Question Period Note: AGRICULTURE AND AGRI-FOOD CANADA’S 2025-26 DEPARTMENTAL PLAN

Q1 – What is being done to increase and diversify trade? Q2 – How are business risk management programs helping? Q3 – What is being done to support the supply-managed sectors? Q4 – What support is being done for other initiatives highlighted in the Departmental Plan ? Q5 – Why is planned spending for Domestic and International Markets decreasing over the next 3 years?

R.1 - The Department will continue to advocate for Canada’s agricultural trade policy interests, building an open, predictable, rules-based trading system, including by negotiating and supporting the implementation of trade agreements.
Aligned with broader government objectives to increase and diversify Canadian exports, the Department will continue to support sustainable economic growth in the sector by creating the conditions for Canadian businesses to meet the evolving challenges of the interconnected domestic and global marketplace, including through the Sustainable Canadian Agricultural Partnership. R.2 - Business risk management (BRM) programs help farmers to manage production risks and recover from adverse conditions. The Department will continue to improve how our programs support better risk management for farmers, for example, by making the AgriStability program more timely, simple and predictable.
We are also advancing a multi-year review to assess the impacts of climate change risks across BRM programs. The findings will ensure BRM programs are adapted to the new realities stemming from climate change, while supporting the fiscal sustainability of the programs. R.3 - The Government continues to deliver on its commitment to help domestic producers and processors under supply-management to adapt to market changes resulting from the impacts of free trade agreements. Up to $4.8 billion has been committed and launched for Canada’s dairy, poultry, and egg producers and processors. This includes an investment of up to $333 million over 10 years under the new Dairy Innovation and Investment Fund to help the Canadian dairy sector increase its competitiveness and adapt to new market realities. R.4 - The Department will continue to work towards reaching the target of $95 billion in agriculture and agri-food exports by 2028, including aiming to position Canada as a preferred supplier in the Indo-Pacific region, supported by the new Agriculture and Agri-Food Office under Canada’s Indo-Pacific Strategy.
We will continue to work with the sector to reach Canada’s climate goals and deliver sustainable food. For example, the On-Farm Climate Action Fund, under the Agricultural Climate Solutions Program, will be extended to 2028 to help Canadian farmers reduce emissions through the adoption of nitrogen management, cover cropping, and rotational grazing practices. The Department will also continue to work on a Sustainable Agriculture Strategy and efforts towards a low-carbon economy and promoting sustainable growth in Canada’s agriculture and agri-food sector will continue through the Agricultural Clean Technology Program. R.5 - The Department will continue to support sustainable economic growth in the sector by creating the conditions for Canadian businesses to meet the evolving challenges of the interconnected domestic and global marketplace, including through the Sustainable Canadian Agricultural Partnership.
Planned spending decreases over the next 3 years primarily due as a result of reduced planned spending for supply management initiatives and expiry of the Wine Sector Support Program.

The 2025–26 Departmental Plan outlines plans and performance expectations over the next three fiscal years under each Core Responsibility (Domestic and International Markets, Science and Innovation, and Sector Risk) of Agriculture and Agri-Food Canada’s Departmental Results Framework.
The 2025–26 Departmental Plan reflects a strong focus on efforts toward a more environmentally, economically, and socially sustainable agriculture and food system.

The 2025–26 Departmental Plan does not include Budget 2025 commitments, funding for programs and initiatives that are pending, or information on tax expenditures.

The 2025–26 Departmental Plan reports that the Agriculture and Agri-Food Canada spending and human resources trends are as follows:

SPENDING TREND (in $ millions)
2022-23 Expenditures 2023-24
Expenditures 2024-25
Forecast Spending 2025-26
Planned Spending 2026-27
Planned Spending 2027-28
Planned Spending
3,606.5 4,163.4 3,997.8 3,935.7 3,650.7 3,450.9

HUMAN RESOURCES TREND (in full-time equivalents [FTEs])
2022-23 Actual FTEs 2023-24 Actual FTEs 2024-25 Forecast
FTEs 2025-26 Planned
FTEs 2026-27 Planned
FTEs 2027-28 Planned FTEs
5,045 5,073 5,145 5,149 5,111 5,064

