Ag spending cut more than $300 million

Friday, March 30, 2012

Headline change see correction and clarification below

by BETTER FARMING STAFF
 
The federal government’s agriculture and agri-food portfolio will see its overall budget cut by $17.1 million in the 2012/2013 fiscal year, $168.5 million the following year and $309.7 million by 2014/2015. The federal ministry will be expected to achieve the savings through efficiencies and sharing resources in administrative activities such as human resources, financial services, real property maintenance, and information technology. Collaborations and sharing office space will integrate the ministry and the Canadian Food Inspection Agency’s scientific research capacity and make it “easier for farmers and industry to get the information on technological advances they need to succeed,” the budget document states. Agriculture and Agri-Food Canada also plans to consolidate the delivery of grants and contribution programs and “streamline management of the Farm Debt Mediation Service.”
 
A one-stop-shop approach for those applying for CFIA permits, licenses and registration is in the works. The agency plans to take the same approach to handle requests for advice. A web-based label verification process will replace the current approach the agency uses to police non-health and safety food labelling regulations; some container standards will be repealed to make the way for new approaches to packaging and make it easier to import “new products from international markets,” the budget says.
 
The Canadian Grain Commission, on the other hand, will receive $44 million over two years to help it make the transition to a “sustainable funding model.” The government has also earmarked $51.2 million over two years to improve the country’s food safety system.
 
Other points of note include:

• A two-year, $150 million community infrastructure improvement fund will address aging community facilities.
• A $63 million, three-year program intended to improve rural access to broadband networks wraps up in 2013 with an auction of spectrum bands in the range of 700 MHz to 2,500 MHz. Companies buying more than one block will be required to provide advanced service to 97 per cent of the those in their coverage area within seven years.
• A hiring credit for small business to hire more workers will be extended one year.

Better Farming will provide feedback on the budget tomorrow when local farm leaders will be available for comment. BF

Correction and clarification

The headline on this story has been changed to reflect the cumulative amount of savings from Canada's Agricultural and Agri-Food Portfolio. Better Farming regrets the error.

According to ministry staff, cuts over three years from the portfolio's budget will represent a savings of $309.7 million or 10 per cent when compared to the review base starting point - direct program spending in 2011/2012 - of $3.092 billion.

Agriculture and Agri-Food Canada portfolio planned savings (in millions of dollars):

2012-13           2013-14           2014-15           Ongoing        
 17.1                 168.5               309.7               309.7