Business Plan

Transcription

1 Business Plan March 2014

2 Table of contents Executive summary... i Mandate... 1 Governance... 2 Overview of programs... 3 Environmental scan... 5 Strategic direction... 9 Implementation plan...12 Performance measures...14 Resources required...17 Risk assessment and management plan...24 Appendix 1 Communication of the business plan...26 Appendix 2 Programs and services...27 Appendix 3 Risk assessment results strategic risks...33

3 Executive summary As an agency of the Government of Ontario, Agricorp has a mandate to deliver programs and services that help Ontario s producers manage their agricultural risk. Agricorp s vision is to be a versatile, customer-focused organization that works with partners to innovatively deliver programs and services that enhance the vitality of Ontario agriculture. The three-year business plan outlines the agency s focus on its commitments under current federal and provincial agreements and on delivering programs efficiently, with attention to quality and customer service. Agency highlights Agricorp s core business is to deliver business risk management programs to producers in Ontario s diverse agricultural industry on behalf of the federal and provincial governments, as well as other programs and services in support of the industry on behalf of producer organizations. In doing so, Agricorp s ongoing challenge is to carefully balance the need to deliver programs in a manner that meets and also manages producers service expectations while creating and maintaining effective and transparent processes aligning with government s expectations and priorities. To effectively deliver on its mandate, Agricorp s operations rely on: A governance model that provides effective stewardship of government resources and ensures the necessary checks and balances are in place, such as a risk assessment that informs strategy, robust audit plans, effective controls and compliance with legislation and directives A suite of complementary business risk management programs designed for the specific needs of Ontario producers and a culture of continuous improvement and collaboration with governments and stakeholders Skilled expertise and capabilities that offer the depth of knowledge to deliver effectively and responsibly, and the flexibility and confidence to respond efficiently to program changes Having more than 90 per cent of its resources focused on providing predictable, consistent and high quality customer service through the development and implementation of processes and technology required to ensure effective and professional delivery of programs Transparent reporting practices that ensure performance is measured and monitored, targeted results are achieved, and steps taken to ensure issues are identified and managed. Where we ve been Following a value-for-money audit in 2008, Agricorp has been implementing a strategy focused on incremental improvements to customer service and delivery efficiency. Recognizing the fiscal limitations and the broader financial climate, Agricorp s strategy has been to transform its delivery through measured steps over time. Agricorp has focused on making improvements to customer service and delivery efficiency that enable the agency to provide a predictable and consistent customer experience across programs. By standardizing processes and aligning our organizational structure to support these processes, the agency has strengthened the foundation on which to improve its outdated information technology systems. Federal and provincial funding was secured for and to implement phase one of a multi-phased system replacement strategy to renew Agricorp s i

4 customer service and delivery capabilities. Phase one has supported government priorities such as implementing new debt recovery practices, delivering the multi sector Risk Management Program and improving e-services for Ontario producers. During this time frame, discretionary program changes were cut back and industry expectations in this area were managed to a degree. The number of program enhancements requested by industry exceeds Agricorp s capacity. A small number of enhancements have been made to the grain, forage, fruit and vegetable plans for the Production Insurance program and new plans added for organic crops and ginseng. We also improved how the ministry and agency work together to better respond, and to manage mandated program changes, new programs and ad hoc programs. Over the next three years, Agricorp will continue to focus only on high-priority program enhancements. To date, Agricorp has found efficiencies through the creation of more streamlined processes, lower administrative costs, better use of technology and ongoing cost avoidance and cost reduction strategies without compromising recent gains in customer service or quality. This work was validated by benchmarking completed by KPMG as part of the Agricorp Review, which concluded Agricorp is performing similar to or better than its comparators for all indicators measured. Overall, Agricorp is balancing efficiency with effectiveness well to provide value for money relative to other agriculture business risk management organizations. Our focus on making improvements to customer service is evident in the results of our annual customer satisfaction survey. With low ratings in 2007, Agricorp s rating increased over the four years that followed. For the last three years, the agency has maintained high customer satisfaction scores. Today s operating environment April 1, 2013 marked the launch of the Growing Forward 2 (GF2) policy framework. GF2 is a three billion dollar investment by federal, provincial and territorial governments and the foundation for government agricultural programs and services over the next five years. The framework commits governments to a suite of business risk management programs that will help farmers manage risks from market volatility, adverse weather and disaster situations. GF2 introduced program design changes. For example, AgriStability coverage was reduced to 70 per cent and there was a commitment to review Production Insurance in time for the next framework agreement. At the same time, the provincial government announced the continuation of the Risk Management Program, with $100 million in available funding each year. While these changes reduce costs to government, savings through administrative costs will be determined over time as delivery processes are adjusted to align with program design changes. Governments everywhere face challenges to improve public services while containing expenditure growth. The provincial government is committed to a balanced budget by while implementing initiatives to transform public service delivery by providing better, smarter and faster public services. These initiatives and variables such as economic trends, rapid changes in technology and increased accountability and transparency for public institutions have significant operational impact on the agency. Nonetheless, fiscal constraint and the efficient delivery of government programs continue to be an overarching theme to the agency s three-year business plan. Moving forward Agricorp is poised to implement a strategy that maintains current levels of service and leverages the agency s expertise and infrastructure to support government direction, reduce the burden on producers, and achieve overall economies of scale. ii

