2020–2023 Agricultural Research Institute of Ontario business plan

Executive summary

The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) is the provincial lead overseeing Ontario’s thriving agri-food industry. OMAFRA works to advance the Government of Ontario’s efforts to promote a more competitive and productive agri-food and agri-products sector, economic growth and opportunities for rural Ontario. Keys to achieving success include ensuring protection and assurance in the agri-food system (such as food safety and animal, plant and human health); providing stewardship of Ontario’s capacity to produce food (such as soil and water quality, climate change) and fostering economic development of the agri-food sector and rural Ontario (such as food processing, bioproducts).

The Agricultural Research Institute of Ontario (ARIO) is a provincial agency reporting to the Minister of Agriculture, Food and Rural Affairs. ARIO’s mandate includes recommending areas of research for the betterment of the agri-food sector and to stimulate interest in research to support production efficiency and marketing of agricultural products. ARIO has focused on ensuring Ontario maintains its competitive advantage in agri-food and agri-products research and innovation and concentrates its efforts in these four ways:

• providing strategic advice to the minister on agri-food and agri-products research and innovation
• implementing the ARIO’s Infrastructure Strategy to modernize the province’s agri-food and agri-products research and innovation physical and virtual infrastructure
• promoting the Ontario agri-food and agri-products research and innovation system
• providing administrative and managerial oversight of open research programs the (for example, Ontario Agri-Food Research Initiative and the 15 ARIO owned research properties with over 6,500 acres, 280+ buildings with a book value of approximately $100 million and over 30 tenants that include government, not for profit, industry and private sector)

Key accomplishments

Research Infrastructure Strategy

ARIO’s Research Infrastructure Strategy (the Strategy), provides a plan for modernizing Ontario’s network of agri-food research infrastructure and platforms. The Strategy’s objective is to promote and support a system of modern, state of the art, integrated, multi-disciplinary research and innovation platforms focused on consumer, market and economic outcomes. The expected benefits of the Strategy include driving innovation through the creation of new and value-added products, developing solutions to current and emerging issues and validating new technologies and approaches for Ontario.

Research and innovation are critical to maintaining and strengthening the competitiveness and sustainability of the sector both provincially and globally. Modernized, relevant research infrastructure enables scientific excellence, knowledge dissemination and industry adoption, all of which are necessary for the economic growth of the agri-food and agri-products sector.

As the government moves forward with its plan to return Ontario to a stronger fiscal footing and recover from COVID-19 impacts, the ARIO plans to make strategic infrastructure investments that support economic growth, job creation and investment in relevant agriculture and food research. The Strategy is supported by industry which contributes capital dollars to projects (typically 20%) and is guided by two key pillars; modernize research infrastructure and drive operational efficiencies across the research station portfolio through consolidations of facilities and livestock.

ARIO owns several research stations that are a platform for provincial research. By investing in modern and more efficient facilities; ARIO is able to elevate the capacity for cutting-edge research in the province; and at the same time reduce the overall footprint of older buildings and facilities which no longer adequately serve the needs of the research community and are costly to operate and maintain.

Evidence of this reinvestment in research infrastructure can be seen in various ARIO projects across the province:

