WORLD TRADE  
ORGANIZATION  G/AG/N/CAN/64 
20 October 2006 
 (06-5088) 
Committee on Agriculture Original:   English/ 
 French 
 
 
 
NOTIFICATION 
  
 The following submission, dated 4 October 2006, is being circulated at the request of the Delegation of Canada .  The notification concerns new or m odified domestic suppor t measures exempt 
from reduction ( Table DS:2 ). 
_______________ 
 
 Canada began the implementation of a compre hensive, integrated agricultural policy in 
December 2003 under the Agricultural Policy Framework (APF).  The objectives of the APF are to 
help the agriculture sector to evolve in the f ace of new challenges it will confront in the 21
st century 
and an ever-shifting business climate.  These challe nges vary from consumer demands related to food 
safety, food quality and environmental practices; globalization of markets; rapid technological changes as well as the inherent risks associated with  agriculture.  The APF is composed of five 
components:  Food Safety and Quality; the E nvironment; Science and Innovation; Renewal; and 
Business Risk Management.  Many existing initia tives by the federal and provincial governments 
have been incorporated under the APF.  However,  there are several new initiatives being provided by 
the federal and provincial governments in the five component areas.  The following notification provides information on new programs under the APF that meet the criteria under Annex 2 of the 
Agreement on Agriculture. 
 G/AG/N/CAN/64 
Page 2  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
 
(1) Full title of measure: 
 
Initiatives under the Food Safety and Quality (FSQ) component of the Agricultural Policy 
Framework 
 
(2) Domestic legislation reference:  
 
 Department of Agriculture and Agri-Food Act , Section 4 
 
(3) Detailed description of measure with reference to criteria:  
 
The objective of the Food Safety and Quality co mponent is to enhance national, integrated 
agriculture and agri-food safety and quality po licies and programs.  This will be accomplished 
by building on existing food safety and quality measures and undertaking new measures to 
enable the tracing of food products along the food production chain.   
 
Canadian Food Safety and Quality Program (CFSQP)  (Annex 2, paragraph 2(e)) - the 
objective is to develop and implement govern ment-recognized food safety and quality control 
systems throughout the food chain and the underlying traceability systems.  Eligible 
participants are national and re gional non-profit organizations that are involved directly or 
indirectly in producing, marketing, distributi ng or preparing food.  Funding is available to 
reimburse a portion of the project costs, up to a certain maximum.  The total estimated cost of 
the program is $142 million over five years (FY2003/04 - 2007/08). 
 
National Animal Tracking and Tracing System  (Annex 2, paragraph 2(a), (b), (e)) - the 
objective is to develop and implement compre hensive national livestock tracking and tracing 
systems for all species.  The total estimated cost of the program is $2 million over 5 years 
(FY2003/04 - 2007/08).    
 
New Brunswick Agri-Food Safety Initiative  (Annex 2, paragraph 2(c), (e)) - the objective 
of the program is to facilitate the adoption and implementation of recognized food safety and 
traceability programs in the production, processing and distribution of agri-food products in 
the province of New Brunswick.  Activities incl ude coordination, coun selling and pre-audit 
evaluation of food safety plans.  The total estimated cost of the program is $1 million over six 
years (FY2003/04 - 2008/09).  
 
Nova Scotia Regulatory Compliance Food and Farm Safety  (Annex 2, paragraph 2 (a), 
(c), (e)) - the objective is to ensure the co mpliance with food and farm safety systems  in the 
province of Nova Scotia.  Activities include: training; certification; human resource 
programming and development; and research and de velopment.  The program is available on 
an annual basis, subject to approval of the  provincial budget.  The total estimated cost of the 
program is $360,000 over 5 years (FY 2003/04 - 2007/08). 
  G/AG/N/CAN/64 
 Page 3 
 
 
  All of these components conform with the genera l criteria under Annex 2, paragraph 1 of the 
Agreement on Agriculture and the policy specific criteria under various sub-components of 
Paragraph 2 (General Services).  The support is being provided thro ugh publicly funded 
government programs not involving transfers from consumers and does not have the effect of 
providing price support to producers.  Support is for research; pest and disease control; 
training; or inspection.  Expenditures do not involve direct payments to producers or 
processors. 
 
