April 2013 to November 2016 Progress Report

ProgramsSECTOR GROWTH STRATEGIES

GROWING VISIONS

GROWING ACTIONS

• • •

ASSURANCE SYSTEMS AND ENVIRONMENT

GROWING ASSURANCEEcological Goods and Services

Environment

Farmland Beaver Damage Control

Food Safety On-Farm

Food Safety Processing and Distribution

• • •

RESEARCH

GROWING INNOVATIONAgri-Food Research and Development

Initiative (ARDI)

Grain Innovation HubOn-Farm

Capacity and Knowledge Development

• • •

BUSINESS DEVELOPMENT

GROWING COMPETITIVENESSAgri-Extension

Next Generation

GROWING VALUECommercialization

Transformation

Next Agricultural Policy Framework

How much investment is involved with Growing Forward 2 ?

Under Growing Forward 2, the Canada and Manitoba governments committed to invest $176 million from 2013-2018 in Manitoba’s agriculture and food sector to support:• targeted sector growth strategies• assurance systems and environment• research• business development

Growing Forward 2 invests an average of $35.2 million per year over the five-year agreement (Canada: $21.1 million, Manitoba: $14.1 million annually). Over the first three years of the program (2013/14 to 2015/16), $109.9 million of the $176 million available funding has been invested (62.2 per cent). Of the $109.9 million, $67.7 million was for project funding and $31.4 million was for project implementation and program delivery.

Over the life of the entire agreement, $172 million of the available $176 million has been invested; $134.4 million for grant funding (76.6 per cent) and the remainder for project implementation and program delivery (24 per cent).

APPROVED GROWING FORWARD 2 FUNDING BY RECIPIENT InduBased on 2,072 approved Organi

23projects totalling $134.4 million

Processors17%

Producers13%

stry zations%

Research and Development

Institutions and Companies

47%

APPROVED GROWING FORWARD 2 BUDGET BY CATEGORYBased on 2,072 approved projects totalling $134.4 million

Sector Growth Strategies

6%

BusinessDevelopment

14%

Assurance Systems andEnvironment

31%Research

49%

Growing Forward 2

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Message from the Federal MinisterI’m pleased to join with Minister Eichler in presenting this report on some of the many success stories from our collaboration under Growing Forward 2.

Our joint investments of $176 million over five years are helping Manitoba farmers and food processors innovate, grow their businesses, capitalize on global opportunities and fuel job creation and economic growth across the province.

Growing Forward 2 is building farm businesses, helping our environment and meeting consumer needs, through projects such as community pastures, pulse research and gluten-free pizzas!

With global demand growing for Canadian agri-food products, the future is full of opportunity for farmers and food processors. To help the industry take full advantage of this time in history, Minister Eichler and I are working with the provinces, territories and industry across Canada, to shape the next framework for agriculture that will replace Growing Forward 2 in 2018. We are consulting closely with all stakeholders, to make sure the new framework helps them build on the many successes of Growing Forward 2.

I wish everyone a successful year and growing season to come, and I will continue to work closely with industry for the betterment of the sector and our economy.

Lawrence MacAulay Minister of Agriculture and Agri-Food

SECTOR GROWTH STRATEGIES

Growing Actions

Since April 2013, the Growing Actions program has received 68 applications with 45 approved for a total of $6,519,471 for agricultural organizations to implement strategic industry-led initiatives that strengthen the sector’s competitiveness. Projects under this program include:

Protecting Manitoba farmers through a new safety program – more than $432,000 is being invested to help Keystone Agricultural Producers (KAP) establish a new program to provide practical, on-farm expertise, resources and training to enhance on-farm safety. The farm safety program will offer access to agriculture industry-specific information to ensure agriculture employers understand the regulations, rights and responsibilities around safe workplaces and to identify safety risks on their farms.

Promoting flax and its ability to improve health – a total of $135,000 has been invested with the Flax Council of Canada to develop four nutritious, flax-based food products that may help lower cholesterol. Four foods made with ground flaxseed were created and tested with this funding including a muffin, bread, smoothie mix and nutrition bar. This work was done at the Food Development Centre in Portage la Prairie with a focus on using ingredients grown and made in Manitoba. The Flax Council of Canada has also invested $54,000 in this project. The muffin recipe is the first product ready for consumers and, after a pilot project that began in September 2014, the muffins have been added to the Winnipeg Regional Health Authority (WRHA) menu. They are also available to patients and residents daily in many personal care homes and hospital sites throughout Winnipeg.

