Question Period Note: SUPPORT FOR YOUNG FARMERS AND YOUTH

Q1- What projects have supported young farmers and youth? Q2 – How else is the Government supporting young farmers and youth?

R.1 - Under Sustainable CAP, Agriculture in the Classroom is receiving more than $2 million over the next three years to bring agriculture to classrooms across Canada to help children better understand where our food comes from.

In addition, 4-H Canada is receiving $1.94 million over the next three years to support its work with Canada’s rural and agricultural youth.

Further, Canada's Outstanding Young Farmers is receiving more than $230,000 over the next three years to help recognize young farmers and encourage mentors across the agriculture sector to share their knowledge to benefit everyone. R.2 - We are giving youth and young famers 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.

Also, AAFC’s Youth Employment and Skills Program will contribute approximately $13.5 million in 2024-25 to provide assistance to employers in the sector who hire youth in agriculture jobs.

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 (i.e., 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 five-year, $3.5 billion federal-provincial-territorial investment to strengthen and grow Canada’s agriculture and agri-food sectors with simplified and streamlined programs and services that are easier to access; improvements to programs that help producers manage significant risks that threaten farm viability; $2.5 billion in federal-provincial-territorial cost-shared strategic initiatives that are designed and delivered by the provinces and territories and cost-shared 60/40 federally/provincially and territorially; and, $1 billion for federal activities and programs.

AgriDiversity Program

The AgriDiversity Program is a five-year $5 million program that aims to help Indigenous Peoples and other under-represented and marginalized groups in Canadian agriculture, including women, youth, persons with disabilities, racialized persons, visible minorities, 2SLGBTQI+ communities, and official language minority communities to fully participate in the sector by helping these groups address the key issues and barriers they often face for sector participation.

The program will help to strengthen the sector and build its capacity by:

helping diverse groups to better develop their skills to take on a greater leadership role

building the entrepreneurial capacity and business skills of under-represented groups

facilitating the sharing of industry experience, best practices and knowledge to help under-represented groups to manage transformation and adapt to changes in business operations

strengthening the sector by incorporating the views of a greater diversity of industry players

AgriCompetitiveness Program

The AgriCompetitiveness Program, a five-year, $25.7 million program which provides funding towards a number of activities aimed at young and beginning farmers through organizations such as Agriculture in the Classroom, 4-H Canada, Farm Management Canada and Canada’s Outstanding Young Farmers’ Program;

Eligible activities focus on networking and training opportunities that provide young farmers with tools to assist them with transitioning, adapting and improving their business’s profitability within an environment that builds collaboration.

Farm Management Canada is undertaking a project focused on succession planning which is comprised of a series of succession and transition planning workshops for farm families, coupled with a successor development program, exclusively for young farmers. This will allow young farmers to take part in key industry events dedicated to farm business management and more importantly, taking over the farm.

Other AAFC Programs:

Youth Employment Skills Program

AAFC also offers the Youth Employment and Skills Program (YESP), which is part of the Government’s broader Youth Employment and Skills Strategy. The YESP provides a wage subsidy to employers who hire youth who are 30 years or younger for agricultural jobs. The program offers support for 50% of wages to a maximum of $14,000. Additionally, the program offers an additional $5,000 is available to cover the costs of addressing barriers for youth facing barriers to participate in the work sector, such as to help cover childcare costs or accessibility equipment for youth with physical disabilities. The YESP also offers more favourable cost-sharing for certain youth, such as for Indigenous youth, where the Program will support 80% of total eligible costs. For this year (2024-25), the program has a budget of $13.5 million and is expected to help about 1000 youth. AAFC is currently working with Employment and Social Development Canada and other partner departments to secure funding for next fiscal year.

Poultry and Egg On-Farm Investment Program

The Poultry and Egg On-Farm Investment Program, 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’ level of quota. However, in an effort to better help younger farmers, the program may provide up to 85% of eligible project costs for young producers who are 35 years or younger.

Agricultural Clean Technology Program

As part of the Government of Canada’s strengthened climate plan, 2030 Emissions Reduction Plan: Clean Air, Strong Economy, the new 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 (GHG) 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 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 (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA). 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 $267 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 $367 million per year.

AgriInsurance provides insurance protection against production declines caused by natural hazards or disasters. It provides support largely to crop producers, averaging over $1 billion per year since 2013, 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. 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 (2019-2023), the APP provides 19,880 participating producers with annual advances totaling $3.17 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 (e.g., trade issues, market issues, etc.).

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 twenty-three 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.

Past Youth Council meetings have included discussions on topics such as 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 – 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;

Farm Credit Canada offers free learning programs on succession planning; and

The Lifetime Capital Gains exemption facilitates intergenerational farm transfers by allowing up to $1 million to be claimed when a farm property is sold.

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.

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, equipment purchase, etc.

Alberta’s Youth Agriculture Education Program, under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) which is cost-shared 60/40 federally/provincially, funds entities such as post-secondary institutions, school districts, agricultural societies and not-for-profits to support the development and delivery of agricultural education programs. The expenses of the program are shared on a 50-50 split between the government grant and the applicant.

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.

British Columbia's Business, New Entrant, and Workforce Development program is under the Sustainable CAP and is cost-shared 60/40 federally/provincially. The program helps reduce barriers for new entrants into the sector by providing training and education on business and sustainability best practices, thus enhancing sector growth and capacity.

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.

Youth and young farmers are the future of the agriculture and agri-food sector.

We support youth, as well as young and beginning farmers, through initiatives that promote their participation in the sector and help them access tools and programs to be competitive in the sector.

Youth and young farmers are eligible for a more favourable cost-share ratio under specific programs.

Under the Sustainable Canadian Agricultural Partnership, Agriculture and Agri-Food Canada provides financial support through the AgriDiversity and AgriCompetitiveness programs for projects that help under-represented groups, including youth, to fully participate in the agricultural sector.