Alberta Pulse Growers (APG) has confirmed 30.3 per cent of eligible producers’ 2025 check-off payment is eligible for the Scientific Research & Experimental Development (SR&ED) tax credit for their investment in APG-funded research and development projects.

WHY IT MATTERS: Agricultural producers need to know all the tax credits available to make their operation as profitable as possible.

How much can producers claim?

Producers are eligible to claim up to a maximum of 15 per cent for non-incorporated farm operations and up to a maximum of 35 per cent for incorporated operations of the determined 30.3 per cent.

Producers who have paid check-off this past year and have not asked for refunds are eligible claimants for this year’s credits.

How to apply for the SR&ED credit

For more detailed information about the Scientific Research & Experimental Development Tax Credit, APG advises producers to contact an accountant or the Canada Revenue Agency.

For a history of Scientific Research & Experimental Development visit the Alberta Pulse Growers website. Information about APG research investments in 2024-25 is also available on the website.

The federal Scientific Research & Experimental Development tax program is administered by the Canada Revenue Agency and encourages businesses to invest in and perform research and development in Canada.

The Scientific Research & Experimental Development Tax Credit application forms for individual producers and Canadian controlled private corporations can be downloaded directly from the CRA website.

About Alberta Pulse Growers

The Alberta Pulse Growers Commission represents 5,400 growers of field pea, dry bean, lentil, chickpea, faba bean, lupin and soybean in Alberta.

With five zones and a farmer-elected board of 12 directors, APG works to promote the benefits of pulses, both in sustainable crop rotations and as a key part of a healthy diet. Through strategic initiatives, the commission aims to enhance the sustainability, profitability and visibility of pulse production across Alberta.

The post Alberta pulse growers can claim tax credits on check-off dollars appeared first on Alberta Farmer Express.

But it should be.

“If you guys (at 25 years old or younger), put $100 a month away until you’re 65 … you’re going to have well over a million dollars,” Judy Bray, a financial adviser at Edward Jones, said during the Saskatchewan Young Ag Entrepreneurs conference.

These high earnings come from compound interest when the dollars are placed in a high-interest saving account, but the earnings will drop to less than half if the investor waits until they’re between 26 and 35 years old.

Starting investments young is of growing consequence as Canadian life expectancy increases, with the average now at least 20 years later than the retirement age of 65.

“If you pull your money out when you retire and you don’t have it invested according to risk tolerance and all that fun stuff, you don’t have it invested, there is no way that money is going to last you,” Bray said.

Often, young farmers or those looking to get their start in agriculture are focussed on taking on land, purchasing equipment and growing livestock numbers. These farm elements are future earnings, but first there’s debt and a financial risk.

Bray said a balance needs to be struck between risks taken and financial goals. To do so, there are a few main pieces to talk through.

Map out your field

The first is determining personal values and goals to establish a plan of savings and investing to provide reward for the right amount of risk, whether it’s planning for farm succession or a hot holiday.

“I go back to your plan, and say, ‘What is the least amount of risk that we can take on,’ ” Bray said.

“Then I’m going to tell you that you’re going to be able to achieve your goal at the end of the day. If we make extra money, that’s great. Means you get to spend more.”

“Spend more” doesn’t equal frivolous, but more toward goals such as travel, purchasing a house or taking next steps in taking over the farm.

Don’t put your eggs in one basket

The next step is diversification — and no, not buying livestock for the grain operation.

In this case, it means placing money in multiple investments of varying types. Investments can be owned, such as stocks and mutual funds, or where money is “loaned” for interest such as high-interest savings accounts, bonds or guaranteed investment certificates. The latter is the less risky investment.

“Those are the two big types that you can have, and you want to own some of both,” she said.

“Because how it works in the market, and the way that you build your risk tolerance out, is you want a bucket of each so when the market goes down, fixed income investments go up, and vice versa.”

She added that when someone is first starting out with “owned” investments, it’s important to stick to quality investments such as stocks.

It’s also important to focus on what’s within individual control because headlines and market concerns can be distracting. However, an adviser will help navigate the situation.

If you’re worried, talk to your financial adviser about what it means and if it should be of concern, Bray said. If it’s of concern, they’ll let you know.

Usually, these doom and gloom scenarios lead to improved outcomes down the line. Bray compared it to a clear-out sale.

