Deputy Minister’s briefing book: Standing Committee on Agriculture and Agri-Food, October 23, 2025

Contents

• Minister MacDonald’s opening remarks

  Hello everyone, bonjour.

  It's a pleasure to be back at this committee.

  As a former member of this committee, I know how essential your work is for the agriculture and agri-food sector.

  I am deeply humbled to serve as Minister of Agriculture and Agri-Food.

  And I'm proud to work with you to move the sector forward.

  I'll just take a couple of minutes before our discussion to speak about my mandate as Minister — and how that's played out over the past 6 months.

  Right out of the gate, I made every effort to get boots on the ground — especially given the huge uncertainty and instability that our farmers are facing at this time.

  Over the summer, I was able to visit farmers in all 3 Prairie provinces. In Saskatchewan, we had a great stop at Rob Stone's farm…including a couple of rounds in the sprayer.

  I was also able to take in the Stampede — and I aim to be at Agribition in November.

  I also visited producers and agri-businesses in New Brunswick and Nova Scotia.

  A highlight was the Strang Family Farm, who have expanded their potato operation to include an on-farm distillery —for smaller potatoes that would normally go to waste.

  And I was also able to do a couple of visits to Ontario — including Haven Green Farms, a greenhouse operation which uses advanced technology to replace U.S. lettuce in Canadian grocery stores.

  Over the past 6 months, I have made it a priority to meet all of my provincial and territorial counterparts.

  We had a great meeting in September in Winnipeg.

  And I can say there was a lot of solid collaboration around that table.

  One very positive sign of that — was our unanimous agreement to make AgriStability more bankable for producers by:

  • increasing the compensation rate from 80% to 90%; and
  • doubling the payment cap from $3 million to $6 million.

  I also made sure to sit down with canola producers across the Prairies, as we work to restore our trade with China.

  And in mid-September, I joined the Prime Minister for a meeting with canola industry leaders.

  The Prime Minister followed up with some targeted measures for the canola sector, as well as the sector at large:

  • increasing the interest-free limit for the Advance Payments Program to half a million dollars for canola advances for producers in the 2025–2026 program years
  • 75 million in new dollars for the AgriMarketing Program over the next 5 years to help the sector diversify exports to high-growth markets
  • more than $370 million to support Canadian biofuel producers

  So based on what I'm hearing on the ground, I see my mandate as 3 key deliverables for producers and the sector:

  • expand and build our trade to key markets
  • unleash greater potential by cutting red tape
  • invest in tech and innovation

  On trade — we are doubling down to help producers diversify their markets around the world.

  In August, I led a trade mission with industry to the Indo-Pacific.

  And I can tell you — our customers there want more of our high-quality food.

  Last week, I was in Mexico with industry to grow our trade there.

  Secretary Berdegué and I are definitely on the same page when it comes to the need to strengthen our integrated North American value chains.

  On red tape reduction, I thank the committee for looking at this issue, which is front-and-centre for the sector and our Government.

  Canada's regulatory system is based in science — and considered among the most robust in the world.

  But it can also be challenging for producers and agri-businesses to navigate.

  We need an even playing field with the countries that we trade with.

  And we need to expedite those regulatory decisions to keep our industry competitive.

  CFIA has recently taken a number of positive steps in that direction.

  Finally — we know that innovation is key to a competitive sector.

  Alongside our innovation programs, I'm also committed to looking at new avenues for investment in partnership with industry.

  I've had some great meetings with investors who see huge potential in our sector.

  And to help jump-start investment in ag-tech — Farm Credit Canada recently launched a $2-billion capital investment fund.

  In short, Mr. Chair, whenever we make a decision, we want to take the same approach as our farmers do — through an economic lens.

  After all, we're talking about an industry that contributes

  • $150 billion to our GDP
  • $100 billion to our exports
  • and 1 in 9 jobs in Canada

  The Prime Minister often says he wants to make Canada the strongest economy in the G7.

  Well, I think we would all agree — we can't get there without agriculture.

  Thank you, Mr. Chair. I look forward to our discussion.

• Canada–United States agriculture relations and tariffs

  • Canada and the United States have a long-standing and strong trading relationship in agriculture — one that benefits both of our countries.
  • Last year, Canada exported almost $62.0 billion in agri-food and seafood products to the U.S., accounting for 61.8% of Canada's agriculture exports to the world.
  • In 2024, Canada imported almost $39.6 billion of agri-food and seafood products from the U.S. and is the number one agri-food and seafood export market for 27 states.
  • Our supply chains are deeply integrated, allowing us to supply safe and affordable food year-round.
  • Canada will continue to defend the interests of Canadian farmers and businesses and do what is best for Canadians and the Canadian economy.
  • Canada is engaged in ongoing negotiations with the United States to address the unjustified tariffs and will take the time to negotiate a good deal for Canada.

  When pressed

  What is the Government of Canada doing to support the agriculture sector?

  The Government of Canada has put in place financing and advisory assistance through financial Crown corporations for businesses, along with support for affected workers.

  The agriculture sector can continue to benefit from the temporary 6-month relief for goods imported from the U.S. that are used in Canadian manufacturing, as well as the broader remission framework.

  These measures build on existing supports for Canadian agriculture businesses, including the Advance Payments Program, AgriStability and AgriInvest, that offer short-term support to address market related impacts on producers.

  On March 7, 2025, the Government of Canada announced that the Advance Payments Program (APP) interest-free limit will be set at $250,000 instead of $100,000 for the 2025 program year.

  Proposed additional support through AgriStability was also announced on March 22 to increase the compensation rate from 80% to 90% and doubling the current payment cap to $6 million for the 2025 program year.

  In July 2025, federal-provincial-territorial agriculture ministers agreed to implement these temporary enhancements.

  We are working to help the agricultural sector weather this storm and be even more resilient on the other side.

  How is AAFC engaging with the agriculture sector and decision-makers in the United States?

  There is no more important economic relationship than that of Canada's with the United States.

  We are committed to working with the U.S. Administration to demonstrate the mutual benefits of our current agricultural trade relationship, including highly integrated supply chains.

  The previous Minister of Agriculture visited Washington the week of February 24 where he had the opportunity to meet with U.S. congressional leaders, including House and Senate Chairs and Ranking Members of Agriculture Committees, State Secretaries, as well as key U.S. agriculture stakeholders.

  He also met virtually with Secretary Brooke Rollins on March 10, 2025, and we hope to have follow-up discussions in the near term to discuss specific issues.

  We have excellent and well-established relationships between government and industry and industry-to-industry which benefits our connected supply chains.

  What is AAFC doing to support diversification efforts for agriculture and agri-food products?

  We have a number of programs and services to help Canadian companies showcase their products on the global stage and facilitate exports to priority markets.

  This includes our Indo-Pacific Agriculture and Agri-Food Office, which is focused on positioning Canada as a trading partner of choice in the fastest-growing economic region in the world.

  We recently led a trade mission to Indonesia, Singapore and the Philippines to advance market access priorities, promote Canadian agricultural products and explore new market opportunities.

  We are working hard to promote the Canada Brand around the world — strengthening Canada's reputation as a reliable supplier of a diverse range of quality, sustainable and innovative products.

  Canada recently concluded free trade agreement negotiations with Indonesia and Ecuador, is actively negotiating a free trade agreement with the Association of Southeast Asian Nations (ASEAN), as well Costa Rica's accession to the and Comprehensive Progressive Trans-Pacific Partnership, and has started exploratory talks towards a potential free trade agreement with the Philippines.

  What is the Government doing to promote Canadian agriculture and food products in Canada?

  The Government of Canada is working with provinces, territories and industry associations to promote clear and transparent product labelling to help consumers be more confident in identifying Canadian products.

  The Government of Canada is reminding the food industry and importers of their responsibility to ensure that their labels are accurate and not misleading consumers in Canada. Accurate labelling creates a fair marketplace that benefits both consumers and businesses.

  The Canadian Food Inspection Agency created a web page on how to identify Canadian food with a quick reference guide about the different words or symbols they may find while grocery shopping — some mean the food has Canadian content, while others mean it meets a Canadian standard for quality, or organic content.

  What is the status of the 2026 Canada-United States-Mexico Agreement (CUSMA) review?

  We are ready to review CUSMA with the U.S. and Mexico at any time, whether in 2026 as scheduled or earlier.

  We remain prepared to engage with U.S. officials to advance our shared economic prosperity and security in North America. We will always defend Canada's interests and what is best for Canadians.

  CUSMA is a successful trilateral agreement that strengthens the whole North American region. It is in our common interest to ensure it continues to support our shared prosperity.

  [If pressed on the 2025 dairy review]: Canada will preserve and defend its supply management system.

  What are the key trade irritants with the U.S.?

  The department is closely tracking U.S. grievances in the agriculture space, many of which are outlined in the 2025 National Trade Estimate Report.

  These are longstanding issues that are consistently raised by U.S. agriculture stakeholders (for example, supply management, sale of wine, beer and spirits by provincial liquor boards, certain SPS measures).

  In parallel, we are closely monitoring recent U.S. trade deals with other partners to understand current U.S. priorities related to agriculture, and any potential implications for Canadian interests.

  Has the agriculture sector been able to comply with CUSMA?

  The vast majority of Canadian agriculture exports comply with CUSMA Rules of Origin requirements and are not affected by the increase of the IEEPA tariffs to 35%.

  AAFC has been and will continue to engage with stakeholders to hear about their experiences and challenges to comply with CUSMA. To date, AAFC has heard minimal concerns from agriculture stakeholders with regard to meeting CUSMA compliance requirements.

  For example, a limited amount of further processed exports, such as roasted coffee and herbal teas, are unable to meet the rules of origin requirements as their inputs are not sourced in North America.

  Background: Canada–US relations

  Agriculture trading relationship

  The U.S. is Canada's most important market for agri-food and seafood products, with Canadian exports valued at nearly C$56.6 billion in 2024, representing 61.4% of Canada's global exports for these products. During the same period, Canada imported CAD $38.2 billion in U.S. agri-food and seafood products. Canada's largest exports to the U.S. included bread, pastries and bakery products, canola oil and chocolate preparations. The U.S. is also Canada's largest fish and seafood export market, valued at CA$5.5 billion in 2024. Canada's largest agri-food and seafood sector imports from the U.S. were food preparations, bread, pastries and bakery products, and animal feed preparations. Canada is an important and mutually beneficial partner for agri-food and seafood trade for the U.S., as Canada is the second-largest export market for the U.S. as well as second-largest import origin, accounting for nearly one-fifth of the U.S.'s import needs.

  Canada is the top agri-food and seafood export market for 27 U.S. states, including all border states (except Washington and Minnesota) as well as high population states such as California and New York.

  Canada–United States–Mexico Agreement (CUSMA) review

  CUSMA includes a commitment to undertake a joint review of the Agreement after 6 years (2026). CUSMA also mandates a review of certain Canada-U.S. dairy-related provisions, set out in Chapter 3, in July 2025, and every 2 years thereafter. The department continues to undertake its analysis and engagement with other government departments, Canadian industry and other stakeholders to prepare for a range of scenarios.

  Following the President's inauguration on January 20, 2025, a Presidential Memorandum ("America First Trade Policy") was issued to address unfair and unbalanced trade. Of relevance to CUSMA, it ordered U.S. officials to:

  • start the public consultation process for the July 2026 CUSMA review
  • assess the impact of the agreement on U.S. stakeholders
  • make recommendations on U.S. participation in the Agreement
  • report to appropriate congressional committees

  Under its implementing legislation, the U.S. is required to publish a notice in its Federal Register by October 4, 2025, and report to Congress by January 2, 2026, on recommendations for actions and on whether to extend the Agreement's term. The department is closely monitoring the situation and will work with Global Affairs Canada to provide the Government of Canada's perspective as part of this public consultation.

  Tariffs on U.S. imports

  Since March 4, 2025, the U.S. has announced 3 types of tariffs against its trading partners:

  • tariffs linked to border and fentanyl issues applied specifically to Canada and Mexico
  • sectoral tariffs
  • reciprocal tariffs against a large list of countries to address perceived trade imbalances

  The Canadian agriculture and agri-food sector is directly and indirectly impacted by the border/fentanyl tariffs and sectoral tariffs, specifically:

  • 35% tariffs (an increase from 25% as of August 1, 2025) applied to all goods that are not CUSMA compliant, and a 10% tariff applied to all energy and non-originating potash using the President's authorities under the International Emergency Economic Powers Act (IEEPA). In addition, Canadian goods transshipped through other countries to evade the tariff will be subject to a transshipment tariff of 40%.
  • 50% tariffs applied to all steel and aluminum (raised from 25% on June 4, 2025), as well as 50% on all imports of semi-finished copper products and intensive copper derivative products under the authorities of Section 232 of the U.S. Trade Expansion Act of 1962.

  As of March 7, 2025, U.S. IEEPA (that is, border and fentanyl) tariffs have been paused for goods imported from Canada that qualify for duty-free preferential treatment under the Canada-United States-Mexico Agreement (CUSMA). For the vast majority of goods (over 98% of tariff lines (96% for agriculture) and over 99.9% of bilateral trade between Canada and the U.S.), traders can claim preference under the CUSMA if they meet the Agreement's rules of origin.

  On May 28, 2025, the U.S Court of International Trade (CIT) ruled that the tariffs applied by the United States under the IEEPA are invalid. Following an appeal from the Justice Department, the U.S. Court of Appeals granted a temporary stay of the ruling on May 29, which keeps IEEPA tariffs in place as it considers the merits of the appeal. The hearing for the U.S. Government's appeal of the CIT's May 28 decision invalidating the IEEPA reciprocal and fentanyl tariffs took place on July 31, 2025. A decision is expected to be issued by late August or September (at the earliest), the results of which would have an impact on the current IEEPA tariffs applied against Canada.

  Canada's response to U.S. tariffs

  Canada imposed reciprocal tariffs of 25% against C$30 billion in imports of goods from the U.S., targeting products such as orange juice, peanut butter, wine spirits, beer and coffee, effective since March 4, 2025. On March 13, 2025, in response to the U.S. steel and aluminum tariffs, Canada imposed a 25% reciprocal tariff on a list of products totaling $29.8 billion including steel products, aluminum products and additional imported goods. The department is working closely with Global Affairs Canada and the Department of Finance on options to mitigate the impacts of U.S. tariffs and its effects on the agriculture sector.

• Internal trade

  • The free movement of agriculture and agri-food products within Canada is important for our economy and food security. Most products can already move freely within Canada.
  • We are working with provinces and territories on efforts to eliminate internal trade barriers, while maintaining health and safety standards that are important for Canadians and our strong international reputation.
  • We are also working across government and with stakeholders to ensure the smooth implementation of the Free Trade and Labour Mobility in Canada Act, which will remove barriers to internal trade and build one Canadian economy.
  • Removing barriers in other sectors, like transportation, would also benefit the agriculture sector. We are committed to working across government in all areas where the removal of internal trade barriers further encourages the free flow of agriculture and agri-food products across Canada.

  When pressed

  How does the Canadian Free Trade Agreement (CFTA) apply to the agriculture and agri-food sector?

  The CFTA is an intergovernmental trade agreement signed by the federal government and all provinces and territories. The objective of the CFTA is to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services and investments within Canada and to establish an open, efficient and stable domestic market.

  The federal government removed all party-specific exceptions from the CFTA, echoing the actions of some provinces. This has bolstered the CFTA and ensured it enables free internal trade in more sectors of our economy.

  The agreement includes general exceptions for agricultural commodities relating to collective marketing arrangements. This includes activities such as production, pricing, buying and selling agricultural products. These exceptions place restrictions on agricultural goods and require provincial and territorial support to amend. These general exceptions have not been removed from the CFTA, maintaining the price and supply stability enjoyed by both Canadian farmers and consumers.

  Outside of the CFTA, regional agreements, such as the New West Partnership, also exist and support interprovincial trade, but do have limitations on the movement of some goods.

  How is Agriculture and Agri-Food Canada (AAFC) helping reduce interprovincial trade barriers in Canada?

  Agriculture and Agri-Food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) have been working closely with several provincial and territorial governments through federal–provincial–territorial government tables, including the Domestic Food Trade Working Group, to identify pathways to facilitate more domestic trade of meat by having more companies access the federally regulated system.

  AAFC has been supporting the CFIA in the development of domestic meat trade pilots, most notably the "Ready to Grow" pilot with Ontario. The pilot will support select provincially licensed meat businesses in obtaining a federal license under the Safe Foods for Canadians Regulations (SFCR) to enable them to trade interprovincially.

  AAFC routinely works with provinces and territories to better understand barriers to internal trade and support efforts to reduce them. AAFC is committed to advancing internal trade while maintaining high food safety standards which serve as the foundation for international trade as well as protecting Canada's supply management system.

  What international trade obligations impact interprovincial trade in Canada's agricultural sector?

  Canada takes its commitments at the World Trade Organization seriously, ensuring that our approach to trade reflects both global dynamics and domestic priorities. International markets are vital to sustaining and growing Canada's agriculture sector, whereby we remain a strong proponent of a fair, rules-based trading system.

  How will the Free Trade and Labour Mobility in Canada Act (One Canadian Economy Act) improve internal trade in Canada's agriculture and agri-food sector?

  The One Canadian Economy Act will remove federal barriers to the movement of goods, services and workers across Canada while ensuring Canadians' health, safety, security and economic wellbeing is protected.

  The One Canadian Economy Act removes federal barriers to internal trade by ensuring that a good or service that meets a provincial or territorial requirement will be considered compliant with any comparable federal requirements. We have worked with provinces and territories to compliment ambitious efforts they have already made to increase internal trade.

  The Government of Canada is currently working on regulations to operationalize the act and deliver benefits to Canadians. Regulations will define comparability and outline any exceptions needed — ensuring the act improves internal trade — while continuing to uphold invaluable regulations that protect the health and safety of Canadians.

  Background — interprovincial trade

  In light of current trade issues and imposition of tariffs, there is heightened public interest in increasing internal trade within Canada. The recently passed One Canadian Economy Act, which was enacted as part of Bill C-5, aims to reduce federal barriers to trade within Canada. If a good, such as food, is produced, used or sold according to provincial or territorial rules, it is considered to meet comparable federal requirements, unless specific regulations say otherwise. Supporting regulations are still needed to put the act into force. Work to develop the regulations is ongoing, which will include consideration of whether any food commodities should be excepted from the act.

  For the agriculture and agri-food sector, trade barriers vary across different commodities. The shared authority over agriculture and agri-food between the federal and provincial governments has resulted in each province instituting its own regulatory system that is separate and unique from the federal regulatory system. The federal government has authority over trade and commerce, meaning that it regulates agricultural and agri-food products that cross provincial, territorial, or international borders. This structure has led to barriers to interprovincial trade, notably because:

  • there is a lack of regulatory alignment between federal and provincial food safety systems. The federal Safe Food for Canadians Regulations (SFCR) administered by the CFIA apply to both international and interprovincial trade of food, to ensure both are held to the same standards. In addition, there are various considerations regarding trade agreements to which Canada is a party that are designed to facilitate trade in safe food between parties. These agreements help Canada access markets as a major food exporter.
    • Provincially regulated meat processing facilities looking to expand their markets report challenges in meeting SFCR standards, thereby limiting domestic trade opportunities. Overall, 97% of meat slaughter already occurs at federally inspected abattoirs.
    • While separate from the SFCR and sector or provincial legislative requirements, the CFTA provides a fairly broad set of exemptions for any commodities subject to collective marketing or related arrangements (for example, supply managed products).
  • provincial barriers, such as those placed on alcohol across provincial borders, also limit interprovincial trade opportunities.

  Removal of federal party-specific exceptions in the Canadian Free Trade Agreement (CFTA)

  The preamble to Part 1 of Bill C-5 included the Government of Canada's intent to remove CFTA federal exceptions. On July 1, 2025, the Government announced that all federal exceptions to the CFTA were removed. The removal of federal exceptions to the CFTA does not alter the General Exception Chapter of the CFTA (which includes exceptions for collective marketing and supply management).

  Impact of the One Canadian Economy Act on AAFC legislation

  Implementation of the One Canadian Economy Act will not impact the supply management system for dairy, poultry and eggs, consistent with the Government's commitment to protect supply management. The general exception on collective marketing under the Canada Free Trade Agreement (Article 812), which protects supply management, also remains in place. Comparable food safety regulations under the jurisdiction of the CFIA are also likely in scope of the act and are being analyzed by CFIA.

  AAFC is actively working with Privy Council Office and other departments to guide the implementation of the FTLMCA including the development of regulations to ensure the comparability definition and exceptions best serve the agriculture and agri-food sector.

  Existing federal–provincial–territorial government forum (Domestic Food Trade Working Group)

  AAFC and the CFIA are engaging with provincial/territorial counterparts to address barriers to interprovincial trade through the Domestic Food Trade Working Group, which brings together the provinces and territories with the federal government to better understand the barriers to internal trade and examine opportunities to address obstacles.

  Initiatives by other federal departments

  Other federal departments are also advancing initiatives that will have positive effects on interprovincial trade in the agriculture and agri-food sector. AAFC is supporting these initiatives which include

  • continued support for a Transport Canada mutual recognition trucking pilot
    • explore opportunities with partners to enhance the performance, resiliency and capacity of Canada's domestic transportation system by increasing the number of mutually recognized regulations
  • direct-to-consumer alcohol sales, led by the Privy Council Office's Intergovernmental Affairs
    • As of July 25, 2025, 10 jurisdictions have agreed to a memorandum of understanding to advance direct-to-consumer alcohol sales. Parties will now work towards finalizing more detailed operating agreements, or implementing their own frameworks, required to implement direct-to-consumer alcohol sales by May 2026.
    • Canada, Ontario and Saskatchewan were named co-leads to advance this work.

• Beef and pork trade with the United States

  • Canada and the U.S. share mutually beneficial supply chains for bovine, swine, beef, veal and pork with bilateral trade valued at CAD$12.2 billion in 2024.
  • The Government of Canada is concerned with the increase in measures that could have a negative impact on meat and livestock exports to the U.S. at both federal and state levels.
  • We continue to monitor the implementation of these measures and engage with our U.S. counterparts, when appropriate, to ensure that the trade of Canadian livestock and meat products to the U.S. is not disrupted.
  • Our government remains committed to defending Canadian farmers, ranchers, and meat processors and maintaining access to key markets, such as the U.S.

  When pressed

  Is the U.S. meeting its international trade obligations with these regulations?

  Government officials are monitoring these regulations and their implementation to ensure that they comply with the U.S.' obligations under the World Trade Organization (WTO) and CUSMA.

  What is Canada doing to ensure that patchwork of U.S. state-level agricultural production regulations (related to animal welfare) does not disrupt the Canada–U.S. livestock and meat trade?

  Canada is concerned about the patchwork of state-level regulations in the United States that are related to agricultural production practices, and which can have a negative impact on pork and veal production and trade in North America.

  Regulations that impose prescriptive and burdensome farming practices for food production on a state-by-state basis make it difficult for producers to operate safely and efficiently.

  The Government of Canada continues to defend our agriculture sector through engagement with U.S. states and federal officials to express our concerns with these state regulations, the precedent they set, and the regulatory patchwork they create.

  Will Canada adopt animal welfare standards reflected in these regulations?

  Canada is a strong advocate for proper care and handling of farm animals, but California's Proposition 12 and Massachusetts' Question 3 do not appear to take a scientifically informed or whole-of-operation approach to advancing such objectives.

  Animal welfare is important in Canada; a value reflected in our strong Codes of Practice for the Care and Handling of Farm Animals.

  Canada's codes of practice do not focus on a single aspect of animal welfare, such as housing, but instead use comprehensive and outcome-based approaches that address farm animal care issues. This is consistent with international guidance and rules-based trade.

  The codes are reviewed every 5 years and are typically revised and updated every 10 years to remain aligned with current government policies and regulations, industry practices and scientific research.

  What is Canada doing to defend Canadian meat products against the U.S. Voluntary Product of USA Labeling?

  The finalized "Product of USA" labelling regulations for meat, poultry and eggs could have a detrimental impact on Canada's livestock and meat industries.

  Canada is disappointed that the rule does not reflect the unique Canada–U.S. trading relationship and could negatively impact supply chains, food inflation and food security on both sides of the border.

  Canada is closely monitoring the impacts and implementation of the new regulations, which come into full effect on January 1, 2026, and continues to engage with U.S. officials.

  What is the difference between voluntary "Product of USA" labelling and voluntary "Product of Canada" labelling guidelines?

  Canada supports enabling consumers to make informed choices. However, the "Product of USA" labelling can only be used for animals born, raised slaughtered and processed in the U.S., whereas in Canada, the guidelines allow the use of "Product of Canada" labelling for cattle that have spent a period of at least 60 days in Canada before slaughter.

