Agriculture and Agri-Food Canada’s 2025–26 Departmental Plan

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From the Minister

As Canada’s new Minister of Agriculture and Agri-Food, I am pleased to present to Parliament and Canadians our Departmental Plan for 2025–26.

This report is being tabled at a crucial time for Canada, and a moment of great uncertainty for our Canadian farmers and processors. As Prime Minister Carney has noted, we cannot directly control external events, but we can be “masters of our home” and focus on what we can do here in Canada.

And that is what this report is about. Our Departmental Plan outlines our priorities, plans and budgets that will help us advance the sector even further, targeting our efforts to three key drivers of growth: trade, innovation and risk management.

As Minister, I will move quickly to advance initiatives within AAFC and our portfolio organizations that improve competitiveness and innovation, making sure to put an economic lens on all that we do. I will advocate for the sector, and do everything in my power to protect jobs, economic prosperity, and our food security across the country.

Helping us deliver on our priorities over the coming year will be the Sustainable Canadian Agricultural Partnership (Sustainable CAP). Backed by a five-year federal-provincial-territorial investment of $3.5 billion from 2023 to 2028, Sustainable CAP continues to drive targeted investments that are helping Canadian farmers and food processors to increase production, innovate, strengthen their climate resilience and compete on global markets.

Trade will remain a key focus, both domestically and internationally. The world wants more Canadian food, and in 2025–26 we will continue to work hard to help our farmers meet that demand, including through new trade agreements, missions to key markets, our Indo-Pacific Agriculture and Agri-Food Office in Manila, our AgriMarketing and AgriAssurance programs and our trade commissioner network.

As well, we will continue to promote Canadian food in the global marketplace under the Canada Brand, helping differentiate Canadian food from competitors, highlighting Canada’s high-quality, safe, innovative and sustainable food products. We will continue to diversify our markets to help ensure more stabilized trade opportunities in the face of potential market disruptions. And we will work hard to address tariffs and non-tariff barriers that can stifle trade and access to Canadian food for consumers around the world.

Here at home, we will continue to support and defend Canada’s supply-managed sectors and the dairy, poultry and egg producers who are so vital to our food security and our rural communities. In total, we have committed up to $4.8 billion to help producers and processors adapt to market changes resulting from recent trade agreements, including up to $333 million over 10 years to help Canadian dairy processors better compete and adapt to changing markets.

Science and innovation will remain a major focus for us in 2025–26, to drive a competitive and sustainable sector. Our ongoing investments will accelerate the pace of innovation, helping our producers make their businesses even more competitive, productive and sustainable. Our top-notch team of scientists will partner with universities and industry to focus on helping Canadian farmers boost their climate resiliency by mitigating and adapting to climate change – while helping innovators get their ideas out of the lab and into the marketplace so our producers and processors have the tools they need meet the world’s demand for sustainable food. Our scientists will also continue to work side-by-side with farmers in the field to develop practical on-farm solutions through our network of Living Labs and our On-Farm Climate Action Fund.

Climate change is an ever-growing risk for producers, along with a host of other risks farmers face every day — from disease, to pests, to labour shortages, to volatile markets and input costs. That’s why we will continue to work with our provincial and territorial colleagues to make sure our business risk management programs are timely, responsive, and predictable for Canadian farmers. As we work in 2025–26 to deliver on the sector’s priorities, we will consult with producers every step of the way and continue to work with all partners to make sure our farmers and food processors have the workers they need — and the resources they need to safeguard their mental health.

The future is bright for Canada’s world-class agriculture and food sector, but getting there will take a team effort at AAFC and across the portfolio, government and industry.

Our Departmental Plan sets the bar high for the coming year and beyond. But, together, we will help Canada’s agriculture and food sector capture the exciting opportunities that lie ahead.

The Honourable Heath MacDonald, P.C., M.P.
Minister of Agriculture and Agri-Food

Plans to deliver on core responsibilities and internal services

Core responsibilities and internal services

Core responsibility 1: Domestic and International Markets

Description - Domestic and International Markets

Agriculture and Agri-Food Canada (AAFC) provides programs and services, and works in collaboration with the sector to support its competitiveness at home and abroad. AAFC also works to increase opportunities for the sector to export its products by maintaining and expanding market access and advancing agricultural interests internationally.

The Domestic and International Markets core responsibility is focused on advancing the following departmental results:

• The Canadian agriculture and agri-food sector contributes to growing the economy.
• Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions.

Quality of life impacts - Domestic and International Markets

Through the activities outlined in the core responsibility description, Domestic and International Markets contributes to the "Prosperity" domain of the Quality of Life Framework for Canada and, more specifically, the "GDP per capita" indicator.

Indicators, results and targets - Domestic and International Markets

This section presents details on the department's indicators, the actual results from the three most recently reported fiscal years, the targets and target dates approved in 2025–26 for Domestic and International Markets core responsibility. Details are presented by departmental result.

Table 1: The Canadian agriculture and agri-food sector contributes to growing the economy

Table 1 provides a summary of the target and actual results for each indicator associated with the results under the Domestic and International Markets core responsibility.

Table 2: Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions

Table 2 provides a summary of the target and actual results for each indicator associated with the results under the Domestic and International Markets core responsibility.

Additional information on the detailed results and performance information for Agriculture and Agri-Food Canada's program inventory is available on GC InfoBase.

Plans to achieve results - Domestic and International Markets

AAFC will continue working to enhance the sector's competitiveness and maintain or improve market access conditions, ultimately supporting the economic growth of the sector, both domestically and internationally, while placing a greater emphasis on sustainability. Departmental efforts under the Domestic and International Markets core responsibility in 2025–26 will support broader Government of Canada trade diversification goals related to supply management and supply chains, and strengthening Canada's food system.

Under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), two priority areas were identified: Market Development and Trade; and Building Sector Capacity, Growth and Competitiveness. Under these priorities, AAFC will continue to focus efforts to see agriculture and agri-food exports reach a new target of $110 billion and increase sector revenues to $250 billion by 2028. Results in these areas will be delivered through trade policy and market access initiatives; market development services; industry engagement and partnerships through AAFC's Regional Offices and Sector Engagement Tables; the ongoing work of the Agriculture and Food Trade Commissioner Service; and departmental programs such as AgriMarketing and AgriCompetitiveness.

The following section describes the planned results for Domestic and International Markets in 2025–26.

Result 1: The Canadian agriculture and agri-food sector contributes to growing the economy

The global demand for Canadian agriculture and agri-food products remains strong and AAFC plays an important role in supporting the sector to capitalize on opportunities and to respond to challenges such as changing market conditions. Departmental performance is measured, in part, by the contributions of the Canadian agriculture and agri-food sector to the growth of the broader economy, including through agriculture and agri-food exports. Canada's agriculture and agri-food exports, including fish and seafood products, reached $99.1 billion in 2023–24.

In 2025–26, AAFC will continue to work in partnership with other federal departments, the provinces and territories, and industry stakeholders to identify and pursue opportunities at home and abroad, and support the agriculture and agri-food sector in contributing to economic growth through: market development and trade advocacy; foreign direct investment promotion; export diversification efforts; support for Canada's supply-managed sectors; and ongoing regional and national engagement on critical issues. These efforts are an essential support system for industry, enhancing the sector's ability to remain competitive and resilient, and to benefit from predictable trade and take advantage of global opportunities.

Results we plan to achieve

• AAFC will continue to deliver and strengthen a comprehensive range of market development and industry services, including the Canada Brand Program, and the Agriculture and Food Trade Commissioner Service, working in close collaboration with the Canadian Food Inspection Agency, Global Affairs Canada and provincial, territorial and industry partners. In 2025–26, the Department will showcase Canada through market development programming across our priority markets, with an increased focus in the Indo-Pacific region, and will continue to invest in promoting Canadian agri-food products abroad through traditional and online retail and foodservice channels.
• Through its network of Regional Offices, AAFC will continue to provide a wide range of services to agriculture and agri-food businesses. These services include matchmaking, which aims to identify and assess Canadian suppliers and connect them with trade leads and Trade Commissioners abroad, and pathfinding which provides information on the different programs and initiatives available to support the sector.
• Through the AgriMarketing Program, the Department will continue to support a wide range of export promotion, market development and trade activities, while prioritizing applications that advance market diversification to help ensure more stabilized trade opportunities in the face of potential market disruptions. For example, the program will continue to offer a higher cost-share ratio of 70:30 (AAFC: applicant) to increase export sales and trade development through targeted promotional activities in emerging markets, such as in the Indo-Pacific Region.
• The Government of Canada announced additional funding in 2024 to extend the Wine Sector Support Program to 2027. In 2025–26, the program will continue to provide support to Canadian wineries in adapting to ongoing and emerging challenges that impact the financial resilience and competitiveness of the wine sector.
• Through the Food Policy for Canada, the Department will continue to advance a whole-of-government approach to coordinate investments in support of more resilient, sustainable and equitable food systems. This includes implementing a renewed and expanded Local Food Infrastructure Fund (LFIF), with the addition of a new School Food Infrastructure Fund (SFIF). These programs will support community-based not-for-profit organizations working to improve local food security for Canadians. In addition, the Department will continue to advance an approach to develop a Food Loss and Waste Reduction Action Plan by the end of 2025.
• The Sector Engagement Tables (SETs) will continue to enable government-industry collaboration to enhance the growth and competitive position of the sector. In 2025–26, the tables will advance efforts related to identified priority areas, such as labour, regulations, skills, supply chain resiliency, research/technology, and market growth.
• AAFC will continue delivering on the Government priority of supporting supply-managed sectors in adapting to market changes resulting from recent trade agreements, including the Canada-United States-Mexico Agreement. Up to $4.8 billion has been committed and launched for Canada's dairy, poultry, and egg producers and processors. This includes an investment of up to $333 million over the next ten years under the new Dairy Innovation and Investment Fund (DIIF), administered by the Canadian Dairy Commission on behalf of AAFC, to help the Canadian dairy sector increase its competitiveness and adapt to new market realities.
• AAFC will support the dairy sector in its modernization through the Federal-Provincial Agreement on the Sharing of Milk Revenues and Costs, and the Federal-Provincial-Territorial Agreement for the Marketing of Eggs in Canada, with an aim to reflect current policies and practices.
• In 2025–26, the Department will continue working in collaboration with provinces and territories to improve supply chain relationships, including by monitoring the implementation of a voluntary industry-led Grocery Code of Conduct stemming from the key findings of a joint federal, provincial and territorial working group on retail fees.
• The Department will continue to enhance industry-government engagement to improve Canada's regulatory environment in order to become more responsive to the needs of the agriculture and agri-food sector, and assist in the adaptation to new policies and technical requirements. In 2025–26, AAFC's industry-government Agile Regulations Table (ART) will focus on reducing regulatory burden; continued leadership and deployment of novel regulatory approaches, including journey mapping and regulatory experimentation; and the prioritization of agriculture and agri-food regulatory issues.

Result 2: Access to international markets is increased by resolving or mitigating market barriers and advancing trade positions

AAFC works to maintain and enhance access to global markets to support the sustained growth and profitability of Canada's agriculture and agri-food sector. The Department's efforts enable reliable trade, including by maintaining and advancing agricultural trade interests and science-based trade rules, and supporting market diversification. These efforts, in collaboration with federal, provincial, territorial, and international partners, align with the Government of Canada's agenda to increase and diversify trade and investment. Canada's ability to avoid, resolve or mitigate market access barriers and advance positions in trade negotiations are measures of success towards departmental results.