“Think about when you walk into the grocery store to buy your groceries,” she said.

“If you walked in and every shelf in that grocery store was 25, 30, 40 per cent off, would you guys all walk back out and not buy your groceries that day?”

No, it’d be time to stock up and buy more than was planned. The market is the same.

On the other hand, if these steps have already been taken, preparing for a possible downturn is the next step.

Weather-proofing your assets

Preparation includes reviewing investment plans, preparing for the unexpected and maintaining balance between income and equity for goals.

Investment also means acknowledging current assets, which includes oneself. Bray encouraged young farmers in the room to boost their emergency fund with three to six months of income and to obtain life insurance.

“Basically, when you look at your income and what you bring to the table for the rest of your life, you are your most valuable asset,” she said.

It’s a piece that not many young people consider, but in an industry such as agriculture, with market volatility and a high risk for farming accidents on top of regular life, making sure life expenses, such as debt and property, are taken care of in the worst case scenario is particularly important.

Recruiting a trusted advisor

The final factor to taking charge of finances is choosing the right adviser to help create a plan.

“When we start thinking about your actual financial goals and what you want to achieve, that’s always where the conversation should start,” Bray said.

“You don’t just want someone to tell you what to do and what the right answer is.”

The post Planting the seeds for a million-dollar retirement appeared first on Alberta Farmer Express.

“We had budgeted a $786,000 loss. We ended up with a $643,000 surplus,” reported Charles Simoneau, vice-chair of the Alberta Canola board of directors.

He spoke at the Alberta Canola Annual General Meeting (AGM), held as part of the Crossroads Crop Conference in Edmonton Jan. 27.

WHY IT MATTERS: The Alberta Canola Producers Commission has been running on deficit budgets for most of the decade to date.

However, there were factors — not all of them beneficial — which put the producer group back in the black.

Service fee levies for producers came in around $250,000 higher than budgeted, said Simoneau, who pins this on producers holding on to binfuls of canola waiting for more favourable prices.

“A lot of the grain buyers in the room will tell you there was a flood of canola that was hitting the market in the first quarter and that was old production. So that’s part of the reason why our levies were up more in the budget.”

This was before the increased producer levy of $1.75 per tonne came into effect in August. Alberta Canola member growers voted to increase the charge by 75 cents in January 2025.

2024-25 research actuals came in at 1.2 million off a $1.4 million budget in that category. This was the result of some research projects coming in under budget at the same time others failed to get approval, explained Simoneau.

“There’s a whole due diligence process around research, not just throwing good money after bad,” he said.

“There’s a very, very, very strong selection process. So we are constantly looking for research but it’s got to be the right research for the right reasons.”

Another cause for the surplus was a major change to Alberta Canola’s contribution to its umbrella organization, the Canola Council of Canada. Although budgeted for $800,000, this fee was ultimately just short of $500,000 based on matters related to the national organization’s change in strategic framework in July.

Although the surplus was welcome, it ultimately came with the loss of some benefits, said Simoneau.

“(We had a) $250,000 higher revenue figure, $290,000 less of research, $200,000 (sic) less in the Council of Canada due to the changes, and then some lower-than-expected funding in programs that we weren’t expecting.”

The post Mixed bag of factors drive Alberta Canola surplus for 2024-25 appeared first on Alberta Farmer Express.

Leading up to that day, media outlets reported “workforce adjustment” notices coming for multiple departments, with AAFC among them. When, and how many jobs lost for agriculture? The closest thing to an answer I could find the night before appeared to be a letter to AAFC staff from the department’s deputy minister, copied and posted to Reddit by a third party on the CanadaPublicServants subreddit.

There was no reason to doubt its accuracy, but the idea of relying on Reddit as a sole sources makes any good journalist squirm. Fortunately, our national affairs reporter, Jonah Grignon, was able to get confirmation from an AAFC source on Jan. 22 that the letter was correct: about 665 positions were to be cut, with notifications going out to affected employees that day.

Later the same day, though, we began seeing more posts from third parties on social media, this time that federal research farms and facilities would be closing. From the federal government itself though? We got only crickets.

Most of our staff were still out Jan. 23 confirming where job cuts and facility closures are to happen at all.