  Canada has had guidelines for the voluntary use of "Product of Canada" and "Made in Canada" claims since 2009, which are based on the Food and Drugs Act and, since 2019, the Safe Food for Canadians Act. These guidelines apply to all foods sold in Canada.

  Will Canada use retaliatory measures/tariffs against the final rule?

  Canada was granted retaliatory rights by the WTO when it successfully challenged the U.S.'s 2008 mandatory country-of-origin labelling (COOL) measure, which required all covered beef/pork products sold in the U.S. to indicate the country of origin.

  The voluntary Product of USA rule is different than the U.S.'s mandatory COOL rule, which required all covered beef/pork products sold in the U.S. to indicate the country of origin.

  Canada is closely monitoring the impacts and implementation of the final rule, in light of the U.S. international trade obligations.

  Is there a need to have greater domestic pork and beef pricing transparency?

  Canadian swine, cattle producer and meat processor organizations have advocated for greater pricing transparency through mandatory reporting to improve market confidence and reduce risk exposure of price disruptions in the U.S. (for example, disease outbreaks).

  Canada supports industry efforts to explore and assess potential mechanisms to increase the level of pricing transparency for pork and beef. Active collaboration and buy-in from all major industry partners, particularly processors, would ensure equity in the process.

  Background — U.S. animal welfare regulations

  Several U.S. states, most notably California and Massachusetts, have adopted or proposed animal welfare regulations, which focus on minimum space requirements for certain animals and the use of breeding stalls.

  The differing regulations between states, as well as the stringent standards proposed in some cases, are expected to have a negative impact on Canada's exports of hogs, pork and veal to the U.S. These concerns are also shared by some pork-, veal- and poultry-producing states, as well as U.S. industry groups.

  There have been several legal challenges of both Proposition 12 and Question 3, largely focusing on the ability of one state to set agricultural production standards for the entire country. While most have been dismissed or upheld the measures, outstanding legal challenges to monitor include:

  • the Trump Administration, via the U.S. Department of Justice, filed a suit against California on July 9, 2025 challenging its egg production regulations, including Proposition 12, stating they violate federal law and raise egg prices for consumers;
  • Triumph Foods, along with many food companies and 22 U.S. states, appealed a previous court ruling that upheld Question 3 on August 13, 2024.

  California Proposition 12

  The final regulations implementing Proposition 12 were published and entered into force on September 1, 2022. Among many provisions, the regulations required covered producers to be certified as Proposition 12-compliant as of January 1, 2024.

  The regulation mandates prescriptive space requirements for calves and breeding pigs: 43 square feet of usable floor space for calves and 24 square feet for breeding pigs. For breeding pigs, the regulation also mandates specific limitations on the use of breeding stalls (that is, sow not confined to a stall for more than 6 hours in a 24-hour period or for more than 24 hours in a 30-day period). It also requires that all eggs sold in California come from cage-free hens. The rule exposes companies in California to potential criminal penalties and the threat of civil lawsuits if the space requirements are not met.

  The provisions applying to veal calves and egg-laying hens were not the subject of the U.S. Supreme Court challenges, and were enforced September 1, 2022. Regarding breeding pigs, enforcement started on July 1, 2023.

  Few farms in the U.S. or Canada currently meet the requirements for breeding pigs or veal calves. Limitations on the use of breeding stalls appear incompatible with current artificial insemination practices used by many operations in the industry. The rule will result in significant additional infrastructure costs and related certification and traceability costs throughout the value chain for products destined for the California market, or destined for the U.S., with the possibility of ending up in California. Negative impacts are also to be expected in the veal industry. Egg supply chains already differentiate between cage-free and conventional eggs.

  Massachusetts Question 3

  In 2016, Massachusetts voters approved Question 3 — An Act to Prevent Cruelty to Farm Animals. In 2021, the state released the proposed rule to implement the act before a final rule was apparently released in 2022.

  Unlike California, the Massachusetts regulation does not prescribe minimum space requirements for pigs and veal calves but prescribes similar limitations on the use of breeding stalls. The regulation appears to

  • prohibit in-state farmers from causing any covered animal to be "confined in a cruel manner" and
  • prohibit the sale of covered products derived from covered animals "confined in a cruel manner" within the state, whether this was produced in-state or elsewhere

  "Confined in a cruel manner" is being defined as confining "a calf raised for veal or a breeding pig in a manner that prevents the animal from lying down, standing up, fully extending the animal's limbs or turning around freely."

  While the Massachusetts regulation is less stringent than California's Proposition 12, many swine herds in Canada confine their gilts and sows to gestation stalls/crates, although to different extents. Further, the Massachusetts regulation, similar to California's regulation, provides an exemption for the end of the gestation period and the nursing of piglets, it does not appear to provide a lot of latitude to confine animals for significant lengths of time following breeding. Canada's Code of Practice (for the care and handling of pigs) allows sows and gilts to be confined in stalls for up to 28 days after breeding.

  Since the release of the proposed rule in 2022, there has been some uncertainty surrounding the regulation, including regarding provisions on transshipment. Following pressure from the National Pork Producers Council, in May 2024, the Massachusetts Department of Agricultural Resources released an updated FAQ document, which clarified that ground and comminuted pork would be exempt from these regulations. The document also clarified that there is a temporary exemption of transshipment obligations, pending litigation against the state.

  Background — voluntary product of USA labelling

  On March 18, 2024, the U.S. Government published a final rule on its voluntary Product of United States of America (PUSA) labelling requirements for meat, poultry and egg products.

  Under the final rule, the authorized claims "Product of USA" or "Made in the USA" or a U.S. flag may be displayed on labels of U.S. Food Safety and Inspection Services-regulated products only if the product is derived from animals born, raised, slaughtered, and processed in the U.S.. The final rule also applies to processed products, which must meet the above-mentioned criteria, have all other inputs (except spices and other flavorings) grown and processed in the U.S. and also have the preparation and processing steps for the processed products, taking place in the U.S. This is a significant departure from the current rule that allowed "Product of USA" or "Made in the USA" to be displayed on meat products that are "processed" in the U.S.

  [REDACTED]

  Also in March 2024, the USDA published draft guidelines for the implementation of voluntary labelling of products with U.S. Origin Claims. The guidance document and the option to use qualified claims (for example, claims depicting specific step(s) taking place in the U.S. such as "slaughter and processed in the US") do not address Canada's concerns that the rule could lead to discrimination and segregation of animals and products.

  As of January 1, 2026, and going forward, establishments choosing to or forced to use the voluntary claim will have to comply with the new labelling regulations and have sufficient documentation in place to demonstrate compliance.

  This change could negatively impact Canada's meat and livestock sector because it would likely require traceability and segregation of Canadian cattle, hogs, and meat products throughout the supply chain. However, the voluntary nature of this rule makes it challenging to predict impacts to Canada given that it will depend entirely on uptake.

  This differs from the U.S.'s mandatory COOL rule, which Canada successfully litigated at the World Trade Organization (WTO) for beef and pork products, as COOL applied to all covered products sold in the U.S.

  Canada is working closely with industry and provinces to monitor the impacts on our meat and livestock supply chains, and engaging with U.S. officials at all levels, when appropriate. We understand that large retailers and processors in the U.S. are reviewing the final rule before making labelling decisions. With a compliance date of January 1, 2026, it could take some time before potential impacts materialize.

  [REDACTED]

  [REDACTED]

  In its advocacy, Canada must be mindful of longstanding voluntary "Product of Canada" label guidelines that have similar requirements for meat as the new US rule (with the exception for beef feeder cattle residency of 60 days) and that have not resulted in complaints or concerns from trading partners.

  Background — pork and beef reference pricing and greater transparency

  This topic is on the forward agenda of the House of Commons Standing Committee on Agriculture and Agri-Food. The motion highlights concerns over reliance on U.S. reference prices, potential distortions in the supply chain and the need for fair revenue distribution.

  Canada lacks a mandatory system for live hog/pork and cattle/beef price reporting, unlike the U.S., where such data is publicly available. As a result, Canadian prices are often referenced from U.S. markets.

  Price transparency remains a concern for producers, who face challenges accessing consistent domestic data on wholesale meat values. Efforts to establish a Canadian hog pricing system in 2019 stalled due to industry complexity and limited processor participation.

  For beef, AAFC collected boxed beef pricing data from 2015 to 2020, supporting smaller abattoirs and market assessments. Reporting ceased in March 2020 due to COVID-19 and confidentiality concerns. Attempts to resume data collection in 2021 were unsuccessful, as processors sought broader participation or mandatory reporting.

• Supporting the agricultural sector

  • The agricultural sector is critically important to feed the country and the world in a sustainable way. It is also a key driver of Canada's economy, contributing significantly to its GDP, employment and exports.
  • Federal, provincial, and territorial governments are investing $3.5 billion over the 5-year (2023 to 2028) Sustainable Canadian Agricultural Partnership to strengthen and grow the sector.
  • This is in addition to other programs and continued support through our business risk management programs, which provide protection against income and production losses, and help producers manage risks that threaten the viability of their farm operations.

  When pressed

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

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

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

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

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

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

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

  The Government of Canada is taking concrete actions to support growth in the Canadian agricultural sector.

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

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

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

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

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

  Industry can also leverage the Canada Brand to ensure that Canadian products are increasingly recognized in international markets, strengthening Canada's reputation as a reliable supplier of a diverse range of quality, sustainable and innovative products. Over the last year, we assisted hundreds of companies through our market development programming, with over 200 of them entering new markets. We continue to work hand-in-hand with provinces and industry stakeholders to solidify Canada's position for long-term success.

  How is the Government addressing labour challenges in the sector?

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

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

  The Government has also implemented a 3-year Recognized Employer Pilot, under the Temporary Foreign Worker Program, to test streamlined processes, be more responsive to labour market shortages and reduce the administrative burden for repeat employers who demonstrate a history of program compliance. Although new applications are no longer accepted, recognized employers can still access the simplified Labour Market Impact Assessment and benefit from a validity period of 36 months for applications that received a positive decision. The Government of Canada will evaluate the pilot's efficacy upon its conclusion in 2026.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  In addition, Budget 2023 announced $57.5 million over 5 years and $5.6 million ongoing to establish a foot and mouth disease vaccine bank and to develop response plans.

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

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

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

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

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

  A more diverse and inclusive sector can provide significant benefits for innovation, competitiveness and sustainable economic growth. The Government recognizes that there are many challenges facing Indigenous Peoples and other underrepresented and marginalized groups in participating in the agriculture and agri-food sector.

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

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

  Background — supporting the agricultural sector

  Sustainable Canadian Agricultural Partnership (Sustainable CAP)

  This $3.5-billion, 5-year agreement (2023-2028) injects $500 million in new funds, representing a 25% increase in the cost-shared portion of the partnership. Under the cost-shared envelope, federal, provincial and territorial (FPT) governments agreed in principle and subsequently implemented the $250 million Resilient Agricultural Landscape Program to support ecological goods and services provided by the agriculture sector.

  Advance Payments Program

  To ensure that Canadian farmers have access to the cash flow needed to continue producing food and supporting national food security, the Government increased the $100,000 interest-free limit on loans temporarily under the Advance Payments Program to $250,000 in 2022, to $350,000 in 2023 and to $250,000 in 2024, representing a total savings of $175.1 million for producers over the 3-year period (2022 to 2024).

  Year-over-year volatility has created cumulative pressures for farms, most of which are farm families facing inflation of household expenses as well. On March 7, 2025, the interest-free limit for loans under the Advance Payments Program was temporarily set at $250,000 for the 2025 program year.

  Participating producers could save up to $5,000 in interest costs. This change will represent estimated savings of up to $65 million for over 13,000 producers.

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

  Biofuel markets

  Canola oil is a key feedstock for the production of biomass-based diesel (that is, biodiesel and renewable diesel). AAFC recognizes that the canola value chain is facing challenges accessing its largest export markets and that biofuels can help create new domestic demand and reduce export related risks.

  However, Canadian biofuel producers are at risk due to new changes in U.S. subsidies and policy. As a result of these changes, many Canadian facilities are idling or shutting down. The loss of this sector would deepen Canada's reliance on biofuel imports from the U.S. and dampen demand for domestic agricultural feedstocks like canola.

  On September 5, 2025, the Government of Canada announced a Biofuels Production Incentive as a time-limited program that will provide over $370 million over 2 years to support the stability and resiliency of domestic producers of biodiesel and renewable diesel. This incentive will be provided on a per-litre basis to Canadian producers of biodiesel and renewable diesel and will be available from January 2026 to December 2027 for up to 300 million litres per facility. Natural Resources Canada will provide more details about the program in the coming weeks.

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

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

  AgriStability

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

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

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

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

  Trade and market access

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

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

  In December 2024, the Government concluded free trade negotiations with Indonesia, a G20 country and Southeast Asia's largest economy, with a population of 279 million and GDP of close to $1.9 trillion in 2023. In February 2025, the Government concluded negotiations with Ecuador, securing preferential treatment for Canada's key agricultural exports, including grains, oilseeds, cereals, meat, pulses, processed foods and sugar-containing products. The Government is also engaged in active free trade negotiations with the Association of South East Asian Nations (ASEAN), as well as the accession of Costa Rica to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with a view to help grow and diversify Canada's trade. Canada has also announced exploratory talks with the Philippines for a bilateral trade agreement.

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

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

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

  The Government of Canada released the Indo-Pacific Strategy in November 2022, covering 5 strategic objectives across various sectors. It is a comprehensive plan with an initial investment of approximately $2.3 billion over 5 years to strengthen relationships and advance Canada's commitment to a free, open and inclusive Indo-Pacific, with ASEAN at its core.

  Under the strategy, the Indo-Pacific Agriculture and Agri-Food Office, established in February 2024, contributes to a whole-of-government approach to foster and strengthen economic partnerships in the region and help position Canada as a preferred supplier. By advancing market access, market development and regulatory and technical collaboration activities, the office supports Canadian exporters in finding new opportunities to diversify their exports, in a region representing significant opportunities for the agriculture and agri-food sector. The office focuses its efforts on 6 priority markets for agriculture in the region — the Philippines, Indonesia, Vietnam, Malaysia, Singapore and Thailand — to diversify Canada's agri-food trade.

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

  Labour

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

  In Budget 2022, the Government of Canada launched a 3-year Recognized Employer Pilot (REP) under the Temporary Foreign Worker Program to help address labour shortages and reduce the administrative burden for repeat employers who demonstrate a history of complying with program requirements. Under REP, eligible employers gain access to Labour Market Impact Assessment (LMIA) validity periods of up to 36 months, and a simplified LMIA application should they need to hire additional workers from the same occupation during the Pilot. Although applications to participate in REP closed on September 16, 2024, recognized employers can still access a simplified LMIA.

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

  The Agri-Food Pilot, which let experienced non-seasonal workers in specific agri-food positions immigrate permanently to Canada, ended on May 14, 2025, and cannot be extended beyond this date. Facilitating transitions from temporary worker to permanent residency is a dominant feature of Canada's immigration system and several pathways to permanent residence remain: Category-based selection under Express Entry includes agriculture and agri-food as a priority category; the Provincial Nominee Programs give provinces and territories the ability to create dedicated streams based on their economic needs; the Atlantic Immigration Program is an employer-driven program that aims to attract skilled immigrants to Atlantic Canada to address demographic and economic needs and increase retention in the region; and the Rural and Francophone Community Immigration Pilots which were launched in January 2025 help 18 rural and Francophone minority communities attract and retain newcomers with the right skills to their regions.

  Extreme weather, including drought and wildfires — Business Risk Management Support

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

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

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

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

  Environment and climate change

  Since 2021, the Government of Canada has announced over $1.5 billion in funding to advance climate change mitigation in the sector. This includes $185 million over 10 years for the Agricultural Climate Solutions: Living Labs Program; $704.1 million over 6 years for the Agricultural Climate Solutions: On-Farm Climate Action Fund; $429.4 million over 7 years for the Agricultural Clean Technology-Adoption and Research and Innovation Streams and the Research and Innovation Accelerator Pilot; $12 million over 4 years for the Agricultural Methane Reduction Challenge; and $150 million in federal contributions for a Resilient Agricultural Landscape Program under the Sustainable Canadian Agricultural Partnership. Together, these programs aim to create an enabling environment for the accelerated development and adoption of climate smart beneficial management practices and technologies.

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

  Supply chains

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

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

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

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

  African Swine Fever

  Canada Border Services Agency (CBSA) and the CFIA have taken concrete actions to prevent the spread of African Swine Fever (ASF) from affected countries to Canada, as an outbreak would devastate the pork industry. Federal and provincial governments and industry have collaborated to create the Pan-Canadian ASF Action Plan, which identifies priority activities under 4 framework pillars: prevention and enhanced biosecurity, preparedness planning, ensuring business continuity, and coordinated risk communications.

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

  In March 2025, the Government of Canada announced a commitment of up to $567 million to support hog producers should there be a closure of key export markets for Canadian pork products and live pigs due to an ASF outbreak in Canada or the United States. The funding will be available to hog producers at the onset of an ASF outbreak and the subsequent 12 months. AAFC continues to work collaboratively with provinces and territories to develop and implement agreements ahead of an ASF outbreak, and to secure the provinces' 40% share to support the sector.

  Foot and mouth disease vaccine bank for Canada

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

  While Canada has access to 312,000 doses of vaccine from the North American Foot and Mouth Disease Vaccine Bank, it falls well below the estimated 1.9 million to 2.7 million doses required to control a large outbreak. Funding provided through Budget 2023 will enable CFIA to secure a strategic reserve of 30 million doses of FMD vaccines to protect Canada's livestock industry against large and uncontrolled FMD outbreaks. By not securing this stockpile, Canada would be at a disadvantage given the now heightened global demand. This vaccine bank will help protect Canada from the emerging threat of this disease, maintain public confidence in the Canadian food supply, and help mitigate prolonged market disruptions to trade should an outbreak occur.

  Avian influenza

  Avian influenza (AI) is a contagious viral infection that can affect several species of food-producing poultry as well as pets, wild birds, and mammals, including cattle. AI viruses can be classified into 2 categories based on the severity of the illness caused in poultry: low pathogenicity (LPAI) and high pathogenicity (HPAI) forms.

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

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

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

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

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

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

  Indigenous Peoples' food security

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

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

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

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

  Sector diversity

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

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

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

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

• Business Risk Management (BRM) and non-BRM programs

  • The Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a 5-year, $3.5-billion investment by federal, provincial and territorial governments to support and grow Canada's agriculture and agri-food sector.
  • This includes a commitment to expand market opportunities for producers, strengthen the resiliency of the food system, and encourage diversity and inclusion in the sector.
  • Under the Sustainable CAP, Agriculture and Agri-Food Canada continues to work with provinces and territories to make business risk management programs more effective for producers and to support greater resiliency within the sector.
  • Producers have access to the full suite of federal-provincial-territorial business risk management programs to help them manage production losses, severe market volatility, extreme weather events and disasters.

  When pressed

  How is the government responding to requests for fundamental BRM program improvements?

  AAFC and its provincial and territorial counterparts recognize that BRM programs are the first line of defence for producers and that it is critical that they are working for the entire sector. They have agreed to continue to prioritize work to ensure BRM programs are timely, responsive, and predictable to help producers manage business risks.

  How is AAFC helping farmers with increased costs and the impact of U.S. and Chinese tariffs under business risk management?

  To support producers navigating significant pressure and uncertainty, the interest-free limit for the Advance Payments Program was once again increased from $100,000 to $250,000 for the 2025 program year. This change is expected to provide an additional $5,000 in interest savings to 13,000 producers for a total savings of up to $65 million this program year.

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

  Also, under Sustainable CAP, starting in 2023, the AgriStability rate was increased from 70% to 80% to provide more support to farmers in times of need. Moreover, in July 2025, federal, provincial and territorial (FPT) governments agreed to additional support through AgriStability including increasing the compensation rate from 80% to 90% and doubling the current payment cap to $6 million for the 2025 program year.

  How do Sustainable CAP and BRM programs address the environment and climate change?

  The Sustainable CAP plays an important role in supporting the agriculture and agri-food sector by contributing to reductions in greenhouse gas (GHG) emissions, adapting to climate change and continuing to ensure a sustainable path for economic growth.

  Central to having a more significant focus on climate change is the establishment of the Resilient Agricultural Landscape Program, a $250 million investment by FPT governments which will support on-farm adoption of environmental beneficial management practices that reduce GHG emissions and increase carbon sequestration. Additionally, under Sustainable CAP, all provinces have agreed to spend at least 12.5% of their total spending on activities that specifically support GHG emissions-reducing and carbon sequestration activities.

  With regard to BRM programs, AAFC officials are conducting a BRM Climate Review that is looking at how climate change could impact future BRM payments, AgriInsurance premiums, and how BRM programs could encourage climate action.

  Program officials are also working to pilot AgriInsurance premium rebates for producers who adopt practices that have environmental benefits and also reduce production risks. And as of 2025, the largest producers need to have a valid agri-environmental risk assessment to receive the government contribution in AgriInvest.

  How is Sustainable CAP Cost-Shared Programming supporting the Canadian agriculture sector?

  The Sustainable CAP is a 5-year, $3.5-billion federal–provincial–territorial investment, including $1 billion in federal programs and $2.5 billion in cost-shared initiatives (60:40 federal to PT). It is designed to strengthen Canada's agriculture, agri-food and agri-based products sector through innovation, growth, and sustainability. Provinces and territories have flexibility to design cost-shared programs aligned to regional needs within 5 priority areas: Climate Change and Environment; Science, Research and Innovation; Market Development and Trade; Building Sector Capacity, Growth and Competitiveness; and Resiliency and Public Trust.

  Sustainable CAP sets ambitious economic targets of $250 billion in sector revenues and $95 billion in export revenues by 2028. To help achieve these goals, cost-shared PT programs are advancing market diversification and export readiness, while also growing the domestic market and strengthening the competitiveness of the industry through strategic investments. This includes supporting clean technologies and on-farm practices that meet evolving market requirements; investing in food processing and the value-added sector to spur growth and innovation; advancing science and innovation to boost productivity; and enhancing assurance systems to build resiliency and public trust. Together, these initiatives position the sector for success at home and abroad.

  As part of the increase of $500 million in funding compared to the previous FPT framework, governments introduced the Resilient Agricultural Landscape Program (RALP), a new $250-million cost-shared program — $150 million federal and $100 million provincial/territorial funds — that uses an ecological goods and services payment approach to support on-farm adoption of beneficial management practices that reduce GHG emissions and increase carbon sequestration.

  How is AAFC supporting the agricultural sector's competitiveness and trade diversification efforts?

  Under Sustainable CAP, the AgriMarketing Program's budget is $129.97 million over 5 years (from 2023 to 2028). The program aims to increase and diversify exports to global markets and seize market opportunities via industry-led promotional activities to differentiate Canadian products and producers, by leveraging Canada's reputation for high-quality and safe food. A wide range of agricultural sectors are supported, and a higher cost-share ratio is offered as an incentive to encourage diversification in emerging markets in the Indo-Pacific Region.

  On September 5, 2025, the Government announced that it is providing the AgriMarketing Program with an additional $75 million over 5 years, starting in 2026–27. This investment is separate from Sustainable CAP funding and is intended to help sectors that have been affected by trade barriers, such as canola producers, to better manage future risks by diversifying their markets and exports. These new funds would be targeted to help exporters pivot to enhance more effective regional promotional strategies to target new consumer segments in non-traditional and emerging markets, such as Africa and the Middle East, and help the sector reinforce Canada's reputation as a safe and reliable supplier of high-quality, sustainable agricultural products.

  Background — Business Risk Management (BRM) and non-BRM programs

  Sustainable CAP programming

  The Sustainable CAP is a $3.5-billion, 5-year agreement (April 1, 2023, to March 31, 2028), between the federal, provincial and territorial governments to strengthen the competitiveness, innovation and resiliency of the agriculture, agri‐food and agri‐based products sector.

  The agreement includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities funded by federal, provincial and territorial governments.

  This 5-year agreement will inject $500 million, representing a 25% increase in the cost-shared portion of the partnership.

  Under the cost-shared envelope, FPT governments agreed to a $250 million Resilient Agricultural Landscape Program to support ecological goods and services provided by the agriculture sector.

  Federal programs and activities under Sustainable CAP

  Federal programs and activities are national in scope and represent a $1 billion investment over 5 years.

  Federally delivered programs include: AgriScience, AgriInnovate, AgriDiversity, AgriCompetitiveness, AgriAssurance and AgriMarketing.

  Sustainable CAP federal programs and activities include a greater focus on priority areas such as:

  • Science, research and development of innovative technologies and practices that address sector and government research priorities;
  • Supporting science, research and development of transformative solutions that can contribute to the Government of Canada's 2030 and 2050 emissions targets; and,
  • Market diversification, including activities in the Indo-Pacific region; marketing green products; and supporting inclusive trade.

