Deputy minister’s briefing book: December 8, 2025

• Crop receipts: $14 billion, 2004; $52 billion, 2024
• Farm cash receipts have grown 7.6% on average annually between 2020 and 2024, and reached $91.4 billion in 2024
• Total livestock receipts in 2024 were $39.7 billion (+6%)
• Sector is close to 7% of GDP and 150 billion in GDP
• Food and beverage comprised more than 17% of manufacturing GDP
• Supply-managed commodities comprised about 38% of the total in 2024
• Net cash income declined 15% in 2024 to $19.7 billion; however, it remained above the previous five-year average
• Farm cash receipts for the first 6 months of 2025 increased 3.3% compared with the same period in 2024, largely due to increases in livestock
• Expense growth in 2024: 2.4%

From 2012 to 2024, exports increased by 98.9%, record high of over $100.3 billion in 2024.

Top three exported agri-food and seafood products by value were wheat and meslin, $10.3 billion; baked goods, $7.7 billion; and canola oil, $6 billion.

Top five markets accounted for 83% of exports to foreign markets in 2024, up from 77% in 2015.

Canada's exports remain concentrated in five markets: U.S., 61.9%; China, 9.6%; Japan, 4.9%; EU, 4.4%; Mexico, 2.2%.

Canada has 15 bilateral and regional free trade agreements covering 51 countries.

• Climate change and the environment
• Science, Research and Innovation
• Market Development and Trade
• Building Sector Capacity, Growth and Competitiveness
• Resiliency and Public Trust

In the 2010s, average annual federal spending on BRM programs was $1.1 billion.

[Redacted]

• Sustainable CAP is $3.5 billion over five years, with 2.5 cost shared and rest federal only
• Federal only: AgriScience, AgriInnovate, AgriMarketing, AgriAssurance AgriCompetitiveness, and AgriDiversity.
• AgriInvest is a self-managed government producer savings account to manage small declines
• AgriRecovery is disaster recovery relief
• AgriInsurance is cost-shared insurance against natural hazards that cause asset or production losses
• AgriStability is whole-farm large marginal revenue delineated

Four key missions

• Mitigating and adapting to a changing climate
• Increasing the resiliency of agro-ecosystems
• Advancing the circular economy by developing value-added opportunities
• Accelerating the digital transformation of the agriculture and agri-food sector

The Agricultural Climate Solutions Program has two streams that help to develop, test and implement farming practices to improve sustainability by tackling climate change and addressing other agri-environmental issues.

The On-Farm Climate Action Fund, $704.1 million (2021 to 2028) provides support to farmers in adopting proven beneficial management practices that store carbon and reduce GHG emissions.

Living Labs, $185 million (2021 to 2031), bring together farmers, scientists and other sector stakeholders to accelerate the co- development and testing of innovative practices and technologies in real-life on-farm environments to reduce greenhouse gas (GHG) emissions and sequester carbon in real-world conditions.

The Agricultural Clean Technology Program, which is a $429.4 million (2021 to 2028) initiative aiming to create an enabling environment for the development and adoption of clean technology that will help drive the changes required to achieve a low-carbon economy and promote sustainable growth in the sector.

In addition to the above programs, AAFC's science capacity has between 600 to 900 ongoing projects in any given year, roughly two-thirds of which are done collaboratively with external stakeholders:

• Foundational Science and Research $178 million: supports AAFC internal science activities, including long-term and high-risk projects.
• 1,745 canola producers (in program year 2025) and 6,000 canola producers (in program year 2026) with a combined $36.3 million ($5.1 million in 2025 and $31.2 million in 2026) in additional interest savings.

AAFC's Red Tape Progress Report-includes 18 initiatives, 6 achieved, 12 ongoing or upcoming that include proposed legislative modernization. Of the ongoing initiatives underway, most are anticipated to be completed within the next two years.

AAFC launched the Agile Regulations Table in 2020 to

• address the cumulative and economic impacts of regulations
• resolve persistent regulatory irritants
• enable innovation through pilot projects

150 specific issues and irritants have been identified, of which

• 34 have been addressed
• initiatives are underway to address 20-plus others

Further regulatory modernization and red tape reduction can be enabled through modernization of AAFC's legislative framework, including reducing administrative burden with respect to the Canadian Agricultural Loans Act, which will require legislative and regulatory changes to further reduce red tape.

AAFC continues to pursue the implementation of significant improvements to the Advance Payments Program, which depends on legislative and regulatory changes to be realized.

Potential amendments to the Farm Products Agencies Act would remove outdated, burdensome and age discriminatory requirements, allowing for more agile and inclusive.

• Grocery price inflation slowed to 2.2% in 2024, down from the recent high of 9.8% in 2022.
• $1 billion National School Food Program, launched in the 2024 Budget, is expected to provide meals for up to 400,000 kids each year and save the average participating family with two children around $800 per year in grocery costs.
• All major retailers continue to express their intention to sign on to the code, and final stage discussions are ongoing in advance of full implementation.
• While a grocery code will not directly affect food affordability, it will improve predictability, transparency and fair dealing in supply chain relationships, ultimately benefitting consumers.

Food prices and security

• The Government of Canada recognizes that affordability remains a critical issue for Canadians. Recent reports even highlighted that food is Canadians' top expense pressure, which is resulting in changes in their shopping and eating habits.
• While food prices remain high, we are encouraged to see that recent inflation data show the largest month- over-month decline in food prices since September 2020.
• On October 10, the Government announced new measures to lower costs for Canadians, including making the National School Food Program permanent, which provides meals for up to 400,000 kids each year.
• We also remain committed to supporting and promoting Canadian products and will continue to help consumers more easily identify Canadian products when making purchases at the grocery store.
• These efforts build on previous actions that the Government has taken, including amendments to the Competition Act to strengthen our food systems and continued work on the Food Price Data Hub.

When pressed

What is the government doing to help Canadians weather the impacts of tariffs and trade uncertainty?

We recognize that U.S. tariffs have created a period of significant uncertainty. As of September 1st, 2025, Canada's counter tariffs on U.S. imports in compliance with the Canada-US-Mexico Agreement (CUSMA) were removed. We are committed to supporting farmers, businesses and Canadians to navigate the ongoing impacts of these shocks and will continue to provide robust economic support programs.

Canada has robust economic support programs available to help businesses and workers adjust to these shocks. In addition, the Government has put forth a long-term economic strategy in Budget 2025 to ensure Canada does not just withstand global shifts but is positioned as well as possible to prosper from them.

Do Canadians need to be worried about food supply?

[Redacted] with some of the most productive agricultural land and farmers in the world Canada will continue to be a net exporter. Certain food imports may be more expensive, but our trade network can grow to meet these challenges. Canadians can further support our agriculture and agri-food sectors by looking for "Made in Canada" or "Product of Canada" labels, as well as their province's buy local promotion program.

What action is the Government taking to stop the persistent rise in grocery prices?

Grocery price inflation slowed to 2.2% in 2024, down from the recent high of 9.8% in 2022. While grocery price inflation has increased again in 2025, our government remains committed to ensuring a fair, transparent and competitive marketplace to make life more affordable for Canadians.

On December 15, 2023, Bill C-56, the Affordable Housing and Groceries Act, received Royal Assent. Amending the Competition Act, C-56 allowed the Competition Bureau to advance its investigations into large retailers' use of anti-competitive restrictions, known as property controls, that impact competition in the retail sale of food products. On June 20, 2024, Bill C-59, the Fall Economic Statement Implementation Act, 2023, received Royal Assent. It modernizes all aspects of the law to facilitate enforcement and increase competition to make life more affordable for Canadians.

What is the Government doing to support Canadians who are struggling with food affordability and turning to food banks?

On October 10, the Prime Minister announced new measures to lower costs for Canadians, including making the National School Food Program permanent. The program provides meals for up to 400,000 kids each year, ensuring kids are fed healthy meals at school and saving families with two children $800 per year on groceries.

The Government also announced the implementation of automatic deposits for federal benefits for the 2026 tax year, making it faster and easier for Canadians to get the federal benefits they are entitled to.

These actions build on previously introduced measures such as elimination of the consumer carbon tax, increases to the federal minimum wage, the Canada Child Benefit, Canada Workers Benefit and Old Age Security. This is in addition to social programming that was previously announced, such as more affordable child-care and the development of a national dental care program.

Responsive only: What is the Government doing to address concerns that grocers' profits remain high?

The Government of Canada believes that competition is critical to ensuring a vibrant grocery sector. To this end, through the Affordable Housing and Groceries Act, 2023 and the Fall Economic Statement Implementation Act, 2023, the Government introduced changes to the Competition Act to help promote competition in all markets, including food supply chains and retail grocery. This includes strengthening merger review to prevent undue market concentration, broadening the reach of the law in addressing abusive conduct by dominant players that stifles competition, as well as collaborative conduct.

Background — food prices and food security

Food price inflation

Consumer price inflation reflects the final price consumers pay, including discounts and taxes. According to the latest monthly Consumer Price Index data for October 2025, price increases for food purchased from stores (groceries) was 3.4%, above headline inflation (+2.2%). On a month-over-month basis, grocery prices fell 0.6% in October, the largest decline since September 2020 (-1.1%). However, though grocery prices decelerated in October, prices remained elevated and have exceeded overall inflation for nine consecutive months. Restaurant price inflation was 3.2%.

Year-over-year inflation varied across categories, including eggs (+3.2%), bakery products (+2.1%), dairy (+1.4%), fresh fruit (-0.8%), and fresh vegetables (-1.4%). Price changes varied across meat products, with higher inflation for beef (+16.8%) compared to chicken (+6.2%), processed meat (+5.5%), and pork (+4.4%). Price increases for edible fats and oils have continued to decline (-7.8%) after their consistent double-digit inflation over the past three years.

Grocery price increases varied across the country. Across the provinces, prices grew the slowest in Ontario (+2.9%) and Prince Edward Island (+3.3%). Prices rose the most in Saskatchewan (+4.7%). For the territorial capitals, prices grew faster in Whitehorse (+2.8%) than Yellowknife (+2.0%) and no data is available for Iqaluit.

As of September 2025 (latest comparable data), Canada's grocery inflation was 4.0%, above the G7 average (+3.5%). Grocery (food) inflation was lower in France (+1.9%), the United States (+2.9%), Germany (+2.9%), and Italy (+3.7%) Over the same period, grocery inflation was higher in the United Kingdom (+4.5%), and Japan (+7.3%).

Chicken prices

Chicken prices have emerged as a key issue following a recent article speculating about a 20–25% increase in 2026, a forecast that has since attracted significant media attention. As noted above, according to the latest Consumer Price Index data, chicken prices were up 6.2% year-over-year. The article argues that a slow and disconnected supply management system did not stabilize supply as intended. However, Chicken Farmers of Canada, which is responsible for setting production targets, noted that recent supply challenges resulting from lower imports were due to avian influenza.

Additionally, soaring beef prices have also been identified as a possible factor for increased demand for alternative protein sources, such as chicken. Canadian farmers are currently producing more chicken than ever — 2.7% more than last year — with higher production targets set for 2026. While supply management ensures that farmers are able to receive a fair return from the market that covers their costs of production, it is important to note that farmers do not set retail prices, which are determined by retailers and the broader marketplace.

Food price dynamics and monitoring

Agricultural commodity prices tend to fluctuate more than grocery prices, and they are not tightly correlated. Preliminary research by Agriculture and Agri-Food Canada (AAFC) shows that receipts for Canadian farm products represent about a fifth of final food costs for Canadians. As of 2021, about 81 cents of every dollar Canadians spend on food went to post-farm gate sectors, like transportation and retail. The farm share is higher for less processed foods (for example, eggs, fruits and vegetables), compared to more processed foods (for example, bread and soup). (Source: Kelly, J., Canning, P., and Weersink, A. 2015. Decomposing the farmer's share of the food dollar. Applied Economic Perspectives and Policy, 37(2), 311-331.)

Consistent with Canada's World Trade Organization commitments, provincial and federal governments deliberately have minimal direct involvement in managing food prices or production decisions in Canada. Their influence is mainly through measures to ensure an efficient and fair market, and by measures to mitigate the impact on vulnerable Canadians.

AAFC conducts analysis on supply and demand factors that influence food costs and availability along the entire agri-food supply chain. Various datasets are used by AAFC to monitor shocks across the sector.

Food Price Data Hub

Statistics Canada, in collaboration with Innovation, Science and Economic Development Canada, and Agriculture and Agri-Food Canada, developed the Food Price Data Hub to provide timely access to the information Canadians need to better understand food price fluctuations. The Food Price Data Hub uses existing data from the agency that has been consolidated into a new, all-in-one tool to make it easier for Canadians to get an overall snapshot of food prices and trends.

Recent announcements related to affordability

On October 10, 2025, the Prime Minister announced new measures to lower costs for Canadians, including:

• Starting automatic deposits for federal benefits for the 2026 tax year that will reach up to 5.5 million low-income Canadians by the 2028 tax year. The CRA will automatically file these individuals' taxes to ensure they receive government benefits they qualify for, such as the GST/HST credit, the Canada Child Benefit, the Canada Disability Benefit and more — including benefits that these Canadians may not be aware they are entitled to.
• Making the National School Food Program permanent to provide meals for up to 400,000 children. This program ensures kids are fed healthy meals at school and saves families with two children $800 per year on groceries. By making it permanent, the program will work with provinces, territories and Indigenous partners to expand the program into more schools across Canada.

Previous actions related to grocery affordability

Between 2023 and 2025, the following initiatives related to grocery affordability were undertaken:

• Temporary GST/HST break from December 14, 2024, to February 15, 2025, making virtually all food, as well as purchases at restaurants, tax-free.
• Addressing shrinkflation through the Office of Consumer Affairs, which launched research projects to investigate price inflation and harmful business practices.
• Amending the Competition Act to enhance competition, including in the grocery sector, by giving power to the Competition Bureau to crack down on unfair practices.
• Launching a National School Food Program, to provide meals for up to 400,000 kids each year and fund infrastructure to support school food programming.
• Investing further in the Food Policy for Canada to strengthen Canada's food systems including $62.9 million over three years to renew and expand the Local Food Infrastructure Fund.

Food insecurity in Canada

Food insecurity is the inability to acquire or consume an adequate diet quality or sufficient quantity of food or the uncertainty that one will be able to do so due to income. According to the 2023 Canadian Income Survey, 25.5% of people (10.0 million) reported living in food insecure households in 2023/24, up from 22.9% the previous year. Food insecurity is higher in the territories, with 37.4% of the population reporting food insecurity.

Food Banks Canada's HungerCount 2025, a point in time snapshot, reported close to 2.2 million food bank visits in March 2025, up 5% from March 2024. The number of visits has doubled (up 99.4%) since March 2019. One third of visits were represented by children. Each 'visit' represents each person in the household, so a parent with two children would represent three visits. About 40% of households using food banks rely on social assistance as their main source of income, however, the share of households who rely on employment income has risen since the pandemic.

