Regulatory Stock Review Plan for Agriculture And Agri-Food Canada

Canadian Agricultural Loans Regulations

Canadian Agricultural Loans Act

The Canadian Agricultural Loans Act includes a requirement for a review of the provisions and operations of the Act, in consultation with the Minister of Finance, every five years.

The legislative review of the Canadian Agricultural Loans Act was tabled to Parliament in May 2021.

The review found that the CALA program remained relevant as some Canadian farmers continue to face challenges in accessing affordable credit. It is cost neutral and acts as a low-risk, low-cost government program that supports the agricultural sector. It aligns with departmental roles and responsibilities by providing Canadian farmers equal access to affordable credit while sharing the risks of agricultural debt with the private sector. Despite falling short of its overall uptake goals, it exceeded its targets in the beginner farmer segment with increases in the number and overall value of loans, and it has benefited Indigenous groups by providing access to credit that may otherwise be difficult for them to obtain. In response to having fallen short of its overall uptake goals, program officials are examining regulatory changes to expand definitions to include new and emergent sectors.

The last legislative review of the Canadian Agricultural Loans Act was tabled in Parliament in May 2021. The report found that the program continued to be relevant and was effectively managed. While participation was not as high as expected due to low loan limits, high commodity prices and low interest rates, the program was beneficial to beginning farmers. The review recommended further analysis on options to further improve program parameters and evaluate program opportunities to benefit beginner, Indigenous, and women farmers. Findings flowing from the 2024 Evaluation Report of CALA recommend:

• a shift in focus of the program to higher risk but underserviced segments, such as beginner/niche, Indigenous, and women farmers;
• addressing the limitations to the design and delivery of the program, including loan limits, amortization periods, program outreach and awareness and other parameters that negatively impact uptake; and
• updating the performance information profile.

To implement the recommendations stemming from both the Legislative Review and Evaluation Report, an amendment to the Act and its corresponding Regulations is required.

The review will start in 2026-27.

AAFC has — since the 2021 Legislative Review and 2024 Program Evaluation — consulted lenders, producers, sector organizations representing traditionally underrepresented and marginalized groups, internal centres of expertise, industry trade associations, producer groups, and other relevant stakeholders from similar federal, provincial, and territorial programs. Feedback from these diverse groups align with both the findings and recommendations of these two reports.

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Justin Sugawara
Director, Financial Guarantee Programs Division
613-291-0744
justin.sugawara@agr.gc.ca

Agricultural Marketing Programs Regulations

Agricultural Marketing Programs Act (AMPA)

The Agricultural Marketing Programs Act includes a requirement for a review of the provisions and operations of the Act, in consultation with the Minister of Finance, every five years. This also includes reviewing provisions of the Regulations. These reviews often result in recommendations for program changes which require amendments to the Act and Regulations.

The 2023 AMPA Review was tabled in June 2023. The review examined the three programs governed by the Act, including the Advance Payments Program (APP), the Price Pooling Program (PPP), and the Government Purchase Program and covered the period of February 2016 to February 2021. The primary focus was on the APP and built on the findings from the evaluation of the programs under the Agricultural Marketing Programs Act (2014 to 2019), conducted by AAFC’s Office of Audit and Evaluation (OAE).

The Review found that: the APP was widely used; aligned with Government priorities; aligned with its objective, as stated in the AMPA, of improving marketing opportunities for producers through the provision of cash advances; and complemented the current Business Risk Management programs by providing a proactive risk management tool. The Review concluded that the current advance limits ($100,000 interest free and $1 million overall) are sufficient for the majority of producers. The Review also found that while the current third-party delivery model for the APP is favoured by producers, program administrators, and lenders, it has resulted in a number of risks, including differences in administrator revenue generation from the program (needed to offset administration costs) and the gradual consolidation of APP advances under fewer and fewer administrators.