  Key changes to the programs since the last framework include:

  • Greater focus on environmental priorities;
  • Better cost-share and/or stacking ratio for underrepresented groups;
  • Design changes to help incentivize small enterprises, start-ups and emerging innovators;
  • Greater emphasis on impacts and performance measurement; and,
  • The launch of the Grants and Contributions Digital Platform solution for end-to-end online program administration.

  Cost-shared strategic initiatives under Sustainable CAP

  Cost-shared strategic initiatives are a joint undertaking whereby both federal and provincial/territorial (PT) governments provide funding for programming that is designed and delivered by PTs.

  These initiatives represent a $2.5-billion investment over 5 years: 60% federally funded ($1.5 billion) and 40% PT funded ($1 billion).

  The main objective is to provide the PT governments with flexibility to meet regional priorities and resolve issues while contributing to broader national outcomes that are developed collaboratively among federal, provincial and territorial governments.

  Funding will be allocated among the 5 priority areas identified in the Guelph Statement:

  • Climate Change and Environment;
  • Science, Research, and Innovation;
  • Market Development and Trade;
  • Building Sector Capacity, Growth, and Competitiveness; and,
  • Resiliency and Public Trust.

  Key changes to the programs since the last framework include:

  • Introduction of the $250-million Resilient Agricultural Landscape Program;
  • PT governments agreed to a level of proportionate spending of at least 12.5% of cost-shared funds to support GHG emissions-reducing and carbon sequestration activities; and,
  • Increased emphasis on understanding programming impact through improved data sharing, results reporting and a commitment to contribute to measurable outcomes.

  Additional funding

  On September 5, 2025, the Government announced $75 million over 5 years to enhance the AgriMarketing Program, starting in 2026–27. This funding is separate from Sustainable CAP, and will support sectors most affected by market access barriers and trade tariffs for greater alignment with Canada's Indo-Pacific Strategy, shifting focus beyond traditional export destinations like the U.S. and China.

  Business Risk Management programs

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

  The programs are cost-shared 60:40 (federal–provincial-territorial) as outlined in the Sustainable Canadian Agricultural Partnership (Sustainable CAP).

  The AgriStability program is a whole-farm program designed to support producers who have experienced a margin decline of more than 30% for reasons such as production loss, increased costs and market conditions. On average, FPT governments pay producers $422 million through AgriStability each year.

  In July of 2025, FPT Ministers of agriculture announced several enhancements to AgriStability for the 2025 program year, including increasing the payment limit and compensation rate.

  As part of the Sustainable CAP, ministers also agreed to implement a new model for AgriStability that is simpler, timely and more predictable. Working with provinces and territories, a more streamlined approach was developed. It allows reference margins to be calculated based on how producers file their taxes (cash or accrual accounting), and offers a new coverage notice and more timely payments to producers. This new model is being offered as an option for producers and has been implemented in the jurisdictions where AAFC administers the program (Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador, Yukon and the Northwest Territories) in the 2024 program year. AAFC officials are working with the remaining provinces to support their efforts to offer some or all of these elements on an optional basis during the Sustainable CAP.

  Finally, beginning in the 2026 program year, jurisdictions will have the option of adopting a new valuation methodology for significant commodities grown and used on farm (for example, feed). This is expected to better align program payments with disaster years.

  The AgriInvest program allows producers to save a portion of the proceeds from their annual net sales, with a matching government contribution up to a maximum of $10,000 annually, to help manage smaller income declines. FPT governments contribute approximately $278 million annually to AgriInvest accounts.

  Since Sustainable CAP came into effect in April 2023, several changes in the BRM suite are being implemented. The AgriStability compensation rate increased from 70 to 80% beginning in the 2023 program year, increasing support to farmers up to $72 million per year. In addition, as of 2025, producers with allowable net sales (ANS) of at least $1 million are required to have a valid agri-environmental risk assessment in order to receive an AgriInvest government contribution.

  The AgriInsurance program helps to stabilize producer income by minimizing the economic effects of production losses caused by severe but uncontrollable natural hazards. It provides premium subsidy support, both federal and provincial, largely to crop producers, averaging over $1.3 billion per year since 2018, which represents approximately two-thirds of all BRM contributions.

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

  The Advance Payments Program (APP) is a federal loan guarantee program which provides agricultural producers with easy access to low-interest cash advances. Under the program, producers can obtain cash advances of up to $1 million based on the expected market value of their commodities, thus helping them meet their financial needs, including input costs, over their production and marketing cycle.

  To ensure that Canadian farmers have access to the cash flow needed to continue producing food and supporting national food security, the Government increased the $100,000 interest-free limit on loans temporarily under the APP to $250,000 in 2022, to $350,000 in 2023 and to $250,000 in 2024, representing a total savings of $175.1 million for producers over the 3-year period (2022 to 2024).

  On March 7, 2025, it was announced that the interest-free limit was also temporarily increased to $250,000 for the 2025 program year. Participating producers could save up to $5,000 in interest costs. This change will represent estimated savings of up to $65 million for over 13,000 producers.

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

• Food prices and food security

  • The Government of Canada understands that food prices remain a critical issue for Canadians and is committed to ensuring that every family across Canada has access to fresh, nutritious, and affordable food.
  • We will continue to support innovation and make investments in agriculture, fisheries, agrifood, and the food supply chain.
  • We also remain committed to supporting and promoting Canadian products and will continue to help consumers more easily identify Canadian products when making purchases at the grocery store.
  • These efforts build on previous actions that the Government has taken, including amendments to the Competition Act, to strengthen our food systems, and continued work on the Food Price Data Hub.

  When pressed

  How much will food prices increase due to the tariffs and what is the government doing to help Canadians through this?

  We recognize that U.S. tariffs have created a period of significant uncertainty. We are committed to supporting farmers, businesses and Canadians to weather these shocks and will continue to provide robust economic support programs.

  Canada's economy relies on exports, and we count on imports to provide us with food that cannot be produced here. Given this, tariffs may cause food prices to increase for a wide range of products, and impacts will differ from product to product. In addition to Canada's robust economic support programs available to help businesses and workers adjust to these shocks, the Government is launching a more than $6-billion aid package for businesses impacted by the tariffs and relaxing some employment insurance rules to help workers.

  Do Canadians need to be worried about food supply?

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

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

  Grocery price inflation slowed to 2.2% in 2024, down from the recent high of 9.8% in 2022. It is now within the target range, and our government remains committed to ensuring a fair, transparent and competitive marketplace to make life more affordable for Canadians.

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

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

  The Government eliminated the consumer carbon tax, ensuring that Canadians can keep more of their hard-earned money.

  The Government of Canada is committed to ensuring that every family across Canada, including in the North, has confidence that they have access to fresh, nutritious, and affordable food.

  Also, the $1-billion National School Food Program, launched in the 2024 Budget, is expected to provide meals for up to 400,000 kids each year and save the average participating family with 2 children around $800 per year in grocery costs.

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

  Background — food prices and food security

  Food price inflation

  Consumer price inflation reflects the final price consumers pay, including discounts and taxes. According to the latest monthly Consumer Price Index data for August 2025, price increases for food purchased from stores (groceries) was 3.5%, above headline inflation (+1.9%). Restaurant price inflation was 3.3%.

  Year-over-year inflation varied across categories, including eggs (+3.7%), dairy (+1.7%), bakery products (+1.1%), fresh fruit (-1.1%) and fresh vegetables (-2.0%). Price changes varied across meat products, with higher inflation for beef (+12.7%) compared to pork (+5.7%), processed meat (+5.3%) and chicken (+4.4%). Price increases for edible fats and oils have continued to decline (-10.4%) after their consistent double-digit inflation over the past 3 years.

  Grocery price increases varied across the country. Across the provinces, prices grew the slowest in Manitoba (+3.1%) and Ontario (+3.2%). Prices rose the most in Prince Edward Island (+4.2%) and New Brunswick (+4.1%). For the territorial capitals, prices grew faster in Yellowknife (+3.4%) than Whitehorse (+2.8%) and no data is available for Iqaluit.

  As of July 2025 (latest comparable data), Canada's grocery inflation was 3.3%, above the G7 average (+3.2%). Grocery (food) inflation was lower in France (+1.8%), United States (+2.3%), and Germany (+2.8%). Over the same period, grocery inflation was higher in Italy (+3.9%), United Kingdom (+4.9%), and Japan (+8.2%).

  Food price dynamics and monitoring

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

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

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

  Food Price Data Hub

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

  Previous actions related to grocery affordability

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

  • Temporary GST/HST break from December 14, 2024, to February 15, 2025, making virtually all food, as well as purchases at restaurants, tax-free.
  • Addressing shrinkflation through the Office of Consumer Affairs, which launched research projects to investigate price inflation and harmful business practices.
  • Amending the Competition Act to enhance competition, including in the grocery sector, by giving power to the Competition Bureau to crack down on unfair practices.
  • Launching a National School Food Program, to provide meals for up to 400,000 kids each year and fund infrastructure to support school food programming.
  • Investing further in the Food Policy for Canada to strengthen Canada’s food systems including $62.9 million over 3 years to renew and expand the Local Food Infrastructure Fund.

  Food insecurity in Canada

  Food insecurity is the inability to acquire or consume an adequate diet quality or sufficient quantity of food or the uncertainty that one will be able to do so due to income. According to the 2023 Canadian Income Survey, 25.5% of people (10.0 million) reported living in food insecure households in 2023–24, up from 22.9% the previous year. Food insecurity is higher in the territories, with 37.4% of the population reporting food insecurity. Food Banks Canada's HungerCount 2024, a point in time snapshot, reported over 2 million food bank visits in March 2024, up 6% from March 2023 and up 90% from March 2019. About 40% of food bank visits were by those receiving provincial social assistance as their main source of income, while employed clients accounted for a record high 18%.

  Standing Committee on Agriculture and Agri-Food

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

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

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

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

  Key provision requires the framework:

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

  Displaying unit pricing

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

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

  Previous private member's bill

  In June 2024, NDP MP Alistair MacGregor tabled Private Member's Bill C-406, An Act to establish a national framework to improve food price transparency, which is identical to the current PMB C-226.

  Current legislative status

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

  Innovation, Science and Economic Development Canada is conducting detailed analysis to determine the full implications of the operationalization of the bill. A position paper and key messages will be shared with AAFC in the coming weeks.

• Pesticide regulation concerns

  • We understand that having access to varied and effective crop protection tools is one of the keys to a farmers' success.
  • We fully recognize the importance of crop protection products and are actively working with provinces and territories to help farmers overcome the challenges associated with pest control.
  • Farmers work diligently to ensure good stewardship practices around the use of pesticides.

  When pressed

  What is Agriculture and Agri-Food Canada doing to support farmers that require access to minor use pesticide products?

  The Government recognizes that one of the keys to a farmers' success is having access to varied and effective tools to protect their crops and continues to work with provincial, territorial and industry partners to address the challenges around pesticide management.

  Which is why the Government continues to support the implementation of the Federal, Provincial and Territorial Pesticide Management Plan.

  What is the Government doing to protect farmers from the devastating effects of Richardson Ground Squirrels (RGS) following the loss of strychnine?

  Due to concerns for human and environmental safety, strychnine is no longer available to control ground squirrels.

  We continue to work with provinces and industry to find an integrated and innovative strategy to prevent future losses and damage to crops, done by ground squirrels.

  What is Agriculture and Agri-Food Canada (AAFC) doing to reach the COP15 pesticide-related risk reduction target?

  AAFC supported the development of Canada's Nature Strategy which reflects Canada's contributions to meeting the agreed global target, including the pesticide-related risk reduction target.

  The Government has also allocated funding to support research of alternative pest management solutions and facilitating their adoption.

  What does Canada think of the EU's approach to pesticides?

  Canada has strongly pressed the EU to recognize there is no 'one-size-fits-all' model for sustainable production.

  Canada has also strongly advocated for the EU to adopt a risk-based approach outlining the importance of supporting strong international supply chains founded on science-based rules in the current geopolitical context.

  Background — pesticide regulation concerns

  Pesticides and the PMRA

  Pesticides (insecticides, fungicides, and herbicides) are essential tools for producers to secure crop yield and quality each season. Health Canada's Pest Management Regulatory Agency (PMRA) is responsible for registering pesticides for use in Canada. Registered pesticides are re-evaluated every 15 years. Their prevalence in agriculture and media linkages to environmental and human health have raised the profile of these products within the general public.

  As part of the assessment process prior to the registration of a pesticide, Health Canada must determine that the consumption of the maximum amount of residues expected to remain on food products when a pesticide is used according to label directions will not be a concern to human health. This maximum amount is then legally established as a maximum residue limit (MRL) under the Pest Control Products Act. Enforcement of these MRLs is conducted by the Canadian Food Inspection Agency under the Food and Drugs Act and associated regulations.

  PMRA transformation

  On August 4, 2021, in response to public concerns regarding the increase or establishment of MRLs for several pesticides, including glyphosate, the previous ministers of Health, Environment and Climate Change, and Agriculture and Agri-Food, announced a pause on proposed increases to MRLs until spring 2022, as well as the transformation of the PMRA.

  On June 20, 2023, next steps were announced the in the ongoing pesticide regulatory transformation agenda. This included the gradual lifting of the pause of increases to MRLs for pesticides in Canada. Although some MRLs have been increased, the pause has not yet been lifted for glyphosate. Glyphosate is the most used pesticide in the world and makes up for more than half of all agricultural pesticides sold in Canada every year. Due to its popularity, glyphosate is both the most produced and studied product, while being at the center of the very polarized debate on pesticides.

  The agricultural sector has relayed its concerns with the non-scientific nature of the MRL pause and is eager to see MRL increases for glyphosate.

  Budget 2024

  As part of the federal government's 2024 Budget, $39 million over 2 years (2024–25 and 2025–26) was earmarked for "sustainable pesticide management". The majority of these funds were allocated to Health Canada's PMRA, and approximately $6.7 million over 2 years will be dedicated to AAFC's Science and Technology Branch to continue the work and initiate new research in emerging areas of science to develop novel pest control solutions.

  Reducing PMRA red tape and adding an economic lens to its mandate

  As the Government of Canada conducts its Red Tape Review, Agricultural stakeholders, including CropLife Canada, have requested that the PMRA review or cease many of its current approaches and activities, especially those related to the transformation. This request also included a review of their proposed fee increase as stakeholders highlighted their concerns with the current political, economic and trade instability.

  The federal government committed to adding an economic lens to pesticide regulations, while also protecting environmental and human health. AAFC will continue to engage with PMRA on how this commitment will be operationalized.

  Advocacy against the loss of strychnine

  Strychnine has been the pesticide of choice for producers in Alberta and Saskatchewan for controlling Richardson's Ground Squirrel (RGS). However, on March 4, 2020, PMRA cancelled the use of strychnine for the control of RGS due to primary and secondary poisonings of non-target mammals.

  Many industry groups and the provinces of Alberta and Saskatchewan have shared their concerns with the PMRA and AAFC on the decision to ban strychnine. They have outlined this pest's impacts on producers and producers' ability to manage the spread of RGS.

  AAFC does not possess any scientific expertise in this area; this capacity lies with the provinces and academia. However, AAFC could support provincially led research in this area through cost-shared funds from the Regional Collaborative Partnership Program under the Sustainable Canadian Agricultural Partnership (SCAP). This program aims to increase co-operation among provincial and territorial governments to address agricultural priorities that extend beyond their own jurisdiction, but that are not quite national in scope.

  This program could therefore be used to address pest issues that cross provincial boundaries, such as RGS. AAFC would welcome a joint Alberta-Saskatchewan proposal that seeks to collaborate on innovative, cross-border approaches to managing RGS.

  FPT working group

  From July 19 to 21, 2023, federal, provincial and territorial (FPT) ministers discussed the agriculture and agri-food sector's key issues during their annual conference. The importance of lambda-cyhalothrin was raised during the conference and Ministers agreed to create an FPT working group to explore the challenges of pesticide management.

  A summary of the working group's discussions and recommendations to improve regulatory outcomes were summarized in a public report. The working group's report was presented in February 2024 to FPT ministers, and its recommendations obtained unanimous support. The group was also asked to develop an action plan to implement its recommendations. Officials from the have been actively engaged in the work that the FPT working group has initiated, and there has been good FPT collaboration on this important file.

  An update from the FPT working group on the action plan deliverables is being planned for the next agricultural ministers meeting in September 2025.

  While FPT ministers endorsed the FPT Pesticide Management Action Plan in 2024, several PTs pushed for greater action, including the development of a new ministerial working group. This was noted in the 2024 annual conference communique.

  This ministerial working group is a PT-led initiative. Saskatchewan and Ontario have been leading the development of a terms of reference for this group. AAFC has reviewed these draft terms of reference, which position this as a voluntary, time-limited group that would meet about twice per year to hear updates from officials on issues as raised and on the advancement of the Pesticide Management Action Plan.

  In the coming weeks, AAFC expects Saskatchewan and Ontario to send a call-out to other provincial ministers to invite them to participate in this working group. AAFC's level of participation has yet to be determined.

  Working group request from l'Association des producteurs maraîchers du Québec (APMQ)

  Starting in 2024, to help counter the loss of Betamix™, an important herbicide for beet growers, the Ministère de l'Agriculture, Pêcheries et Alimentation du Québec (MAPAQ) submitted or sought to submit various emergency registrations with the PMRA. This included a request for Spin Aid™.

  PMRA has denied these emergency registration attempts and Quebec beet growers have voiced their displeasure. According to the industry association representing them, l'Association des producteurs maraîchers du Québec (APMQ), the current lack of herbicides affects the overall viability of beet growing.

  This issue is further compounded by the fact that U.S. beet growers can use Spin Aid™.

  The APMQ's current advocacy efforts prioritize the lack of access to pest control products. The APMQ has requested the creation of a working group with the PMRA, AAFC and MAPAQ. PMRA has agreed to this APMQ request. AAFC will manage this working group and is awaiting on PMRA to name their representative.

  They have also denounced the lack of resources for the Pest Management Centre (PMC). The PMC is currently exploring all means of optimizing efficiency within its current funding envelope in order to continue supporting Canadian growers of minor crops by generating data for the registration of new minor uses of pesticide.

  UN Convention on Biological Diversity COP15

  At its 15th meeting of the Conference of the Parties (COP15) in December 2022, parties to the UN Convention on Biological Diversity agreed on a historic global biodiversity framework to safeguard nature and halt and reverse biodiversity loss.

  The agreement, the Kunming-Montreal Global Biodiversity Framework, includes a commitment to reduce the risk from pesticides on the environment but does not represent a mandatory reduction in pesticide use (target 7). At a resumed session of the 16th Conference of the Parties (COP 16.2) in February 2025, parties agreed to allow a choice between 2 options for the global indicator for the pesticides risk reduction commitment, based on a country's national circumstances and availability of a methodology. Industry has raised concerns over one of the proposed indicators, which they have said focuses on pesticide use, instead of risk.

  The Government of Canada will be reviewing both indicator options for feasibility of reporting and suitability to reflect the environmental risks in Canada.

  Canada's 2030 Nature Strategy reflects Canada's contributions to meeting the agreed global target and outlines that AAFC will provide guidance on pathways to improve environmental outcomes of pesticide application through beneficial management practices and precision agriculture technologies.

  The European Union's approach to pesticides uses

  On February 6, 2024, the President of the European Commission, Ursula von der Leyen, announced plans to withdraw from the Sustainable Use Regulation.

  The EU had aimed to halve the use of the chemicals by 2030 as part of its Green Deal aimed at tackling climate change, which included a ban on the use of pesticides in many areas, including public parks, gardens, schools and sports fields. The Green Deal ultimately became a "symbol of polarization." The February 2024 shift in policy direction was announced in the context of mounting pressure from farmers' protests across Europe, including France, Germany, Belgium, the Netherlands, Poland, Greece and Spain.

  On February 19, 2025, the EU Commissioner for Agriculture, Christophe Hansen, released his Vision for Agriculture and Food, aiming to balance sustainability, food security and farmer concerns, which emphasized stronger alignment of global production standards. Crucially, it calls for a "fairer global level playing field," including restrictions on imports that use pesticides banned in the EU for health or environmental reasons. This could act as a non-tariff barrier for Canadian agriculture exports if our approved pesticide use diverges from EU rules. Canada is closely tracking this issue and advocating that there is no one-size-fits-all approach to sustainable production.

• Climate change mitigation

  • The Government of Canada is committed to mitigating climate change to ensure a sustainable and resilient future for Canadian agriculture.
  • Farmers are responsible stewards of the land, and government support helps them build on their progress and meet Canada's climate goals.
  • Since 2021, $1.5 billion in funding has been announced to help the agriculture sector mitigate and adapt to climate change, including support for on-farm practices and technologies that reduce emissions and build resilience.

  When pressed

  How is the Government supporting climate change mitigation in the agriculture sector?

  Since 2021, the Government has announced over $1.5 billion to help the agriculture sector mitigate and adapt to climate change. Programs like Agricultural Climate Solutions — Living Labs, On-Farm Climate Action Fund and the Agricultural Clean Technology Program support the adoption of on-farm practices and technologies that cut emissions and build resilience.

  The $3.5-billion, 5-year Sustainable Canadian Agricultural Partnership (Sustainable CAP) aims to cut greenhouse gas emissions by 3 to 5 megatonnes. Sustainable CAP includes the $250-million Resilient Agricultural Landscape Program, cost-shared with provinces and territories, to help producers conserve and enhance resilient landscapes.

  Budget 2022 invested $100 million in research on sustainable agriculture and climate change through the Sustainable Agriculture Research Initiative, led by Innovation, Science and Economic Development in collaboration with Agriculture and Agri-Food Canada. This research supports transformative solutions for a sustainable, resilient, and profitable agriculture sector in a net-zero economy.

  What actions has the Government taken to reduce methane emissions from the agriculture sector?

  Canada is committed to cutting methane emissions by 30% by 2030 under the Global Methane Pledge. Our methane strategy is driving down emissions across sectors, including agriculture.

  The Agricultural Methane Reduction Challenge is investing $12 million in made-in-Canada solutions to cut cattle methane. 13 innovators were announced in Summer 2024 and are already advancing prototypes to reduce enteric methane from cattle.

  Environment and Climate Change Canada is developing several protocols under Canada's GHG Offset Credit System, including ones that could support methane emissions reductions in the agriculture sector such as the Reducing Enteric Methane from Beef Cattle and the Manure Methane Emissions federal offset protocols.

  What is the Government doing in response to nitrous oxide emissions from synthetic fertilizer application?

  Canada has set a 30% fertilizer emissions reduction target by 2030, focused on cutting emissions, not fertilizer use. Farmers will be supported with voluntary measures that reduce emissions while protecting yields and profitability.

  Since 2021, the Government has announced over $1.5 billion to help farmers adopt practices and technologies that improve nutrient management. Through Sustainable CAP, producers have access to cost-shared programs that enhance nutrient use efficiency.

  AAFC research is driving new tools, practices and technologies to reduce emissions in crop and livestock production. Canada helped launch the Efficient Fertilizer Consortium, partnering internationally to advance next-generation fertilizers.

  In 2023, a Fertilizer Emissions Reduction Working Group brought experts together to explore solutions and provide recommendations for a collaborative path forward.

  Background — climate change mitigation

  GHG sources and sinks in agriculture

  Agriculture contributes approximately 10% of Canada's total GHG emissions through crop production, animal production, and on-farm fuel use. Agricultural emissions are primarily driven by biological processes, such as

  • nitrous oxide emissions from nitrogen fertilizers and manure
  • methane emissions from livestock feed digestion
  • fossil fuel combustion in farm machinery and equipment

  The sector also has significant potential to act as a "carbon sink" through the adoption of land management practices that increase soil carbon storage by removing it from the atmosphere, which can help offset emissions from other sources.

  Environment and climate change programming

  Since 2021, the Government has announced over $1.5 billion in funding to help the sector mitigate and adapt to climate change. This includes

  • $185-million Agricultural Climate Solutions — Living Labs
  • $704.1-million Agricultural Climate Solutions — On-Farm Climate Action Fund
  • $429.4-million Agricultural Clean Technology Program
  • $12-million Agricultural Methane Reduction Challenge

  Climate change and the environment is one of 5 priority areas under the $3.5-billion, 5-year Sustainable CAP, which aims to reduce GHG emissions by 3 to 5 megatonnes over its duration. This is supported through the $250-million FPT cost-shared Resilient Agricultural Landscape Program and other region-specific programs to scale up the adoption of emission-reducing practices.

  Fertilizer emissions reduction target

  In December 2020, the Government released its strengthened climate plan, A Healthy Environment and a Healthy Economy, which outlines a number of measures to reduce GHG emissions across the economy. This includes setting a national fertilizer emissions reduction target of 30% below 2020 levels by 2030 and working with fertilizer manufacturers, farmers and provinces and territories to develop an approach to meet it. The target does not mandate a reduction in the amount of fertilizer that can be used on Canadian farms but rather is designed to build on progress farmers have already made in reducing emissions and applying fertilizers more efficiently.

