Ministry of AgricultureAnnual Report

Table of ContentsLetters of Transmittal. 2Ministry Overview. 3Ministry of Agriculture COVID-19 Response Highlights. 4Progress in 2020-21. 5Ministry of Agriculture Goal 1 – Growth in the Primary Agriculture Sector. 5Ministry of Agriculture Goal 2 – Growth in the Value-Added Sector. 8Ministry of Agriculture Goal 3 – Improve the Agriculture Sector’s Long Term Resiliency. 10Ministry of Agriculture Goal 4 – Public Trust in the Agriculture Sector. 132020-21 Financial Overview. 16Revenue. 18Expenditure. 18FTE Staff Complement. 18

Letters of TransmittalJuly 29, 2021His Honour, the Honourable Russ Mirasty,Lieutenant Governor of SaskatchewanMay it please Your Honour:I respectfully submit the Annual Report of the Ministry of Agriculture for the fiscal yearending March 31, 2021.The Honourable David MaritMinister of AgricultureRespectfully submitted,David MaritMinister of AgricultureJuly 29, 2021The Honourable David MaritMinister of AgricultureDear Minister:I have the honour of submitting the Annual Report of the Ministry of Agriculture for thefiscal year ending March 31, 2021.Rick BurtonDeputy Minister of AgricultureRespectfully submitted,Rick BurtonDeputy Minister of AgricultureMinistry of Agriculture2Annual Report for 2020-21

Ministry OverviewThe Ministry of Agriculture’s mandate is to help industry manage risk and enable a globally competitive, thriving and sustainableagriculture and food sector by supporting farmers, ranchers and agri-businesses. Our mission is to enable a prosperous, marketdriven agricultural industry through a supportive legislative framework, policies, programs and services. We fulfill this mission byproviding a broad range of agriculture-related programs, insurance and economic development opportunities to grow the industry.The Ministry of Agriculture’s employees are committed to providing excellent service to the farmers, ranchers and agri-businessesof the province. Just like our clients, agriculture is our way of life and, together, we face the challenges, obstacles and opportunitiesassociated with this thriving industry. Agriculture is reflected in the history of Saskatchewan and we are proud to continue thattradition through working partnerships with our clients. Ministry employees reflect professional values and a passion for their work,including innovation, teamwork, integrity, service excellence and leadership at all levels.We have 10 regional offices, including the Agriculture Knowledge Centre, staffed with specialists who work directly with farmersand ranchers on everything from technology transfer, to crop and livestock management, to environmental planning. We partnerwith the federal government to provide a range of programs through the Canadian Agricultural Partnership agreement, providingproducers and processors the tools and resources they need to innovate and capitalize on emerging market opportunities.We also work to increase the public’s knowledge of the sustainable farming practices that help drive our economy. We proactivelyengage with industry and other governments to secure market access and increase the demand for Saskatchewan food productsaround the world. We maintain legislation and regulations to ensure public safety, while protecting the environment. We supportagricultural research and ensure producers have access to the latest technology that helps them grow. We provide a range ofbusiness risk management (BRM) programs so farmers can responsibly manage the risks associated with a market-driven industry.We support the continued expansion of provincial irrigation infrastructure so farmers can capitalize on higher value crops. Wemanage thousands of acres of agricultural Crown land for the benefit of all Saskatchewan citizens. Finally, we work to grow valueadded production in the province.This report provides an update on how the ministry progressed on its public commitments noted within the 2020-21 PublicOperational Plan.Annual Report for 2020-213Ministry of Agriculture