Departmental efforts will focus on supporting the sector to seize new trade opportunities, take advantage of existing ones, and respond to pressures in the international trading environment.

Results we plan to achieve

• Working closely with the Canadian Food Inspection Agency (CFIA) and Global Affairs Canada (GAC), the Department will continue to facilitate regular bilateral and multilateral engagement with key international partners to improve relations, advance Canada's agricultural trade and policy priorities, and support market access, including through ministerial missions, senior official and technical engagement, various working groups and targeted advocacy efforts.
• The new Indo-Pacific Agriculture and Agri-Food Office (IPAAO), will continue working to position Canada as a preferred supplier in the region. Under Canada's Indo-Pacific Strategy, the IPAAO contributes to a whole-of-government approach to further strengthening Canada's economic partnerships in the region, which currently accounts for over one-third of the world's economic activity and represents significant opportunities for the agriculture and agri-food sector. In 2025–26, the IPAAO will continue to enhance market access, advance technical co-operation, identify new business opportunities for Canadian exporters to diversity their exports, implement the Indo-Pacific market development strategy, and support investment attraction efforts into Canada. The Department continues to contribute to advancing Government of Canada trade negotiations by promoting the rigour of Canadian systems, its best practices, as well as its policies on food safety and sustainability.
• In 2024, the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) negotiations concluded and two memoranda of understanding were signed. With a population of 279 million and GDP of close to $1.9 trillion in 2023, the Indonesian market holds significant potential for Canadian traders, investors and service providers. The CEPA will also help to further two-way trade, advance prosperity and support, and create well-paying middle-class jobs for Canadians.
• In February 2025, Canada and Ecuador officially announced the successful conclusion of the negotiations of the Canada-Ecuador Free Trade Agreement (CEFTA). This agreement delivers strong results for Canada’s agriculture and agri-food sector by advancing key interests and creating new opportunities for Canadian producers and food processors to diversify their trade relationships.
• Negotiations are ongoing for a Free Trade Agreement (FTA) with the Association of Southeast Asian Nations (ASEAN), while exploratory bilateral FTA discussions were launched with the Philippines. Additionally, AAFC continues to collaborate with CFIA and GAC on the implementation of the Canada-United States-Mexico Agreement (CUSMA). As the upcoming CUSMA review approaches, AAFC’s priority will be to preserve preferential market access and the other benefits of the Agreement. Finally, AAFC will continue to work with CFIA and GAC on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), including potential accessions to the Agreement.
• The Department will continue to advance Canadian agriculture and agri-food interests through the implementation of relevant World Trade Organization (WTO) agreements and in the ongoing WTO agriculture negotiations, and in other multilateral fora, such as the United Nations Food and Agriculture Organization, the G7, the G20 and the Organisation for Economic Co-operation and Development. AAFC will defend Canadian interests in any trade disputes and continue its efforts at the WTO to preserve and strengthen key multilateral rules on tariff market access, domestic support/subsidies, export competition, and export restrictions. AAFC will continue to engage bilaterally and multilaterally with trading partners on sanitary and phytosanitary measures, as well as technical regulations and standards, to address trade aspects of issues such as antimicrobial resistance or new plant breeding techniques, genetically modified crops, and regulations pertaining to pesticides. AAFC will also work through these international organizations to promote sustainable agriculture and food security, and advocate for rules-based trade practices and environmental protection.
• Along with other federal Departments, AAFC will continue to engage with counterparts at the International Standard-Setting Bodies (Codex, World Organisation for Animal Health, and International Plant Protection Convention) to support the development and adoption of standards, guidance, and recommendations that are based on scientific evidence and risk analysis. This includes work on animal health and welfare, antimicrobial resistance, as well as initiatives to promote and circulate guidance to help ensure a rules-based global marketplace that benefits Canadian exporters.

Key risks - Domestic and International Markets

Market disruption and uncertainty

The success of the Canadian agriculture and agri-food sector depends heavily on its ability to export to other countries. While exports have continued to grow, the sector is exposed to an increasingly complex geopolitical and trade environment, placing unprecedented pressure on the Department to respond, and enable, the sector to overcome these challenges. This includes protectionist policies, trade disputes under existing agreements, the proliferation of non-science-based trade barriers, high levels of trade-distorting subsidies, supply chain disruptions, labour disruptions affecting production and transport, market volatility, climate change and extreme weather events, and the risk of animal and plant diseases.

AAFC will continue to support the sector in facing the risks created by this new reality as it pursues opportunities. This includes through strategic efforts to diversify Canada's exports and markets; engagement with international bodies and with other multilateral, plurilateral, and bilateral partners to address market access irritants; advancement of Canada's trade policy positions and priorities; advocacy for science-based regulations and transparent trade rules; and development and maintenance of strong assurance systems.

Labour and skills shortages

Labour and skills shortages can pose challenges to agricultural supply chains that can lead to limited economic growth, affect rural vitality, and diminish production capacity. Systemic realities, such as rural location, aging demographics, and the seasonality of many jobs, will continue to impact labour availability. As the global pandemic has receded, the agricultural labour landscape has improved, with job vacancy rates for the sector demonstrating a downward trend and wages increasing. Attracting Canadians to work in agriculture and agri-food, while recognizing that temporary and permanent immigrants will continue to be an important part of the workforce, will be crucial for the sector's workforce stability.

AAFC is continuing work towards the development of a National Agricultural Labour Strategy, in partnership with federal, provincial, and industry partners. Industry is taking a leading role to address labour issues, through the development of a National Workforce Strategic Plan, which is being led by the Canadian Agricultural Human Resource Council, in partnership with Food and Beverage Canada, and the Canadian Federation of Agriculture. AAFC continues to engage industry on this initiative to help address systemic workforce challenges. In addition, the Department is leveraging the Skills Development Table of the Sector Engagement Tables to gain a better understanding of the sector's skills requirements. This includes identifying opportunities for youth, new entrants, under-represented groups, and Indigenous communities in developing a more diverse workforce in the agriculture and agri-food sector.

Cyber threats

The growth of technologies, from precision agriculture and drone imaging to artificial intelligence (AI) and blockchain has dramatically increased the availability and efficiency in providing data in a timely and authoritative manner, helping Canadian farmers and processors tell their story and demonstrate their comparative and competitive advantage. In addition, the rapid evolution of market access requirements has increased the demand and diversity of data needed and continues to highlight data as a valuable asset for all stakeholders along the supply chain. However, as Canada's agriculture and agri-food sector becomes more digitized and connected across supply chains, the risk of cyber threats has increased. Cyber-crimes can have significant repercussions, potentially impacting the sector's production and transportation networks, creating service disruptions, affecting food security, hurting business profits, and negatively impacting consumer and partner trust. The ability to protect data, while simultaneously sharing data across the supply chain, will increasingly be necessary for all stakeholders. AAFC will mitigate this risk by continuing efforts to raise awareness in the sector, and among other stakeholders, of actions that can be taken to help address and mitigate cyber risks in Canadian agriculture and agri-food. This includes facilitating engagement with federal, provincial, and territorial governments, academia, and sector organizations, developing practical resources to outline best practices as they relate to cyber security preparedness, and developing an online cyber security toolkit for small and medium-sized farming enterprises.

Planned resources to achieve results - Domestic and International Markets

Table 3: Planned resources to achieve results for the Domestic and International Markets core responsibility

Table 3 provides a summary of the planned spending and full-time equivalents required to achieve results.

Related government priorities - Domestic and International Markets

Gender-based analysis plus

Advancing diversity, equity, and inclusion in the agriculture and agri-food sector remains a priority for the Department. AAFC will continue to work with provincial and territorial jurisdictions to better support the participation of Indigenous communities and other underrepresented and marginalized groups in the sector, including women, youth, racialized groups, persons with disabilities, 2SLGBTQI+ communities, and official language minority communities. Some highlights of the Department's plans in these areas are provided below.

• AAFC's "Framework for Supporting Underrepresented and Marginalized Groups in the Agriculture and Agri-Food Sector", and associated Action Plan, will continue to guide the Department's efforts to address barriers, create opportunities, and advance diversity, equity, inclusion, and accessibility in the sector.
• Across the Department's suite of programming, and as part of the Sustainable CAP, AAFC will enhance GBA Plus data collection in support of understanding and removing barriers to participation, further enhancing equitable access across all programs. Collecting additional information will allow for informed decision-making in program planning and design that takes diversity factors into consideration. In addition, AAFC will access data from Statistics Canada's Business Linkable File Environment to prepare demographic profiles and measure progress towards increasing participation of women, youth, and Indigenous Peoples.
• The AgriDiversity Program will continue to encourage greater participation of Indigenous communities and other underrepresented and marginalized groups by providing funding to eligible recipients to help develop leadership skills, build entrepreneurial capacity and business skills, and facilitate the sharing of best practices and knowledge.
• The AgriCompetitiveness Program will continue to support sector-led activities such as producer-oriented seminars and conferences that identify industry best practices and build the capacity of the sector to allow agri-businesses to transition, adapt, and improve their profitability by nurturing entrepreneurial capacity and cultivating industry leadership. The program has increased the government's share in the cost-share ratio to reduce financial barriers for program participants.
• AAFC's AgriMarketing Program will continue to promote inclusive trade by expanding eligible recipients to include national industry associations with export promotion and market development and trade project activities benefiting underrepresented or marginalized groups, such as Indigenous-led and women-owned groups.
• The renewal and expansion of AAFC's Local Food Infrastructure Fund (LFIF) includes a focus on improving the availability and accessibility of local, nutritious and culturally appropriate food among equity-deserving groups, prioritizing Indigenous and Black communities. The new School Food Infrastructure Fund (SFIF) component will help not-for-profit organizations invest in infrastructure and equipment to support school food programming.
• The Sector Engagement Tables (SETs) will continue working to achieve gender parity in their membership and to increase membership and representation from underrepresented, Indigenous, and marginalized groups to ensure significant (30%) representation. For example, the Skills Development Table launched the Youth, New Entrants and Underrepresented Groups Working Group in October 2024. The mandate of the working group is to support entry to, and renewal of, Canada's agriculture, agri-food and food and beverage processing sectors.
• The Poultry and Egg On-Farm Investment Program aims to help supply-managed poultry and egg producers adapt to market changes resulting from the implementation of recent international trade agreements, namely the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA). In order to assist young Canadian farmers to succeed, the program offers a cost-share ratio of up to 85% for farmers who were 35 years of age or under on January 1, 2021.
• The third cohort of the Canadian Agricultural Youth Council (CAYC) was selected in Fall 2024 and will maintain ongoing engagement with the Department on various consultations. The CAYC will also continue to enhance its relationships with other Government of Canada youth councils and international peers to seek ways to increase youth participation in agriculture and agri-food.
• AAFC will continue to connect Indigenous communities with agricultural programs and services through the Indigenous Pathfinder Service.
• The Department will continue to support underrepresented and marginalized youth by delivering the Youth Employment and Skills Program to help youth facing barriers gain career-related work experiences in the agriculture sector.

Further information on the underrepresented and marginalized groups served by AAFC's programs and initiatives can be found in the GBA Plus supplementary information table.

United Nations 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals

Various initiatives under the Domestic and International Markets core responsibility support Canada's efforts to address the United Nations 2030 Agenda and the Sustainable Development Goals (SDGs). For example, Canada's agricultural trade policy encourages open trade and science-based approaches to governing food systems. This helps farmers around the world to reach customers, earn better incomes, and escape poverty and hunger, ultimately contributing to SDG 2: Zero Hunger; SDG 8: Decent Work and Economic Growth; and SDG 12: Responsible Consumption and Production.

