Money. Whether we’re talking
investment in research or market devel-
opment, the answer to growing Canada’s
grain industry comes down to money.
But where will this money come from?
With both the federal and provincial
governments investing in research and
marketing programs, it’s often a matter
of knowing what funds are available and
how best to access them. Unfortunately,
at both levels of government, the applica-
tion processes are at best administratively
burdensome and at worst a bureaucratic
tangle. The result? A mind-numbing fund-
ing structure that takes significant time
away from doing actual work.
Yet a lot of work does get done, with
about $602 million spent by the federal
government on research and development
in the agriculture and agri-food sector in
2012–13. According to the federal govern-
ment’s ag website, this works out to less
than 10 per cent of the $6.8 billion allocat-
ed to the sector during that same period,
with most going to research and inspection
expenditures and program payments.
It’s a lot of money, but is it doing farm-
ers any good?
Over the past few years, we’ve heard a
lot of talk about the federal government
getting out of primary research in agricul-
ture. The funding gap, it has been suggest-
ed, can be met through 3P partnerships
(public–private partnerships) or even 4P
partnerships (public–private–producer
partnerships). These partnerships are
about ensuring public program funding
has commercial viability. It’s a way of
telling farmers and industry to “put your
money where your mouth is.”
Although 3P and 4P programs aren’t
going to replace federal funding yet, they
are already a mainstay of Agriculture and
Agri-Food Canada’s
Growing Forward 2
,
which encourages co-funding opportuni-
ties under the AgriInnovation, AgriCom-
petitiveness and AgriMarketing programs.
These partnerships allow the federal
government’s dollars to reach further,
and stringent requirements for inno-
vation, accountability and collabora-
tion mean the work is expected to
have real commercial value down
the road.
The money speaks for itself: Fund-
ing through
Growing Forward 2
pro-
grams totals $1 billion over five years,
with applicants working together as
funders and recipients to propose projects
that work throughout the value chain.
However, these projects, and others
like them, are just the tip of the iceberg.
As farmer groups and industry continue
to figure out where they see themselves
in the future, a fundamental shift is
happening just beneath the surface. This
shift will determine not only who pays for
future research and market development
in Canada, but also how they pay—and
who decides where the money is spent.
Unfortunately, this discussion raises far
more questions than it answers.
At the heart of the dilemma is Canada’s
role in the world: Will we remain a net
exporter of bulk commodities, or of val-
ue-added goods? Will we build processing
capacity at home, or ship our raw prod-
ucts abroad while processing in Canada
continues to decline? Will we create jobs
in Canada, or will those jobs go to other
countries? Are we the breadbasket of the
world, or its baker?
Which brings me to the next question:
Are we looking at the right opportunities?
Like Canada, many other nations are
net exporters of agricultural commodities.
Keepingupwith theCanadians
By lisa skierka
Tall
WISHES
Top of mind is Australia, which recently
signed the China–Australia Free Trade
Agreement (ChAFTA). This agreement
puts Canada at a competitive disadvan-
tage in China, but it also sets a clear path
forward for our trade-focused federal gov-
ernment. If we want to maintain competi-
tiveness in China, the time is now.
Yet back in Australia, ChAFTA raises
other questions. For example, is it Austral-
ia’s job to become China’s “food bowl”?
Can they develop capacity to truly be Chi-
na’s first choice for agricultural imports?
What level of research investment would it
take to ensure Australia’s export capacity
could keep pace with China’s population?
We hear a lot about keeping up with
the Australians. Fortunately, our govern-
ment’s strong trade agenda means the
conversation is shifting towards keeping
up with the Canadians.
Lisa Skierka is the general manager of
Alberta Barley.
Spring
2015
grainswest.com
9
tying fundingdollars togrowing trade
