Question Period Note: AAFC’S 2025-26 MAIN ESTIMATES

Q1 – What is included in AAFC’s 2025-26 Main Estimates? Q2 – Why are the 2025-26 Main Estimates $193.6 million higher than the year prior? Q3 – Why are the 2025-26 Main Estimates $33 million lower than the total funding received in 2024-25?

R.1 - AAFC’s 2025-26 Main Estimates are $3.936 billion.

• $2.3 billion is to support the Sustainable Canadian Agricultural Partnership programs;
• $530.3 million is to support the supply managed dairy, poultry and egg producers and processors;
• $247 million is to support the Agricultural Climate Solutions and Agricultural Clean Technology programs;
• $58.3 million is to support the Wine Sector Support Program;
• The balance is to support various core programs and activities (i.e. science and innovation activities, Advance Payment Program, Local Food Infrastructure Fund, internal services, domestic and international activities, Laboratory Asset Renewal Initiative, Youth Employment and Skills Strategy, etc.) R.2 - The $193.6 million increase in these Main Estimates compared to last year’s is mostly due to:
• Extending support to the Canadian wine industry,
• Strengthening Local Food Security through the renewed Local Food Infrastructure Fund,
• Supporting the amendments made to the Agricultural Marketing Programs regulations to enhance the Advance Payments Program, and
• Addressing collective bargaining obligations and other compensation adjustments R.3 - The $33.0 million decrease in these Main Estimates compared to last year’s total funding is mostly due to:
• Funding for Sustainable CAP Cost-shared initiatives carried forward into 2024-25 from 2023-24 through 2024-25 Supplementary Estimates;
• Budget 2023 spending reductions as we refocus government spending

Partially offset by new funding:
• Supporting the amendments made to the Agricultural Marketing Programs regulations to enhance the Advance Payments Program
• Addressing collective agreements obligations and other compensation adjustments
• Supporting slaughter in accordance with Kosher or Halal practices

A summary of Agriculture and Agri-Food’s (AAFC) 2025-26 Main Estimates in comparison to the 2024-25 Main Estimates follows:

($ millions)
Vote / Appropriation 2024-25
Main Estimates 2025-26
Main Estimates Difference Explanation

Vote 1 - Operating 662.1 682.8 20.6 - New funding: Water Infrastructure Divestiture, Local Food Infrastructure Fund, Pesticide review process, Federal Contaminated sites renewal, Wine Sector Support Program; collective agreements
Partially offset by:
- Budget 2023 spending reductions under Refocusing Government Spending;
- Departmental transfers and other budget reductions
Vote 5 - Capital 66.8 73.1 6.3 - Increase for the Laboratory Asset Renewal Initiative, mostly due to funding reprofile from 2027-28 to 2025-26
Vote 10 - Grants and Contributions 799.5 894.0 94.5 - New funding: Wine Sector Support program, Local Food Infrastructure Fund and Kosher and Halal slaughter support
- Increase: Supply Management Initiatives due to funding reprofiling
Partially offset by:
- Budget 2023 reductions under Refocusing Government Spending (Agricultural Clean Technology and Innovative Solutions programs)
- Sunsetting of the African Swine Fever Industry Preparedness program at the end of 2024-25
Statutory 2,213.5 2,285.8 72.3 - Increased funding for Advance Payments Program to temporarily extend interest-free loan limit to $250,000. The increase is mainly due to timing since the increase to the interest-free loan limit for 2024 program year was not included in last year's Main Estimates

• Increase for the Dairy Innovation and Investment Fund
  Total (1) 3,742.0 3,935.7 193.6

A summary of AAFC’s 2025-26 Main Estimates in comparison to the 2024-25 Estimates to Date (which includes Supplementary Estimates A and B) follows:

($ millions)
Vote / Appropriation 2024-25
Estimates to Date 2025-26
Main Estimates Difference Explanation

Vote 1 - Operating 686.0 682.8 (3.2) Decreases:
- 2024-25 included royalties from Intellectual property and other revenue from research and more transfers from other Departments,
- Budget 2023 reductions under Refocusing Government Spending
Partially offset by:
- New funding for Water Infrastructure Divestiture, Federal Contaminated Sites Action Plan and collective agreements
Vote 5 - Capital 66.8 73.1 6.3 - Increase for the Laboratory Asset Renewal Initiative, mostly due to funding reprofile from 2027-28 to 2025-26
Vote 10 - Grants and Contributions 956.6 894.0 (62.6) - 2024-25 included Sustainable CAP Cost-shared funding reprofile from 2023-24;
- Budget 2023 reductions under Refocusing Government Spending for Agricultural Clean Technology and Innovative Solutions Canada programs
- Sunsetting of the African Swine Fever Industry Preparedness program at the end of 2024-25
- Partially offset by: new funding to support Kosher and Halal slaughter
Statutory 2,259.3 2,285.8 26.5 - Increased funding for the Advance Payments Program mainly to temporarily extend the interest-free loan limit to $250,000 over the 2024 and 2025 program years

• Increase for the Dairy Innovation and Investment Fund in 2025-26
  Total (1) 3,968.7 3,935.7 (33.0)

The Main Estimates reflect approved budget and resource allocation decisions at the start of the fiscal year. It is normal for additional spending to be authorized later in the year through Supplementary Estimates.

A summary by Core Responsibility of AAFC’s 2025-26 Main Estimates in comparison to the 2024-25 Main Estimates follows:
($ millions)
Purpose 2024-25 2025-26 Difference Explanation
Main Estimates Main Estimates
Sector Risk 1,980.5 2,035.0 54.5 - Increased funding for Advance Payments Program to temporarily extend interest-free loan limit to $250,000. The increase is mainly due to timing since the increase to the interest-free loan limit for 2024 program year was not included in last year's Main Estimates
- New funding - Pesticide review process, Collective agreements, Kosher and Halal slaughter support
Partially offset by: Sunsetting of the African Swine Fever Industry Preparedness program at the end of 2024-25

Science and Innovation 883.8 911.7 27.9 - New funding: Collective agreements, Federal Contaminated sites renewal, Kosher and Halal slaughter support
- Increases for the Agricultural Climate Solutions and Laboratory Assets renewal Initiative due mostly to funding reprofile
Partially offset by:
Budget 2023 reductions under Refocusing Government Spending

Domestic and International Markets 700.8 808.9 108.1 - New funding: Wine Sector Support program, Local Food Infrastructure Fund, Water Infrastructure Divestiture; Kosher and Halal slaughter support
- Increase: Supply Management Initiatives
Partially offset by:
- CPMA deficit decrease
- Budget 2023 reductions under Refocusing Government Spending
Internal Services 176.8 180.0 3.1 - New funding - Collective agreements, Wine Sector Support program, Local Food Infrastructure Fund
Partially offset by:
- Budget 2023 reductions under Refocusing government spending
Total (1) 3,742.0 3,935.7 193.6
Notes:
(1) Due to rounding, figures may not add to totals shown.

• The majority of AAFC’s 2025-26 Main Estimates of $3.936 billion will support the Sustainable Canadian Agricultural Partnership programs, which drive sustainable growth, resiliency, public trust, innovation, and competitiveness of the sector.

• We are also continuing to support supply-managed dairy, poultry, and egg producers and processors by providing compensation for the impacts of recent trade agreements.

• Through the Agricultural Climate Solutions and Agricultural Clean Technology programs, the Canadian agricultural sector will contribute to the reduction of greenhouse gas emissions and build resilience to climate change.

• We are committed to extending support for Canadian wineries as they adapt to the repeal of the excise duty exemption on 100 percent Canadian wine.