• Completion of a new Agronomy Research Services building at the Ontario Crops Research Centre at the Winchester Research Station in Spring 2019. The new building supports the field crops research needs of eastern Ontario and has allowed ARIO to dispose of a wide range of older field crops buildings which were expensive to maintain and past their useful lifecycle.
• Site preparation at the Ontario Crops Research Centre (at the New Liskeard Research Station), for an Agronomy Research Services building. Construction is expected to start in 2020. This build will allow ARIO to dispose of a wide range of older field crops buildings which were expensive to maintain and past their useful lifecycle as research facilities.
• Relocation of the Ontario Turfgrass Research Centre and accompanying research plots to the University of Guelph arboretum. Construction is currently underway and anticipated to be complete in fall 2020. The relocation of turf grass research allows for the disposition of old facilities and lands within the City of Guelph to a single modern and efficient facility located in closer proximity to the University of Guelph.
• Construction of the new Ontario Beef Research Centre (at the Elora Research Station) cow/calf facility was completed in September 2019 and is now operational. This state-of-the-art building for beef research, in conjunction with other planned builds to renew feedlot and feed storage capacity, will allow for the consolidation of the province’s beef research herd to Elora. This construction allows ARIO to dispose of several older beef buildings and structures, no longer suitable for research purposes.
• Advanced design of the new Ontario Swine Research Centre at the Elora Research Station commenced in September 2019.
  • The new centre at Elora will replace the present facilities at Arkell which are well past their useful lifecycle and costly to operate and maintain.
  • The planned research facilities will more closely resemble the current state of industry production taking place in Ontario, leading to better applied research outcomes for the sector.
• The ongoing work and completion of these major projects is evidence of how the ARIO Infrastructure Strategy is working effectively to modernize the research station portfolio and establish state-of-the-art research infrastructure in the province with strong industry participation in research planning, program oversight and capital investment.

Minor capital program

The ARIO minor capital program is an ongoing multi-year program that allocates funds across the ARIO property portfolio to support the repairs, life cycle renovations and program-related improvements and repairs to the buildings and land. The program is funded through an annual transfer payment from OMAFRA and is supplemented by revenues generated by the ARIO (such as tenant revenues). The minor capital funding from OMAFRA continues to allow ARIO to maintain and manage its network of research properties across the province.

As property manager, the University of Guelph administers the annual minor capital program at all locations, except for the Vineland Station research property. The Vineland Research and Innovation Centre (VRIC) is the property manager for the Vineland Station and administers the minor capital program as part of their responsibility for overall operations and site management.

The minor capital program continued to fund a wide range of maintenance and upgrade projects to maintain and improve the capability and research capacity of the entire ARIO infrastructure portfolio. Safety (human and animal), regulatory, building integrity and equipment failure issues, that affected building and program operations across the network of ARIO facilities, were addressed on a case-by-case basis throughout the year.

Property management

Under the terms of the 2018 Agreement between the University of Guelph, ARIO and OMAFRA; the University of Guelph and the VRIC, in addition to providing program delivery, operate the ARIO-owned research infrastructure portfolio and provide property management services under agreements with ARIO. The agreements for property management and support are in place until 2023.

Research programs

Research priority setting

In 2019, OMAFRA launched a new internal research governance and process to guide research priority setting. The process involved OMAFRA’s experts to identify agri-food and rural research priorities and to integrate stakeholder’s research need into OMAFRA’s priority setting process.

As a result of this new priority setting process, OMAFRA reorganized former research theme priorities into 10 new research priority areas (food safety, animal health and welfare, plant health and protection, soil health, water quality and quantity, sustainable production systems, competitive production systems, innovative products and products improvement and trade, market, targeted sector growth opportunities).

These priorities will inform the call for research proposals under the Ontario Agri-Food Innovation Alliance and the Ontario Agri-Food Research Initiative going forward.

Knowledge translation and transfer

Knowledge translation and transfer (KTT) supports and accelerates research knowledge into use by working with researchers to develop and implement KTT plans. Ministry KTT activities also include inviting speakers to give presentations to staff, sharing research results with stakeholders and organizing open knowledge sharing events. Due to COVID-19, many of the KTT events have shifted to a virtual platform, creating an opportunity to expand the audience and reach. Over the upcoming year, additional enhancements to the Ministry’s KTT processes and overall strategy continue to be implemented.

Ontario Agri-Food Research Initiative, New Directions and Food Safety Research Programs

In 2020, the Ontario Agri-Food Research Initiative (OAFRI) was created. This program offers funding for research that stimulates innovation to support the growth and competitiveness of Ontario's agri-food sector, promotes food safety and strengthens rural communities.

This new research initiative combines and builds on the success of OMAFRA's former New Directions and Food Safety Research Programs. is funded through external funding and is no longer supported with ARIO funds. The legacy projects funded in prior years will continue as planned until complete.