Ministry of Agriculture COVID-19Response HighlightsOverviewThe COVID-19 pandemic has challenged government operations during the 2020-21 fiscal year. The expected operations ofprograms and services may have significantly changed as the Government of Saskatchewan worked quickly to support citizens andbusinesses. Annual Reports for the 2020-21 fiscal year provide information on the impacts of COVID-19 and recognize the work of theGovernment of Saskatchewan in responding to the pandemic.COVID-19 Response Highlights The ministry initiated an AgriRecovery response to help the livestock sector deal with challenges caused by packing plantdisruptions due to COVID-19 outbreaks, through a set aside program. Funding was also provided to offset high premiums forlivestock producers using the Western Livestock Price Insurance Program. Through the set aside program, livestock producers received compensation per head to cover the added costs of holding marketready animals on a maintenance feed ration for nine weeks. Deadlines were also extended to help producers effectively manage risk: Crop Insurance deadline extended to April 13, 2020; AgriStability enrolment deadline extended to July 3, 2020; and AgriStability interim payments increased for Saskatchewan producers from 50 to 75 per cent. Ministry of Agriculture regional offices closed to walk-in traffic in the spring of 2020, but staff remained at these locationsthroughout this time to ensure client needs were met. Producers were urged to reach out via phone or email when possible toensure the health and safety of communities. After reopening to walk-in clients in the summer of 2020, regional offices remained open to the public and provided all extensionservices. The ministry’s employees implemented safety measures and innovative program delivery methods to ensure that research sitesand clients were protected amidst the changing circumstances with COVID-19. Some examples include: Crop Diagnostic School, usually a hands-on, in-person event, transitioned to a virtual school in July 2020. Through a mix oflive webinars, pre-recorded presentations and question-and-answer sessions with presenters, extension specialists deliveredimportant agronomic information to clients. More than 700 individuals registered for the virtual event. Another summer staple event, Ag in Motion, transitioned to a virtual format in 2020. The ministry’s livestock and feedextension specialist team organized 19 unique presentations, including a speaker panel on beef sustainability and a stockdog demo. The presentations aired over five days and were seen by 2,300 viewers. The ministry created COVID-19 protocols for staff to practice during on-farm and field visits, and encouraged our producerclients to implement similar protocols on their own farms. The ministry remained in regular contact with industry groups to monitor the impact of COVID-19 on the agriculture sector;this included recurring conference calls with sector partners—both crops and livestock—to check in with them and hear theirconcerns. Regular check-ins with our food processors were also important. Issues such as access to personal protective equipment (PPE) andsupply chain concerns were brought forward and taken back to the ministry and government to receive assistance and guidance. Ministry staff were redeployed to the government-wide Business Response Team to help address the high volume of calls andprovide support directly to agriculture producers and value-added related businesses. Fifty-six ministry staff were also redeployedacross government to assist in the broader COVID-19 response activities.Ministry of Agriculture4Annual Report for 2020-21

Progress in 2020-21Government GoalsA ry of Agriculture Goal 1 - Growth in the Primary Agriculture SectorStrategyEnhance the business environment to attract investment and support growth.Key Actions Identify and address barriers to growth in the primary agriculture sector. Submitted input to the Canadian Food Inspection Agency’s consultations in the following areas: Framing Competitiveness andInnovation for Success, the Feed Regulatory Modernization, and on the proposed guidelines regarding composition and labellingof simulated meat and simulated poultry products. Worked with stakeholders to identify key concerns to inform the development of Saskatchewan’s position regarding the CanadaGrain Act review. Supported the work of the Canadian Agricultural Human Resource Council to improve labour market information specific toagricultural employment.Work with government, partners and industry stakeholders to ensure agriculture development processes are clear, predictable andtransparent Participated in Health Canada’s Pest Management Regulatory Agency’s review of the Re-evaluation Program to ensure thatperspectives of Saskatchewan were included.Influence federal policies and regulations to create a better business environment. Advocated for the needs of Saskatchewan producers for relevant programming and policies when working with federal and otherprovincial-territorial governments. Supported the timely arrival of Temporary Foreign Workers to help address labour needs, while maintaining public health andsafety requirements as a result of COVID-19.Deliver programs and services to maximize irrigation capacity in Saskatchewan. Administered and delivered the Irrigation Development Program and the Irrigation Efficiency Program under the CanadianAgricultural Partnership. Facilitated the irrigation development process for producers with the development of 9,028 new irrigation acres. Assessed over 16,000 acres of new lands for irrigation suitability and issued Irrigation Certificates for approximately 14,000 acres. Provided assistance to the Irrigation Crop Diversification Corporation with its successful collection of 22,000 acres of non-districtirrigator levies.Annual Report for 2020-215Ministry of Agriculture