Food sentiments in Canada

The Fall 2025 edition of the Canadian Food Sentiment Index, led by Dalhousie University, is a national survey on how Canadians think and feel about food affordability, access and trust. The survey was released on November 20, 2025 and highlighted the fact that affordability remains the dominant concern, with a majority of Canadians reporting that they have changed how they shop, cook, or eat in order to cope with rising prices. Food continues to dominate household financial concerns across Canada, with more than four in five respondents citing it as their top expense pressure in the national survey. Though Canadians rank utilities, housing and household supplies among their top financial concerns, the impact of rising food prices surpasses that of the three categories combined. More optimistically, support for Canadian-grown and Canadian-made foods is on the rise, driven by both economic patriotism and a desire for higher perceived quality.

Trust in major food retailers also continues to erode, with Canadian consumers increasingly frustrated by a lack of transparency in how prices are set. This growing frustration is now prompting calls for stronger action across the supply chain. The National Farmers Union recently adopted nine resolutions, including plans to lobby the federal government to implement a cap on the profits of the major grocery store chains in the country.

Standing Committee on Agriculture and Agri-Food

• June 13, 2023: Tenth Report entitled Grocery Affordability: Examining Rising Food Costs in Canada, made 13 recommendations to address the impacts and drivers of food price inflation across the supply chain, including improving relations and competition across the food supply chain.
  • October 5, 2023: the Government tabled its response
• May 23, 2024: Eighteenth Report entitled A Call to Action: How Government and Industry Can Fight Back Against Food Price Volatility, made 10 recommendations to address ongoing challenges in the Canadian food supply chain, including improving competition across the food supply chain and recommended actions to assist Canadians experiencing food insecurity.
  • September 9, 2024: the Government tabled its response

Private Member's Bill C-226, An Act to Establish a National Framework to Improve Food Price Transparency

Introduced by Liberal MP Gurbux Saini on May 26, 2025, Bill C-226's primary focus is on improving food price transparency. The Minister of Industry has been identified as the lead for the Government.

The private member's bill requires that the Minister of Industry, in consultation with the representatives of provincial and territorial governments responsible for consumer affairs, develop a national framework respecting grocery pricing and unit price display practices to assist consumers in making informed decisions when purchasing food and other household goods.

Key provision requires the framework:

• to establish national standards for the grocery retail sector respecting
  • unit pricing for food and other household goods, including the accuracy, usability and accessibility of unit price displays for consumers, and
  • transparency regarding price increases, adjustments and fluctuations; and
• to promote unit pricing education to consumers across Canada, including what unit prices are and how they are used.

Displaying unit pricing

Standard unit pricing is the act of displaying the price of a commodity at a standard unit of measurement adjacent to its selling price on retail store shelves and online. Unit pricing (for example, $X.XX/per 100g) can help consumers discern which offering of a similar product is the least expensive.

The regulation of unit pricing falls under provincial/territorial jurisdiction, with Quebec being the only province to have mandated standard unit pricing by law, which came into effect in winter 2024.

Previous private member's bill

In June 2024, NDP MP Alistair MacGregor tabled Private Member's Bill C-406, An Act to establish a national framework to improve food price transparency, which is identical to the current PMB C-226. The bill was not selected for debate during the 44th Parliament, and MP MacGregor was not re-elected in the most recent federal election.

Current legislative status

The bill was introduced and read for the first time in the House of Commons on Thursday, September 18, 2025. The sponsor is currently at number 20 on the Order of Precedence and selected this bill as his item for debate on Tuesday, September 23, 2025. The House will vote on the bill following the second hour of debate at second reading. If the House votes in favour, it will be referred to the Standing Committee on Agriculture and Agri-Food for detailed study.

Innovation, Science and Economic Development Canada is conducting detailed analysis to determine the full implications of the operationalization of the bill.

Aspire Food Group received an $8.5-million repayable contribution from AAFC on March 31, 2021, to build a new automated production facility for crickets in London, Ontario. Outstanding debt to AAFC as of May 21, 2025, amounts to $7.5 million.

Farm Credit Canada (FCC) lending is separate from government grant and contribution programs. FCC operates at arm's length from the Government, and makes lending decisions based on commercial criteria. It is not uncommon for businesses to access both debt and support programs.

The facility was built to utilize automation, artificial intelligence and advanced connectivity between devices and systems to grow, harvest and process crickets.

The project was completed, and loan repayments were scheduled to begin in May 2023. As per all repayable contributions, AAFC's Financial Analysis and Repayment Unit had numerous discussions with Aspire to provide flexibilities, including renegotiation of the agreement and revision of the payment schedule. In March 2025, after the client advised of financial difficulties resulting in the inability to make any further payments, Aspire's file was deemed to be in default and was transferred to the department's accounts receivable team to attempt to recover owed funds.

On May 6, 2025, Aspire was placed into receivership, a step towards bankruptcy, after an application from FCC in Ontario Superior Court.

• $147.6 million
• 74% of the funds ($108.7 million) for AgriStability)
• Approximately 23% of the funds ($34.3) cost-shared initiatives under the Sustainable Canadian Agricultural Partnership
• Total 2025–26 Spending Authorities to date to $4.1 billion

• In its second year, the Sustainable Agricultural Partnership (Sustainable CAP) (2023–28) invested $62.5 million in federal programs to benefit the sector. Funding applications far exceeded available allocations. Federal–provincial–territorial governments invested close to $481 million in cost-shared programming.
• The Poultry and Egg On-Farm Investment Program approved 1,388 contribution agreements, valued at over $127 million, to support on-farm investment projects for poultry and egg producers.
• As of March 31, 2025, 103 projects had been approved under the Supply Management Processing Investment Fund, representing a total investment of $258 million.
• The 2024–25 Departmental Results Report outlines results over the last three fiscal years under each core responsibility (Domestic and International Markets, Science and Innovation, and Sector Risk) of AAFC's Departmental Results Framework.
  • Actual spending was $4.0 billion compared to planned spending of $3.7 billion, an increase of $288.5 million or 7.7%
  • Actual spending was $4.0 billion compared to $4.2 billion in 2023–24, a decrease of $132.9 million or 3.2%
  • Actual FTEs were 5,134 compared to planned FTEs of 5,038 in 2024–25, an increase of 96 FTEs
  • Actual FTEs were 5,134 compared to 5,073 in 2023–24, an increase of 61 FTEs

The increase is primarily due to

• increased spending under the AgriInsurance Program
• new funding for the renewal of the Wine Sector Support Program and the Food Policy Initiatives.

Both were not included in the 2024–25 Main Estimates due to timing of their approval.

Spending — actual compared to the previous year

Actual spending has decreased compared to the previous year

• $4.0 billion in 2024–25 compared to $4.2 billion in 2023–24, a decrease of $132.9 million or 3.2%.

The decrease is primarily due to

• decreased requirement for support under the AgriRecovery and AgriStability programs
• decreased spending under the Dairy Direct Payment Program
• spending savings under the refocusing government spending exercise

This was offset by increased spending under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), the AgriInsurance Program, the Agricultural Clean Technology Program, the Supply Management Processing Investment Fund, and the Poultry and Egg On-Farm Investment Program.

Full-time equivalents — actual compared to planned

In 2024–25, actual full-time equivalents (FTE) were 5,134 compared to planned FTEs of 5,038, an increase of 96 FTEs. The increase was mainly due to

• support for service delivery improvements and government priorities
• new support received during the year for the Food Policy Initiatives

Full-time equivalents — actual compared to the previous year

In 2024–25, actual FTEs were 5,134 compared to 5,073 FTEs in 2023–24, an increase of 61 FTEs. The increase was mainly due to

• support for service delivery improvements and government priorities
• increased support for the On-Farm Climate Action Fund and supply-management initiatives

Sector

• employed 2.3 million people
• provided 1 in 9 jobs in Canada
• generated $150.0 billion (around 7%) of Canada's gross domestic product

Budget 2025 key investments

Budget 2025 includes more than $639 million over the next 5 years:

• $109.2 million to increase the compensation rate of the federal–provincial–territorial AgriStability Program;
• $97.5 million over 2 years to temporarily increase the Advance Payments Program interest-free limit to $500,000 for canola advances, to support producers hurt by trade disruptions. The interest-free limit for all advances has been increased to $250,000 for the 2025 program year;
• $75 million over 5 years for the AgriMarketing Program;
• $372 million over 2 years for biodiesel and renewable diesel.

In addition, funding amendments are also being proposed for the AgriStability Program to provide $8 million over 5 years (2026 to 2031) to make pasture-related feed costs eligible.

$1 billion in new lending is available to farmers facing through Farm Credit Canada's new Trade Disruption Customer Support Program, which was launched in March 2025.

The Budget includes $307.9 million over 2 years for the Youth Employment Strategy, which will provide around 20,000 youth with employment, training, mentorship and counselling every year. This strategy also supports AAFC's Youth Employment and Skills Program.

Broader Budget 2025 investments supporting agriculture

A set of enhanced tax deductions called Productivity Super-Deduction to allow businesses to write off more of their capital investments more quickly.

[Redacted]

• [Redacted]
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• [Redacted]

Grocery Code of Conduct

The office supporting the Grocery Code is now operational; full Code implementation and enforcement is to be in place by January 1, 2026.

Advance Payments Program was temporarily set at $250,000 for the 2025 program year instead of returning to $100,000 - additional interest savings of up to $65 million to over 13,000 producers.

For the remainder of the 2025 and 2026 program years, the interest-free limit for canola will be $500,000. approximately 1,745 canola producers (in program year 2025) and 6,000 canola producers (in program year 2026) with a combined $36.3 million ($5.1 million in 2025 and $31.2 million in 2026) in additional interest savings.

Pakistan's approval of Canadian genetically modified canola in October 2025 has reopened a market worth more than $200 million.

Negotiations are ongoing towards a Canada–ASEAN FTA and new accessions to the Comprehensive and Economic Partnership Agreement (CPTPP). Canada is also working toward the resumption of Canada–Mercosur FTA negotiations.

The Government has also implemented a three-year Recognized Employer Pilot, under the Temporary Foreign Worker Program, to test streamlined processes, be more responsive to labour market shortages and reduce the administrative burden for repeat employers who demonstrate a history of program compliance. Although new applications are no longer accepted, recognized employers can still access the simplified labour market impact assessment and benefit from a validity period of 36 months for applications that received a positive decision. The Government of Canada will evaluate the pilot's efficacy upon its conclusion in 2026.

This included AAFC's African Swine Fever Industry Preparedness Program, which recently ended after having successfully invested close to $15.5 million through 44 projects.

On March 7, 2025, the Government announced a commitment of up to $567 million to support hog producers should there be a closure of key export markets for Canadian pork products and live pigs due to an African Swine Fever outbreak in Canada or the United States.

In 2022, Canada's canola seed exports to Pakistan were valued at approximately $240 million.

Primary agriculture broadly uses the Seasonal Agriculture Worker Program stream, while food and beverage processing uses the Low-wage stream.

The Agri-Food Pilot, which let experienced non-seasonal workers in specific agri-food positions immigrate permanently to Canada, ended on May 14, 2025, and cannot be extended beyond this date.

HPAI has not been detected in dairy cattle or other cattle in Canada and is a reportable disease under the Health of Animals Act. All suspected cases must be reported to the CFIA.

Supporting the agricultural sector (new)

• The agricultural sector is critically important to feed the country and the world in a sustainable way. It is also a key driver of Canada's economy, contributing significantly to its GDP, employment and exports.
• Federal, provincial, and territorial governments are investing $3.5 billion over the five-year (2023 to 2028) Sustainable Canadian Agricultural Partnership to strengthen and grow the sector.
• This is in addition to other programs and continued support through our business risk management programs, which provide protection against income and production losses, and help producers manage risks that threaten the viability of their farm operations.

When pressed

How is the Government addressing the significant financial challenges facing Canadian producers?

To support producers navigating significant pressure and uncertainty, the interest-free limit for cash advances under the Advance Payments Program was temporarily set at $250,000 for the 2025 program year instead of returning to $100,000. This change is expected to provide an additional interest savings of up to $65 million to over 13,000 producers.

On September 5, 2025, the Government of Canada announced that it is temporarily doubling the interest-free portion for canola advances. For the remainder of the 2025 and 2026 program years, the interest-free limit for canola will be $500,000. It is expected that these program changes will provide approximately 1,745 canola producers (in program year 2025) and 6,000 canola producers (in program year 2026) with a combined $36.3 million ($5.1 million in 2025 and $31.2 million in 2026) in additional interest savings.

Domestic biofuels can provide an alternative market opportunity for canola and other agricultural feedstocks, which will help to reduce export related risks. To support this market, also on September 5, 2025, the Government of Canada announced a new Biofuel Production Incentive, led by Natural Resources Canada, with over $370 million for domestic biofuel producers to address immediate competitiveness challenges.

The Government also intends to make targeted amendments to the Clean Fuel Regulations to strengthen the resiliency and support the development of Canada's low-carbon fuel sector, while maintaining the regulations' primary focus on lowering carbon emissions.

The Government, working in conjunction with provinces and territories, extended the AgriStability enrolment deadline to July 31 and is increasing the compensation rate from 80% to 90% and doubling the current payment cap to $6 million for the 2025 program year.

What action is the Government taking to support the diversification of exports?

Trade diversification is our top priority. We remain steadfast in defending Canada's interest in the United States and China through advocacy and engagement, while at the same time advancing diversification priorities.

At a time of geopolitical uncertainty, positioning Canada as a supplier of choice is essential in gaining a competitive advantage, enabling us to expand our presence in established markets while unlocking new opportunities in high-growth, emerging regions, like the Indo-Pacific.

A recent milestone in Pakistan underscores how Canadian leadership on the international stage can deliver tangible results. After two years of sustained Government of Canada advocacy, Pakistan's approval of Canadian genetically modified canola in October 2025 has reopened a market worth more than $200 million — creating new opportunities for our canola producers.

This achievement reflects the strength of Canada's whole-of-government approach and ongoing collaboration with our industry partners. It is a prime example of how Canadian expertise and sustained engagement can help strengthen food security in international markets, while creating new opportunities and prosperity for farmers and communities here at home.

On September 5, 2025, the Government announced that it is expanding the AgriMarketing Program with an additional $75 million over 5 years, starting in 2026–27. This investment will help diversify Canada's exports into high-growth areas and will focus on sectors most affected by trade barriers, such as canola. Investments are aligned with Canada's Indo-Pacific Strategy, shifting focus beyond traditional trade partners, like the U.S. and China.

Canada continues to have an ambitious agenda for trade negotiations, involving a broad range of countries -- including emerging markets. The Government is actively negotiating and implementing new bilateral and regional free trade agreements to open opportunities to grow and diversify the agriculture sector's export markets.

Over the last year, Canada concluded major free trade agreement (FTA) negotiations under the Canada–Indonesia Comprehensive Economic Partnership Agreement (CEPA) and the Canada–Ecuador FTA. These agreements are anticipated to broaden the range of opportunities available to exporters, supporting greater diversification of their markets and products. More specifically, these agreements will provide tariff liberalization for a wide range of agriculture sectors (that is, meat, cereals, oilseeds, pulses, pet food and processed foods) and robust Sanitary and Phytosanitary and Technical Barriers to Trade chapters enforceable through dispute settlements.