The Review listed several areas for potential improvement to the APP, including:

• improving data collection in support of improving access to underrepresented groups;
• strengthening security requirements by reducing the use of priority agreements in favour of upfront lien registration;
• reducing administrative burden by shifting to risk-based credit worthiness assessment requirements, removing the Administrator’s Percentage mechanism, and audit-based proof of sale requirements;
• reporting APP Crown debt to credit bureaus;
• further exploring the potential for alternative delivery models, such as Farm Credit Canada; and
• looking for ways to make temporary increases to the interest-free limit in a more timely fashion in times of crisis.

Finally, the Review also determined that the Price Pooling Program is useful for smaller, less established markets and that the Government Purchase Program could be used in the future for humanitarian or global food security purposes.

The department also completed a review of the APP, as announced in Budget 2024, which further supported the findings of the 2023 Legislative Review with regard to the benefits provided by the APP, how the program is administered, and several of its recommendations.

The 2012 AMPA Review resulted in a number of amendments to the Act and its regulations aimed at improving access and flexibility under the APP and reducing administrative burden. The majority of the legislative amendments were implemented in 2015, with the regulatory amendments and associated legislative amendments being made in 2016 (see SOR/ 2016-7 January 29, 2016).

Subsequent amendments have been made to the Agricultural Marketing Programs Regulations:

• on May 29, 2019, to increase the limit on advances from $400,000 to $1 million on an ongoing basis and temporarily increase the interest-free limit from $100,000 to $500,000 for 2019 advances on canola. The amendments are intended to address increases in farm operating expenses of more than 50% since 2007, and to help farmers impacted by market-related challenges in 2019 (see SOR/2019-157 May 29, 2019);
• on June 21, 2022, to increase the limit on interest-free advances from $100,000 to $250,000 for the 2022 and 2023 program years. The amendments are intended to assist producers with rising costs of production (for example, fertilizer, fuel, etc.) resulting from factors such as inflation, increasing interest rates and the Russia-Ukraine conflict. (see SOR/2022-152 June 21, 2022).
• on May 4, 2023, to increase the limit on interest-free advances from $250,000 to $350,000 for the 2023 program year (see SOR/2023-80 May 4, 2023). The amendment is intended to help producers as they weather the continuing financial pressures from the previous growing seasons and support their continued efforts to produce agricultural commodities for Canada and the world; and
• on March 25, 2024, to increase the limit on interest-free advances from $100,000 to $250,000 for the 2024 program year (see SOR/2024-53 March 25, 2024). The amendment is intended help stabilize the primary agricultural sector, which is crucial for food security, stabilizing food prices, and mitigating the impacts of inflation on the cost of living for all Canadians;
• on March 7, 2025, to increase the limit on interest-free advances from $100,000 to $250,000 for the 2025 program year (see SOR/2025-315 March 7, 2025). The amendment is intended to help producers facing uncertainty and financial pressures, including those stemming from China’s threat to impose duties on Canadian canola imports and the threat of economy-wide tariffs from the United States; and
• on September 16 2025, to increase the limit on interest-free advances on canola from $250,000 to $500,000 for the 2025 program year and from $100,000 to $500,000 for the 2026 program year (see SOR/2025-659 September 16, 2025). The amendment is intended to help producers facing unprecedented uncertainty and financial pressures as a result of trade-related challenges, including tariffs on Canadian canola oils, meal and seed imposed by China and potential tariffs on all products by the United States.

The AMPA and its regulations will need to be amended to allow for the implementation of several of the APP improvements recommended in the 2023 Legislative Review. Officials are working to determine the mechanism and timing for these amendments.

As part of the 2023 AMPA Review, AAFC consulted with national producer organizations, APP administrators, lenders, marketing agencies (PPP), and producers. This included consideration of under-represented groups and youth. Stakeholder feedback contributed to the findings mentioned above. AAFC also consulted with Finance Canada, Farm Credit Canada, provincial program delivery agencies and other stakeholders as part of the APP review required under Budget 2024.

Not applicable at this time.

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Justin Sugawara
Director, Financial Guarantee Programs Division
613-291-0744
justin.sugawara@agr.gc.ca

Certificates of Age and Origin for Distilled Spirits Produced or Packaged in Canada Order

Department of Agriculture and Agri-Food Act

To ensure the regulation is effective in achieving objectives.