  Canada's GHG offset credit system

  Canada's GHG offset credit system is designed to encourage cost-effective domestic emissions reductions and removals from activities that go beyond business as usual and are not required by regulation. Protocols under development for the agriculture sector include reducing enteric methane emissions from beef cattle, reducing manure methane emissions and enhanced soil organic carbon. These protocols are being developed with input from technical expert teams, which include AAFC scientists and analysts.

  In December 2023, a draft 'reducing enteric methane emissions from beef cattle' federal offset protocol was published for a 60-day public comment period, which concluded on February 6, 2024. The protocol is intended for proponents undertaking a project to reduce enteric methane emissions in confined beef cattle feeding operations through improved management, diet reformulation, the use of feed additives, growth promoters or other innovative strategies.

  Additionally, a draft reducing manure methane emissions protocol was published in February 2025, for a 60-day public comment period, ending on April 29, 2025. The intent of this protocol is to create opportunities for farmers, livestock operation owners and other project developers to implement projects that treat liquid manure with one or more manure treatment systems to reduce methane emissions.

• Environmental resilience

  The Government is committed to a resilient agriculture sector that can adapt to climate change, grow sustainably and keep feeding Canadians and the world.

  We're working with farmers and partners to build resilience through science, innovation and on-farm support. That means climate-resilient crops, smarter water use, healthier soils and stronger biodiversity.

  Through the Sustainable Canadian Agricultural Partnership, governments at all levels are united in tackling climate change, cutting emissions, protecting the environment and supporting sustainable growth in agriculture.

  When pressed

  What is the Government of Canada doing to enhance the environmental resilience of the sector, including adapting to the impacts of climate change?

  The Government supports farmers through the Sustainable Canadian Agricultural Partnership (Sustainable CAP), which funds beneficial practices and technologies to manage environmental risks and adapt to climate change.

  Agriculture and Agri-Food Canada's (AAFC) research focuses on soil health, drought-resilient crops, water and biodiversity management as well as tools to help producers adapt. Programs like Agricultural Climate Solutions — Living Labs bring farmers and scientists together to test and share solutions.

  In 2023, Canada launched its first National Adaptation Strategy, which has specific objectives for agriculture and a framework to track progress.

  What is the Government of Canada doing to enhance sustainable water management in the agriculture and agri-food sector?

  Through Sustainable CAP, cost-shared programs help farmers adopt practices that protect water resources and improve climate resilience. AAFC also conducts research on sustainable water management and provides data like the Canadian Drought Monitor to support producers.

  The new Canada Water Agency leads federal freshwater efforts, including the Freshwater Action Plan with $650 million over 10 years. AAFC is working closely with the agency to strengthen water security in agriculture.

  What is the Government of Canada doing to protect biodiversity in the agriculture and agri-food sector?

  Farmers are key stewards of biodiversity, which supports soil health, pollination, pest control and climate adaptation. Under its Strategic Plan for Science, AAFC prioritizes biodiversity research and maintains extensive biological collections for crops and livestock. Through Sustainable CAP, farmers are supported to adopt practices like shelterbelts, cover crops, wetlands and riparian restoration that enhance biodiversity.

  What is the Government of Canada doing to protect soil health?

  Soil health is a priority for AAFC. Research and collaboration with partners support practices that reduce erosion, boost organic matter and store carbon. In 2024, the Government endorsed many recommendations from the Senate's Critical Ground report on soil health. AAFC is working with the Soil Conservation Council and partners to develop a National Agricultural Soil Health Strategy.

  Internationally, Canada contributes to the United Nation Convention to Combat Desertification and the Global Soil Partnership, supporting global soil sustainability.

  Background — environmental resilience

  AAFC collaborates with provinces and territories through 5-year, federal-provincial-territorial (FPT) agricultural policy frameworks to support agriculture sector stakeholders in the responsible stewardship of Canada's agricultural land and environment:

  • Sustainable Canadian Agricultural Partnership (Sustainable CAP) — a 5-year (2023-28), $3.5-billion agreement, including $500 million in new funds. This includes delivery of the $250-million federal–provincial-territorial cost-shared Resilient Agricultural Landscape Program to help producers conserve and enhance the resiliency of agricultural landscapes.

  Additional investments outside of Sustainable CAP to support the agriculture sector in reducing greenhouse gas emissions that also have the potential to produce environmental co-benefits to support climate adaptation, soil health, biodiversity, and water include:

  • Agricultural Climate Solutions: On-Farm Climate Action Fund — a $200-million, 3-year fund (2021-2024), with an additional $470 million announced in Budget 2022 over 6 years (starting in 2022–23), to support farmers in adopting beneficial management practices in 3 areas: nitrogen management, cover cropping and rotational grazing practices. Budget 2023 announced an additional $34.1 million over 3 years, starting in 2023-24, to support adoption of nitrogen management practices by eastern Canadian farmers that will help optimize the use and reduce the need for fertilizer.
  • Agricultural Climate Solutions: Living Labs — a $185-million, 10-year program (2021 to 2031) to establish a strong, Canada-wide network of living labs, bringing together farmers, scientists and other sector partners to co-develop, test and monitor beneficial management practices on working farms to reduce Canada's environmental footprint and enhance climate resiliency.

  In June 2024, the Senate Committee on Agriculture and Forestry released a new report titled "Critical Ground: Why Soil is Essential to Canada's Economic, Environmental, Human, and Social Health". It provides an overview of the critical role of soil in mitigating climate change, contributing to biodiversity and putting food on tables. The report makes 25 recommendations to the federal government to work with the Canadian agriculture sector, as well as municipal, provincial, territorial and Indigenous governments, to tackle soil degradation and preservation. The Government released a response to the Senate report in November 2024, generally supporting the broad, positive approach taken by the committee and endorsing many of the recommendations. In June 2025, Bill S-230 was tabled in the Senate, requiring the Minister of Agriculture and Agri-Food to develop a national strategy to support and promote soil health across Canada, in collaboration with other federal ministers, other levels of government and stakeholders from across the sector.

• Grocery Code of Conduct

  Canada needs a grocery code of conduct to bring more fairness, transparency and stability to our grocery sector and supply chain.

  After years of work and unprecedented collaboration, I am pleased to see that the work to implement Canada's first-ever grocery code continues to advance.

  The office supporting the grocery code is now operational with full code implementation and enforcement to be in place by January 1, 2026.

  Our government will continue to support industry's efforts to implement the Grocery Sector Code of Conduct to ensure Canada has a resilient supply chain that benefits everyone.

  When pressed

  When will the Grocery Sector Code of Conduct be implemented?

  This is an industry-led process, and industry representatives have stated their intent for the code to be fully implemented and enforceable by January 1, 2026.

  All major retailers continue to express their intention to sign on to the code, and final stage discussions are ongoing in advance of full implementation.

  How will governments support the implementation of the grocery code?

  Following agreement from all major retailers to participate in the industry-led Grocery Sector Code of Conduct, ministers of agriculture agreed to provide $1.2 million in short-term funding to support the Office of the Grocery Sector Code of Conduct.

  The principles and implementation details of the industry-led grocery code have been negotiated by industry separate from government.

  However, the federal Government will continue to monitor progress towards implementation of the grocery code and actively engage with the provinces and territories.

  Will a grocery code of conduct impact food prices?

  Many factors influence the prices consumers pay for food, including the international trade environment, labour costs, transportation, climate change and supply chain inefficiencies.

  This is why it is extremely difficult to draw a direct link between any grocery code of conduct and increases or decreases in the price of food.

  While a grocery code will not directly affect food affordability, it will improve predictability, transparency and fair dealing in supply chain relationships, ultimately benefitting consumers.

  Will compliance with the grocery code be enforceable?

  Industry will be responsible for the implementation of the grocery code, including the signing on of members and the development of a dispute resolution mechanism. This will ensure that retailers and suppliers work together to promote fair and ethical trading and contractual certainty.

  While participation is voluntary, we are encouraged by the commitment from all major retailers to join the grocery code.

  The continued participation of all major grocers and suppliers is vital to its success.

  Why is the Government not imposing a mandatory code of conduct?

  We continue to believe that collaboration around an industry-led solution will yield the best outcome for the sector. The issues at stake are very complex and need to consider a wide variety of considerations and perspectives.

  Experience in other countries demonstrates that the process takes time. The UK code began as a voluntary code before evolving into a mandatory code over 10 years.

  Background — Grocery Sector Code of Conduct

  In November 2020, FPT agriculture ministers agreed to create a federal–provincial-territorial (FPT) working group to clarify the impact of certain retail practices and explore potential solutions benefitting the entire food value chain. In July 2021, key findings of the FPT working group were presented to ministers and released publicly. FPT ministers called on industry to develop consensus on a proposal for a code of conduct and an approach to dispute resolution to improve predictability, transparency and fair dealing in supplier–retailer relations.

  In August 2021, an Industry Steering Committee composed of key industry leaders was established and provided periodic updates to FPT ministers. A draft proposal for a grocery code of conduct with a supporting office became public in May 2023, and was used to conduct a broad industry consultation. A draft code was submitted to the government in December 2023, but industry was not able to achieve a consensus at that time.

  On July 18, 2024, industry confirmed that organizations across the supply chain, including all key suppliers, many regional and local independent grocers, and Canada's 5 largest grocery retailers committed to joining the Grocery Sector Code of Conduct. Industry is aiming to fully implement the grocery code by January 1, 2026.

  Following agreement from all major retailers to participate in the industry-led code, Ministers agreed to provide $1.2 million in short-term funding to support the Office of the Grocery Sector Code of Conduct.

  On January 9, 2025, the Office of the Grocery Sector Code of Conduct announced the appointment of Karen Proud as the organization's first President and Adjudicator, starting on March 17, 2025. Ms. Proud has extensive leadership experience in the retail and manufacturing sectors. She was President and CEO of Fertilizer Canada and previously held executive roles at Food, Health and Consumer Products of Canada and the Retail Council of Canada.

  The grocery code is not expected to address concerns over rising food prices. However, it is expected to improve supply chain predictability, transparency and fair dealing.

  Implementation of a code has been recommended in multiple standing committee reports since 2021 and the Competition Bureau Retail Grocery Market Study of 2023.

• Food waste

  Cutting food waste saves Canadians money and helps protect the environment.

  The Government of Canada is working with farmers, industry and consumers to find new ways to eliminate, reduce and repurpose food waste. Through collaborative efforts, we are accelerating cross-sector adoption of food waste solutions.

  We're investing in science and research to better understand where food loss happens and how to prevent it. $20 million was invested through the Food Waste Reduction Challenge to fund innovators creating new solutions to cut food loss and waste across the supply chain.

  Background — food loss and waste

  Every year, nearly half of Canada's food supply is discarded as it moves through the system, from farm gate to dinner plate, resulting in wasted energy and nutrients, labour, capital, and natural resources. This food loss and waste (FLW) imposes real economic, environmental, and social costs on Canadians, resulting in lost productivity in the food supply, reduced food availability and higher food prices for consumers and increased greenhouse gases emissions from landfills. Research published in 2024 estimates that:

  • A total 21.18 million tonnes of FLW is generated annually in Canada, equivalent to 46.5% of the total food supply.
  • Nearly half occurs in food processing and manufacturing (49%), followed by households (15%) and in storage/grading (12%). The remaining food waste occurs about evenly at preharvest (7%), distribution (5%), retail (5%), and foodservice (hotels, restaurants, institutions; 7%).
  • Avoidable FLW in the supply chain, from production to retail, accounts for 12% of food prices paid by consumers at retail.

  Federal approach to reducing food loss and waste

  Agriculture and Agri-Food Canada (AAFC) and Environment and Climate Change Canada have been leading federal efforts on FLW reduction, with some contributions from other federal departments and agencies. AAFC's Strategic Plan for Science supports research to advance food loss and waste reduction through the pillar of advancing the circular economy by developing value-added opportunities.

  AAFC partners with Public Services and Procurement Canada's GCSurplus program to donate surplus crops from its research centres. AAFC has over 20 research centres, as well as a number of associated farms where research and development activities are conducted in support of the Canadian agriculture industry. Until 2021, there was no way of donating surplus food from these crops. In 2021, AAFC's partnership with GCSurplus was launched, enabling the donation of fresh food from research centres to Food Banks Canada and Second Harvest for distribution to communities across Canada. Since 2021, we have donated a total of 143,000 pounds of food to communities in need.

  The $20-million Food Waste Reduction Challenge (AAFC, 2020 to 2024) provided funding for innovators that delivered novel solutions for reducing FLW across the supply chain. The challenge supported 42 organizations in advancing FLW solutions in areas such as artificial intelligence, mobile applications, upcycling to new foods or high value products and novel packaging and food treatment technologies to extend the shelf life of food.

  AAFC is also supporting the development of a national voluntary standard, and definitions for measuring FLW, being led by the International Standards Organization (ISO), Standards Council of Canada (SCC), and Canadian Standards Association (CSA). The CSA is seeking public input on a draft standard, including input from industry, governments and civil society. The comment period will close on October 5, 2025, and once the ISO, CSA, and SCC have reviewed feedback and achieve consensus on a draft, a National Standard of Canada will be published for use by the sector and stakeholders interested in measuring and monitoring FLW.

• Compensation for supply-managed sectors

  • The Government strongly supports supply management and has delivered on its commitment to provide full and fair compensation to producers and processors in the sector for the impacts of recent trade agreements.
  • In total, up to $4.8 billion is being made available to support dairy, poultry and egg producers and processors for the impacts of the Canada–European Union Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Canada-United States-Mexico Agreement (CUSMA).
  • The Government is committed to ensuring that the dairy, poultry and egg sectors remain strong and resilient.

  When pressed

  How much compensation is being provided to members of the sector?

  A total of up to $4.8 billion is being made available to support dairy, poultry and egg producers and processors for the impacts of recent trade agreements:

  • up to $3.2 billion for dairy farmers through the Dairy Farm Investment Program and the Dairy Direct Payment Program
  • up to $803 million for poultry and egg producers through the Poultry and Egg On-Farm Investment Program and the Market Development Program for Turkey and Chicken
  • up to $497.5 million for dairy, poultry and egg processors through the Dairy Processing Investment Fund and the Supply Management Processing Investment Fund
  • up to $333 million for dairy processors through the Dairy Innovation and Investment Fund

  The Dairy Processing Investment Fund closed on March 31, 2022, while the Dairy Farm Investment Program closed on March 31, 2023.

  What are the details of the CUSMA compensation?

  The Government is providing $1.75 billion in compensation to supply-managed sectors for the impacts of CUSMA, as follows:

  • up to $1.2 billion to Canadian dairy producers under the Dairy Direct Payment Program
  • up to $112 million to Canadian poultry and egg producers under the Poultry and Egg On-Farm Investment Program
  • up to $105 million to Canadian dairy, poultry and egg processors under the Supply Management Processing Investment Fund
  • up to $333 million to Canadian dairy processors under the Dairy Innovation and Investment Fund

  What are the details of the Dairy Innovation and Investment Fund?

  • The Dairy Innovation and Investment Fund will provide non-repayable contributions to Canadian dairy processors to help the sector modernize, replace and increase their capacity to process and market all milk components.
  • The Canadian Dairy Commission is delivering the Dairy Innovation and Investment Fund on behalf of Agriculture and Agri-Food Canada.
  • The Dairy Innovation and Investment Fund is the last step in fulfilling the Government's commitment to full and fair compensation for supply-managed sectors for the impacts of the recent trade agreements.

  Background — compensation for the supply management sector

  The Comprehensive Economic and Trade Agreement (CETA) was provisionally applied on September 21, 2017, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into force on December 30, 2018, and the Canada-United States-Mexico Agreement (CUSMA) entered into force on July 1, 2020. These trade agreements offer significant opportunities for the Canadian agriculture and agri-food sector, while creating some challenges due to new market access for supply-managed poultry, egg, and dairy products. In recognition of this, the Government committed to provide full and fair compensation to supply-managed sectors for the impacts of recent trade agreements. The Government worked closely with the sectors to develop the compensation approach.

  Current status

  The Government is delivering on its commitment to provide full and fair compensation for the impacts of CETA, CPTPP and CUSMA, which includes:

  • up to $3.2 billion for dairy farmers:
    • $250 million through the Dairy Farm Investment Program
    • $2.95 billion through the Dairy Direct Payment Program
  • up to $803 million for poultry and egg producers
    • $759 million through the Poultry and Egg On-Farm Investment Program
    • $44 million through the Market Development Program for Turkey and Chicken
  • up to $497.5 million for processors of supply-managed commodities:
    • $100 million through the Dairy Processing Investment Fund
    • $397.5 million through the Supply Management Processing Investment Fund
  • up to $333 million for the Dairy Innovation and Investment Fund
    • total funding includes up to $300 million provisioned through the 2022 Fall Economic Statement and up to $33 million in unclaimed Dairy Direct Payment Program funds for the last year of CETA/CPTPP programming and all years of CUSMA

  In total, the Government has announced up to $4.8 billion in compensation to supply-managed sectors for the impacts of the 3 trade agreements.

  Dairy Farm Investment Program (closed)

  The Dairy Farm Investment Program was a $250 million program launched to help Canadian dairy producers update farm technologies and systems, and improve efficiencies and productivity through upgrades to their equipment to compensate for the impacts of CETA. The six-year program began on 2017–18 and was extended to close on March 31, 2023, to accommodate producers impacted by COVID-19.

  Dairy Direct Payment Program

  The Dairy Direct Payment Program provides up to $2.95 billion over 10 years to cow milk producers to help them transition to new market realities due to recent international trade agreements. While there are no applications to complete under the program, producers must register by March 31 of each year for the program and indicate acceptance of the payment. These funds will give producers the flexibility to invest according to their individual needs. For example, from 2024 to 2029, an owner of a farm with 80 milking cows may receive a total direct payment of about $106,000 over 6 years. The program started in 2019 and ends March 31, 2029.

  Poultry and Egg On-Farm Investment Program

  The Poultry and Egg On-Farm Investment Program, announced in 2021, provides up to $759 million to support poultry and egg producers through on-farm investments that increase efficiency or productivity, respond to consumer preferences, or improve on-farm food safety, biosecurity or environmental sustainability. The program opened for applications on May 31, 2021, and ends March 31, 2031.

  Market Development Program for Turkey and Chicken

  The Market Development Program for Turkey and Chicken, announced in 2021, provides up to $44 million to national not-for-profit industry organizations working to improve the sectors’ market position, and has allocated up to $19 million for the Turkey Farmers of Canada and up to $25 million for the Chicken Farmers of Canada over a 10-year period. Funding will help increase domestic demand and consumption of Canadian turkey and chicken through industry-led promotional activities that differentiate Canadian products and producers, and leverage Canada’s reputation for high-quality and safe food. The continuous intake period for applications was launched on April 13, 2021, and ends March 31, 2031.

  Dairy Processing Investment Fund (closed)

  The Dairy Processing Investment Fund was an up to $100-million program aimed to increase the efficiency, productivity, and competitiveness of Canadian dairy processors and mitigate the impacts of international trade agreements. The four-year program began in 2017–18 and was extended to March 31, 2022, to allow recipients impacted by COVID-19 to complete their projects.

  Supply Management Processing Investment Fund

  The Supply Management Processing Investment Fund is an up to $397.5 million program that supports investments in dairy, poultry, and egg processing facilities to improve productivity and/or efficiency through the purchase of new automated equipment and technology. The program was launched in 2022 and ends March 31, 2028. Funding for the poultry and egg sector has been fully allocated. As of July 22, 2025, the program is no longer accepting new applications from these sectors.

  Dairy Innovation and Investment Fund

  The Dairy Innovation and Investment Fund will provide Canadian dairy processors with up to $333 million in non-repayable contributions to help the dairy processors’ efforts to invest in innovative solutions to facilitate the processing and utilization of all milk components. The program will support activities that help modernize, replace and/or increase processing capacity for all milk components. The program opened for applications on September 29, 2023, and is set to end on March 31, 2033, or until the funds run out.

• CPTPP and CUSMA dairy tariff rate quotas dispute

  • Canada takes its trade commitments seriously.
  • The Government defended supply management during the negotiations of these agreements and through all 3 dairy tariff rate quota disputes.
  • We always stand up for the Canadian dairy industry, the farmers, workers, and the communities it supports, and we will continue to do so.
  • As highlighted in the May 27, 2025 Speech from the Throne, this Government remains committed to maintaining, protecting and defending supply management.

  When pressed

  What is the ruling of the CPTPP Panel?

  Canada is very pleased with the overall findings of the Panel's report, which recognized that Canada has a margin of discretion in setting its tariff rate quotas (TRQs) allocation policies, including determining who is eligible to obtain an allocation.

  In May 2024, Canada published new CPTPP dairy TRQ allocation and administration policies, which include the removal of the pooling system and some administration changes.

  What are the details behind the settlement of the TRQ dispute with New Zealand?

  Canada has reached a mutually satisfactory solution with New Zealand to resolve the dispute.

  Officials have worked very closely with dairy sector representatives and the provinces throughout the process.

  The impact for Canada is limited to certain technical CPTPP TRQ administration changes. There are no changes in market access.

  These technical policy changes are limited to Canada's CPTPP TRQs and the parties to the CPTPP agreement.

  These changes will be published on October 1, 2025, for implementation beginning with the 2026 calendar year dairy TRQs.

  What is the ruling of the second CUSMA Panel?

  The panel ruled in Canada's favour on all claims made by the United States.

  Based on the panel's conclusion, Canada is not required to make any changes to its CUSMA dairy TRQ allocation measures.

  What are the expected next steps from the United States on the issue of dairy?

  The U.S. Administration, members of Congress and the dairy industry expressed disappointment with the second CUSMA dairy dispute findings.

  For CUSMA disputes, there is no appeal process.

  Canada is confident that our practices align with our obligations under CUSMA.

  Canada will preserve and defend its supply management system.

  Background — CPTPP and CUSMA dairy TRQs disputes

  CPTPP dairy TRQs dispute

  The final panel report in the dispute brought by New Zealand against Canada regarding the administration of Canadian dairy TRQs was made public on September 5, 2023.

  To implement the panel's findings, Global Affairs Canada held public consultations from February 6 to March 7, 2024, and published new CPTPP dairy TRQ policies on May 1, 2024. The implementation of the new policies began on August 1, 2024, marking the start of the 2024–2025 dairy year. These new policies include the removal of the pooling system (as was done for implementation following the first CUSMA dairy TRQs dispute), and some administration changes.

  These new policies generated significant negative reactions from New Zealand's government and industry.

  Detail on the panel's findings

  The CPTPP Panel found against Canada on 2 of the 6 claims. The panel ruled that Canada is in violation of its obligation to allow importers "the opportunity to utilize TRQ quantities fully", and that Canada's pools that reserve access to a percentage of each TRQ for dairy processors violate Canada's obligation to ensure that it does not "limit access to an allocation to processors". Also, the majority of the panel (2 of the 3 panelists) found 2 claims in Canada's favour: that Canada's exclusion of retailers from TRQ eligibility falls within Canada's discretion; and that Canada's measures do not introduce a "new or additional condition, limit or eligibility requirement on the utilization of the TRQ for the importation of a good". In light of its findings on other provisions, the panel deemed it unnecessary to make findings on the remaining 2 claims made by New Zealand on: whether Canada's procedures for administering TRQs are fair and equitable, and whether Canada ensures that each allocation is made, to the maximum extent possible, in the amount importers request.

  Detail on resolution of the dispute

  Pursuant to Article 28.20(1)(b) of the CPTPP, on October 17, 2024, New Zealand officially took the next step in the dispute by requesting that Canada enter into negotiations with a view to developing mutually acceptable compensation.

  Engagement on settling the dispute has led to Canada reaching a mutually satisfactory solution with New Zealand to resolve the CPTPP dairy TRQs dispute. This agreement, negotiated in close consultation with Canadian dairy stakeholders, will result in certain minor policy changes to Canada's TRQ administration, and does not amend Canada's market access commitments. These technical policy changes are limited to quotas administered under the terms of the CPTPP and will not negatively impact Canada's dairy industry or supply management. With these changes, New Zealand has confirmed that it will not take further action under the CPTPP dispute settlement process. These changes will be published by Global Affairs Canada on October 1, 2025, for implementation beginning with the 2026 calendar year dairy TRQs.

  CUSMA dairy TRQs disputes

  First CUSMA dairy TRQ dispute

  On January 4, 2022, the panel report was made public. The panel found that Canada's practice of reserving TRQ pools exclusively for the use of processors (including further processors) is inconsistent with CUSMA. The panel made no findings on the 3 other claims brought by the U.S., as the panel considered it was unnecessary to resolve the dispute.