More information on AAFC's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in our Departmental Sustainable Development Strategy.

Innovation

Through its policies, programs and partnerships, AAFC will continue to find ways to innovate, leverage new approaches, and enhance evidence-based decision-making towards departmental results in support of the agriculture sector. AAFC supports innovation by offering challenges to the sector as a funding delivery model. Challenges, such as the Food Waste Reduction Challenge and the Agricultural Methane Reduction Challenge, have aimed to solve big problems, accelerate progress towards ambitious goals, and have a history of producing positive results.

Program inventory - Domestic and International Markets

The Domestic and International Markets core responsibility is supported by the following programs:

• Trade and Market Expansion
• Sector Engagement and Development
• Farm Products Council of Canada
• Supply Management Initiative
• Canadian Pari-Mutuel Agency
• Food Policy Initiatives
• Water Infrastructure Divestiture
• Federal, Provincial, and Territorial Cost-Shared Markets and Trade

Additional information to the program inventory for the Domestic and International Markets core responsibility is available on the Results page on GC InfoBase.

Summary of changes to reporting framework since last year - Domestic and International Markets

• Update to target and date to achieve target for the "Value of agriculture and agri-food exports ($billions)" Departmental Result Indicator.
• Update to date to achieve target for the "Percentage change in the economic performance of the agriculture and agri-food sector" Departmental Result Indicator.
• Update to date to achieve target for the "Percentage change in agri-food products sold" Departmental Result Indicator.

Core responsibility 2: Science and Innovation

Description - Science and Innovation

Agriculture and Agri-Food Canada (AAFC) conducts scientific research, develops new knowledge and new technologies, and transfers the results to the agriculture and agri-food sector. AAFC also works with industry and other partners to strengthen the sector's capacity to develop and adopt innovative practices, products, and processes.

The Science and Innovation core responsibility is focused on advancing the following departmental results:

• The Canadian agriculture and agri-food sector knowledge base is increased through AAFC-supported scientific and innovative research.
• The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices.

Quality of life impacts - Science and Innovation

Through the activities outlined in the core responsibility description, Science and Innovation contributes to the "Prosperity" domain of the Quality of Life Framework for Canada and, more specifically, the "Productivity" indicator. It also contributes to the "Environment" domain, and the indicators on "Air quality" and "Greenhouse gas emissions" through these efforts.

Indicators, results and targets - Science and Innovation

This section presents details on the Department's indicators, the actual results from the three most recently reported fiscal years, the targets, and target dates approved in 2025–26 for the Science and Innovation core responsibility. Details are presented by departmental result.

Table 4: The Canadian agriculture and agri-food sector knowledge base is increased through AAFC supported scientific and innovative research

Table 4 provides a summary of the target and actual results for each indicator associated with the results under the Science and Innovation core responsibility.

Table 5: The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes or practices

Table 5 provides a summary of the target and actual results for each indicator associated with the results under the Science and Innovation core responsibility.

Additional information on the detailed results and performance information for the Agriculture and Agri-Food Canada's program inventory is available on GC InfoBase.

Plans to achieve results - Science and Innovation

As part of the Science and Innovation core responsibility, AAFC will continue to fund research and development activities to accelerate the pace of innovation, further enhancing the economic growth, productivity, competitiveness, adaptability, and sustainability of the Canadian agri-food and agri-based products sector. AAFC's Strategic Plan for Science will continue to guide the Department's science and research activities, focusing in 2025–26 on mitigating and adapting to climate change, increasing the resiliency of agro-ecosystems, advancing the circular economy by developing value-added opportunities, and accelerating the digital transformation of agriculture and agri-food.

Sustainability is a key driver of innovation in the face of mounting environmental challenges. Results will continue to be delivered through departmental programming under the Sustainable CAP policy framework, such as the Foundational Science and Research initiative, and the AgriScience and AgriInnovate programs. Departmental actions under the Science and Innovation core responsibility also align with government-wide priorities that prioritize clean growth and climate resiliency.

The following section describes the planned results for the Science and Innovation core responsibility in 2025–26.

Result 1: The Canadian agriculture and agri-food sector knowledge base is increased through AAFC supported scientific and innovative research

Scientific and innovative research is necessary to maintain the long-term sustainability and competitiveness of Canada's agriculture and agri-food sector. The Department is home to a network of research centres across Canada with world-class scientific expertise, whose efforts serve to strengthen the sector's productivity and competitive advantage, mitigate risks, and tackle challenges related to environmental performance.

Departmental results related to knowledge creation from scientific and innovative research are assessed against indicators that measure the level of collaboration involved in departmental scientific publications. AAFC will continue to create opportunities for the sector through agricultural research and innovation by working with industry, academia, other partners, and smart farms where new technologies are tested and demonstrated.

Results we plan to achieve

• Under the Foundational Science and Research Program, AAFC will continue working to increase the sector's knowledge base through scientific research, including improving cropping systems for Northern and Indigenous communities, mitigating disease with a One Health approach, developing waste reduction solutions across agriculture and agri-food value chains, and enhancing data acquisition, availability, and utilization for science-based decision-making.
• Research priorities identified for 2025–26 support a transdisciplinary approach that integrates knowledge across academic disciplines and non-academic stakeholders to achieve the outcomes identified in the Strategic Plan for Science while aligning with cross-cutting Indigenous priorities that contribute to the revitalization and understanding of Indigenous Food Systems.
• Through the AgriScience Program, the Department will continue mobilizing partnerships between industry, government, and academia by funding projects that support pre-commercial science activities and research that benefits the agriculture and agri-food sector and Canadians. Continuing in 2025–26, the three priority areas of the program are: climate change and environment; economic growth and development; and sector resilience and societal challenges.
• The Department will continue to work in partnership with the Social Sciences and Humanities Research Council (SSHRC) and the Natural Sciences and Engineering Research Council on a sustainable agriculture research initiative to advance efforts contributing to a net-zero agriculture and agri-food economy. Additionally, AAFC will continue to collaborate with SSHRC to establish a research network on sustainable agriculture in a net-zero economy to strengthen collective capabilities across academia, communities, as well as private, public, and non-profit sectors.
• AAFC will continue to focus on increasing the capacity of its science programming to analyze the results of past research and link data with results from provincial, territorial, and industry-led initiatives, to inform and continuously improve program design.

Result 2: The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes, or practices

The Department's focus on collaborative science and technology enhances the collective impact of government, industry, and academic expertise by reducing duplication of work and leveraging research capacities. Research partnerships make government investments more valuable and ensure that the research is relevant to Canadian industry. AAFC also builds on collaborative research by supporting investments in the commercialization and the adoption of innovations, which encourages the transformation of research-generated ideas into new business practices for the sector.

Departmental results in this area assess the effectiveness of transforming ideas or adopting new innovations, which influences other metrics such as sector productivity, revenue, and agri-environmental health. In support of these results, AAFC will continue to assist the sector in bridging the gap between research and commercialization and in mitigating the risks inherent in applying new technologies to commercial-level production.

Results we plan to achieve

• Through the AgriInnovate program, the Department will continue to address the gap between research and the application of innovative technologies and practices. The program supports the demonstration, adoption, or commercialization of new technologies or processes in the agriculture and agri-food sector.
• Through the Agricultural Climate Solutions (ACS) Program, AAFC has implemented a multi-stream program to develop and implement farming practices to tackle climate change. By developing, evaluating, adopting, and surveying agricultural technologies and practices, ACS is focused on sequestering carbon, reducing greenhouse gas emissions, and delivering environmental benefits on soil health, water quality and biodiversity.
  • In 2025–26, the work of the nation-wide network of 14 living labs under the ACS Living Labs stream, a collaborative approach with producers, partners, and scientists will continue to co-design and test beneficial management practices on producers' land in support of this program's objectives.
  • The On-Farm Climate Action Fund (OFCAF) stream introduced a new process in 2024 that allows organizations to submit a proposal for potential coverage of other eligible Beneficial Management Practices (BMPs) under OFCAF. Now extended until 2028, it will continue to help producers to adopt BMPs such as nitrogen management, cover cropping, and rotational grazing.
• In addition, efforts towards a low-carbon economy and promoting sustainable growth in Canada's agriculture and agri-food sector will continue through the Agricultural Clean Technology Program (ACT).
• Through the Agricultural Methane Reduction Challenge, AAFC is supporting 13 challenge participants through funding, capacity-building, and tailored mentorship to advance innovative solutions that contribute to the reduction of methane emissions produced by cattle. In 2025–26, challenge participants will advance to the next stages of prototyping and testing.
• AAFC will continue to work on developing a Sustainable Agriculture Strategy focusing on five priority areas: soil health; climate adaptation and resilience; water; climate change mitigation; and biodiversity. Building from existing producer efforts, the strategy aims to guide increased environmental action in the sector over the long-term, while supporting the competitiveness of the Canadian agricultural industry.
• The Department will continue working collaboratively with the sector to reduce fertilizer emissions while protecting the livelihoods of Canadian farming families. Building on the work of the Fertilizer Emissions Reduction Working Group, efforts in 2025–26 will focus on equipping farmers with the tools and support they need to make meaningful progress towards voluntary approaches to meet the target. This includes continuing to provide financial support to producers through AAFC programming (OFCAF, ACT) and enhancing research and knowledge exchange through Canada's participation in the international Efficient Fertilizer Consortium and the Canadian Nitrous Oxide Network (CANN2ONet), funded by the Natural Sciences and Engineering Research Council of Canada.
• The Resilient Agricultural Landscape Program under the Sustainable CAP, will continue in its third year to support the acceleration and adoption of on-farm land use and management practices that maximize ecological goods and services, such as maintaining and restoring grasslands and wetlands, and enhancing riparian and on-farm wildlife areas. Designed and delivered by the provinces and territories, the program helps producers conserve and enhance the resiliency of agricultural landscapes while reflecting local conditions and regional needs.
• The Department will continue to implement a plan to address challenges and opportunities in Canada's current approach to pest management and will continue to create opportunities for the sector to increase its awareness and use of alternative pest management approaches through the Pest Management Centre's Pesticide Risk Reduction Program and the Alternative Pest Management Solutions Initiative.
• AAFC will continue working collaboratively to enable and support the agri-food sector's contributions to Canada's biodiversity commitments under the Kunming-Montreal Global Biodiversity Framework, in line with Canada's 2030 Nature Strategy.

Key risks - Science and Innovation

Climate impacts

The Canadian agriculture and agri-food sector faces a variety of environmental risks every year. Unpredictable weather patterns and extreme weather events significantly affect Canadian agriculture with varying effects across regions. Climate change can affect growing seasons, create more favourable conditions for pest survival and migration, and increase the incidence of diseases. In the years ahead, Canada's agriculture and agri-food sector can expect ongoing challenges posed by more extreme weather, higher than average temperatures, and changes in precipitation patterns that increase the risk of events such as floods and droughts.

The Department will continue to mitigate these risks through the design and support of scientific research and by providing programming, jointly with the provinces and territories, which contributes to the agri-environmental resilience of the sector. Through the AAFC Strategic Plan for Science, the Department will work towards closing the gaps in research and enhancing the responsiveness of science to the changing environment.

Safeguarding scientific research and intellectual assets

In the rapidly evolving landscape of global research and innovation, AAFC recognizes the paramount importance of safeguarding the integrity and security of scientific endeavours. Open and collaborative research environments are indispensable drivers of innovation and progress. However, intellectual property and research must remain safeguarded from potential misuse and unauthorized applications.

