Business Plan

Business Plan

2019?20

Department of Agriculture

? Crown copyright, Province of Nova Scotia, 2019

Budget 2019-20: Business Plan March 2019

ISBN: 978-1-55457-936-5

Department of Agriculture Business Plan 2019 - 2020

Contents

Minister's Message...........................................................................................................................................3 Mandate ..............................................................................................................................................................4 Department Priorities .......................................................................................................................................4 Core Functions ..................................................................................................................................................7 Departmental Expenses Summary............................................................................................................. 10

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Department of Agriculture Business Plan 2019 - 2020

Minister's Message

We have made it a priority to help grow this sector through innovation and developing new market opportunities so that we can grow the value of our agricultural exports and our farms.

Agri-food products are the third largest export category in Nova Scotia, accounting for 7% of the province's exports in 2017. In the same year, we exported $314 million in agri-food products to 78 countries. We want our high-quality Nova Scotia grown and made products to be found on the tables around the world. That is what is going to lead to the creation of even more jobs and stronger rural communities.

Our wine industry is the fastest growing wine industry in Canada and remains a priority for government because of its enormous growth potential that will lead to a significant amount of good paying jobs for our young Nova Scotians.

Last April, the provincial and federal governments launched the Canadian Agricultural Partnership program, a five-year, $3 billion investment aimed at supporting sustainable growth of our agriculture and agri-food sectors on a 60-40 cost-shared basis.

For us, that means $37 million will be invested through provincially delivered programs that focus on the following priorities: markets and trade; science, research and innovation; environmental sustainability and climate change; risk management; value added agriculture and agri-food processing; and public trust.

The Small Farm Acceleration program is a new, innovative program available under the CAP program. The two-phase program provides support to help small farms with an income lower than $60,000 grow into commercial status.

Our province's food supply is also dependent on the success of our industry. To have a secure food supply, we need a strong agriculture sector. Educating Nova Scotians about the importance of buying locally grown and produced products is very important to our success. Buying local, quality grown and made products benefits not only our producers, but also our communities. Through Select Nova Scotia, we continue to raise awareness of our local foods and the importance of buying local. And it's working.

The agricultural sector is the backbone of rural communities all around the province. We look forward to working with our partners in industry to see this sector continue to grow and provide jobs and economic opportunities for Nova Scotians.

Sincerely,

Original signed by Honourable Keith Colwell, E.C.N.S. Minister of Agriculture

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Department of Agriculture Business Plan 2019 - 2020

Mandate

The Department of Agriculture's mandate is the development of competitive, sustainable and profitable agriculture and agri-business industries that contribute to the economic, environmental and social prosperity of Nova Scotia's rural and urban communities.

The Department works to connect local consumers to the farm and supports goals of increasing food supply, food security and buy-local initiatives.

The Minister is committed to develop and launch the Building Tomorrow Fund for the farming and fishing sectors, to continue the Wine Development Program and to work with the Department of Finance to develop policies that encourage further growth in our local wine, distilling and craft beer industries.

The priorities and core functions of the Department of Agriculture are driven by five strategic themes:

? Enabling responsible economic growth ? Supporting research and innovation ? Building public trust and market acceptance ? Increasing trade and market access ? Encouraging value added opportunities

Department Priorities

The Department will undertake the following priority initiatives in 2019 - 20:

? Implement year two of the Canadian Agricultural Partnership, the five-year agriculture policy and priorities framework. This multilateral agreement includes all provinces and territories and supports the agricultural sector in six priority areas: markets and trade; science, research and innovation; environmental sustainability and climate change, risk management; value-added agriculture and agri-food processing; and public trust. o New cost-shared programming will be developed by the Department in 2019-20, under a five-year budget of $37 M ($7.4 M per year). The suite of programs aims to increase competitiveness, productivity, and profitability; increase environmental sustainability of agriculture and agri-food sectors; and expand domestic and international markets. o Business Risk Management programs will continue to be offered to mitigate producer income losses stemming from production losses, severe market volatility and extreme events or disasters. This includes a robust Crop and Livestock Insurance Program, delivered by the Department. The Department also

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Department of Agriculture Business Plan 2019 - 2020

supports the industry with access to the federally delivered programs: AgriInvest, AgriStability and AgriRecovery.

? The Building Tomorrow Fund, a three-year $9 M provincial investment into agriculture and fisheries. The Building Tomorrow Fund supports the creation of new products and new market development to further drive export growth. In 2019 - 20, $1.5 M of the $3 M annual budget will be allocated to agriculture, with a focus on product development in the maple and blueberries sectors, production efficiencies for SMART Christmas trees, and the development of analytical tools to aid farmers in understanding their costs of production.

? The Department will continue to work with industry stakeholders to identify opportunities in the wine, distilling, and craft beer industries. Initiatives that encourage growth and development for these sectors are underway.

? In 2019 - 20, the Department will invest $2 M in Nova Scotia's grape and wine industry through the Vineyard and Wineries Investment Program. The final year of this four-year, $12 M program includes support for improved efficiency and expansion of vineyards and wineries, innovation through targeted research projects, development of export market opportunities and quality enhancement. At 2018 fiscal year end, 263 acres of new vineyard were planted.

