Sustainability Program Principles

SUSTAINABILITY PROGRAM PRINCIPLES A guide to partnering with grain farmers for farm sustainability outcomes

Ontario is a significant grain and oilseed production region within Canada, growing on average over 65 per cent of Canada’s corn, 60 per cent of Canada’s soybeans, and 88 per cent of Canada’s soft wheat. With these crops being vital ingredients for food and beverage manufacturing, feed processing and biofuel production, the value chain is increasingly seeking to understand farm sustainability. Grain Farmers of Ontario developed the Sustainability Program Principles guide to help inform the design of sustainability programs that aim to support, promote, and demonstrate on-farm sustainability. Integrating farmers’ and farm organizations’ perspectives within program design and development should be a priority component of farm sustainability programs. These principles offer a starting point for companies to understand these perspectives and scope further engagement. To learn more, visit www.gfo.ca/market-development-and-sustainability/ 2 GRAIN FARMERS OF ONTARIO GFO.CA 3 PRINCIPLES OF SUSTAINABILITY PROGRAMS 1 Transparency and governance 2 Inclusivity and collaboration 3 Market-relevant incentives 4 Science-based approach 5 Harmonization and integration 6 Regional localization 7 Flexibility and adaptability 8 Knowledge exchange 9 Data protection 10 Risk management

DESCRIPTION CONTEXT EXAMPLE A sustainability program develops a governance structure, agreed upon by relevant parties, that is capable of advancing program development, implementation, and improvements over time. Applying good governance principles and building a transparent governance framework can help build trust and credibility in sustainability programs among farmers and other stakeholders. A company implements a program within its value chain that is guided by a governance framework. This framework includes a stakeholder advisory board that provides highlevel strategic direction, along with dedicated program staff responsible for executing the workplan Build a transparent governance framework to administer the program. 1 PRINCIPLE 4 GRAIN FARMERS OF ONTARIO GFO.CA 5

Foster inclusivity and collaboration with farmers and industry associations in program design and implementation. 2PRINCIPLE DESCRIPTION A sustainability program includes input from relevant stakeholders and program users (e.g., farmers, grain elevators) in the design and development of the program. CONTEXT Engagement with farmers and the organizations that represent them is a key factor in determining the uptake and success of a program. This engagement can help ensure the program’s implementation considers the practical challenges and opportunities that farmers face. EXAMPLE A company that is developing a sustainable sourcing program engages with farmer organizations and local stakeholders prior to development, during the design and pilot phases, and allows for ongoing engagement as the program evolves. 6 GRAIN FARMERS OF ONTARIO GFO.CA 7

DESCRIPTION CONTEXT EXAMPLE A sustainability program provides incentives that are sufficient in supporting practice changes, maintenance, and data collection that is required by the program. Maintaining and adopting practices and technologies that result in sustainability outcomes can create costs, and added time, labour, and complexity for farmers. Payments to farmers, unless other preferred market access/value is present, can help mitigate these costs and barriers. A sustainability program includes upfront and maintenance payments, cost share options, or premiums to farmers who maintain or adopt eligible practices. Recognize that farmers incur risk and costs to implement and maintain practices and collect data by providing market-relevant incentives. 3PRINCIPLE 8 GRAIN FARMERS OF ONTARIO GFO.CA 9

DESCRIPTION A sustainability program demonstrates clear alignment between the practices, technologies, and systems promoted and the desired outcomes. CONTEXT Taking a science-based approach brings credibility and assurance to sustainability programs, enabling involved supply chain participants to make reputable claims and set realistic targets. EXAMPLE A company uses reputable methodologies and protocols for measuring, monitoring, reporting and verification. They provide full transparency on data sources and calculations. Utilize credible and science-based approaches to develop the program and its goals. 4PRINCIPLE 10 GRAIN FARMERS OF ONTARIO GFO.CA 11