(4) Cost of measure:  
 
See above. 
 
(5) Date of entry into effect: 
 
December 2003 
 
(6) Period of application:  
 
See above 
 
(7) Products to principally benefit (if any individual product(s)): 
 
Any product. G/AG/N/CAN/64 
Page 4  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
 
(1) Full title of measure: 
 
Initiatives under the Environment component  of the Agricultural Policy Framework 
 
(2) Domestic legislation reference:  
 
Department of Agriculture and Agri-Food Act , Section 4 
 
(3) Detailed description of measure with reference to criteria:  
 
The objective of various initiatives by the fe deral and provincial governments under the 
environmental component of the Agricultural Policy Framework is to enhance the sector's 
environmental performance through the developm ent of agri-environmental farm plans and 
accelerated adoption of sound environmental practi ces that will help achieve measurable and 
meaningful environmental goals in the areas of wate r, air and soil quality, and bio-diversity.   
 
National Environmental Farm Planning  (Annex 2, paragraph 2(c)) - the objective is to 
foster the development of agri-environmental farm plans (EFP) to identify and mitigate all 
actual and potential environmental risks.  The EFP process allows farm families to assess the 
environmental risks and benefits of their ope ration and develop an action plan that set 
priorities which address on-farm environmental concerns as well as those which serve the 
public interest.   The primary method to develop an EFP involves producers completing their 
risk assessment using  a workbook.  This program provides the service of supplying 
workbooks, supporting materials and expertise (e ither one-on-one or in a group-facilitated 
consultative workshops) to assist producers in cr eating an EFP.  There are no direct payments 
to producers or processors.  The total estimated cost of the program is $73.5  million over 5 
years (FY2003/04 - 2007/08). 
 
National Farm Stewardship Program (B eneficial Farm Management Practices)  
(Annex 2, paragraph 12) - the objective is to help accelerate of the adoption of Beneficial 
Management Practices (e.g. improved manure stor age and handling, farmyard runoff control, 
water well management, species at risk) by provi ding technical assistance and cost-sharing 
their implementation.  Producers , with a reviewed environmental farm plan, are eligible to 
apply to the program, and must implement  the Beneficial Management Practice (BMP) 
according to specific standards, before receiving a payment.  The amount of the payments is 
limited to no more than 30 or 50% of the ex tra costs involved in implementing eligible 
Beneficial Management Practices , up to a prescribed maximum, based on BMP type.  The 
total estimated cost of the program is $181 million over 5 years (FY2003/04 - 2007/08). 
 
Greencover Canada  - the objective is to improve grassland-management practices, protect 
water quality, reduce greenhouse-gas emissions, and enhance biodiversity and wildlife 
habitat.  The program consists of four components:  Land Conversion, Critical Areas, 
Shelterbelts and Technical Assistance.  Th e Land Conversion compone nt provides financial 
assistance to offset a portion of the cost of converting environmentally sensitive annual  crop  G/AG/N/CAN/64 
 Page 5 
 
 
  land to perennial cover ($20-$75/acre) and to provide a one-time incentive to enter into a 
long-term land use agreement ($25/acre) (A nnex 2, paragraph 12).  The Critical Area 
component provides financial assistance (i.e. 50% of the cost, up to a maximum amount) to 
support the implementation of beneficial management practices to mitigate the impact of 
agriculture contaminants and maintain or im prove water quality, biodiversity and overall 
riparian (waterway) health (Annex 2, paragra ph 12).  The Shelterbelt component provides 
financial assistance for the use of trees and shrubs for non-forestry purposes on agricultural 
lands.   The program covers 50% of the costs of  buying/planting trees, up to a certain 
maximum (Annex 2, paragraph 12).  The Technical Assistance component focuses on 
ensuring that information for the purpose of adopting Beneficial Management Practices is 
disseminated to producers through industry gr oups, non-governmental organizations and 
environmental groups (Annex 2, pa ragraph 2(d)).  The total estimated cost of all of the 
components under the program is $110 million over 5 years (FY2003/04 - 2007/08).   
 