? Wild Blueberry Market Development will continue to be a priority in 2019 - 20. Wild blueberries are Nova Scotia's largest agriculture export at $76.3 M in 2017. The Department will work with the wild blueberry industry to develop an even stronger frozen and fresh food industry through new innovative packaging methods and value-added consumer products using wild blueberries. It will also seek new ways to grow sales in the domestic market, while aggressively pursuing new export markets and business opportunities in Asia and the European Union. Market development efforts will focus on education, increasing consumer awareness and developing new distribution channels such as retail, food service and e-commerce. Promotional initiatives will incorporate key messaging with emphasis on wild, health benefits, quality and taste. Product versatility using wild blueberries will be showcased during chef demonstrations, competitions, media and food blogger events and consumer tastings. In 2019 - 20, the Department will work with key stakeholders to develop a pilot program to introduce school kids to wild blueberries and will also work with industry to develop the wild blueberry wine market in China and other Asian countries.

? The Apple Industry Growth & Efficiency Program is a partnership between the Department and Nova Scotia apple growers that encourages innovation through orchard renewal. The program is in its final year of the six-year, $2.6 million agreement. This program

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Department of Agriculture Business Plan 2019 - 2020

assists apple growers with the initial capital investment to plant their orchards with new, higher value varieties, such as Honeycrisp, Ambrosia and Gala, that will help the industry expand and be more profitable. The value of the Nova Scotia apple industry is at an alltime high, with Farm Cash Receipts reaching $21.7 M in 2016 and international exports reaching $15.9 M in 2017.

? The Department will hear the outcome of its application through the federal Disaster Mitigation Adaptation Fund focused on priority Capital upgrades of the provincial dyke system. The project components would include dyke topping or aboiteau upgrade and a combination of both depending on the marsh. Climate Change predictions will be used to establish new dyke construction heights to prevent over topping and new flow requirements for aboiteau structures and include priorities-based vulnerability assessment and flood mapping projections.

? The Department will focus efforts on innovative, value-added strategies that will increase the value and competitiveness of Nova Scotia's agri-food sector. It is working collaboratively with Perennia, universities and other partners within the agri-food ecosystem on research and development initiatives that will open and expand markets for innovative products.

? In 2019-20, the Department will continue to work on building a Client Relationship Management System and a Compatible Grants Management System. These systems will streamline the delivery of programs and interactions with our clients, improve the client experience with faster turnaround times and enhance performance reporting of programs.

? The Department has collaborated with the Nova Scotia Environment's Climate Change Unit to develop a Climate Change Adaptation Plan (Ag Plan). The Agriculture Champions for Environmental Sustainability (ACES) team has been established to lead and coordinate the implementation, monitoring and evaluation of the Ag Plan. ACES will be implementing strategic actions that build on existing activity within the Department, capitalizing on potential opportunities of a changing climate, while also minimizing the challenges and economic impacts to the agricultural industry and infrastructure.

? In response to requests from industry, the Nova Scotia Farm Loan Board will implement a new loan management system to improve client services and meet government requirements to protect its $300 M portfolio.

? Addressing labour issues in the agriculture sector will continue to be a key priority for the Department in 2019 - 20. The Department is working across departments and with other provinces, territories and the federal government to identify labour issues and propose

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Department of Agriculture Business Plan 2019 - 2020

and implement solutions. This work is also in coordination with industry and other key stakeholders. The Nova Scotia Agriculture Labour Symposium, held in February 2019, focused on industry challenges and solutions, may lead to more specific projects in the future.

Core Functions

Highlights of the Department's core functions and programs supporting its mandate, strategic themes and government priorities include:

? Perennia Food and Agriculture Inc. (Perennia), with the support of the Department's annual grant of $2.5 M and additional project-based funding, will work to help farmers, fishers and food processors be more competitive and profitable by offering services in the field, in quality and food safety and in product development and commercialization.

? The Department will champion industry interests in domestic and international trade issues while supporting efforts to ensure Nova Scotia businesses are prepared to take advantage of increasing market access opportunities due to reduced tariffs through free trade agreements.

? Select Nova Scotia, the Province's buy-local program, is intended to add marketing value for local businesses. Select Nova Scotia uses strategic partnerships to raise consumer awareness regarding Nova Scotia food, locally made goods, and locally owned businesses, and helps Nova Scotians understand the importance of buying local. The Department has a strong partnership agreement with Taste of Nova Scotia to provide culinary tourism marketing, export market development and high-profile consumer events.

? The Department will work with stakeholders across various agricultural industries, developing sector specific initiatives in collaboration with other government departments and Crown Corporations. The Department will provide services and programs to support these initiatives that encourage investment, growth and development of individual agribusinesses.

? The Nova Scotia Farm Loan Board will invest up to $40 M in the development of agriculture and growing the rural economy throughout the Province. Updated regulations were implemented in 2018 - 19 aimed to enhance the Board's ability to meet industry requirements; improve service quality; address risk issues and allow for continued financing solutions into the future.

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