Agriculture and Agri-Food Canada's 2026–27 Departmental Plan

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At a glance

This departmental plan details Agriculture and Agri-Food Canada's priorities, plans, and associated costs for the upcoming three fiscal years.

These plans align with the priorities outlined in the Mandate Letter as well as Agriculture and Agri-Food Canada's vision, mission, raison d'être and operating context.

Key priorities

Agriculture and Agri-Food Canada identified the following key priorities for 2026-27:

Agriculture and Agri-Food Canada (AAFC) will continue to create the conditions for the long-term profitability, sustainability and resilience of the Canadian agriculture and agri-food sector, by responding to evolving stakeholder needs and working in close collaboration with key partners. Efforts in 2026–27 will align with broader government priorities — including with respect to economic growth, climate resiliency, and supporting diversity. The Sustainable Canadian Agricultural Partnership (Sustainable CAP) marks an ambitious path forward and positions Canada's agriculture and agri-food sector for continued success as a world leader in economically, environmentally and socially sustainable agriculture and will advance the following priority areas identified in the policy framework (2023–28):

• Building sector capacity, growth and competitiveness
• Climate change and the environment
• Market development and trade
• Resiliency and public trust
• Science, research and innovation

Comprehensive Expenditure Review

The government is committed to restraining the growth of day-to-day operational spending to make investments that will grow the economy and benefit Canadians.

As part of meeting this commitment, AAFC is planning the following spending reductions:

• 2026–27: $112,248,000
• 2027–28: $80,083,097
• 2028–29: $154,721,097

It is anticipated that these spending reductions will involve a decrease of approximately 665 positions by 2028–29.

AAFC will achieve these reductions by doing the following:

• Winding down some programs outside its core mandate, such as the Agricultural Climate Solution Living Labs program.
• Reducing certain science activities where a more streamlined approach can be taken, or where capacity exists elsewhere, for example in academia and industry. AAFC will focus on core priority areas, and streamline its science operations to make them more cost-effective for the long-term.
• Improving operational efficiency by optimizing internal services to align resources with departmental priorities. This includes, rationalising administrative support and reducing management layers, advancing technology and automation to cut down on time-consuming manual work, and reducing reliance on external contractors.

The figures in this departmental plan reflect these reductions.

Highlights for Agriculture and Agri-Food Canada in 2026–27

The following provides a summary of the department's planned achievements for 2026–27 according to its approved Departmental Results Framework, which consists of a department's core responsibilities, the results it plans to achieve, and the performance indicators that measure progress toward these results.

In 2026–27, across its core responsibilities, AAFC will continue to help farmers and the entire agriculture and agri-food sector drive economic growth and competitiveness, support diversification, combat climate change, strengthen its resilience in the face of challenges, and remain a reliable partner in global food security.

In 2026-27, total planned spending (including internal services) for AAFC is $3,677,569,159 and total planned full-time equivalent staff (including internal services) is 4,801.

Summary of planned results

The following provides a summary of the results the department plans to achieve in 2026-27 under its main areas of activity, called "core responsibilities."

Core responsibility 1: Domestic and International Markets

In 2026–27, AAFC will continue to advocate for Canada's agricultural trade interests, building an open, predictable, rules-based trading system including by negotiating and supporting the implementation of bilateral and regional free trade agreements. Aligned with broader government objectives to increase and diversify Canadian exports, the department will continue to support sustainable economic growth in the sector by creating the conditions for Canadian businesses to meet the evolving challenges of the interconnected domestic and global marketplace, including through the Sustainable CAP. Efforts in 2026–27 will include promoting Canadian agriculture and agri-food, and fish and seafood products at home and abroad through market development and branding activities, addressing tariff and non-tariff barriers to trade, and maintaining and growing Canada's presence in established markets (United States, China, Japan, Europe, Mexico) while diversifying trade across priority regions, including the Indo-Pacific, Middle East, North Africa, and Latin America. Similarly, the ongoing work of Agriculture and Food Trade Commissioner Service will continue to support the sector. The department will also work closely with regulators on opportunities to reduce red tape, including efforts to ensure the perspectives and realities of the agriculture and agri-food sectors are well understood.

• Planned spending: $702,386,337
• Planned human resources: 548

More information about Domestic and International Markets can be found in the full plan.

Core responsibility 2: Science and Innovation

In response to pressing global challenges, and informed by its Strategic Plan for Science, AAFC science activities will position the department to contribute to a profitable, competitive, sustainable and innovative sector. AAFC will continue to fund and perform research and development that accelerates the pace of innovation, further enhancing the economic growth, productivity, resilience, and sustainability of the Canadian agriculture, agri-food and agri-based products sector. In advancing these priorities, AAFC will strengthen collaboration with partners and communities and fosters inclusive research by engaging diverse perspectives and knowledge systems, including Indigenous knowledge. This approach supports reconciliation and ensures science-based solutions deliver benefits equitably across Canada.

• Planned spending: $780,408,311
• Planned human resources: 2,460

More information about Science and Innovation can be found in the full plan.

Core responsibility 3: Sector Risk

Recognizing the dynamic landscape of the agriculture sector, AAFC is dedicated to proactively identifying and addressing the emerging environmental risks, market volatility, and geopolitical uncertainties that could impact the industry. In 2026–27, the department will continue to support producers and processors to maintain the resilience and sustainability of their operations in the face of challenging or unpredictable circumstances, and to look after their physical and mental well-being. The department will also continue working with federal, provincial, and territorial partners and the sector to strengthen its assurance systems and uphold stringent food safety standards, enhance traceability measures, and promote best practices in agricultural production, processing, and distribution to ensure the safety, quality, and sustainability of Canadian food products.

• Planned spending: $2,027,326,208
• Planned human resources: 396

More information about Sector Risk can be found in the full plan.

For complete information on Agriculture and Agri-Food Canada's total planned spending and human resources, read the Planned spending and human resources section of the full plan.

From the Minister

Canada's agriculture, food and seafood sector is a cornerstone of our economy, driving $150 billion of our GDP, $100 billion of our exports and one in nine jobs. That's an impressive performance, but we know there's room for growth, and this Departmental Plan for AAFC outlines the steps we will take in 2026-27 to help us get there.

In the coming fiscal year, our five-year, $3.5-billion federal-provincial-territorial Sustainable Canadian Agricultural Partnership (Sustainable CAP) will continue to deliver targeted investments to help our farmers and food processors to grow their profitability, sustainability and resilience by capturing new market opportunities, combating climate change and feeding the world.

Through 2026-27, AAFC will continue to work to help producers and processors diversify their trade to new markets, while supporting strong supply chains with our largest trading partner, the United States.

All-told, about half of our agriculture and food production by value leaves our shores, bound for almost 200 countries around the world. With 15 trade agreements covering 51 countries, we have comprehensive free-trade access to the entire G7 and the European Union. As a top-five exporter of safe, high-quality, sustainable agriculture and food products, Canada continues to be a pillar of food production for the world.

Canada's agriculture, food and seafood exports post new export records every year, and in 2026-27, AAFC will continue to help the sector boost trade, with an export target of $110 billion by 2028. We will continue to build an open, predictable, rules-based trading system through new bilateral and regional free trade agreements. We will work to grow and diversify our trade across priority regions, including the Indo-Pacific, supported by the great work of our Indo-Pacific Agriculture and Agri-Food Office. We will continue to support the sector in promoting Canadian agri-food and seafood products at home and abroad through market development and branding programs, including the AgriMarketing Program, backed by new funding of $75 million through to 2031. We will work to take down tariff and non-tariff barriers to trade. We will work closely with regulators to reduce red tape and paperwork for agri-food exporters.

For producers to succeed, they must have the tools they need to manage the unprecedented risks they face in their farm businesses every day: volatile global markets, trade barriers, high input costs, animal and plant diseases and pests, and extreme weather – to name a few. In 2026-27, AAFC will continue delivering business risk management (BRM) programs to help farmers manage risks that threaten the viability of their farms, with protection against income and production losses. Working with our provincial and territorial partners, we will ensure our programs remain effective, sustainable, and responsive to the sector's evolving needs, enabling them to better manage the risks they face.

In response to producers, Ministers of Agriculture have already agreed on key enhancements to the AgriStability program for the 2025 program year — raising the compensation rate from 80% to 90%, and doubling the payment cap to $6 million. I will continue to work with my provincial and territorial colleagues to make sure our BRM programs deliver for Canadian farmers. Ministers will also continue to help producers plan and prepare for serious disease threats such as African Swine Fever and Foot and Mouth Disease. Our government will also continue to support and defend Canada's supply management system, which helps our dairy, poultry and egg producers earn a fair return for the high-quality and healthy products they provide for Canadians.

The other key to a competitive sector is science and innovation. Agricultural research has been at the heart of AAFC since Confederation. In 2026-27, we will continue to respond to sector needs by funding and leading research that accelerates the pace of innovation, and strengthens the productivity, competitiveness, resilience, and sustainability of Canada's agriculture and agri-food sector.