5 Three directional themes have been articulated: Efficient and effective operations that continue to demonstrate value for money. Making it easier to do business with Agricorp by improving processes, structures and systems. Being open for business with relevant programs and services that reduce the burden on producers when doing business with government. This plan outlines a number of operational objectives, performance indicators and targets to track progress on implementing this strategy. Resources overview Agricorp s strategy sets out a direction to continue to operate within the existing budget envelope. Administrative expenditures for and beyond have been forecast at a straight line. These expenditures do not include any future investment by the provincial and federal governments in Agricorp s IT Renewal Plan to renew Agricorp s customer service and delivery capabilities. Recognizing program changes and the current financial climate, Agricorp has adjusted its delivery strategy. The adjustments range from the delivery of services through new or alternate platforms, to streamlining and right-sizing processes to reflect changing programs, and seeking a flexible program funding model within an overall funding envelope that enables greater responsiveness to government and industry need. This approach recognizes that accountability and a focus on the customer must not be compromised. Based on current and future business needs and priorities and to position the agency to remain within its funding envelope, Agricorp significantly reduced the size of its workforce (from approximately 449 FTEs to 400 FTEs) and amount of leased office space in The impact on the delivery of programs and to Ontario producers is expected to be minimal. However, this reduced staffing level will limit Agricorp s capacity and flexibility to respond to government and industry needs such as new initiatives, including any ad hoc programs, without negatively impacting the delivery of existing programs and services. The agency is continuing to adjust its program delivery processes to align with program changes and a reduced number of staff. Some work will be eliminated through changes in some work processes and the reorganization and streamlining of others. At this point, we believe that realignment of AgriStability delivery with the revised program design will enable Agricorp to offset inflationary cost pressures from flat-line budgets for the next two fiscal years. We will continue to look for additional savings to offset inflationary increases. However, any expectation for the agency to find additional material savings would result in significant operational impacts. With completion of phase one of the IT Renewal Plan in 2014, this three-year business plan outlines capital investment for the next phase of the IT Renewal Plan. Further investment in technology supports continued improvements to customer service, provision of web-based self service capabilities and access to better information for policy development. In 2014, we will be working to secure approvals and funding on the next phase, the replacement of the Production Insurance program administrative systems. Conclusion Agricorp continues to make progress through measured steps over time. While business risk management programs have had significant program design changes in recent years, the agency has been able to maintain customer service levels while keeping producers informed of program change and advancing a number of key strategic initiatives. The business plan builds on this solid foundation. iii

6 Mandate As an agency of the Ontario government, Agricorp delivers government and non-government business risk management programs to Ontario s agricultural industry on behalf of the Ontario Ministry of Agriculture and Food (OMAF). Agricorp was established in 1997 by the provincial government under the authority of the AgriCorp Act, The agency s legislative mandate, as outlined in the AgriCorp Act, is two-fold, and in summary is: To administer crop insurance under the Crop Insurance Act (Ontario), 1996 and perform duties conferred on Agricorp under that act; and To perform other duties conferred by any other Ontario statute, order of the lieutenantgovernor in Council or agreement. Agricorp is also responsible to the Ontario government to deliver these programs while maintaining the highest standards for fiscal responsibility, transparency, accountability, risk management and customer service. Vision Agricorp s vision is to be a versatile, customer-focused organization that works with partners to innovatively deliver programs and services that enhance the vitality of Ontario agriculture. Agricorp s customer-focused vision supports the Ontario government s agenda of a strong and growing economy and achieving a balanced budget by , and aligns with OMAF s vision of achieving a thriving Ontario agriculture, agri-food and agri-based products industry. Agricorp s two largest programs, AgriStability and Production Insurance, are cost shared by the federal and provincial governments, and protect against loss of farming income and crop losses caused by adverse weather and other natural perils. Agricorp also delivers the Risk Management Program on behalf of the province, which helps Ontario producers manage risks beyond their control, such as fluctuating costs and market prices. Mission We connect producers with programs. We partner to deliver risk management programs that are responsive to the changing needs of agriculture. Delivery is our strength. We focus on efficient and effective delivery of programs with quality, integrity and transparency. Customers are our priority. We want to deliver consistently professional services and programs that provide security today while helping our customers manage their risks in the future. Our people are the foundation of our success. Collaboration and continuous improvement harness our many strengths for a common focus. We are publicly accountable. Through the prudent expenditure of public funds, we deliver programs on behalf of our agricultural and government partners with consistency, openness and dependability. 1