Negotiations are ongoing towards a Canada-ASEAN FTA and new accessions to the Comprehensive and Economic Partnership Agreement (CPTPP). Canada is also working toward the resumption of Canada-Mercosur FTA negotiations.

Agriculture and Agri-Food Canada delivers a suite of market development programs and services to support diversification, including the Agri-Food Trade Commissioner Service, to enable Canadian companies to showcase their products and facilitate exports to both established and emerging markets. This includes diversification efforts by the Indo-Pacific Agriculture and Agri-Food Office, which focus on positioning Canada as a trading partner of choice in the fastest-growing economic region in the world.

Industry can also leverage the Canada Brand to ensure that Canadian products are increasingly recognized in international markets, strengthening Canada's reputation as a reliable supplier of a diverse range of quality, sustainable and innovative products.

Over the last year, we assisted hundreds of companies through our market development programming, with over 200 of them entering new markets. We continue to work hand-in-hand with provinces and industry stakeholders to solidify Canada's position for long-term success.

Opportunities for Canadian agricultural products around the world are numerous, however, exporting agriculture and food and securing new markets requires a concerted effort by the federal government.

Outreach is a powerful tool to unlock the sector's full potential to strengthen collaboration and resolve market access challenges. The recent (July–August 2025) ministerial mission to Indonesia, Singapore and the Philippines deepened bilaterial ties and, created tangible opportunities for our producers and exporters to promote Canada as a reliable supplier of agriculture and agri-food products, and spurred movement on a technical audit that needed political intervention to be prioritized. This mission showcased how targeted outreach can translate into real momentum and results for the sector.

How is the Government addressing labour challenges in the sector?

Both domestic and international workers will continue to be essential to the production of safe and reliable food in this country.

Therefore, the Government is working hard to implement a new foreign labour program for agriculture and fish processing, tailored to the unique needs of these employers and workers, a $48.2-million commitment announced in Budget 2022. Consultations with stakeholders on this commitment launched in spring 2024, and feedback is currently being analyzed.

The Government has also implemented a three-year Recognized Employer Pilot, under the Temporary Foreign Worker Program, to test streamlined processes, be more responsive to labour market shortages and reduce the administrative burden for repeat employers who demonstrate a history of program compliance. Although new applications are no longer accepted, recognized employers can still access the simplified Labour Market Impact Assessment and benefit from a validity period of 36 months for applications that received a positive decision. The Government of Canada will evaluate the pilot's efficacy upon its conclusion in 2026.

Finally, the Government is taking action to expand the pathways to permanent residency for experienced temporary foreign workers in the agricultural sector. Available programs to agri-food workers include federal high-skilled programs managed by Express Entry and regional economic immigration programs, such as the Provincial Nominee Program and the Atlantic Immigration Program. In addition, the Rural and Francophone Community Immigration Pilots will help connect businesses and employers in remote communities with the skilled newcomers they need to thrive.

How is the Government supporting producers impacted by extreme weather situations, such as droughts and wildfires?

Federal, provincial and territorial ministers of agriculture are committed to work together to ensure producers have access to a full suite of business risk management programs that are timely and reliable.

AgriInsurance serves as the suite's first line of defense for crop producers facing damages associated with extreme weather conditions. The program ensures access to affordable and effective crop insurance and is managed by the local provincial government who is also responsible for establishing the policies and program parameters for all public insurance plans in their jurisdiction.

Producers also have access to AgriStability, which provides protection for income losses of more than 30%. Under the Sustainable Canadian Agricultural Partnership, the AgriStability compensation rate was raised from 70% to 80% to provide additional support in times of need. In addition, the Government is increasing the compensation rate from 80% to 90% and doubling the current payment cap to $6 million for the 2025 program year.

In severe cases where producers experience significant extraordinary costs beyond their capacity to manage, governments will collaborate to share information and complete AgriRecovery assessments, ensuring producers have the funding they need for their recovery and to continue to be resilient in the face of natural disasters and extreme weather events.

What is the Government doing to enhance the environmental performance and resilience of the agriculture sector?

Since 2021, we have pledged over $1.5 billion to ensure a successful, sustainable agriculture and agri-food sector.

As part of the Sustainable Canadian Agricultural Partnership, a $250 million Resilient Agricultural Landscape Program is supporting ecological goods and services provided by the agriculture sector.

The Government has invested $704.1 million into the On-Farm Climate Action Fund, $185 million into the Living Labs program, $429.4 million into the Agricultural Clean Technology-Adoption and Research and Innovation Streams, and the Research and Innovation Accelerator Pilot, to support the development and adoption of clean technologies and beneficial management practices that reduce emissions.

In 2023, we launched the $12 million Agricultural Methane Reduction Challenge to accelerate the development of solutions that aim to reduce enteric methane emissions in cattle.

What is the Government doing to protect and strengthen Canada's supply chains?

We have seen how supply chain disruptions can severely impact the sector and, by extension, Canadians.

Agriculture and Agri-Food Canada is actively supporting Transport Canada's efforts to reduce bottlenecks and increase transparency and fluidity along the supply chain, including the establishment of the National Supply Chain Office. Additionally, AAFC supports the whole of Government approach under Bill C-5, the Building Canada Act, which seeks to foster the development of economic and trade corridors, connect different parts of the country and get goods to market, and strengthen Canada's ability to trade. This includes new infrastructure and national building projects, as well as improvements to existing critical infrastructure.

How is the Government supporting preparation and prevention of disease outbreaks?

Strict measures are in place to prevent livestock diseases from entering Canada. Measures include animal and food import controls and declarations for travellers at the border. In the event of an outbreak, the Government would move quickly to detect, trace, and eradicate disease while ensuring the sector has the support needed.

The Government continues to implement the African Swine Fever Action Plan, focused on disease prevention, biosecurity, and preparedness. In August 2022, the Government committed up to $45.3 million to enhance preparation and prevention efforts. This included AAFC's African Swine Fever Industry Preparedness Program, which recently ended after having successfully invested close to $15.5 million through 44 projects.

On March 7, 2025, the Government announced a commitment of up to $567 million to support hog producers should there be a closure of key export markets for Canadian pork products and live pigs due to an African Swine Fever outbreak in Canada or the United States.

In addition, Budget 2023 announced $57.5 million over five years and $5.6 million ongoing to establish a foot and mouth disease vaccine bank and to develop response plans.

Finally, the 2024 Fall Economic Statement provided $27.9 million to the Canadian Food Inspection Agency to support a federal approach for early detection, active prevention and rapid response measures to protect human and animal health from highly pathogenic avian influenza H5N1.

The Government continues its engagement with provincial and territorial governments, as well as industry, to ensure effective coordination and advancement in animal disease prevention and preparedness.

How is Agriculture and Agri-Food Canada supporting Indigenous Peoples' food security and sector diversity within Canada's agriculture and agri-food sector?

We are committed to advancing reconciliation with Indigenous Peoples through a renewed, nation-to-nation, government-to-government, and Inuit-Crown relationship based on recognition of rights, respect, co-operation, and partnership. We are working collaboratively to reduce barriers, enhance food security and support greater participation in the sector for First Nations, Inuit and Métis.

AAFC is the federal lead on implementing Action Plan Measure 87 outlined in the 2023-to-2028 UN Declaration Act Action Plan, which commits the Government to support Indigenous Peoples' food security, sovereignty and sustainability.

A more diverse and inclusive sector can provide significant benefits for innovation, competitiveness and sustainable economic growth.

The Government recognizes that there are many challenges facing Indigenous Peoples and other underrepresented and marginalized groups in participating in the agriculture and agri-food sector.

The Government delivers a number of programs and services to help reduce barriers and support the participation of Indigenous Peoples and other underrepresented and marginalized groups in the agriculture and agri-food sector, such as the AgriDiversity Program, Local Food Infrastructure Fund, and Indigenous Pathfinder Service.

The Government continues to prioritize addressing barriers and creating opportunities for underrepresented and marginalized groups, and advancing diversity, equity, inclusion, and accessibility in the sector. AAFC has implemented a framework to guide the integration of these considerations across departmental initiatives. For example, Sector Engagement Tables and councils include a diversity of perspectives in advice, recommendations and initiatives — identifying opportunities for participation of youth and new entrants, Indigenous Peoples and other underrepresented and marginalized groups.

Background — supporting the agricultural sector

Sustainable Canadian Agricultural Partnership (Sustainable CAP)

This $3.5 billion, five-year agreement (2023-2028) injects $500 million in new funds, representing a 25% increase in the cost-shared portion of the partnership. Under the cost-shared envelope, federal, provincial and territorial (FPT) governments agreed in principle and subsequently implemented the $250 million Resilient Agricultural Landscape Program to support ecological goods and services provided by the agriculture sector.

Advance Payments Program

To ensure that Canadian farmers have access to the cash flow needed to continue producing food and supporting national food security, the Government increased the $100,000 interest-free limit on loans temporarily under the Advance Payments Program to $250,000 in 2022, to $350,000 in 2023 and to $250,000 in 2024, representing a total savings of $175.1 million for producers over the three-year period (2022 to 2024).

Year-over-year volatility has created cumulative pressures for farms, most of which are farm families facing inflation of household expenses as well. On March 7, 2025, the interest-free limit for loans under the Advance Payments Program was temporarily set at $250,000 for the 2025 program year. Participating producers could save up to $5,000 in interest costs. This change will represent estimated savings of up to $65 million for over 13,000 producers.

On September 5, 2025, the Government announced that the interest-free limit will be temporarily increased to $500,000 for advances on canola in the 2025 and 2026 program years. It is expected that these program changes will provide approximately 1,745 canola producers (in program year 2025) and 6,000 canola producers (in program year 2026) with a combined $36.3 million ($5.1 million in 2025 and $31.2 million in 2026) in additional interest savings.

AgriStability

AgriStability offers affordable, whole farm protection to support producers when challenges are beyond their capacity to manage. It is cost-shared between FPT governments with the federal government contributing 60% and the provincial/territorial government contributing 40% of the costs.

On July 17, 2025, FPT ministers announced increased support for the agricultural sector through AgriStability: increasing the compensation rate from 80% to 90% and doubling the current payment cap to $6 million for the 2025 program year. Increasing the compensation rate will provide additional support to all producers who trigger a payment. Temporarily doubling the current AgriStability payment cap, which has not been updated in over 20 years, will ensure that more producers receive support at a level appropriate to their farm size.

To get money to producers faster, provincial and territorial governments have the option to proactively increase interim payment rates and initiate Targeted Advance Payments. In provinces and territories that implement these options, producers enrolled in AgriStability will be eligible to apply for an interim payment of up to 75% of their estimated final payment for the 2025 program year. Additionally, an administrator will be able to establish a Targeted Advance Payment for the 2025 program year, for example, where analysis shows that market disruptions have resulted in a sufficient loss to trigger AgriStability payments for a particular sector or region.

FPT governments also agreed to extend the AgriStability enrolment deadline from April 30, 2025, to July 31, 2025, for the 2025 program year, which allowed producers more time to make their decisions on whether to participate in the program.

Trade and Market Access

Agricultural trade is critical to the long-term economic growth of the sector. In 2024, trade data showed record levels of agriculture, agri-food and seafood exports, reaching nearly $100.3 billion, a 1.1% increase from 2023. Close to half of the value of Canadian agricultural production is exported to international markets.

The World Trade Organization's (WTO) Agreement on Agriculture (AoA), which came into effect on January 1, 1995, established key multilateral rules on tariff market access, domestic support (that is, agriculture subsidies), export competition, export restrictions and transparency. After almost 30 years, these continue to provide significant value for Canada's agriculture sector, including by helping level the playing field and supporting our producers' and exporters' competitiveness. The WTO agreements (including the AoA) built the foundation upon which Canada's free trade agreements rest. While the AoA is a significant achievement, many outstanding issues remain, and its rules need to be adapted to 21st century realities. This is why Canada is actively engaged in the ongoing WTO agriculture negotiations, including to further reduce global levels of trade-distorting subsidies.

In December 2024, the Government concluded free trade negotiations with Indonesia, a G20 country and Southeast Asia's largest economy, with a population of 279 million and GDP of close to $1.9 trillion in 2023. The Canada–Indonesia CEPA will provide broad tariff elimination on beef, pork, cereals, pulses, canola, pet food and processed foods. In February 2025, the Government concluded negotiations with Ecuador, securing preferential treatment for key exports, including grains, oilseeds, cereals, meat, pulses, processed foods and sugar-containing products.

The Government is also engaged in active free trade negotiations with the Association of South East Asian Nations (ASEAN), as well as the accession of Costa Rica to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with a view to help grow and diversify Canada's trade.

Canada has also announced exploratory discussions with the Philippines for a bilateral trade agreement and is considering the potential resumption of free trade agreement negotiations with Mercosur countries.

The Canada–European Union Comprehensive Economic and Trade Agreement (CETA) came into force on September 21, 2017, the CPTPP came into force on December 30, 2018, and the Canada–United States–Mexico Agreement (CUSMA) entered into force on July 1, 2020. These trade agreements offered significant opportunities for the Canadian agriculture and agri-food sector but created some challenges due to new market access for supply-managed dairy products. The Government has announced $4.8 billion in compensation to supply-managed sectors for the impacts of CETA, CPTPP and CUSMA.

The Government continues to urge trading partners to adopt sanitary and phytosanitary measures and regulations that are based on risk and scientific evidence in accordance with trade agreements and international standards to provide a transparent and predictable trade environment for Canada's exporters. This approach has led to the advancement and resolution of a number of key market access issues. Recent examples include gaining new access for fish, seafood, meat and meat products to Saudi Arabia, pet food and blueberries to Vietnam, enhancing access for potatoes to the Philippines and apples to Taiwan, as well as maintaining wheat access to Indonesia and Peru, and pork access to Malaysia. In addition, the Government is facilitating regular bilateral and multilateral engagement with key international partners to advance Canada's agricultural trade priorities and support market access, such as ministerial missions, senior official meetings, technical missions, audits of Canada's animal, plant and food safety systems, and working groups.

AAFC and the Canadian Food Inspection Agency (CFIA), in collaboration with Global Affairs Canada, adopted a Team Canada approach to prioritizing and resolving technical market access issues. This Federal Market Access approach relies on a whole-of-government model and on working closely with provinces and industry to collectively promote Canadian agriculture and agri-food products and respond to various forces driving global trade.

The Government of Canada released the Indo-Pacific Strategy in November 2022, covering five strategic objectives across various sectors. It is a comprehensive plan with an initial investment of approximately $2.3 billion over five years to strengthen relationships and advance Canada's commitment to a free, open and inclusive Indo-Pacific, with ASEAN at its core.

Under the strategy, the Indo-Pacific Agriculture and Agri-Food Office, established in February 2024, contributes to a whole-of-government approach to foster and strengthen economic partnerships in the region and help position Canada as a preferred supplier. By advancing market access, market development and regulatory and technical collaboration activities, the office supports Canadian exporters in finding new opportunities to diversify their exports, in a region representing significant opportunities for the agriculture and agri-food sector. The office focuses its efforts on six priority markets for agriculture in the region, including the Philippines, Indonesia, Vietnam, Malaysia, Singapore, and Thailand, to diversify Canada's agri-food trade.

