 3.7%

163 137

164 138 Appendix E Manitoba Agriculture, Food and Rural Initiatives Revenue Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) Actual Actual Increase/ Expl. Actual Estimate Increase/ Expl. 2011/ /11 (Decrease) No. 2011/ /12 (Decrease) No. CURRENT OPERATING PROGRAMS: Government of Canada: - 76 (76) 1 Animal Health Surveillance - 65 (65) Rabies Indemnity - 2 (2) - (127) Specified Risk Material Program Agri-Recovery - Agricultural Income Stabilization Agri-Recovery - Avian Influenza ,210-72,210 5 Agri-Recovery Excess Moisture Programs 72,210-72, (161) 6 Agri-Recovery - Forage Transportation/Livestock Feed Assistance , Growing Forward - Food Safety Initiative 1,314 1,328 (14) Growing Forward - Soil Survey Program ,844-4,844 8 Agri-Flexibility - Manure Management Financial Assistance 4,844 6,573 (1,729) Agri-Flexibility - Bifrost Excess Water Management Initiative Agri-Flexibility - National Meat Hygiene Pilot Program ,536 1,545 77,991 Sub-Total 79,536 8,492 71,044 Other Revenue: 2,636 2,883 (247) (a) Fees 2,636 3,147 (511) (b) Sundry ,800 2,973 (173) Sub-Total 2,800 3,194 (394) 82,336 4,518 77,818 Total Department Revenue 82,336 11,686 70,650

165 139 Appendix E Manitoba Agriculture, Food and Rural Initiatives Revenue Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) Explanations: 1. The decrease represents the end of the agreement in 2010/11 with Canada to offset salary expenditures for a Quality Assurance Officer. This was a three year agreement with recoveries started in 2008/ The department was advised that a portion of the Specified Risk Material 2008/09 and 2009/10 program claims submitted were disallowed, resulting in a reduction in Government of Canada revenue in 2010/11. This program ended in 2010/ The variance represents an increased recovery of Agricultural Income Stabilization administration expenditures in 2011/12 mainly resulting from prior year adjustments. 4. The increase relates to the one-time recovery of Canada s share of financial assistance provided to turkey producers to recoup remediation costs following the November 2010 outbreak of avian influenza. 5. The province expects to receive a total of $72.2M in revenue from Canada to partially offset expenses incurred for 2011 Excess Moisture programs. The Province and Canada have signed contribution agreements to cost-share the Excess Moisture/Unseeded Acres, Forage Shortfall Assistance, Transportation Assistance and Forage Restoration components of the program. 6. The Province delivered a Forage Transportation and Livestock Feed Assistance Program in 2010/11, which resulted in $161 in revenue from Canada to offset departmental administration expenses. 7. The increase in revenue corresponds to an increase in expenditures mainly due to increased program uptake by food processors, which are 100% offset by revenue. 8. The increase represents the 2011/12 implementation of the Manure Management Financial Assistance Program, which provides dire ct grant support as well as access to Manitoba Agricultural Services Corporation loans to hog producers for manure storage and/or treatme nt facility infrastructure. 9. The variance represents a 60% recovery of eligible costs associated with the Bifrost Excess Water Management Initiative to address drainage issues in the RM of Bifrost from the federal government. 10. The increase reflects Canada s portion of costs in 2011/12 associated with the National Meat Hygiene Pilot Programs, which provided $238 in grant assistance to Winnipeg Old Country Sausage to upgrade and expand its Winnipeg facility to meet federal standards for interprovincial trade of meat products. 11. The increase is mainly due to an unanticipated salary recovery for a departmental employee in an Interchange program with the federal government.

166 140 Appendix E Manitoba Agriculture, Food and Rural Initiatives Revenue Summary for the fiscal year ended March 31, 2012 with comparative figures for the previous fiscal year ($000s) 12. The decrease represents a lower than anticipated of uptake of manure treatment projects by hog producers in 2011/12, for which expenses are cost-shared with Canada. 13. The increase is mainly due to an unanticipated 2011/12 salary recovery for a departmental employee in an Interchange program with the federal government as well revenue related to chattel improvement sold to incoming lessees of Crown Lands.

167 141