7 Core qualities Agricorp promotes five core qualities to guide employees daily activities and help them achieve the organization s vision and mission. Agricorp s employee recognition program, High Five, formally and informally recognizes staff members who demonstrate one or more of the five core qualities in the workplace. It promotes a recognition culture at Agricorp by emphasizing the importance of acknowledging the efforts and accomplishments of all employees. Agricorp wants its employees to be: Proactive we are always looking for opportunities to improve. We act in advance to deal with expected difficulties. Collaborative we work together to foster a shared vision. We support and encourage each other. Quality-focused we take pride in our work. We do the right things the right way, to the highest possible standard. Efficient we work effectively with a minimum of waste, expense or unnecessary effort. We look for ways to do our jobs as easily and as quickly as possible, without compromising quality. Professional we meet our commitments and do our jobs with integrity. We strive to earn the trust of others through our actions, the quality of our work and our attitude. Governance Agricorp rigorously adheres to regulatory requirements and best management practices to ensure sound and consistent governance throughout the organization. Agricorp is governed through legislation, through a board of directors that reports to the Minister of Agriculture and Food, through a collaborative relationship with OMAF and through day-to-day management. Legislation and directives Agricorp is a provincial Crown corporation created in 1997 under the authority of the AgriCorp Act, 1996 and is classified as an operational enterprise. The act outlines Agricorp s purpose, powers, mandate, and structure and authorizes Agricorp s board of directors to create bylaws detailing the board s operating policies. As an operational enterprise, Agricorp has the authority to sell goods or services to the public in a commercial manner. The agency follows leading governance practices and is guided by the highest standards of conduct. The agency is also responsible for the judicious use of public resources and for carrying out established mandates. Agricorp must comply with provincial government directives that guide agencies in the delivery of services to the public. The Agency Establishment and Accountability Directive (AEAD) provides the accountability framework within which Agricorp operates. Board of directors Agricorp s board members are leaders in agriculture, business and community. Members are appointed by the lieutenant-governor through an order-in-council on the recommendation of the Minister of Agriculture and Food. Members serve terms of up to three years and are responsible for the overall performance of Agricorp. The board and its committees typically meet quarterly, or as required by business demands, and have an annual strategic planning session. 2

8 The board of directors is accountable to the minister, through the board s chair, for setting goals, objectives and the strategic direction for Agricorp, within its mandate. The board provides oversight of Agricorp s operations through several accountability mechanisms including: Memorandum of understanding Program agreements Strategic plan Annual report Audits Financial and performance reporting Relationship with OMAF A memorandum of understanding, based on the AEAD and approved by Management Board of Cabinet, clarifies expectations and covers financial, staffing and administrative matters, and reporting requirements. It also defines the relationship between OMAF and Agricorp, including the roles and responsibilities of the minister, the deputy minister, the chair of the board, the board of directors and the chief executive officer of Agricorp. Agricorp s governance structure Minister Agriculture and Food Governance & HR Committee Board of Directors Finance & Audit Committee OMAF CEO Corporate Services Strategic Management & Communications Program Development Legal Services Program Delivery Information & Technology Services Human Resources & Organizational Development Overview of programs Overview Agricorp s primary focus is to deliver programs and services that help Ontario producers manage many of the business and agricultural risks they face every day. Agricorp delivers a suite of risk management programs and provides a number of services for government and industry groups. The three main programs Agricorp delivers are: AgriStability, Production Insurance and the Risk Management Program (RMP). Administration of AgriStability and Production Insurance are funded by the federal and provincial government on a 60:40 basis and RMP is funded by the provincial government. Agricorp is responsible to the provincial government to administer these programs while maintaining the highest standards for fiscal responsibility, transparency, accountability, risk management and customer service. In , Agricorp delivered business risk management programs to more than 44,000 Ontario producers. Agricorp s goal is to continue to provide predictable, consistent and excellent customer service while continuing to earn the confidence and trust of Ontario s agricultural producers. 3