Growing Visions

The Growing Visions program has received 42 applications since April 2013, with 32 approved for a total of $613,231 for the development and implementation of strategic plans that boost the capacity of agricultural organizations. Projects include the Direct Farm Marketing Association of Manitoba’s membership development and communication plan, Manitoba Forage and Grasslands Association strategic planning, and communication training for the National Sunflower Association of Canada.

April 2013 to November 2016 Progress Report

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ASSURANCE SYSTEMS AND ENVIRONMENT

Growing Assurance

Ecological Goods and Services

Since April 2013, there have been 327 applications for Component 1 and Component 2 of the Ecological Goods and Services program, with 171 approved for $3,944,040 in funding. This funding will enable local Conservation Districts to work with producers to implement beneficial management practices (BMP) that will promote a healthy ecosystem which includes water and air quality. An example of a BMP is Riparian Area Enhancement which funded $1,136,492 to 58 different locations in order to develop alternative watering systems, fencing to manage livestock, and establishment of forages to protect water quality and soil fertility and quality. Projects under this program include:

Riparian area enhancement – the Kelsey Conservation District is being provided with $80,750 to help fence a river to keep livestock from entering the river directly and negatively affecting the riparian area. The Conservation District will also install a watering system for livestock. Enhancing riparian areas helps to build and maintain banks and shorelines, protect aquatic life and ensure the riparian areas serve as islands and corridors for biodiversity.

Developing water retention structures – the Upper Assiniboine River Conservation District project is receiving $49,538 to work with a producer and the local municipality to construct a multi-functional earthen dam. By constructing water retention structures, producers and conservation districts provide adaptive capacity for climate change, landscape resiliency, flood mitigation, a water supply for irrigation or livestock watering, and ecosystem resilience.

Environment

The Environment program enables producers to adopt beneficial management practices that would enhance water quality, air quality, and soil quality and soil fertility of their operations. This program received 370 applications since April 2013, with 172 approved for a total of $6,604,391. One example of an approved application would be Extensive Wintering of Livestock which funded $1,310,633 to 81 producers enabling them to purchase items such as watering systems and windbreaks to establish their livestock away from existing wintering sites. The new sites will reduce the nutrient loading on existing sites and the possible contamination of the water table by nutrient runoff.

Message from the Provincial MinisterManitoba’s agriculture sector has tremendous potential for growth as a result of innovative and cutting-edge producers, processors and businesses.

In the summer, Manitoba Agriculture hosted two industry consultations. On June 28 and July 12, 2016 I heard from stakeholders across the entire industry on opportunities for sector growth, including the potential for investments in innovation. I also received feedback on the next federal-provincial-territorial (FPT) agricultural policy framework which is set to launch in April 2018.

Manitoba Agriculture participated in the development of the FPT Policy Statement (Calgary State-ment) which sets the expectations for the new framework. I am confident that the new framework will address the priorities raised by Manitoba’s agriculture industry with key areas of focus on business risk management, market development and access, research and innovation, climate change, public trust, food processing and emergency manage-ment. The new framework will also support provincial efforts to reduce red tape through improvements in program delivery.

As part of the engagement process on the next FPT policy framework, we will continue to consult with industry to ensure Manitoba’s priorities are considered and benefits to the agriculture sector and the Manitoba economy are maximized.

Ralph Eichler Minister of Manitoba Agriculture

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Projects under this program include:

Mitigation of nutrient losses – Malarky Ltd., a dairy farm in southwestern Manitoba, is receiving $125,000 for its project to increase its manure storage capacity to better mitigate the risk of nutrient and pathogen loss to the environment. Sufficient storage capacity ensures that manure can be applied when field and crop conditions are ideal and not during less ideal times, such as in winter when nutrient loss to runoff is greater.

Protecting waterways using beneficial management practices – Strongbow Farms Ltd. will use $85,000 in funding for its project for the relocation of its livestock confinement facility. The existing facility is located near a water body and by moving it, the producer will improve water quality by reducing off-site transport of sediments, nutrients and pathogens. This will reduce stream bank degradation and soil and vegetation loss, and potentially improve the livestock herd’s health.

Environmental Farm Plan

Since April 2013, there have been 401 participants in the Environmental Farm Plan, including 159 new participants. Environmental Farm Plans are a means for producers to examine the environmental sustainability of their operations and what actions they can take to enhance it. For a producer to be approved for an Environment or Ecological Goods and Services activity they must complete their environmental farm plan and receive a statement of completion. A total of 205 statements of completion have been issued.