With our strong focus on trade, risk management and innovation, in the coming fiscal year, we will empower Canada's agriculture and agri-food sector to seize new opportunities, as the world's demand for our high-quality, sustainable food continues to grow. To position the sector to capture these opportunities, we are beginning to lay the groundwork for the next five-year policy framework set to begin in 2028. Together, with governments and industry stakeholders at the table, we will work to keep our sector on a strong growth curve, feed the world and build the strongest economy in the G7.

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

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 Canadian 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 for Domestic and International Markets. Details are presented by departmental result.

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

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

The following section describes the planned results for the Domestic and International Markets core responsibility in 2026–27.

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. In 2026–27 departmental efforts under the Domestic and International Markets core responsibility will support broader Government of Canada trade diversification goals, including those outlined in the Prime Minister's mandate letter on strengthening our collaboration with reliable trading partners and allies around the world. This could help improve supply chain resilience, strengthen supply management, and support Canada's food system while helping to decrease and mitigate impacts of volatility and unpredictability within established markets.

AAFC will continue to focus efforts to see agriculture, agri-food and fish and seafood 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 efforts, including targeted advocacy and initiatives; market development services; industry engagement and partnerships through AAFC's regional offices, Sector Engagement Tables, and Canadian Agricultural Youth Council; the ongoing work of the Agriculture and Food Trade Commissioner Service; and AAFC programs.

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

The global demand for Canadian agriculture and agri-food products remains strong and AAFC plays an important role in supporting the sector to seize new 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 a record $100.3 billion in 2024, a 1.1% increase from 2023.

In 2026–27, AAFC will continue to work in partnership with other federal departments and agencies, 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 activities; trade advocacy; foreign direct investment promotion; market diversification; maintaining and leveraging existing market access and opening new access; support for Canada's supply-managed sectors; and ongoing regional, national, and international engagement on critical issues. These efforts are an essential support system for industry, enhancing the sector's ability to remain competitive and resilient, and benefit from predictable trade and take advantage of global trade 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 by working in close collaboration with the Canadian Food Inspection Agency (CFIA), Global Affairs Canada (GAC), and provincial, territorial and industry partners. In 2026–27, the department will continue to deliver market development initiatives across priority markets to promote global awareness of the Canada Brand, position Canada as a reliable supplier of high-quality and safe agriculture, agri-food, fish, and seafood products and expand business opportunities for Canadian companies. A continued emphasis will be placed on maintaining and expanding business opportunities for Canadian agriculture, agri-food, fish and seafood products in established markets (United States, China, Japan, European Union, Mexico) while creating new opportunities and driving demand in high-growth and emerging regions (the Indo-Pacific and the Gulf Cooperation Council Markets).

Through its network of regional offices, the department will continue to work with provincial and territorial partners, industry, and trade commissioners abroad to help Canadian companies support their international market development and trade diversification efforts by providing tools, matchmaking, pathfinding services, and resources.

Through the AgriMarketing Program, the department will continue to engage in a variety of export promotion, market development and trade activities, while prioritizing applications that advance market diversification and seize new trade opportunities. As announced in Budget 2025, beginning in 2026–27, the Government of Canada will invest an additional $75 million over 5 years in the AgriMarketing Program to increase the capacity of exporting producers to identify and seize market development opportunities across Canada and globally.

The Wine Sector Support Program will continue in 2026–27 to support the Canadian sector improve its competitiveness and adapt to ongoing challenges that impact the financial resilience.

AAFC will continue to support Canada's supply-managed dairy, poultry, and egg sectors to help them adapt to market changes resulting from specific trade agreements, such as the Canada-United States-Mexico Agreement (CUSMA).

AAFC remains committed to supporting the dairy sector in its modernization through the Federal-Provincial Agreement on the Sharing of Milk Revenues and Costs, which aims to reflect current policies and practices.

In 2026–27, the department will continue working in collaboration with provinces and territories to improve Canada's food supply chain. This includes building on the agreement from all major retailers to participate in the voluntary industry-led Grocery Code of Conduct. AAFC will continue to monitor the implementation of the Code to ensure it enhances predictability, fair dealing, transparency, and further supports a resilient supply chain that benefits all Canadians.

AAFC will likewise continue to work closely with Transport Canada on supply chain and transportation issues, to ensure that supply chain issues impacting the agriculture sector are well understood, consider potential solutions, and ensure information and updates are shared with agriculture stakeholders in a timely way. This includes ongoing joint funding of Canada's Grain Monitoring Program, to provide ongoing performance monitoring of the grain handling system in Western Canada, offering critical visibility, trusted data, and reporting to grain stakeholders along the supply chain.

The Sector Engagement Tables (SETs) and the Canadian Agricultural Youth Council will continue to enable government-industry collaboration to enhance the growth and competitive position of the sector. In 2026–27, these engagement fora will advance priority areas for government and industry, such as reducing the regulatory burden. Through the Agile Regulations Table, AAFC provides a focal point for identifying and helping to solve systemic and horizontal agriculture and agri-food regulatory irritants, as well as providing analytical capacity to better understand cumulative and economic impacts of regulations across the sector.

The agriculture and agri-food sector operates under a robust regulatory framework, and its complexity can present challenges for businesses and producers to navigate, creating burden and "red tape". In response to the Government's regulatory Red Tape Review, AAFC published a progress report in September 2025. In 2026–27, the department will continue to advance regulatory initiatives identified in the report, engage with federal regulators to modernize outdated regulations and reduce red tape for the sector, and continue to leverage the Agile Regulations Table.

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

AAFC works to maintain and increase access to global markets to support the sustained growth and profitability of Canada's agriculture and agri-food sector. The department's efforts continue to promote predictable science and rules-based decision-making and trade, while safeguarding Canada's agricultural trade interests, and diversifying exports. 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, and strengthen our collaboration with reliable global trading partners. Canada's ability to prevent, resolve or mitigate market access barriers and advance positions in trade negotiations is a measure of success towards departmental results.

Departmental efforts will focus on supporting the sector to seize new and emerging 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 CFIA, GAC, Canadian Embassies abroad, and other federal partners, the department facilitates regular bilateral and multilateral engagement with key trade partners to improve relations, advance Canada's agricultural trade and policy priorities, and support market access and market development efforts. This also includes senior official and technical engagement, ministerial missions, and targeted advocacy efforts.

The Indo-Pacific Agriculture and Agri-Food Office (IPAAO) will continue working to support investment attraction efforts into Canada, enhance market access, and identify new business opportunities for Canadian exporters to diversity their exports. Under Canada's Indo-Pacific Strategy, the IPAAO contributes to a whole-of-government approach to further strengthen Canada's economic partnerships and advance diversification efforts in the region and represents significant opportunities for the agriculture and agri-food sector.

The Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA), Canada's first-ever bilateral trade agreement with an Association of Southeast Asian Nations (ASEAN) country, was signed in September 2025. This agreement delivers a strong and positive outcome for Canada's agriculture and agri-food sector, addressing key interests and delivering substantial opportunities for Canadian producers and food processors. The CEPA will increase access to Indonesia's market for Canadian exporters by reducing or eliminating tariffs on key agriculture products (including beef, pork, canola, pulses, potatoes, fruits and pet food), and by disciplining non-tariff barriers through provisions on sanitary and phytosanitary measures, along with technical barriers to trade.

In 2026–27, the Government of Canada and the ASEAN will continue to advance negotiations toward a free trade agreement. In October 2025, Canada agreed to negotiations with the Philippines and Thailand for potential bilateral FTAs that would build on the ASEAN-Canada Free Trade Agreement (ACAFTA). Once entered into force, these would aim to secure higher standards and to further reduce tariffs and non-tariff barriers to trade between Canada and these two major ASEAN economies.

AAFC will work towards expanding trade and market access with South American partners in MERCOSUR countries (Brazil, Argentina, Uruguay, Bolivia and Paraguay). The department will seek to reach a high standard and comprehensive agreement by working to restart FTA negotiations after a pause of several years.

The successful conclusion of the negotiations of the Canada-Ecuador Free Trade Agreement (CEFTA) in February 2025 will deliver 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.

Addressing market access issues requires collaboration between the department, the CFIA, and GAC. In 2026–27, efforts will focus on strengthening Canada-US trade relations and preserving preferential market access and other benefits of the CUSMA. As well, AAFC will continue to work closely with the CFIA and GAC on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes potential accessions to the agreement.

AAFC will continue to strengthen Canadian agriculture and agri-food interests at multilateral fora, such as the United Nations Food and Agriculture Organization, the G7, the G20, the Organisation for Economic Co-operation and Development, and the World Trade Organization (WTO). The department will urge WTO members to respect and follow their trade obligations, implement relevant WTO agreements, and continue ongoing agriculture negotiations. AAFC will defend Canadian interests in 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, along with technical regulations and standards. This engagement addresses trade aspects of topics such as antimicrobial resistance or new plant breeding techniques, genetically modified crops, and plant protection products. Working through these international organizations, the department will promote sustainable agriculture and food security, and advocate for rules-based trade practices and environmental protection.