  To comply with the panel's findings, Global Affairs Canada published new CUSMA dairy TRQ policies on May 16, 2022, following public consultations. The new policies ended the practice of reserving TRQ pools exclusively for processors and, instead, allocate to distributors, processors and/or further processors based on market share. These policies generated significant negative reaction from U.S. industry, U.S. Congress and U.S. Government, who expected more or different reforms to Canada's administration of its CUSMA dairy TRQs.

  Second CUSMA dairy TRQ dispute

  On January 31, 2023, the U.S. requested the establishment of a second dispute settlement panel on Canada's dairy TRQ policies under CUSMA. In this request, the United States made 4 overarching claims of violation under several CUSMA provisions, including the ineligibility of retailers and food service operators under the TRQs, the 12-month activity requirement, Canada's methodology for calculating TRQ allocations through market share, and TRQ return and re-allocation policies.

  The final panel report was made public on November 24, 2023, and ruled in Canada's favour on all claims. This outcome will have no impact on Canada's CUSMA dairy TRQ administration. Based on the panel's conclusion, Canada was not required to make any changes to its CUSMA dairy TRQ allocation measures. There is no appeal mechanism under CUSMA.

  The U.S. Administration, members of Congress and the dairy industry expressed disappointment with the second CUSMA dairy dispute ruling.

• Labour in the agriculture and agri-food sector

  • The agricultural workforce of the future needs the right mix of skills, youth, new entrants and under-represented groups. There are a number of programs that support the sector, including the Youth Employment and Skills Program and AgriDiversity Program.
  • International workers will continue to be an important part of the agricultural workforce. For example, the Rural and Francophone Community Immigration Pilots offer permanent residence to workers who want to work and settle in rural and more remote communities.
  • We are committed to strengthening the Temporary Foreign Worker Program to improve worker health and safety while helping employers meet their workforce needs. Consultations on a new foreign labour program for agriculture and fish processing are currently underway.

  When pressed

  What is the Government doing to protect temporary foreign workers?

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

  Budget 2023 reaffirmed our commitment to a safe and healthy work environment where employers are held accountable for the treatment of workers by providing $48 million to improve employer compliance. The Government also introduced open work permits for vulnerable workers for temporary foreign workers who are being abused or at risk of being abused in relation to their job in Canada. To better protect workers and address concerns of wage suppression, employers are required to annually review temporary foreign workers' wages to ensure they reflect increases to prevailing wage rates.

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

  How is the Government addressing labour shortages?

  The Government implemented a 3-year Recognized Employer Pilot, under the Temporary Foreign Worker Program, to test streamlined processes, be more responsive to labour market shortages and reduce the administrative burden for repeat employers who demonstrate a history of program compliance. Although the program is no longer accepting new applications, recognized employers can still benefit from a simplified Labour Market Impact Assessment.

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

  Provinces and territories are also taking action to address their workforce needs, with various initiatives underway. Some of the $25 billion in cost-shared funding made available through the Sustainable Canadian Agricultural Partnership can be used for labour and skills initiatives.

  What is the Government doing to facilitate transitions to permanent residency, especially now that the Agri-Food Pilot has ended?

  Facilitating transitions from temporary worker to permanent residency is a dominant feature of Canada's immigration system and the Government has already taken action to expand pathways to permanent residence for experienced temporary foreign workers in the agricultural sector. Other programs available to agri-food workers include federal high-skilled programs managed by Express Entry and regional economic immigration programs such as the Provincial Nominee Program, and the Atlantic Immigration Program.

  In addition, the Rural and Francophone Community Immigration Pilots will help rural and Francophone minority communities attract and retain newcomers with the right skills to help their regions. These pilots will provide 18 communities with a permanent residence pathway to attract and retain newcomers who can fill key jobs and who want to live long-term in these areas.

  How is the Government reforming the Temporary Foreign Worker Program?

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

  Last year, the Government began refusing to process Labour Market Impact Assessments in metropolitan areas with unemployment rates of 6% or higher. The cap on Temporary Foreign Workers was further reduced to 10% and the maximum duration of work permits for workers in the low-wage stream of the Temporary Foreign Worker Program was reduced from 2 years to 1. Primary agriculture and food processing occupations were exempted from the refusal to process and the cap reduction.

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

  Background — labour in the agriculture and agri-food sector

  Temporary foreign workers

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

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

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

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

  The SAWP includes a process for the transfer of workers between employers.

  Minimum job advertising requirements for all positions in the primary agriculture sector are suspended until December 31, 2025.

  A Recognized Employer Pilot project launched in August 2023 and allows eligible employers to gain access to LMIAs that are valid for up to 36 months. As of September 2024, new applications are no longer accepted but recognized employers can still access the simplified LMIA.

  Reforming the Temporary Foreign Worker Program

  On August 6, 2024, the Government noted its intention to reduce fraud, address compliance concerns and help limit the number of temporary residents.

  On August 26, 2024, the Government announced further changes to the low-wage stream of the Temporary Foreign Worker Program. As of September 26, 2024, the Government will refuse to process LMIAs in metropolitan areas with unemployment rates of 6% or higher. The cap will be further reduced to 10% and the maximum duration of work permits will be reduced from 2 years to 1.

  Primary agriculture and food processing occupations were exempted from the refusal to process and the cap reduction but will be subject to the reduced employment duration.

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

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

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

  Permanent immigration pathways

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

  Provincial Nominee Program (PNP) — Under PNPs, provinces and territories have the ability to create dedicated streams based on their economic needs.

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

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

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

  Worker protections

  Budget 2023 provided $48 million in funding over 2 years for ESDC to improve the employer compliance regime under the TFW Program, including more program inspectors and the maintenance of the worker protection tip line.

  The Government has committed to establishing minimum federal housing standards and requirements for TFWs. During summer 2025, ESDC conducted an accommodation compliance review, which included random inspections focused on employer-provided accommodations. The review aims to refine and strengthen accommodations assessments with the goal of establishing a baseline for compliance.

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

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

• United Kingdom accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

  • The CPTPP is a success story for Canadian agriculture and agri-food exporters, serving as a platform for access in thriving growth markets in the Indo-Pacific region.
  • The CPTPP, with the UK included, now accounts for roughly 15% of the global economy and approximately 580 million consumers.
  • Including another G7 economy to the CPTPP also offers an opportunity to reinforce its economic and geopolitical credibility, expand the reach of the Agreement's high standards and heighten its appeal to other economies.

  When pressed

  What is being done to address non-tariff barriers for beef and pork in the UK market?

  We will continue to advocate strongly for Canadian beef and pork in the UK market.

  We know beef and pork exporters continue to face important challenges in exporting to the UK market and are concerned with the current imbalance of trade for these products between Canada and the UK.

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

  What are the market access gains for Canadian agriculture in the UK accession to the CPTPP?

  While 98% of bilateral trade is duty-free under the Trade Continuity Agreement, Canada secured additional duty-free volumes into the UK for pork and beef, as well as unlimited access for some agricultural products, such as sweetcorn.

  How does the accession affect market access for supply-managed products from the UK?

  Consistent with the Government of Canada's commitment, we will not be providing additional market access for supply-managed products through this accession. Our government will always stand up for our dairy, poultry and egg farmers, and a strong supply management system in Canada.

  We will continue to honour the clear commitment to not provide any additional market access in our supply-managed sectors in any future trade negotiations.

  What is the status of bilateral negotiations with the UK?

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

  In January 2024, the UK paused negotiations with Canada towards a new bilateral agreement.

  We are committed to continuing to review this important bilateral trade relationship, including through the Economic and Trade Working Group.

  What is the current status of agri-food trade between Canada and the UK?

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

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

  During the same period, the Canadian agri-food and seafood trade balance with the UK has increased substantially to a surplus of CA$50 million, an increase of 17.7% from the same period in 2024.

  Background — CPTPP accession

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

  The UK was the first economy to formally submit its request to accede to the CPTPP. Subsequently, 7 other countries have formally requested accession to the CPTPP: China, Taiwan, Ecuador, Costa Rica, Uruguay Ukraine and Indonesia.

  Between March 12 and April 27, 2021, Canada held public consultations on a Canada–UK bilateral free trade agreement and the UK's possible CPTPP accession. Agriculture stakeholders raised a number of concerns with respect to sanitary and phytosanitary market access issues with the UK, including those impacting beef, pork, grains and oilseeds. In addition, Canada's dairy, poultry and eggs stakeholders requested that Canada not expand TRQ volumes beyond existing levels or otherwise agree to additional market accession concessions, such as reducing over-quota tariffs.

  CPTPP parties began accession negotiations with the UK on June 1, 2021, and announced substantial conclusion of those negotiations during a ministerial meeting on March 30, 2023.

  In parallel, Canada and the UK were negotiating a new bespoke trade agreement to better reflect our bilateral relationship. On January 25, 2024, the UK paused negotiations with Canada, citing concerns over market access for cheese and the expiring rules of origin provisions on origin quotas and extended cumulation with the EU, particularly for automobiles, which subsequently expired April 1, 2024, as the main factors in this decision. Since the pause in negotiations for the bilateral FTA in January 2024, there has been no formal resumption of negotiations.

  Through the UK's accession to the CPTPP, Canadian exporters will benefit from additional goods market access to the UK under the CPTPP compared to the Canada–UK Trade Continuity Agreement (TCA) via additional duty-free tariff rate quota volumes for beef and pork as well as immediate duty-free, quota-free access for sweetcorn. In addition, Canada will receive preferential treatment for poultry and eggs, which are excluded under the TCA.

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

  While ensuring that adherence to the obligations of the CPTPP SPS Chapter was a priority for Canada, other CPTPP parties prioritized issues other than SPS in the accession negotiations. Without a critical mass of support amongst the CPTPP Parties, it was not possible for Canada on its own to address SPS issues with the UK.

  On July 16, 2023, CPTPP parties officially signed the accession protocol for the UK to join the agreement during a ministerial signing ceremony in Auckland, New Zealand. To-date, the UK and all CPTPP parties, with the exception of Canada and Mexico, have completed domestic ratification procedures. On September 18, 2025, the Honourable Maninder Sidhu tabled the United Kingdom Accession Protocol to the Comprehensive Progressive Trans-Pacific Partnership (CPTPP) agreement in the House of Commons. Following the Policy on Tabling of Treaties in Parliament, the first step of the implementation process requires the Government to table the protocol in Parliament for at least 21 sitting days. This process will then be followed by the introduction of implementing legislation in the House of Commons.

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

  Beef and pork stakeholders (Canadian Cattle Association, Canadian Pork Council and Canadian Meat Council) initially raised significant concerns with the UK’s application of unjustified and unnecessary SPS measures, which they have retained from the EU, that prevent viable commercial access. In more recent engagement, meat stakeholders have indicated that they are seeking a commitment from Government that, as the UK accession moves forward, work will be ongoing to find wins for the industry in other markets.

• Bilateral agricultural trade with China

  • The canola sector is facing an unprecedented number of challenges linked to trade uncertainties with its 2 largest markets, the U.S. and China.
  • Canada's agriculture sector depends on a rules-based global trading system, which supports predictable market access and a level playing field. Canada is committed to defending the market access interests of the sector.
  • We are working with industry and provinces to support market diversification efforts and pursue new business opportunities around the world, including through our network of trade commissioners and Canada's Indo-Pacific Agriculture and Food Office.
  • While we continue to monitor policy developments, Canada will continue to engage China bilaterally and multilaterally to mitigate unjustified disruptions to trade.
  • Examples of recent high-level engagement include the Parliamentary Secretary to the Prime Minister and the Premier of Saskatchewan's mission to China as well as the Prime Minister's meeting with the Chinese Premier in September 2025.
  • The Government will always stand shoulder-to-shoulder with our farmers, producers and workers who export the finest products around the world

  When pressed

  What has been the Government's response to China launching its anti-dumping investigation on imports of Canadian canola seed?

  Canada's agriculture sector depends on a rules-based global trading system that provides reliable market access. Canada is committed to defending the market access interests of the sector.

  The Government of Canada appreciates the close collaboration with the Canadian canola sector and provinces following China launching an anti-dumping investigation on imports of canola seed from Canada. While a preliminary duty rate of 75.8% on imports of Canadian canola seed has been imposed, the investigation continues and is now entering its final stage. Canada will continue to participate actively in the case to demonstrate that imports of canola seed from Canada do not compete with China's rapeseed. We will always stand up for Canadian canola farmers, businesses, exporters and their communities and support their interests and success at home and in markets abroad.

  Canola is one of Canada's most valuable agricultural exports and an important driver of the economy. We remain committed to ensuring fair market access for our exporters, farmers and producers.

  What has been the Government's response to China's conclusion of its anti-discrimination investigation?

  The Government of Canada recognizes that Canadian industry stakeholders are impacted by the tariffs imposed by China.

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

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

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

  What is the Government doing to resolve other outstanding non-tariff related trade issues impacting agricultural exports to China?

  Canada continues to pursue every available opportunity, both at the bilateral and multilateral level, to press China to resolve current trade issues, respect international trade rules and base its regulatory decisions on scientific principles.

  As such, the Government continues to allocate significant resources, both in Canada and across China, to support Canada's engagement efforts with China to address trade irritants, promote Canadian products in-market and advocate for rules-based trade, including science-based regulatory decisions, to advance Canada's agricultural interests.

  Doing business with China is high-risk, and Canadian exporters are facing increasing challenges. The Government continues to encourage Canadian exporters to adopt appropriate risk mitigation and diversification plans.

  What is the Government doing to financially assist the sector?

  The agriculture sector is experiencing multiple challenges, including the tariffs imposed by China, trade uncertainty with the United States, and other risks like animal disease.

  In July 2025, federal–provincial-territorial ministers of agriculture reiterated their commitment to enhance the effectiveness of business risk management programs, which included increasing the AgriStability compensation rate from 80% to 90% and doubled the current payment cap to $6 million for the 2025 program year.

  On September 5, 2025, the Prime Minister announced a series of new, strategic measures to assist those sectors most impacted by tariffs and trade disruption, including the canola sector. These measures include:

  • New biofuel production incentives, providing more than $370 million over 2 years to assist domestic producers and restructure their value chains: To level the playing field and support Canada's biofuels sector, the Government intends to make targeted amendments to the Clean Fuel Regulations, introducing a time-limited production incentive for renewable diesel and biodiesel producers and work with provinces and territories to explore complementary measures.
  • Investment in Agriculture and Agri-Food Canada's AgriMarketing Program and trade diversification measures: The AgriMarketing Program supports targeted activities to promote Canadian agri-food products as safe, sustainable, and high quality, building Canada's reputation abroad. The Government is investing an additional $75 million over 5 years, starting in 2026–27 to expand the program into high-growth areas such as Africa, the Middle East, and the Indo-Pacific. This expansion will support sectors most affected by trade barriers, like canola, and aligns with Canada's Indo-Pacific Strategy, shifting focus beyond traditional trade partners like the U.S. and China.
  • Changes to the Advance Payments Program (APP): The APP, delivered by Agriculture and Agri-Food Canada provides Canadian farmers, including canola producers, with low-interest cash advances of up to 50% of the expected market value of eligible products. It helps farmers manage cash flow, avoid high-interest debt, and market strategically. Producers can access up to $1 million per year, with a portion interest-free, typically $100,000, which was increased to $250,000 in March 2025. To respond to ongoing trade uncertainty, especially affecting canola producers, who represent 41% of APP users, the Government is temporarily doubling the interest-free portion for canola advances. For the remainder of the 2025 program year and the 2026 program year, the interest-free limit will rise to $500,000.
  • The Government is also providing $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash-flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on. On August 19, 2025, Farm Credit Canada reiterated its support to the canola sector through this program.

  Background — bilateral agricultural trade with China

  Canada-China agricultural bilateral trade

  China is a priority market for Canadian exports of agricultural, agri-food, and fish and seafood products, and despite market access disruptions, China remains Canada's second largest export market for the sector, behind the United States. Canadian exports of agricultural, agri-food, and fish and seafood products to China were valued at $11.5 billion in 2023 and decreased to $9.6 billion in 2024, representing 9.4% of Canada's total agriculture, agri-food, and fish/seafood exports to the world. Key exports to China in 2024 were grains and oilseeds (for example, canola seed, barley, wheat, soya beans), fish and seafood, dried peas, pork products and animal feed (for example, canola meal).

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

  In 2024, canola seed exports to China totalled 5.9 million tonnes, representing about 68% of total canola exports to all markets. After China, Canada's largest canola seed export markets in 2024 were Japan, Mexico, the United Arab Emirates, and the U.S. The concentration in canola oil and meal is even greater, with 95.5% of canola oil heading solely to the U.S. and 99.7% of canola meal heading to the U.S. and China combined in 2024.

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

  The Canadian government is currently pursuing increased and regular political engagement with China to improve overall bilateral relations and create a favorable dynamic to discuss and resolve bilateral irritants.

  Recent high-level engagement includes meetings led by Prime Minister Carney and the Minister of International Trade with the Chinese Premier and Minister of Commerce, respectively, as well as the Deputy Minister-level Canada-China Joint Economic and Trade Commission meeting that took place in August 2025 in Ottawa and Parliamentary Secretary Blois and Saskatchewan Premier Moe's mission to China in September 2025.

  Most recently, PM Carney also met with the Chinese Premier at the 80th Session of the United Nations General Assembly. During the meeting, both leaders welcomed recent high-level engagements between both countries to recalibrate the trade relationship in a pragmatic and constructive way, and discussed respective sensitivities regarding certain issues, including agriculture and agri-food products and electric vehicles.

  Market access issues

  Canadian agricultural exports continue to be subjected to arbitrary trade actions and non-tariff barriers by China (such as unjustified sanitary and phytosanitary measures, lack of transparency), putting market access for Canadian agriculture, agri-food as well as fish and seafood exports at risk and adding significant costs and uncertainty for Canadian exporters. China's current measures against Canada include:

  Beef access: Since December 2021, Canadian beef exports to China remain halted due to China's BSE-related trade suspension following Canada's notification of an atypical case of BSE. In accordance with guidelines of the World Organization for Animal Health (WOAH), the detection and reporting of this atypical BSE case did not affect Canada's WOAH negligible risk status for BSE and should not have affected trade. Moreover, revised WOAH standards on atypical BSE adopted in May 2023 reaffirm that atypical BSE detections do not affect the BSE risk status of a country or zone. Despite Canada providing all the technical information requested, China has yet to provide timelines for the restoration of access. Canada continues to engage China to resume trade without further delays.

  Pet food: Since February 2022, Canadian exports of heat-treated dry pet food containing poultry ingredients remain halted due to China's Highly Pathogenic Avian Influenza (HPAI) trade-related restrictions following confirmation of HPAI in Canada. Canadian officials have stressed that China's restrictions are not consistent with its World Trade Organization (WTO) obligations, international guidance, and negotiated veterinary certificate, which does not specify that Canada must be recognized as free of HPAI. Canada continues to engage China to remove its restrictions without further delays.

  Chinese authorities have shown limited willingness to constructively engage on technical issues with Canadian officials to resolve and advance outstanding agricultural trade issues impacting Canadian exports. In some key trade issues, such as pet food, beef, pulses and oats, Canada's market access requests and submissions of technical data and/or official letters go unanswered by the General Administration of Customs of the People's Republic of China (China Customs), the CFIA's Chinese counterpart.

  Canadian officials continue to work closely with officials from like-minded countries to share information and experiences and develop common approaches with respect to raising concerns with China's measures at the WTO. China's approach to trade continues to shift in contradiction to established international trade rules, its WTO obligations, science-based trade and concerns by trading partners.

  China's actions in response to Canada's tariffs on Chinese EVs and steel and aluminum

  In August 2024, the Government of Canada announced a series of measures to level the playing field for Canadian workers and allow Canada's EV industry and steel and aluminium producers to compete in domestic, North American and global markets.

  This included the implementation of a 100% surtax on all Chinese-made EVs and a 25% surtax on imports of steel and aluminium products from China that became effective in October 2024.

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

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

  Anti-discrimination investigation

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

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

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

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

  Anti-dumping investigation on canola seed

  Canada is participating actively in China's anti-dumping investigation to help defend Canadian interests. This includes engaging with MOFCOM via the Canadian Embassy in Beijing, placing evidence on the record of investigation, responding to questions in the detailed questionnaire issued by MOFCOM and participating in a hearing with MOFCOM, where Canada was able to outline legal and factual matters related to the injury investigation.

  China's anti-dumping investigation should be completed within 12 months of the notice of initiation (September 2025), but it can be extended to 18 months under certain circumstances (March 2026). On August 12, 2025, MOFCOM announced that there was dumping of Canadian canola seed, and that China's domestic rapeseed industry suffered "substantial damage" as a result. MOFCOM announced the imposition of a single preliminary duty rate of 75.8% on imports of Canadian canola seed from all Canadian companies, effective August 14, 2025.

  On September 5, 2025, MOFCOM announced that it had extended the investigation period for its anti-dumping investigation into Canadian canola seed by 6 months. The investigation was set to conclude on September 9, 2025, and has now been extended until March 9, 2026.

• Clean Fuel Regulations

  • The Clean Fuel Regulations will accelerate the production and use of low-carbon fuels, including agricultural biofuels.
  • The production of low-carbon biofuels represents an important opportunity for farmers to find new customers for their products and will help the agricultural sector contribute to Canada's climate change commitments.
  • The regulations will drive demand for biofuels in Canada that are made from agricultural products like grains and oilseeds, wastes and residues.

  When pressed

  Will the Clean Fuel Regulations (CFR) increase costs to Canadian farmers?

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

  Are the Clean Fuel Regulations another 'carbon tax'?

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

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

  As outlined in Budget 2024, the Government of Canada will invest nearly $1.8 billion to support the growth of the biofuels industry in Canada.

  What about the sustainability of agriculture-based biofuels?

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

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

  Background — Clean Fuel Regulations

  Biofuels are an important source of market diversity for Canadian farmers, particularly for corn and canola. Biofuels create economic opportunities for the Canadian agricultural sector while helping mitigate climate change by reducing transportation-related greenhouse gas (GHG) emissions. Ethanol, biodiesel and renewable diesel are the main low carbon intensity liquid biofuels in commercial production today.

  Canadian production of grains and oilseeds was 86.9 million metric tons (MMT) in the 2023/24 crop year. According to AAFC estimates, about 6.7% of that total, or 5.8MMT of grains and oilseeds, went into Canadian biofuels production in 2023/24. Approximately 3.7MMT of corn (24% of production) and 0.5MMT of wheat (1.5% of production) were used to produce ethanol, while approximately 0.9MMT (4.7% of production) of canola and 0.7MMT (10% of production) of soybeans were used to produce biodiesel.

  In 2024, domestic biofuel production was approximately 1.8 billion litres of ethanol and 1.15 billion litres of biomass-based diesel. Market uncertainty has meant that, in 2025, many facilities have reduced capacity or are idling. In 2023, biofuel consumption in Canada increased significantly in part due to the CFR taking effect, increasing 25% in 2023, on top of the 20% increase in 2022. In 2023, Canada consumed approximately 4 billion litres of ethanol, 1.2 billion litres of renewable diesel and 531 million litres of biodiesel. Canada currently has limited production of renewable diesel, though multiple projects have recently come online. Canada imports more than 60% of its ethanol consumption, most of which is from the U.S.

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

  Agriculture and the Clean Fuel Regulations

  The Clean Fuel Regulations (CFR) were announced as part of the strengthened climate plan, A Healthy Environment and a Healthy Economy, on December 11, 2020, and were published in Canada Gazette, Part II, on June 21, 2022. Additional components of the strengthened climate plan include a $1.5 billion investment — led by Natural Resources Canada — in a Clean Fuels Fund to increase the production and use of low-carbon fuels. AAFC is also delivering $429.4 million over 7 years through the Agricultural Clean Technology Program — Adoption and Research and Innovation Streams to support research, development and adoption of clean technologies in the agriculture sector.

  Under the CFR, as of July 1, 2023, fossil fuel producers or importers are required to reduce the carbon intensity of liquid fuels they provide. The CFR uses lifecycle analysis to assess the carbon intensity of various fuels, with a view to incenting those that offer the deepest carbon reduction potential for the cost. The CFR is not a tax and is a market-based mechanism designed to spur innovation of clean technologies and expand the use of less polluting fuels throughout the economy. The actual price impacts will depend on the choices of oil refiners, who have the flexibility to find the most cost-effective and innovative approaches that work best for them, whether investing in cleaner production or more affordable fuels for their customers.

  There are 3 ways to comply with the CFR:

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

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

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

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

  Agricultural stakeholders have been engaged in the design of the regulations. Agricultural and renewable fuels stakeholders have advocated for the CFR to send a clear and direct demand signal for increased production of biofuels, including biodiesel derived from canola. Stakeholders are concerned about sustainability requirements for fuels and feedstocks called "Land Use and Biodiversity Criteria". This includes requirements to provide field-level GPS coordinates in declarations, that follow the feedstock through the supply chain from harvest to biofuel production. In November 2023, ECCC announced a compliance pathway to address these concerns for Canadian and U.S. agricultural feedstocks. The criteria came into force on January 1, 2024.