Farmland Beaver Damage Control

Since April 2013, the Farmland Beaver Damage Control program received 144 applications, with 126 approved for $425,521 in funding. This funding has resulted in the reclamation of over 50,000 agricultural acres that had been affected by nuisance beavers.

Food Safety On-Farm

Since April 2013, the Food Safety On-Farm program has received 1,282 applications and 951 were approved for a total of $6,128,403 in funding for the adoption of assurance systems and best management practices at the farm level related to food safety, biosecurity, plant and animal health, traceability and animal welfare. For example, 115 producers were able to improve animal health and welfare through the implementation of quarantine pens to control and/or contain diseases on the farm.

Additionally, there were 231 swine producers who were approved under the biosecurity category to improve animal health and on-farm food safety through the implementation of upgrades to their facilities. Examples include improve-ments to animal entry/exit, sanitation equipment and bio-secure bedding and feed storage.

There has been high uptake of new catalogue items added in 2016/17 which includes:• apiary signage (apiculture traceability)• calf catching pens (beef welfare)• remote surveillance (beef welfare)• grooved surfaces and hoof trimming chute (dairy welfare)• low stress handling equipment (bison welfare)

The Food Safety On-Farm program helped develop a Porcine Epidemic Diarrhea (PEDv) surveillance system for the Manitoba Pork Council. There were 78 participants in the Verified Beef Production (VBP) program. The program funded 48 activities for the beef, bison, dairy, goat and poultry food safety assurance systems. In addition, three pilot projects were developed and provided assistance to the Manitoba pork and dairy industries.

Food Safety Processing and Distribution

Since April 2013, the Food Safety Processing and Distribution program has received 129 applications and 96 were approved for a total of $1,676,921 for the development of food safety and traceability systems and assistance to optimize animal welfare and biosecurity best practices. For example, 23 Manitoba processors were able to improve food quality and production efficiencies by implementing Hazard Analysis Critical Control Point initiatives into their production processes.

April 2013 to November 2016 Progress Report

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There has been increased uptake in the Biosecurity Processor program which provides assistance to eligible abattoirs, assembly yards and auction marts for adoption of beneficial practices that mitigate risk factors related to biosecurity through operator training and direct funding for infrastructure improvements or the purchase of capital equipment.

RESEARCH

GROWING INNOVATION

Agri-Food Research and Development Initiative

The Agri-Food Research and Development Initiative (ARDI) program received 91 applications since April 2013 and 66 were approved for a total of $6,766,449 in addition to leveraged applicant partner contribution of $14,887,381. This program funds industry-led innovative research and development activities in crops, livestock, environment and food to improve the competitive position of Manitoba’s agricultural, agri-food and agriproducts sectors by accelerating the pace of innovation in market development, production and proactive risk management. Projects under this program include:

Supporting soybean research – Manitoba Pulse and Soybean Growers (MPSG) is working on 16 soybean based research projects totalling $1,167,342. Long term sustainability of pulse and soybean crops in Manitoba requires beneficial production and management practices

to be continually reviewed and updated to remain accurate and current. MPSG, through these research projects, has the ability to transfer knowledge effectively through timely communication to producers.

Researching wheat varieties – Western Feed Grain Development Co-op Ltd. is conducting a $400,000 multi-year project on identifying parent material for non-GMO wheat trait development focusing on flood tolerance in early stages of development, salinity tolerance and aster yellow tolerance. This project will help provide producers with the most suitable seed varieties for varying conditions.

Manitoba Grain Innovation Hub

There were 38 Grain Innovation Hub applications processed through the ARDI Innovation program with 22 approved for $3,569,977 in addition to leveraged applicant partner contribution of $18,562,755. The Grain Innovation Hub is specifically designed to enhance Manitoba’s leadership in innovation for the grains industry. Targets for investment include improvements to production, processing and utilization of cereals, oilseeds and pulse crops. Projects under this program include:

Researching health benefits in food – The Canadian Centre for Agri-Food Research in Health and Medicine (CCARM) received $1 million to purchase a nuclear magnetic resonance (NMR) imager, which is used to detect different chemical compounds in food, making it possible to isolate which ones are responsible for providing health benefits.