The department, along with other federal departments, will continue to collaborate with trading partners at the International Standard-Setting Bodies (such as Codex Alimentarius, World Organisation for Animal Health, and the International Plant Protection Convention) to support the development and adoption of standards, guidance, and recommendations that are based on scientific evidence and risk analysis. To help ensure a predictable rules-based global marketplace that benefits Canadian exporters, work will continue on maximum residue levels for plant protection products, animal health and welfare, antimicrobial resistance, and initiatives to promote greater harmonization and circulate guidance.

Established in September 2025, the Canada-Mexico Action Plan (2025–28) identifies agriculture and agri-food as a priority area to deepen commercial ties and collaboration, with a focus on regulatory cooperation to facilitate trade and unlock new business. The plan also focuses on promoting technical dialogues and joint efforts to advance climate-smart agriculture and livestock systems that incorporate biodiversity-friendly practices, strengthen traceability, and optimize water use in agriculture through innovative technologies.

The new EU-Canada Strategic Partnership of the Future, announced in June 2025, will create more economic opportunities and long-term prosperity for workers, businesses, and citizens in both Canada and the European Union. Both sides recognize trade challenges and have committed to reducing barriers and strengthening agriculture and agri-food trade. AAFC will continue to work to operationalize this commitment for the agricultural sector.

Gender-based Analysis Plus - Domestic and International Markets

To assess and measure the impact of programming on gender and diversity under this core responsibility, AAFC relies on multiple sources of data, including program applicant data, program performance reports, and demographic data from Statistics Canada. For application-based Domestic and International Markets programming, the department collects data from program applicants, who are asked to respond to voluntary self-identification questions to support GBA Plus. This includes data on aspects such as the majority ownership of their business, organizational mandates, expected direct beneficiaries of the proposed project, and business planning to support diversity, equity, and inclusion. In addition, AAFC collects information on beneficiaries through performance reports submitted following project completion. The department also measures the participation rates of Indigenous Peoples, women, and youth across programs administered under the Sustainable CAP. In addition to the applicant data collected, the department accesses data from Statistics Canada's Business Linkable File Environment to prepare demographic profiles and measure progress annually.

For non-application-based programs, the department uses other sources, such as sectoral data from Statistics Canada to assess potential beneficiaries of initiatives. For example, the negotiation of free trade agreements and the Farm Products Council of Canada utilize data from Statistics Canada's Census of Agriculture and Agriculture-Population Linkage data. The Canadian Pari-Mutuel Agency also collects regional data to help assess program reach and regional impacts. For the Sector Engagement Tables, AAFC monitors membership and strives for gender parity (50%) and increased representation from underrepresented and marginalized groups, aiming for a significant presence (30%).

Planned resources to achieve results - Domestic and International Markets

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

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

Complete financial and human resources information for the AAFC's program inventory is available on GC InfoBase.

Program inventory - Domestic and International Markets

Domestic and International Markets 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
• Federal, Provincial, and Territorial Cost-Shared Markets and Trade

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

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

• Addition of "Value of agriculture and agri-food domestic sales by the Canadian agricultural sector" performance indicator
• Update of "The Canadian agriculture and agri-food sector contributes to growing the economy" result to "The Canadian agriculture and agri-food sector contributes to growing the Canadian economy"
• Removal of Water Infrastructure Divestiture Program

Core responsibility 2: Science and Innovation

Description - Science and Innovation

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, and adopting, new products, processes, or practices, and improving environmental sustainability.

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 for Science and Innovation. 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, and adopting, new products, processes or practices, and improving environmental sustainability

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

The following section describes the planned results for the Science and Innovation core responsibility in 2026–27.

AAFC will continue to fund research and development activities to accelerate the pace of innovation, further enhancing the economic growth, productivity, competitiveness, resilience, 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, in 2026–27 focusing 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.

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

Scientific and innovative research are necessary to maintain the long-term sustainability and competitiveness of Canada's agriculture and agri-food sector. The department is home to a national network of research centres 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 regulators, industry, academia, other partners, and smart farms where new technologies are tested and demonstrated.

Results we plan to achieve

In the year ahead, science investments will advance priorities that help the agricultural sector to adapt to climate change, strengthen the resiliency of agro-ecosystems, accelerate digital innovation, and promote resource efficiency through circular approaches.

These efforts will include work to improve crop and livestock resilience, enhance soil health and carbon sequestration, leverage artificial intelligence (AI) and data-driven tools to improve decision-making, and reduce waste while creating value from by-products. Leveraging collaborative relationships with regulators, industry, Indigenous Peoples, academia, and other federal, provincial, and territorial partners, the department will continue to strengthen capacity in new areas of research aligned with the Sustainable CAP priority areas.

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 2026–27, the three priority areas of the program are: climate change and environment; economic growth and development; and sector resilience and societal challenges. Working with the department's Indigenous Science Liaison Office (ISLO), AAFC will continue to implement an inclusive-by-design approach to application adjudication for Indigenous-led research, development, and technology transfer projects.

Working through the interdepartmental I-STEM (Indigenous Science, Technology, Engineering, Math) Cluster, AAFC will work to increase internal capacity to foster external partnerships related to the bridging of Indigenous and Western science systems. In late 2026, the final report on Indigenous Science and Food Sovereignty examining approaches and a framework to include Indigenous science and leadership in decision-making is expected from the Council of Canadian Academies' Expert Panel. 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, and adopting, new products, processes, or practices, and improving environmental sustainability

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 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 influence other metrics such as sector productivity, revenue, and agri-environmental health. In the 4th year of Sustainable CAP, 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 development and the market launch of innovations by supporting the demonstration, adoption, or commercialization of new technologies or processes in the agriculture and agri-food sector.

Under the Agricultural Climate Solutions (ACS) Program, the Living Labs and the On-Farm Climate Action Fund (OFCAF), AAFC continues to support farmers to co-develop and adopt farming practices to tackle climate change.

In addition, efforts towards a low-carbon economy and promoting sustainable growth in Canada's agriculture and agri-food sector will continue by supporting projects under the Agricultural Clean Technology Program (ACT).

Through the Agricultural Methane Reduction Challenge, AAFC has supported 10 challenge participants to develop prototypes to advance innovative solutions that contribute to the reduction of methane emissions produced by cattle. In 2026–27, the 10 chosen finalists will be testing their solutions.

The department will continue working collaboratively with the sector to improve nutrient management and optimize fertilizer use while protecting the livelihoods of Canadian farming families. Building on the work of the Fertilizer Emissions Reduction Working Group, efforts in 2026–27 will focus on equipping farmers with the tools and support they need to reduce emissions and enhance resilience. This includes continuing to provide financial support to producers through AAFC programming such as the OFCAF and ACT funds 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 4th 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.

Gender-based Analysis Plus - Science and Innovation

To assess and measure the impact of programming on gender and diversity under this core responsibility, AAFC relies on multiple sources of data, including program applicant data, program performance reports, demographic data from Statistics Canada, and its annual call for proposals.

For application-based Science and Innovation programming, AAFC collects data on program applicants, who are asked to respond to voluntary self-identification questions to support GBA Plus. This includes data on aspects such as the majority ownership of their business, organizational mandates, expected direct beneficiaries of the proposed project, and business planning to support diversity, equity, and inclusion. The department also measures the participation rates of Indigenous Peoples, women, and youth across programs administered under the Sustainable CAP. In addition to the applicant data collected, AAFC accesses data from Statistics Canada's Business Linkable File Environment to prepare demographic profiles and measure progress annually.

The department also collects data through annual project performance reports. For example, under AgriScience, information on the gender and diversity of the highly qualified personnel involved in funded activities is collected as part of the recipient performance reporting process.

AAFC also collects GBA Plus data on its science projects under its Foundational Science and Research initiative through its annual call for proposals. Further, the department is also advancing the development of an education and awareness campaign for its scientific community, which will help inform the data collection approach.

Planned resources to achieve results - Science and Innovation

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

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

Complete financial and human resources information for the AAFC's program inventory is available on GC InfoBase.

Program inventory - Science and Innovation

Science and Innovation is supported by the following programs:

• Foundational Science and Research
• AgriScience
• AgriInnovate
• Environment and Climate Change Programs
• Federal, Provincial, and Territorial Cost-Shared Science, Research, Innovation, and Environment

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

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

• Addition of "Total land area covered by BMPs (nitrogen management, cover cropping, rotational grazing) adopted with support from AAFC programs" performance indicator
• Update of "The Canadian agriculture and agri-food sector is effective in transforming ideas into new products, processes or practices" result to "The Canadian agriculture and agri-food sector is effective in transforming ideas into, and adopting, new products, processes or practices, and improving environmental sustainability"
• Move of the Canadian Agricultural Strategic Priorities Program to the Sector Risk core responsibility

Core responsibility 3: Sector Risk

Description - Sector Risk

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 for Sector Risk. 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

The following section describes the planned results for the Sector Risk core responsibility in 2026–27.