9 Major programs AgriStability AgriStability is a business risk management program that protects producers from large declines in their net farming income due to adverse market conditions, production loss or increased costs of production. The program is available to producers of all agricultural commodities. The Growing Forward 2: policy framework brought a shift in program policy as AgriStability assistance will be targeted to producers with severe income losses and less to producers with profit fluctuations. This policy shift is reflected in program design changes that reduce coverage to 70 per cent of a producer s reference margin and simplify the payment rate to 70 per cent for both positive and negative margins. Agricorp has implemented these design changes and initial delivery process changes in In , Agricorp underwrote more than 15,700 producers for the 2012 AgriStability program and to date, has processed $74 million in claim payments for more than 1,950 customers who incurred losses. Agricorp also delivered $2.8 million in 2013 interim payments. Production Insurance Production Insurance is a business risk management program that compensates Ontario producers for yield reductions and crop losses caused by adverse weather and other insured perils such as drought, floods and frost. Production Insurance provides effective coverage for 100 commercially grown crops in Ontario. Producers may choose from a variety of plans and coverage is available on a total-yield, dollar-value or acreage-loss basis. Payments are triggered when an insured peril causes the harvested yield to fall below guaranteed production levels or predetermined thresholds. For the 2013 crop year, Agricorp underwrote 14,750 producers in Production Insurance, representing 5.0 million acres and $2.9 billion in liability. Claim verification resulted in more than $81 million in payments to more than 7,100 producers with yield reductions and crop losses. Risk Management Program Introduced in 2011 by the Ontario government, the Risk Management Program (RMP) is designed to help Ontario producers offset financial losses caused by low commodity prices and rising production costs. The program offers six plans for producers of grains and oilseeds, livestock (cattle, hog, sheep and veal) and edible horticulture. For most plans, RMP works like insurance and producer premiums are based on a choice of coverage levels and options. Payments are triggered if the commodity s average market price falls below the average cost to produce the commodity and the chosen coverage level. For the edible horticulture plan, the producer deposits funds in a selfdirected account to receive a matching government contribution, and may withdraw funds at any time to offset financial losses. The RMP plans complement AgriStability and Production Insurance. Program design changes came into effect in 2013, when the province made available annual funding of $100 million for producer payments and administrative costs. The most noticeable change for producers was the introduction of interim payment rates for all plans, to ensure the equitable distribution of funding across all plans throughout the year. For the 2013 program year, Agricorp underwrote nearly 10,000 producers who were enrolled in one or more of the six plans. For the 2013 program year, RMP will fully utilize the $100 million in available funding. 4

10 Other government programs and services Agricorp delivers other government programs and services that benefit producers by ensuring the overall financial health and security of specific agricultural sectors. For a detailed description of all programs and services delivered by Agricorp, such as Farm Business Registration and Grain Farmers Protection Program, refer to Appendix 2. Non-government programs and services Agricorp provides services to industry to support and enable a competitive, productive and sustainable agri-food sector. These services include: data management for the Ontario Apple Growers, Grape Growers of Ontario and the Ontario Tender Fruit Producers Marketing Board; financial analysis for the Dairy Farmers of Ontario and secretariat services for the Grain Financial Protection Board. Refer to Appendix 2 for a detailed description of the services Agricorp provides to industry and government. Environmental scan The environmental scan describes the business environment in which Agricorp operates. It identifies key trends, events and issues that present risks and opportunities to the agency. By identifying these risks and opportunities, Agricorp can be proactive in assessing and responding to changes in its internal and external environment. External environment Ontario s dynamic agricultural sector Ontario agriculture continues to be very diverse with many commodities and a wide range of producers to serve. Most sectors of agriculture are very dependent on the weather and climate, and recent years have seen more variability in daily and seasonal weather patterns, making agricultural production more challenging and thereby affecting demand and commodity prices. Agriculture demographics continue to change with a declining number of farms and increases in the average farm size, combined with an aging farmer population. Ontario is blessed with thousands of hectares of farmland, a rich diversity in foods produced, and an agri-food industry that is one of the biggest drivers of the province s economy. More recently, the government s priority has been on local foods, exports and food processing and the government continues to invest heavily in research. Ontario s agri-food industry has grown more than 10 per cent since 2002, with food exports hitting a record high of $10.8 billion last year. The sector supports more than 710,000 jobs across Ontario, or 11 per cent of the province s jobs 1. There are about 52,000 farms in Ontario and 3,000 food processors that buy 65 per cent of their inputs here at home 2. The next agricultural policy framework, Growing Forward 2: is in place. This five-year agreement reinforces federal, provincial and territorial governments commitment to innovation, competitiveness, marketing and the continuation of business risk management programs, providing some stability to the sector. With the new policy came some expected program changes and program reviews. Program design changes introduced for the national AgriStability program are expected to significantly reduce both the number and size of payments and program participation over the next five years. A commitment was also made for a national review of the Production Insurance program for the next policy framework OMAF and MRA Results-Based Plan Briefing Book