Supporting national wheat research priorities – the Manitoba Grain Innovation Hub provided Cereals Canada with $25,000 to work directly with public, producer and private funding organizations across Canada to identify a national wheat research strategy. The funds assisted Cereals Canada to host a workshop with all members of the wheat value chain to build consensus on research priorities and strategic goals that will be distributed in a final report.

Supporting canola research – the Grain Innovation Hub has provided funding to DL Seeds Inc. to enhance its molecular breeding capacity. The $134,390 investment helped purchase laboratory equipment which will expand disease resistance breeding and molecular marker pathology screening programs. This equipment is assisting with identification and transfer of disease resistance genes for clubroot, verticillium wilt, sclerotinia and blackleg into their breeding lines to develop new hybrids.

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On-Farm

Since April 2013, the On-Farm program has received 108 applications with 40 approved to date for a total of $1,504,475 to provide financial assistance for projects carried out on Manitoba farms and ranches that accelerate the adoption of innovative new technologies and/or production practices in primary agriculture. The program assesses new technology, products or practices that could help producers adapt to changing demands and improve their competitiveness and sustainability. Projects under this program include:

Collecting on-farm data using new technology – Frank Prince Farms received $50,000 for a project to test new on-farm technology to predict and facilitate in-crop application of nitrogen fertilizer for corn. The project tested the reliability of a hand-held soil plant analysis development chlorophyll meter and unmanned aerial vehicles as streamlined technology field tools.

Researching biomass densification – Prairie Agricultural Machinery Institute (PAMI) received $99,450 for projects related to its mobile biomass densification for on-farm use. PAMI has developed a mobile densification system that has been successful in turning agricultural residues into a usable form of biomass. Several projects have been performed at PAMI’s operations where the machine has successfully created biomass cubes from both agricultural waste and dedicated energy crops.

Capacity and Knowledge Development

Since April 2013, the Capacity and Knowledge Development program had 62 projects approved for $27,889,467. The program serves to ensure Manitoba has the capacity to develop and translate into outcomes, innovations that advance the competitiveness and sustainability of the agriculture, agri-food and agriproducts industries. The program aims to increase the scope and effectiveness of Manitoba’s innovation support network and to align the network with innovators in the agri-food industry. Projects under this program include:

Diversification Centres – Working at the local community levels, Diversification Centres received $1,500,000 in funding, used for applied research techniques, activities, and projects to evaluate, demonstrate, and develop recommendations to achieve higher value from crops, livestock and innovative production systems for farmers in Manitoba.

Manitoba Agri-Health Research Network – The Manitoba Agri-Health Research Network (MAHRN) received $2,380,000 in funding to lead the co-ordination of the Manitoba functional food cluster (members include: Canadian Centre for Agri-Food Research in Health and Medicine, Food Development Centre, Richardson Centre for Functional Foods and Nutraceuticals) by collaborating to identify preventative and therapeutic properties of Manitoba grown foods against Type 2 Diabetes and Cardiovascular Disease. MAHRN advanced relationships and served as the interface between producers, industry, and cluster members.

Ag Weather Programs – Ag Weather Programs received $1,697,000 in funding to cover the cost of operating permanent, automated surface and seasonal weather monitoring stations that provide weather-related information and value-added tools for Manitoba producers free of charge. The Ag Weather Program also administers the Crop Residue Burning Program that started in 1993 to control smoke from crop residue burning and avoid adverse effects on health and safety.

Evaluating health benefits of dietary flaxseed – Canadian Centre for Agri-Food Research in Health and Medicine at St. Boniface Hospital Research Centre received $340,000 in funding for a nutrition economics research project involving use of dietary flaxseed to significantly reduce blood pressure in patients with dangerously high blood pressure. The project is evaluating the capacity of dietary flaxseed to replace anti-hypertensive medications, and possibly lowering the health care costs associated with this disease.

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April 2013 to November 2016 Progress Report

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BUSINESS DEVELOPMENT

GROWING COMPETITIVENESS

Agri-Extension

The Agri-Extension program received 121 applications since April 2013, with 87 approved for a total of $946,355 for the development and delivery of group learning activities that will enhance the management skills of Manitoba producers and agriprocessors. Projects under this program include:

Prairie Fruit Growers extension event – the 2017 Direct Farm Marketing Conference received $7,500 in funding. The event will provide current information and resources to direct farm marketing sector participants, specifically farmers and agri-product processors, to help develop their businesses through increased revenue and profitability.