Canada's agriculture and agri-food sector operates in a complex and ever-changing environment shaped by unpredictable factors such as climate variability, global market disruptions, livestock and crop health threats, and evolving consumer expectations. Managing these risks effectively is essential to preserving the sector's stability, competitiveness, and reputation for producing safe, sustainable, and high-quality food.

The Sustainable Canadian Agricultural Partnership (Sustainable CAP) provides a robust federal-provincial-territorial framework designed to strengthen the sector's capacity 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 continue to support industry-led initiatives aimed at developing and implementing assurance systems that align with consumer priorities for product attributes and address broader trust concerns in the agricultural sector. These systems 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. By enhancing public confidence and promoting long-term sustainability, these efforts contribute to the sector's long-term success. Actions under the Sector Risk core responsibility strengthen supply chains, address labour challenges, and modernize business risk management programs.

Result 1: The agricultural sector is financially resilient

Canada's agriculture and agri-food sector faces a complex and rapidly evolving landscape, shaped by diverse pressures that challenge its resilience and adaptability. Climate change is driving unpredictable weather patterns and intensifying extreme events such as floods and droughts, adding operational challenges for producers. At the same, time they also face persistent threats from pests, diseases, and biosecurity risks, combined with economic pressures like market volatility, rising costs, and trade disruptions. In response, AAFC is committed to proactively supporting the sector — strengthening its capacity 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 delivering comprehensive programs and services that help producers manage diverse risks, protect 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 to help agricultural producers manage income disruptions and production challenges. In collaboration with provincial and territorial partners, AAFC will prioritize modernizing these programs to ensure they remain effective, sustainable, and responsive to the sector's evolving needs, enabling them to better manage risks that could jeopardize their farm operations. Reflecting this shared commitment, Federal, Provincial, and Territorial (FPT) ministers of agriculture agreed at their September 2025 annual conference to explore reforms and options for a more coherent BRM program suite as part of discussions on the next policy framework.

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.

In 2026–27, the department will continue engagement with federal and provincial partners to ensure agricultural perspectives are understood and to discuss sector-specific solutions to address ongoing challenges related to labour, including skills development, opportunities for youth, underrepresented groups, new entrants, and the shifting demographics as a result of an aging population.

Following the 2024-25 program evaluation of the Canadian Agricultural Loans Act Program, AAFC will continue to implement its Management Action and Response Plan. This includes raising program awareness, improvements to data collection and integrity, and forthcoming program adjustments that will ensure ongoing support for the renewal of the agricultural sector and exploring options to enhance access for underrepresented and marginalized groups.

AAFC will continue to monitor and track implementation and uptake of AgriStability enhancements under the Sustainable CAP, including tax-aligned reference margins, coverage notices, and P2 pricing for non-market farm commodities. P2 pricing, which is an optional change that will take effect in some jurisdictions beginning in 2026, will track inventory valuation in both the beginning and end of the year in order to only include changes in quantity stored. This permanent change ensures the program appropriately captures the value of feed inventories destined to be used on-farm and not sold. This change ensures program calculations properly reflect farm realities, especially in years of dry conditions. With provincial and territorial agreement, AAFC will implement Budget 2025 amendments, including adjustments to include feed costs associated with rented pasture as an allowable expense. The AgriStability program will also take steps to identify barriers for underrepresented groups who may face challenges in accessing financing by starting voluntary collections of disaggregated data in the fall of 2025.

Under AAFC's AgriInvest program, a change was recently introduced that requires farms with an average allowable net sales of $1 million or greater to have a valid agri-environmental risk assessment (AERA) in place to receive matching government contributions. While AgriInvest is not involved in issuing or reviewing the contents of these assessments, AAFC will continue monitoring compliance under the program and work with producers to support adherence to this new requirement.

AAFC will share the results of its assessment on the implications of a new Whole-Farm Cost-Share mechanism for AgriInsurance premiums in Alberta, New Brunswick, and Ontario with all provinces, while continuing to explore the applicability of whole-farm revenue insurance to address market and production risks. In 2023–24, producers in Alberta received approximately $4.2 billion in AgriInsurance indemnity payments to offset crop losses following a climate impact analysis in that province. AAFC will extend this work to Saskatchewan in 2026-27 for selected crops. Provinces will also advance sector sustainability by implementing an AgriInsurance rebate pilot to encourage adoption of beneficial management practices (BMPs), with results informing the BRM climate review. Throughout the duration of Sustainable CAP, provinces are expected to adopt at least one BMP that reduces production risks and is environmentally beneficial or non-detrimental.

AAFC will continue to make changes to the Advance Payments Program to streamline delivery and reduce administrative burden for producers following a comprehensive Agricultural Marketing Programs Act Review in 2023, as well as make changes recommended through an internal evaluation completed in 2025-26. Through these 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 September 2025, in response to tariffs and other trade disruptions, the interest-free portion of the Advance Payments Program for canola advances was increased to $500,000 for the 2025 and 2026 program years. Budget 2025 announced $97.5 million over 2 years, starting in 2025-26, to temporarily increase the interest-free limit for canola advances for the 2025 and 2026 program years, together with the temporary increase to $250,000 of the interest-free limit for all producers for the 2025 program year. For non-canola advances, the limit will remain at $250,000 for 2025 and is scheduled to return to $100,000 in 2026. Officials will continue monitoring the sector to ensure the program meets Canadian farmers' needs.

The Livestock Price Insurance (LPI) Program will continue to complement the BRM program suite by helping cattle and hog producers in British Columbia, Alberta, Saskatchewan, and Manitoba manage downside price risks. The program allows producers to purchase price protection on beef cattle and hogs in the form of an insurance policy to safeguard against unexpected market declines. Under this initiative, participants pay 100% of the premiums while both federal and provincial governments cost-share the administrative expenses of the program.

Price insurance coverage was also introduced in the Maritime provinces through the Maritime Livestock Price Insurance Pilot Program (MLPIPP). This pilot program was extended to March 2028 and provides protection for beef cattle, similar to what is offered to cattle producers in Western Canada under LPI.

AAFC will continue to encourage integrated and proactive emergency management strategies across the sector to effectively plan, prevent, mitigate risks and respond to 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 diseases, such as African Swine Fever (ASF). AAFC is ensuring response plans remain current and tested to ensure preparedness for a potential ASF outbreak in Canada.

FPT governments will continue their collaboration with industry to ensure timely, coordinated responses to animal disease outbreaks, limiting spread, reducing sector impacts, and supporting recovery efforts. Priority initiatives include preparedness for ASF, establishing a Foot and Mouth Disease (FMD) vaccine bank, and responding to highly pathogenic avian influenza detection in the United States' dairy cattle. Efforts will take into account the effects that animal disease outbreaks have on farmers' mental health, mitigate trade disruptions through mechanisms such as zoning, and strengthen collaboration on prevention, surveillance, and response plans. Animal Health Canada's Foreign Animal Disease – Executive Management Board (FAD-EMB), established in June 2025, has formed disease-specific leadership teams for ASF, FMD and avian influenza, bringing together government and industry experts to guide planning and preparedness.

The department will continue supporting coordination and information-sharing activities which enhance national agricultural mental health initiatives for Canadian farmers and their communities, safeguarding farmers' mental health, increasing their productivity and resilience.

In October 2024, AAFC announced up to $13,343,409 over 5 years to Animal Health Canada (AHC) for three projects through the AgriAssurance Program – National Industry Association component – an initiative under the Sustainable CAP. This investment aims to enhance animal health and welfare, while safeguarding Canadians, through improvements to disease surveillance, emergency management, and animal care standards.

AHC will receive up to $3,534,174 to expand its animal health surveillance networks and shift the Canadian Animal Health Surveillance System to a One Health approach. AHC will also receive up to $5,000,000 for a second project aimed at improving emergency management practices. Finally, AHC will receive up to $4,809,235 to update, amend, and review several Codes of Practice which are nationally developed guidelines for the care and handling of animals, which help guarantee high standards of animal welfare. These projects are progressing toward their objectives with final performance reporting expected in late 2028.

The department, in partnership with provinces and territories, is renewing the FPT Emergency Management Framework for Agriculture in Canada. The department has been developing a Food System All-Hazards Preparedness and Response Plan to outline the department's internal strategic direction to prepare for, and respond to, significant emergency events impacting the agriculture sector, and how it works with federal, provincial, and territorial partners and food system stakeholders.

AAFC will maintain support for producers' access to crop protection products through the Minor Use Pesticides Program and promote integrated, systems-based approaches to pest management via the Pesticide Risk Reduction Program. The department will also update and publish national crop profiles online to provide reliable information for growers and stakeholders. In collaboration with Health Canada and provincial-territorial partners, AAFC will advance the FPT Pesticides Action Plan to ensure Canadian growers remain competitive by improving regulatory efficiency, enhancing intergovernmental collaboration, and investing in research for innovative, preventative pest management tools.