Under the Sustainable Canadian Agricultural Partnership, the $129.97 million AgriMarketing Program promotes trade by increasing the visibility of Canadian agricultural products (including fish and seafood) and the capacity of producers to identify and seize market development opportunities. On September 5, 2025, the Government announced an additional $75 million over five years, starting in 2026–27 to expand the program. This expansion will support sectors most affected by trade barriers, like canola, and aligns with Canada's Indo-Pacific Strategy, shifting focus beyond traditional trade partners like the U.S. and China. For example, for canola producers, this means enhanced resources to promote the unique quality, versatility and sustainability of Canadian canola products, helping them stand out in competitive new markets and build resilient export pathways.

Pakistan — genetically modified canola approvals and upcoming market engagement

On October 22, 2025, Pakistan's National Biosafety Committee formally approved several genetically modified (GM) canola events, paving the way for the resumption of Canada's GM canola seed exports once import licences are issued to importers in late 2025. This approval follows two years of market disruption caused by Pakistan's enforcement of its 2005 biosafety rules in fall 2022. Sustained advocacy by AAFC, Global Affairs Canada and Post-Islamabad led to this major breakthrough. In 2022, Canada's canola seed exports to Pakistan were valued at approximately $240 million. From 2014 to 2022, Canadian canola exports to Pakistan averaged $364 million, peaking at $705 million in 2016, before declining as the industry shifted their focus to higher-value markets like China, which offered premium prices, while Pakistan remained a price-sensitive and logistically challenging market.

Labour

The Temporary Foreign Worker (TFW) Program aims to assist employers in filling their temporary skills and labour requirements when qualified Canadians and permanent residents are not available. Agricultural employers are the highest volume users of the program. Most TFWs in the sector are hired in low-wage occupations, such as general farm workers, industrial butchers and fish plant workers. There are different streams under the TFW program, which have different requirements and rules.

Primary agriculture broadly uses the Seasonal Agriculture Worker Program stream, while food and beverage processing uses the Low-wage stream.

In Budget 2022, the Government of Canada launched a three-year Recognized Employer Pilot (REP) under the Temporary Foreign Worker Program to help address labour shortages and reduce the administrative burden for repeat employers who demonstrate a history of complying with program requirements. Under REP, eligible employers gain access to labour market impact assessment (LMIA) validity periods of up to 36 months, and a simplified LMIA application should they need to hire additional workers from the same occupation during the pilot. Although applications to participate in REP closed on September 16, 2024, recognized employers can still access a simplified LMIA.

Budget 2022 also introduced a commitment to launch a new program for agriculture and fish processing. Consultations on the new program with stakeholders began in spring 2024 and the Government is currently reviewing and analyzing feedback, which will be shared in a What We Heard Report. The Government aims to reform and streamline the Temporary Foreign Worker Program to support employers and better protect workers.

The Agri-Food Pilot, which let experienced non-seasonal workers in specific agri-food positions immigrate permanently to Canada, ended on May 14, 2025, and cannot be extended beyond this date. Facilitating transitions from temporary worker to permanent residency is a dominant feature of Canada's immigration system. Several pathways to permanent residence remain:

• category-based selection under Express Entry includes agriculture and agri-food as a priority category
• the provincial nominee programs give provinces and territories the ability to create dedicated streams based on their economic needs
• the Atlantic Immigration Program is an employer-driven program that aims to attract skilled immigrants to Atlantic Canada to address demographic and economic needs and increase retention in the region
• the Rural and Francophone Community Immigration Pilots, which were launched in January 2025, help 18 rural and Francophone minority communities attract and retain newcomers with the right skills to their regions

Extreme weather, including drought and wildfires — business risk management support

Business risk management (BRM) programs are joint federal–provincial–territorial programs (cost-shared 60:40 federal: provincial-territorial) that help producers manage risks that threaten the viability of their farms and provide protection against different types of income and production losses. Producers take responsibility for managing normal risks, while government support is in place to help manage events that exceed producers' capacity to manage.

AgriInsurance aims to reduce the financial impacts of production losses by providing affordable insurance protection and by offering reinsurance. It stabilizes producers' income by minimizing the economic effects of primarily production losses caused by severe but uncontrollable natural hazards (for example, drought, flood, uncontrolled disease).

AgriStability is a margin-based program that protects Canadian producers against large declines in farming income for reasons such as production loss, increased costs and market conditions.

AgriRecovery is a federal–provincial–territorial initiative designed to assist agricultural producers with the extraordinary costs required to recover from a natural disaster. It operates as a collaborative framework, bringing together governments to assess impacts and deliver targeted assistance when producers experience extraordinary costs beyond their capacity to manage. While AgriRecovery plays an important role in addressing recovery needs, it is not meant to replace available coverage under other programs such as AgriInsurance, AgriStability, and AgriInvest.

Environment and climate change

Since 2021, the Government of Canada has announced over $1.5 billion in funding to advance climate change mitigation in the sector. This includes

• $185 million over 10 years for the Agricultural Climate Solutions: Living Labs Program
• $704.1 million over 6 years for the Agricultural Climate Solutions: On-Farm Climate Action Fund
• $429.4 million over 7 years for the Agricultural Clean Technology-Adoption and Research and Innovation Streams and the Research and Innovation Accelerator Pilot
• $12 million over 4 years for the Agricultural Methane Reduction Challenge
• $150 million in federal contributions for a Resilient Agricultural Landscape Program under the Sustainable Canadian Agricultural Partnership

Together, these programs aim to create an enabling environment for the accelerated development and adoption of climate smart beneficial management practices and technologies.

Recent years have demonstrated the extraordinary challenges farmers face on the front lines of climate change. Extreme weather events are projected to become more severe and costly for the agricultural sector in the coming decades.

Supply chains

In response to supply chain challenges, Budget 2022 announced over $600 million to help build more efficient and resilient supply chains, fund projects to ease the movement of goods, use data to make our supply chains more efficient, and reduce the burden of red tape.

Budget 2023 provided $27.2 million to Transport Canada to establish a National Supply Chain Office to respond to disruptions and better coordinate action to increase the capacity, efficiency, and reliability of Canada's transportation supply chain infrastructure.

The Government of Canada will also collaborate with stakeholders to develop a long-term roadmap for Canada's transportation infrastructure to better plan and coordinate investments required to support future trade growth. Budget 2023 provided $25 million to Transport Canada to work with Statistics Canada to develop transportation supply chain data that will help reduce congestion, make our supply chains more efficient and inform future infrastructure planning.

Successive labour disruptions in the supply chain (specifically, the rail workers' strike at CN/CPKC in August 2024 and the work stoppages at the ports of Vancouver, Prince Rupert and Montréal in fall 2024) have intensified calls from the agriculture sector to make ports, rail and other supply chain systems essential services. During these disruptions, the Minister of Labour referred the matters to the Canada Industrial Relations Board for final and binding arbitration and directed the resumption of all operations. In response, the unions stated their intention to legally challenge the Government's intervention.

African swine fever

Canada Border Services Agency (CBSA) and the CFIA have taken concrete actions to prevent the spread of African swine fever (ASF) from affected countries to Canada, as an outbreak would devastate the pork industry. Federal and provincial governments and industry have collaborated to create the Pan-Canadian ASF Action Plan, which identifies priority activities under four framework pillars:

• prevention and enhanced biosecurity
• preparedness planning
• ensuring business continuity
• coordinated risk communications

AAFC is working with provinces and industry on plans to support the sector should ASF arrive in Canada. In August 2022, the Government announced up to $45.3 million to enhance efforts to prevent ASF from entering Canada and prepare for a potential outbreak. The funding has been critical in reducing the risk of introduction and spread of ASF in Canada. As part of this investment, AAFC's up to $23.4 million African Swine Fever Industry Preparedness Program successfully invested close to $15.5 million in 44 approved projects that have had a significant positive impact on ASF preparedness and mitigation across the country. The program ended on March 31, 2025, with projects supporting the Canadian pork industry's efforts to address gaps, and anticipate the tools, partnerships, and activities required to enable an early detection of ASF and implement an effective emergency response. The remainder of the total investment included $19.8 million to support CFIA prevention and preparedness efforts and up to $2.1 million to enhance CBSA border control activities.

In March 2025, the Government of Canada announced a commitment of up to $567 million to support hog producers should there be a closure of key export markets for Canadian pork products and live pigs due to an ASF outbreak in Canada or the United States. The funding will be available to hog producers at the onset of an ASF outbreak and the subsequent twelve months. AAFC continues to work collaboratively with provinces and territories to develop and implement agreements ahead of an ASF outbreak, and to secure the provinces' 40% share to support the sector.

Foot and mouth disease vaccine bank for Canada

Foot and mouth disease (FMD) presents one of the greatest economic threats to Canadian animal agriculture and is viewed as the most important transboundary animal disease in the world. A single case of FMD in Canada would result in a full and immediate border closure to exports from all livestock sectors. Without the vaccine bank, it would take at least 18 months for Canada to regain access to foreign markets and cost the Canadian economy between $19.4 billion and $65.2 billion.

While Canada has access to 312,000 doses of vaccine from the North American Foot and Mouth Disease Vaccine Bank, it falls well below the estimated 1.9 million to 2.7 million doses required to control a large outbreak. Funding provided through Budget 2023 will enable CFIA to secure a strategic reserve of 30 million doses of FMD vaccines to protect Canada's livestock industry against large and uncontrolled FMD outbreaks.

By not securing this stockpile, Canada would be at a disadvantage given the now heightened global demand. This vaccine bank will help protect Canada from the emerging threat of this disease, maintain public confidence in the Canadian food supply, and help mitigate prolonged market disruptions to trade should an outbreak occur.

Avian influenza

Avian influenza (AI) is a contagious viral infection that can affect several species of food producing poultry as well as pets, wild birds, and mammals, including cattle. AI viruses can be classified into two categories based on the severity of the illness caused in poultry: low pathogenicity (LPAI) and high pathogenicity (HPAI) forms.

In Canada, HPAI and LPAI subtypes H5 and H7 are reportable under the Health of Animals Act and the Reportable Diseases Regulations. All suspected cases of AI, in any species, must be reported to the CFIA.

Avian influenza outbreaks are occurring around the world in poultry populations. The CFIA actively monitors AI outbreaks in trading partner countries and puts border lookouts and trade restrictions in place to reduce the risk of importing the virus in live birds, hatching eggs, or avian products and by-products.

When AI is detected in domestic poultry, the CFIA declares primary control zones to help control the disease and any potential spread through movements of domestic poultry, vehicles and other things that may spread the disease.

In March 2024, the United States Department of Agriculture reported cases of HPAI H5N1 in dairy herds in Texas and Kansas. This was the first known transmission of HPAI H5N1 to cattle. Since this time, cases have been reported in other U.S. states and have been associated with the movement of infected cattle.

HPAI has not been detected in dairy cattle or other cattle in Canada and is a reportable disease under the Health of Animals Act. All suspected cases must be reported to the CFIA.

HPAI is not a food safety concern and the risk of transmission to humans remains low.

Indigenous Peoples' food security

AAFC is the federal lead on implementing Action Plan Measure 87 (APM SP 087) outlined in the 2023–2028 UN Declaration Act Action Plan, which commits the Government to Support Indigenous peoples' food security, sovereignty and sustainability through

• funding and other program measures
• promoting food-focused research to better understand the intersection of Indigenous peoples' food security, sovereignty, and sustainability
• promoting trade in Indigenous peoples' food products and removal of barriers to trade.

According to 2021 Statistics Canada data, Indigenous farm operators represented 2.2% of total farm operators. On average, Indigenous operators were more likely to operate smaller farms, more commonly women, and tended to be younger in comparison with the non-Indigenous population.

Data from the First Nations Regional Health Survey indicated that in 2016, half (50.8%) of First Nations adults on reserve lived in households that were food insecure. The last available data from the Aboriginal Peoples Survey in 2017 reported 30% of Métis and 76% of Inuit over the age of 15 lived in a food insecure household.

Sector diversity

AAFC's Framework for Supporting Underrepresented and Marginalized Groups in the Agriculture and Agri-Food Sector serves to guide the department's efforts to address barriers, create opportunities and advance diversity, equity, inclusion and accessibility in the sector. These groups include, but are not limited to, Indigenous Peoples, women, youth, racialized persons, persons with disabilities, 2SLGBTQI+ communities and official language minority communities. Based on the 2021 Census of Agriculture, among all farm operators, 30.4% were women, 2.2% were Indigenous, 4.0% identified as being racialized, and 60.5% were aged 55 and older, while 8.6% were younger than 35. The Framework supports the identification of barriers and includes goals and objectives that guide efforts to enhance the accessibility and equity of AAFC services and initiatives.

AAFC has a number of programs and services to help reduce barriers and support the participation of Indigenous Peoples and other underrepresented and marginalized groups in the agriculture and agri-food sector.

• The AgriDiversity Program is a 5-year, $5 million program (2023–2028) that supports activities that strengthen Canada's agriculture sector to better leverage the potential offered by youth, women, Indigenous Peoples, people with disabilities, racialized groups (visible minorities), 2SLGBTQI+ communities, and official language minority communities.
• The Youth Employment and Skills Program is designed to incentivize employers in the agriculture and agri-food sector to hire Canadian youth ages 15 to 30, with a focus on those facing barriers to employment, including those from underrepresented and marginalized groups. It helps youth facing barriers gain career-related work experience in the agriculture sector.
• The Local Food Infrastructure Fund supports projects that strengthen community food security and increase the availability and accessibility of local, nutritious and culturally appropriate food through food production-focused activities for equity-deserving groups, particularly Indigenous and Black communities.
  • Furthermore, the 2024–25 and 2025–26 intake periods of the Local Food Infrastructure Fund included a priority for projects that predominantly serve equity-deserving groups, particularly those that are led by or focus on Indigenous and Black communities.
• The Indigenous Pathfinder Service connects First Nations, Inuit, and Métis Peoples to the programs and resources that exist to help develop opportunities and expand in the agriculture, agri-food, and agri-based product sectors.

Diverse representation is an important consideration in the composition of all Sector Engagement Tables (SETs) and councils to support the inclusion of a diversity of perspectives in advice, recommendations and initiatives. Through the SETs and councils, AAFC is exploring ways to increase representation, aiming for gender parity and a significant representation (30%) of underrepresented and marginalized groups, aligning with the Government of Canada's 50–30 Challenge, and has also introduced work under the SETs to focus on reducing barriers for new entrants in the sector, including those faced by underrepresented and marginalized groups.

• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with the UK included, now accounts for roughly 15% of the global economy and approximately 580 million consumers.

When pressed

Canada is pressing for the UK to focus on science-based regulations and live up to its international trade obligations.

While 99% of bilateral trade is duty-free under the Trade Continuity Agreement, Canada secured additional duty-free volumes into the UK for pork and beef, as well as unlimited access for some agricultural products, such as sweetcorn.

Consistent with the Government of Canada's commitment, we will not be providing additional market access for supply-managed products through this accession.

Canada and the UK have a comprehensive trade agreement in place that provides tariff-free access for the vast majority of agriculture products — the Canada–UK Trade Continuity Agreement — which does not expire.