Next Generation

Since April 2013, the Next Generation program has received 120 applications and 89 were approved for a total of $405,895 for individual skill development and professional consulting services that enhance business management, including assessment, analysis, financial planning, risk management, marketing and leadership. In 2016-17, the program has provided funding for four producers to have access to professional consulting services and for two producers to attend workshops and training seminars.

GROWING VALUE

Commercialization

Since April 2013, the Commercialization program has received 114 applications, with 43 approved for a total of $2,258,105. The program provides financial assistance to agriproduct processors engaged in pre-commercialization and commercialization activities that move innovations to market. Based on applicant estimates, a total of 214 new full-time equivalent jobs were added to the agri-food processing sector in association with the program’s contribution to these projects. In addition, based on applicant estimates, use of Manitoba agri-inputs was forecast to grow from total purchases of $24.3 million per year to $57.2 million per year within three years. This represents a Compound Annual Growth Rate of 33 per cent. Projects under this program include:

Bringing agri-food processing products to market – Carberry Manitoba Starch Products (CMSP) received $202,960 for packaging equipment to help bring two new prebiotics products to market. The human and pet health products were successfully launched in 2016 and CMSP is planning to construct a second manufacturing facility which will help create more jobs in Carberry.

Boosting beverage manufacturing in Manitoba – PEG Beer Co. Ltd. received $60,000 in funding to put towards the purchase and installation of brewing equipment including a 15-barrel brewing system. The equipment was needed to start up the company’s craft beer manufacturing facility in Winnipeg. Torque Brewing Inc. is also a new craft beer manufacturer in Manitoba. The company received $60,000 to put towards the purchase and installation of brewing equipment, including a 30-hectolitre brewhouse and a canning line.

Transformation

Since April 2013, the Transformation program approved 16 projects for a total of $12,118,791. The program provides financial assistance to agribusinesses involved in equipment manufacturing or the processing of agriculture-related products. Based on applicant estimates, a total of 181 new full-time equivalent jobs were added and an additional 2,749 existing full-time equivalent jobs were retained in association with the program’s contribution to these projects.

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In addition, based on applicant estimates, use of Manitoba agri-inputs was forecast to grow from total purchases of $43.1 million per year to $66.5 million per year within three years. This represents a Compound Annual Growth Rate of 15.5 per cent. Projects under this program include:

Creating opportunities for local farmers and processors – Canadian Prairie Garden Puree Products Inc. received $582,067 for its project to purchase, install and modify existing equipment as part of the expansion of its processing plant in Portage la Prairie. The project will help the company manufacture commercial volumes of aseptically packaged fruit and vegetables for export world-wide.

Investing in local pork production – Maple Leaf Foods Inc. received $500,000 to help build a bacon processing line, which is part of the overall expansion of the company’s prepared meats bacon plant. The funding is for new innovative processing and packaging equipment for the production line. The project will help the local pork processor increase annual production capacity at its Winnipeg facility by eight million kilograms.

Next Agricultural Policy FrameworkDevelopment work continues toward the next framework agreement that will succeed the Growing Forward 2 framework when it expires in 2018. The new framework will continue to build on the long term policy direction laid down by the previous frameworks and successful programming areas.

At the federal-provincial-territorial Ministers of Agriculture meeting in Calgary in July 2016, ministers issued the Calgary Statement setting the priority areas for developing the Next Policy Framework (NPF) as follows:• markets and trade• science, research and innovation• risk management• environmental sustainability and climate change• value-added agriculture and agrifood and processing• public trust

Manitoba Agriculture has been engaged with industry on Growing Forward 2 program review and setting industry priorities for the NPF over the past year and will continue as program development occurs in 2017. Manitoba Agriculture will host a booth at Manitoba Ag Days from January 17 to 19, 2017 to engage Manitoba stakeholders in discussion about the effectiveness of Growing Forward 2 programs and what they would like to see in the new framework.

For more information on the Calgary Statement, or to follow the status of the NPF development and view the consultation material, check Manitoba Agriculture’s website www.manitoba.ca/agriculture. To provide your comments in relation to the NPF priorities and what you would like to see in the next framework, email MBAgPolicyConsultation@gov.mb.ca.

Stay Connected to Growing Forward 2 in Manitoba• Subscribe to the Growing News electronic newsletter by emailing MAFRDGF2@gov.mb.ca.

• Follow us on Twitter @MBGovAg.

• Visit manitoba.ca/agriculture and click on Growing Forward 2.

Available in alternate formats upon request. Published in January 2017