Mandate and mission statement

Background

The Agricultural Research Institute of Ontario (ARIO) was created in 1962 and continues its mandate under the Agricultural Research Institute of Ontario Act. R.S.O. 1990, c. A.13 as amended (ARIO Act) and reports to the Minister of Agriculture, Food and Rural Affairs.

ARIO’s strategic priorities supporting OMAFRA’s current goals and objectives are described in Section D and are summarized under four main categories as:

1. Strategic Advice
2. Leadership – Implementation of the ARIO’s Infrastructure Strategy
3. Promoting Ontario Agri-Food and Agri-Products Research and Innovation
4. Managerial Oversight – of the ARIO owned research infrastructure and research programs

ARIO mission statement

ARIO has adopted the following mission statement, in support of OMAFRA’s vision for successful and sustainable agri-food and agri-products businesses:

ARIO, as appointed advisor to the minister on strategic directions for research activities that contribute to prosperous, competitive and sustainable agricultural and food sectors in Ontario, is dedicated to the strategic use of science and innovation to enhance the sustainability and profitability of Ontario's agri-food sectors

The current MOU between OMAFRA and ARIO was revised to ensure alignment with the 2016 mandate review and the requirements of the Agency Accountability Directive (AAD) and was signed in June 2019.

ARIO’s mandate for 2020–21

ARIO’s mandate for the 2020–21 fiscal year is as follows:

Property management

• Continue to provide value for money in effectively owning and managing the Province of Ontario's agri-food research facilities and infrastructure.
• Continue to revitalize the province’s agri-food research infrastructure necessary to support innovative research and the long-term sustainability and growth of the agri-food sector in Ontario by developing state of the art, integrated research infrastructure capacity built on shared funding models and partnerships between industry and government.

Strategic advice

• Continue to provide strategic advice to me and the Ministry on current research issues and priorities that contribute to prosperous, competitive and sustainable agricultural and food sectors and rural communities in Ontario.
• Provide strategic advice to me and the Ministry on the long-term research needs of the agri-food sector that will enable the agriculture and food sectors to remain a global leader in years to come.

Promotion and advocacy of Ontario’s agri-food and agri-products research and innovation system

• Advocate for the value of OMAFRA's agriculture research system through focused outreach opportunities, building relationships between ARIO and industry stakeholders to broaden awareness, engage and seek support for research and innovation priorities and the research infrastructure renewal needed to maintain and strengthen Ontario’s local, national and global competitiveness.
• Develop a plan to better communicate the value and return on investment for ARIO infrastructure and the research system it supports.

Efficient and effective administration

• Continue sourcing secretariat services from OMAFRA that provide effective and efficient administration of Ministry open research programs, timely and accurate financial operations and reporting, and all aspects of property management and capital revitalization.
• Continue to meet all AAD provisions and requirements.

Environmental scan

Building a sustainable and thriving agri-food research and innovation system

This environmental scan describes the environment in which ARIO operates. It identifies key trends, events and issues that present risks and opportunities to the agency. This allows ARIO to be proactive in assessing and responding to changes in the internal and external environment that could have an impact on the operation of the agency.

External factors

COVID-19

• The COVID-19 pandemic has had significant impacts on research and station activities. Direction during the pandemic is to scale back and shut down non-essential research activities.
• Since March 2020 research stations were closed to all non-essential staff and as of June 2020 had a gradual return for non-essential staff for research activities.
• ARIO, in consultation with OMAFRA and the University of Guelph, have put in place additional policies and procedures to support essential research station operations.
• Due to the pandemic, further shut down of non-essential business were directed by the government including some construction activities. As a result, this has caused some minor delays to ARIO capital projects.

Legislative and policy reviews

• The ARIO will examine its current legislative framework under the ARIO Act and non-legislative mechanisms, such as the MOU and ARIO’s mandate letter, with a view to modernize and better align legislative and administrative authorities, if appropriate.
• ARIO has been investigating options to ensure its mandate and enabling legislation are relevant for the modern agri-food sector.