The UK was Canada's nineth-largest agri-food and seafood export market in 2024, with $950 million in total exports.

Between January and July 2025, Canadian agri-food and seafood exports to the UK increased 23.0% to $560.4 million, mainly in wheat (+13.1%), corn (+75.0%), pulses (+10.9%), bread and pastries (+0.9%), other oilcakes (+2,770.0%) and other sugars including maple products (+14.4%).

The Canada–UK Trade Continuity Agreement provides Canadian exporters and investors across the Canadian economy with extensive preferential access to the UK market, including the elimination of 99% of tariffs on Canadian goods.

The CPTPP agreement has been ratified, implemented and is in force for all 11 original CPTPP signatories (Canada, Australia, Japan, Mexico, New Zealand, Singapore, Vietnam, Peru, Chile, Malaysia and Brunei).

The UK was the first economy to formally submit its request to accede to the CPTPP.

In return for the UK's tariff commitments under the CPTPP, Canada will provide the UK with volume-limited TRQ access for UK beef into Canada, as well as access to the rest of its CPTPP tariff commitments, including Canada's existing CPTPP tariff rate quotas for dairy, poultry and eggs, without expanding any of the existing quota volumes.

To date, the UK and all CPTPP parties, with the exception of Canada and Mexico, have completed domestic ratification procedures.

On September 18, 2025, the Honourable Maninder Sidhu tabled the United Kingdom Accession Protocol to the CPTPP agreement in the House of Commons. Following the Policy on Tabling of Treaties in Parliament, the first step of the implementation process requires the Government to table the protocol in Parliament for at least 21 sitting days. The implementing legislation Bill C-13, An act to implement the Protocol on the Accession of the United Kingdom of Great Britain and Northern Ireland to the CPTPP, was introduced in the House of Commons and received its first reading on October 21. It will now proceed through the standard parliamentary process.

In accordance with the entry into force provisions, the UK officially became a party and the protocol entered into force between the UK and ratifying parties on December 15, 2024 (December 24, 2024, for Australia). For future ratifications, the protocol will enter into force between the UK and the other parties (such as Canada) 60 days after those parties ratify the protocol.

In terms of the bilateral trade of beef with the UK, Canada's imports from the UK have increased over the past 5 years, while exports to the UK have decreased. In 2024, Canada imported a total of 5,182 metric tonnes of beef and beef products from the UK, valued at C$42.5 million. Between January and August of 2025, Canada imported 3,955 metric tonnes (C$32.2 million), which represents an increase of 19.4% over the same period in 2024.

In contrast, Canadian beef and beef product exports to the UK have declined sharply from 1,415 metric tonnes (C$17.7 million) in 2020 to only 517 kg (C$25,000) in 2024, with no exports recorded between January and August 2025.

The Government of Canada has initiated a dispute settlement process at the World Trade Organization with respect to these unjustified tariffs.

The Government of Canada is working in collaboration with the provinces and industry, to mitigate the impacts of these trade measures, including identifying new market opportunities for Canadian products.

We will continue working with all key players to uphold rules-based trade to maintain predictability for our agriculture producers and exports.

Canadian exports of agricultural, agri-food, and fish and seafood products to China were valued at $11.5 billion in 2023 and decreased to $9.6 billion in 2024, representing 9.4% of Canada's total agriculture, agri-food and fish/seafood exports to the world.

Key exports to China in 2024 were grains and oilseeds (such as, canola seed, barley, wheat, soya beans), fish and seafood, dried peas, pork products and animal feed (such as canola meal).

Canada's share of China's global imports of agriculture, agri-food, and fish and seafood products (by value) has been declining since 2018: 5.8% in 2018 to 3.9% in 2024.

In 2024, canola seed exports to China totalled 5.9 million tonnes, representing about 68% of total canola exports to all markets.

After China, Canada's largest canola seed export markets in 2024 were Japan, Mexico, the United Arab Emirates and the U.S. The concentration in canola oil and meal is even greater, with 95.5% of canola oil heading solely to the U.S., and 99.7% of canola meal heading to the U.S. and China combined in 2024.

Canadian exports of canola meal to China totalled $918 million in 2024, while exports of canola oil represented approximately $21 million. Canada's pea exports to China amounted to $306 million in 2024. In the same year, Canada exported $1.3 billion and $469 million in fish and seafood products and pork products, respectively, to China.

In September 2024, China's Ministry of Commerce (MOFCOM) announced a series of measures in response to Canada's announcement, including:

• initiation of a WTO dispute against Canada;
• initiation of an "anti-discrimination investigation" under its domestic law against Canada's measures;
• initiation of an anti-dumping investigation into imports of canola seed from Canada

Anti-discrimination investigation

On March 8, 2025, MOFCOM announced the conclusion of its "anti-discrimination" investigation. Effective March 20, 2025, 100% tariffs are being imposed on imports of Canadian canola oil, canola meal and peas, and a 25% tariff is being imposed on certain fish, seafood and pork products.

On March 20, Canada filed a request for consultations with China at the WTO. Those consultations were held on April 23 and resulted in little progress towards a resolution. Canada's second request for the establishment of a panel was granted at the June 23 WTO Dispute Settlement Body meeting.

Trade impacts as a result of the imposition of tariffs on Canadian agriculture and agri-food products include:

• exports of canola oil to China have stopped
• exports of canola meal and peas have significantly decreased
• pork industry indicated a reduction of export volumes by 20 to 30%

Anti-dumping investigation on canola seed

On September 9, 2024, China formally launched a self-initiated anti-dumping investigation into imports of Canadian canola seed. Canada is participating actively in China's anti-dumping investigation to help defend Canadian interests. This includes engaging with MOFCOM via the Canadian Embassy in Beijing, placing evidence on the record of investigation, responding to questions in the detailed questionnaire issued by MOFCOM, participating in multiple hearings with MOFCOM, and submitting comments on MOFCOM's preliminary determination as well as two expert reports.

On August 12, 2025, MOFCOM announced the findings from their preliminary determination that there was dumping of Canadian canola seed, and that China's domestic rapeseed industry suffered "substantial damage" as a result. MOFCOM announced the imposition of a provisional duty rate of 75.8% on imports of seed from Canada, effective August 14, 2025.

On September 5, 2025, MOFCOM announced that it had extended the investigation period by six months. The investigation was set to conclude on September 9, 2025, and has now been extended until March 9, 2026.

The Government of Canada is closely monitoring India's decision to impose a global 30% import duty on yellow peas, which took effect November 1, 2025.

India was Canada's sixth largest export market for agri-food and seafood products in the world in 2024, with exports worth CAD $1.4 billion, accounting for nearly 28% of the value of Canada's total exports to India in 2024. Agri-food exports in 2024 were up by 73.9% from 2023, but still down from a peak of C$1.5 billion in 2015. Top exports in 2024 included: pulses (C$1.4 billion) composed mostly of dried peas ($789 million), dried lentils ($604 million) and chickpeas ($6 million).

In 2024, Canada imported just over C$1.2 billion of agri-food and seafood products from India, representing an increase of 10.7% from the previous year. Top five imports were crustaceans (16.9%), rice (14.3%), bread and pastry cakes (6.1%), processed seafood products (5.3%) and pulses (3.3%).

[Redacted]

The previous duty-free access for yellow peas, first announced in December 2023 and extended until March 31, 2026, has now been reversed. On October 29, 2025, India announced that, effective November 1, 2025, a 30% import duty on yellow peas, (10% Basic Customs Duty plus 20% Agriculture Infrastructure and Development Cess [AIDC]) will apply to peas from all trading partners. Consignments with a bill of lading dated on or before October 31, 2025, will be exempted.

With respect to non-tariff barriers, Canada has been seeking to improve access for pulses by working with India's to recognize Canada's "systems approach" to pest management in lieu of India's requirement for fumigation. Canada and India implemented a trial period in March 2023. The final shipment of lentils under the pilot was cleared successfully in September 2025. [Redacted]

Effective February 20, 2024, India reduced import duties on fresh, dried, or frozen blueberries and cranberries (from 30% to 10%) for all trading partners, including the U.S which had a longstanding dispute at the WTO related to measures concerning the importation of certain agricultural products.

India's tariff flexibility and transparency under WTO commitment

Under WTO rules, India's bound tariff rates for pulses (HS 07.13) are set at 100%, except for peas (HS 0713.10), which are capped at 50%. This allows India to adjust applied tariffs within those limits — ranging from 0 to 50% for peas and 0 to 100% for other pulses—without breaching its WTO commitments. [Redacted]

Budget 2025 reiterated support for the agriculture sector through enhancements to the AgriStability, Advance Payments and AgriMarketing programs, and focused support for the canola and domestic biofuels sectors.

Budget 2025 includes key business investments and tax incentives to help ensure a competitive and sustainable agriculture and agri-food sector, including through improved supply chain infrastructure, support for innovation, measures to address labour challenges, and enhanced trade diversification and market access for food export.

At a time when the Canadian agriculture and agri-food sector is navigating significant pressures and uncertainty, the Government is committed to ensuring that the sector is able to remain resilient and continue to feed the country and the world.

When pressed

How is the Government addressing the significant financial challenges facing Canadian producers?

Due to the uncertain trade environment and unfavourable climate conditions in parts of the country, federal, provincial and territorial agriculture ministers agreed to take the necessary steps to implement a package of enhancements to the AgriStability program. For the 2025 program year only, the compensation rate will be increased from 80% to 90%, and the maximum payment limit will be increased from $3 million to $6 million providing a total of $109.2 million in support to producers.

In addition, the interest-free limit for cash advances under the Advance Payments Program was temporarily set at $250,000 for the 2025 program year instead of returning to $100,000. This change is expected to provide an additional interest savings of up to $65 million to over 13,000 producers.

On September 5, 2025, the Government of Canada announced that it is temporarily doubling the interest-free portion for canola advances. For the remainder of the 2025 and 2026 program years, the interest-free limit for canola will be $500,000. It is expected that these program changes will provide approximately 1,745 canola producers (in program year 2025) and 6,000 canola producers (in program year 2026) with a combined $36.3 million ($5.1 million in 2025 and $31.2 million in 2026) in additional interest savings.

Domestic biofuels can provide an alternative market opportunity for canola and other agricultural feedstocks, which will help to reduce export related risks. To support this market, also on September 5, 2025, the Government of Canada announced a new Biofuel Production Incentive, led by Natural Resources Canada, with over $370 million for domestic producers to address immediate competitiveness challenges.

The Government also intends to make targeted amendments to the Clean Fuel Regulations to strengthen the resiliency and support the development of Canada's low-carbon fuel sector, while maintaining the regulations' primary focus on lowering carbon emissions.

How will making pasture-related feed costs as an allowable expense for AgriStability support producers?

AgriStability is a program that is available to producers and provides whole-farm protection against significant margin declines. The proposed change will add pasture- related feed costs as an allowable expense, pending agreement from provinces and territories. Adding this expense ensures that the cost of feeding livestock is covered by the program, and therefore producers could be more appropriately compensated during disasters such as drought.

In July 2025, federal, provincial and territorial agriculture ministers agreed to seek the necessary approvals to include feed costs associated with rented pasture as an allowable expense in advance of the 2026 program year. The change is forecast to provide an additional $8 million of federal funds to farmers per year. As AgriStability is an FPT cost-shared program, agreement with provinces and territories on changes to the program guidelines will need to be secured.

How does Budget 2025 support youth employment in the agricultural sector?

Increasing the participation of youth in the Canadian agricultural sector is critical for its continued success and long-term prosperity. In this regard, Budget 2025 announced an additional $307.9 million for the Youth Employment and Skills Strategy (YESS) in 2026–27 and 2027–28 to provide employment, training, and wraparound supports, such as mentorship, transportation, and mental health counselling, to around 20,000 youth.

The YESS invests in young people through its wide range of programs, including Agriculture and Agri-Food Canada's Youth Employment and Skills Program, which helps Canadian youth gain valuable experience and develop skills to support career opportunities in the agricultural sector.

What is the Government doing to ensure that Temporary Foreign Workers remain available to the agriculture and agri-food employers who need them?

Budget 2025 announces that the 2026-2028 Immigration Levels Plan will stabilize permanent resident admission targets at 380,000 per year for three years, down from 395,000 in 2025, while increasing the share of economic migrants from 59% to 64%. The new plan will also reduce the target for new temporary resident admissions from 673,650 in 2025 to 385,000 in 2026, and 370,000 in 2027 and 2028.

The Government recognizes the role that temporary foreign workers play in some sectors of the economy and in some parts of the country. To that end, the 2026–2028 Immigration Levels Plan will consider industries and sectors impacted by tariffs and the unique needs of rural and remote communities.

Programs available to agri-food workers include federal high-skilled programs managed by Express Entry and regional economic immigration programs such as the Provincial Nominee Program, and the Atlantic Immigration Program. In addition, the Rural and Francophone Community Immigration Pilots will help rural and Francophone minority communities attract and retain newcomers with the right skills to help their regions.

The Government remains committed to implementing a new foreign labour program for agriculture and fish processing, tailored to the unique needs of these employers and workers. The Temporary Foreign Worker (TFW) Program's main goal is to assist employers in filling their temporary skills and labour requirements when qualified Canadians and permanent residents are not available.

How is Budget 2025 going to help diversify agricultural exports, including fish and seafood exports?

The Government is investing an additional $75 million over five years (2026-27 to 2030- 31) in the AgriMarketing Program, launching in early 2026.

This investment will permit the program to better assist the sector to diversify its markets by exploring new opportunities around the world, particularly in high-growth regions such as the Indo-Pacific.

How do the changes made to Canada's tax system benefit the agricultural sector?

The Government of Canada recognizes the need to ensure our tax policy remains competitive as the United States continues to introduce aggressive tax measures to draw capital and production. The Government is committed to ensuring Canada remains an attractive destination for investment, and that businesses continue to grow and innovate.

As such, Budget 2025 introduces tax incentives to boost productivity and attract investment. They cover all new capital investments, allowing businesses to write off a larger share of the cost of these investments right away.

These tax incentives aim to encourage investments by improving cash flow, reducing risk and lowering the average cost of capital to encourage investment. This approach empowers businesses along the entire food value chain to make investment decisions that best suit their individual needs.

How does Budget 2025 support food and beverage processors?

Fiscal measures announced in Budget 2025 reflect our strong support for the food and beverage processing industry during this period of uncertainty, such as immediate changes to Canada's tax system to enhance business confidence in Canada and support Canada's competitiveness.

What prompted the Government to propose a regular review of Farm Credit Canada?

Farm Credit Canada (FCC) is Canada's leading agriculture lender. Unlike other federal financial Crown corporations like the Business Development Bank of Canada and Export Development Canada, which already undergo periodic legislative reviews, FCC's governing legislation does not include the requirement for a legislative review. This measure aims to align the requirement for review of FCC with other financial Crown corporations to ensure it continues to deliver value to Canadians while remaining responsive to the changing needs of farmers and businesses in the agriculture and agri-food sectors.

Background — Budget 2025

AgriStability

AgriStability offers affordable, whole farm protection to support producers when challenges are beyond their capacity to manage. It is cost-shared between federal, provincial and territorial (FPT) governments with the federal government contributing 60% and the provincial/territorial government contributing 40% of the costs.