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

  Budget 2024: Securing the Canadian biofuels industry

  As outlined in Budget 2024, the Government of Canada will invest nearly $1.8 billion to support growing the biofuels industry including:

  • $776.3 million to retool the Clean Fuels Fund until 2029–30
  • up to $500 million per year from the Clean Fuel Regulations compliance payment revenues to support biofuels production in Canada.
  • at least $500 million invested by the Canada Infrastructure Bank in biofuels production under its green infrastructure investment stream.

  2025 Mandate Letter and Speech from the Throne

  The Prime Minister's Mandate Letter and 2025 Speech from the Throne each committed Canada to become the world's leading energy superpower in both clean and conventional energy. NRCan is leading efforts to develop options to achieve this commitment in collaboration with other federal departments, including AAFC and ECCC.

  The canola value chain is facing export market access challenges. Biofuels are an important source of market diversity for Canadian farmers, creating new domestic demand and reducing export related risks.

• Extreme weather

  • Across Canada, the agriculture sector continues to face significant impacts from extreme weather events, including severe droughts, wildfires and excess rainfall.
  • Our government is ready to support the sector in managing the impacts of weather events through a full range of programs and initiatives. This includes the suite of business risk management programs, as well as other tools.
  • In addition, the Government is working with provincial and territorial counterparts, and industry, to support adaptation to extreme weather, climate change mitigation, and overall greater resilience.
  • Initiatives such as the Sustainable Canadian Agricultural Partnership and ongoing research and development guided by Agriculture and Agri-Food Canada's Strategic Plan for Science are contributing to these efforts.

  When pressed

  What is the Government doing to prepare the sector for increased extreme weather in the future?

  The Government is engaged in a broad set of actions to support the sector in managing future conditions, including potentially increased instances and severity of extreme weather events.

  For example, the Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a $3.5-billion investment over 5 years by federal, provincial and territorial governments focused on key priorities including science and innovation, resiliency, and environment and climate change. The Sustainable CAP is one important way that the Government is helping position the sector to better face future challenges.

  In addition, we are reviewing the business risk management (BRM) suite to assess its interactions with climate risks and how the sector is addressing them, in consultation with provinces and territories.

  As part of the Strategic Plan for Science, increasing the resiliency of agroecosystems is one of four missions for the department. This mission enables outcomes like enhancing the resilience of the sector to a changing climate.

  Other initiatives include the renewal of the Emergency Management Framework for Agriculture, a national integrated and collaborative emergency management agreement with provincial/territorial colleagues.

  How is the Government addressing climate change through business risk management?

  The BRM suite already includes programming that can respond to extreme weather events, such as through the AgriInsurance Program and the AgriRecovery framework. Better integrating climate risk management and climate readiness into business risk management programs is a top priority. A BRM climate review is being conducted to look at how climate change could impact the BRM suite.

  Starting in 2025, the largest producers will need to have an agri-environmental risk assessment to receive the Government contribution in AgriInvest. We are also working with provinces to pilot AgriInsurance premium rebates for producers who adopt practices that have environmental benefits and reduce production risks.

  Aside from the BRM suite, the Livestock Tax Deferral (LTD) is another financial management tool for owners of breeding livestock in designated areas, who are forced to sell all or part of their breeding herd due to drought or excess moisture conditions, by providing a one-year tax deferral on part of the income from those sales. Beginning in 2024, the Government of Canada streamlined the process to identify regions for LTD earlier in the growing season and also instituted a buffer zone to adjacent regions to capture impacted farmers on the edges of affected regions.

  An initial list of prescribed regions was announced on August 18, 2025, including affected regions and buffer zones in Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, the Northwest Territories, and Yukon.

  Background — extreme weather

  Recent extreme weather events

  In 2024, extreme weather severely affected Canadian agriculture. Wildfires burned over 5.3 million hectares, including the Jasper wildfire. An October atmospheric river brought record rainfall to British Columbia, leading to flooding, debris flows and infrastructure damages. These events disrupted planting, harvesting and livestock operations, causing localized yield losses and higher production costs. In 2025, extreme weather, including one of Canada's worst wildfire seasons on record, severe drought across the Prairies, and hazardous smoke affecting air quality, continue to challenge agricultural production.

  Emerging risks and challenges

  The risk landscape for agriculture and agri-food is constantly evolving, and the factors that can lead to emergencies are increasingly complex and diverse.

  Climate change is expected to have a significant impact on primary agriculture production in Canada moving forward. AAFC's recent producer survey found that nearly 1 in 5 producers see climate change impacts, including natural disasters and extreme weather fluctuation, as the most important issue facing Canadian producers over the next 5 years.

  Recent forecasts report that losses due to weather events alone (floods, droughts, and storms) will increase to $139 billion in the next 30 years, with agriculture among the most affected sectors. Between 2001 and 2010, insured losses from natural disasters in Canada averaged $675 million annually. From 2011 to 2020, this figure rose to $2.3 billion and surged to $3.1 billion by 2023 (Insurance Bureau of Canada).

  Extreme weather events could have significant impacts that extend beyond economic concerns, including loss of public trust, and impacts to environmental and human health. This requires a shift from reactive programs to a comprehensive approach that manages risks proactively and maximizes the use of collective capacities.

  Investment in prevention and preparedness is far less costly than the consequences of inaction. Recent data from the National Adaption Strategy notes that every dollar spent on adaptation measures saves up to $15, including both direct and indirect economy-wide benefits. Every dollar invested in adaptation generates significant benefits.

  Livestock Tax Deferral

  The Livestock Tax Deferral (LTD) provision allows livestock producers who are forced to sell all or part of their breeding herd due to drought or excess moisture to defer a portion of their income from sales until the following tax year. The income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the tax burden associated with the original sale. In 2024, the Government of Canada streamlined the process to identify regions earlier in the growing season and instituted a buffer zone to adjacent regions to capture impacted producers on the edges of affected regions.

  An initial list of regions in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and the Northwest Territories (including buffer zones) have been prescribed for LTD in 2025, due to severe to extreme drought conditions. Any additional regions that meet the criteria later in the growing season will also be prescribed and posted on AAFC's LTD web page.

  AgriRecovery

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

  AgriInsurance

  The AgriInsurance program helps to stabilize producer income by minimizing the economic effects of production losses caused by severe but uncontrollable natural hazards. It provides premium subsidy support, both federal and provincial, largely to crop producers, averaging over $1.3 billion per year since 2018, which represents approximately two-thirds of all BRM contributions.

  Sustainable Canadian Agricultural Partnership

  AAFC and its provincial and territorial counterparts are implementing programming under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a five-year, $3.5 billion federal–provincial-territorial (FPT) policy framework, which is the successor to the Canadian Agricultural Partnership.

  The Sustainable CAP focuses on supporting environmental, economic, and social objectives across all 5 priority areas: science, research and innovation, market development and trade, building sector capacity and resiliency and public trust. The Sustainable CAP also emphasizes the importance of climate change action and the protection of the environment, which are critical to the continued prosperity of the sector as well as supporting economic growth and competitiveness.

  AAFC's Strategic Plan for Science

  Higher-risk transformative science under AAFC's Strategic Plan for Science will help ensure a sustainable, resilient, and profitable agriculture and agri-food sector by 2050. Mission-driven science will bring together multiple disciplines, including economics, social science, and natural science, from across the department and other science organizations working towards a similar goal, including increasing the resiliency of agroecosystems.

  The missions are as follows:

  • mitigating and adapting to climate change
  • increasing the resiliency of agroecosystems
  • advancing the circular economy by developing value-added opportunities
  • accelerating the digital transformation of agriculture and agri-food

• Advance Payments Program increases to interest-free limits to support producers

  • Producers have access to the Advance Payments Program (APP), a federal loan guarantee program which provides easy access to low-interest cash advances, helping producers meet their financial needs.
  • In light of high input costs and increased interest rates, the Government of Canada increased the interest-free portion of the APP advances in the 2022, 2023 and 2024 program years.
  • To support producers navigating significant pressure and uncertainty, the interest-free limit was increased from $100,000 to $250,000 for the 2025 program year. This change is expected to provide additional interest savings of $65 million to approximately 13,000 producers.
  • Additionally, it was announced on September 5, 2025 that the Government of Canada is temporarily increasing the interest-free portion for canola advances. For the remainder of the 2025 program year and the 2026 program year, the interest-free limit will rise to $500,000.

  When pressed

  How many producers have benefited from the increased interest-free limit?

  For the 2024 program year, of the over 22,300 producers who received advances, nearly 13,300 producers benefited from the increased interest-free limit above $100,000 and, of these, nearly 7,000 producers were able to maximize the interest-free benefit of $250,000.

  Background — Advance Payments Program

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

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

  To ensure that Canadian farmers have access to the cash flow needed to continue producing food and supporting national food security, the Government increased the $100,000 interest-free limit on loans temporarily under the APP to $250,000 in 2022, to $350,000 in 2023 and to $250,000 in 2024, representing a total savings of $175.1 million for producers over the 3-year period (2022 to 2024).

  Additionally, on March 7, 2025, it was announced that the interest-free limit was being temporarily increased to $250,000 for the 2025 program year. Participating producers could save on average $5,000 in interest costs. This change will represent estimated savings of up to $65 million for approximately 13,000 producers.

  Furthermore, on September 5, 2025 it was announced that the interest-free limit will be temporarily set at $500,000 for canola advances in the 2025 and 2026 program years. It is expected that this program change would provide approximately 1,745 canola producers in program year 2025 and 6,000 canola producers in program year 2026 with a combined $36.3 million ($5.1 million in 2025 and $31.2 million in 2026) in additional interest savings for the 2025 and 2026 program years.

  In 2022, the Advance Payments Program provided $3.5 billion in total advances to 18,940 producers across Canada. A total of 9,634 producers were able to benefit from the increase and, of these, 5,122 were able to maximize the $250,000 interest-free benefit.

  For the 2023 program year, a total of 21,467 producers (value of $4.5 billion) received advances. A total of 7,504 producers received interest-free advances above $250,000, and of these, 4,950 received the maximum interest-free benefit of $350,000.

  The 2024 program year started on April 1, 2024, and 22,324 producers (value of $4 billion) have received advances to date. A total of 13,286 producers have received interest-free advances above $100,000, and of these, 6,969 have been able to maximize the $250,000 interest-free benefit.

• Strengthening Canada's food systems

  • We launched the Food Policy for Canada to advance food systems that meet the needs of Canadians and support the growth of our farmers and food businesses.
  • Through the Local Food Infrastructure Fund, we're providing critical funding for communities to get the infrastructure they need in place to put healthy, local food on tables.
  • The National School Food Program, backed by a $1 billion investment in Budget 2024, is providing up to 400,000 students with nutritious meals every day, saving families money and creating opportunities for local food producers.

  Background — community food access

  Launched in 2019, the Food Policy for Canada seeks to create healthier and more sustainable food systems in Canada, building on the Government's ambitious agenda to support the growth of Canada's farmers and food businesses. The Food Policy brings a coordinated approach to dealing with food issues in Canada by strengthening linkages across federal initiatives that affect food.

  Budget 2024 included new investments in community priorities to improve access to food. These investments included $62.9 million over 3 years to renew and expand the Local Food Infrastructure Fund to strengthen local food security and $42.8 million to strengthen access to culturally important foods through the Northern Isolated Community Initiatives Fund, Canadian Shellfish Sanitation Program and implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act.

  Local Food Infrastructure Fund

  Budget 2024 allocated $62.9 million over 3 years to renew and expand the Local Food Infrastructure Fund (LFIF) to support community organizations across Canada to invest in local food infrastructure. Priority is given to Indigenous and Black communities, along with other equity-deserving groups. Part of the expansion was allocated to the School Food Infrastructure Fund to support community organizations to improve infrastructure for school food programs as a complement to the National School Food Program.

  • Small Scale Projects provide grants ranging from $25,000 to $100,000 for initiatives aimed at addressing local food security needs through the purchase and installation of infrastructure or equipment. These projects must include a production element and will be funded during 2 intake periods: October 1 to October 31, 2024, and August 25 to September 24, 2025. A total of $23.5 million will be available over 3 years, starting in 2024-25. The first intake funded 87 projects valued at $5.6 million.
  • Large Scale Projects offer non-repayable contributions between $150,000 and $500,000 for larger, more comprehensive initiatives. These projects must involve multiple infrastructure or equipment needs and include at least 2 partnerships to enhance community food security. The application intake for Large Scale Projects took place from January 13 to February 28, 2025, with a total of $19.2 million available over 2 years, starting in 2025-26.
  • School Food Infrastructure Fund includes total funding of up to $20.2 million and was launched in September 2024. A total of 10 organizations have been approved for funding, which will further distribute funds to community-based not-for-profit organizations involved in the delivery of school food programming through a transparent decision-making process.

  National School Food Policy

  Launched in June 2024, the National School Food Policy articulates the federal government's long-term vision for a future where all children can have access to nutritious school meals. This fulfills a commitment to work with provinces, territories, municipalities, Indigenous partners and stakeholders towards the creation of a National School Food Program.

  National School Food Program

  Budget 2024 committed $1 billion over 5 years to Employment and Social Development Canada, Indigenous Services Canada and Crown–Inuit Relations and Northern Affairs Canada to implement the National School Food Program, working with provinces, territories and Indigenous partners to increase access to school food programs across Canada. It is estimated that the program could reach up to 400,000 students annually and save participating families with 2 children in school approximately $80 per year on groceries.

  The National School Food Policy guides the implementation of the Program, articulating a foundation for nutritious, accessible, flexible, and accountable school food programming. Bilateral agreements have been signed with all 13 provinces and territories to expand and enhance school food programs; provinces and territories consult with school jurisdictions, delivery partners and stakeholders (which often include local agricultural groups) in determining how to allocate federal funding to best support local needs and priorities.

  Budget 2024 investments supporting access to culturally important foods

  Northern Isolated Community Initiatives Fund — $14.9 million over 3 years to renew and expand the fund to all regions of Inuit Nunangat in support of local and Indigenous food production systems, including innovative northern food businesses, which contribute to food security in the North.

  Canadian Shellfish Sanitation Program — $25.1 million over 2 years to expand the program to assist Indigenous communities to safely access shellfish harvest for food, as well as for social and ceremonial purposes.

  Implementing the UNDA Action Plan Measures — $2.8 million over 3 years to bolster the policy and engagement capacity among Inuit Tapiriit Kanatami and Inuit Treaty Organizations to co-develop legislative and policy options to facilitate the production, sale, and trade of traditional and country food.

• Support for the wine sector

  • The Government recognizes the wine sector's important economic contributions, including providing business opportunities and jobs for grape growers and wine makers across Canada.
  • To ensure continued support for the sector, on March 1, 2024, the Government announced an extension to the Wine Sector Support Program, investing up to an additional $177 million over 3 years, ending on March 31, 2027.
  • The $343 million, 5-year program helps federally licensed Canadian wineries adapt to ongoing and emerging challenges impacting their financial resilience and competitiveness by providing grants based on their previous year's wine production.
  • For 2025-26, the Wine Sector Support Program will provide up to $55 million to eligible wine producers. The application intake period opened on March 3, 2025, and closed on May 30, 2025. Payments are expected to start being released in fall 2025.

  When pressed

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

  Through the Wine Sector Support Program, delivered by Agriculture and Agri-Food Canada, the Government will provide up to $343 million to eligible Canadian wine producers over 5 years (2022–23 to 2026–27) to help the sector adapt to ongoing challenges over the short-term. The program is set to expire on March 31, 2027.

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

  The Sustainable Canadian Agricultural Partnership offers a range of federal-only programming (that is, AgriScience, AgriAssurance and AgriMarketing) to organizations delivering national projects that support Canada's agricultural sector, including wine. For example, the AgriAssurance Program approved up to $836,220 in funding over 5 years to the Canadian Grapevine Certification Network, to provide Canadian grape growers and wineries with the material necessary to replant or plant certified virus-free grapevines in their vineyards to ensure the long-term viability of the Canadian grape and wine sectors. The AgriMarketing Program approved up to $1.8 million in funding over 3 years to Wine Growers Canada, to increase domestic and export sales of Canadian wine through market development and increased recognition, awareness and trust in 100% Canadian grown and made premium wines and protect, maintain and enhance market access for Canadian wine producers.

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

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

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

  Will the government develop a national wine strategy?

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

  Background — support for the wine sector

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

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

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

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

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

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

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

  Budget 2021 proposed to provide $101 million over 2 years, starting in 2022–23, to Agriculture and Agri-Food Canada, to implement a program to help the wine sector adapt to ongoing and emerging challenges, in line with Canada's trade obligations. Stakeholders indicated that the $101 million was $34 million short of the Budget 2022 estimate of impacts of the repeal of the excise tax ($135 million), and that a 2-year program would not provide the certainty needed to support investments. On June 16, 2022, the Government of Canada approved an additional $65 million in grant funding for the Program, for a total of $166.2 million over 2 years (2022–23 and 2023–24).

  On March 1, 2024, the Government of Canada announced an extension to the Program, investing up to an additional $177 million over the following 3 years (2024–25 to 2026–27).

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

  • In 2022–23, 454 eligible recipients received approximately $79.55 million
  • In 2023–24, 448 eligible recipients received approximately $78.55 million
  • In 2024–25, 477 eligible recipients received approximately $55 million

  The application period for the 2025–26 program year ran from March 3, 2025, to May 30, 2025 (13 weeks). Assessments are still underway; however, payments are expected to start being released in fall 2025.

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

• Bunge–Viterra merger

  • As part of the Bunge-Viterra merger, the Government of Canada established extensive conditions to protect the public interest, including for Bunge to divest six grain elevators in Western Canada.
  • We believe the terms and conditions will help to ensure healthy competition, fair pricing, and fair options for Canadian farmers to market their grain.
  • We look forward to the tangible benefits this partnership will bring to producers, processors, and the broader Canadian agri-food economy.

  Background — Bunge–Viterra merger

  On August 15, 2023, Bunge Limited, a global agricultural company, and Viterra Limited, Canada's largest grain handler, announced their intention to merge their global operations. This triggered 2 reviews — one by the Competition Bureau which reviewed the impact of the acquisition on competition, and one by Transport Canada, which focused on public interest issues related to Canada's transportation sector and supply chains. Both reviews were completed in the spring of 2024. The Competition Bureau report, which was made public, raised concerns about anti-competitive effects in the grain origination and oilseed sectors and the corporate concentration that would result from the acquisition of Viterra by Bunge.

  On January 14, 2025, the Government of Canada announced the approval of the acquisition with extensive conditions which aim to address competition and concentration concerns.

  The merger was also subject to a series of regulatory reviews from the USA, EU, Australia, Canada and China.

  China, the final country to complete its review of the transaction, announced its approval with conditions in June 2025. The merger has passed the required regulatory reviews and has since been finalized. The merged entity is now known as Bunge Global.

  Canada's key terms and conditions included:

  • Bunge's divestiture of 6 grain elevators in Western Canada to maintain competitive options for farmers in the region
  • strict and legally binding controls on Bunge's minority ownership stake in G3, to ensure Bunge cannot influence G3's pricing or investment decisions
  • a price protection program for certain purchasers of canola oil in Central and Atlantic Canada to safeguard fair pricing and market stability
  • retaining Viterra's head office in Regina for at least 5 years to protect Canadian jobs
  • binding commitment from Bunge to invest at least $520 million in Canada within the next 5 years

  The process of finding suitable buyers for the 6 primary elevators located in Manitoba and Saskatchewan is currently underway. According to the agreed to terms and conditions, divestment of the identified assets must occur within 4 months of the merger's closing date.

• Plastic use in agriculture

  • Farmers and food processors are cutting plastic use and embracing sustainable practices.
  • The Government of Canada is funding on-farm plastic waste reduction and researching renewable, bio-based alternatives.
  • We are committed to helping the agriculture and food sector achieve zero plastic waste by 2030, working with partners across the value chain to guide smart, effective policies.

  Background — plastic use in agriculture and agri-food

  Plastic use in primary agriculture

  In 2021, Canadian primary agriculture used close to 62,000 tonnes of plastics in the process of growing crops and raising livestock. Common uses are fertilizer and pesticide containers, grain bags, silage wrap, baling twine, greenhouse construction, crop mulches/covers, polymer coated seeds and fertilizers, irrigation systems, crates for crop collecting and tile drainage. Plastics provide producers with an economical and reliable way to extend their growing season, increase storage, reduce inputs like pesticides and fertilizers, reduce greenhouse gas emissions, improve yield and preserve feed.

  Efforts to improve the management of plastic waste on farms have focused on collaboration with Cleanfarms, a national not-for-profit industry stewardship organization that has programs in place across Canada to recover and manage non-organic and mostly plastic farm waste. Cleanfarms received federal funding for a 4-year project (2020-2024) through Agriculture and Agri-Food Canada's (AAFC) Canadian Agricultural Strategic Priorities Program.

  In addition to on-farm plastic waste, microplastics can accumulate in soil, including biosolids applied as fertilizers or polymers used for encapsulation of pesticides, fertilizers, seed coatings, and soil conditioners. AAFC continues to work alongside Environment and Climate Change Canada (ECCC), the lead regulatory body on Zero Plastic Waste, to better understand the impacts of plastic pollution on soil. There are no regulations or initiatives in place to reduce or mitigate microplastic accumulation in Canada's farm soil.

  Plastic use in food packaging

  The majority of food and beverages sold at grocery stores are packaged in single-use plastic, accounting for a third of all plastic packaging in Canada — 700,000 tonnes of plastic used annually — and 10% of total plastic consumption in Canada. Plastic food packaging is used to improve shelf life, for convenience, for marketing purposes and to maintain quality and safety of food products during transportation and storage. The food industry is the second largest user of plastics in manufacturing, second only to the transportation sector.

  The wide variety and complexity of plastic food packaging limits recyclability and can contaminate recycling streams. There are growing concerns over microplastics that are generated when these items degrade in the environment and could cause harm to ecosystems and human health.

  While AAFC has no programming dedicated to food packaging, AAFC has provided financial support through AgriInnovate (1 project) and the Food Waste Reduction Challenge (2 projects), aimed at using agricultural waste to make bioplastic packaging. AAFC has also conducted its own research related to bioplastics.

  Plastic pollution reduction measures in the agriculture and agri-food sector

  ECCC is the federal lead working to reduce plastic waste in all sectors of the economy through regulatory and non-regulatory measures. Initiatives aimed at reducing plastic are not expected to significantly impact the primary agriculture sector, however these measures could have a significant impact on the food industry. In 2025, ECCC launched the Federal Plastics Registry requiring all businesses to report annually on:

  • the quantity and types of plastic they place on the Canadian market
  • how it moves through the economy; and
  • how it is managed at its end-of-life

  Other measures have been proposed that would improve labels for recycling plastic packaging, increase the use of post-consumer recycled plastic into newly manufactured packaging, and direct processors and large retailers to develop plans to reduce plastic used in food packaging. Proposals depend on the outcome of a court case, anticipated in 2025, related to the Canadian Environmental Protection Act (CEPA).

  The federal government is only able to regulate substances for environmental protection if they are listed as toxic under CEPA. As a result, ECCC moved to add "plastic manufactured items" to the list of toxic substances on Schedule 1 of CEPA through an Order in Council on May 12, 2021. A case against the Order in Council was brought forward by a coalition of plastic companies, including Dow Chemical, Imperial Oil and Nova Chemicals (and supported by the Government of Alberta). In November 2023, a Federal Court judge ruled that the federal government's decision to list plastic items as toxic was unreasonable and unconstitutional, writing that the category of plastic manufactured items was too broad to be given a blanket toxicity label under federal law. The federal government has appealed this decision, and the case is currently underway at the Federal Court of Appeals.

  Efforts to reduce plastics by processors and retailers may affect access to imported products. Additionally, if the sector is unable to find adequate alternatives to plastics, several undesirable consequences could emerge, including: reduced shelf life and increased product damage; decreased supply chain efficiencies, impacts on product availability and value-added options, and less microbial control and increased external contamination, particularly for cut and pre-prepared fruits and vegetables.

• Support for young farmers

  • Youth and young farmers are the future of the agriculture and agri-food sector.
  • We support youth and young farmers who are new to farming, through initiatives that promote their participation in the sector and help them access tools and programs to be competitive.
  • Under the Sustainable Canadian Agricultural Partnership, Agriculture and Agri-Food Canada supports a range of projects that help under-represented groups, including youth, to better participate in the agricultural sector.

  When pressed

  What programs are supporting young farmers and youth?