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

Canada's agriculture and agri-food sector is driven by evolving consumer expectations, strict 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 helps the sector adapt to shifting market and consumer demands, strengthen its global competitiveness, and uphold Canada's reputation for producing safe, sustainable, high-quality food. These efforts enhance the long-term resilience of the Canadian agriculture and agri-food sector, ensuring 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 emphasize the integration of assurance systems across the entire value chain. Support will also include helping small and medium-sized Canadian firms acquire the necessary assurance certifications in order to export goods to other countries.

Recently launched, AAFC's Kosher and Halal Investment Initiative will provide federal support over 3 years (2025-26 to 2027-28) through three elements: the Kosher Halal Investment Program, the AgriAssurance Program: Kosher and Halal Investment Component, and the AgriMarketing Program: Kosher and Halal Investment Component. These programs aim to help the Canadian red-meat (beef and veal) sector overcome operational and regulatory challenges associated with kosher and halal slaughter, improve production efficiency, and develop credible assurance systems and standards. The funding supports facility-level upgrades and productivity enhancements, the creation of industry-led guidance and certification/assurance processes, and marketing and trade-development efforts to promote Canadian kosher/halal red meat domestically and internationally. Together, the programs are designed to strengthen the resilience and competitiveness of the kosher/halal red-meat sector, which in turn supports availability of meat prepared according to religious requirements, while enhancing cost-competitiveness, consumer trust, and market access.

AAFC will continue partnering across the federal government, particularly with the Canadian Food Inspection Agency, to advance key priorities such as food safety recognition, livestock traceability, plant and animal health, and biosecurity.

Gender-based Analysis Plus - Sector Risk

To assess and measure the impact of programming on gender and diversity under this core responsibility, AAFC relies on multiple sources of data, including program applicant data and demographic data from Statistics Canada.

For application-based Sector Risk programming, AAFC collects data on program applicants, who are asked to respond to voluntary self-identification questions to support GBA Plus. This includes data on aspects such as the majority ownership of their business, organizational mandates, expected direct beneficiaries of the proposed project, and business planning to support diversity, equity, and inclusion. For non-BRM programming administered under Sustainable CAP, AAFC also measures the participation rates of Indigenous Peoples, women, and youth across programs. In addition to the applicant data collected, the department accesses data from Statistics Canada's Business Linkable File Environment to prepare demographic profiles and measure progress annually. For BRM programming, the Sustainable CAP includes data-sharing clauses regarding the collection of relevant demographic data for BRM programs, where that information is voluntarily provided by BRM program participants.

AAFC also receives data from third-party delivery agents who administer programs such as the Advance Payments Program and the Canadian Agricultural Loans Act Program (both loan guarantee programs). Participants are asked to respond to voluntary self-identification questions to support GBA Plus, including on the diversity of the ownership of their business and their years of farming experience. For the Livestock Price Insurance Program, provinces collect and share program participant demographic data and program information with the department on Indigenous Peoples, women, and youth in cases where participants are willing to voluntarily provide such information.

Planned resources to achieve results - Sector Risk

Table 9: Planned resources to achieve results for Sector Risk

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

Complete financial and human resources information for the AAFC's program inventory is available on GC InfoBase.

Program inventory - Sector Risk

Sector Risk 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
• Canadian Agricultural Strategic Priorities Program
• Federal, Provincial, and Territorial Cost-Shared Assurance
• Return of Payments

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

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

• Addition of Canadian Agricultural Strategic Priorities Program, moved from the Science and Innovation core responsibility
• Removal of African Swine Fever Response Program

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:

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

Plans to achieve results - Internal services

This section presents details on the department's plans to achieve results and meet targets for internal services, and describes how these efforts enable AAFC programs, science, and services for Canadians.

Internal services are essential enablers of AAFC's mandate. They reduce client burden, safeguard public funds, support continuity of operations, and improve service speed and quality. In 2026–27, AAFC will advance internal service initiatives that uphold the department's mandate and bolster its capacity to improve outcomes for producers, processors, and sector partners while strengthening transparency and value for public funds. AAFC will cultivate a modern healthy, accessible, diverse, inclusive, and respectful workplace. This foundation drives innovation and inspires creativity within the department while supporting reliable service for Canadians and the sector collectively. Actions will support the priorities outlined in the Prime Minister's mandate letter and align with the Clerk of the Privy Council's Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service, and the Accessible Canada Act.

The department will build on its collaborative approach by supporting employee wellness, improving engagement, and advancing reconciliation with Indigenous communities in coordination with whole-of-government initiatives. AAFC will also focus on the sustainable and responsible management of its assets and real property to support program delivery and progress toward achieving federal greenhouse gas emission reduction targets. The following highlights outline AAFC's planned initiatives in these areas for 2026–27.

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

AAFC remains committed to fostering a healthy, respectful, and inclusive work environment where employees' diverse experiences and perspectives are valued. Guided by the Employment Equity Act and the principles outlined in the Values and Ethics Code for the Public Sector, the department will continue to strengthen its approach to DEI. These efforts support service standards, accessibility obligations, and improved program design for a diverse client base.

This work is reinforced by the Deputy Ministers' Task Team on Values and Ethics Report to the Clerk of the Privy Council and ongoing dialogue on values and ethics, complementing the Privy Council Office's Call to Action on Anti-racism, Equity and Inclusion in the Federal Public Service.

A diverse and bilingual workforce improves program design and front-line service delivery for diverse clients, including producers in Official Language Minority Communities. In 2026–27, as part of its commitment to DEI, AAFC will:

• Implement the actions and activities identified in the recently launched 2026–29 Diversity, Equity, and Inclusion Plan. The plan will continue to advance departmental DEI goals and address workforce underrepresentation. It will also include a DEI Monitoring Framework to measure progress and ensure AAFC managers and employees are accountable for implementing and supporting these initiatives.
• Continue improving representation of Indigenous Peoples, persons with disabilities, visible minorities, and women at all levels through targeted staffing strategies and the use of self-identification data to address representation gaps. The department's priority will be closing its largest gaps – persons with disabilities and visible minorities. AAFC will also continue to maintain and expand its student talent inventories, with a particular focus on students with disabilities, Indigenous students, and students from visible minority groups.
• Respond to the review of the Employment Equity Act, which is expected to have broad impacts across human resources and DEI-related work. This includes the addition of two designated groups: Black employees and 2SLGBTQIA+ employees, and the evolution of definitions for Indigenous Peoples, persons with disabilities, and visible minorities as racialized employees. The department will also adopt the modernized self‑identification platform introduced by the Treasury Board of Canada Secretariat and the Office of the Chief Human Resources Officer. This platform will reflect revised definitions of disabilities and allow 2SLGBTQIA+ employees to self‑identify.

AAFC will further strengthen its inclusive and respectful workplace culture by supporting both corporate and grassroots diversity and inclusion efforts such as the Departmental Inclusion Pledge. The department will continue to support employee-led DEI networks and their secretariats. These networks will continue to raise awareness among employees through various events and collaborative learning opportunities such as safe space sessions, the Positive Space Ambassador initiative, inclusion, reconciliation campaigns, and the Women in Science, Technology, Engineering, and Mathematics Symposium.

The department will further support the vitality of Official Language Minority Communities (OLMCs) in Canada's agriculture and agri-food sectors, by implementing actions from AAFC's 2023–28 Official Languages Strategy. Under the 2nd pillar of the Strategy, "Increasing Support of Official Language Minority Communities", efforts in applying positive measures and official language (OL) considerations will include ensuring that impacts on OLMCs are considered throughout the decision-making process, including policy and program development, implementation and evaluation, and reporting by conducting OL impact analyses of all Memoranda to Cabinet and Treasury Board submissions. In addition, the department will engage with OLMCs to ensure their perspectives are reflected in program, policy, and service development, in keeping with the modernization of the Official Languages Act. Finally, official languages considerations will be enhanced in recruitment activities to attract bilingual candidates from OLMCs. These measures help ensure Canadians can access AAFC programs and services in the official language of their choice.

Supporting Indigenous initiatives and advancing reconciliation

AAFC will continue to advance reconciliation and support Indigenous initiatives and Indigenous-led agriculture. Reconciliation involves establishing and maintaining mutually respectful relationships between Indigenous and non-Indigenous Peoples in Canada. First Nations, Inuit, and the Métis Nation are rights-holders who require fundamentally different approaches to engagement than other equity-deserving groups. Reconciliatory efforts are broader than DEI efforts, despite interconnections and synergies, and need to be addressed separately. The department will remain committed to a renewed relationship with Indigenous Peoples based on the recognition of rights, respect, collaboration, and partnership, as well as the whole-of-government commitment to implementing the United Nations Declaration on the Rights of Indigenous Peoples Act and the Inuit Nunangat Policy. These actions improve how AAFC designs and delivers programs so Indigenous clients can access funding, services, and partnerships more effectively.

AAFC's Indigenous Policy Framework reflects the departmental objectives to advance reconciliation and support Indigenous agriculture and food systems. AAFC will continue to enhance cultural awareness and literacy, strengthen departmental capacity, foster relationships and partnerships with Indigenous Peoples, ensure that policies and programs are inclusive by design, and develop strategies to support Indigenous participation in agriculture and food systems.