National Agricultural Environment Health and Reporting Program (NAHARP) 
(Annex 2, paragraph 2(a)) - is a research program with the objective to develop science-based 
agri-environmental indicators; assess progress in  adopting environmentally-sound practices; 
conduct environmental analysis of policies and programs in agriculture; and develop 
approaches to express environmental impacts in ec onomic terms.  The total estimated cost of 
the program is $16 million over 5 years (FY2003/04 - 2007/08). 
 
National Land and Water Information Service (NLWIS)  (Annex 2, paragraph 2(a), (d)) - 
the objective is to develop an Internet-based da tabase with relevant land and water data.  
NLWIS facilitates the transfer of information and the results of research to producers, 
governments, consumers, and also to land manage ment decision makers in general.  The total 
estimated cost of the program is $100 milli on over 5 years (FY2003/04 - 2007/08).  
 
Information Gaps in Water Qualit y and Nutrients (GAPS) Program  (Annex 2, 
paragraph 2(a), (d)) - the objective is to redu ce the risk to water from livestock and crop 
productions systems by researching and dissemi nating knowledge for the safe and efficient 
agronomic use of animal manures and nutrients .  GAPS will accelerate the development of 
the next generation of beneficial management practices and foster the adoption of alternative 
management practices, which will reduce the risk s to the environment and health.  The total 
estimated cost of the program is $8 million over 5 years (FY2003/04 - 2007/08) 
 
Pesticide Risk Reduction (PRR) Program  (Annex 2, paragraph 2(a), (d)) - the objective is 
to reduce the risks to the environment from p esticides used in agriculture.  Under the PRR 
program, governments and industry research and di sseminate information on priority crops to 
identify gaps in the range of pest management  products available.  The PRR also supports 
research to implement  risk reduction strategies for commodities  and track changes in the use 
of products and practices by growers.   The total estimated cost of the program is $59 million 
over 5 years (FY2003/04 - 2007/08) 
 
National Water Supply Expansion Program  (Annex 2, paragraph 2(g)) - the objective of 
the National Water Supply Expansion Program is to ensure that the agriculture and rural 
sector has access to a secure, good quality wate r supply to meet its existing and growing 
needs and to reduce the risk of future wate r management challenges through the planning and 
development of suitable and secure water supplies.  The total estimated cost of the program is 
$60 million over 5 years (FY2003/04 - 2007/08). 
 
Environment Technology Assessm ent for Agriculture (ETAA)  (Annex 2, paragraph 2(a), 
(d)) - the objective is to evaluate the pe rformance of innovated technologies of food G/AG/N/CAN/64 
Page 6  
 
  production to improve the long-term economic and  environmental performance of the sector.  
Innovative technologies will contribute to improve on-farm economics by increasing input 
use efficiency and developing new bioproducts .  Environmental improvement results from 
reducing the risk of natural resource dete rioration from excess nutrients, chemical and 
biological agents, ammonia and greenhouse g as emissions, and odours, and by encouraging 
the use of renewable energy technologies.  The ETAA will assess innovative environmental 
technologies that maintain and enhance the h ealth of natural resources associated with 
agricultural production; and share information on environmental technologies with 
stakeholders.  The total estimated cost of the program is $6.1 million over 5 years 
(FY2003/04 - 2007/08). 
 
Environment Certification  (Annex 2, paragraph 2(a), (d)) - The Environment Certification 
program will provide a framework within 4 years for environmental farm certification 
through researching and examining existing tool s, including regulations, standards, best 
practices and codes of practice and developing a dditional tools, where appropriate.  The total 
estimated cost of the program is $6 million over 5 years (FY2003/04 - 2007/08). 
 