On July 17, 2025, FPT ministers announced increased support for the agricultural sector through AgriStability: increasing the compensation rate from 80% to 90% and doubling the current payment cap to $6 million for the 2025 program year. Increasing the compensation rate will provide additional support to all producers who trigger a payment. Temporarily doubling the current AgriStability payment cap, which has not been updated in over 20 years, will ensure that more producers receive support at a level appropriate to their farm size.

To get money to producers faster, provincial and territorial governments have the option to proactively increase interim payment rates and initiate Targeted Advance Payments. In provinces and territories that implement these options, producers enrolled in AgriStability will be eligible to apply for an interim payment of up to 75% of their estimated final payment for the 2025 program year. Additionally, an administrator will be able to establish a Targeted Advance Payment for the 2025 program year, for example, where analysis shows that market disruptions have resulted in a sufficient loss to trigger AgriStability payments for a particular sector or region.

FPT governments also agreed to extend the AgriStability enrolment deadline from April 30, 2025, to July 31, 2025, for the 2025 program year, which allowed producers more time to make their decisions on whether to participate in the program.

In Budget 2025, the Government committed funding for amendments to the FPT cost-shared AgriStability program to make pasture-related feed costs eligible under the program. This measure will directly benefit livestock producers who have pasture-related feed charges, such as cow/calf, sheep and goat producers.

Advanced Payments Program

The Advance Payments Program (APP) is a federal loan guarantee program that provides Canadian farmers with low-interest cash advances to increase marketing flexibility. The objective of the APP is to provide farmers with temporary cash flow in the form of APP advances so that they can meet their immediate financial obligations until they are able to sell the products they grow. APP cash advances are calculated based on up to 50% of the anticipated market value of the eligible agricultural products that a producer will produce or has in storage, up to $1,000,000 in total. The Government of Canada pays the interest on a portion of each advance.

The Agricultural Marketing Programs Act (AMPA) governs the APP. The standard interest-free limit of $100,000 is stipulated in both the Act and the Regulations.

To ensure that Canadian farmers have access to the cash flow needed to continue producing food and supporting national food security, the Government increased the $100,000 interest-free limit on loans temporarily under the APP to $250,000 in 2022, to $350,000 in 2023 and to $250,000 in 2024, representing a total savings of $175.1 million for producers over the three-year period (2022 to 2024).

Additionally, on March 7, 2025, it was announced that the interest-free limit was being temporarily increased to $250,000 for the 2025 program year.

Furthermore, on September 5, 2025, it was announced that the interest-free limit would be temporarily set at $500,000 for canola advances in the 2025 and 2026 program years.

It is expected that this program change will provide approximately 1,745 canola producers in program year 2025 and 6,000 canola producers in program year 2026 with a combined $36.3 million ($5.1 million in 2025 and $31.2 million in 2026) in additional interest savings for the 2025 and 2026 program years.

Youth Employment and Skills Strategy

The Youth Employment and Skills Strategy (YESS) is the Government of Canada's commitment to help young people, particularly those facing barriers to employment, get the information and gain the skills and experience needed to access quality employment. It is a horizontal initiative, led by ESDC, involving twelve federal departments and agencies, including Agriculture and Agri-Food Canada (AAFC).

Through the YESS, AAFC receives funding for its Youth Employment and Skills Program (YESP). The YESP provides contributions to employers for salaries and benefits to incentivize them to hire youth between 15 and 30 years of age, offering a higher contribution rate for projects employing youth facing barriers to employment. Employers provide the youth with career-related work experience and skill development opportunities in the agricultural sector.

As part of the Government's commitment to support youth employment, and its ongoing efforts to address labour shortages by helping to provide employment, training, and wraparound supports (such as mentorship, transportation, mental health counselling) to around 20,000 youth, Budget 2025 proposed $307.9 million for 2026-27 and 2027-28, for the extension of the YESS. While a detailed breakdown is not yet available, AAFC anticipates that this incremental funding will support the department in continuing to deliver the YESP.

Immigration Levels Plan

The Immigration Levels Plan's objective is to project immigration admissions for the next year with a hard target for 2026, and a notional target for the following two years after that. The year 2024 was the first year that Temporary Resident (TR) targets were introduced. The 2026-to-2028 Levels Plan aims to manage the real and perceived impacts on unemployment, housing, infrastructure and social services, while supporting short-term labour market benefits and long-term impacts on economic growth. It also aims to advance the commitment to sustainable immigration.

TR targets (that is, the Temporary Foreign Worker Program plus international students plus International Mobility Program) are reduced from 673,650 in 2025 to 385,000 in 2026 and 370.000 in 2027 and 2028. Permanent Resident targets remain constant over the entire 2026-to-2028 period at 380,000 down from 395,000 in 2025 while increasing the share of economic migrants from 59% to 64%. There is a recognition that some sectors (for example, healthcare, construction and agrifood) face chronic labour shortages that cannot be fully filled with Canada's existing domestic workforce. To that end, the Levels Plan will consider industries and sectors impacted by tariffs and the unique needs of rural and remote communities. Budget 2025 also proposes to undertake a one-time measure to accelerate the transition of up to 33,000 work permit holders to permanent residency in 2026 and 2027. It is unclear if there is going to be a special consideration for agricultural workers.

Agricultural employers are the highest volume users of the program. Most TFWs in the sector are hired in low-wage occupations such as general farm workers, industrial butchers and fish plant workers. There are different streams under the TFW Program which have different requirements and rules, but primary agriculture broadly uses the Seasonal Agricultural Worker Program (SAWP) stream, while food and beverage processing uses the low-wage stream.

AgriMarketing Program

The Budget re-announced the Prime Minister's September 5, 2025, announcement of a $75-million investment over five years (2026–27 to 2030–31) in the AgriMarketing Program, launching in early 2026.

This investment will permit the program to better assist industry to explore new opportunities and manage risk by diversifying their exports, particularly to high-growth areas such as Africa, the Middle East and the Indo-Pacific. It will also support sectors most affected by trade barriers, like canola (but also sectors such as beef, pork, pulses, horticulture and fish and seafood), and aligns with Canada's Indo-Pacific Strategy, shifting focus beyond traditional trade partners like the U.S. and China.

This investment builds on the strength of the existing AgriMarketing Program, helping participants across the agriculture, agri-food, fish and seafood supply chains address the emerging market disruptions and to diversify their markets.

Under the enhanced program, national industry associations in the agriculture, fish and seafood sectors, seeking to build on Canada's existing strategy to increase and diversify markets, will be eligible for funding. The Government is also exploring the opportunity to include small and medium-sized enterprises as eligible recipients. In the coming weeks, the Government will have targeted discussions with key industry stakeholders on how best to support them during this challenging time.

Tax policy changes

Budget 2025 introduces a Productivity Super-Deduction, a set of enhanced tax incentives covering all new capital investment that allows businesses to write off a larger share of the cost of these investments right away.

Accelerated investment incentive and immediate expensing — This includes allowing businesses to immediately write-off the cost of machinery and equipment used for the manufacturing or processing of goods and reinstating the Accelerated Investment Incentive, an accelerated capital cost allowance which provides an enhanced first-year write-off for most capital assets. Measures also include immediate expensing of clean energy generation and energy conservation equipment, zero-emission vehicles, productivity-enhancing assets, and capital expenditures for scientific research and experimental development.

Immediate expensing for manufacturing and processing buildings — Building on these measures, the Government is also making further strategic investments in tax incentives by proposing to introduce immediate expensing for manufacturing or processing buildings that are acquired on or after Budget Day and that are used for manufacturing or processing before 2030. This measure would be phased out over a four-year period between 2030 and 2033.

As part of the Governments goal to increase competitiveness, these tax incentives aim to encourage investments by improving cash flow, reducing risk and lowering the average cost of capital to encourage investment. The new government is taking action to make Canada's investment environment more competitive than the U.S.

Farm Credit Canada legislative amendments

The Government of Canada announced its intention to amend the Farm Credit Canada Act, to introduce a requirement for regular legislative reviews of FCC's operations and mandate to ensure alignment with the needs of the agriculture and agri-food sector. The amendment aims to ensure that FCC continues to effectively support the evolving needs of Canada's agriculture and agri-food sector.

FCC plays a key role in providing financial services, advice and support to farmers and agribusinesses across the country. As the sector faces new challenges such as climate change, market volatility and shifting demographics, the Government wants to ensure that FCC remains responsive to producers' needs and aligned with government priorities.

The agricultural workforce of the future needs the right mix of skills, youth, new entrants and under-represented groups. A number of programs support the sector, including the Youth Employment and Skills Program and AgriDiversity Program.

International workers will continue to be an important part of the agricultural workforce, particularly given the labour needs of rural and remote communities. For example, the Rural and Francophone Community Immigration Pilots offer pathways to permanent residence to workers who want to work and settle in rural and more remote communities.

We are committed to strengthening the Temporary Foreign Worker Program to improve worker health and safety while helping employers meet their workforce needs. Work on a new foreign labour program for agriculture and fish processing is currently underway.

When pressed

How is the Government reforming the Temporary Foreign Worker Program?

The Government intends to improve the Temporary Foreign Worker Program to reduce fraud, address compliance concerns, and help limit the number of temporary residents. The Government will enforce the consistent application of the cap on Temporary Foreign Workers and apply a stricter more rigorous oversight.

Last year, the Government began refusing to process Labour Market Impact Assessments in metropolitan areas with unemployment rates of 6% or higher. The cap on Temporary Foreign Workers was further reduced to 10% and the maximum duration of work permits for workers in the low-wage stream of the Temporary Foreign Worker Program was reduced from two years to one. Primary agriculture and food processing occupations were exempted from the refusal to process and the cap reduction.

The Government is working to implement a new foreign labour program for agriculture and fish processing, tailored to the unique needs of these employers and workers. Consultations with stakeholders on this commitment are ongoing and analysis of the feedback received is currently underway.

What is the Government doing to ensure that Temporary Foreign Workers remain available to the agriculture and agri-food employers who need them, despite the reduced Temporary Resident admissions?

The Temporary Foreign Worker Program's main goal is to assist employers in filling their temporary skills and labour requirements when qualified Canadians and permanent residents are not available.

Under the 2026-to-2028 Immigration Levels Plan, seasonal workers who enter and leave Canada within the same year (for example, most seasonal primary agriculture and seasonal low-wage occupations in Canada for less than 270 days) are excluded from temporary resident targets.

How is the Government addressing labour shortages?

Vacancy rates in the agriculture and agri-food sector were historically low in 2024. Budget 2025 includes an International Talent Attraction Strategy and Action Plan to position the immigration system to meet strategic labour market needs. The International Talent Attraction Strategy will focus on francophone talent and highly skilled professionals in key sectors of the Canadian economy but does not have direct linkages to the agricultural sector.

The Foreign Credential Recognition Action Fund announced in Budget 2025 will also help those who have the education and skills we need can have their credentials recognized and be able to fully contribute to the Canadian economy.

The Government is working to implement a new foreign labour program for agriculture and fish processing, tailored to the unique needs of these employers and workers. Consultations on this commitment are ongoing and analysis of the feedback received is currently underway.

Provinces and territories are also taking action to address their workforce needs, with various initiatives underway. Some of the $2.5 billion in cost-shared funding made available through the Sustainable Canadian Agricultural Partnership can be used for labour and skills initiatives.

What is the Government doing to facilitate transitions to permanent residency for agricultural workers?

Budget 2025 proposes to undertake a one-time measure to accelerate the transition to permanent residency of up to 33,000 skilled temporary workers who are already contributing to communities and working in Canada in specific in-demand sectors, with a focus on those in rural areas.

In addition, other programs available to agri-food workers include federal high-skilled programs managed by Express Entry and regional economic immigration programs such as the Provincial Nominee Program, which received an increased allocation through the Immigration Levels Plan 2026-2028, the Atlantic Immigration Program, and the Rural and Francophone Community Immigration Pilots will help rural and Francophone minority communities attract and retain newcomers with the right skills to help their regions.

What is the Government doing to protect temporary foreign workers?

While the vast majority of our farmers are known to care for the well-being of their workers, it is essential that every foreign worker finds themselves in a working and living environment that is safe, healthy and dignified. The Government is working in partnership with provinces and territories to ensure the continued improvement of the program to better support and protect temporary foreign workers.

The Government also introduced open work permits for vulnerable workers for temporary foreign workers who are being abused or at risk of being abused in relation to their job in Canada. To better protect workers and address concerns of wage suppression, employers are required to annually review temporary foreign workers' wages to ensure they reflect increases to prevailing wage rates.

All workers in Canada deserve safe, healthy, and dignified working conditions. Mistreatment or abuse of temporary foreign workers — or any worker — is unacceptable and should never be tolerated. Ensuring the health and safety of temporary foreign workers and that they are free from any form of abuse while in Canada is a key priority.

Background — labour in the agriculture and agri-food sector

The Temporary Foreign Worker Program

The Temporary Foreign Worker (TFW) Program aims to assist employers in filling their temporary skills and labour requirements when qualified Canadians and permanent residents are not available. The TFW Program is jointly administered by Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC).

Agricultural employers are the highest volume users of the program. Most TFWs in the sector are hired in low-wage occupations such as general farm workers, industrial butchers and fish plant workers. There are different streams under the TFW Program which have different requirements and rules, but primary agriculture broadly uses the Seasonal Agricultural Worker Program (SAWP) stream, while food and beverage processing uses the low-wage stream.

The TFW program requires employers to obtain a positive or neutral labour market impact assessment (LMIA) which confirms that the employment of a TFW does not have a negative impact on the Canadian labour market. The two key components required for hiring through the TFW Program are

• LMIA issued to employers by ESDC
• eligibility to receive a work permit as determined by IRCC

Reforming the Temporary Foreign Worker Program

In August 2024, the Government noted its intention to reduce fraud, address compliance concerns, and help limit the number of temporary residents by implementing tightening measures on the use of the TFW Program.

As of September, 2024, the Government is no longer processing LMIAs in metropolitan areas with unemployment rates of 6% or higher. The cap on TFWs as part of the total workforce in the Low-wage stream of the Program was reduced to 10% and the maximum duration of work permits will be reduced from two years to one.

Primary agriculture and food processing occupations were exempted from the refusal to process and food processing employers maintained a 20% cap on TFWs but are subject to the reduced employment duration.

Budget 2022 committed ESDC and IRCC, with support from Agriculture and Agri-Food Canada (AAFC) and Global Affairs Canada (GAC), to develop a new Foreign Labour Program for Agriculture and Fish Processing under the TFW Program. The new Stream aims to streamline the various streams of the program, enhance worker protections, and reduce the administrative burden for employers.

Consultations that included engagement sessions and a paper-based process were completed in 2024-2025. ESDC and IRCC are currently analyzing the feedback received with the aim of maintaining ongoing engagement and providing stakeholders with a summary report.

No final determinations on the way forward have been made and a phased implementation plan will be shared with stakeholders in advance of any reforms.