Fiscal environment and economic outlook

• The Government of Ontario continues to look for ways to transform programs, manage compensation costs, ensure fair taxation and realize the value of provincial assets.
• The impacts of COVID-19 will likely increase the pressure on provincial budgets. ARIO will continue to provide good value for money and continue to plan to operate within budget while continuing to implement the infrastructure strategy. This will help to realize the value of provincial assets and its investments in research infrastructure and streamline operations through the disposition of the remaining portions of the Alfred and Kemptville research stations.

Changes and trends in the environment

• The changes, trends and challenges facing Ontario’s agri-food sector that will require research resources which ARIO can provide include:
  • Changing climatic conditions are having a global impact and impact the Ontario agri-food sector.
  • The Ontario agri-food sector will need to invest in soil health and water and energy efficiency systems to build resilience and competitiveness into their production and processing enterprises.
  • Consumer demand will continue to shape the agri-food sector and add more complexity. For example, Ontarians are requesting healthier and culturally-appropriate foods to accommodate health, disease, intolerances, allergies and medicinal qualities. To meet these demands, retailers are responding by requesting specialized products and more variety, as well as changes in the way food is produced and processed by demanding safety, traceability, variety, and affordability.
  • Advances in genomics and biomarkers for health and disease will enable designer-food products that are customized to meet the needs of specific consumer segments. This will create a significant increase in niche markets, specialization and complexity.

Demographic shifts, labour market conditions, labour relations and employment conditions

• The generational transition that will occur in the agri-food sector over the next 10 to 20 years will also influence the uptake and adoption of new technologies, as well as adaptation to changing climatic conditions and emerging market opportunities. As the younger generation takes over leadership roles in the agri-food sector, adoption of technology will become more rapid.
• The agri-food sector is moving from being labour intensive to a greater focus on technology in response to the increasing labour costs and the difficulty in attracting and retaining staff.
• The 2017 Planning for Tomorrow 2.0 report completed by the Ontario Agricultural College (OAC) at the University of Guelph indicated that there are approximately four jobs for every OAC graduate entering the agri-food sector.

Internal factors

Fiscal responsibility

• Ministry staff who provide administrative secretariat services to ARIO (the “ARIO Secretariat”) will be a key resource to find cost savings in relation to the management of the research portfolio.
• ARIO will continue to seek a shared financial commitment with industry on all research capital infrastructure projects.

Funding agreements

• Canadian Agricultural Partnership (CAP) Agreement: CAP is a five-year commitment by Canada’s federal, provincial and territorial governments to support Canada’s agri-food and agri-products sectors. CAP program funding provides opportunities to address emerging priorities and challenges faced by our agri-food sector.
• OMAFRA-ARIO-University of Guelph Agreement, known as the Ontario Agri-Food Innovation Alliance (the Alliance), supports research and innovation, lab services and veterinary capacity for the agri-food sector.

ARIO’s role in OMAFRA’s ministry research priority setting and governance exercise (foresight)

• In the fall of 2019, OMAFRA embarked on a strategic foresight exercise. ARIO members were engaged through the process to provide industry feedback on foresight planning, informant interview results and emerging issues in the agri-food sector. The Foresight exercise results will be used as an input to the ministry’s research priority setting process. In addition, results of this work could be used to inform long-term COVID-19 recovery strategies to help build future resilience into the system.
• ARIO will continue to play a strategic role in research priority setting and integrating strategic foresight into this process. ARIO’s advice will guide short, medium and long-term investments and advance the ministry’s research agenda. Consideration of research infrastructure needs related to the outcomes of the ministry’s research priority setting process, identification of emerging issues in the agri-food sector, and communication of research results and Knowledge Translation and Transfer opportunities are examples of ARIO’s strategic role.

In conclusion, ARIO will continue to support the success of the agri-food sector by:

• Providing advice on research initiatives, while considering the economic, social, and environmental landscape.
• Supporting objective and unbiased research that advances the competitiveness agri-food sector and province’s priorities.
• Implementing the ARIO Infrastructure Strategy to provide modern, state of the art research platforms.