A single federal press release or public statement up front would have made our jobs way easier and freed up time to ask the deeper questions: how will these cuts affect farmer-facing services and research?

More to the point, it would have given some much-needed certainty rather than abdicating the conversation to spiral into speculation and rumour.

This isn’t necessarily to suggest there shouldn’t have been spending cuts. After the last federal budget rolled in November, we all knew there would be cuts — just not the where, when or how.

Nor is it to suggest federal officials had nothing else important to do. That week in the news included the prime minister’s remarkably consequential speech at the World Economic Forum in Davos, and the cabinet retreat in Quebec right afterward, ahead of the House of Commons coming back Jan. 26 from adjournment.

But Canada’s government is a big organization and can do more than one thing at a time. On Jan. 22 alone, it publicly announced a funding extension for the Manitoba Farmer Wellness Program, funding for subway train manufacturing in Quebec, a new Competition Bureau report on businesses’ use of “algorithmic pricing,” seizures of contraband at the federal penitentiary in Kingston and that a National Film Board-funded short film is up for an Oscar.

My point is, the Liberal budget firmly declared a dual agenda of building a more versatile Canadian economy while “spending less to invest more” and pursuing responsibility through this “comprehensive expenditure review.”

Yet when workforce adjustment and closure notices went out nationwide, affecting thousands of workers’ lives and communities, the government chose not to get out in front of its cuts at all — even if just to try and keep control of its own messaging.

The government’s budget trumpeted its commitment to fiscal responsibility by cutting $60 billion in spending over the next five years. It’s not to much to ask that, once a course of action is set, the Liberals at least try to own their own decisions.

The post Government silence loud on AAFC cuts appeared first on Alberta Farmer Express.

The culprits behind the outlook include the ongoing trade war with the U.S., underused trade deals with other trade partners, and high-rate mortgage renewals.

WHY IT MATTERS: Canada’s economy, agriculture included, is till trying to navigate volatile seas when it comes to trade and geopolitics, impacting projected farmer profit margins, investment and gr0wth prospects in the agriculture sector and more.

Krishen Rangasamy, principal economist with FCC, spoke at the farm lending company’s 2026 Economic Outlook Jan. 22.

“I understand that what we’re saying here is quite different from consensus on interest rates, because most forecasters are predicting either no change to the overnight rate or even an increase later this year,” said Rangasamy.

“That may well be the right forecast if the economy picks up materially. But … we think economic growth will weaken this year and and, if we’re correct about that, additional stimulus by the central bank should not be ruled out.”

Uncertain economics reign

Uncertainty over the future of the Canada-United States-Mexico Agreement (CUSMA) will continue to be a limiting factor, he said. Rangasamy also doesn’t see the threat of U.S. tariffs going away anytime soon.

He suspects Canadian exporters in CUSMA’s tariff-free categories such as farm, fishing and intermediate food products have felt above-expected tariff impacts due to confusion over rules of origin requirements, losing their CUSMA compliance in the process.

“Remember that the majority of our exports to the U.S. is tariff-free thanks to CUSMA, and yet, outside of the energy sector, our exporters have really struggled since the U.S. tariffs were imposed,” he noted.

Tariffs that have been placed on Canadian goods have caused U.S. importers to look elsewhere. This has caused Canada’s share of the U.S. market to drop to 11 per cent — its lowest ever — in 2025.

Although Rangasamy considers Canada’s attempts to diversify trade partners commendable, he’s disappointed in the country’s apparent inability to “materially reduce” dependence on the U.S., in light of its 15 free trade agreements with 51 countries.

“We’re not capitalizing on opportunities presented by those trade deals,” he said, citing ignored opportunities presented by the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

That agreement was designed to offer Canadian businesses preferential access to the EU market. But some expected big winners when the deal was first inked have failed to see major gains, particularly meat sectors who say regulation conflicts continue to keep them out.

“Over the last eight years (EU) exports grew by 40 per cent to Canada. Our exports to the European Union have barely budged over that eight-year period,” he said. “So we’re struggling to even take advantage of the trade deals we’ve got already.”

Leveraging the house

This year will also see a large share of Canadian households renewing mortgages at higher interest rates than their origination. According to Bank of Canada estimates, mortgage payments will increase by an average six per cent this year.