StrategyAdvance research, innovation and knowledge transfer to improve productivity and sector competitiveness.Key ActionsLeverage industry partnerships to invest in research and identify priorities for the development of new technology, practices andextension information. Committed 13.9 million for 65 new Agricultural Development Fund projects and leveraged 3.5 million from industry to supportthe research projects.Drive adoption of new technology and practices that support economic growth while protecting the environment and buildingpublic trust. In partnership with industry, the ministry delivered 67 virtual extension events—which collectively attracted nearly 20,000participants—to encourage producers to adopt the latest research and technology. Responded to over 14,300 inquiries at the Agriculture Knowledge Centre and regional offices. Collaborated with industry on 22 demonstrations and applied research projects that focused on increasing land productivity andnutrient management. Completed 29 Rangeland Health Assessments, which accounted for over 602,000 acres, in addition to 35 weed management plans. Supported research projects focused on advancing precision manure application, which will better match manure application withsoil tests and crop nutrient requirements. Enhanced producers’ understanding of growth opportunities through knowledge transfer and the development of tools such asthe Expected Progeny Differences calculator, designed to improve herd genetics, and a grain drying factsheet. Promoted livestock record-keeping and its connection to technology, expanded market access, enhanced production, decisionmaking and profitability.Support the application of emerging digital technologies in the agricultural sector. Given other demands related to the ministry’s response to the COVID-19 pandemic, work on this action was suspended mid-waythrough the year. There are ongoing discussions on how the ministry can support this work in the future.StrategyInfluence federal trade policy to reflect Saskatchewan priorities.Key ActionsAdvocate for Saskatchewan trade interests domestically and internationally in partnership with other ministries, including theMinistry of Trade and Export Development. The ministry advocated for producers’ interests, as well as monitored and reported on activities concerning grain transportation. Collaborated with the Ministry of Trade and Export Development on a joint response to the Government of Canada’s publicconsultations on free trade agreement negotiations with Indonesia and the United Kingdom. Sent joint letters from the Minister of Agriculture and the Minister of Trade and Export Development to their federal counterpartsto press for action on technical trade barriers faced in Europe and on market access barriers for canola in China.Enhance coordination with other ministries, provinces, industry partners and the federal government to identify and address tradeissues. Chaired two working groups and participated in a third working group, under the Federal-Provincial Agriculture Trade PolicyCommittee, to strengthen federal/provincial government and industry coordination to trade policy. The working groupsorganized presentations to the Committee by four national industry associations representing grains, oilseeds, pulses and cattle. Met with industry groups to understand the challenges they experience related to trade policy and market access and to identifythe top trade priorities facing the industry.Ministry of Agriculture6Annual Report for 2020-21

Leverage partnerships with Canadian provinces, the federal government, U.S. and Mexican states, and other countries, asappropriate, to influence trade policy. Participated in the renewal of the Memorandum of Understanding for the Tri-National Agricultural Accord, with counterparts inother provinces, the United States and Mexico.StrategyExpand product and market development opportunities.Key ActionsIncrease industry’s trade capacity to support growth. Worked with the Ministry of Trade and Export Development to provide onboarding to the new managing directors of theGovernment of Saskatchewan’s International Trade Offices. Worked with the Ministry of Trade and Export Development and stakeholders to develop an agricultural work plan for the newInternational Trade Offices. Undertook a review of the Product2Market export program to identify improvements for better meeting industry needs.Participate in trade missions to promote Saskatchewan interests in key markets. Due to the COVID-19 pandemic, international travel was restricted, thereby halting any missions. As restrictions lift, the ministrywill determine how to undertake missions in a post-pandemic environment.Performance Measure ResultsAnnual Crop ProductionSaskatchewan’s crop production for 2020 is estimated at morethan 39.1 million metric tonnes, which would be the second largestcrop production in the province’s history, even with less than idealgrowing conditions. Despite the moisture challenges in 2020, overallyields stayed strong. Farmers adopted sustainable productionpractices, such as planting varieties with improved genetics,implementing judicious pesticide use and 4R fertilizer practices,practicing zero tillage and crop rotations—all which helped protectboth yields and the environment. The actual amount of productionwill be calculated in the summer of 2021 by Statistics Canada, whenthe yields have all been reported.Annual Livestock Sector RevenueAnnual revenue has risen dramatically from 1.9 billion in 2013 to 2.4 billion in 2019. High livestock prices are the primary reason forthe stronger revenue over the past several years. Annual livestock cash receipts were estimated to be 2.2 billion in 2020. COVID-19disrupted processing plant operations, reduced in-person restaurant visits and rapidly increasing grain prices affected priceslivestock producers received for their animals. The actual amount of livestock cash receipts will be calculated in the summer of 2021by Statistics Canada.Value of Agri-Food ExportsSaskatchewan’s Growth Plan targeted value for agri-food exports is 20 billion by 2030. In 2020, the value of agri-food exportsreached an all-time high of 16.9 billion, which is a 31 per cent increase from the 2019 value. Most of this growth comes from theincrease of all Saskatchewan’s main field crops. Saskatchewan’s agri-food exports accounted for over half of the province’s totalexports.Irrigation DevelopmentIrrigation provides a reliable water source for crops to offset the impact of unpredictable weather. Expanding irrigation infrastructurein Saskatchewan will increase primary production and on-farm profitability by supporting the growth of diverse, high value crops,which in turn provides more opportunities for value-added processing.The ministry supported the development of 9,028 irrigated acres in 2020: 22 per cent of the acres were developed within irrigationdistricts and 78 per cent of the acres were developed within non-district areas. The ministry is also part of a government-wideteam that is providing leadership and support for the Lake Diefenbaker Irrigation Expansion Project, which could result in thedevelopment of 500,000 acres of new irrigation over several decades.7Annual Report for 2020-21Ministry of Agriculture