11 Provincial programs also support the agricultural industry and Ontario has an ongoing commitment to provide the Risk Management Program (RMP), the Grain Financial Protection Program (GFPP) and Farm Business Registration (FBR) for Ontario producers. In light of the province s fiscal environment and industry changes, RMP funding changes were introduced in Relevant risk management programs provide producers with the tools they need to manage their business risk as well as the confidence to make investments and be innovative. Producers who have a risk management product with Agricorp have that added financial security that gives confidence to other businesses they deal with, such as financial institutions and input suppliers. Relevant programs also reduce the need for governments to fund ad hoc programs. The agriculture industry has high expectations and continues to request enhancements to programs such as Production Insurance and RMP. These expectations need to managed and prioritized within an environment of fiscal constraint and balanced with industry changes and needs. Ontario s economic recovery Countries around the world continue their economic recovery from the global recession, and progress on that recovery remains slow. The Ontario government remains committed and focused on its plan to eliminate its deficit by while protecting health care and education, and creating confidence among investors and businesses to enable job growth and prosperity with little to no growth in public spending. The global economy continues to affect Ontario s economy. The 2013 budget and the 2013 Ontario Economic Outlook and Fiscal Review introduced a three-part plan to strengthen the province s economy. The path is built on investing in people, building modern infrastructure and supporting a dynamic and innovative business climate. Similar to the 2012 budget, the 2013 Ontario budget spoke to initiatives to secure Ontario s prosperity by investing in infrastructure, education and skills training, health care and continuing with little to no growth in program spending. Fiscal restraint, improving public services and being publicly accountable continue to be the overarching themes for the provincial government, its agencies and boards to strengthen Ontario s economy. Transforming public services Ontario s strategic initiatives are part of the larger, ongoing transformation of delivering all public services more effectively and delivering better products and services. In 2011, the Ontario budget announced its commitment to reform public services as part of the strategy to balance the budget by The 2012 Ontario budget called for additional measures to reduce program expenditures over the next three years and announced Ontario s Transforming Public Services strategy, which included a number of initiatives focused on reducing the rate of spending, reducing program spending and consolidating many business support programs. As part of the strategy, Ontario ministries undertook a number of internal reviews in 2013 that included agencies, boards and commissions, to achieve savings and increase efficiency. The theme carries through to 2014 and beyond as the province remains focused on delivering better, smarter and faster public services. Government accountability During times of increased scrutiny on both public and private sector organizations, governments are even more committed to transparency and accountability in the functions they and their agencies perform. They must also be able to demonstrate the ongoing and prudent fiscal management of public funds. Transparency and public accountability are paramount now and in the coming years. 6