  Under Sustainable CAP, the AgriCompetitiveness Program is continuing to support Agriculture in the Classroom, which is receiving up to $1.5 million over the first three years of Sustainable CAP (2023-2026) to bring agriculture to classrooms across Canada, helping children better understand where our food comes from. The organization is also receiving up to $574,200 under the AgriDiversity Program, to inspire the next generation to care about the food they eat, where it comes from, and how it gets to consumers. In addition, support continues for 4-H Canada, which is receiving up to almost $2.8 million in AgriCompetitiveness funding over the first three years of Sustainable CAP (2023-2026), to support its work with Canada's rural and agricultural youth.

  Lastly, Canada's Outstanding Young Farmers is also receiving more than $230,000 in AgriCompetitiveness funding over the same period (2023 to 2026), to help recognize young farmers and encourage mentors across the agriculture sector to share their knowledge to benefit everyone.

  How else is the Government supporting young farmers and youth?

  We are giving youth and young farmers a voice through the Canadian Agricultural Youth Council, to share information and best practices, and to provide their advice on policies and programs that affect them.

  AAFC's Youth Employment and Skills Program had approximately $13.5 million in 2024-25 and an additional $13.5 million in 2025-26 to support agricultural employers creating jobs for youth and provide opportunities to gain valuable work experience and develop skills.

  Background — support for young farmers

  Agriculture and Agri-Food Canada's (AAFC) vision is to drive innovation and ingenuity to build a world-leading agricultural and food economy for the benefit of all Canadians. The department provides leadership in the growth and development of a competitive, innovative and sustainable Canadian agriculture and agri-food sector.

  Youth are underrepresented in the agriculture and agri-food sector; for example, in 2021, youth aged 15-35 made up 34.3% of the Canadian workforce, but account for 27.9% of those employed in the primary agriculture sector. According to Statistics Canada, the average age of farm operators (that is, individuals who make management decisions) was 56 years in 2021. Among these operators, 8.6% of Canadian farm operators were under 35 years old, while 61% were 55 and older.

  Canada's young farmers are the future of farming, and vital to the sector's continued competitiveness. The Government is committed to supporting youth to both start and grow their agricultural businesses.

  Sustainable Canadian Agriculture Partnership

  The Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a 5-year, $3.5-billion federal–provincial-territorial investment designed to strengthen and grow Canada's agriculture and agri-food sectors with simplified, streamlined, easier to access programs and services; improve programs that help producers manage significant risks threatening farm viability; invest $2.5 billion in federal-provincial-territorial cost-shared strategic initiatives (60 federal:40 provincial/territorial) that are designed and delivered by the provinces and territories; and invest $1 billion for federal activities and programs.

  AgriDiversity program

  The AgriDiversity Program is a 5-year (2023 to 2028), $5-million program that helps Indigenous Peoples and other underrepresented and marginalized groups (including women, youth, persons with disabilities, racialized persons, visible minorities, 2SLGBTQI+ communities and official language minority communities) address key issues and barriers to their full participation in the agricultural sector. The program will bolster sector capacity by helping diverse groups enhance their skills to take on a greater leadership role; build entrepreneurial capacity and business skills; and manage transformation and adapt to changes in business operations.

  AgriCompetitiveness program

  The AgriCompetitiveness Program is a 5-year (2023 to 2028), $25.7-million investment that encourages projects aimed at increasing sector development, good environmental practices, and tools and information to manage emerging risks. It also provides funding towards eligible activities aimed at youth and young farmers, such as networking and training opportunities, to help them transition to, adapt, and/or improve their business's profitability.

  Other AAFC programs

  Youth Employment and Skills Program

  The Youth Employment and Skills Program (YESP), part of the Government's broader Youth Employment and Skills Strategy, provides financial contributions to agricultural employers who hire youth, between 15 and 30 years of age, for agricultural jobs. The program offers support for 50% of salaries and benefits, to a maximum of $14,000 over 12 months. The YESP also offers a higher contribution rate, at 80%, for youth facing barriers to employment. Up to an additional $5,000 may also be provided to the employer for specific pre-approved costs to address the youth's barrier(s) to employment, such as critical transportation, relocation, assistance with dependents, accommodation needs, and accessibility equipment/technology. Non-barrier youth may also be eligible for pre-approved relocation costs at the 50% funding level to a maximum of $5,000. For 2025–26, the program has $13.5 million available and is anticipated to support approximately 1,200 youth.

  Poultry and Egg On-Farm Investment Program

  The Poultry and Egg On-Farm Investment Program is a 10-year, $759-million program that helps supply-managed poultry and egg producers adapt to market changes resulting from the implementation of the trade agreements that have impacted their sector. To that end, the program supports on-farm investments by cost-sharing 70% of eligible investment up to the maximum allowed based on a farmers' share of provincial quota holdings on January 1, 2021. To better help younger farmers, the program may provide up to 85% of eligible project costs for producers who were 35 years or younger on January 1, 2021.

  Agricultural Clean Technology Program

  As part of the Government of Canada’s strengthened climate plan, 2030 Emissions Reduction Plan: Clean Air, Strong Economy, the Agricultural Clean Technology Program aims to create an enabling environment for the development and adoption of clean technology that will help drive the changes required to achieve a low-carbon economy and promote sustainable growth in Canada’s agriculture and agri-food sector.

  The Adoption Stream provides support for the purchase and installation of commercially available clean technologies and processes with a priority given to those that show evidence of reducing greenhouse gas emissions and other environmental co-benefits.

  The Research and Innovation Stream provides support for pre-market innovation, including research, development, demonstration and commercialization activities, to develop transformative clean technologies and enable the expansion of current technologies.

  The Adoption Stream may provide a more favourable cost-share ratio (50:50) where the majority of the business (more than 50%) is owned or led by one or more under-represented groups, including youth, aged 35 or under.

  The Research and Innovation Stream may provide a more favourable cost-share ratio (60:40) where the majority of the business (more than 50%) is owned or led by one or more under-represented groups, including youth, aged 35 or under.

  AgriInnovate program

  AgriInnovate is a program under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) and provides repayable contributions to incent targeted commercialization, demonstration and/or adoption of commercial-ready innovative technologies and processes that increase agricultural and agri-food sector competitiveness and sustainability benefits.

  The program may provide a more favourable cost-share ratio (60:40) where the majority of the business (more than 50%) is owned or led by one or more under-represented groups, including youth, aged 35 or under.

  Supply Management Processing Investment Fund

  The Supply Management Processing Investment Fund supports the dairy, poultry and egg processing sectors to mitigate the impacts of the Canada-European Union Comprehensive Economic and Trade Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Canada–United States–Mexico Agreement. It aims to assist existing processors in the supply-managed sectors to increase their competitiveness and resilience in the face of evolving markets.

  The program supports investments in processing facilities that improve productivity and/or efficiency through the acquisition of new automated equipment and technology.

  Small and Medium-sized Enterprises (less than 500 employees) are eligible for a 50:50 cost share ratio and the ratio for large companies is 25:75. The program may provide an additional 10% on the cost-share ratio where the majority of the business (more than 50%) is owned or led by one or more under-represented groups, including youth, aged 35 or under.

  Business Risk Management programs

  Business Risk Management (BRM) programs provide farmers, including young farmers, with critical protection against income and production losses, and help them manage risks that threaten the viability of their farms.

  AgriInvest is a government-matched savings account to address income declines, cash flow issues, or make investments to manage on-farm risks. Federal, provincial and territorial (FPT) governments contribute approximately $278 million annually to AgriInvest accounts.

  AgriStability is a whole-farm program, which provides support to producers who experience a large margin decline for reasons such as production loss, increased costs, and market conditions. Government spending for AgriStability has varied on market conditions, averaging about $422 million per year.

  AgriInsurance provides insurance protection against production declines caused by natural hazards or disasters. It provides premium subsidy support, both federal and provincial, largely to crop producers, averaging over $1.3 billion per year since 2018, which represents approximately two thirds of all BRM contributions.

  AgriRecovery is a FPT framework that facilitates the implementation of individual initiatives to help producers recover from disasters. The initiatives focus on the extraordinary costs producers must take on to resume operations, and/or to mitigate the impacts of disaster events. AgriRecovery is normally cost-shared 60:40 with provincial governments.

  The Advance Payments Program (APP) is a federal loan guarantee program that provides agricultural producers with easy access to low-interest cash advance of up to $1 million, with the first $100,000 of the advance interest free. The temporary increase of the interest-free limit to $250,000 for 2024 has been extended for the 2025 program year. Producers are required to repay their advance as they sell their commodities, with up to 18 months for full repayment of most advances. On average (2020-2024), the APP provides 19,960 participating producers with annual advances totaling $3.42 billion and the program includes provisions that allow the Minister to extend the repayment deadlines through Stays of Default in cases where there are issues in a sector or region which may result in significant defaults (for example, trade issues, market issues).

  The Canadian Agricultural Loans Act (CALA) program is a loan guarantee program designed to increase the availability of loans to farmers and agricultural co-operatives. Farmers can use these loans to establish, improve and develop farms, while agricultural co-operatives may also access loans to process, distribute or market the products of farming. Through the CALA Program, the Government of Canada is supporting the renewal of the agricultural sector and enabling co-operatives to better seize market opportunities. Under the CALA, the federal government guarantees, to the lender, repayment of 95% of a net loss on an eligible loan issued. The maximum aggregate loan limit for any one farm operation is $500,000. CALA includes special provisions for beginning farmers in the form of a lower down payment (10%) as compared to existing farmers (20%).

  Canadian Agricultural Youth Council

  The Canadian Agricultural Youth Council is a group of young Canadians providing advice to the department and the Minister of Agriculture and Agri-Food, to ensure that a youth perspective is reflected in policies and programs affecting the agriculture and agri-food sectors. The Youth Council enables an ongoing dialogue on food-related challenges and opportunities and a forum for sharing information and best practices with its peers, other youth organizations, and government officials.

  The Youth Council is currently made up of 21 young people, aged 18 to 30, working within the agriculture and agri-food value chain, who are interested in shaping the future of the sector. Members represent a diverse mix of individuals from subsectors across the agriculture and agri-food sector, as well as from every province. The Youth Council is co-chaired by a youth member and young departmental representative.

  The Youth Council had its most recent in-person meeting this past November 2024, where it consulted with the Department of Canadian Heritage on the Second State of Youth report. It met with peers from the American Farm Bureau Federation's Young Farmers and Ranchers program and provided its perspectives on the Canadian Agricultural Loan Act. In June 2025, the council met virtually and discussed the roles for industry and government in encouraging the adoption of new technologies on-farm. They learned more about Canada's trade relationships and market diversification work in order to develop the council's efforts with connections to AAFC's trade and market goals. They have also confirmed their strategic plan to better prepare for the sector's future. Past Youth Council meetings have included discussions on topics such as the current landscape for accessing financing roles for industry, AAFC's strategic plan for science, public trust and consumer confidence, regulatory systems and their impacts on competitiveness, the urban-rural divide, the agricultural sector as part of climate change solutions, knowledge transfer to producers and consumers, as well as how to attract and retain young people in agriculture-related careers.

  Outstanding Young Farmers program

  AAFC is proud to support Canada's Outstanding Young Farmers (OYF) program in recognizing the achievements of a new generation of farmers. The program celebrates the successes of deserving individuals, highlights to Canadians the importance of farming in their nation's economy and encourages other hardworking young farmers across Canada to show innovation in their approaches and leadership in their industry. Like AAFC, the OYF program is committed to a bright future for farming in this country. The program is designed to recognize young farmers between the ages of 18 and 39 that exemplify excellence in their profession.

  Farm Credit Canada

  Farm Credit Canada offers customized financing through the Starter Loan and Young Farmer Loan.

  Starter Loan allows youth aged 18 to 25 years old to build their credit history and gain independence with loan to purchase livestock, equipment or shares in a company.

  Young Farmer Loan offers producers under 40 a loan with preferential variable and five-year rates, to purchase agriculture-related assets of up to $1,500,000.

  Additional services

  There are a number of federal measures available to facilitate farm transfers:

  • AAFC's Canadian Agricultural Loans Act program provides loan guarantees for farm transfers and to beginning farmers; and
  • Farm Credit Canada offers free learning programs on succession planning.

  Provincial programs and initiatives

  Young Farmers Rebate provides young farmers with financial incentives, valuable training opportunities and customized terms and payment options. Assisting Manitoba's young farmers is one of Manitoba Agricultural Services Corporation's primary lending objectives. The Bridging Generations Initiative (BGI) provides farmers under the age of 40 with financial incentives and customized terms and repayment options. The BGI aims to assist with the transfer of farm assets between young farmers and retiring producers.

  Manitoba Agricultural Services Corporation also offers the Young Farmer Crop Plan Credit assists young and beginning farmers with the costs of AgriInsurance, while ensuring their crop production decisions are made based on sound research, analysis and their own cost of production.

  La Financière Agricole du Québec provides financial support for aspiring farmers, to help young producers establish themselves on an existing farm or to start a new business. Grants can be used for productive investments within the operation, such as land improvement and equipment purchase.

  Alberta's Resiliency and Public Trust Program is part of the Sustainable CAP and is cost-shared 60/40 federally/provincially. The program focuses on building resiliency and public trust in agriculture through education on industry best practices and enhancing public awareness. The program supports initiatives for agricultural education for K-12 students including farm safety programs and public agriculture awareness activities.

  New Brunswick's Skills Development, Business Planning and Agriculture Education program is under the Sustainable CAP and is cost-shared 60/40 federally/provincially. The program creates public awareness about the agriculture industry and provides specialized training for farm owners and managers. The program also supports the New Brunswick 4-H and Agriculture in the Classroom programs, promoting agriculture education among youth.

  Newfoundland and Labrador's Advancing Public Trust Program is under the Sustainable CAP and is cost-shared 60/40 federally/provincially. The program builds consumer confidence in local agriculture through awareness initiatives and educational activities for youth, including classroom programs and agricultural career days.

  Nova Scotia's Agriculture Skills Student Bursary Program is under the Sustainable CAP and is cost-shared 60/40 federally/provincially. The program introduces agriculture as a career option for students by providing work experience on registered farms, while the Public Trust Pillars program promotes public trust through initiatives focused on diversity, equity, and inclusion, and mental health resources for farmers.

  Prince Edward Island's Agriculture Awareness Sub-Program raises the profile of agriculture through promotional events, educational activities, and support for 4-H programming, enhancing agricultural literacy and leadership skills among youth.

  Saskatchewan's Agriculture Awareness Initiative Program funds projects to build awareness and trust in modern agriculture, while the Next Gen Agriculture Mentorship Program provides support to engage and train young producers to take on leadership roles in agricultural industry organizations, boards, and commissions. The Next Gen Agriculture Mentorship Program is a Sustainable CAP cost-shared program funded 60/40 federal/provincial and administered by Canadian Western Agribition.

  Saskatchewan also offers Agriculture Student Scholarships under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) which are cost-shared 60/40 federal/provincial. They are available to high school students or recent graduates who are enrolled in an agriculture-related post-secondary program and are planning to pursue a career in the agriculture industry in Saskatchewan.

  Lastly, Saskatchewan offers a Next Gen Agriculture Mentorship Program under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) and is cost-shared 60/40 federal and provincial. The program provides young people, within the industry, the skills and experience necessary to take on the leadership roles of the aging demographic of Saskatchewan's agriculture industry. It is important that young producers and professionals have the opportunity to develop their knowledge, skills and networks to take on these important roles.

• Intergenerational transfer of farms

  • Young farmers are the future of Canada's agriculture sector. This Government is committed to seeing farm families succeed and will continue to work with producers to facilitate the intergenerational transfer of farm businesses.
  • Our government has already made amendments to the Income Tax Act that make it easier for farming families to pass their farm to the next generation.
  • There are several other provisions under the Income Tax Act that support intergenerational farm transfers, including the higher Lifetime Capital Gains Exemption announced in Budget 2024.

  When pressed

  How does the Government support intergenerational farm transfer?

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

  • the lifetime capital gains exemption, which allows an individual selling a qualified property to use their capital gains to reduce their taxable income
  • the rollover provision, which allows an individual to transfer the title of an asset on a tax-deferred basis
  • the reserve provision, which allows the proceeds from the sale of property to be claimed by the seller over up to 5 years

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

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

  Background — intergenerational farm transfer

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

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

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

  • lifetime capital gains exemption, which allows an individual selling a qualified property to use their capital gains to reduce their taxable income;
  • rollover provision, which allows an individual to transfer the title of an asset on a tax-deferred basis
  • reserve provision, which allows the proceeds from the sale of property to be claimed by the seller over up to 5 years

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

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

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

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

• Farm income situation for 2024 and 2025

  • A financially healthy agriculture sector is critical to Canada's economic well-being.
  • Farm cash receipts for the first 6 months of 2025 increased 3.3% compared to the same period in 2024, largely due to increases in livestock prices, while overall crop receipts were steady.
  • The Government is committed to working with its trade partners to maintain market access for agricultural products and supporting producers.

  When pressed

  How are the recent shifts in U.S. and Chinese trade policies expected to impact producers' economic situation in 2025?

  It is expected that tariff increases would negatively impact exports, pressuring prices, and they could further disrupt global supply chains, adding to production costs, although impacts are expected to vary by product. Furthermore, most agricultural trade with the U.S. is not being impacted due to CUSMA products being exempt. Despite this, changes in the trade environment are nonetheless expected to increase overall uncertainty for producers.

  Additionally, China's recent announcement of a preliminary anti-dumping duty on imports of canola from Canada is expected to push overall marketings lower, although canola marketings for the first half of 2025 were higher as China's buyers sought to increase purchases before the tariffs came into effect.

  Other sources of uncertainty also exist, such as growing conditions and continuing geopolitical shocks which, combined with adverse trade policy shifts, could increase global commodity prices and weaken global economic growth and demand. Any resulting inflationary pressures could also increase farm input costs.

  Many farmers have seen large increases in expenses in recent years. How has this impacted their bottom line?

  Generally, overall income has remained strong in recent years, as increasing global crop prices in 2021 and 2022, and higher crop marketings and strong cattle prices in 2023, helped offset the elevated input costs. Overall, expense growth in 2024 was much more moderate, increasing only 2.4%, however incomes fell as grain receipts continued to decline. Higher incomes from 2020 to 2023 have put most farms in solid financial positions such that weathering a period of lower prices and incomes is possible.

  While the overall financial situation is solid, the economic impacts of these changes have not been evenly distributed between sectors or regions, and the situation for many producers may be different.

  Which expenses have seen the largest increases in recent years?

  Fuel, fertilizer and feed expenses saw sharp increases in 2021 and 2022, as the economy recovered from the pandemic with rising global inflation. Subsequently, Russia's war against Ukraine significantly disrupted global commodity markets even further. These expenses moderated in 2023 and have generally been declining since.

  Interest expenses also increased in 2022 as the Bank of Canada raised rates to fight inflation and saw further increases in 2023 and 2024. Livestock purchases have also increased in recent years due to higher animal prices.

  How are the recent weather and climate challenges impacting farmers' economic stability in 2025?

  In some parts of the Prairies, below-normal precipitation and prolonged heat have led to below-average crop conditions, while timely July rainfall in other areas has helped improve crop conditions. Growing conditions in Eastern Canada have also been mixed, with above-average temperatures across the region, below-normal rainfall in much of Ontario and Atlantic Canada, and above-normal precipitation in Quebec.

  Based on the results of Statistics Canada's preliminary modelled crop production estimates, released on August 28, 2025, production of principal field crops is projected to be up marginally by, 0.6% from 2024 and 5.9% above the previous 2020-to-2024 average. On the Prairies, overall production is expected to increase 1.5% from the 2024 level, and 7.8% above the 2020-to-2024 average. While the overall size of the crop is projected to improve in 2025, we understand that producers in some regions may still struggle with challenging growing conditions and weather instability.

  What is the Government doing to support farmers during this challenging period?

  Federal and provincial governments continue to provide support through the business risk management programs to help producers manage risks (for example, drought, flooding, market declines and increased input costs). Producers are also supported by programs such as the Advance Payments Program, Agriculture Climate Solutions - On-farm Climate Action Fund, Resilient Agricultural Landscape Program, Poultry and Egg On-Farm Investment Program, Agriculture Clean Technology Program as well as other grant and contribution programs.

  Background — farm income situation for 2024 and 2025

  Net cash income is the primary measure used by AAFC to assess the short-term outlook for farm income for the sector and is the difference between all cash receipts and operating expenses. It represents the amount of cash generated by the farm sector that is available for debt repayment, investment or withdrawal by operators. As of May 28, 2025, Statistics Canada reported that net cash income in 2024 was $19.7 billion, which is 14.9% down from the record 2023 level of $23.1 billion. The key drivers of the change are as follows.

  Total farm cash receipts, which include crop receipts, livestock receipts and program payments, declined 1.6%. Total crop receipts were down 6.2% (down $3.5 billion), primarily due to lower prices for most major grains and oilseeds. Over half of the decline can be attributed to lower wheat (excluding durum) receipts, as prices fell 20.4%. This was the first decline in crop receipts since 2014. Livestock receipts increased 6.9% (up 2.6 billion) in 2024, primarily due to robust cattle prices, which were up 13.1% over 2023 levels on strong demand and tighter cattle supplies.

  Lower program payments (down 10.8%) also contributed to the decline in farm cash receipts in 2024. A decline in crop insurance payments as well as lower stabilization payments in Quebec and lower dairy direct program payments were behind the decrease, offsetting higher AgriStability payments.

  Operating expenses in 2024 were up a modest 2.4% to $78.3 billion, primarily due to higher interest expenses (up 28.6%), offsetting declines in feed and fertilizer expenses. An increase in livestock purchases and higher labour costs also contributed to the rise. This was the smallest increase in expenses since 2016 (up 1.2%).

  The outlook for 2025 is still very uncertain. According to Statistics Canada' release of farm cash receipts data for the first 6 months of 2025 on August 29, 2025, farm cash receipts increased 3.3% from the same period in 2024 to $49.6 billion. This is mainly the result of higher livestock receipts driven by higher cattle and hog prices, as program payments decreased (on lower crop insurance payments). Crop receipts for the first 6 months of 2025 were largely unchanged from 2024, with higher marketings being offset by lower prices, however they are 8.5% than the 2020-2024 average.

  AAFC's summer farm income forecast for 2025, which was based on conditions and data as of June 2025 and provides an estimate for the entire year, is forecasting a decline of 6.0% for net cash income in 2025, as modest growth in expenses is expected to overtake smaller growth in receipts. While the actual growth in farm cash receipts reported by Statistics Canada over the first 6 months of the year is ahead of the pace expected by AAFC's most recent forecast, uncertainty still exists for the second half of the year.

  Several key global supply and demand factors have been influencing Canadian farm income in recent years, which are expected to continue in 2025. This can be seen in two distinct trends: the continued decline in crop prices which has been more than the decline in input prices, and very strong cattle prices. Global crop prices, which peaked in mid-2022, are expected to continue to fall in 2025, due mainly to ample global crop supplies and weaker demand for grains as energy feedstocks. For cattle, the recent drought and a reduction in the North American cattle herd, along with strong beef demand, has pushed up cattle prices, with further increases expected.

  Some general risk factors, such as worsening geopolitical tensions impacting supplies and input prices, as well as extreme weather events, remain. However, the main uncertainty that has recently emerged has been the new direction in U.S. trade policy, particularly the impact of worsening trade relations between U.S. and China, which could lead to sudden and unpredictable changes in global demand and crop prices, as well as increases in volatility moving forward.

  Ultimately how these factors evolve over the second half of the year will be very important to the overall economic position of the agriculture sector for 2025.

• Greenwashing provisions in the Competition Act and their impact on the agriculture sector (concerns about Bill C-59)

  • Canadian companies are leading the way on environmental action, and it's important that they can proudly showcase their efforts and long-term aspirations publicly.
  • The recent amendments to the Competition Act were done to strengthen the credibility of environmental claims, so that consumers can trust the environmental claims of Canadian companies.
  • The Government is committed to ensuring clarity around greenwashing rules so the agriculture and agri-food sector will continue to communicate their meaningful environmental progress to the public.

  When pressed

  What measures are you taking to limit undue burden and negative economic impacts on the agricultural sector?

  Agriculture and Agri-Food Canada (AAFC) submitted comments to the Competition Bureau on the guidance as part of the public consultation process on February 28, 2025, informed by stakeholder feedback. AAFC will continue to support the agriculture and agri-food sector to ensure it is well-positioned to meet the new requirements of the act.

  Background — Bill C-59 provisions on greenwashing

  Bill C-59, the Fall Economic Statement Implementation Act, 2023, received Royal Assent on June 20, 2024. The bill included broad reforms to the Competition Act aimed at strengthening the enforcement framework and aligning Canada with international best practices. Amendments aim to address 'greenwashing', by:

  • requiring that claims about the environmental benefits of a product be supported by adequate and proper testing; and
  • requiring that claims about the environmental benefits of business or business activity be based on adequate and proper substantiation in accordance with an internationally recognized methodology

  Key points

  • Testing requirements: Businesses must ensure that any claims about the environmental benefits of their products or services are backed by adequate and proper testing.
  • Substantiation of claims: Representations about the environmental benefits of a business or its activities must be substantiated in accordance with internationally recognized methodologies.
  • Reverse onus: The burden of proof lies on the business making the environmental claim.
  • Private rights of action for greenwashing claims: As of June 20, 2025, Bill C-59 allows private parties to directly bring actions for deceptive advertising before the Tribunal if they can demonstrate "public interest." This means individuals and businesses won't need to rely solely on the Bureau to address greenwashing complaints.