“Those households that are renewing their fixed-year, five-year mortgage — which, by the way, is the most popular mortgage product in the country. For those folks, payments will increase by about 20 per cent,” outlook listeners heard.

If there’s a bright spot for Canada, Rangasamy said it’s the federal government’s new focus on ambitious public projects that could rekindle business investment. But don’t expect big results too soon.

“It’s probably not a 2026 story. It’s probably something more like next year or even 2028.”

Note: An earlier version of this article reported that FCC had forecast GDP to fall, rather than for expected growth to slow. We further put Canada’s free trade deal numbers at 51. Canada has 15 trade deals with 51 countries. Glacier FarmMedia regrets the error.

The post Canadian GDP growth slow down expected in 2026, FCC says appeared first on Alberta Farmer Express.

The Bank of Canada recently called the Canadian economy resilient in the face of trade woes and kept its key policy rate steady at 2.25 per cent. It noted that third quarter annualized GDP grew by 2.6 per cent, much more than expected.

However, a recent FCC report predicts Canada’s economy decelerating due to factors like interest rates, ongoing trade uncertainty and voluntary country of origin labelling (vCOOL).

“The message there was basically that maybe there’s a little bit of complacency in the markets,” said Krishen Rangasamy, FCC’s principal economist and the report’s author.

Interest rates

He said there is a chance interest rates will go down next year. This is likely to affect farmers, who are heavy borrowers. The report cites several complications for residential construction, which accounts for about eight per cent of Canada’s economy.

“Even though the Bank of Canada, in our view, should probably lower rates next year … long rates are probably not going to change a whole lot from here.”

Rangasamy said this is related to Canada’s bonds being closely linked to U.S. treasuries.

“’Oh, the Bank of Canada is lowering rates. Why isn’t my mortgage rate falling? I’m about to renew, and it’s still high.’ Well, then that’s the answer, right? So, you’re borrowing at the long end of a yield curve, not at the short end.”

The five-year bond rate is at three per cent. Five years ago in 2021, it was one per cent.

“Which tells you if you originated five years ago in 2021 and you’re going to renew in 2026 what’s going to happen? You’re going to renew at a higher rate, a way higher rate than what you originated at,” said Rangasamy.

“Whoever is going to renew next year a fixed rate product at the longer end of a yield curve, it’s going to be painful.”

Business confidence decreasing

Investment intentions over the next year are also predicted to drop, as the report shows business confidence decreasing in Canada.

The cloud that is uncertainty with the U.S. is expected to continue to cause problems.

“At the moment it looks like it’s going to stay there for 2026,” Rangasamy said.

The report predicts that “as the impact of the AI investment boom fades, cracks formed by the White House’s policies on tariffs and immigration will become more visible stateside.”

This could lead to a drop in demand for exported Canadian goods, 70 per cent of which are purchased by the U.S.

“Any drop in U.S. demand will have repercussions on this side of the border,” the report states.

One factor could help ease trade tensions: negotiations on the Canada-United States-Mexico Agreement (CUSMA) are set to begin next summer. Rangasamy said it is possible, even likely CUSMA will be renewed. Until anything is certain, the cloud will linger.

“That’s one of the reasons we’re not that optimistic about the rebound of business investment in Canada,” he said. “One thing businesses don’t like is uncertainty, and that U.S. trade policy is certainly wreaking havoc in that regard.”

Country of origin labelling

Another potentially aggravating factor is voluntary country of origin labelling (vCOOL) rules in the U.S., set to come into effect Jan. 1.

Canadian commodity groups say the vCOOL ruling could limit their access to American markets.

“There’s anecdotal evidence and some newspaper clippings that some farmers are already seeing a drop in demand from the U.S. ahead of that vCOOL being implemented,” said Rangasamy.

He said previous similar regulations harmed Canadian agriculture, particularly the hog sector.

Mandatory country of origin labelling (mCOOL) “went away in 2015, and we recovered a little bit, but we never went back to pre-mCOOL (mandatory country of origin labeling) levels,” he said.

“If you look at history, there’s a precedent where U.S policy basically causes permanent damage, even if it was it was removed afterwards,” he said. “If you take this as a guide, well, that’s not a great sign.”

Weathering the storm

Though FCC’s forecast may look dire, Rangasamy said it is “not all doom and gloom” and offered some suggestions for producers in the year ahead.