Immigration Levels Plan 2026 to 2028

Under the 2026–2028 Immigration Levels Plan, targets under the TFW Program will be reduced from 82,000 this year to 60,000 in 2026, with a further notional reduction to 50,000 in both 2028 and 2029. Under the Plan, seasonal workers who enter and leave Canada within the same year (that is, nearly all SAWP TFWs) are excluded from Temporary Resident targets.

Permanent Resident targets remain constant over the entire 2026-to-2028 period at 380,000 down from 395,000 in 2025 while increasing the share of economic migrants from 59% to 64%. Most notably for the agricultural sector, the Provincial Nominee Program targets have been increased from 55,000 in 2025 to 91,500 in 2026.

Budget 2025 also proposes to undertake a one-time measure two-year initiative (in 2026 and 2027) to fast track permanent residence for skilled temporary workers who are already contributing to communities and working in Canada in specific in-demand sectors, with a focus on those in rural areas.

Additional Permanent Immigration Pathways

Category-Based Selection under Express Entry — In February 2025, new Express Entry rounds were announced to respond to changing economic and labour market needs within Canada. Agriculture and agri-food occupations remain a priority.

Provincial nominee programs — Under provincial nominee programs, provinces and territories have the ability to create dedicated streams based on their economic needs.

The Rural and Francophone Community Immigration Pilots were launched in January 2025 to help rural and Francophone minority communities attract and retain newcomers with the right skills to help their regions.

The Atlantic Immigration Program was launched as an employer-driven program in January 2022 and aims to attract skilled immigrants to Atlantic Canada to address demographic and economic needs and continue to increase retention in the region.

The Agri-Food Pilot, which let experienced non-seasonal workers in specific agri-food positions immigrate permanently to Canada, ended on May 14, 2025, and cannot be extended beyond this date. Some stakeholders have called for a permanent pathway for the agricultural sector.

Worker protections

The Government has committed to establishing minimum federal housing standards and requirements for TFWs. During summer 2025, ESDC conducted an Accommodation Compliance Review, which included random inspections focused on employer-provided accommodations.

In 2022, regulatory amendments were made to the Immigration Refugee Protection Regulations to ensure TFWs are aware of their rights while in Canada.

In 2019, the Government also introduced open work permits for vulnerable workers, for temporary foreign workers who are being abused or at risk of being abused in relation to their job in Canada.

• The Government recognizes the wine sector's important economic contributions, including providing business opportunities and jobs for grape growers and wine makers across Canada
• To ensure continued support for the sector, on March 1, 2024, the Government announced an extension to the Wine Sector Support Program, investing up to an additional $177 million over three years, ending on March 31, 2027
• The $343 million, five-year program helps federally licensed Canadian wineries adapt to ongoing and emerging challenges impacting their financial resilience and competitiveness by providing grants based on their previous year's wine production
• For 2025–2026, the Wine Sector Support Program will provide up to $55 million to eligible wine producers. The application intake period opened on March 3, 2025, and closed on May 30, 2025. Payments for the 2025–2026 program year are currently underway

When pressed

How is the department supporting the wine sector in its ongoing challenges?

Through the Wine Sector Support Program, delivered by Agriculture and Agri-Food Canada, the Government will provide up to $343 million to eligible Canadian wine producers over five years (2022–2023 to 2026–2027) to help the sector adapt to ongoing challenges over the short-term. The program is set to expire on March 31, 2027.

In addition to the Wine Sector Support Program, grape growers and wine producers continue to have access to the suite of business risk management programs, including AgriStability, AgriInsurance and AgriInvest. These programs can help protect producers against income declines and production losses, as well as navigate significant risks that threaten the viability of their operations.

The Sustainable Canadian Agricultural Partnership offers a range of federal-only programming (that is, AgriScience, AgriAssurance and AgriMarketing) to organizations delivering national projects that support Canada's agricultural sector, including wine. For example, the AgriAssurance Program approved up to $836,220 in funding over five years to the Canadian Grapevine Certification Network, to provide Canadian grape growers and wineries with the material necessary to replant or plant certified virus-free grapevines in their vineyards to ensure the long-term viability of the Canadian grape and wine sectors. The AgriMarketing Program approved up to $1.8 million in funding over three years to Wine Growers Canada, to increase domestic and export sales of Canadian wine through market development and increased recognition, awareness and trust in 100% Canadian grown and made premium wines and protect, maintain and enhance market access for Canadian wine producers.

Agriculture and Agri-Food Canada also has a robust online resource tool, AgPal, that includes a comprehensive list of programs, including cost-shared programs, that may provide financial support to producers in Canada's wine sector.

Will the government modify the Wine Sector Support Program to broaden its support for the wine sector (for example, grape growers)?

Agriculture and Agri-Food Canada is not seeking to expand the Wine Sector Support Program. The program is set to expire on March 31, 2027.

Will the government develop a national wine strategy?

The Government is actively considering the best way to ensure that our domestic sector is well positioned to grow in a way that supports resiliency and aligns with international trade objectives.

Background — support for the wine sector

There are approximately 890 wineries in Canada, and the sector is concentrated in British Columbia, Ontario, Quebec and Nova Scotia.

On January 12, 2018, Australia formally requested consultations with Canada under the World Trade Organization dispute settlement mechanism on a range of Canadian federal and provincial (British Columbia, Ontario, Quebec and Nova Scotia) wine measures.

At the federal level, the dispute implicated the federal excise duty exemption for 100% Canadian wine, introduced in the 2006 Federal Budget to stimulate growth and improve the competitiveness of the Canadian wine industry. The exemption applied to wine (including cider, wine coolers, fruit wines and sake) produced in Canada and composed wholly of agricultural or plant products grown in Canada.

At the provincial level, the dispute covered a number of measures involving markups, taxes and charges applied by provincial liquor boards. Canadian wine producers called for a negotiated resolution to the dispute.

On April 21, 2021, Canada and Australia reached a mutually agreed solution regarding Australia's claims about the disputed Quebec measures on the sale of wine. On April 22, 2021, Australia officially withdrew its claim, and both parties requested the Panel to refrain from making any findings or recommendations with respect to these measures. The wine industry requested the initiation of settlement discussions and supported the mutually agreed solution.

On June 30, 2022, the Government of Canada repealed the federal excise duty exemption on wine, as set out in subsection 135(2) of the Excise Act, 2001.

Canadian wine industry representatives voiced concerns regarding the detrimental impacts that the elimination of the excise tax exemption would have on Canadian wineries, requesting that the Government of Canada provide support programming.

Budget 2021 proposed to provide $101 million over two years, starting in 2022–2023, to Agriculture and Agri-Food Canada, to implement a program to help the wine sector adapt to ongoing and emerging challenges, in line with Canada's trade obligations.

[Redacted] On June 16, 2022, the Government of Canada approved an additional $65 million in grant funding for the Program, for a total of $166.2 million over two years (2022–2023 and 2023–2024).

On March 1, 2024, the Government of Canada announced an extension to the program, investing up to an additional $177 million over the following three years (2024-2025 to 2026-2027).

To date, approximately $213 million in grant funding has been paid out:

• In 2022–2023, 454 eligible recipients received approximately $79.55 million
• In 2023–2024, 448 eligible recipients received approximately $78.55 million
• In 2024–2025, 477 eligible recipients received approximately $55 million

The application period for the 2025–2026 program year ran from March 3, 2025, to May 30, 2025 (13 weeks). [Redacted]

Lastly, some participants in the wine sector have expressed a desire to see the government develop a national wine strategy. In this respect, departments are actively considering the best way to ensure our domestic sector is well positioned to grow in a way that supports resiliency and aligns with international trade objectives.

• Young farmers are the future of Canada's agriculture sector. This Government is committed to seeing farm families succeed and will continue to work with producers to facilitate the intergenerational transfer of farm businesses
• Our government has already made amendments to the Income Tax Act that make it easier for farming families to pass their farm to the next generation
• Budget 2025 confirmed that the capital gains inclusion rate will remain at 50% (including gains related to farming), and that the Lifetime Capital Gains Exemption now applies up to $1.25 million of eligible capital gains

When pressed

How does the Government support intergenerational farm transfer?

Several provisions under the Income Tax Act provide support for intergenerational farm transfers, including:

• The Lifetime Capital Gains exemption, which was increased to $1.25 million in Budget 2024, allows an individual selling a qualified property to use their capital gains to reduce their taxable income
• The Rollover provision, which allows an individual to transfer the title of an asset on a tax-deferred basis
• The Reserve provision, which allows the proceeds from the sale of property to be claimed by the seller over up to five years

What is the Government doing to help address the high start-up costs of farming for the next generation?

The Government offers loan guarantees for farm transfers to beginning farmers under the Canadian Agricultural Loans Act program, and Farm Credit Canada offers free learning programs regarding succession planning and targeted loan products to facilitate farm transitions.

Background — intergenerational farm transfer

The Minister of Agriculture and Agri-Food's 2021 mandate letter contained a commitment to "work with the Minister of Finance and farmers on tax measures to facilitate the intergenerational transfer of farms".

Bill C-208 was introduced in 2021 to help farming families wishing to pass their farm to the next generation. The bill provided tax relief to families by allowing the transfer of family farms to children or grandchildren to be treated similarly to sales to unrelated parties. This change addressed the previous penalty where such transfers were taxed at higher dividend rates rather than the lower capital gains rates.

Several provisions under the Income Tax Act provide support for intergenerational farm transfers:

• Lifetime Capital Gains exemption (increased to $1.25 million of eligible capital gains in Budget 2024), which allows an individual selling a qualified property to use their capital gains to reduce their taxable income
• Rollover provision, which allows an individual to transfer the title of an asset on a tax-deferred basis
• Reserve provision, which allows the proceeds from the sale of property to be claimed by the seller over up to five years

There are also a number of federal non-tax measures available to facilitate farm transfers:

• Loan guarantees for farm transfers and to beginning farmers are available under the Canadian Agricultural Loans Act Program
• Farm Credit Canada offers free learning programs regarding succession planning and targeted loan products to facilitate farm transitions

The Government of Canada proposed increasing the capital gains inclusion rate from 50% to 66.67% on June 24, 2025. Budget 2025 confirmed that the proposed change would not be adopted and that the inclusion rate would remain at 50%.

Through agricultural policy frameworks, the Government has been — and will continue to be — committed to working with provincial and territorial counterparts to ensure the next generation of farmers is equipped for success. This collaboration has resulted in guides, workshops and/or financial support for succession planning which are available to farmers through provincial programming. Examples include:

• the Government of Newfoundland and Labrador's Agriculture Business Program
• the Government of Saskatchewan's Farm Business Development Initiative
• the Government of Ontario's Farm Succession Planning Guide

• The production of low-carbon biofuels represents an important opportunity for farmers to find new customers while contributing to Canada's climate change commitments
• Domestic biofuels can create a valuable, additional market for canola and other agricultural feedstocks, complementing existing exports while helping mitigate the volatility of global markets
• In September 2025, support measures for the biofuels industry, including a new Biofuel Production Incentive with over $370 million over two years for domestic biofuels producers were announced
• Targeted amendments to the Clean Fuel Regulations to strengthen the resiliency and support the development of Canada's low-carbon fuel sector, were also announced
• These measures will help reduce Canada's reliance on imported clean fuels, provide market diversification opportunities and support Canadian farmers and businesses

When pressed

Do the Clean Fuel Regulations increase costs to Canadian farmers?

The regulations represent an opportunity for increased demand for agriculturally-derived biofuels, providing market stability and diversification, and reducing reliance on exports for crops such as canola.

Are the Clean Fuel Regulations another 'carbon tax'?

The regulations are not a tax and are a market-based mechanism designed to spur innovation of clean technologies and expand the use of less polluting fuels throughout the economy.

What is the Government of Canada doing to help Canadian biofuel producers stay competitive?

To support this market, on September 5, 2025, the Government of Canada announced a new time-limited Biofuel Production Incentive, led by Natural Resources Canada, with over $370 million for domestic producers to address immediate competitiveness challenges.

The Government also intends to make targeted amendments to the Clean Fuel Regulations to strengthen the resiliency and support the development of Canada's low-carbon fuel sector, while maintaining the regulations' primary focus on lowering carbon emissions.

What about potentially fraudulent used cooking oil (UCO) being used in the Canadian biofuel market?

The Government of Canada is aware of concerns related to imported UCO from certain jurisdictions.

The Clean Fuel Regulations include oversight and traceability mechanisms to detect feedstock that is fraudulently mislabelled as UCO and provides the authority to undertake enforcement actions should fraud be detected.

What about the sustainability of agriculture-based biofuels?

The Clean Fuel Regulations' Land Use and Biodiversity Criteria aim to ensure that the biofuels that are used to generate credits under the regulations will support our goals to protect biodiversity and the environment.

The Land Use and Biodiversity Criteria recognize the strong sustainability record of Canadian farmers.

Background — liquid biofuels in Canada

Biofuels are liquid fuels derived from non-fossil biomass, mainly ethanol and biomass-based diesel (that is, biodiesel or renewable diesel) that are blended into liquid fuels to displace petroleum-based gasoline and diesel in transportation.

Biofuels are an important source of market diversity for Canadian farmers, particularly for corn and canola. Biofuels create economic opportunities for the Canadian agricultural sector while helping mitigate climate change by reducing transportation-related GHG emissions.

Canola oil is a key feedstock for the production of biomass-based diesel. AAFC recognizes that the canola value chain is facing challenges accessing its largest export markets. A strengthened domestic biofuels industry can help drive demand for Canadian agricultural feedstocks, like canola, helping mitigate export related risks.

[Redacted] With support in place to enhance the competitiveness of Canadian biofuel producers, Canada has the necessary biofuel refinery capacity, from existing and new biofuel production facilities, to greatly increase domestic biofuel production and associated demand for Canadian agricultural products. Canada also has the necessary feedstock processing capacity — including canola crushing capacity — to meet the demand from further buildout of the domestic biofuel sector.

Biofuel trade and market access

[Redacted] Under the previous U.S Blender's Tax Credit, American fuel suppliers sought the most cost-effective biofuel to meet their mandate, which allowed Canadian producers to compete and export their product on a level playing field. However, the U.S. shifted its policy under the 45Z Clean Fuel Production Credit. The new production tax credit, implemented on January 1, 2025, is strategically designed to provide support to the U.S. biofuels industry and its supply chains. [Redacted]

[Redacted]

The Government of Canada recognizes the continuing importance of the United States biofuels market as a source of diversification and income for the Canadian canola sector. As such, AAFC continues to work with government and industry partners to advocate for the fair treatment of Canadian canola as key feedstock in the U.S. biofuels industry.

Supports for Canadian biofuel production

On September 5, 2025, the Government of Canada announced a Biofuels Production Incentive as a time-limited program that will provide over $370 million over two years to support the stability and resiliency of domestic producers of biodiesel and renewable diesel. This incentive will be provided on a per litre basis to Canadian producers of biodiesel and renewable diesel and will be available from January 2026 to December 2027 for up to 300 million litres per facility. Natural Resources Canada will provide more details about the program in the coming weeks.