To mitigate these risks, in addition to maintaining its robust cyber security and intellectual property, the Department will continue work with Shared Services Canada on a project to address long-standing science data storage challenges. The overall objective of the project is to evolve the way AAFC scientists treat, manage, and use the data they generate, and to avoid large expenses related to migration of data of existing storage that is reaching the end of its usable life and would be cost prohibitive to replace. Significant data space has been purchased by the Department to facilitate the management and storage of vast amounts of data generated by the AAFC scientific community. This space has enabled the data migration project to be successful to ensure modernized and transparent data collaboration. Furthermore, a portion of this storage space has been configured to provide AAFC researchers with the added benefit of sharing data with external collaborators. By taking a proactive approach, AAFC is minimizing the risk of data loss and future costs to the Department.

AAFC is also an active participant in the Government of Canada's Task Force on Science and Security (TFSNS), which aims to protect national research from foreign interference and security threats while preserving academic openness.

Planned resources to achieve results - Science and Innovation

Table 6: Planned resources to achieve results for the Science and Innovation core responsibility

Table 6 provides a summary of the planned spending and full-time equivalents required to achieve results.

Related government priorities - Science and Innovation

Gender-based analysis plus

AAFC remains committed to ongoing collaboration with stakeholders to advance diversity, equity and inclusion within the agriculture and agri-food sector, and to better support the participation of Indigenous Peoples and other underrepresented and marginalized groups, including as part of efforts under the Science and Innovation core responsibility. Some examples of key initiatives are highlighted below:

• As part of its science capacity renewal, AAFC will continue to focus on addressing gaps among under-represented and marginalized groups in its workforce – especially among women, Indigenous Peoples and persons with disabilities – and promoting national, diverse, cross-sectoral, and inclusive transdisciplinary collaboration.
• The Department's Women in STEM (science, technology, engineering, and mathematics) Network will continue to promote an environment in science and science-related activities at AAFC that is inclusive and welcoming for women. The Network strives to help make AAFC science professions desirable for women, including by hosting various events and learning opportunities, such as a symposium to highlight women's research in 2025–26.
• The Indigenous Science Liaison Office (ISLO) will continue to liaise with AAFC research staff and Indigenous partners to support engagement and research project co-development. For example, the office will manage the renewed Indigenous Agricultural Science Partnerships (IASP) funding mechanism to support and facilitate relationship building and science and innovation project co-development with Indigenous partners. In 2025-26 ISLO will continue to review agricultural science proposals for programs under the Sustainable CAP framework (for example, AgriScience) and the Annual Call for Proposals to provide a culturally appropriate assessment using Indigenous-focused criteria. It will also provide an Indigenous science lens to internal policies, programs and initiatives. Efforts in 2025–26 will focus on training to strengthen public servants' understanding of Indigenous histories and current priorities, and on supporting Indigenous-focused talent recruitment, staffing, and retention among technical positions through the EG Recruitment Initiative.
• AAFC will continue to host the 13-member interdepartmental Indigenous Science, Technology, Engineering and Math (I-STEM) Cluster to strengthen relationships, enhance intercultural competencies in the federal public service, and nurture Indigenous STEM talent. In 2025–26, the Cluster will develop learning products and tools tailored to the natural sciences in areas such as Indigenous data sovereignty and research ethics and will advise on federal policy and program design. These efforts will advance ongoing objectives related to the equitable bridging of Indigenous and western knowledge systems, enhancing regional coordination, and encouraging meaningful international linkages.
• AAFC will also develop and implement an approach, starting in 2025, to better educate, raise awareness, and support the research community on the application of GBA Plus considerations within their work and the Call for Proposals process. Efforts will include developing informational materials and leveraging additional tools and resources to better measure impacts by gender and diversity. The increased awareness and understanding of GBA Plus impacts on research will result in improved quality of data and its utilization to help to inform project design and impact assessments.

Further information on the underrepresented and marginalized groups served by AAFC's programs and initiatives can be found in the GBA Plus supplementary information table.

United Nations 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals

Activities under the Science and Innovation core responsibility support Canada's efforts to address the United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). For example, the Department continues to modernize its delivery of science and technology initiatives to provide leadership in the growth and development of a competitive, innovative, and sustainable Canadian agriculture and agri-food sector.

The Department also embraces the renewal and greening of its research facilities in support of Canada's objective to be a global leader in government operations that are net-zero, resilient, and green. Efforts in these areas contribute toward: SDG 2 Zero Hunger; SDG 6: Clean Water and Sanitation; SDG 7: Affordable and Clean Energy; SDG 8: Decent Work and Economic Growth; SDG 9: Industry, Innovation and Infrastructure; SDG 12: Responsible Consumption and Production; SDG 13: Climate Action; and SDG 15: Life on Land.

More information on AAFC's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in our Departmental Sustainable Development Strategy.

Innovation

Within the ACT Research and Innovation Stream, AAFC is using innovative approaches to support the development of impactful clean technologies in the agriculture sector by expanding its reach to cutting-edge technology start-up firms. AAFC is delivering a pilot accelerator initiative that funds not-for-profit business accelerators, incubators, and networks to support business start-ups and other organizations in clean technology development, product demonstration, and early adoption. This responds to needs identified within the ACT Research and Innovation program for pre-market research for early-stage start-ups and late-stage market demonstration to accelerate adoption.

Program inventory - Science and Innovation

The Science and Innovation core responsibility is supported by the following programs:

• Foundational Science and Research
• AgriScience
• AgriInnovate
• Environment and Climate Change Programs
• Canadian Agricultural Strategic Priorities Program
• Federal, Provincial, and Territorial Cost-Shared Science, Research, Innovation, and Environment

Additional information to the program inventory for Science and Innovation core responsibility is available on the Results page on GC InfoBase.

Summary of changes to reporting framework since last year - Science and Innovation

• Addition of Departmental Result Indicator "Percentage reduction of net GHG emission in agriculture sector".
• Removal of Departmental Result Indicator "Percentage of processors developing and/or introducing innovations".
• Update to date to achieve target for the "Percentage of Agriculture and Agri-Food Canada scientific publications produced through collaboration" Departmental Result Indicator.
• Update to date to achieve target for the "Number of new technologies, products, practices, processes or systems that are available for transfer to the sector" Departmental Result Indicator.
• Update to date to achieve target for the "Percentage of revenues generated on farms adopting innovative practices" Departmental Result Indicator.
• Update to date to achieve target for the "Percentage change in the productivity of the agri-food sector" Departmental Result Indicator.

Core responsibility 3: Sector Risk

Description - Sector Risk

Agriculture and Agri-Food Canada (AAFC) provides tools to mitigate the financial impact of risks beyond producers' control that threaten the viability of their operations. AAFC works with the sector to ensure that systems, standards and tools are developed to support its ability to prevent and control risks and address market demands.

The Sector Risk core responsibility is focused on advancing the following departmental results:

• The agricultural sector is financially resilient.
• The agriculture and agri-food sector is equipped with assurance systems and supporting tools.

Quality of life impacts - Sector Risk

Through the activities outlined in the core responsibility description, Sector Risk contributes to the "Prosperity" domain of the Quality of Life Framework for Canada and, more specifically, the "Protection from income shocks" indicator.

Indicators, results and targets - Sector Risk

This section presents details on the department's indicators, the actual results from the three most recently reported fiscal years, the targets and target dates approved in 2025–26 for the Sector Risk core responsibility. Details are presented by departmental result.

Table 7: The agricultural sector is financially resilient

Table 7 provides a summary of the target and actual results for each indicator associated with the results under the Sector Risk core responsibility.

Table 8: The agriculture and agri-food sector is equipped with assurance systems and supporting tools

Table 8 provides a summary of the target and actual results for each indicator associated with the results under the Sector Risk core responsibility.

Additional information on the detailed results and performance information for the Agriculture and Agri-Food Canada's program inventory is available on GC InfoBase.

Plans to achieve results - Sector Risk

Canada's agriculture and agri-food sector operates in a dynamic environment shaped by unpredictable factors such as climate variability, global market disruptions, livestock and crop health threats, and shifting consumer expectations. Effectively managing these risks is critical to maintaining the sector's stability, competitiveness and reputation for producing safe, sustainable and high-quality food. The Sustainable CAP provides a comprehensive federal-provincial-territorial framework designed to strengthen the sector's ability to anticipate, mitigate and respond to these challenges. Through collaborative efforts and targeted programs, AAFC is committed to supporting producers and processors in navigating risks that exceed their capacity to manage, ensuring the long-term resilience and growth of Canada's agriculture and agri-food industry.

The Department will also advance industry-led initiatives to develop and implement assurance systems that reflect consumer priorities for product attributes and address broader trust concerns in the agricultural sector. These systems will help safeguard the health and welfare of plants and animals, reduce vulnerabilities across the supply chain, and ensure a steady flow of Canadian food products to market. These efforts will enhance public confidence in the sector while supporting its long-term sustainability. Actions under the Sector Risk core responsibility strengthen supply chains, address labour challenges and modernize business risk management programs.

The following section describes the planned results for the Sector Risk core responsibility in 2025–26.

Result 1: The agricultural sector is financially resilient

Canada's agriculture and agri-food sector operates within a complex and rapidly changing environment impacted by diverse pressures that challenge its resilience and adaptability. Unpredictable weather patterns and the growing intensity of extreme events such as floods and droughts, driven by climate change, heighten operational complexities. Producers also face ongoing threats from pests, diseases and biosecurity risks, alongside economic pressures like market volatility, rising costs and trade restrictions. In response, AAFC is committed to proactively supporting the sector, fostering its ability to manage these risks effectively and securing its long-term sustainability.

Departmental results related to Sector Risk are assessed against indicators that measure the sector's income as a proportion of historical income, and the percentage of financially healthy farms. To support progress in these areas, AAFC will continue to deliver robust programs and services that equip producers to address the impacts of diverse risks, safeguard their livelihoods and position their operations for sustainable growth and long-term success.

Results we plan to achieve

• AAFC will continue delivering a comprehensive portfolio of business risk management (BRM) programs under the Sustainable CAP. These programs are designed to protect agricultural producers from income disruptions and production challenges, enabling them to better manage risks that could jeopardize their farm operations. Collaborating closely with provincial and territorial partners, AAFC will also prioritize efforts to modernize BRM programs, ensuring they remain effective and responsive to the changing needs of the agricultural sector.
• At their annual conference in July 2024, Federal, Provincial, and Territorial (FPT) ministers of Agriculture agreed to continue to prioritize efforts to enhance BRM programs, ensuring they remain timely, responsive and predictable in helping producers manage business risks. They also expressed the importance of improvements to the AgriRecovery framework and its interactions with other BRM programs, notably AgriStability and AgriInsurance.