DESCRIPTION CONTEXT EXAMPLE A sustainability program that is introduced to a region does not undermine or contradict existing programs. There are many sustainability programs emerging across value chains that ask farmers to answer similar questions about their sustainability progress. This trend can result in complexity and high transaction costs (e.g., administrative, data). A company completes an environmental scan of existing value chain programs within the region they seek to introduce a new program to identify if there is an opportunity to utilize or align with a program that farmers are already participating in. Seek and facilitate harmonization and integration across sustainability programs. 5PRINCIPLE 12 GRAIN FARMERS OF ONTARIO GFO.CA 13

Learn from regional-specific knowledge and localized practice and technology adoption. 6PRINCIPLE DESCRIPTION A sustainability program supports and promotes practices and technologies that are applicable to the program’s region and local production systems. CONTEXT A practice that results in an environmental outcome in one region may not have the same impact in another region due to several factors including climatic conditions, crop type, and soil type. EXAMPLE A company learns about regional-specific knowledge, experiences, and conditions before selecting practices, technologies, and data collection systems, and other key components of their sustainability program. 14 GRAIN FARMERS OF ONTARIO GFO.CA 15

DESCRIPTION CONTEXT EXAMPLE Involved stakeholders are aligned on the scope of the program and the types of modifications that may be needed for farmer and program success. Farmers are at different stages of the adoption and innovation curve. To enable farmer success, this variability should be considered when designing programs that encourage practice and technology adoption and/or data collection. A sustainability program supports practices being implemented at a variety of levels of complexity (e.g., 4Rs basic, intermediate and advanced). Engrain flexibility and adaptative management approaches into program design and operations. 7PRINCIPLE 16 GRAIN FARMERS OF ONTARIO GFO.CA 17

Enable knowledge sharing and development opportunities within or complementary to the program. 8PRINCIPLE DESCRIPTION A sustainability program directly provides or connects farmers to technical assistance that supports farmers in their adoption of practices, technology, and data collection. CONTEXT Creating knowledge sharing opportunities (e.g., farmer-to-farmer, agronomist-and-farmer) can be a valuable approach in supporting farmers in their efforts to continuously improve on-farm sustainability. EXAMPLE A sustainability program includes farmer-to-farmer knowledge sharing events (e.g., farm demonstrations) and access to local agronomists and early adopters who can offer voluntary advice on practices, technologies, and record keeping. 18 GRAIN FARMERS OF ONTARIO GFO.CA 19

DESCRIPTION CONTEXT EXAMPLE A sustainability program is standardized and transparent about its approach to data governance and seeks to streamline the process and administrative burden of farmers. Building a robust data collection approach that does not duplicate existing data collection efforts and provides clarity on what the data asks are and why data is being collected is critical to producing quality data that returns value to the program and farmers. A sustainability program coordinator communicates the data collection protocol to farmers, and what the data will be used for, and by whom, at the enrolment stage and throughout the program’s duration. Develop streamlined protocols and governance for data collection, use, protection and sharing. 9PRINCIPLE 20 GRAIN FARMERS OF ONTARIO GFO.CA 21

Communicate proactively and comprehensively the risks and requirements for participating farmers, including limitations/ restrictions on data utilization or participation in other programs. 10 PRINCIPLE DESCRIPTION A sustainability program is upfront and clear in its communication to farmers on the risks and requirements that the program entails. CONTEXT Communication and transparency on program benefits and risks is critical to enable farmers to determine which sustainability program or market best suits their operation and it can support companies in building good working relationships with farmers. EXAMPLE A sustainability program holds an information session for interested farmers before program kick-off to share program details, opportunities, and risks. Material responsibilities and agreements within contracts should be clearly communicated before signing so that farmers can make an informed decision. 22 GRAIN FARMERS OF ONTARIO GFO.CA 23

Grain Farmers of Ontario is the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean, and wheat farmers. The crops they grow cover over 6 million acres of farmland across the province, generate over $4.1 billion in production value, result in over $27 billion in economic output and are responsible for over 90,000 jobs in the province.

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