Strategic direction, programs and implementation

Together, the director of research for ARIO, the ARIO Secretariat and the ARIO members will continue to focus their efforts on four key aspects of the agricultural research system. The director of research for ARIO, the ARIO Chair, the ARIO Secretariat and ARIO members have been, and continue to be, responsible for these key programs and activities.

Provide leadership: implementation of ARIO’s Infrastructure Strategy

In support of the ministry’s mandate to support growth of the agri-food sector, the ARIO plays an important role in modernizing the agri-food and agri-products research and innovation system. The ARIO’s Infrastructure Strategy initiative is the roadmap for modernizing research infrastructure and strengthening innovation in Ontario by providing state of the art, modern research platforms.

• Consolidation of livestock research at the Elora research station, including working with industry to plan for the relocation of livestock research activities to the Elora Research Station from the current Arkell Research Station where current research infrastructure is nearing the end of its useful lifespan.
• Working with the turfgrass industry and the University of Guelph to continue construction of the new research facilities and plot grounds supporting the turfgrass sector and commence relocation activities from the Guelph Research Station to the University of Guelph Arboretum and the Elora Research Station.
• Continue construction of the new field crop research services building in New Liskeard and Ridgetown.
• Continue to refine, develop and implement investment options as part of ARIO’s long-term Infrastructure Strategy.

Provide strategic advice

• The ARIO chair has begun sending meeting report letters directly to the minister. These letters provide highlights of meeting discussions and recommendations and has created a direct and more frequent means for the provision of advice.
• The strategic planning exercise initiated in 2018/19 is now complete. The project has confirmed the roles and responsibilities of ARIO and will help inform the recommendations for future members through a clear understanding of required skills and competencies. This planning will also support the agency in preparing for future trends that may impact the ARIO and enhance its ability to provide advice on ministry research priority setting and outcomes.
• Using the results of the ministry’s strategic foresight exercise to help shape and inform advice to the minister, input to the ministries research priority setting, and long-term recovery strategies related to COVID-19.
• Provide advice related to new Ontario Agri-Food Innovation Alliance, the Canadian Agricultural Partnership and the Ontario Agri-Food Research Initiative.

Promote Ontario’s agri-food research and the ARIO’s Infrastructure Strategy

ARIO will look for ways to generate increased awareness of OMAFRA’s agricultural, agri-food and agri-products research priorities and generate buy-in for the ARIO’s Infrastructure Strategy through increased ARIO engagement with agri-food industry stakeholders. As part of this process, ARIO will seek out strategic opportunities to engage stakeholders on emerging issues and trends that may impact future research and related infrastructure needs. Through focused outreach and communications opportunities ARIO will:

• Raise awareness of Ontario’s efforts to advance agri-food research and innovation programs, modernization efforts and strategic collaborations.
• Champion ARIO infrastructure investments and communicate the return on investment for ARIO investments supporting the research system.

Provide managerial oversight

• ARIO will continue to provide operational and managerial oversight of the 17 agri-food research properties comprised of over 280 buildings, over 6,500 acres and over 30 tenants (both government and non-government) to ensure continuing effective and efficient management of the research property portfolio in support of the various research programs.
• OMAFRA provides $4.5 million in annual funding to ARIO in support of the Minor Capital Program. ARIO Secretariat will continue to work collaboratively with the University of Guelph and Vineland Research Innovation Centre to fund critical projects that maintain and enhance the quality of the research stations.
• Oversee the management of financial operations/programs related to the agri-food research properties and the financial reporting, and administration of related transfer payment agreements on behalf of OMAFRA.

Resources needed to meet goals and objectives

Resources to meet ARIO’s goals and objectives are provided through transfer payment funding from OMAFRA, as well as through secretariat services provided by the ARIO Secretariat and the Comptroller. ARIO also receives some revenues from leasing land and buildings within its property portfolio and any revenue sharing of intellectual property revenues realized from intellectual property it has provided funding for under the Alliance.