• Beginning in 2025, farms with average allowable net sales of $1 million or greater in AgriInvest will be required to have a valid agri-environmental risk assessment — such as an Environmental Farm Plan — to receive matching government contributions.
• AAFC will partner with the provinces of Alberta, New Brunswick, and Ontario to assess the implications of a new alternative cost-sharing mechanism — Whole-Farm Cost Share — for AgriInsurance premiums. The Department will also explore the applicability of whole-farm revenue insurance to specific sectors of the industry as a tool for addressing market and production risks at the whole-farm level.
• In 2023–24, producers received approximately $4.2 billion in indemnity payments through the AgriInsurance program to help mitigate the impact of losses during the crop year. A project is underway to analyze the impact of climate change on crop production levels, yield volatilities and AgriInsurance program costs. Depending on the findings, the project could be expanded to include additional provinces and/or crops.
• Provinces are advancing sector sustainability efforts and have committed to implementing an AgriInsurance rebate pilot to support producers adopting specific BMPs identified through FPT technical work. The results of this pilot initiative may further inform the BRM climate review. Provinces have the flexibility to adopt BMPs that reduce production risk and increase environmental benefits.
• Starting in 2024, producers in provinces and territories where AgriStability is federally administered can choose to align their reference margin calculation with their tax-filing method. This enhancement builds on the increase to the AgriStability compensation rate which rose from 70% to 80% beginning in 2023.
• AAFC will continue to make changes to the Advance Payments Program to enhance delivery and reduce administrative burden for producers following a comprehensive Agricultural Marketing Programs Act Review in 2023. In working to make these program improvements, AAFC aims to ensure Canadian farmers maintain access to necessary cash flow to produce and market their products, in support of national food security. In 2025, amid ongoing challenges and global trade uncertainty, the interest-free portion of the Advance Payments Program will remain at $250,000 – up from $100,000 – maintaining the amount introduced in the previous program year.
• AAFC will continue to review the Canadian Agricultural Loans Act Program following a 2024 internal evaluation of the program. Forthcoming program adjustments will ensure ongoing support for the renewal of the agricultural sector and explore options to enhance access for underrepresented and marginalized groups.
• The Livestock Price Insurance (LPI) Program will continue to support the main BRM programming suite by helping cattle and hog producers in British Columbia, Alberta, Saskatchewan and Manitoba manage downside price risks. A Maritime Livestock Price Insurance Pilot Program was also recently launched in New Brunswick and Prince Edward Island. This two-year program, designed to complement existing BRM programs, allows producers to purchase price protection on beef cattle in the form of an insurance policy to safeguard against unexpected market declines. Under this new initiative, purchasers pay 100% of the premiums while both federal and provincial governments cost-share the administration of the pilot program, as is done in the LPI in Western Canada.
• Building from comprehensive public consultations on a National Agricultural Labour Strategy, as outlined in a "What We Heard Report", in 2025–26, the Department will continue engagement with federal and provincial partners to ensure the agricultural perspective is understood and to discuss sector-specific solutions to address ongoing challenges related to labour, including skills development, opportunities for youth, under-represented groups, new entrants and the shifting demographics as a result of an aging population.
• In addition to programming support, AAFC will continue to encourage integrated and proactive emergency management strategies with and within the sector to effectively plan for, prevent, and mitigate risks and potential disruptions in the supply chain that could impact human, animal, plant and environmental health and welfare. This includes ongoing collaboration with FPT governments and industry to plan, and proactively prepare, for risks associated with animal disease, such as African Swine Fever (ASF). AAFC continues to work to ensure response plans are up to date and tested in order to ensure preparedness for a potential ASF outbreak in Canada.
• FPT governments will continue their efforts on several priority initiatives related to animal disease, namely the need for a coordinated, immediate and longer-term response to a potential ASF outbreak, next steps to support a Foot-and-Mouth Disease vaccine bank, and accompanying preparedness activities, and the continued actions to respond to the identification of highly pathogenic avian influenza in dairy cattle in the United States. These efforts will take into account the effects that animal disease outbreaks have on farmers' mental health, the importance of mitigating trade-related market disruptions through mechanisms such as zoning arrangements, and the need for a continued strong collaboration and communication between FPT governments and industry stakeholders on integrated disease prevention, surveillance and response plans.
• The Department, in partnership with provinces and territories, will renew the FPT Emergency Management Framework for Agriculture in Canada. Additionally, the Department has been developing a Food System All-Hazards Preparedness and Response Plan. The plan outlines the Department's internal approach to prepare for, and respond to, significant emergency events impacting the agriculture sector, and how we work with federal, provincial and territorial partners and food system stakeholders.
• The Department will continue supporting national agricultural mental health initiatives for Canadian farmers and their communities to ensure their positive mental health, which can increase their productivity and resilience. This includes counselling and mental health literacy, as well as activities that can range from literacy training for mental health professionals across Canada to virtual symposiums.
• AAFC will maintain its support for producers' access to crop protection products through the Minor Use Pesticides Program, while also advancing the development and adoption of alternative pest management solutions. This includes promoting integrated, systems-based approaches to priority pest issues through the Pesticide Risk Reduction Program. Additionally, the Department will update and make available, national Crop profiles online, providing reliable information for science professionals, policy advisors, regulators and grower representatives.
• The FPT Working Group on Pesticide Management will continue to work collaboratively with Health Canada's Pest Management Regulatory Agency to advance the FPT Pesticides Action Plan. This work will support the continued competitiveness of Canadian growers with access to safe, effective and varied pest management tools. Ministers agreed to create an additional working group to explore approaches that meet the needs of producers and protect human and ecosystem health, while using a science and evidence-based approach to regulatory decisions.
• In consultation with provinces and territories, AAFC is advancing a multi-year review to assess the impacts of climate change across the BRM program suite. This ongoing review aims to encourage environmental sustainability, promote climate change adaptation and mitigation strategies, and ensure the fiscal sustainability of these programs. The review is expected to conclude by the end of 2025–26 and will provide insights into how BRM programs can be adapted to address the increasing climate-related risks that are likely to affect agriculture.

Result 2: The agriculture and agri-food sector is equipped with assurance systems and supporting tools

Canada's agriculture and agri-food sector is shaped by evolving consumer expectations, stringent regulatory requirements and growing demand for transparency in production methods. Assurance systems are instrumental in building trust across the food supply chain by establishing robust practices, standards, processes and procedures that ensure risks are effectively managed and claims related to production, safety and quality are verifiable. These systems empower producers to demonstrate compliance with specific production methods, regulations or standards — such as sustainability certifications or organic, halal, and kosher designations — while meeting the rising demand for ethically and environmentally conscious products.

By supporting the development and implementation of assurance systems, AAFC is helping the sector adapt to shifting market and consumer demands, strengthening its global competitiveness and reinforcing its reputation for producing safe, sustainable and high-quality food. These efforts contribute to the long-term resiliency of the Canadian agriculture and agri-food sector and its ability to thrive in an increasingly complex global marketplace.

Departmental results in this area are assessed against an indicator measuring the percentage of implementation plans for assurance projects reported to be functioning. To achieve these outcomes, AAFC will maintain close collaboration with the agriculture and agri-food sector to ensure that assurance systems, standards and tools are developed and in place to effectively manage risks and ensure food safety, while aligning product quality with market requirements, regulations and industry standards.

Results we plan to achieve

• The Department will support the sector, through the AgriAssurance Program, by advancing systems that meet market and regulatory demands, and that validate the reputation of Canadian agriculture products with regards to health, safety and quality standards. The program will remain aligned with FPT cost-shared initiatives and continue to focus on integrating assurance systems across the entire value chain. It will provide support such as aiding small and medium-sized Canadian firms acquire the necessary assurance certifications in order to export goods to other countries.
• AAFC’s Kosher Halal Investment Program, including through the AgriAssurance and AgriMarketing programs, will provide an additional $29 million over the next few years to deliver targeted support to help the red meat (beef and veal) sector address challenges related to kosher and halal slaughter practices. This support will assist federally regulated establishments in responding to specific issues at their facilities and to create industry-led documents, guidance, and standards to allow them to ensure their efficiency and cost competitiveness. The funds will also support domestic and international marketing campaigns to highlight Canada’s reputation for high-quality, safe food, helping to expand market access and promote consumer trust in their products.
• AAFC will continue partnering across the federal government, particularly with the Canadian Food Inspection Agency, to advance the development and implementation of assurance systems. Key priorities include food safety recognition, livestock traceability, plant and animal health and biosecurity.

Key risks - Sector Risk

Climate impacts

The Canadian agriculture and agri-food sector is increasingly vulnerable to shifting environmental conditions. Rising temperatures, irregular precipitation patterns and disruptions to traditional growing seasons are placing unprecedented pressures on agricultural production. The increasing frequency and severity of extreme weather events, such as droughts, floods, and wildfires, are reshaping risk landscapes, while warming climates are enabling pests and diseases to expand their range and persist in new regions, threatening crops and livestock.

The Department is taking steps to address these challenges by advancing initiatives that help producers implement beneficial management practices. These efforts focus on building farm resilience, reducing greenhouse gas emissions and adapting to climate change impacts. Complementing this work, BRM programs provide essential support to help producers manage disruptions and protect against income and production losses, safeguarding the long-term stability of their operations. AAFC will continue to work with industry partners to explore avenues to ensure farmers get support quicker and more efficiently in times of need. Highlights include the Government of Canada streamlining the process in 2024–25 to identify regions earlier in the growing season and introducing buffer zones to include producers on the edges of affected regions. Weather, climate, and production data from across Canada will continue to be monitored throughout the remainder of the season and regions will be added to the list when they meet the criteria.

Labour and skills shortages

The Canadian agriculture and agri-food sector is expected to grapple with ongoing labour issues, including shortages of high-skilled labour, such as veterinarians, the ongoing need to fill lower-wage and seasonal positions, and identifying opportunities for youth, underrepresented groups and new entrants into the sector. These challenges are further compounded by the impact of shifting demographics as a result of an aging population. As identified during Agricultural Labour Strategy's "What We Heard Report", the Department continues to engage with federal, provincial and industry partners to support the development of sector-specific solutions to address workforce challenges.

Market disruptions

The agriculture and agri-food sector will continue to face economic uncertainties, including volatile commodity markets, along with evolving input costs, inflationary and interest rate environments. Market pressures are compounded by persistent supply chain challenges affecting both domestic and international trade flows. The sector faces increased threats from transboundary animal diseases, which pose significant risks to production systems and supply chain stability. Global market dynamics and geopolitical tensions continue to influence consumer demand patterns, production costs and producer financial sustainability. To strengthen sector resilience, producers have access to a suite of BRM programs, allowing them to customize their risk management strategies. The Department continues to enhance disease prevention and preparedness through programs like AgriAssurance. These measures support both disease prevention and industry readiness for potential outbreaks, while maintaining Canada's strong position in global agricultural markets.

Planned resources to achieve results - Sector Risk

Table 9: Planned resources to achieve results for the Sector Risk core responsibility

Table 9 provides a summary of the planned spending and full-time equivalents required to achieve results.

Related government priorities - Sector Risk

Gender-based analysis plus

AAFC is dedicated to fostering diversity, equity and inclusion within the agriculture and agri-food sector. This commitment includes enhancing the participation of Indigenous Peoples and other under-represented and marginalized groups. Key initiatives under the Sector Risk core responsibility include:

• Demographic Data Collection: Starting in 2025, AAFC will begin the collection of relevant voluntary demographic data from producers participating in the AgriStability and AgriInvest programs. This data could inform the Department's work with provincial and territorial partners to finalize a results reporting strategy that will support gender-based analysis plus of BRM programming.
• The AgriAssurance Program's enhancements will continue to promote diversity and inclusion by broadening eligibility criteria in the small and medium enterprise stream, including support for domestic market certification for Indigenous-led businesses.

Further information on the under-represented and marginalized groups served by AAFC's programs and initiatives can be found in the GBA Plus supplementary information table.