Government GoalsA ry of Agriculture Goal 2 - Growth in the Value-Added SectorStrategyImprove the competitiveness of the industry to improve profitability, growth, investment and attraction.Key ActionsIdentify and address sector level constraints and opportunities. The ministry is in regular contact with Saskatchewan’s value-added processors to discuss constraints and to explore new growthopportunities. Through the Saskatchewan Lean Improvements in Manufacturing, the ministry allocated 4.87 million in funding to 19 agribusinesses for infrastructure projects that improve productivity and efficiency. Eleven of the 19 infrastructure projects were fullycompleted in 2021-2021. Included in this funding was 76,525 for 17 Efficiency Analysis reports to be completed for applications. The Product2Market Value-Added program provided 44,135 in support to 13 small and medium-sized agri-businesses to supportproduct development and marketing of products. Through the Food Safety Program, four facilities received 134,067 for upgrading food processing safety risks. In addition, theSaskatchewan Food Industry Centre received 50,775 in funding to conduct eight Food Safety Gap Analysis assessment reportsand to develop Food Safety Systems with two companies. The in-person Value-Added Networking event was not held in 2020 because of the pandemic; however, the ministry planned avirtual event for May 2021.Develop and implement communications and targeted marketing plans to attract investment. Identified priority markets and potential companies for investment attraction. Profiled the ministry’s marketing materials on the Ag-West Bio website.StrategySupport value-added agriculture businesses to improve competitiveness and profitability.Key Actions Enhance effectiveness of programming and services. Expanded training opportunities through the Agriculture Skills & Knowledge Program for value-added processors to enhance theirhuman resources or management skills. Simplified the gap analysis requirement for customers to access funding from the Food Safety for Processors Program. Updated the list of the Government of Saskatchewan’s value-added agriculture programs and incentives available for businesses.Also, improved the clarity and consistency of program information and application forms on the ministry’s website to make iteasier for clients to find and understand the programs. Developed a General Program Application to align with Agriculture and Agri-Food Canada’s Agricultural Clean TechnologyProgram and other initiatives beyond the scope of Canadian Agricultural Partnership programs.Enhance pathfinding services for value-added agriculture businesses. Completed a review of the Ministry of Agriculture and Ministry of Trade and Export Development’s one-government pathfindingapproach. The two ministries are determining a plan to implement recommendations.Support market development for agriculture value-added businesses to access key markets. The ministry partnered with Saskatchewan Trade and Export Partnership to support producers and businesses that were accessingkey markets. This included an export guide to Japan, webinars on doing business in China and Japan, and producing marketingintelligence through subscriptions to agri-food databases.Ministry of Agriculture8Annual Report for 2020-21

Through the Product2Market Value-Added program, the ministry supported 15 companies. This program promotes thedevelopment and expansion of small- to medium-sized enterprises by supporting agri-business product development and themarketing of value-added products.Performance Measure ResultsAnnual Value-Added RevenueIn 2019-20, Saskatchewan’s value-addedrevenue was 5.6 billion, an increase of3.7 per cent from the 2018-19 value of 5.4billion. Saskatchewan’s food manufacturingsector represents approximately 95 per centof the province’s total value-added revenue.Furthermore, approximately 70 per cent of thetotal food manufacturing revenue is attributedto the grain and oilseed processing sector.In 2019-20, food manufacturing revenue was 5.3 billion, which included 3.9 billion ingrain and oilseed processing and 677 millionin meat product manufacturing. Beveragemanufacturing revenue was 74.9 million.Canola Processing in SaskatchewanThe target in Saskatchewan’s Growth Plan is to crush 75 per cent of the canola produced in Saskatchewan by 2030. Currently,there are four commercial canola crush facilities in Saskatchewan; collectively, they process approximately 40 to 45 per cent ofthe canola crop, which represents approximately 3 billion in revenue. Increasing canola crushing to 75 per cent is expected toadd approximately 2.4 billion in revenue. In March 2021, Richardson’s canola crush facility in Yorkton announced an expansionto double its plant capacity to 2.2 million tonnes of seed annually. This expansion is expected to be completed in 2024. Additionalannouncements on canola crush facilities were made early in fiscal 2021/22.Saskatchewan Pulse Crop ProcessingSaskatchewan currently processes approximately 10 per cent of its primary pea production within the province. Saskatchewan’sGrowth Plan targets 50 per cent of Saskatchewan pulse crops to be processed in the province by 2030. Increasing processing to 50per cent would add approximately 1 billion in new value-added revenue by capitalizing on the global demand for proteins.Currently, there are four protein pulse processing operations in the province. One of them began production in 2020 and anotherone is undergoing an expansion. The growing demand for alternative sources of proteins is creating greater demand for increasedpulse processing in the province. In November of 2020, Ingredion announced full ownership of Verdient; work continued in 2020 onexpansions announced in 2018. In 2019, Agrocorp completed work on Phase 1 of its pea protein plant project. The plant can handleup to 50,000 mt of pulses to produce food ingredients such as protein, starch and fibre.Saskatchewan Meat and Animal Feed ProcessingThe growth of Saskatchewan’s crop production and value-added activity will be constrained without a strong and prosperouslivestock sector. The livestock sector provides a critical local market for lower quality crops and by-products from processing activity.Increasing livestock production in Saskatchewan will drive the animal feed manufacturing sector. The target in Saskatchewan’sGrowth Plan is to double meat processing and animal feed revenue from 550 million to more than 1 billion by 2030. Meatmanufacturing revenue increased from 616 million in 2018 to 677 million in 2019. That is a 9.4 per cent increase in only one year.In May of 2020, Donald’s Fine Food purchased the former XL beef plant in Moose Jaw and is undertaking a feasibility study ofconverting it into a sow processing facility, which could drive even greater growth in meat processing over the next number of years.Annual Report for 2020-219Ministry of Agriculture