The first piece of advice is to boost productivity as much as possible.

“Make sure you’re lean, because … you’ll be in a better position to weather the storm,” he said. “You can’t control the external forces. What you can do is control your operation. So stay lean, seek productivity improvements wherever you can.”

Knowing costs of production is also crucial, as it can help producers take advantage of market movements. Rangasamy used the recent volatility of canola prices as an example:

“Markets sort of overreacted for two, three months,” he said. “Let’s say you’re a canola producer, so you know what your cost of production is, and as soon as you see prices go up and up towards a certain level, you say, ‘hey, I can lock this in.’”

“All this is a good thing, but also very important is to know your cost of production, to take advantage of volatility, because there’s always volatility in commodity markets, but more so with trade policy.”

The post FCC forecasts rocky financial year, points to waning confidence, vCOOL, interest rates appeared first on Alberta Farmer Express.

Productivity, or the measure of how efficiently inputs translate into outputs, is strong in Canada, but it has stalled recently, dropping to 1.3 per cent in the 2010s and projected to sink to 0.8 per cent through 2030. If Canada can reverse this decline, it could create $30 billion in farmer income in the next decade.

WHY IT MATTERS: Levels of productivity in Canada are decreasing. With some tweaks from producers, government and industry groups, that trend could be reversed.

FCC thought leadership manager Craig Klemmer said increased productivity comes either through reducing production costs or increasing output.

“The combination of that is going to mean more farm income,” he said.

“The idea is that over the next decade, we would have an additional $30 billion in farm income for … crop and livestock producers in Canada.”

This would average out to roughly $150,000 for the average-size Canadian farm, more or less depending on the size of the operation.

“It does mean real dollars into the pockets of producers, because they’re the ones that are going to have the lower cost of production, or they’re going to have increased output.”

Klemmer said there is no single strategy that will fit every operation. The report identifies three main pathways through which producers can boost productivity growth.

The first is improving technical efficiencies.

“That’s really very much around management, using data-driven decisions,” said Klemmer.

“Getting more information … from participating in producer events in the local area, getting education and challenging the standard or the norm of what you’re doing and applying some of those pieces onto your farm.”

It also involves having access to timely data.

The second key point is about capturing economies of scale and targeting investments that can enhance efficiency.

“This doesn’t necessarily mean bigger is better,” Klemmer said.

“It’s about buying the equipment that you need for the job that you’re planning to do, as well as for what works within your business plan.”

“If you’re going to be combining wheat and canola, for example, or if you’re going to be doing corn and soybeans, what is the combine that you require for the operation and (what is) the right-sized equipment? You don’t necessarily need the biggest one out there with all the bells and whistles that are going to use more fuel; cost more money.”

The third point is about fostering innovation and incorporating innovations to improve management decisions on the farm.

“Find efficiencies in your operation. Make it so that you can do more with what you have.”

“On that side of things, it’s really about being curious,” he said. “Seeing what’s out there, making decisions that are going to bring real returns to your operation.”

The report is presented as a call to action for producers, but Klemmer said the responsibility to increase productivity could also be shared by governments and industry groups.

“When it comes to management decisions, it’s about farmers being curious and working with other people in their area and learning about what’s out there,” Klemmer said.

“And then it’s on everybody to continue to invest in agriculture so we continue to find these things,” he said.

“When we look at things like improving management and improving information, it’s a whole value chain creating that.”

For those farms with less capital to invest in innovative technology or skilled and educated workers, as the FCC report recommends, Klemmer said there are still options to boost productivity.

“Having a good business plan so you can be informed about the decisions you’re making is a starting point.”

“There’s a lot of things out there that are free,” he said.

“When you go to the innovation farms, for example, or technology farms … those are often free to go to, and it’s just about being curious and putting the time in to learn about those.”

A key part of maximizing efficiency is knowing your own finances, knowing your operation and being realistic about expansion and transition planning.

Klemmer said this could be an opportunity not just for the agriculture sector, but for the Canadian economy as whole.

“Generating this additional income for farmers is also driving GDP growth for … all Canadians,” he said.

“The agriculture and food sector is a key and foundational part of the Canadian economy, and making these investments as a country, as an industry, to drive productivity growth, it’s not just going to benefit producers … it’s also going to really enhance and promote Canada and our overall economic opportunities.”

