Three-Year Strategic Plan
Table of Contents
Corporate Profile .........................................................................................................1
Strategies for Moving Forward ................................................................................6
Risk Assessment and Management ..................................................................... 11
2007-2010 Financial Plan ....................................................................................... 13
Appendix - Communications Strategy................................................................ 15
Agricorp’s legislative mandate, as outlined in the AgriCorp Act, 1996, is two-fold:
To administer the Production Insurance program and the Crop Insurance Act, 1996,
To perform other duties conferred by any other Ontario act, order-in-council, or
The recognized providers of agricultural risk management products.
We connect producers with programs. We partner to develop risk management
programs that are flexible to the changing needs of agriculture.
Delivery is our strength. We focus on quality and efficiency in delivering our programs.
Our people are the foundation of our success. Collaboration and continuous
improvement harness our many strengths for a common focus.
Customers are our priority. We help producers remain financially secure, retain current
markets and reach new ones with professional, quality and efficient assistance.
We invest in the future of agriculture. We support our community in becoming a
better place to live, work and prosper.
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
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.
Agricorp’s Role in the Ontario Agri-food Industry
Agricorp is the trusted and efficient partner in delivering programs that help manage
agricultural risk. With its excellent customer service and reliable, cost-effective
delivery, Agricorp has received national and international recognition.
As an agency of the Ontario government, Agricorp delivers government and non-
government risk management programs.
Agricorp has built a strong reputation for being customer-focused and working
collaboratively with industry to deliver more effective products and government
programs aimed at managing risks. The organization’s expertise in effective program
design and efficient delivery give it an advantage in partnering with industry and
government to help producers manage all kinds of risks, including financial, food
safety, environmental and market security.
The five-year, federal-provincial-territorial Agricultural Policy Framework (APF)
provides a long-term structure to help ensure the sustainability of Canadian
agriculture. Agricorp is known for its integrity and enjoys a strong relationship with
producers, allowing the organization to expand into new service areas under the five
chapters of the APF: food safety and quality, environment, industry renewal, science
and innovation, and business risk management.
Current Programs and Major Initiatives
Canadian Agricultural Income Stabilization
Farm Business Registration Plum Pox Eradication
Grain Financial Protection Program Dairy Credit Program
Advance Payments Program Product Verification
In developing the strategic plan, we conducted a scan to gain an understanding of the
environment Agricorp is operating in today. A review of internal and external factors;
trends, events, and relationships, have the potential to influence and shape the
This assessment provides the basis for key assumptions factored into our corporate
strategies and a better understanding about how the world around us is changing our
The following are some key areas identified:
Federal, Provincial, and Global Policy Shift
The next generation of agriculture and agri-food policy is currently being developed
by the federal and provincial governments and will provide new and modified
programs in the areas of risk management, market security and traceability, food
safety, and the environment.
Increasing planning capacity, being prepared for program changes and ad hoc
Being proactive in policy development and partnerships with stakeholders
preparing to respond to changes in policy and priorities that affect program
delivery arising from international agreements
Trade, Commodity, and Economic Issues
Financially stressed producers have increased their demands and expectations for
future program enhancements to existing plans and new product coverage.
Finances are stressed, increasing pressure on greater program funding and
Producers are also facing market pressures to produce differentiated and
Stakeholder consolidation is resulting in a more unified voice
Increasing demand on how and what food is produced, and the quality of the
Improvements in business processes for programs, including enhanced support for
change management, training, and documentation
Collaborate with industry and other jurisdictions to share knowledge
ensure good governance and strong board leadership
Engage across internal divisions for improved efficiencies, quality-based
communications, and learning opportunities
Technology and Innovation
Long-term IT strategies and improved enterprise architecture are required to improve
efficiencies in program delivery. Business requirements have changed requiring a
more sophisticated and innovative approach to opportunities.
Increased demand for multiple delivery channels and the availability of online
High expectations for improvements in delivery of Production Insurance and
CAIS, and integrated, simple access to programs
Varying standards for traceability, food safety, and quality in countries Ontario
producers trade with
Agricorp’s customers are increasingly more professional, sophisticated, and
business-focused with specific needs
Strategies for Moving Forward
Agricorp delivers an array of programs to the agriculture and agri-food industry. Our
two largest programs, Production Insurance (PI) and the Canadian Agricultural Income
Stabilization (CAIS) program are considered “core” risk management programs under
the federal-provincial Agricultural Policy Framework (APF). Other programs Agricorp
delivers include Farm Business Registration, Grain Financial Protection, Plum Pox
Eradication, and the Advance Payments Program.
