Question Period Note: SUPPORT FOR YOUNG FARMERS AND YOUTH

Q1- What programs are supporting young farmers and youth? Q2 – How else is the Government supporting young farmers and youth?

R.1 - 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 (2023-2026), 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 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.

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 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 five-year (2023-2028), $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 five-year (2023-2028), $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 (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 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 $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 (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-one 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 – 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, equipment purchase, etc.

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.

• 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.