  Current status

  From July 22 to September 27, 2024, the Competition Bureau held a public consultation to gather feedback on these new provisions, aiming to develop clear enforcement guidelines.

  The written responses to the consultation on the Competition Act's new greenwashing provisions are publicly available on the Competition Bureau's website.

  These responses include feedback from a wide range of stakeholders, such as industry associations, environmental groups, businesses and individuals.

  The submissions cover various perspectives on the new provisions, including challenges and suggestions for effective implementation.

  On December 23, 2024, the Competition Bureau released a draft of its enforcement guidance regarding environmental claims.

  AAFC led a government-industry dialogue during which sector representatives shared views and concerns on the draft guidelines.

  AAFC subsequently shared comments and feedback with the Competition Bureau through the public consultation process which ended on February 28, 2025.

  The expansion of private access under the Competition Act, including for greenwashing claims, came into effect on June 20, 2025. This prompted revisions to the bulletin which clarify roles and responsibilities. To date, we understand that no complaints have been filed under these new provisions.

  Considerations

  Potential impact to the sector: New greenwashing rules may discourage legitimate sustainability claims in agriculture, especially around greenhouse gas emissions, due to fear of scrutiny. This could hinder authentic marketing efforts in Canada and reduce competitiveness in global markets where such claims face fewer restrictions.

  Increased legal risk to the sector: As of June 20, 2025, private parties can apply directly to the Competition Tribunal to challenge certain anti-competitive practices. The tribunal may also order violators to compensate affected individuals.

  Common concerns from the sector

  1. Lack of clarity and guidance: Many responses highlight the need for clear definitions and guidance on terms like "adequate and proper testing" and "internationally recognized methodologies."
  2. Complexity and diversity of methodologies: The evolving nature of environmental methodologies and the diversity of practices across different sectors make it challenging to comply with the provisions.
  3. Risk of frivolous claims: The potential for frivolous investigations and legal actions due to the reverse onus provision is a significant concern.
  4. Chilling effect on sustainability efforts: Fear of legal repercussions may discourage businesses from making environmental claims, hindering innovation and transparency.
  5. Need for sector-specific considerations: Different sectors, such as agriculture and food production, have unique challenges and practices that need to be considered in the enforcement of the provisions.

• Product eligibility for On-Farm Climate Action Fund

  • The Government announced more than $889.1 million for the Agricultural Climate Solutions with its Living Labs and On-Farm Climate Action Fund streams that together, will increase carbon sequestration and reduce greenhouse gas emissions and offer other positive environmental benefits.
  • In collaborating with the sector across Canada, Agricultural Climate Solutions supports farmers in adopting beneficial management practices that improve resiliency to climate change.
  • Specifically, the On-Farm Climate Action Fund supports producers in the immediate implementation of beneficial management practices in nitrogen management, cover cropping and rotational grazing.
  • Eligible practices under the fund were selected through published peer-reviewed Canadian studies that demonstrated the greatest potential to reduce greenhouse gas emissions or sequester carbon to reach the 2030 greenhouse gas reduction goals.

  When pressed

  What factors are considered when selecting eligible beneficial management practices (BMPs) in the On-Farm Climate Action Fund (OFCAF)?

  AAFC applies key principles to scientific assessments to ensure selected practices offer the greatest potential to reduce GHG emissions or sequester carbon to reach the 2030 greenhouse gas reduction goals. AAFC also considers the potential for co-benefits to soil health, water and/or air quality and biodiversity; that there is no negative impact on yields, etc.; as well as the potential for impact across a variety of regions and landscapes.

  Has the OFCAF program been responsive to the sector when considering new BMPs for inclusion?

  The program has been open to sector requests for inclusion of additional BMPs since it began. AAFC has reviewed multiple suggestions and conducted scientific assessments where published, peer-reviewed material was available. For example, in summer 2022, through sector engagement and a scientific analysis, Polymer Coated Urea was added to the list of eligible beneficial nitrogen management practices.

  Sector outreach was also conducted in late 2022 to solicit feedback on the current list of eligible practices and suggestions for new practices to be considered.

  Does AAFC have a process in place for considering new BMP addition to the OFCAF?

  AAFC has developed a transparent BMP review process for the OFCAF program. The evaluation criteria for new BMPs will remain grounded in science-based evidence and allow for input and feedback from the stakeholder community. Applications for new BMP additions will be reviewed twice a year. The sector will receive direct feedback from AAFC on the eligibility of submitted BMPs, furthering transparency and communication with the sector.

  Agricultural stakeholders were presented with this BMP review process in July 2023, with generally positive feedback provided, and it was officially launched in late December 2023.

  The science around different beneficial management practices continues to evolve. As we learn more, we will continue to review and update the practices that are eligible under the OFCAF program.

  Background — product eligibility for On-Farm Climate Action Fund

  First announced in Budget 2021, the originally $200-million On-Farm Climate Action Fund (OFCAF) is an approach to help farmers tackle climate change. The fund is part of the Government of Canada's Agricultural Climate Solutions initiative, which falls under the more than $5-billion Natural Climate Solutions Fund, a program managed by Natural Resources Canada, Environment and Climate Change Canada and Agriculture and Agri-Food Canada.

  In March 2022, former Prime Minister Trudeau and the former Minister of Environment and Climate Change announced the 2030 Emissions Reduction Plan, outlining a strategy to meet and exceed the Government's initial 2030 net greenhouse gas emissions reduction target of 30 percent below 2005 levels by 2030, and achieve net-zero greenhouse gas emissions by 2050.

  Through the 2030 Emissions Reduction Plan and Budget 2022, a $470-million investment in OFCAF was announced to top-up funding for some current successful applicants, to consider broadening support for additional key climate mitigation practices, and extending the program past its current end date, while still supporting the adoption of practices that contribute to the fertilizer emissions target and the Global Methane Pledge.

  OFCAF is part of a broader Government of Canada strategy of climate action in the agricultural sector including measures under the Government of Canada's Strengthened Climate Plan, through the 2030 Emissions Reduction Plan, and through the fund's links with the Natural Climate Solutions Fund. There exist a number of initiatives with incentives for adoption of on-farm practices that maximize GHG reductions and environmental co-benefits to help address environment and climate issues in the agricultural sector.

  The OFCAF program was initially launched on August 12, 2021, and supports farmers in adopting beneficial management practices that store carbon and reduce greenhouse gases, specifically in the areas of nitrogen management, cover cropping and rotational grazing practices. These practices also provide other environmental benefits such as improved biodiversity and soil health.

  Through Budget 2023, the Government of Canada announced an additional $34.1 million for Eastern Canadian producers who were subject to fertilizer market price increases in 2022. Farmers can access the funding through the OFCAF program to support the adoption of nitrogen management BMPs to optimize fertilizer use and reduce the need for fertilizers.

  Existing initial recipient organizations and selected eligible organizations in Saskatchewan and Newfoundland submitted project plans for the second phase of OFCAF which will run from April 2025 until March 2028. Funding decisions were communicated to those organizations in December 2024, and an announcement (News Release) was made on January 28, 2025.

  On January 28, 2025, the Government of Canada announced the expansion of OFCAF, which will provide an additional $300 million to 13 initial recipients in continuation of their efforts to help farmers become more climate resilient over the next 3 years, until 2028.

• Aspire Food Group into receivership

  • The Government of Canada is committed to supporting innovation and sustainable initiatives in the Canadian agriculture and agri-food sector.
  • In 2021, the Aspire project was approved for up to $8.5 million under AAFC's AgriInnovate Program to build a new cricket production facility in London, Ontario. The project aligned with the Terms and Conditions of the program in place at the time which included a $10 million project maximum. Starting on April 1, 2023, the maximum amount advertised was updated to $5 million on new applications.
  • Aspire also received funding from Farm Credit Canada (FCC) to support the implementation of this project. Aspire's cricket plant has been ordered into receivership, and both FCC and AAFC are named as creditors.
  • In response to an access to information request regarding Aspire Food Group, AAFC conducted a thorough search for records on interdepartmental communications regarding payments from other government organizations. No records on these specific questions were found. AAFC has disclosed prior records via access to information on Aspire.

  When pressed

  How much funding has been invested by AAFC to date?

  Aspire Food Group received $8.5 million in AAFC repayable support from the AgriInnovate Program in 2021. This program was part of the Canadian Agricultural Partnership, which ran from 2018 to 2023. The objective of the program was to facilitate the demonstration, commercialization and adoption of innovative agri-based products, technologies, processes, or services. The project aligned with the terms and conditions of the program in place at the time, including a $10-million project maximum.

  Why is Farm Credit Canada lending to companies that are also receiving government grants?

  Farm Credit Canada operates at arm's length from the Government and makes lending decisions based on commercial criteria. Government grants and contributions are managed separately. It is not uncommon for businesses to access both debt and support programs. AAFC's programs have provisions that allow recipients to receive funding from other departments, agencies and levels of government.

  Why did National Research Council Canada provide funding for this project?

  Contribution programs allow eligible applicants to seek funding from multiple sources at the municipal, provincial and federal level. This stacking of funding is capped to a certain level, depending on the program. The funding provided to Aspire Food Group was within the established stacking limits.

  What economic or business case analyses did the Government undertake before investing in the facility, and what are the results of those analyses?

  An evaluation was conducted against the program's assessment criteria, and AAFC officials determined that the applicant had the technical, managerial and financial capacity to undertake the project.

  All applications for funding received by AAFC undergo a rigorous due diligence review, and only projects that best meet the eligibility criteria and program objectives are selected for funding. This project was supported due to the novel application of various automation and continuous quality control technologies and processes, including proprietary growing habitats sensors, internet-based connectivity, artificial Intelligence systems and biological waste management.

  FCC applies due diligence and proper risk management to all loan applications. Unfortunately, despite that rigour there are times where a business is not able to meet its obligations and is required to make difficult business decisions.

  FCC plays an important role in providing access to capital that helps producers and agri-food businesses grow and adapt. FCC maintains a strong reputation as a responsible lender to the agriculture and food industry.

  What is the current market demand for insect protein, including specifically for human consumption?

  AAFC does not conduct studies or analyses on the production or human consumption of cricket protein. However, Aspire's project objectives were to build a new production facility primarily targeting the pet food market, while also considering human, biomedicine and the agrochemical markets. They had secured a collaboration with Royal Canin's headquarters in France with the intent of using their product to replace organic turkey and chicken proteins.

  What happens if a project does not meet its objectives?

  Projects funded by AAFC are closely monitored to ensure the terms of the contribution agreements are met. If issues arise, AAFC works with recipients to address them, upholding the goals and integrity of the program. If the recipient does not abide by the terms of the agreement, AAFC can place the company into default and undertake steps to recover the owed funding. In the case of Aspire's project, although the client did meet its agreed upon objectives, the company was placed into default in March 2025 to attempt to recover owed funds after they indicated they were unable to make further payments.

  Why did the Government of Canada not disclose information in response to an information request through the Access to Information Act and the Privacy Act?

  AAFC supports all eligible requestors with their right of access to information and ensures every reasonable effort is made to help applicants receive complete, accurate and timely responses in the format requested. In response to an access to information request regarding Aspire Food Group, AAFC conducted a thorough search for records related to the specific questions in the request. AAFC has disclosed prior records through access to information on Aspire, including the full release of the AgriInnovate program contribution agreement in 2022.

  Background — Aspire Good Group into receivership

  Aspire Food Group received an $8.5-million repayable contribution from AAFC on March 31, 2021, to build a new automated production facility for crickets in London, Ontario. Outstanding debt to AAFC as of May 21, 2025 amounts to $7.5 million. Farm Credit Canada lending is separate from government grant and contribution programs. Farm Credit Canada operates at arm's length from the Government and makes lending decisions based on commercial criteria. It is not uncommon for businesses to access both debt and support programs.

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

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

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

  It is Farm Credit Canada's policy to not comment on customer situations; however, Farm Credit Canada works with customers facing challenges on a case-by-case basis, always respecting privacy and confidentiality.

• AAFC's 2025–2026 Departmental Plan

  • The agriculture and agri-food sector is an important driver of exports and is key to supporting Canada's future economic growth. The Government of Canada remains committed to supporting the sector in its continued leadership in job creation and innovation.
  • The 2025–26 Departmental Plan outlines Agriculture and Agri-Food Canada's priorities with respect to economic growth, climate resiliency, supporting diversity and continued efforts to help farmers remain competitive. The Plan aims to capture new market opportunities, strengthen the sector's resilience, and remain a reliable partner in global food security.
  • Through initiatives such as the 5-year, $3.5-billion (2023–28) Sustainable Canadian Agricultural Partnership (Sustainable CAP) policy framework, the plan highlights departmental efforts to build a competitive, innovative and inclusive sector, and to position Canada as a world leader in sustainable agricultural production.

  When pressed

  What is being done to increase and diversify trade?

  The department will continue to advocate for Canada's agricultural trade policy interests, building an open, predictable, rules-based trading system, including by negotiating and supporting the implementation of 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 Canadian Agricultural Partnership.

  How are business risk management programs helping?

  Business risk management (BRM) programs help farmers to manage production risks and recover from adverse conditions. The department will continue to improve how our programs support better risk management for farmers, for example, by making the AgriStability program more timely, simple and predictable.

  We are also advancing a multi-year review to assess the impacts of climate change risks across BRM programs. The findings will ensure BRM programs are adapted to the new realities stemming from climate change, while supporting the fiscal sustainability of the programs.

  What is being done to support the supply-managed sectors?

  The Government continues to deliver on its commitment to help domestic producers and processors under supply-management to adapt to market changes resulting from the impacts of free trade agreements. Up to $4.8 billion has been committed and launched for Canada's dairy, poultry and egg producers and processors. This includes an investment of up to $333 million over 10 years under the new Dairy Innovation and Investment Fund to help the Canadian dairy sector increase its competitiveness and adapt to new market realities.

  What support is being done for other initiatives highlighted in the Departmental Plan?

  The department will continue to work towards reaching the target of $95 billion in agriculture and agri-food exports by 2028, including aiming to position Canada as a preferred supplier in the Indo-Pacific region, supported by the new Agriculture and Agri-Food Office under Canada's Indo-Pacific Strategy.

  We will continue to work with the sector to reach Canada's climate goals and deliver sustainable food. For example, the On-Farm Climate Action Fund, under the Agricultural Climate Solutions Program, will be extended to 2028 to help Canadian farmers reduce emissions through the adoption of nitrogen management, cover cropping and rotational grazing practices. The department will also continue to work on a Sustainable Agriculture Strategy and efforts towards a low-carbon economy and promoting sustainable growth in Canada's agriculture and agri-food sector will continue through the Agricultural Clean Technology Program.

  Why is planned spending for Domestic and International Markets decreasing over the next 3 years?

  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 Canadian Agricultural Partnership.

  Planned spending decreases over the next 3 years primarily due as a result of reduced planned spending for supply management initiatives and expiry of the Wine Sector Support Program.

  Background — AAFC's 2026–26 Departmental Plan

  The 2025–26 Departmental Plan outlines plans and performance expectations over the next three fiscal years under each Core Responsibility (Domestic and International Markets, Science and Innovation, and Sector Risk) of Agriculture and Agri-Food Canada's Departmental Results Framework.

  The 2025–26 Departmental Plan reflects a strong focus on efforts toward a more environmentally, economically and socially sustainable agriculture and food system.

  The 2025–26 Departmental Plan does not include Budget 2025 commitments, funding for programs and initiatives that are pending, or information on tax expenditures.

  The 2025–26 Departmental Plan reports that the Agriculture and Agri-Food Canada spending and human resources trends are as follows:

  Spending trend (in $ millions)

  2022–23 expenditures	2023–24 expenditures	2024–25 forecast spending	2025–26 planned spending	2026–27 planned spending	2027–28 planned spending
  3,606.5	4,163.4	3,997.8	3,935.7	3,650.7	3,405.9

  Human resources trend (in full-time equivalents [FTEs])

  2022֪–23 actual FTEs	2023–24 actual FTEs	2024-25 forecast FTEs	2025–26 planned FTEs	2026–27 planned FTEs	2027–28 planned FTEs
  5,045	5,073	5,145	5,149	5,111	5,064

  Spending trend explanation

  Over the period of 2022–23 to 2027–28, spending varies from a high of $4.2 billion spent in 2023–24 to a low of $3.5 billion planned for 2027-28.

  Actual spending in 2023–24 was higher than 2022–23 as it reflected:

  • increased requirement for support under the AgriInsurance, AgriStability, AgriRecovery and Advance Payments programs
  • increased spending for the Supply Management Processing Investment Fund, the Poultry and Egg On-Farm Investment Program and the Agricultural Clean Technology and Agricultural Climate Solutions programs
  • compensation adjustments due to the renewal of collective agreements

  This was offset by reduced spending for the Dairy Direct Payment Program.

  Forecast spending in 2024–25 is lower than 2023–24 as it reflects:

  • decreased requirement for support under the AgriInsurance, AgriStability, AgriRecovery programs
  • spending savings under the refocusing government spending exercise

  This is offset by increased funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP), the Poultry and Egg On-Farm Investment Program and the Supply Management Processing Investment Fund.

  Planned spending in 2025–26 is lower than 2024-25 as it reflects:

  • decreased funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP)
  • amounts carried forward in 2024–25 from the previous year
  • further spending savings under the refocusing government spending exercise

  This is offset by increased planned funding for the Dairy Innovation and Investment Fund and a statutory forecast increase for the Agricultural Marketing Programs Act.

  Planned spending in 2026–27 is lower than 2025–26 as it reflects:

  • decreased planned funding for the Dairy Direct Payment Program and, the Agricultural Clean Technology Program
  • a statutory forecast decrease for the Agricultural Marketing Programs Act
  • decreased planned funding for the Poultry and Egg On-Farm Investment Program
  • expiry of funding for the Fertilizer Program under the Emissions Reduction Plan
  • further spending savings under the refocusing government spending exercise

  Planned spending in 2027–28 is lower than 2026–27 as it reflects:

  • expiry of the Wine Sector Support Program and the Local Food Infrastructure Fund at the end of 2026–27
  • reduced planned funding for the Supply Management Processing Investment Fund and the Sustainable Canadian Agricultural Partnership (Sustainable CAP)
  • a further statutory forecast decrease for the Agricultural Marketing Programs Act
  • reduced planned funding for the Dairy Innovation and Investment Fund.

  Human resources trend explanation

  The increase in full-time equivalents from 2022–23 to 2025–26 is due to:

  • staffing required to support service delivery improvements and government priorities
  • increased support for supply management initiatives
  • a realignment among programs to better manage operational workload

  This was offset by the expiry of funding for the Advance Agricultural Discovery Science and Innovation Initiative at the end of 2022–23.

  The decrease in planned full-time equivalents in 2026–27 reflects a reduction in support for the Agricultural Clean Technology Program and for the Youth Employment and Skills Program and attrition and vacancy management under the refocusing government spending exercise.

  The decrease in full-time equivalents in 2027–28 reflects the expiry of the Local Food Infrastructure Fund and the Wine Sector Support Program at the end of 2026–27.

  Variances by core responsibility

  Domestic and International Markets

  2025–26 planned spending ($ millions)

  808.9

  ---

  2026–27 planned spending ($ millions)

  677.9

  ---

  Variance, 2025–26 to 2026–27 ($ millions)

  (131.0)

  ---

  Explanation for variance

  Decrease in funding for

  • Dairy Direct Payment Program
  • Poultry and Egg On-Farm Investment Program
  • Youth Employment and Skills Program

  ---

  2027–28 planned spending ($ millions)

  543.0

  ---

  Variance, 2026–27 to 2027–28 ($ millions)

  (134.9)

  ---

  Explanation for variance

  • Expiry of the Wine Sector Support Program and the Local Food Infrastructure Fund at the end of 2026–27
  • Decrease in funding for the Supply Management Processing Investment Fund

  Science and innovation

  2025–26 planned spending ($ millions)

  911.7

  ---

  2026–27 planned spending ($ millions)

  805.6

  ---

  Variance, 2025–26 to 2026–27 ($ millions)

  (106.2)

  ---

  Explanation for variance

  • Decrease in funding for the Agricultural Clean Technology Program
  • Expiry of the Fertilizer Program at the end of 2025–26
  • Spending savings under the refocusing government spending exercise

  ---

  2027–28 planned spending ($ millions)

  758.9

  ---

  Variance, 2026–27 to 2027–28 ($ millions)

  (46.7)

  ---

  Explanation for variance

  • Decrease in funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP)

  Sector risk

  2025–26 planned spending ($ millions)

  2,035.0

  ---

  2026–27 planned spending ($ millions)

  1,989.8

  ---

  Variance, 2025–26 to 2026–27 ($ millions)

  (45.2)

  ---

  Explanation for variance

  • Statutory forecast decrease for the Agricultural Marketing Programs Act

  ---

  2027–28 planned spending ($ millions)

  1,973.7

  ---

  Variance, 2026–27 to 2027–28 ($ millions)

  (16.3)

  ---

  Explanation for variance

  • Statutory forecast decrease for the Agricultural Marketing Programs Act

  Internal services

  2025–26 planned spending ($ millions)

  180.9

  ---

  2026–27 planned spending ($ millions)

  177.5

  ---

  Variance, 2025–26 to 2026–27 ($ millions)

  (2.5)

  ---

  Explanation for variance

  • Spending savings under the refocusing government spending exercise

  ---

  2027–28 planned spending ($ millions)

  175.3

  ---

  Variance, 2026–27 to 2027–28 ($ millions)

  (9)

  ---

  Explanation for variance

  • Expiry of the Wine Sector Support Program and the Local Food Infrastructure Fund at the end of 2026–27

• U.S. trade remedy action on mushrooms from Canada

  • We are disappointed that U.S. petitioners have chosen to request anti-dumping and countervailing duty investigations of imports of fresh mushrooms from Canada.
  • The Canadian mushroom industry produces high-quality products and remains a reliable and long-standing partner to its U.S. customers.
  • We are reviewing the allegations contained in the petitions and we will continue to support the Canadian mushroom industry.

  When pressed

  What has been the Government's response to U.S. industry requesting both anti-dumping and countervailing investigations of mushrooms from Canada?

  We are reviewing the allegations contained in the petitions and working with other federal government departments, provincial and territorial governments as well as the mushroom industry to ensure all are aware.

  The Government of Canada will work to defend Canadian programs and the Canadian mushroom industry against these allegations.

  What are the next steps?

  The United States Department of Commerce has 20 days from the filing of the petition to determine whether to initiate investigations into the alleged dumping and subsidizing (that is, October 6, 2025). This period can be extended by up to 20 additional days in "exceptional circumstances".

  Background — U.S. trade remedy action on mushrooms from Canada

  On September 16, 2025, the Fresh Mushrooms Fair Trade Coalition in the United States filed a petition with the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (Commerce), to initiate both anti-dumping and countervailing duty investigations actions against imports of fresh Canadian mushrooms.

  With respect to the countervailing duty investigation, the petition alleges that Canadian exports have benefited from a variety of government subsidies at both the federal and provincial level. With respect to the anti-dumping investigation, the petition alleges that fresh mushrooms from Canada have been dumped into the U.S. market.

  This investigation is specific to fresh Agaricus mushrooms (HS 0709.51.0100), which includes button mushrooms, chestnut mushrooms, cremini mushrooms, baby bellas, portabella mushrooms and table mushrooms.

  Commerce has 20 days from the filing of the petition to review and decide if it meets the thresholds necessary for the initiation of an investigation (that is, October 6, 2025).

  Canadian mushroom growers produced 148,569 metric tons of mushrooms at a value of $749.5 million in 2024. Ontario and British Columbia together account for 93% of national mushroom sales (Ontario, 63%; British Columbia, 30%). Manitoba, Alberta and Quebec also grow mushrooms.

  In 2024, Canada exported $512 million in fresh mushrooms, ranking second worldwide in value and third in volume. The U.S. is the top export determination for fresh mushrooms from Canada, accounting for more than 98% of export values. Although Ontario produces the largest volume of mushrooms, British Columbia accounted for 65% of the value of all exports. Canada accounted for 89% of the volume of U.S. imports of mushrooms of the genus Agaricus, worth $479 million.

  Canadian fresh mushroom exports were valued at $7.18 per kilogram in 2024 — the highest among the top five exporters worldwide of fresh mushrooms in terms of value— and well above the global average of $4.17 per kilogram.