Funding for the necessary administration services and resources required to support the administration of ARIO has been, and will continue to be, provided through the Research and Innovation Branch (RIB) budget allocations within OMAFRA. These costs are estimated at approximately $1.4 million annually. ARIO has no staff of its own and RIB with support from Business Planning and Financial Management Branch (BPFMB) and the assistant deputy minister’s Office provides all secretariat functions for ARIO. Current (2019/20) RIB secretariat support to ARIO:

Note: RIB underwent a realignment to two units in August 2020 and new organizational structure will be reflected in the 2021–24 Business Plan.

Funding for major capital projects (implementation of the ARIO’s Infrastructure Strategy) is requested and approved annually as a key component of OMAFRA’s multi-year planning budget process.

ARIO continues to seek out non-government sources of capital investment from agricultural and agri-food related industry partners. The livestock sectors have agreed to the current model being used whereby industry will provide 20% of the capital costs of any new construction/redevelopment projects.

Revenues from ARIO’s research station portfolio (such as rent paid by tenants) are also used to partially offset the cost of ownership and maintenance of the research station portfolio.

Risk identification, assessment and mitigation strategies

ARIO is classified as a Board-Governed provincial agency of the government reporting to the minister of OMAFRA and as such, has a Memorandum of Understanding (MOU) with OMAFRA. The MOU outlines the roles and responsibilities of both parties and how the ARIO Act and the various government policies and directives apply to the relationship between ARIO and OMAFRA.

As specified in the ARIO Act most ARIO business decisions are the responsibility of the director of research appointed under the act. The ARIO director of research is currently the assistant deputy minister for OMAFRA’s Research and Corporate Services Division. ARIO has no staff and all secretariat functions (other than management of the trust funds), have been delegated to OMAFRA employees within RIB. Funding for programs and properties administered by ARIO is provided largely through OMAFRA and the government’s multi-year planning budget process.

Implementation of the ARIO’s Infrastructure Strategy will require significant funding over the next several years. It is possible that budget constraints, economic and political conditions may create delays in completing ARIO’s Infrastructure Strategy; however, given multi-year planning budget commitments and progress to date and strong alignment with current government priorities, the risk of significant delays or cancellation is medium. The ARIO secretariat continue to work with the BPFMB as well as central agencies, in submission of annual updates and refinements to the strategy captured in the Ministry’s multi-year planning budget process.

Given the role and decision-making structure of ARIO, overall risk (operational, financial, political, etc.) is very low, however, the ability to maintain financial commitments for the multi-year nature of capital infrastructure construction projects can be impacted by changes in government priorities and changes in government funding, neither of which can be predicted with complete confidence over such a time frame. This risk is mitigated by the fact that the ARIO’s Infrastructure Strategy is now well underway and that significant funds for future phases have been transferred to ARIO and have been committed to individual projects and by the fact that the industry has accepted the idea that they need to be willing partners contributing a minimum of 20% to capital renewal projects.

Full details of ARIO’s Risk Management Plan can be found in Appendix C of this document.

Human resources and organizational governance

Membership

ARIO is comprised of up to fifteen members appointed by the minister for OMAFRA. Membership has been maintained at a level between six and nine for many years. Members of ARIO are recognized as leaders in the agriculture, food and rural sectors. They have been appointed from a broad cross section of commodity groups, business interests and geographic areas. Members do not represent any organization but hold their position in their own right. When putting forward the names of potential members for the minister’s consideration ARIO continues to balance the need for diversity, with the need for specific sector expertise that addresses knowledge gaps in ARIO’s membership.

The ARIO director of research is appointed by the minister under the ARIO Act and is responsible for the business and affairs of ARIO. The current ARIO director of research is the assistant deputy minister, Research and Corporate Services Division and Chief Administrative Officer of OMAFRA. OMAFRA, through RIB, provides secretariat services, such as administrative, operating and managerial support. Operational decision-making and approvals are made by the ARIO Director of Research, or his/her authorized delegate(s). The duties and authority of the director of research are detailed in the ARIO Act, as well as in the MOU between ARIO and OMAFRA. The diagram bellow summarizes the governance structure of ARIO in its current form.