Government GoalsA ry of Agriculture Goal 3 - Improve the Agriculture Sector’sLong-Term ResiliencyStrategyImprove sector preparedness for natural and economic shocks.Key ActionsTargeted work and promotion of crops and livestock biosecurity surveillance, response and mitigation efforts. Supported the delivery of the Canadian Agricultural Partnership’s Plant and Pest Biosecurity Program through a collaborativepartnership with the Saskatchewan Association of Rural Municipalities (SARM). This partnership helped to control nuisance ratand beaver populations, reduce invasive weed species, survey for clubroot in canola and support training and education on howto best manage agricultural crops pests. Promoted biosecurity extension information for producers through ministry specialists, the ministry’s website, and SARM’s PlantHealth Officers. Worked with Crown corporations and other industry members of the Saskatchewan Clubroot Initiative to develop biosecurityguidelines for third parties. Continued planning and preparedness efforts to mitigate the impact of African Swine Fever to support the pork industry if thedisease is found in Canada or North America.Strengthen initiatives on livestock emergency preparedness and response. Created a permanent Emergency Planning Officer in the ministry’s new Emergency Response and Inspection Unit to dedicatemore resources to preparing for and responding to livestock emergencies.Develop ministry plans to respond to future agricultural droughts and excess moisture. Developed the Agricultural Drought Preparedness Plan through collaboration with other relevant ministries and agencies.Continue surveillance of established and economically important pests. In partnership with SARM Plant Health Officers, Saskatchewan Crop Insurance Corporation, industry, and researchers, the ministryled or participated in 10 insect surveys and 10 disease surveys. The information gathered from these surveys is used to supportmitigation efforts and to inform research priorities.StrategySupport the sector in managing business risks and capitalizing on opportunities.Key ActionsInfluence federal government and other provinces to enhance Business Risk Management programming to ensure it remainseffective and meets the needs of industry. Saskatchewan negotiated with other provincial and territorial governments and the federal government to remove the referencemargin limit from AgriStability payment calculations. This change is retroactive to the 2020 program year and will stay in effectuntil the current Canadian Agricultural Partnership agreement expires in 2023. Removing the reference margin limit expandseligibility and increases the value of payments. Supported a change to allow private insurance payments to be treated as non-allowable income in the calculation of the programyear margin for AgriStability, starting with the 2020 program year, so payments received from private insurance will no longerreduce the support received from AgriStability. Engaged with federal, provincial and territorial governments to determine the path forward for Livestock Price Insurance(previously called Western Livestock Price Insurance Program). Initiated an AgriRecovery response for the livestock sector to deal with the fallout from plant closures due to COVID-19. Thisincluded putting in place a livestock set aside program to help sector manage inventories.Ministry of Agriculture10Annual Report for 2020-21

Provided livestock producers using the Western Livestock Price Insurance Program relief from excessively high premiums related tothe unprecedented market volatility related to COVID-19 impact on markets. Preliminary federal, provincial, territorial investigation has occurred to understand the needs of cannabis producers, includingcoverage levels, margins/premiums and th

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