Water Quality Surveillance  (Annex 2, paragraph 2(a)) - the objective is to develop a better 
understanding of the impact of agriculture  on the prevalence, levels and sources of 
microbiological pathogens at drinking water s upply intake points and recreational beaches, 
and to work toward understanding the effects of beneficial management practices on the 
occurrence of these pathogens.  The focus is on  using microbial sources tracking (MST) 
methods to evaluate the origin of fecal indi cator bacteria and pathogens that could cause 
human waterborne illness.  The total estimated cost of the program is $5 million over 5 years 
(FY2003/04 - 2007/08). 
 
Agri-environmental Standards  B (Annex 2, paragraph 2(a)) - the objectives are to assess 
relative risk, priorities and partnerships for de veloping performance standards in key outcome 
areas of soil, water, air and biodiversity ; and, develop national agri-environmental 
performance standards.  The total estimated cost of the program is $25 million over 5 years 
(FY2003/04 - 2007/08). 
 
All of these programs conform with the genera l criteria under Annex 2,  paragraph 1 and the 
policy specific criteria under Environmental Programmes (paragraph 12) or various sub-
paragraphs of the General Servi ces category (paragraphs 2(a), (c),  (d) and (g)).  The support is 
being provided through publicly funded government programs not involving transfers from 
consumers and does not have the effect of pr oviding price support to producers.  Support is 
for research, training, extension and infrastructure under the General Services programs and 
does not provide direct payments to producers.  Support under Environmental Programs 
(paragraph 12) compensates for incremental co sts of fulfilling environmental requirements. 
 
(4) Cost of measure:  
 
See above 
 
(5) Date of entry into effect: 
 
December 2003 
 
(6) Period of application:  
 
Five years (FY2003/04 - 2007/08)  G/AG/N/CAN/64 
 Page 7 
 
 
   
(7) Products to principally benefit (if any individual product(s)): 
 
Any product. G/AG/N/CAN/64 
Page 8  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
 
(1) Full title of measure: 
 
Science and Innovation component under the Agricultural Policy Framework 
 
(2) Domestic legislation reference:  
 
 Department of Agriculture and Agri-Food Act , Section 4 
 
(3) Detailed description of measure with reference to criteria:  
 
The objective of the Science and Innovation component  is to realign current research with the 
major elements of the Agricultural Policy Fr amework for food safety, the environment and 
adaptation to other challenges of the 21st century.  Assistance will be provided to help with 
the establishment of centres of innovation, business mentoring and pilot processing; the 
integration of the agriculture bi o-products sector across scientific disciplines; research project 
initiatives; facilities and systems and research planning; and stronger co-ordination among 
governments, universities and industry to bring technology to market.  
 
Agri-Innovation Program  (Annex 2, paragraph 2(a), (d)) - the objective is to enhance the 
adoption of innovation and commercialization in  the agri-food sector by providing funding 
for centres of innovation, business mentoring, pilot processing, agricultural bio-products 
integration, and the realignment incentives for research.  The total estimated cost of the 
program is $24 million over 5 years (FY2003/04 - 2007/08). 
 
Broker Program (Annex 2, paragraph 2(d)) - this progr am provides funding for a number of 
'broker' organizations working between industr y, government and universities to accelerate 
the adoption of innovation.  The total estimated cost of the program is $8 million over 5 years 
(FY2003/04 - 2007/08). 
 
These components conform with the general criteria under Annex 2, paragraph 1 and the 
policy specific criteria under various sub-component s of Paragraph 2 (General Services).  The 
support is being provided through publicly funded government programs not involving 
transfers from consumers and does not have the effect of providing price support to 
producers. Support is for research and extension.  There are no direct payments to producers 
or processors. 
 