The post Boosting productivity could mean historic farm revenues appeared first on Alberta Farmer Express.

This was one of the resolutions passed at the NFU’s annual general meeting in Moncton, N.B., Nov. 19-21.

“The idea of a guaranteed annual income pilot came from our Prince Edward Island membership. Part of the reason for that is in P.E.I., they’ve been kicking around this basic income guarantee idea for a few years provincially,” said Phil Mount, vice-president of policy with NFU.

“It’s been front and centre for them, and they’ve come up with the idea of a guaranteed annual income for farmers, specifically as a pilot project we should take on,” said Mount, who has a sheep farm and is based in Ottawa.

A guaranteed income would stabilize farmers’ incomes, which are often unstable.

“We have a long history with the NFU of supporting guaranteed annual income,” he said.

Challenging economics

In 2016, the NFU outlined a resolution for a basic income guarantee, but that was a Canada-wide, basic income guarantee support.

“This one is specific to farmers, and it’s basically meant to acknowledge the difficulties that farmers face, particularly new and young farmers getting into farming. That’s a critical area that we need to address,” said Mount.

The average age of farmers, across any Canadian province, is 56 years old.

Mount said the first 10 years of farming are critically important for setting down roots and expanding a business enough to make it stable and resilient for the long-term. Farmers currently must deal with rising input costs, as well as the rising cost of land.

“The price of land, pretty much now in every province, has been disconnected from basically the returns you’re going to see from that farmland. It’s no longer agricultural land tied to the price of growing crops. On that land, it’s been a complete disconnect now,” he said.

Mount said rising farmland costs have accelerated over the past 10 years. Prices were astronomical in Ontario in 2015, but now prices have jumped in Alberta and Saskatchewan too.

It’s even more challenging for farmers renting farmland.

“If you’re renting, you’re not putting that money into an asset that you’re going to have long term,” he said.

Paying for land has the additional benefit for farmers, as the money they are investing will come back eventually.

“That’s what the generations that went before have been relying on. You don’t have to make an incredible profit every year. You can put money back into your business and keep it viable, because you know you’re got that retirement income in the asset of the land,” he said.

Pilot specifics to be determined

The next step for the NFU in their attempt to secure a guaranteed annual income of $50,000 is to nail down the practicalities of the program.

Mount said the group needs to be prepared to speak with government, civil servants and other leaders across the country. Both federal and provincial governments will need to be involved, he said.

“We could be looking at a provincial pilot somewhere. We could even be looking at a very local pilot project somewhere. We’ve had some local basic income guarantees in this country, so that might be an option as well. I guess what we are looking to do is iron out some of the options, talking with folks about this and talking with our allies in other sectors because it’s not an idea that is unique to farming,” he said.

Mount said he does not know when the NFU will approach the government, as they are still working with their own policy committees. People are already paying attention to the idea.

“There’s a huge amount of interest in this guaranteed annual income pilot from across the media spectrum,” he said.

Mount said the idea of a guaranteed basic income could have an opportunity for nation building projects in food and agriculture, particularly in regional infrastructure, that would allow farmers to feed their own communities and regions.

“We’ve lost of much of our regional infrastructure to just transport and store and sell food within our regions and provinces. There’s a nation building opportunity here, and I think tying this project to that is a piece that would resonate for folks,” he said.

Capping grocery profits

The media has also shown interest in another resolution passed at the NFU AGM.

The resolution proposes a concept of capping the profit of grocery chains.

“This links in because we did a report this year on what we call the ‘farmers’ share,’ which is looking at the research on what proportion of the share of prices that consumers pay at grocery retail gets back to farmers. That’s another piece of this viable farm income. We’ve seen this disconnect in the last 50 years between the incredible efficiencies farmers have created allowing them to produce more and more with less and less,” he said.

But at the same time, farmers are receiving less of the consumer dollar.

Members voted to lobby Ottawa for a cap on the profits of the major grocery chains, such as Sobeys and Loblaws, which have a monopoly on the market.

The post National Farmers’ Union proposes guaranteed basic income for farmers appeared first on Alberta Farmer Express.