The strategies in the 2007-2010 Strategic Plan are designed to enhance program
delivery and customer service with systems and infrastructure upgrades, integration of
the CAIS and PI call centres, and several process changes identified during the
Business Improvement project.
In the next three years, integration will be a key priority that reaches across all
objectives. Agricorp delivers several risk management programs, in many cases to the
same customer. The synergies that exist between programs provide opportunities for
both greater customer service and enhanced delivery efficiencies. To provide a single
point of contact for its customers, Agricorp must develop the appropriate
The following section outlines the initiatives that will help Agricorp achieve these
strategic objectives. This strategic plan represents the foundation of the
organization’s planning for the next three years, linking the organization’s activities to
its mandate and strategic objectives. On an annual basis, detailed operational plans
will further the achievement of these objectives.
Our objective is to recognize, respect, and satisfy the needs of our customers by
providing proactive, reliable, customer-focused service in delivering programs that
help producers remain financially secure. Agricorp will build upon our solid
reputation by improving customer satisfaction through consolidated customer
interactions across programs and a choice of multiple delivery channels, including
more self-service options.
Our objective is to be the trusted, transparent partner delivering programs on behalf
of our stakeholders with integrity and professionalism. Continuously improving data
management strategies and implementing a proactive internal audit cycle to identify
and resolve potential issues will solidify Agricorp’s reputation as the recognized
deliverer of risk management programs.
Our objective is to improve quality and efficiency in delivering our programs. Effective
and efficient internal processes and technology will enable Agricorp to satisfy our
customers’ needs. Agricorp will focus on continuous improvements in processes,
technology, quality, and increased flexibility of our delivery infrastructure to meet
standards for service, compliance, and security.
It will be important to invest in ongoing resources to support enhanced delivery of
programs, ensuring all staff have the right tools, program knowledge, and training to
effectively inform customers about all of Agricorp’s risk management programs.
Product Market Commitment
Our objective is to be a partner in developing innovative products and services that
help our customers manage risk by examining current programs, anticipating future
needs and partnering with industry to design, deliver and verify products.
Strengthening our ability to support and influence program and policy changes and
building upon existing Production Insurance plans will improve Agricorp’s ability to
develop and deliver products that are relevant to customers’ needs.
Continuously developing supporting systems in line with enterprise-wide architecture
strategies is necessary to achieve this objective.
Our objective is to have engaged, respected and skilled employees. Agricorp will
continue to integrate human resources planning with business planning to ensure the
right people are in the right place at the right time to deliver key services.
Building a flexible workforce is key to ensuring resource availability that responds to
both short and long-term initiatives. At the same time, we will strive to attract, retain
and motivate the very best talent.
Our objective is to build a sustainable, flexible organization by ensuring that our plans
today secure a supported organization in the future.
This entails implementing an enterprise architecture blueprint and addressing the
need for modern, robust, and integrated IT infrastructure and systems.
Agricorp’s scorecard balances several equally important perspectives in our planning:
customer service, public accountability, delivery excellence, products and markets, our
people, and a strong future orientation. The scorecard outlines Agricorp’s strategic
objectives, initiatives, and measures for the next three years. These areas have been
identified as critical to Agricorp’s success and are not listed in order of priority.
Agricorp’s Balanced Scorecard 2007-10
Pillars Strategic Objectives Performance Measure Targets Initiatives
Customer Service Recognize, respect Customer satisfaction with the Maintain a positive trend or Improve and consolidate
(Providing proactive, and satisfy the quality of service as measured achieve above previous customer interactions across
reliable, customer- delivery needs of our twice yearly by a customer survey results. programs. (common customer &
focused service.) customers. satisfaction survey. financial)
Effective customer dispute Establish a baseline in 2007- Provide our customers with a
resolution process measured 08. choice of multiple delivery
annually. channels; however, encourage
the use of self-service.