United Nations 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals

Activities and programs under the Sector Risk core responsibility support Canada's efforts to address the United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), contributing towards SDG 2: Zero Hunger; and SDG 8: Decent Work and Economic Growth. In addition, AAFC, in collaboration with provincial and territorial governments, helps to build and maintain public trust in the agriculture and agri-food sector, and ensures ongoing confidence of Canadians in the agriculture and agri-food supply chain. This could indirectly support SDG 16: Peace, Justice and Strong Institutions and, specifically, target 16.6, which aims to develop effective, accountable and transparent institutions at all levels.

More information on AAFC's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in our Departmental Sustainable Development Strategy.

Innovation

In 2025–26, AAFC will continue to build on the innovative strategies introduced in previous years to further enhance the delivery of risk management programs and develop new risk management tools. For example, to improve the timeliness, simplicity and predictability of the AgriStability program, the Department analyzed results and assessed the impact of a cash reference margin pilot initiative in select jurisdictions. The results of this pilot informed the decision to offer the new option of tax-aligned reference margin calculations for AgriStability, along with advancing deadlines and offering coverage notices to producers. These new program features were implemented by AAFC for the 2024 program year, with uptake being monitored and analysis occurring in 2025–26. Some provincial jurisdictions will also implement these program features in the 2025 program year, which will provide additional data to inform future program decisions.

In addition, a two-year AgriStability outreach position was piloted in Nova Scotia to facilitate communications with agricultural producers and to encourage participation in the program. Following an assessment of the pilot, the outreach position was renewed for a second phase until March 2028. The second phase, launched in December 2024, will incorporate additional responsibilities that focus on increasing participation in the AgriStability program, provide a central point of contact to help producers connect with the BRM suite of programs, and support AAFC in the delivery of BRM programs in Nova Scotia.

AAFC will continue to advance a nudge project, developed in partnership with the Privy Council Office Fellowship Program, to increase engagement in the "My AAFC Account" portal and default users to only online interactions. In 2025–26, efforts will centre on the efficacy of the new portal. A five year e-communications strategy has been introduced to further enhance the portal's functionality to reduce paper-based communications with producers.

Program inventory - Sector Risk

The Sector Risk core responsibility is supported by the following programs:

• AgriStability
• AgriInsurance
• AgriInvest
• AgriRecovery
• Livestock Price Insurance Program
• Loan Guarantee Programs
• Farm Debt Mediation Service
• Pest Management
• Assurance Program
• Federal, Provincial, and Territorial Cost-Shared Assurance
• Return of Payments
• African Swine Fever Response

Additional information to the program inventory for Sector Risk core responsibility is available on the Results page on GC InfoBase.

Summary of changes to reporting framework since last year - Sector Risk

• Update to target and date to achieve target for the "Percentage of implementation plans for assurance projects reported to be functioning" Departmental Result Indicator.

Internal services

Description - Internal services

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

• management and oversight services
• communications services
• legal services
• human resources management services
• financial management services
• information management services
• information technology services
• real property management services
• materiel management services
• acquisition management services

Plans to achieve results - Internal services

This section presents details on how the department plans to achieve results and meet targets for internal services.

In 2025–26, Agriculture and Agri-Food Canada (AAFC) will continue to enhance internal services to reinforce the Department's ability to deliver results for Canadians. Central to this effort will be the promotion of a modern workplace that is healthy, accessible, diverse, inclusive, and respectful, driving innovation and inspiring creativity within the Department. These efforts will address the recommendations identified in the Clerk of the Privy Council's Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service, and will support the seven priority areas outlined in the Accessible Canada Act.

AAFC will keep fostering collaboration by promoting employee wellness and enhancing engagement while steadfastly advancing reconciliation with Indigenous communities as part of a whole-of-government approach. Additionally, AAFC is committed to the sustainable and responsible management of its assets and real property, aiming to meet federal greenhouse gas emission reductions targets. Below are some examples of the department's plans for 2025–26 in these areas.

Prioritizing diversity, equity, and inclusion (DEI) in our workforce and workplaces

AAFC is dedicated to creating a safe and inclusive workplace where the unique abilities and perspectives of individuals are embraced and respected. Guided by the Employment Equity Act and the core value of respect for people outlined in the Values and Ethics Code for the Public Sector, AAFC's DEI efforts are robust, including the Deputy Ministers' Task Team on Values and Ethics Report and ongoing dialogue on values and ethics, complementing the Clerk's Call to Action on anti-racism, equity and diversity. These actions encourage managers, at all levels, to discuss amongst themselves and with their staff, ways to create a more diverse, equitable and inclusive public service, aiming for meaningful and lasting results. In 2025–26, as part of its commitment to DEI, AAFC will:

• Focus on launching the next iteration of its 2022–25 Diversity, Equity and Inclusion Strategy and related Action Plan. These efforts will emphasize targeted recruitment and promotion, reducing bias and barriers in staffing, enhancing retention practices and creating safe spaces for employee networks and communities. These initiatives will advance departmental DEI goals and address workforce underrepresentation. Through the DEI Monitoring Framework, AAFC managers and employees will be accountable for implementing and supporting these initiatives, with progress remaining a key focus for 2025–26.
• Focus on increasing representation for Indigenous Peoples, Persons with disabilities, Visible Minorities and women using hiring strategies and self-identification data to address representation gaps. The Department's priority will be on closing its largest gap – Persons with disabilities – by promoting their recruitment and utilizing the Persons with Disabilities Talent Inventory from the 2024 marketing campaign. In addition to addressing departmental representation, AAFC will continue to maintain talent inventories of students with disabilities for short-term hiring needs as students represent the next generation of public servants. These initiatives align with the federal goal of hiring 5,000 Persons with disabilities by 2025, as outlined in the Accessibility Strategy for the Public Service of Canada. AAFC will also continue its efforts to improve representation in the executive cadre for Indigenous Peoples, Visible Minorities and equity-seeking groups, as well as expand the implementation of its Diverse Staffing Board Initiative, and promote the Departmental Inclusion Pledge.
• Respond to the review of the Employment Equity Act which will result in significant impact on all areas of Human Resources and DEI-related work, including the addition of two designated groups: Black employees and 2SLGBTQIA+ employees, and the evolution of definitions for Indigenous Peoples and Persons with disabilities. AAFC will also transition to a modernized self-identification platform launched by TBS and the Office of the Chief Human Resources Officer (OCHRO). This platform will align with updated definitions of disabilities; enable 2SLGBTQIA+ employees to self-identify; offer options to better reflect gender identities; and include additional questions for more tailored analysis of departmental representation (for example, there will be questions about 'racial identity' and 'ethnic origin'). It will also facilitate stronger tracking of representation gaps. Through these enhancements, the Department will be better positioned to address barriers to representation.
• Work to raise awareness among employees through the Department's DEI Networks and various events and collaborative learning opportunities such as safe space sessions, positive space training, the Positive Space Ambassador initiative, inclusion and reconciliation campaigns and the Women in Science, Technology, Engineering and Mathematics (WiSTEM) Symposium. Additionally, work towards fostering inclusive communities and a sense of belonging by increasing network membership, hosting meetings to connect and engage, and advancing the needs and voices of their communities.
• Continue to promote an organizational culture that respects and equally values both official languages (OL), by implementing actions from AAFC's 2023–28 Official Languages Strategy. To support of one of the key pillars of the Strategy, "Increasing Support of Official Language Minority Communities", efforts in applying positive measures and OL considerations will be achieved through the following:
  • Conduct OL impact analyses to all Memoranda to Cabinet and Treasury Board submissions;
  • Include clauses in all grants and contributions agreements to ensure communication products are available in both official languages; and
  • Engage and consult with key stakeholders to amplify the vitality of Official Languages Minority Communities.

Enhancing employee wellness and engagement in a modern work environment

• The Department collaborates closely with the Deputy Minister's Office to develop communications events and products that keep employees informed about key priorities and changes, while fostering wellness and collaboration. The events and products include high-attendance all-staff meetings, regular conversational sessions between the Deputy Minister and employees, and comprehensive all-staff messages. Collectively, these initiatives ensure that employees remain actively engaged, well-informed and cohesively connected within the organization.
• The organization routinely leverages a range of communication tools to keep employees informed on updates critical to their work. Some of the tools include a department-wide weekly newsletter (news@work), AgriSource (intranet), digital displays at various locations, and an employee-focused publication (The Harvest).
• The safety and well-being of its employees remains a priority for the Department. AAFC's people management priorities and programs take a preventative approach by providing support for employees, fostering healthy and safe workplaces, and raising awareness of collective accountability for psychological health and safety. AAFC will continue providing services and resources while ensuring wellness is ingrained in organization culture, processes and practices. The Department has developed a Psychological Health and Safety questionnaire and a new Harassment and Violence Risk Assessment tool. These questionnaires, along with the Hazard Identification and Assessment Methodology, will be used to complete a departmental risk assessment for physical safety, psychological safety and harassment and violence.
• A revised and updated Hazard Identification and Assessment Methodology will enable the implementation of a data-driven approach to identify both psychological and physical risks and measure the effectiveness of the strategies employed to mitigate them.
• The Department will continue transitioning its workplaces to a hybrid work model, including through ongoing engagement with employees, employee-led networks and union partners. Efforts will continue to focus on modernizing the work environment and supporting the diverse needs and situations of employees at AAFC offices and research centres across the country. The Department is building on its established etiquette guidelines by piloting community norms sessions to further support employees with the changes in behaviour needed to successfully adapt to a hybrid work model. The Department is also piloting tools such as removable nameplates to renew a sense of workplace community. Employee-led groups are being encouraged to restart social clubs and in-person gatherings. AAFC will also continue offering alternative worksite solutions through GCcoworking, which allows federal employees access to more in-office work locations in various regions across Canada.
• Through new and ongoing initiatives and pilots, the Department will continue to work on implementing better accommodations solutions for employees with disabilities. A pilot for the digital solution of the Government of Canada Workplace Accessibility Passport, occurred in October to December 2024, in partnership with the Office of Public Service Accessibility. Training and promotion on the use of the digital passport will be a focus for 2025–26 and will be incorporated into the Department's 2025 Accessibility Plan. AAFC also participated in the one-year initiative, Better Accommodations Project, sponsored by the Government of Canada Federal Champion for Employees with Disabilities through Employment and Social Development Canada (ESDC). AAFC is one of 9 implementation partners from Fall 2024 to Fall 2025, aiming to drive transformative change in accommodations for federal employees with disabilities. Additionally, to support a work environment that is accessible by design, adaptive tools are made available as standard equipment for those requiring accommodations. AAFC will continue to monitor the engagement with the Accessibility for All initiative, enhancing accessibility across the department and streamlining the process for all AAFC's employees to access these technologies.
• AAFC continues to work hard to be an accessible and inclusive organization. Under the Accessible Canada Act, federally regulated entities must report to the public on their policies and practices in relation to the identification and removal of barriers by publishing their accessibility plans, feedback processes and progress reports. AAFC will develop the 2025–27 Accessibility Plan, aligned with the regulations of the Accessible Canada Act and by considering feedback received. The plan will track progress on how we have — and planned to — remove or prevent barriers in consultation with persons with disabilities.
• Taking into account the latest Public Service Employee Survey results, AAFC will continue its efforts to ensure a workplace where mental health is addressed constructively and openly. The Department will continue to address challenges, grow awareness and enable positive behaviours to reduce stigma, build up support capacities and foster cultural change.
• AAFC will continue to address harassment and violence in the workplace through continuous improvement initiatives, guidance materials, mandatory training, as well as enhanced awareness and communications. As required by the Harassment and Violence in the Workplace Prevention Regulations, the department will review its Harassment and Violence in the Workplace Prevention Policy to reflect lessons learned and evolving workplace needs. Workplace risk assessments will also be updated by local Health and Safety (OHS) Committees with guidance from OHS Advisors and the Harassment and the Violence in the Workplace Prevention team. These Assessments include questions on identifying workplace risks through a prevention lens and are aligned with psychological health and safety factors, as well as Public Service Employee Survey results. The results of these risk assessments will be used to address specific workplace issues, as well as inform proactive and continuous improvements.
• AAFC's Values and Ethics Policy Centre will work to implement the recommendations outlined in the Deputy Ministers' Task Team on Values and Ethics Report. To achieve this, AAFC's Values and Ethics Policy Centre will continue to foster critical discussions on values and ethics across the department. These efforts will include targeted training and workshops, the introduction of new and updated tools and resources, and the enhancement of internal communication efforts. The department will also continue to update its organizational Values and Ethics Code.