(4) Cost of measure:  
 
See above 
 
(5) Date of entry into effect: 
 
December  2003 
  G/AG/N/CAN/64 
 Page 9 
 
 
  (6) Period of application:  
 
Five years (FY2003/04 - 2007/08) 
 
(7) Products to principally benefit (if any individual product(s)): 
 
Any product 
 G/AG/N/CAN/64 
Page 10  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
(1) Full title of measure: 
 
The Renewal component under the Agricultural Policy Framework 
 
(2) Domestic legislation reference:  
 
Department of Agriculture and Agri-Food Act , Section 4 
 
(3) Detailed description of measure with reference to criteria:  
 
The objective of the renewal component is to he lp farmers have access to advisory services, 
training, skills, knowledge, and tools to help th em make well-informed management decisions 
and to succeed in farming.   
 
Canadian Farm Business Advisory Services  (Annex 2, paragraph 2(c), (d)) - the objective 
of the program is to provide farmers with a range of advisory services to help them set and 
develop goals for their business.  The Farm Bu siness Assessment provides eligible producers 
with 5 days' worth of consultative services fro m which a Financial Assessment and an Action 
Plan may be developed.  Specialized Business Planning Services (SBPS) and Planning and 
Assessment for Value-Added Enterprises (PAVE) provide assistance for services of business 
planning professionals to develop specialized businesses (e.g., diversification, marketing, 
human resources, succession plans, value-added en terprises).  The total estimated cost of the 
program is $100 million over 5 years (FY2003/04 - 2007/08). 
 
Canadian Agricultural Skills Services (CASS)  (Annex 2, paragraph 2(c)) - the objective of 
the program is to help farmers and their spouses improve their family income through 
improved farm practices or through increased o ff-farm income.  Assistance will be provided 
to access training in areas such as: improved farm practices; business management; 
accounting; finance; human resource managemen t; training for other employment; and skills 
for starting a new business.  Financial support such as tuition fees for courses, living 
allowances, travel and accommodation woul d be provided for eligible clients .  The total 
estimated cost of the program is $63 million over 5 years (FY2003/04 - 2007/08). 
 
Skills and Learning Initiative  (Annex 2, paragraph 2(c)) - the objective of the program is to 
provide support to organizations involved in producer skills deve lopment to enhance the skills 
in the industry.  This initiative focuses on leveraging partnershi ps between government, 
public institutions and private sector firms,  including media entities, engaged in skills 
transfer.  The total estimated cost of the program is $4 million over 5 years (FY2003/04 - 
2007/08). 
 
Provincial Development Initiatives  (Annex 2, paragraph 2(c)) - the objective is to provide 
for learning opportunities through participa tion at workshops, semin ars, conferences, 
apprenticeships; the publication and dissemina tion of information related to business 
development; and access to technical experts.   The total estimated cost of provincial 
development initiatives is $15 million over 5 years (FY2003/04 - 2007/08).  G/AG/N/CAN/64 
 Page 11 
 
 
   
These programs conform with the general criteri a under Annex 2, paragraph 1 and the policy 
specific criteria under various sub-components of Paragraph 2 (General Services).  The 
support is being provided through publicly funded government programs not involving 
transfers from consumers and does not have the effect of providing price support to 
producers.  Support is for training; and, extens ion and advisory services.  There are no direct 
payments to producers or processors. 
 
(4) Cost of measure:  
 
See above 
 
(5) Date of entry into effect: 
 
December 2003 
 
(6) Period of application :  
 
Five years (FY2003/04 - 2007/08) 
 
(7) Products to principally benefit (if any individual product(s)): 
 
All producers, regardless of the products that they produce.  G/AG/N/CAN/64 
Page 12  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
 
(1) Full title of measure: 
 
Income Disaster Component of the Canadian  Agricultural Income Stabilization (CAIS) 
Program 
 
(2) Domestic legislation reference:  
 
The Farm Income Protection Act, Section 4(1) (federal author ity) and relevant provincial 
authorities.  
 