• The budget includes about $1 trillion in investment and posts a deficit over $78 billion.
• The government set a goal of doubling non-U.S. exports over 10 years.
• The federal government proposes to increase the AgriStability compensation rate to 90 per cent from 80 per cent and the payment cap per farm to $6 million from $3 million.
• The Advance Payments Program for canola will see $97.5 million spent over two years to increase the interest-free limit on advances to $500,000 for the 2025 and 2026 program years.
• Agriculture and Agri-Food Canada will wind down, streamline or realign some of its research to better fit government priorities. Agricultural Climate Solution Living Labs will be phased out.

The 2025 federal budget puts a hefty focus on trade diversification along with pledged investments into biofuel production and increased business risk management supports.

The “Canada Strong” budget is touted as a “plan to transform our economy from one that is reliant on a single trade partner, to one that is stronger, more self-sufficient, and more resilient to global shocks” in a federal news release.

It boasts some $1 trillion of investments. It also posts a $78.3 billion deficit.

Investments in transport and trade diversification

The Carney government pledged several efforts to guide Canadian exports, including agri-food, away from overreliance on the American market.

“Canada’s trade remains heavily concentrated with a single partner: the United States,” the budget document says. “At the same time, Canada has significant untapped potential to diversify its trade.”

The budget sets a goal to double non-U.S. exports over 10 years. It says this will generate $300 billion more in trade.

This goal includes a new strategic exports office at Global Affairs Canada, which aims to pave the way for Canadian companies and international business opportunities.

The Asia-Pacific region will be an area of particular focus for Canadian exports going forward, which the budget identifies as a “critical market for Canadian agriculture.”

The government pledged $5 billion over seven years toward a trade diversification corridors fund through Transport Canada, beginning in 2025-26.

It also promised an additional $68.5 million over four years to enhance CanExport, which encourages small and medium-sized businesses to find markets abroad by sharing the costs of international business development activities like legal expenses and market research.

Aside from Asia, the budget also promises new trade efforts in the European market, including $8 million over four years to Global Affairs Canada to deepen trade relationships with European partners, beginning in 2026-27. This same period will also see $20 million to enhance the agency’s capacity to negotiate and implement trade investment-related agreements.

Despite challenges from export markets, the budget notes Canada’s domestic-facing sectors have been faring well. It gives credit to Canadians intentionally redirecting spending to domestic industries.

Direct investments in agriculture programs

The budget promises to help Canada’s agriculture sector to “adapt and respond to economic challenges and a shifting trade environment, while positioning them to take advantage of new opportunities.”

One major investment is in the AgriStability program, where the compensation rate will be increased from 80 per cent to 90 per cent and the payment cap per farm raised from $3 million to $6 million. The government will also work to will identify barriers underrepresented groups face in accessing farm financing.

The Advance Payments Program for canola will see $97.5 million spent over two years to increase the interest-free limit on advances to $500,000 for the 2025 and 2026 program years. In September, the federal government announced it would temporarily increase the interest-free portion to $500,000 from $250,000 to help farmers facing market disruptions due to Chinese tariffs on canola.

The AgriMarketing program has $75 million earmarked to enhance diversification and promotion into new markets over five years, starting in 2026-27.

The biofuel sector will be another recipient of government investment. In a move telegraphed earlier this year, $372 million over two years will go to a Biofuels Production Incentive to support domestic biofuels producers beginning in 2026. This repurposes $175.2 million from the Clean Fuels Fund.

The government also said it intends to amend the Clean Fuel Regulations to support the domestic biofuels industry.

Changes within government bodies

Agriculture and Agri-Food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) are set to see changes and streamlining.

AAFC will reorient programming, research and expenditures to better align with the government’s overall priorities. This will include phasing out programs outside the core mandate like the Agricultural Climate Solution Living Labs and reducing scientific activities where a “more streamlined approach can be taken.”

The budget proposes several measures withing CFIA to support increased food exports, including modernized trade tools to simplify processes and reduce the risk of errors and product safety concerns overseas.

CFIA will also receive $32.8 million over four years, beginning in 2026-27, to “secure, expand and restore market access for Canadian agriculture and agri-food, fish and seafood sectors,” including looking to other countries for new trade agreements and better market access.