The Indigenous Science Liaison Office (ISLO) at AAFC contributes to department-wide reconciliation efforts by guiding science staff on actions aligned with the Indigenous Policy Framework. The ISLO will carry on with supporting staff in engaging, building relationships, and co-developing research projects with First Nations, Inuit, and Métis Nation research partners through Indigenous liaison services.

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.

AAFC will continue to host the interdepartmental I-STEM Cluster and Secretariat, which provides a coordinated approach across government to address Indigenous science priorities. By combining interdepartmental resources, I-STEM members are better positioned to learn faster, work more efficiently, and act as strong partners in co-developed and Indigenous-led STEM research. The Cluster advances reconciliation through research and contributes to the United Nations Declaration Action Plan. The service helps clients navigate funding and regulatory pathways, which supports Indigenous participation and growth in the sector.

The Indigenous Support and Awareness Office at AAFC will strengthen its role in applying an Indigenous lens to programs, policies, and staffing activities. This will be achieved through expanded outreach, learning opportunities, cultural awareness sessions, and continued support for the Indigenous Student Recruitment Initiative. Additionally, the Indigenous Network Circle (INC) will remain a key source of support for Indigenous employees by providing safe spaces to connect, share experiences, and build meaningful relationships.

The department's Indigenous Engagement and Partnerships Office will provide ongoing advice to ensure inclusive program policy, design, delivery, and engagement. The Office will continue to guide efforts that expand Indigenous inclusion in AAFC programs and support the advancement of Indigenous‑led opportunities and participation across the agriculture and agri‑food sector.

AAFC will also continue to deliver its Indigenous Pathfinder Service, offering one‑on‑one support to Indigenous Peoples seeking to enter or expand within the agriculture and agri‑food sector. The department will also explore opportunities to further invest in Indigenous agriculture, develop sustainable agricultural and agri‑food initiatives, and advance the federal implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act.

Finally, AAFC will continue to support and leverage the Government of Canada's Information Technology Indigenous Apprenticeship Program as part of its reconciliation commitments. This initiative will provide Indigenous Peoples with valuable job experience and employment opportunities in the federal public service, while strengthening AAFC's workforce diversity, equity, and inclusion.

Enhancing employee wellness and engagement in a modern work environment

AAFC will continue to foster a collaborative work environment that reflects the diverse circumstances of its employees. Healthy, safe teams sustain service continuity, emergency response, and service standards for clients and partners. The department remains committed to ensuring workplaces are physically and psychologically safe, supportive, and inclusive, with mental health and wellness embedded in daily practices, priorities, and interactions.

Eliminating workplace harassment remains essential to fostering a healthy, respectful, and productive Public Service. AAFC's Ombuds Office provides an informal, independent, impartial, and confidential resource for all employees to discuss workplace concerns and explore resolution options. In 2026–27, the Ombuds Office will support continued implementation of recommendations from previous Ombuds' reports, with an increased focus on accountability, leadership engagement, and psychological safety across the department.

AAFC's National Mental Health Steering Committee will continue to support the development of psychological health and safety practices through regular engagement and feedback on departmental wellness initiatives and priorities.

The department is introducing new technology to improve the identification and assessment of workplace hazards at AAFC sites. This technology supports the Hazard Prevention Program, which helps managers, health and safety officers, and staff identify, assess, and mitigate risks, including physical, chemical, biological, and ergonomic hazards.

AAFC will continue to focus on being an accessible and inclusive organization. Under the Accessible Canada Act (ACA), federally regulated entities must report to the public on their policies and practices for the identification and removal of barriers by publishing their accessibility plans, feedback processes, and progress reports. AAFC will continue the progress on the 2025–27 Accessibility Plan, aligned with the regulations of the ACA and with the consideration of feedback received.

The department 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 and an improved Workplace Risk Assessment tool was also put in place.

AAFC's Values and Ethics Policy Centre implemented the recommendations outlined in the Deputy Ministers' Task Team on Values and Ethics Report to strengthen the department's commitment to values and ethics. This included updating AAFC's Values and Ethics Code, investing in training for employees, and participating in interdepartmental collaboration to build a stronger culture of ethics.

Strengthening digital service delivery, data management, and transparency

AAFC will continue implementing its digital strategy with a strong focus on transitioning clients toward digital service delivery. Efforts will build on progress made in simplifying the registration process and increasing adoption of the My AAFC Account portal, ensuring that more clients can access services online with ease. This work will make it easier for clients to apply, track progress, and receive decisions, which reduces paperwork and back-and-forth communication.

The "My AAFC Account" portal will continue to undergo enhancements to strengthen its role as a single access point for AAFC programs and services. Building on previous improvements, the department will focus on expanding the public‑facing interface, integrating additional programs, and streamlining navigation to reduce complexity. The enhancements aim to shorten processing times, reduce client effort, and provide clearer status information in one place.

The following activities in 2026–27 will support evidence-based departmental decision-making through improved data management and analytics, collaborative problem-solving, knowledge-sharing, and the exploration of innovative solutions that advance the agricultural sector.

• AAFC will continue to advance digital delivery to support evolving government-wide client service approaches. Key highlights in 2026–27 will include the expansion of the Grants and Contributions Digital Platform services to incorporate client performance results reporting, enhance bulk approvals, further systems integration, improve data standardization, and increase automation to improve responsiveness to client needs. The client-facing portal will also include additional enhancements to the overall client experience when applying and submitting claims.
• In alignment with Shared Services Canada, the Science Data Storage Strategy project will migrate up to nine petabytes of data to centralized storage and increase network bandwidth from research and development centres.
• The department will advance Open Government and Open Science initiatives by negotiating transformative agreements with scientific publishers and making research publicly accessible through platforms such as the Federal Open Science Repository of Canada and the Open Government Portal.
• Guided by the AAFC Data Strategy, the department will invest in digital infrastructure, data governance, catalogues, and management platforms to make its data more findable, accessible, interoperable, and reusable (FAIR).
• AAFC will engage with governments, academia, and industry to better understand emerging technologies, strengthen digital skill development, and promote the adoption of digital practices and solutions, and foster the data-driven sector. In addition, the department will encourage the adoption of digital best practices and solutions in the sector by sharing resources, such as cybersecurity tip sheets, to support a greater understanding of emerging technologies and digital practices.
• AAFC's Cyber Security Operation Centre will continue to explore ways to enhance security tools and surveillance to address emerging digital and information technology challenges in alignment with the Government of Canada Policy on Service and Digital. Efforts will continue to focus on cloud monitoring and defences, as well as endpoint and application security management and monitoring enhancements.
• The department will continue implementing better accommodation solutions for employees with disabilities. To support a work environment that is accessible by design, adaptive tools will be provided as standard equipment for employees requiring accommodations.

Managing departmental assets and real property

AAFC will continue to strengthen the strategic management of the assets under its responsibility, including facilities, land, equipment, and data, to better support the future delivery of high-quality programs and services to Canadians.

The department will advance its review and monitor its procurement and materiel management practices and procedures to ensure they remain modern, effective, and efficient. Efforts will continue to improve the lifecycle management of assets and associated activities and services. This includes fostering digital innovation and incorporating related tools to streamline processes and services.

Through the Laboratory Asset Renewal Initiative, AAFC is progressing with its 6-year, $115-million investment to address critical repairs in aging research facilities. As the initiative moves into its 4th year, the department remains on pace for full funding expenditure. To manage rising costs and avoid budget overruns, the department refined its project list to concentrate resources on the highest-priority infrastructure needs. The department will also maintain its collaboration with Laboratories Canada and federal science departments, working through the Regulatory and Security Science Hub to advance long-term plans for modernizing federal science and technology infrastructure.

AAFC will continue implementing its Real Property Portfolio Strategy (2025 to 2030) to modernize and right-size its science-based facilities in support of mission-driven science. This ongoing work will strengthen sustainable asset management practices, enhance alignment between infrastructure and science priorities, drive transformation in the departmental delivery of science and research, and ensure continued compliance with the Treasury Board Directive on the Management of Real Property. Implementation efforts will focus on portfolio optimization, long-term investment planning, enabling science and research, advancing reconciliation, diversity, and inclusion, along with the integration of environmental sustainability and digital innovation into real property decision-making.

The department will contribute to the Government of Canada's Greening Government Strategy commitments including, the central goal to reduce greenhouse gas emissions from federal buildings and fleet by 50% by 2030, and by at least 90% by 2050, relative to 2005 levels. These efforts will include measures such as improving the energy efficiency of buildings, transitioning to zero‑emission vehicles, and participating in Public Services and Procurement Canada's Clean Electricity Procurement initiative to secure 100% clean electricity. Further information on the department's contributions to Greening Government can be found in AAFC's Departmental Sustainable Development Strategy.

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.

Complete financial and human resources information for AAFC's program inventory is available on GC InfoBase.

