It outlines measures that will strengthen food systems at every step and includes new investments in innovation, clean technology and support for science that will enhance the sector’s competitive edge and drive environmentally sustainable production.
This budget delivers by providing new targeted inflation relief for Canadians, stronger public health care – including dental care, investments to build Canada’s clean economy, and a responsible fiscal plan.
Here are some highlights of proposed funding and initiatives with direct links to the agriculture and agri-food sector:
Dairy Innovation and Investment Fund
The Government of Canada is delivering on its commitment to invest in a new program that supports the dairy sector in managing and adding value to a surplus of solids non-fat, which is a by-product of milk processing. Budget 2023 is providing $333 million over 10 years, starting 2023-24, for Agriculture and Agri-Food Canada (AAFC) to support investments in research, product and market development, and processing capacity for solids non-fat-based products.
Interest Relief for Agricultural Producers
With the increase of farm production costs, the Government of Canada continues to support sustainable agriculture and economic growth by enabling the sector to meet evolving challenges of an interconnected domestic and global marketplace. $13 million will be provided to AAFC to increase the interest-free limit for loans under the Advance Payments Program from $250,000 to $350,000 for the 2023 program year.
Supporting Farmers for Diversifying Away from Russian Fertilizers
To help farmers most reliant on Russian fertilizer imports, $34.1 million over three years, starting 2023-24, is being provided to AAFC’s already established On-Farm Climate Action Fund. This is meant to support the adoption of nitrogen management practices by Eastern Canadian farmers that will help optimize the use of fertilizers.
Local Food Infrastructure Fund
To continue strengthening food security in Northern, rural, and Indigenous communities that face unique challenges across Canada, $10 million in 2023-24 is being provided to top-up the Local Food Infrastructure Fund (LFIF). Under the Food Policy for Canada, AAFC had already delivered the $60 million LFIF aimed at community-based, not-for-profit organizations.
Foot and Mouth Disease Vaccine Bank for Canada
The Government is working to protect animal health and prevent the introduction and spread of animal diseases. Budget 2023 is providing $57.5 million over five years and $5.6 million ongoing to the Canadian Food Inspection Agency to establish a foot and mouth disease (FMD) vaccine bank for Canada and to develop FMD response plans.
AAFC Laboratory Asset Renewal
Modern laboratories and research infrastructure are essential to developing innovative agri-technologies and solutions to help the sector continue to grow, sustainably. Budget 2023 investments to restore AAFC’s research facilities will lead to better delivery of research outcomes and better results for farmers, while helping meet greenhouse gas emission reduction targets.
The budget also outlines a number of new initiatives across government to improve supply chains, bolster innovation and tackle climate change.
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