Managing departmental assets and real property

AAFC aims to continuously enhance the strategic management of its assets under its stewardship, including buildings, land, equipment and data. This ongoing enhancement is intended to support the effective delivery of quality programs and services to Canadians.

• AAFC will continue efforts to fulfill the federal government's Greening Government Strategy commitments, with a focus on reducing greenhouse gas emissions from its buildings and fleet by 40% by 2025, and by at least 90% by 2050, below 2005 levels. The Department will also continue to:
  • participate in Public Services and Procurement Canada's Clean Electricity Procurement Initiative to procure 100% clean electricity, where available, by 2025
  • prioritize the acquisition of zero-emissions vehicles to meet 2030 targets
  • enhance the energy efficiency of its buildings
  • promote and strengthen green procurement and waste management practices

Further information on the Department's contributing actions to Greening Government can be found in AAFC's Departmental Sustainable Development Strategy.

• In 2025–26, the Department will continue to review and monitor its procurement and materiel management practices and procedures, to ensure they remain current, effective and efficient. Efforts will remain on establishing a strategy for the lifecycle management of its assets and future-proofing activities and services.
• Under Budget 2023's Laboratory Asset Renewal Initiative, AAFC obtained $115 million over six years to restore aging research facilities in urgent need of repair, which will continue to be directed towards 33 defined projects across 17 departmental research sites. In addition, AAFC will continue to collaborate with Laboratories Canada and federal science departments, via the Regulatory and Security Science Hub, on a broader plan to modernize science and technology infrastructure. Currently, AAFC is a partner in the newly completed Laboratories Canada Sidney Centre for Plant Health.

Strengthening digital service delivery, data management and transparency

AAFC will continue to advance digital delivery and process automation to support evolving government-wide client service approaches. Key highlights in 2025–26 will include:

• Expansion of the Grants and Contributions Digital Platform services to include client performance results reporting, as well as improvements to its data standardization, consistency and automation to improve responsiveness to client needs.
• Implementation of a five-year plan under the E-communications Strategy to increasingly transition clients to online interactions through the "My AAFC Account" portal, simplifying its registration process and increase engagement and adoption of the portal.

Additionally, the "My AAFC Account" portal enhancements will continue to develop a public-facing interface that serves as a single access point for additional programs, simplifying client engagement and ensuring a seamless, user-friendly experience. By identifying areas for improvement and understanding user experiences, the enhancements will be informed by client feedback. This client-centric design approach ensures that the improvements are tailored to meet client needs, ultimately enhancing service delivery and client satisfaction.

The following activities in 2025–26 will continue to provide an opportunity for informed departmental decision-making through better data management and analytics, collaborative problem-solving, knowledge-sharing, and the exploration of cutting-edge solutions that can significantly benefit the agricultural sector:

• Support Open Government and Open Science initiatives by negotiating transformative agreements with scientific publishers and sharing content through publicly accessible data and publication repositories, including through the Federal Open Science Repository of Canada (FOSRC) and the Open Government Portal.
• Guided by the AAFC Data strategy, the Department will continue dedicating efforts towards making AAFC data more findable, accessible, interoperable, and reuseable (FAIR) though investments in digital infrastructure, as well as data governance, catalogues and management platforms. Continuing to modernize and coordinate AAFC's policies, programs, services and operations will improve data management and keep pace with the change and growth in digital innovation.
• Engage with governments, academia and industry to better understand emerging technologies, to support digital skill development, and to conduct outreach and extension to drive the adoption of digital practices and solutions, and to foster the data-driven sector.
• AAFC's Cyber Security Operation Centre will continue to explore ways to enhance security tools and surveillance to address new digital and information technology challenges that align with the Government of Canada Policy on Service and Digital. Efforts will continue to focus on cloud monitoring and defenses, as well as endpoint and application security management and monitoring enhancements.
• Organize ideation sessions and hackathon events, bringing together stakeholders from various departments to collectively explore innovative solutions to common challenges facing the sector, such as issues related to African Swine Fever, digital traceability and using emerging technologies, such as intelligent automation and Artificial Intelligence.

Supporting Indigenous initiatives and advancing reconciliation

AAFC continues to advance reconciliation and Indigenous-led agriculture through its internal services and programming in support of a whole-of-government commitment to implementing the United Nations Declaration on the Rights of Indigenous Peoples Act and the Inuit Nunangat Policy.

Through an updated Indigenous Policy Framework, AAFC remains committed to enhancing cultural awareness and literacy, strengthening departmental capacity, fostering relationships and partnerships with Indigenous Peoples through continued engagement, ensuring policies and programs are inclusive by design, and developing and implementing strategies to support Indigenous participation in agriculture and food systems.

The Indigenous Support and Awareness Office at AAFC will continue to provide an Indigenous lens to programs, policies and staffing activities through outreach, learning and cultural awareness sessions, and the Indigenous Student Recruitment Initiative. Additionally, the Indigenous Network Circle will support Indigenous employees by offering safe spaces to network and form meaningful connections. Through 2025–26, the associated working group will continue to meet regularly and collaborate with other departmental networks.

The AAFC Indigenous Science Liaison Office (ISLO) contributes to department-wide reconciliation efforts by guiding science staff on actions aligned with the Indigenous Policy Framework. In addition, the interdepartmental Indigenous Science, Technology, Engineering and Math (I-STEM) Cluster will continue to undertake initiatives that focus on Indigenous data sovereignty, inclusive programming and strategic frameworks. In 2025-26, ISLO will continue to implement the Science and Technology Branch (STB) Indigenous Strategy which provides guidance to managers and staff on actions that contribute to reconciliation through research. ISLO will also develop an updated STB Indigenous Strategy and Action Plan to guide the implementation of activities in 2025–26. ISLO will also be coordinating department-wide reconciliation actions with other branches. These activities will inform AAFC priorities and programming, while supporting whole-of-government actions towards reconciliation and alignment with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). Finally, ISLO will continue to actively engage in, and support, the work of the I-STEM Cluster, as a departmental representative.

AAFC's Indigenous Engagement and Partnerships (IEP) Office will continue to advise on inclusive program policy, design, delivery and engagement, while providing guidance to increase Indigenous inclusion in AAFC programs to support the advancement of Indigenous-led opportunities and participation in the agriculture and agri-food sector. Additionally, AAFC's Indigenous Programming Strategy, along with its associated three-year Action Plan (2023 to 2026), will guide efforts to improve the accessibility and inclusivity of programs and services for Indigenous communities. This strategy will help apply an Indigenous lens to existing programs, enhance relations with Indigenous partners, provide direction on how to co-develop programming with Indigenous partners, and increase knowledge and awareness of Indigenous priorities and concerns.

AAFC will continue to support and leverage the Government of Canada's Information Technology (IT) Indigenous Apprenticeship Program, in support of reconciliation and support Indigenous Peoples with job experience and employment opportunities in the federal public service. In 2025–26, AAFC plans to hire four IT Indigenous apprentices. The plan is to provide each apprentice with a placement in IT client services for the first year in order to acquire a broad spectrum of experience and then, based on talent management and interest, to provide an opportunity to specialize in future years.

AAFC will continue to offer its Indigenous Pathfinder Service, providing one-on-one support to Indigenous Peoples seeking to enter or expand within the agriculture and agri-food sector. Furthermore, AAFC is exploring opportunities to further invest in Indigenous agriculture, develop sustainable agricultural and agri-food initiatives, and advance the federal implementation of the UNDRIP.

Planned resources to achieve results - Internal services

Table 10: Planned resources to achieve results for internal services this year

Table 10 provides a summary of the planned spending and full-time equivalents required to achieve results.

Planning for contracts awarded to Indigenous businesses - Internal services

Government of Canada departments are to meet a target of awarding at least 5% of the total value of contracts to Indigenous businesses each year. This commitment is to be fully implemented by the end of 2024–25.

Agriculture and Agri-Food Canada (AAFC) will continue its planning and engagement efforts to meet federal obligations, affirming the Department's commitment to increasing the participation of Indigenous businesses in federal procurement. AAFC forecasted an Indigenous procurement target of 5% for fiscal year 2024–25 and plans to meet the target for fiscal year 2025–26. This will be done through the following:

• AAFC's Procurement Strategy for Indigenous Business (PSIB) working group will continue to plan for, and identify, Indigenous set-aside procurements to support meeting these targets. On a Government of Canada level, AAFC will ensure continued participation in PSIB interdepartmental committees or working groups, as opportunities arise.
• Engagement between AAFC's procurement community and Indigenous suppliers will continue to be fostered to understand and identify commodity areas where more opportunities could exist to help expand its business with Indigenous suppliers. Indigenous company profiles are shared with business owner groups within the Department, encouraging set-aside procurements when qualified Indigenous suppliers are known to exist in the marketplace.
• Continue to leverage mandatory training on Indigenous considerations in procurement for current and new procurement staff which promotes the use of pre-established methods of supply that include Indigenous considerations, wherever possible. This training is supported through a targeted communication plan aimed at ensuring AAFC's procurement staff and business owners are aware of the Department's Indigenous procurement targets and the Government of Canada's overall commitment to Indigenous communities.

Table 11: Percentage of contracts planned and awarded to Indigenous businesses

Table 11 presents the current, actual results with forecasted and planned results for the total percentage of contracts the department awarded to Indigenous businesses.

Planned spending and human resources

This section provides an overview of AAFC's planned spending and human resources for the next three fiscal years and compares planned spending for 2025–26 with actual spending from previous years.

In this section

• Spending
• Funding
• Future-oriented condensed statement of operations
• Human resources

Spending

This section presents an overview of the department's planned expenditures from 2022–23 to 2027–28.

Budgetary performance summary

Table 12: Three-year spending summary for core responsibilities and internal services (dollars)

Table 12 presents how much money AAFC spent over the past three years to carry out its core responsibilities and for internal services. Amounts for the current fiscal year are forecasted based on spending to date.

Analysis of the past 3 years of spending

Actual spending was higher in 2023–24 compared to actual spending in 2022–23 as it reflected an increased requirement for support under the AgriInsurance, AgriStability, AgriRecovery and Advance Payments programs. It also reflected increased spending for the Supply Management Processing Investment Fund, the Poultry and Egg On-Farm Investment Program and the Agricultural Clean Technology and Agricultural Climate Solutions programs offset by reduced spending for the Dairy Direct Payment Program. The increase also reflects compensation adjustments due to the renewal of collective agreements.