• Minister
  • ARIO Chair
    • ARIO Members
      • Deputy Minister
        • Director of Research
          (Currently the ADM of Research and Corporate Services Division OMAFRA)
          • Comptroller
          • ARIO Secretariat
            Research and Innovation Branch (RIB) OMAFRA
            • Director RIB
              • Manager (Research and Knowledge Management Unit)
                • ARIO Support
                  • Research Analysts
                  • Open Research Programs
                  • OMAFRA/UofG Agreement
                  • Knowledge and Tech Transfer
              • Manager (Research Accountability, Management, and Administration Unit)
                • ARIO Support
                  • Research Analysts
                  • Agency Liaison
                  • Research Infrastructure
                  • Programs Administrator

Download printer-friendly organization chart (PNG).

Third-party initiatives

Over the past several years, global fiscal and economic realities facing all governments have resulted in a more focused effort and a significant shift towards collaborative research, funding partnerships, and new industry/government governance models. An example of this model was used to build the new beef facility at the Elora Research Station whereby the industry stakeholders/producer groups agreed to fund 20% of capital construction costs and are taking a much more active role in research priority setting.

The Ontario Ethanol Growth Fund (OEGF) was a provincial fund established to support development of capacity in the Ontario ethanol industry. In 2012, ARIO began receiving industry funding as a condition of previous capital investments to industry by the province under the OEGF. Payments are expected to continue until 2023. ARIO is exploring options to expend this fund.

Other transfer payment initiatives administered by ARIO on behalf of OMAFRA are developed in consultation with ARIO’s assigned legal support and OMAFRA’s BPFMB ensuring compliance with Transfer Payment and Accountability Directives.

Communications plan

The ARIO members will review and update the communications plan on an ongoing basis.

Objectives

• Raise awareness of Ontario’s efforts to advance agri-food research and innovation programs, modernization efforts and strategic collaborations.
• Raise awareness of, engage and seek support of research priorities.

Key messages

• Scientific research in agri-food is critical for the pursuit of knowledge and leads to new discoveries to help ensure Ontarians have access to healthy, safe food and that our farmers and businesses have the information they need to be competitive and sustainable.
• Partnerships, such as the Ontario Agri-Food Innovation Alliance with the University of Guelph, is a key pillar that support Ontario agri-food research and innovation.

Key audiences/stakeholders

• Agricultural sector including commodity organizations, food processing/retailing, bioeconomy and health sciences.
• Ontario academic institutions.
• General public and rural communities.

Tools and tactics

Potential communications opportunities in 2019–20 (ARIO will be updated on new communication opportunities as they arise and are confirmed).

Financial information

Overview of funding

Under the ARIO Act, the Institute may accept gifts, grants, donations or bequest money for use in research or the conservation, protection or preservation of agricultural lands and the director of research holds and administers these funds received “in trust” in accordance with the terms, if any, on which it was given.

Investments held in trust

ARIO contracts with an investment management company to assist with the management of investments held within the ARIO trust funds. The ARIO’s investment policy follows the requirements of the Trustee Act R.S.O. 1990, c. T23 as amended (Trustee Act) and the Financial Administration Act R.S.O. 1990, C.F.12 as amended (Financial Administration Act). The investment strategy’s first priority is to guarantee preservation of capital, and then, to provide liquidity to meet short-term cash flow requirements, and then after that, maximize returns to funds held by ARIO.

See Appendix A for ARIO’s statement of investment policy.

Operational costs (excluding operation and management costs of the research stations)

The cost to administer the programs within ARIO (including the proportionate cost of salaries and benefits for OMAFRA staff that provide secretariat services) are paid from OMAFRA’s budget within the allocation assigned to the RIB. The current estimate cost to provide the secretariat functions to ARIO is approximately $1.4 million (which is part of the RIB budget).