SPENDING TREND EXPLANATION
Over the period of 2022–23 to 2027–28, spending varies from a high of $4.2 billion spent in 2023–24, to a low of $3.5 billion planned for 2027-28.
Actual spending in 2023–24 was higher than 2022–23 as it reflected:
o increased requirement for support under the AgriInsurance, AgriStability, AgriRecovery and Advance Payments programs;
o increased spending for the Supply Management Processing Investment Fund, the Poultry and Egg On-Farm Investment Program and the Agricultural Clean Technology and Agricultural Climate Solutions programs; and
o compensation adjustments due to the renewal of collective agreements.
This was offset by reduced spending for the Dairy Direct Payment Program.

Forecast spending in 2024–25 is lower than 2023–24 as it reflects:
o decreased requirement for support under the AgriInsurance, AgriStability, AgriRecovery programs; and
o spending savings under the refocusing government spending exercise.
This is offset by increased funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP), the Poultry and Egg On-Farm Investment Program and the Supply Management Processing Investment Fund.

Planned spending in 2025–26 is lower than 2024-25 as it reflects:
o decreased funding for the Sustainable Canadian Agricultural Partnership (Sustainable CAP);
o amounts carried forward in 2024–25 from the previous year; and
o further spending savings under the refocusing government spending exercise.
This is offset by increased planned funding for the Dairy Innovation and Investment Fund and a statutory forecast increase for the Agricultural Marketing Programs Act.

Planned spending in 2026–27 is lower than 2025–26 as it reflects:
o decreased planned funding for the Dairy Direct Payment Program and, the Agricultural Clean Technology Program;
o a statutory forecast decrease for the Agricultural Marketing Programs Act;
o decreased planned funding for the Poultry and Egg On-Farm Investment Program;
o expiry of funding for the Fertilizer Program under the Emissions Reduction Plan; and further spending savings under the refocusing government spending exercise.

Planned spending in 2027–28 is lower than 2026–27 as it reflects:
o expiry of the Wine Sector Support Program and the Local Food Infrastructure Fund at the end of 2026–27;
o reduced planned funding for the Supply Management Processing Investment Fund and the Sustainable Canadian Agricultural Partnership (Sustainable CAP)
o a further statutory forecast decrease for the Agricultural Marketing Programs Act; and
o reduced planned funding for the Dairy Innovation and Investment Fund.

HUMAN RESOURCES TREND EXPLANATION
The increase in full-time equivalents from 2022–23 to 2025–26 is due to:
o staffing required to support service delivery improvements and government priorities;
o increased support for supply management initiatives; and
o a realignment among programs to better manage operational work load.
This was offset by the expiry of funding for the Advance Agricultural Discovery Science and Innovation Initiative at the end of 2022–23.

The decrease in planned full-time equivalents in 2026–27 reflects a reduction in support for the Agricultural Clean Technology Program and for the Youth Employment and Skills Program and attrition and vacancy management under the refocusing government spending exercise.

The decrease in full-time equivalents in 2027–28 reflects the expiry of the Local Food Infrastructure Fund and the Wine Sector Support Program at the end of 2026–27.

VARIANCES BY CORE RESPONSIBILITY
Domestic and International Markets

Science and Innovation

Sector Risk

Internal Services

• The agriculture and agri-food sector is an important driver of exports and is key to supporting Canada's future economic growth. The Government of Canada remains committed to supporting the sector in its continued leadership in job creation and innovation.

• The 2025–26 Departmental Plan outlines Agriculture and Agri-Food Canada’s (AAFC) priorities with respect to economic growth, climate resiliency, supporting diversity and continued efforts to help farmers remain competitive. The Plan aims to capture new market opportunities, strengthen the sector’s resilience, and remain a reliable partner in global food security.

• Through initiatives such as the five-year, $3.5 billion (2023–28) Sustainable Canadian Agricultural Partnership (Sustainable CAP) policy framework, the Plan highlights departmental efforts to build a competitive, innovative, and inclusive sector, and position Canada as a world leader in sustainable agricultural production.