12 Ontario s Open for Business initiative Delivering better products and services while reducing red tape is part of the provincial government s plan to create a more competitive environment for businesses. Ontario s Open for Business initiative, launched in 2008, initially targeted regulatory changes from 2008 to In 2012, following extensive consultation, the strategy outlines activities and actions for addressing the top five barriers to greater success within each ministry and core business sector. Today, this plan remains a priority and is focused on creating faster, smarter and more streamlined government-to-business services and is a key part of the government s commitment to make the province more attractive to business while continuing to protect the public interest. For the agrifood industry, Open for Business focuses on creating a regulatory, client-centered environment that supports economic success and makes it easier for producers and industry to do business. In , OMAF is developing the next generation of Open for Business by enhancing its engagement with the agri-food industry to further identify regulatory issues and find creative solutions through government-industry collaboration 3. Political environment The political landscape in Ontario has changed over the past year. Premier McGuinty resigned in 2012, after 16 years as leader of the Ontario Liberal party, and at a time when the Liberal party has formed a minority government. Upon her appointment in January 2013, Premier Wynne announced her commitment to Ontario s $34 billion agri-food industry and spoke to its importance to the province s economy and economic recovery. To demonstrate her commitment, she took on the portfolio of Minister of Agriculture and Food. Ontario s agri-food industry is big - but it could be bigger. The sector is poised for even greater success, and with the Premier as Minister of Agriculture and Food, there is a unique opportunity to shine a light on the strength and potential of this sector. 4 Technology and innovation Today s economy relies on technological advancement to support both improved efficiency and greater accessibility. The government s e-services strategy continues to be a priority to improve service and accessibility to the public while supporting the government s initiative of delivering public services more effectively and sustaining an innovative business environment. Business and service providers are being constantly challenged to develop technology and systems to support today s business and customer needs. The internet remains an essential business tool, widely used by agricultural producers, and there is a growing trend of social networking tools such as Facebook, Twitter and YouTube. 5 Internal environment Managing change For a government-funded agency, there is always potential for change based on government policy and industry needs. The challenge becomes managing the uncertainty of the degree of change. Agricorp has been able to manage change over the years, as priorities, policy and industry needs continuously evolve. The year, 2014 and beyond will be no different. 3 OMAF and MRA Results Based Plan Briefing Book OMAF and MRA Results Based Plan Briefing Book OMAF and MRA Ag Business Update, January

13 Administrative funding In alignment with the government of Ontario s fiscal restraint, Agricorp remains committed to prudent fiscal management while providing trusted and transparent delivery of programs and services. With no growth in government program funding, Agricorp must remain committed to finding cost savings and identifying further efficiencies for program and service delivery. For several years, Agricorp has found cost savings to offset inflationary cost increases and will continue to look for efficiencies and cost savings in and future years. The agency will have a reduced budget for and expects a flat budget for subsequent years with no budget increases for inflation. In , Agricorp has been managing within two separate provincial funding envelopes, one for RMP and a second for all other programs. Two funding envelopes limit the agency s ability to adjust funding dollars between programs. Program changes Agricorp regularly reviews its program delivery model so it remains aligned to the size, scope and complexity of the programs it delivers. AgriStability has seen many changes since its inception 10 years ago. GF2 includes a further shift in program policy for the AgriStability program. Based on program design changes, Agricorp has completed a review of how it delivers AgriStability and over the next two years, delivery efficiencies will be implemented, which will also align with fiscal limitations. GF2 commits governments to a national review of Production Insurance prior to the next policy framework. Agricorp will participate in this review, following the lead of OMAF. Similar to AgriStability, Ontario s Risk Management Program (RMP) has seen yearly program changes from 2007 to The 2012 provincial budget introduced changes for the 2013 program year with a $100 million funding cap to cover program payments and administration costs, and the establishment of an industry-managed premium fund account. Agricorp has worked closely with industry and government to ensure a smooth transition for producers as the program changed. Agricorp operationalized RMP much sooner than expected and found significant efficiencies by the end of the second program year, reducing costs by $4 million. An RMP efficiency review is now being completed to identify further opportunities to improve service and/or lower costs. While there are a number of delivery efficiencies already implemented, the review will identify potential future efficiencies, such as improved online functionality for producers. These potential improvements are being reviewed and prioritized. OMAF is leading a review of the Farm Business Registration (FBR) program with industry, focused on the regulatory requirements for accreditation of general farm organizations. Any changes will be announced in An FBR review in fiscal will focus on the customer reporting and data verification requirements for program delivery. Managing industry expectations for program enhancements to Production Insurance and RMP continues to be a shared challenge of OMAF and Agricorp. In recent years, industry requests have been greater than what can be achieved. Agricorp, OMAF and industry collaborate to prioritize and balance program enhancements within today s operating environment. Workforce environment Agricorp s skilled and knowledgeable workforce has enabled the agency to respond quickly and effectively to the changing needs of the agricultural industry and governments while maintaining superior customer service. At the same time, program changes and a need to find better, smarter and faster ways to manage the day-to-day work continue to challenge Agricorp s workforce in what they do and how they perform their work. Results from the recent employee engagement survey indicate Agricorp is maintaining an engaged workforce with a strong focus on customer service and a productive work environment. The results 8