(3) Detailed description of measure with reference to criteria:  
 
The Income Disaster Component of the Canadi an Agricultural Income Stabilization Program 
(CAIS) compensates producers for dramatic inco me losses (i.e., greater than 30%).  It 
succeeds the Canadian Farm Income Program (G/AG/N/CAN/40). 
 
To be eligible to participate in CAIS, producer s must have filed an income tax return, have 
been actively farming for at least six consecu tive months, and have completed one production 
cycle.  CAIS operates on a whole-farm margin basis, i.e., based on the margin of all 
commodities on the farm.  The margin is calcula ted as the difference between total eligible 
sales and other revenues minus expenses dir ectly related to production (e.g., commodity 
purchases, seed, fertilizer, pesticides, veterinary  expenses).  Payments are triggered when a 
producer's margin in the claim year declines by more than 30% of the average margin of the 
preceding five years, excluding the highest year  and the lowest year.  In no case will the 
government compensation exceed 70% of this loss.   
 
The income disaster component of CAIS confor ms with the general criteria under Annex 2, 
paragraph 1.  The support is being provided through a publicly  funded government program 
not involving transfers from consumers and does not have the effect of providing price 
support to producers.  In addition, it meets th e policy specific criteria under Income Insurance 
and Income Safety-Net Programmes (paragraph 7) .  Any producer is eligible for a payment 
when their current margin declines by more than  30% in comparison to their historic margin.  
The amount of the payment is based on the loss of income (which is based on all activities of 
the farm), therefore the amount of the payment is not related to prices, production or factors 
of production employed. 
 
(4) Cost of measure:  
 
The cost will fluctuate depending on income  declines of agricultural producers.   
 
(5) Date of entry into effect: 
 
Stabilization Year 2003 
  G/AG/N/CAN/64 
 Page 13 
 
 
  (6) Period of application:  
 
On-going 
 
(7) Products to principally benefit (if any individual product(s)): 
 
Any products. G/AG/N/CAN/64 
Page 14  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
 
(1) Full title of measure: 
 
Risk Management Funding  
 
(2) Domestic legislation reference:  
 
The Farm Income Protection Act , Section 12(5) (for the federal government).  There are no 
domestic legislation references for the provinc ial programs in Ontario and Nova Scotia. 
 
(3) Detailed description of measure with reference to criteria:  
 
Risk Management Funding provided a decoupl ed income payment to all agricultural 
producers.  To be eligible, the producer had to  have reported farm income for tax purposes in 
2002.  The payment was based on a percentage of  the producer’s five-year average historic 
eligible net sales (1998-2002).  The percentage was determined by dividing the total funding 
available by total average eligible net sales.  E ligible net sales were de fined as total sales of 
all eligible commodities minus total purchases of all eligible commodities.  RMF was a 
federal program.  The provinces of Ontario a nd Nova Scotia also provided a decoupled 
income payment that was based on the iden tical criteria as the federal program.   
 
The payments conform with the general criteri a under Annex 2, paragraph 1 and the policy 
specific criteria under decoupled income support (paragraph 6).  The support is being 
provided through a publicly funded government program not involving transfers from 
consumers; and does not have the effect of pr oviding price support to producers.  Eligibility 
for a payment was based on clearly defined crite ria (i.e., whether the producer reported farm 
income in 2002 for tax purposes) in a fixed a nd defined base period (i.e. 2002).  The amount 
of the payment was based on a percentage of the pr oducer's five year historic eligible net sales 
(1998-2002) and was not based on the type or volume of production, prices or factors of 
production employed in any year after the base period. 
 
(4) Cost of measure:  
 
Federal - $600 million 
Ontario - $65.1million 
Nova Scotia - $2.6 million 
 
(5) Date of entry into effect: 
 
September 2003 
 
(6) Period of application:  
 
FY 2003/04 
  G/AG/N/CAN/64 
 Page 15 
 
 
  (7) Products to principally benefit (if any individual product(s)): 
 
Any products 
 
 
__________