Forecast spending is lower in 2024–25 as it reflects decreased requirement for support under the AgriInsurance, AgriStability, AgriRecovery programs. It also reflects spending savings under the refocusing government spending exercise. This is offset by increased funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP), the Poultry and Egg On-Farm Investment Program and the Supply Management Processing Investment Fund.

More financial information from previous years is available on the Finances section of GC Infobase.

Table 13: Planned three-year spending on core responsibilities and internal services (dollars)

Table 13 presents how much money Agriculture and Agri-Food Canada plans to spend over the next three years to carry out its core responsibilities and for internal services.

Analysis of the next three years of spending

The decrease in 2026–27 planned spending reflects a decrease in funding for the Dairy Direct Payment Program, the Agricultural Clean Technology Program and a statutory forecast decrease for the Agricultural Marketing Programs Act. It also reflects a decrease in funding for the Poultry and Egg On-Farm Investment Program, the expiry of funding for the Fertilizer Program under the Emissions Reduction Plan as well as further spending savings under the refocusing government spending exercise.

The decrease in 2027–28 planned spending reflects the expiry of the Wine Sector Support Program and the Local Food Infrastructure Fund at the end of 2026–27. It also reflects reduced planned funding for the Supply Management Processing Investment Fund and the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a further statutory decrease for the Agricultural Marketing Programs Act and reduced planned funding for the Dairy Innovation and Investment Fund.

More detailed financial information on planned spending is available on the Finances section of GC Infobase.

Funding

This section provides an overview of the department's voted and statutory funding for its core responsibilities and for internal services. For further information on funding authorities, consult the Government of Canada budgets and expenditures.

Graph 1 summarizes the department's approved voted and statutory funding from 2022–23 to 2027–28.

Analysis of statutory and voted funding over a six-year period

Over the period 2022–23 to 2027–28, spending varies from a high of $4.2 billion spent in 2023–24 to a low of $3.5 billion planned in 2027–28. Agriculture and Agri-Food Canada's programs and initiatives vary from year-to-year in response to changes affecting the agriculture, agri-food and agri-based products sector, as outlined below.

Statutory actual spending was higher in 2023–24 compared to 2022–23 actual spending and 2024-25 forecast spending as it reflected an increased requirement for support under the AgriInsurance, AgriStability, AgriRecovery and Advance Payments programs.

Statutory planned spending increases in 2025–26 due to increased funding for the Dairy Innovation and Investment Fund and a statutory forecast increase for the Agricultural Marketing Programs Act. The decrease in 2026–27 reflects reduced statutory planned funding for the Dairy Direct Payment Program and a statutory forecast decrease for the Agricultural Marketing Programs Act. The decrease in 2027–28 reflects a further statutory forecast decrease for the Agricultural Marketing Programs Act and reduced statutory planned funding for the Dairy Innovation and Investment Fund.

Voted actual spending was higher in 2023–24 compared to 2022–23 as it reflected increased spending for the Supply Management Processing Investment Fund, the Poultry and Egg On-Farm Investment Program and the Agricultural Clean Technology and Agricultural Climate Solutions programs. The increase also reflected compensation adjustments due to the renewal of collective agreements.

The increase in 2024–25 voted forecast spending reflects an increase in funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP) and further increase in funding for the Poultry and Egg On-Farm Investment Program and the Supply Management Processing Investment Fund. The increase is offset by spending savings under the refocusing government spending exercise.

The decrease in 2025–26 voted planned spending reflects a decrease in funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP), amounts carried forward in 2024–25 from the previous year as well as further spending savings under the refocusing government spending exercise.

The decrease in 2026–27 voted planned spending reflects reduced planned funding for the Agricultural Clean Technology Program and the Poultry and Egg On-Farm Investment Program. It also reflects the expiry of funding for the Fertilizer Program under the Emissions Reduction Plan as well as further spending savings under the refocusing government spending exercise.

The decrease in 2027–28 voted planned spending reflects the expiry of the Wine Sector Support Program and the Local Food Infrastructure Fund at the end of 2026–27. It also reflects reduced planned funding for the Supply Management Processing Investment Fund and the Sustainable Canadian Agricultural Partnership (Sustainable CAP).

For further information on AAFC's departmental appropriations, consult the 2025-26 Main Estimates.

Future-oriented condensed statement of operations

The future-oriented condensed statement of operations provides an overview of AAFC's operations for 2024–25 to 2025–26.

Table 14: Future-oriented condensed statement of operations for the year ended March 31, 2026 (dollars)

Table 14: summarizes the expenses and revenues which net to the cost of operations before government funding and transfers for 2024–25 to 2025–26. The forecast and planned amounts in this statement of operations were prepared on an accrual basis. The forecast and planned amounts presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.

Analysis of forecast and planned results

The net cost of Agriculture and Agri-Food Canada's operations is projected to be $3.6 billion in 2025–26, a small increase of $5.2 million from the 2024–25 forecast results.

Total expenses are projected to be $3.7 billion in 2025‒26. The majority of these expenses is in the form of transfer payments in Sector Risk (53.6% or $2.0 billion). Other expenses include $857.8 million in Science and Innovation (23.2% of total expenses), $571.4 million in Domestic and International Markets (15.4% of total expenses), and $290.6 million (7.8% of total expenses) in Internal Services.

Total revenues are projected to be $67.9 million in 2025–26, an expected increase of $9.8 million compared to 2024–25 forecast results. The increase is mainly due to higher planned net voted revenues expected from collaborative research services in 2025–26.

A more detailed Future-Oriented Statement of Operations and associated Notes for 2025–26 including a reconciliation of the net cost of operations with the requested authorities, is available on Agriculture and Agri-Food Canada's website.

Human resources

This section presents an overview of the department's actual and planned human resources from 2022–23 to 2027–28.

Table 15: Actual human resources for core responsibilities and internal services

Table 15 shows a summary of human resources, in full-time equivalents, for AAFC's core responsibilities and for its internal services for the previous three fiscal years. Human resources for the current fiscal year are forecasted based on year to date.

Analysis of human resources over the last three years

The increase in full-time equivalents from 2022–23 to 2024–25 is due to staffing required to support service delivery improvements and government priorities, increased support for supply management initiatives as well as a realignment among programs to better manage operational work load. This was offset by the expiry of funding for the Advance Agricultural Discovery Science and Innovation Initiative at the end of 2022–23.

Table 16: Human resources planning summary for core responsibilities and internal services

Table 16 shows information on human resources, in full-time equivalents, for each of AAFC's core responsibilities and for its internal services planned for the next three years.

Analysis of human resources for the next three years

The decrease in full-time equivalents in 2026–27 reflects a reduction in support for the Agricultural Clean Technology Program and for the Youth Employment and Skills Program and reflects attrition and vacancy management under the refocusing government spending exercise. The decrease in full-time equivalents in 2027–28 reflects the expiry of the Local Food Infrastructure Fund and the Wine Sector Support Program at the end of 2026–27.

Corporate information

Departmental profile

Appropriate Minister: The Honourable Heath MacDonald

Institutional head: Lawrence Hanson, Deputy Minister

Ministerial portfolio: Agriculture and Agri-Food Canada

Enabling instrument: Department of Agriculture and Agri-Food Act (R.S.C. 1985, c. A-9)

Year of incorporation / commencement: 1994

Departmental contact information

Mailing address:

Agriculture and Agri-Food Canada
1341 Baseline Road
Ottawa, Ontario
K1A 0C5

Telephone: 1-855-773-0241

TTY: 613-773-2600

Fax: 613-773-1081

Email: aafc.info.aac@agr.gc.ca

Website: agriculture.canada.ca

Supplementary information tables

The following supplementary information tables are available on Agriculture and Agri-Food Canada's website:

• Details on transfer payment programs
• Gender‑based analysis plus

Information on Agriculture and Agri-Food Canada’s departmental sustainable development strategy can be found on AAFC's website.

Federal tax expenditures

Agriculture and Agri-Food Canada's Departmental Plan does not include information on tax expenditures.

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures.

This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.

Definitions

appropriation (crédit)

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)

Operating and capital expenditures; transfer payments to other levels of government, departments or individuals; and payments to Crown corporations.

core responsibility (responsabilité essentielle)

An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.

Departmental Plan (plan ministériel)

A report on the plans and expected performance of an appropriated department over a 3year period. Departmental Plans are usually tabled in Parliament each spring.

departmental result (résultat ministériel)

A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments' immediate control, but it should be influenced by program-level outcomes.

departmental result indicator (indicateur de résultat ministériel)

A quantitative measure of progress on a departmental result.

departmental results framework (cadre ministériel des résultats)

A framework that connects the department's core responsibilities to its departmental results and departmental result indicators.

Departmental Results Report (rapport sur les résultats ministériels)

A report on a department's actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

full-time equivalent (équivalent temps plein)

A measure of the extent to which an employee represents a full person-year charge against a departmental budget. For a particular position, the full-time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person's collective agreement.

gender-based analysis plus (GBA Plus) (analyse comparative entre les sexes plus [ACS Plus])

Is an analytical tool used to support the development of responsive and inclusive policies, programs and other initiatives. GBA Plus is a process for understanding who is impacted by the issue or opportunity being addressed by the initiative; identifying how the initiative could be tailored to meet diverse needs of the people most impacted; and anticipating and mitigating any barriers to accessing or benefitting from the initiative. GBA Plus is an intersectional analysis that goes beyond biological (sex) and socio-cultural (gender) differences to consider other factors, such as age, disability, education, ethnicity, economic status, geography (including rurality), language, race, religion and sexual orientation.

Using GBA Plus involves taking a gender- and diversity-sensitive approach to our work. Considering all intersecting identity factors as part of GBA Plus, not only sex and gender, is a Government of Canada commitment.

government priorities (priorités gouvernementales)

For the purpose of the 2025-26 Departmental Plan, government priorities are the high-level themes outlining the government’s agenda in the most recent Speech from the Throne.

horizontal initiative (initiative horizontale)

An initiative where 2 or more federal departments are given funding to pursue a shared outcome, often linked to a government priority.

Indigenous business (entreprise autochtones)

For the purpose of the Directive on the Management of Procurement Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses and the Government of Canada's commitment that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses, a department that meets the definition and requirements as defined by the Indigenous Business Directory.

non-budgetary expenditures (dépenses non budgétaires)

Non-budgetary authorities that comprise assets and liabilities transactions for loans, investments and advances or specified purpose accounts, that have been established under specific statutes or under non-statutory authorities in the Estimates and elsewhere. Non-budgetary transactions are those expenditures and receipts related to the government's financial claims on, and obligations to, outside parties. These consist of transactions in loans, investments and advances; in cash and accounts receivable; in public money received or collected for specified purposes; and in all other assets and liabilities. Other assets and liabilities, not specifically defined in G to P authority codes are to be recorded to an R authority code, which is the residual authority code for all other assets and liabilities.

performance (rendement)

What a department did with its resources to achieve its results, how well those results compare to what the department intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement)

A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an department, program, policy or initiative respecting expected results.

plan (plan)

The articulation of strategic choices, which provides information on how a department intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.

planned spending (dépenses prévues)

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

program (programme)

Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

program inventory (répertoire des programmes)

Identifies all the department's programs and describes how resources are organized to contribute to the department's core responsibilities and results.

result (résultat)

A consequence attributed, in part, to a department, policy, program or initiative. Results are not within the control of a single department, policy, program or initiative; instead they are within the area of the department's influence.

statutory expenditures (dépenses législatives)

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

target (cible)

A measurable performance or success level that a department, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées)

Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.