Planning for contracts awarded to Indigenous businesses - Internal services

Government of Canada departments are required to meet a target of awarding at least 5% of the total value of contracts to Indigenous businesses each year. This commitment was fully implemented by the end of 2024–25, and is now part of AAFC's regular procurement activities. AAFC will continue planning and engagement efforts, reaffirming the department's commitment to increasing the participation of Indigenous businesses in federal procurement activities. The department plans to achieve the Indigenous procurement target of 5% in fiscal year 2026–27 by advancing planning and identifying procurement requirements, strengthening learning, fostering engagement within AAFC's procurement community and business owner groups of qualified Indigenous suppliers, and leveraging mandatory training on Indigenous considerations in procurement.

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

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

Department-wide considerations

• Related government priorities
• Artificial intelligence
• Key risks

Related government priorities

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

AAFC supports farmers and the agri-food sector in building resilience to environmental, social, and economic challenges, while driving innovation, economic growth, and competitiveness. AAFC also plays a key role in global and domestic food security and climate action.

As the vertical lead for Sustainable Development Goal (SDG) 2 – Zero Hunger, AAFC helps advance the 2030 Agenda for Sustainable Development in various ways, including by facilitating collaboration with other federal departments and agencies that also contribute to SDG 2. In addition, many of AAFC's policies, programs, and initiatives contribute to the advancement of the SDGs.

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.

Artificial intelligence

Advancing responsible and effective use of artificial intelligence

AAFC is expanding the safe and responsible use of AI to improve services, reduce costs, and help employees work more efficiently. To support this, the department will continue to enhance data quality standards and advance data management to ensure responsible AI development and optimize performance.

In 2026–27, the department will further adopt the GC-endorsed enterprise generative AI solution across the department, which will include adding security safeguards, providing targeted training for employees, and gradually integrating the tool's features into day-to-day work to improve efficiency. Over the longer term, AAFC aims to make generative AI a core standard productivity tool. This approach will support compliance, privacy, and measurable value while enabling employees to work smarter and more securely. General and IT-related risks associated with AI are outlined in AAFC's Security Standard on the Use of Artificial Intelligence.

Complementing the Canada School of Public Service data literacy and AI training, additional learning opportunities will include Udemy licenses, externally led training, and practical lab sessions with Microsoft and Amazon Web Services, as well as in-house skills labs. Small-group experimentation will also be encouraged to build confidence and promote safe use practices. These efforts will contribute to responsible and secure AI development and use, optimizing operations, enhancing employee experience, and fostering a culture of innovation.

Innovation, Automation and AI Accelerator Program

The Innovation, Automation and AI Accelerator (i3A) program is a department-wide initiative to accelerate the adoption of emerging technologies, build digital competencies, and solve operational challenges. Through employee experimentation with automation, AI, and smart tools, and by connecting internal expertise with external innovation partners, i3A drives practical approaches to streamline work, enhance service delivery, and support a more adaptive, efficient, and future-ready public service. In 2026–27, i3A will transition from early experimentation to broader implementation of ready-to-use solutions.

The i3A program will continue to work closely with the department's Office of the Chief Data Officer to strengthen data quality standards, stewardship, and interoperability. Sensitivity labeling and governance measures will be applied to ensure responsible AI development. At the same time, hands-on training and showcases will be expanded to build a digitally fluent workforce.

Development and scaling of AI solutions

The first cohort of the i3A program will advance virtual assistant trials across Copilot, RADIA (Responsible, Accountable, Data-driven, Intelligent Automation), and CanChat (Canada Chatbot - a conversational AI tool designed for government use) to streamline internal processes, enhance client interactions, and improve overall turnaround times and service quality.

The Centre for Digital Innovation (CDI) will continue to develop AI solutions that enable AAFC to conduct business more efficiently. This includes enabling AI features within IT Service Management tools to optimize support, while developing new chatbot functionalities to assist employees, enabling faster responses to client inquiries, reducing call length, and improving overall response efficiency for corporate services.

The CDI will implement new security measures, ethical standards, and robust data safeguards to help employees integrate automation and AI quickly and safely. The Centre is working closely with AAFC's cybersecurity and enterprise architecture teams to ensure secure access to new AI and automation tools. This involves setting up secure testing spaces ("sandboxes"), configuring production environments, and establishing clear guidelines to ensure staff can safely experiment and develop solutions. As the department expands its use of AI, it will integrate AI-related considerations into its risk management processes. This will include leveraging AI tools to support and automate risk analysis, as well as incorporating AI-specific objectives, risks, and mitigation strategies. These efforts contribute to responsible and secure AI development and use, optimizing operations, enhancing employee experience and fostering a culture of innovation.

Key risks

AAFC has a process in place to identify, assess and manage risks that may impact the department's ability to fulfill its mandate or achieve its intended results. Themes for these risks include:

• external events: such as challenges related to economic and market disruption, and climate and sustainability that may create pressure on the department's existing capacity to deliver policy, program solutions, and scientific activities
• technology and infrastructure: such as challenges related to cyber security, critical infrastructure and digital modernization which increase pressure on limited resources for investment and are exacerbated by the rapid pace of innovation and the growing cost of infrastructure maintenance
• people and processes: such as challenges related to prioritization and oversight, and people management given the degree of uncertainty in the current operational environment combined with navigating financial pressures

The section below goes beyond departmental risks and further outlines the risks being faced by the sector, as well as AAFC's mitigation efforts.

Market disruption and uncertainty

The sector faces growing risks from global and domestic market volatility, including the following:

• additional geopolitical and trade pressures, including protectionist policies, trade disputes, and non-science-based trade barriers challenging market access such as import quotas, and discriminatory measures impacting market access and trade policy
• increasing economic volatility that fluctuates commodity prices, inflation, and interest rates affecting producer margins and financial stability
• supply chain disruptions, transportation issues, and input cost variability impacting both domestic and international trade flows
• animal and plant disease risks such as transboundary diseases threatening production systems and market confidence
• climate-linked market shocks, including extreme weather events which can disrupt supply chains and shift consumer demand patterns

To address these risks, the following mitigation efforts will occur in 2026–27:

• diversify export markets and strategic and targeted trade engagement
• maintain and advance science-based regulations and transparent and rules-based trade
• advocate for, and promote, Canadian exports, including the ongoing work of
  • the Agriculture and Food Trade Commissioner Service
  • the Indo-Pacific Agriculture and Agri-food Office
  • the Sector Engagement Tables
  • regional stakeholder engagement and partnerships through AAFC's regional offices
  • the Canada Brand, AgriMarketing and AgriCompetitiveness programs
  • the Canadian Agricultural Youth Council
• leverage the AgriAssurance Program to strengthen assurance systems to help support international trade and disease preparedness
• help the Canadian red meat sector better capture specialty foods markets like kosher and halal through the Kosher and halal Investment Program
• continue support through BRM programs to help producers manage financial and production risks

Climate and environmental challenges

The Canadian agriculture and agri-food sector faces increasing vulnerability due to climate change and environmental pressures. Impacts vary across Canada's diverse agricultural zones, requiring tailored responses. Key risks include:

• more frequent and severe extreme weather events: Including droughts, floods, wildfires, and storms which may disrupt production and infrastructure
• shifting growing conditions: Rising temperatures and irregular precipitation patterns alter traditional growing seasons and crop viability
• pest and disease expansion: Warmer climates enable pests and diseases to survive longer and migrate into new regions, threatening crops and livestock

To address these risks, the following adaptation and mitigation efforts will occur in 2026–27:

• scientific research and innovation through AAFC's Strategic Plan for Science
• support for BMPs that enhance on-farm resilience and contribute to emissions reductions
• BRM programs to help producers manage disruptions and income losses
• enhanced data monitoring and streamlined support processes to enable earlier detection of risks and timely adaptation responses across the sector to emerging climate-related challenges

Labour challenges

Persistent labour challenges may further affect the sector's productivity and sustainability, including the following areas:

• high-skilled labour gaps: Shortages in specialized roles such as large animal veterinarians
• seasonal and low-wage positions: Difficulty filling temporary and lower-wage jobs, especially in rural areas
• demographic pressures: An aging population and rural depopulation reduce labour availability
• workforce diversity and inclusion: Barriers to entry for youth, newcomers, underrepresented groups, and Indigenous communities

To address these risks, the following mitigation efforts will occur in 2026–27:

• industry-led National Workforce Strategic Plan, coordinated by the Canadian Agricultural Human Resource Council, Food and Beverage Canada, and the Canadian Federation of Agriculture
• engagement through the Sector Engagement Tables to better understand and work collaboratively with industry to address sector-specific skills needs
• the new Agricultural Workforce Resource Hub, launched in 2025-26 in coordination with the Skills Development Table, will continue to be leveraged
• attracting Canadians to agricultural careers while recognizing the continued importance of temporary and permanent immigrants in the workforce

Cyber threats and protecting scientific data and assets

Digitization across the agriculture and agri-food supply chain has increased exposure to cyber risks. Threats include cyber-attacks which can disrupt production, transportation, and data systems, impacting food security, business continuity, and stakeholder trust. Vulnerabilities include increased reliance on technologies like AI, blockchain, and precision agriculture tools.