Public Accountability Trusted, transparent Quality and quantity of corporate Establish a baseline in 2007- Enhance Agricorp’s data
(Delivering programs delivery of programs. and program delivery information 08. management strategy.
on behalf of our available to the public on
stakeholders with www.agricorp.com as measured
integrity and annually by a customer satisfaction
Proactive identification and Establish a baseline in 2007- Implement the internal audit
resolution of program delivery 08. cycle and action on findings.
issues as measured annually by a
customer satisfaction survey and
informal feedback from
Delivery Improve quality and Quality and consistency of internal Meet or exceed national CAIS Enhance delivery of the CAIS
(Internal processes efficiency in delivering delivery processes within and and PI delivery standards program through improved
and technology. our programs across programs. annually. processes and technology.
value and flexibility of Enhance delivery of the PI
delivery infrastructure program by capturing better
and meeting information and leveraging our
standards for service, field force. (EDMS, field force
compliance, and renewal)
Investment in continuous process Breadth and depth of Standardize common processes
improvement initiatives. standardized processes across programs. (Common
across programs delivered by financial)
Investment in product research Invest $2 million for each of Enhance PI to improve our
Product-Market Be a partner in and development. the next three years (up to 5% offering for the horticulture,
Commitment developing innovative of operating budget). livestock, and differential traits
(Looking objectively products and services sectors.
at current programs, that help our
anticipating future customers manage Breadth and depth of production 5-12 new products or product Evaluate viability of new and
needs, and helping risk. risk coverage across sectors. enhancements considered, existing programs.
industry design, developed or implemented
deliver and verify annually.
products.) Effectiveness of products as Maintain participant uptake Strengthen our ability to
measured through participant for existing products. influence and support program
uptake. policy change.
1-3 points of contact with
potential participants of new
People Engaged, respected Employee engagement as Achieve improvements of 5% Attract, retain and motivate the
(Ensuring the right and skilled employees. measured annually through or better over three years in very best talent.
people are in the right employee engagement survey. 2-3 areas of employee
place at the right time engagement as identified by
to deliver key the 2006 baseline survey
100% of Individual Build a flexible workforce that
Performance Plans aligned ensures resource availability to
with strategic objectives by respond to both short and long-
the end of the first quarter. term initiatives.
Future Orientation Build a sustainable, Strength of business planning Annually achieve 75% of Build external relationships with
(Ensure that our plans flexible organization. process in anticipating changes in planned corporate priorities. like-minded organizations to
today secure a the external environment. keep a pulse on environmental
organization in the
future.) Investment in Invest $5 million for Establish and implement
infrastructure. each of the next four enterprise architecture
years (up to 15% of governance, practices and
operating budget) processes to guide IT investment.
alignment with the
Risk Assessment and Management
The risk assessment and management overview is intended to provide reasonable assurance
that all key risk management processes and systems are robust and reliable. The risk
mitigation strategies determine the extent to which day-to-day program delivery and the
organization’s business objectives are achievable. Principle risks for the organization are
identified below along with mitigation strategies.
Risk Mitigation Strategy
Significant change in program Partnership with OMAFRA for national working
policy and /or design groups (BRM, CAIS and PI)
Deputy Minister address Board of Directors
Higher than warranted and/or Production Insurance Risk Management Strategy
projected program payments in place, which includes:
Documented and appropriate levels of CAIS file
verification and audit processes.