The Government also intends to make targeted amendments to the Clean Fuel Regulations (CFR), Canada's main driver of biofuel consumption. The CFR require producers and importers of gasoline and diesel used in Canada to reduce the carbon intensity of these fuels by, for example, supplying low-carbon fuels. The Government intends to amend the CFR to strengthen the resiliency and support the development of Canada's low-carbon fuel sector, while maintaining the Regulations' primary focus on lowering carbon emissions. Only targeted amendments that advance this objective will be considered at this time.

Canadian biofuels and used cooking oil

Used cooking oil (UCO) refers to oils and fats of vegetable or animal origin that have been used in the cooking or preservation of food and are no longer suitable for their original purpose. UCO is a choice feedstock for biofuel production globally, and when used to produce biomass-based diesel fuel and Sustainable Aviation Fuel is a direct competitor with canola oil and other agricultural feedstocks. As a waste product, it is affordable and is given a lower carbon intensity score under many regulatory frameworks such as Canada's CFR.

The Canadian canola sector has expressed concerns that foreign UCO entering the Canadian biofuel market, either directly for biofuel production in Canada or used to produce biofuels outside Canada, may be fraudulently labelled. Being sourced from multiple gathering points, with limited ability to perform traceability checks or test the product for compliance, UCO has a high risk of fraud. This has prompted some jurisdictions to initiate investigations into UCO imports. Fraud can occur when virgin oils that would otherwise be ineligible feedstocks (for example, palm oil in the CFR) are fraudulently mislabelled as UCO or where virgin oils are intentionally used to disguise their origin.

Canada has trusted domestic sources of UCO, and other waste oils like tallow, that are collected in Canada and used for biofuel production. Concerns about fraud have centred on imported UCO arriving in Canada through complex international supply chains. To date, no evidence of fraud has been found in Canada under the CFR, however ECCC continues to monitor.

Agriculture and the Clean Fuel Regulations

The biofuels market is driven primarily through domestic and international government initiatives seeking to stimulate biofuel demand in order to reach environmental objectives, notably GHG emission reductions from the transportation sector. In Canada the main demand drivers include the federal Clean Fuel Regulations (CFR) and provincial blending mandates and low-carbon fuel standards.

The CFR were published in Canada Gazette, Part II, on June 21, 2022. Under the CFR, as of July 1, 2023, fossil fuel producers or importers are required to reduce the carbon intensity of liquid fuels they provide.

The CFR uses lifecycle analysis to assess the carbon intensity of various fuels, with a view to incenting those that offer the deepest carbon reduction potential for the cost. The CFR is not a tax and is a market-based mechanism designed to spur innovation of clean technologies and expand the use of less polluting fuels throughout the economy. The actual price impacts will depend on the choices of oil refiners, who have the flexibility to find the most cost-effective and innovative approaches that work best for them, whether investing in cleaner production or more affordable fuels for their customers.

There are three ways to comply with the CFR:

• improvements to conventional fossil fuel production that reduce the lifecycle carbon intensity of fuels
• blending of low-carbon fuels, like those derived from agricultural production
• end-use fuel switching, such as electrification

The CFR is anticipated to create a significant increase in demand for renewable fuels, including agriculturally-derived biofuels, as a method for regulated parties to comply with the standard through compliance option two. In June 2024, Environment and Climate Change Canada (ECCC) published the first CFR Credit Market Data Report. This report demonstrated that biofuels were being used to generate significant CFR credits, with more than half of the total CFR credits in the compliance period coming from the supply of low-carbon-intensity fuels.

The CFR will reduce up to 26.6 million tonnes (Mt) of GHG emissions in 2030. ECCC modelling projects that this will include more biofuel blending, delivering up to 6.7 Mt in annual GHG reductions, beyond existing blend mandates. Despite the focus on liquid fuels, gaseous and solid fuel production and use can still be used to fulfill CFR requirements, or generate CFR credits, within certain parameters. An example would be the production of biogas from anaerobic digestion of agricultural material.

The CFR are anticipated to increase the cost of gasoline and diesel. In 2030, Canadians who drive fossil fuel-powered vehicles may see an increase of between $0.06 to $0.13 per litre for gasoline and $0.07 to $0.16 per litre for diesel (2021 dollars). Fuel prices are the result of several market factors, including distribution constraints, market share competition, refinery capacity and production, and fuel demand. Given the variability in fuel prices paid at the pump, increases in fuel costs due to the CFR may not be noticeable by most consumers, including farmers. The Government of Canada is aware that the CFR impacts will be higher in some provinces than in others as some regions may have fewer credit creation opportunities. Some farm fuel prices will increase more than others, impacting producers differently based on type of farming activity and part of the country.

AAFC is continuing to work with ECCC on aspects of the CFR including future versions of the Fuel Life Cycle Assessment Model.

Background on biofuel production and consumption

Canadian production of grains and oilseeds was 86.9 million metric tons (MMT) in the 2023–2024 crop year. According to AAFC estimates, about 6.7% of that total, or 5.8MMT of grains and oilseeds, went into Canadian biofuels production in 2023–2024.

Approximately 3.7MMT of corn (24% of production) and 0.5MMT of wheat (1.5% of production) were used to produce ethanol, while approximately 0.9MMT (4.7% of production) of canola and 0.7MMT (10% of production) of soybeans were used to produce biodiesel.

In 2024, domestic biofuel production was approximately 1.8 billion litres of ethanol and 1.15 billion litres of biomass-based diesel. Market uncertainty has meant that in 2025 many facilities have reduced capacity or are idling. Canada currently has limited production of renewable diesel, though multiple projects have recently come online. Canada imports more than 60% of its ethanol consumption, most of which is from the U.S.

In 2023, biofuel consumption in Canada increased significantly in part due to the CFR taking effect, increasing by 25% in 2023, on top of the 20% increase in 2022. In 2024, biomass-based diesel consumption rose 9% to almost 1.5 billion litres per year, while ethanol increased 6% to 4.2 billion litres per year.

AAFC supports biofuel-related science, research and adoption of low-carbon biofuels through departmental research, and the Agricultural Clean Technology and AgriScience programs. In addition, AAFC scientists are taking the lead to increase our understanding of how crop choice, climate smart agricultural practices, region, soils and climate in Canada interact to impact GHG emissions and, in turn, contribute to the production of lower emission feedstocks.

AAFC is also delivering $429.4 million over seven years through the Agricultural Clean Technology Program-Adoption and Research and Innovation Streams to support research, development and adoption of clean technologies in the agriculture sector.

• Agriculture and Agri-Food Canada facilities, including regional offices, research and development centres, and the National Headquarters Complex for the Agriculture Portfolio (NHCAP) in Ottawa are able to meet current requirements for workplace presence. The department continues to monitor capacity to ensure compliance with Treasury Board Secretariat (TBS) guidelines, and will work with Public Services and Procurement Canada should any space challenges arise.
• As of September 9, 2024, all Agriculture and Agri-Food Canada employees eligible for hybrid work arrangements are required to work on-site at least three days per week, with executives expected to be on-site a minimum of four days per week. These requirements are in effect regardless of statutory holidays, compressed days, or approved leave.

When pressed

What if public servants are required to go back in the office 4 or 5 days per week?

AAFC facilities, including regional offices, research and development centres (RDCs), and the National Headquarters Complex for the Agriculture Portfolio (NHCAP) in Ottawa would be able to meet new requirements for workplace presence as AAFC has not formally released leased space. The department continues to monitor capacity to ensure compliance with Treasury Board Secretariat (TBS) guidelines, and will work with PSPC should any space challenges arise.

• Agriculture and Agri-Food Canada (AAFC), with Public Services and Procurement Canada (PSPC), is disposing of two unused Summerland Research and Development Centre parcels (11 ha) that have remained unused since 1952 due to distance from the research and development centre and lack of irrigation.
• The Penticton Indian Band were the original stewards of the land; their territory borders the parcels, and AAFC is consulting them throughout the process as they have expressed an expectation that the lands be returned.
• One parcel has been leased to the Penticton Shooting Sports Association since the 1980s; they were notified in 2023 of the divestiture and must vacate by December 31, 2025. Site activity must cease before environmental remediation can proceed.
• The divestiture aligns with Treasury Board's policy and AAFC's real property portfolio strategy. Similar disposals are underway across Canada for lands that no longer support AAFC's mandate.

When pressed

What is AAFC's motivation for divestiture and relationship to the Penticton Shooting Sports Association (PSSA)?

The department's decision to divest is based on long-standing federal real property stewardship obligation and based on the parcels' lack of utility since 1952. Disposal is required under the Treasury Board policy. The PSSA's presence is incidental to the decision, though it must end for divestiture to proceed.

Has AAFC considered the PSSA's multi-decade presence and past use by policing agencies?

While the PSSA's historical use is acknowledged, it does not override AAFC's real property management obligations in compliance with Treasury Board policy or the requirement to vacate the site to advance divestiture.

Informal discussions were held with the RCMP in June 2022 to assess their interest in acquiring the site for continued law-enforcement use, and they confirmed they were not interested in pursuing ownership or assuming responsibility at that time. Should the RCMP — or any eligible federal, provincial, municipal agency or First Nation — have an interest in the property, they would be able to formally express it during the priority-circulation stage of the federal disposal process.

What about the Penticton Indian Band's interest?

Indigenous interests have been consistently recognized and communicated. The Penticton Indian Band (PIB) has demonstrated clear interest in acquiring the property, and AAFC has a responsibility to maintain predictable timelines in support of reconciliation. Delays caused by prolonged negotiations with the PSSA would undermine this commitment. The PIB Chief recently wrote to AAFC's Minister, reaffirming the expectation that these lands be returned to the Band.

Are there any concerns about contamination associated with long-term shooting-range activities?

AAFC expects potential environmental impacts and has conducted a full site assessment as part of due diligence. The PSSA's Lease Agreement requires the tenant to leave the land in clean and safe condition. AAFC will work with the Department of Justice to determine remediation responsibilities and pursue recovery where and if appropriate.

Has AAFC engaged with municipalities or the region?

AAFC should clarify that under federal disposal policy, surplus properties must be offered sequentially: first within the federal government, then to provincial and municipal governments and Indigenous groups. (This circulation process does not include consideration of the strength of claim, asserted or established Aboriginal or treaty rights under section 35. It is an administrative offering process that operates separately from the duty to consult or other rights-based considerations.)

Why is AAFC no longer pursuing negotiated terms?

AAFC made repeated, good-faith attempts to negotiate mutually agreeable conditions for termination. Since September 2025, the PSSA has become unresponsive despite multiple follow-ups, while simultaneously escalating public and political opposition.

Given the need to maintain Canada's divestiture schedule and commitments to the Penticton Indian Band, AAFC must now proceed with unilateral termination per Department of Justice guidance.

Is this decision related to the national firearms or public security policy debates?

AAFC's decision is unrelated to firearms policy or public security and is strictly a federal real property matter involving surplus lands.

Would AAFC consider granting the PSSA a renewed long-term lease?

Under TB policy, any lease renewal would require First Nation consultation, making renewal not feasible in this case as the Penticton Indian Band have expressed their expectations that the land be returned to the Band.

Will there be any additional study of the lease and/or the divestiture?

This parcel and the reason for the divestiture have undergone our internal review process in accordance with Treasury Board requirements and involved our Science and Technology Branch as well as our Real Property Division and it was determined that there is no mandated use for this parcel.

Why now, after all these years?

AAFC's "why now" reflects a broader, overdue effort to manage surplus federal real property in a consistent, policy‑driven way, not a sudden, isolated move targeting this site. In recent years, AAFC has been systematically reviewing its national real property portfolio to ensure that all holdings directly support our core mandate and represent prudent stewardship of public assets, in line with Treasury Board requirements for disposing of surplus properties. Lots 2499 and 2498 at the Summerland Research and Development Centre have never been used for research or program delivery and were formally identified as surplus through that national review, along with a number of other AAFC properties across the country that similarly no longer support departmental objectives. Acting now aligns this site with that broader portfolio clean‑up, reduces long‑term liabilities for the Crown, and allows AAFC to honour its commitments to Indigenous partners, including the clearly expressed interest of the Penticton Indian Band in these lands.

Background — Summerland Research and Development Centre — divestiture of lots 2499 and 2498 and Penticton Shooting Sports Association

History

Agriculture and Agri-Food Canada (AAFC) acquired Lots 2499 and 2498 in 1952 as part of the Summerland Research and Development Centre (SRDC) property. The parcels total approximately 11 hectares and have never been used for AAFC research or program operations due to their distance from the main facility and lack of supporting infrastructure. In 1988, AAFC issued a Lease Agreement for Lot 2499 to the Penticton Shooting Sports Association (PSSA), which has since operated a shooting range on the site. Lot 2498 has remained unused since its acquisition.

Key timelines

• 1952 — AAFC acquires Lots 2499 and 2498
• 1988 — AAFC issues a Lease Agreement to the PSSA for Lot 2499
• 1993 — 1988 lease expires and moves to overhold
• June 2022 — CMB and STB ADM's provide approval to initiate the disposal process
• June 2022 — Informal discussions are held with the RCMP in June 2022 to determine whether they had interest in acquiring the site for continued law‑enforcement use. No interest was expressed at this meeting
• January 2023 — AAFC begins formally advising the PSSA of the upcoming divestiture of lands
• May 3, 2024 — AAFC issues a letter providing the PSSA with 18-months' notice of December 31, 2025, termination date
• July 2025 — PSSA legal counsel requests extending the termination date to September 2026. AAFC agrees in principle. However, all shooting range activities would need to cease by December 31, 2025
• August 2025 — The Department of Justice provides a legal memo recommending two options for termination (negotiate terms or unilaterally terminate)
• September 2025 — PSSA legal counsel acknowledges AAFC's proposed terms but subsequently becomes unresponsive
• Fall 2025 — PSSA supporters, MPs, and media issue correspondence opposing termination
• December 2025 — AAFC prepares to issue unilateral Notice of Termination, effective January 31, 2026, in accordance with BC common law and the month-to-month tenancy structure

Current situation

AAFC with the services of PSPC, has been working on the disposal of two parcels of land located at the Summerland RDC in British Columbia. Despite multiple attempts to negotiate mutually agreed-upon terms for lease termination, the PSSA has demonstrated minimal engagement, extended periods of non-responses, and grown public opposition campaigns aimed at delaying or overturning AAFC's decision.

The Department of Justice's legal opinion outlines two approaches:

• continue negotiating a mutually agreed termination arrangement, or
• unilaterally issue a Notice of Termination consistent with the lease agreement and BC common law.

Given the PSSA's non-responsiveness and the need to maintain the divestiture schedule, AAFC now intends to proceed with the unilateral termination approach (Option 2).

Indigenous interest from the Penticton Indian Band remains active, and AAFC has communicated consistent timelines in support of reconciliation objectives. Continuing delays in terminating the PSSA lease would conflict with commitments made to the Band.

Next steps

AAFC will sign the Notice of Termination letter. Department of Justice counsel will issue the letter to the PSSA and their legal counsel via email and registered mail as required. The notice will be delivered within the one-month period mandated under the lease and BC common law for month-to-month tenancy. Because the December 31, 2025, notice deadline was missed due to internal delays, the effective termination date will be January 31, 2026.

AAFC will proceed with the divestiture process as soon as the site is vacated, including environmental assessments and circulation to eligible federal, provincial, municipal and Indigenous entities.