Per diem rates and travel expenses for appointed ARIO members are set by Orders in Council and are paid to ARIO members for their attendance at scheduled meetings. These per diems follow Treasury Board Guidelines for Agencies, Board and Commissions and are paid out of RIB funds. Details are provided to members in the ARIO member’s handbook.

Financial projections (three-year outlook)

ARIO is required to submit its annual report including audited financial statements to the minister within 120 days of its year-end (by July 29^th annually). The annual report is prepared by OMAFRA staff and includes financial statements that are prepared and audited by an external auditor (public accountant) contracted by OMAFRA.

A forecasted balance sheet and financial statement showing projected revenues and expenses is included in Appendix B.

ARIO is consolidated for financial reporting purposes with OMAFRA due to its close relationship, the ARIO’s reliance on OMAFRA for research program funding and administrative support, and due to the “financial materiality” of ARIO resulting from the transfer of 17 agri-food research properties that had an approximate $60 million (sixty million dollars) book value in 2007 at the time of the transfer of the properties from the then Ontario Realty Corporation to ARIO. ARIO is required to provide a three-year financial outlook to OMAFRA for financial consolidation purposes.

Performance measures

Infrastructure planning and management

This is a report on achievements in accordance with the current performance measures framework outlined in the ARIO MOU and includes the current focus of the ARIO’s Infrastructure Strategy.

Appendix A: ARIO’s statement of investment policy

General

This statement of investment policy expresses the investment objectives and constraints of the ARIO. In addition to providing a framework for general direction of the portfolio, it provides a basis upon which to periodically review and evaluate portfolio performance relative to appropriate asset class benchmarks.

Investment objectives

The portfolio shall be managed to meet the following objectives (in priority order listed):

1. Ensure safety of capital over a one- to three-year time horizon by investing in high quality fixed income securities, including government bonds and/or professionally-managed pension level bond portfolios.
2. Provide liquidity, with a significant portion of the portfolio available to adequately meet short-term (up to one year) individual program and capital reinvestment cash flow requirements. Investments may include Treasury Bills, Government of Canada/Provincial bonds or coupons, and Bankers Acceptance Paper maturing within one year.
3. Maximize the rate of return on the portfolio recognizing the constraints imposed by (1) and (2).

Investment constraints

Consistent with both the Trustee Act and the Financial Administration Act, the following securities are examples of eligible investments for the ARIO portfolio:

1. Federal government treasury bills and bonds.
2. Provincial government treasury bills and bonds.
3. Instruments offered by the five major chartered banks, namely, Royal Bank, TD Canada Trust, Bank of Montreal, Canadian Imperial Bank of Commerce (CIBC) and Bank of Nova Scotia including GICs, term deposits and bankers acceptances (note: investments can be greater than the $60,000 CDIC limit).

Diversification

The portfolio should be diversified, within constraints of ARIO investment policy, to reduce risk to capital.

Performance objectives

The performance objectives of each element of the portfolio is to equal the appropriate market benchmark index over a full market cycle, namely, one-three years. Note: this goal is ambitious given that the ARIO portfolio(s) are constrained. For example, Canadian corporate bonds are not eligible investments but are included in the benchmark index, and due to high cash flow demand. Cash maturities may average less than 90 days.

Investment advisor

ARIO shall engage the services of a professional investment firm for investment advice through a competitive process.

ARIO Comptroller

The ARIO Comptroller shall have responsibility to ensure the statement of investment policy is adhered to.

Reporting

The investment advisor shall prepare and provide detailed monthly statements showing the composition of the portfolio at month end and shall report all transactions during the month.

A comprehensive portfolio review and performance evaluation shall occur annually including performance of the portfolio, as well as updates on the current and future economic outlook and investment strategy.

All fees billed shall be fully disclosed, transparent and included in the monthly/quarterly report as they occur.

Review of investment policy

This ARIO statement of investment policy shall be reviewed as required.

Appendix B: statement of financial position

Appendix C: ARIO risk management plan summary