To address these risks, the following mitigation efforts will occur in 2026–27:

• sector-wide awareness campaigns and stakeholder engagement
• development of practical resources and best practices for cyber security preparedness
• creation of an online cyber security toolkit for small and medium-sized farming enterprises

Further, as global research becomes more collaborative and data-driven, protecting departmental scientific integrity and intellectual property is increasingly critical.

To address these risks, the following mitigation efforts will continue in 2026–27:

• implementation of the Science Data Storage Solution project, in collaboration with Shared Services Canada, to modernize data storage and management, continue to invest and implement scalable data storage solutions, which include robust data storage, redundancy, backups, and disaster recovery solutions to support modern research for AAFC scientists and external collaborators
• leveraging Government of Canada tools and guidance to protect national research while maintaining openness

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 of planned spending for 2026-27 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 2023–24 to 2028–29.

Budgetary performance summary

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

Table 12 presents AAFC's spending over the past three years to carry out its core responsibilities and for internal services. Amounts for the 2025–26 fiscal year are forecast based on spending to date.

Analysis of the past three years of spending

Actual spending was lower in 2024–25 compared to 2023–24 as it reflected a decreased requirement for support under the AgriRecovery and AgriStability programs as well as decreased spending for the Dairy Direct Payment Program. It also reflected spending savings under the refocusing government spending exercise. This was offset by increased spending for the Sustainable Canadian Agricultural Partnership (Sustainable CAP), the AgriInsurance Program, the Agricultural Clean Technology Program, the Supply Management Processing Investment Fund and the Poultry and Egg On-Farm Investment Program.

Forecast spending is higher in 2025–26 compared to actual spending in 2024–25 as it reflects increased funding for the non-BRM programs under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) including reprofiles carried forward from the previous year, a statutory forecast increase for the AgriStability Program and the Advance Payments Program under the Agricultural Marketing Programs Act and increased funding for the Dairy Innovation Investment Fund. This is offset by a reduced requirement for support under the AgriInsurance Program, spending savings under the refocusing government spending exercise and a decrease in compensation adjustments due to the renewal of collective agreements.

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 AAFC's planned spending over the next three years by core responsibilities and for internal services.

Analysis of the next three years of spending

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 a further statutory forecast decrease for the Advance Payments Program under the Agricultural Marketing Programs Act, the winding down of the Supply Management Processing Investment Fund and reduced planned funding for the non-BRM programs under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) and the Dairy Innovation and Investment Fund. It also reflects budget reductions under the Comprehensive Expenditure Review.

The decrease in 2028–29 planned spending reflects the expiry of the current five-year Sustainable Canadian Agricultural Partnership (Sustainable CAP) authorities at the end of 2027–28 which have to be renewed in collaboration with provinces and territories as well as the expiry of the On-Farm Climate Action Stream of the Agricultural Climate Solutions Program, the Supply Management Processing Investment Fund and the Agricultural Clean Technology Program at the end of 2027–28. It also reflects the winding down of Dairy Direct Payment Program and further reduced planned funding for the Poultry and Egg On-Farm Investment Program and the Dairy Innovation and Investment Fund as well as further budget reductions under the Comprehensive Expenditure Review.

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 2023–24 to 2028–29 (dollars).

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

Over the period 2023–24 to 2028–29, spending varies from a high of $4.2 billion spent in 2023–24 to a low of $1.5 billion planned in 2028–29. 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 lower in 2024–25 compared to 2023–24 actual spending as it reflected a decreased requirement for support under the AgriRecovery and AgriStability programs as well as decreased spending for the Dairy Direct Payment Program. This was offset by increased spending for the AgriInsurance Program.

Statutory forecast spending increases in 2025–26 due to a statutory forecast increase for the AgriStability Program and the Advance Payments Program under the Agricultural Marketing Programs Act and increased funding for the Dairy Innovation and Investment Fund. This is offset by a reduced requirement for support for the AgriInsurance Program.

Statutory planned funding decreases in 2026–27 as it reflects a statutory forecast decrease for the AgriStability Program and the Advance Payments Program under the Agricultural Marketing Programs Act and reduced statutory planned funding for the Dairy Direct Payment Program.

Statutory planned funding decreases in 2027–28 as it reflects a further statutory forecast decrease for the Advance Payments Program under the Agricultural Marketing Programs Act and reduced statutory planned funding for the Dairy Innovation and Investment Fund.

Statutory planned funding decreases in 2028–29 as it reflects the expiry of the current five-year Sustainable Canadian Agricultural Partnership (Sustainable CAP) statutory authorities at the end of 2027-28 which have to be renewed in collaboration with provinces and territories. It also reflects the winding down of the Dairy Direct Payment Program and further reduced planned funding for the Dairy Innovation and Investment Fund.

Voted actual spending was higher in 2024–25 compared to 2023–24 as it reflected increased spending for the Sustainable Canadian Agricultural Partnership (Sustainable CAP), the Agricultural Clean Technology Program, the Supply Management Processing Investment Fund and the Poultry and Egg On-Farm Investment Program. The increase was offset by decreased spending under the Food Policy Initiatives and the Wine Sector Support Program as well as spending savings under the refocusing government spending exercise.

The increase in 2025–26 voted forecast spending reflects increased funding for the non-BRM programs under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) including reprofiles carried forward from the previous year. This is offset by spending savings under the refocusing government spending exercise and a decrease in compensation adjustments due to the renewal of collective agreements.

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 budget reductions under the Comprehensive Expenditure Review, further spending savings under the refocusing government spending exercise and the expiry of funding for the Fertilizer Program under the Emissions Reduction Plan.

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 the winding down of the Supply Management Processing Investment Fund and reduced planned funding for the non-BRM programs under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) as well as further budget reductions under the Comprehensive Expenditure Review.

The decrease in 2028–29 voted planned spending reflects the expiry of the current five-year Sustainable Canadian Agricultural Partnership (Sustainable CAP) voted authorities at the end of 2027–28 which have to be renewed in collaboration with provinces and territories. It also reflects the expiry of the On-Farm Climate Action Stream of the Agricultural Climate Solutions Program, the Supply Management Processing Investment Fund and the Agricultural Clean Technology Program at the end of 2027–28 as well as further reduced planned funding for the Poultry and Egg On-Farm Investment Program. It also reflects further budget reductions under the Comprehensive Expenditure Review.

For further information on AAFC's departmental appropriations, consult the 2026-27 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, 2027 (dollars)

Table 14 summarizes the expenses and revenues which net to the cost of operations before government funding and transfers for 2025–26 to 2026–27. 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 $3.5 billion in 2026–27 a decrease of $496.8 million from the 2025–26 forecast results.

Total expenses are projected to be $3.6 billion in 2026‒27. The majority of these expenses is in the form of transfer payments in Sector Risk (56.1% or $2.0 billion). Other expenses include $756.8 million in Science and Innovation (21.0% of total expenses), $537.4 million in Domestic and International Markets (14.9% of total expenses), $293.1 million (8.1% of total expenses) in Internal Services.

Total revenues are projected to be $62.9 million in 2026-27, an expected increase of $7.7 million compared to 2025–26 forecast results. The increase is mainly due to higher planned net voted revenues expected from collaborative research services in 2026–27.

A more detailed Future-Oriented Statement of Operations and associated Notes for 2026–27, 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 2023–24 to 2028–29.

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 2025–26 fiscal year are forecast based on year to date.

Analysis of human resources over the last three years

The increase in full-time equivalents from 2023–24 to 2024–25 is due to staffing required to support service delivery improvements and government priorities and increased support for the On-Farm Climate Action Stream of the Agricultural Climate Solutions Program, the Supply Management Processing Investment Fund and the Poultry and Egg On-Farm Investment Program.

The decrease in full-time equivalents from 2024–25 to 2025–26 is due to attrition and vacancy management under the refocusing government spending exercise.

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 2027–28 reflects budget reductions under the Comprehensive Expenditure Review and the expiry of the Local Food Infrastructure Fund and the Wine Sector Support Program at the end of 2026–27.

The decrease in full-time equivalents in 2028–29 reflects further budget reductions under the Comprehensive Expenditure Review. It also reflects the expiry of the On-Farm Climate Action Stream of the Agricultural Climate Solutions Program, the Agricultural Clean Technology Program and the Supply Management Processing Investment Fund.

Supplementary information tables

The following supplementary information table is available on AAFC's website:

• Details on transfer payment programs

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.

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(s): 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

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 3 year 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 2026-27 Departmental Plan, government priorities are the high-level themes outlining the government's agenda in the 2025 Speech from the Throne.

horizontal initiative (initiative horizontale)

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

Indigenous business (entreprise autochtones)

Requirements for verifying Indigenous businesses for the purposes of the departmental result report are available on the Indigenous Services Canada Mandatory minimum 5% Indigenous procurement target page.

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)

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.