Failure to meet stakeholder Compliance with OPS service standards
expectations Code of Conduct and Ethics signed by all Board
members and employees
Effective business planning
Positive relationship with funding partners to
ensure sufficient funding
Failure to meet customer Channels for customer feedback include call
service expectations centre and field staff interactions, annual customer
Customer Dispute Resolution process and
Customer Advocate position in place to address
customer issues in a timely manner
Issues Log managed by Compliance Officer to
document and monitor program delivery issues
Poor data integrity Adhere to Data Integrity Policy
Documented quality assurance processes
Corporate Business Continuity Contingency plan for payroll, data recovery, IT
Appropriate business processes Internal Audit Plan
Key policies in place
Unsecured data Adhere to privacy legislation, FOI
Security audits performed externally
Infrastructure and system disaster recovery plan in
Sound data backup and restoration strategy and
processes in place
Documented process for third party consent
Employee Engagement Human Resources Advisory Committee to provide
a forum for employee ideas and concerns to be
Employee Engagement Survey
Performance based compensation system
Employee driven non-monetary recognition
Orientation program for all new employees
Corporate training and development program
Sufficient employee capacity Compentency framework/model (skills inventory)
Resources Planning Committee and Workforce
Retention of corporate planning
Training and development strategy
Health and safety Joint Health and Safety Committee
Policies posted on Agri-Net for employee access
2007-2010 Financial Plan
Agricorp General Fund Total 2007-2010
2006-07 2007-08 2008-09 2009-10
Revenue- Operating Forecast Plan Plan Plan
Canada-Operating Transfer 18,240 21,420 22,260 21,660
Ontario-Operating Transfer 11,760 14,280 14,840 14,440
Sales, Consulting, Other Services 7,200 8,000 7,200 6,700
Interest Income 200 100 100 100
Revenue Total 37,400 43,800 44,400 42,900
Production Insurance (PI) 12,400 16,000 16,700 16,900
Income Stabilization (CAIS) 15,000 19,700 20,400 19,200
Plum Pox Eradication 5,700 5,700 5,200 4,600
Other Programs 4,200 2,300 2,000 2,100
Expenses Total 37,300 43,700 44,300 42,800
Operating Contribution/(Loss) 100 100 100 100
General Fund Balance, end of year 7,710 7,810 7,910 8,010
General Fund Notes:
1. For 2007, Agricorp’s plan includes improvements to Production Insurance and a multi-
year investment in Information Technology of $20M over the next four years.
2. This plan allows for cost escalation of 3% per year, and includes carry-over costs for
delivering the Canadian and Ontario portions of the CAIS Inventory Transition
3. Operating expenses are currently cost-shared 60/40 between Canada and Ontario.
4. The operating fund balance was accumulated from contract work and start-up funds
since Agricorp was established as a provincial operating agency in 1997. It serves as a
cash flow fund providing about two months of operating costs.
5. Agricorp employs about 400 staff who deliver programs across Ontario.
Scope of Business
1. Agricorp delivers program benefits of from $400 to$600M annually to about 30,000
producers. Agricorp’s operating costs as shown above range from $35M to $44M
2. Production Insurance premium revenue forecasts range from $110M to $130M per
year, with historic claim rates averaging 7.5% of total liability or about $120M.
3. The Production Insurance Fund balance currently stands at about $310M.
4. CAIS program payment forecast at $220M for 2005 and the 2006 program estimate
ranges up to $338M (at February 2007).
5. Revenue generated by CAIS fees of approximately $10M annually is collected on
behalf of Canada and Ontario.
Appendix - Communications Strategy
Over the next three years, Agricorp will proactively work towards expanding our reputation
within the industry beyond delivering Production Insurance to being an important partner in
helping producers remain financially secure, retain current markets and reach new ones. To
do so, Agricorp’s reputation for efficiency, professionalism and high-quality program delivery
must be reflected in every interactionwe have with our customers, whether written, oral or
Our communications must provide clarity about the value Agricorp brings to the agri-food
industry, our customers and our employees. The following positioning statement should be
consistently used to describe Agricorp:
Agricorp partners with government and industry to deliver programs that help the
Ontario agri-food sector manage risks. The organization has earned a reputation for
proactive, reliable, customer-focused service in delivering programs that help producers
remain financially secure, retain current markets and reach new ones.
To better meet the communication needs of our customers, Agricorp must understand the
most effective methods of connecting with them. This includes learning how best to deliver
information our customers will notice, understand and respond to when necessary, and
becoming more responsive to customers’ concerns. The following objectives support the
three-year strategy for Agricorp.
To broaden Agricorp’s By integrating marketing and communications
reputation. across programs so Agricorp will be seen as
delivering an array of programs that help
producers manage risk.
To deliver a consistent By delivering consistent communications (written,
customer experience. spoken and visual).
By reflecting our core qualities in all customer
interactions: proactive, collaborative, quality-
focused, efficient and professional.
To continually improve on how By identifying, managing and analyzing
we meet customers’ information to better understand trends and
communications needs. issues to effectively evaluate and improve