Review of Certificates of Age and Origin for Distilled Spirits Produced or Packaged in Canada Order. This order facilitates the export of Canadian distilled spirits, which amounts to approximately $960 million annually (2024).

This order fulfills Canada’s international trade commitments as certain trading partners require, as a condition to the importation of distilled spirits from Canada, that the distilled spirits be accompanied by a certificate issued by a duly authorized official of the Government of Canada attesting to the age and origin of the distilled spirits.

The planned approach to the review includes an assessment of the effectiveness of the regulation through discussion with the Canadian spirits industry.

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2027-2028

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Melissa Kardaras
Director, Food Industry Division
343-550-6146
melissa.kardaras@agr.gc.ca

Livestock Pedigree Associations Winding-up Regulations

Animal Pedigree Act

To ensure the regulation is effective in achieving objectives.

These regulations pre-date the replacement of the former Live Stock Pedigree Act in 1988 with the Animal Pedigree Act.

The Animal Pedigree Ac includes provisions for termination of the corporate powers of an association and its dissolution in accordance with regulations respecting the dissolution of associations under this Act. The planned approach to the review will include an internal assessment of the effectiveness of the regulation for industry stakeholders. The results of the review will inform potential regulatory and/or legislative changes.

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Review started in 2025–2026

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Annie Dubé
Deputy Director, Animal Industry Division
514-315-6180
annie.dube@agr.gc.ca

Farm Debt Mediation Regulations

Farm Debt Mediation Act

Section 28 of the Farm Debt Mediation Act requires the Minister to undertake a review of the Act and related regulations and operations every 5 years. Moreover, the Minister is required to make a report to Parliament regarding the review as soon as possible following its completion.

In accordance with the Farm Debt Mediation Act, a review covering the fiscal years 2016–17 through 2020–21 was conducted, and a report to Parliament (PDF) tabled in December 2021.

Overall, the review revealed that the Act, Regulation and ultimately the Farm Debt Mediation Service they enable is a valuable, unique and necessary service. Moreover, the majority of farmers and creditors reported positive experiences and outcomes arising from their participation.

The last amendment to the both the Farm Debt Mediation Act and Regulation was in 2016 following a review that identified the need to update the Act and Regulation, which originally came into force in 1997. Subsequent to the amendment in 2016, the Act, Regulation and Service was reviewed in 2021. No need for amendments was identified.

2025-2026, with a view to complete and table a report to Parliament by December 2026 to respect the Minister’s obligation to report every 5 years.

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Farm Debt Mediation Service

Katia Courie
A/Director, Farm Investment and Assistance Division
(613) 898-4751
katia.courie@agr.gc.ca

Farm Income Protection Act (FIPA), and any corresponding Regulations, as part of a Review

Farm Income Protection Act

Section 4(2) of FIPA requires a report on the operations of the programs authorized under the Act be completed every five years and that the report be subsequently tabled before each House of Parliament.

The last report entitled the Sixth Report on the Farm Income Protection Act, satisfied the reporting requirement by examining the operations of AgriInsurance, AgriStability, AgriInvest and AgriRecovery, for the 2017 to 2021 period.

It was tabled in Parliament in August 2022. A legislative review of FIPA itself is not required.

Overall, the review revealed that the Farm Income Protection Act continues to provide a critical legislative framework for agricultural programs. BRM programs, while having evolved significantly over policy frameworks, continue to provide an essential component of producer risk management strategies, while respecting the core principles set out in Subsection 4(2) of FIPA.

August 2022 - Sixth Report on the Farm Income Protection Act

In early 2026 with a view to complete and table a report to Parliament in late 2026 to respect the Minister’s obligation to report every 5 years.

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Sixth Report on the Farm Income Protection Act

Pascal Tanguay 
Acting Director, Planning, Coordination and Disaster Assessment Division 
(613) 266-6351 
pascal.tanguay@agr.gc.ca