Other investments and projects

The budget included several other projects and legislative changes which could support the agriculture sector. They include:

• An amendment to the Farm Credit Canada act which would require regular legislative reviews to ensure alignment with the needs of the agriculture and agri-food sector.
• “Winding down mechanisms to return direct fuel charge proceeds to Canadians, small- and medium-sized businesses, farmers, and Indigenous governments,” following the cancellation of consumer carbon pricing.
• Nation-building projects to expand trade corridors, including upgrades the Port of Churchill.
• Consideration to invest in projects like ports in Quebec, rail lines in Alberta and rail infrastructure on the West Coast.
• A proposed extension of the 2005 agricultural cooperative tax rules to apply in respect of eligible shares issued before the end of 2030.
• The Contrecoeur Terminal Container Project, which will expand the Port of Montreal’s capacity by approximately 60 per cent to boost Eastern Canada’s trading infrastructure, to be completed in the first round of major nation-building projects.

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“It must be sustained. You can’t come on a Team Canada mission and come back in two years time,” said Andrew Powell.

Powell, the chief executive officer of Singapore-based consultancy firm Asia BioBusiness, spoke at a workshop on breaking into the Asia-Pacific market at Protein Industries Canada’s annual conference in Winnipeg Sept. 24.

The Association of Southeast Asian Nations (ASEAN) comprises the Philippines, Singapore, Thailand, Indonesia, Vietnam, Malaysia, Cambodia, Myanmar, Laos and Brunei. Together, they represent one of the fastest-growing markets worldwide.

The region’s agri-food imports from all trading partners grew by an average of US$65.9 billion to $116.8 billion, or about six per cent per year, according to a 2023 report from the Canada-ASEAN Business Council.

Canada underperforms

However, Canada’s trade with ASEAN has fallen short of its potential, the council said. It called trade negotiations with ASEAN and Indonesia a crucial first step, but also called for a more comprehensive strategy.

Canada launched the Indo-Pacific Strategy in late 2022 and the ASEAN-Canada Strategic Partnership in late 2023. Canada also opened its Indo-Pacific Agriculture and Agri-Food Canada office in Manila, in the Philippines, in February of 2024 — a move that was praised by agricultural groups.

In late September 2025, Canadian and Indonesian governments signed the Comprehensive Economic Partnership Agreement (CEPA) trade agreement. Canada’s international trade minister Maninder Sidhu said bilateral trade with the Asian country could double within six years.

Sustained, targeted effort

“We just haven’t had that sustained commitment over the last 20-30 years I’ve been in the region,” Powell said.

“One minute we’re focused on China, next minute we’re focusing on Eastern Europe or European markets.”

Without a sustained commitment, said Powell, Australia will out-compete Canada.

Building a presence in the region requires regular, face-to-face meetings, he noted. Relationships must be maintained with visits every three to four months to ensure visibility. Face-to-face meetings are the only thing that will work.

“When you come out to Asia, you’ll be having the red carpet rolled out for you,” he said. “But as soon as you get off that carpet and come back home, that’ll be rolled up.”

“You’ve got to come back regularly, stand on that carpet … so it’s always in place for you.”

When you’re not there, you can employ people to keep up your visibility, Powell added.

Build a Canadian brand

“Bring the awareness of the Canadian products and crops and the technologies in front of the Asian consumer,” suggested Xiuling Guo.

Guo is chief executive officer of Nurasa, a Singapore-based food innovation and commercialization firm. This August, Protein Industries Canada inked a deal with Nurasa to help Canadian companies break into the Asia-Pacific market.

“They need to see you often,” she said.

In her view though, this doesn’t necessarily mean physical travel to the region. Rather, Canadian businesses need to work on branding and marketing.

Australian agriculture isn’t better or more efficient than Canada’s, said Guo. However, Asian consumers have a “nice perception of the Australian-made products.”

Canadian companies need to think about what image they want Asian consumers to associate with Canada, she stressed.

Think beyond trade

Canada also needs to think beyond trade and get deeper engagement in the region, said Powell.

“The Brits do it, the Aussies do it, the Kiwis do it, the Europeans do it,” he said.

For instance, Canada can support the regulatory environment in the region. The Canadian Food Inspection Agency (CFIA) is doing this through Canada’s Manila office, Powell noted.

Canada can also look to support technology adoption and to build research and development partnerships, he added.

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