14 also showed opportunities for improvement in the work environment in areas such as leadership behaviors and role and process clarity. Agricorp continues to align its total rewards and compensation policy with the provincial government s public sector compensation framework. Technology and innovation Today s agriculture industry is embracing the fast-paced era of technological advancement as seen in the recent and dramatic increase in the use of Agricorp s online services. Advancing technology and streamlining business processes has been a strategic initiative of the agency for several years. Phase 1 of Common Foundations will be completed in Q1 of Common Foundations has enabled centralized customer data and management, integrated financial platforms, automated debt recovery practices and efficient business processes. The foundation is now in place for the future. Strategic direction The Growing Forward 2 (GF2) policy framework came into effect on April 1, GF2 focuses on innovation, competitiveness and market development to ensure producers have the resources they need to continue to innovate and capitalize on market opportunities. In addition, a suite of business risk management programs will help farmers manage risk due to severe market volatility and disaster situations. Ontario s agreement to GF2 means Ontario farmers will have access to a suite of risk management programs for the next five years. GF2 introduced program design changes for AgriStability and AgriInvest and commits governments to a review of the Production Insurance program prior to the next policy framework. Governments everywhere face challenges to improve public services while containing expenditure growth. Fiscal constraint and program design changes are two key drivers for Agricorp, as it looks to improve program effectiveness and delivery efficiency by offering faster, smarter and more streamlined services to Ontario farmers. In recent years, Agricorp has reduced program administrative costs in programs such as RMP and improved the online services offered to customers. To identify further efficiencies, the agency undertook reviews of AgriStability and RMP, examined infrastructure costs such as leases and, in collaboration with OMAF, completed the Agricorp Review. Collectively, this work has identified opportunities and challenges that were used to inform our business strategy. Several years ago, Agricorp recognized the need to document and standardize business processes that are supported by robust information technology systems. With foundational accounting and customer data systems now in place, Agricorp is more able to provide a holistic customer experience including improved online services. The agency is currently looking to replace programspecific delivery systems to gain further efficiencies. To date, Agricorp has found efficiencies without materially compromising recent gains in customer service and quality. This was validated by benchmarking completed by KPMG, which concluded Agricorp is performing similar to or better than its comparators for all indicators measured. Overall, Agricorp is balancing efficiency with effectiveness well to provide value for money relative to other agriculture business risk management organizations. Agricorp s strategic direction is similar to that of previous years but has been adjusted to reflect changes in the environment it operates in. The agency will continue to focus on operational efficiency and effectiveness, strive to make it easier for customers and staff to complete their program responsibilities and keep programs relevant for a dynamic agricultural industry. The strategy is described below. 9

15 Efficient and effective operations Agricorp is responsible for the development and implementation of all processes, systems and tools for effective and responsible delivery of programs and services. The agency regularly reviews its program delivery model to remain aligned to the size, scope and complexity of the programs it delivers. The agency has achieved consistently high ratings for customer service over the last five years and continues to be a low-cost provider of programs and services compared to similar service providers. Recent design changes to AgriStability are expected to significantly reduce the number and size of payments, and program participation is expected to decrease incrementally over the next five years. Based on these design changes, Agricorp has completed a review of how the program is administered. The review examined both customer-facing and internal business processes to ensure we align our delivery model to more proportionally correspond to the redesigned program and also to fit within fiscal limitations. An RMP efficiency review is being completed to identify further opportunities to improve service and lower administrative costs. Technology plays a critical role in enabling and driving service delivery productivity. Our IT renewal strategy, developed in response to the 2008 value-for-money audit requested by the minister, takes a fiscally responsible approach by dividing the strategy into phases. While Agricorp has made significant progress with our technology stabilizing our main program delivery systems, implementing a customer relationship management tool, developing a common system to manage accounting functions, and creating a secure web portal for customers continued investment is required. Funding for the initial phase of Agricorp s IT Renewal Plan ends in Agricorp will seek continued investment from the provincial and federal governments for the next phase. This investment will enable the agency to remain efficient and effective, and to implement current and future program design changes, providing long-term benefits in program delivery for government and industry. Expected outcomes: Efficient, appropriately scaled processes for delivering programs and services Development and implementation of a new program delivery IT system for underwriting and claim adjudication Access to more holistic information that supports policy and program development and customer needs Making it easier to do business with Agricorp Making it easier to do business with Agricorp is important for both its customers and its staff. Customers rely on technology to remain productive and competitive. They want and expect Agricorp to provide them with convenient, easy-to-use online services. To accomplish this, Agricorp staff need the capabilities, business processes and structure to enable a straightforward, efficient customer experience. Easier for customers Agricorp has laid the foundation for online services. Customers now have access to their program information and can conduct business with Agricorp through a secure web portal. With a goal to maintain customer service levels at a time of fiscal constraint, Agricorp will look to streamline processes across programs, encourage customers to use less expensive channels such as online and expand online services so customers will select digital transactions by default. Moving transactional services online aligns with the provincial government s e services strategy, will result in a more efficient self-service experience for producers and will achieve some administrative cost savings. 10

16 Easier for staff Since its inception in 1997, Agricorp has experienced significant program and organizational growth. In recent years, the agency has made changes to its business practices and improved management of the business. While Agricorp has had a good track record of managing change, there is room to be more effective in how it coordinates its efforts and expertise across the organization. The goal is to ensure the appropriate structure, processes and capabilities are developed to help the agency meet changing programs while being responsive to emerging government and industry needs. Expected outcomes: New, user-friendly online transactions for producers and their agents to do business with Agricorp Streamlined and clarified change processes including decision making and priority setting Improved ability to respond to changing and new program requirements Open for business Delivering better products and services while reducing red tape for producers and industry is part of the provincial government s Open for Business strategy to create a more competitive business environment. Agricorp s open for business strategic theme aligns with this. Our goal is to ensure the programs and services delivered today and in the future are relevant to the changing needs of the agricultural industry and reduce the administrative burden on producers. Keep programs and services relevant Relevant risk management programs provide producers with the tools they need to manage risks and the confidence to make investments and be innovative. Producers who participate in risk management programs have a level of financial security that gives confidence to other businesses they deal with, such as financial institutions and input suppliers. Relevant risk management programs also reduce the need for governments to fund ad hoc programs. Agricorp has effectively implemented recent design changes for RMP and AgriStability, meeting government expectations. The agriculture industry has high expectations and continues to request enhancements to programs such as Production Insurance. In recent years, Agricorp has had limited capacity to develop and implement these enhancements. However, a small number of critical enhancements have been implemented for forage, fruit and vegetable Production Insurance plans. The number of program enhancements requested by industry exceeds the agency s capacity for these types of changes. Over the next three years, Agricorp will continue to focus only on high-priority program enhancements. For example, it will meet the commitments made by the provincial government to improve forage and fruit plans, and make the changes mandated under GF2. This will require the agency, in partnership with OMAF, to continue to manage expectations with the industry. It is important that the ministry and agency continue to work together to ensure appropriate investment in program changes in an environment of fiscal constraint. Agricorp and OMAF are also committed to enhance the governance model and joint operational processes to best leverage the collective expertise towards optimal business risk management policy analysis, advice to the minister and product development. Reduce the burden on producers The agency will contribute to the provincial government s Open for Business initiative to create faster, more streamlined government-to-business services. Agricorp will work with OMAF in a few focused program areas to reduce the burden on producers for multiple, duplicative reporting or 11

17 contacts across programs when doing business with the Government of Ontario. Consolidating the delivery of similar or like programs for Ontario producers can help producers better connect with a range of programs and services, reduce duplication, reduce annual ongoing program delivery costs, and ultimately support OMAF in fostering competitive, productive and sustainable agri-food businesses. Expected outcomes: Enhanced programs and services that remain relevant to the changing needs of a competitive agricultural industry An enhanced policy model that leverages agency and ministry program expertise Consolidated delivery of like or related programs to offer producers easier access to programs and services Implementation plan Recognizing the current fiscal limitations, Agricorp s actions are focused on continuous improvement of programs and services while supporting the broader government initiative of improving efficiencies in public service delivery to achieve better value-for-money. Implementation is focused on improvements to core businesses that will support the agency in maintaining a high level of service to customers and government while maintain programs that are relevant for producers today and in the future. Efficient and effective operations Agricorp has and will continue to advance efficient and effective delivery of programs and services. It will balance the needs of customers and government through the prudent use of public funds to improve both internal and customer-facing processes and the IT systems that support them. In the current environment of fiscal constraint, Agricorp will strive to maintain its current service levels while making incremental improvements. Initiatives Complete a business case and secure funding from the provincial and federal governments for phase 2 of the IT renewal strategy Timeline: in Implement AgriStability program delivery efficiencies to align program delivery processes with program design changes Timeline: incrementally through 2016 Complete the integration of program delivery IT systems (e.g., Zephyr) with the common accounting IT system Timeline: incrementally through 2017 Making it easier to do business with Agricorp Making it easier to do business with Agricorp means enhancements and change for both Agricorp customers and staff. Internally, the agency will ensure it has suitable structures, processes and capabilities in place to enable staff to meet customer needs. Leveraging these capabilities and implementing additional online service capabilities will make it easier for customers to do business with Agricorp. 12