Question Period Note: AAFC’S 2025-26 SUPPLEMENTARY ESTIMATES (B)

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Agriculture and Agri-Food Canada’s (AAFC) 2025–26 Supplementary Estimates (B) total $147.6 million, which, when added to the 2025–26 Main Estimates and amounts carried forward from the prior year bring the Department's total 2025–26 Spending Authorities to Date to $4.1 billion.

AAFC’s 2025–26 Supplementary Estimates (B) of $147.6 million are made up of the following:
ITEM $ Millions
VOTED STATUTORY TOTAL
Appropriations
1 Statutory forecast increase for AgriStability Program - 108.7 108.7
2 Sustainable Canadian Agricultural Partnership cost-shared initiatives (reprofile from 2024-25) 34.3 - 34.3
3 Reinvestment of royalties from intellectual property 6.4 - 6.4
4 Reinvestment of revenues from sales and services related to research, facilities and equipment 1.4 1.4
Total Appropriations 42.1 108.7 150.8
Transfers
Transfers from Other Organizations
5 From Health Canada for the Interdepartmental Indigenous Science Technology Engineering and Mathematics Cluster 0.1 - 0.1
Total transfers from Other Organizations
0.1 - 0.1
Transfers to Other Organizations
6 Transfer to Canadian Grain Commission for soy quality testing activities (0.2) - (0.2)
7 Transfer to Department of Indigenous Services for the design and development of a natural sciences project (0.3) (0.3)
8 Transfer to CFIA to support initiatives that address food safety, plant and animal health, biosecurity and traceability under the Sustainable CAP (2.6) - (2.6)
Total transfers to Other Organizations (3.2) (3.2)
Internal Transfer
9
Internal reallocation of resources from operating ($527K) to capital to support living laboratories capital requirements - - -
Total Transfers (3.2) (3.2)
Grand Total
38.9 108.7 147.6
Due to rounding, figures may not add to the total shown
 
1. $108.7 million – Statutory Forecast increase for AgriStability Program – Statutory Grants & Contributions

This forecast increase for Statutory Grants and Contributions funding in 2025-26 will support the following enhancements to the AgriStability program for the 2025 program year:
• Increase the compensation rate from 80 per cent to 90 per cent ($12M grants & $65M contributions) and
• Increase the payment cap per farm from $3 million to $6 million ($4.5M grants & $27.2M contributions).
These changes to the AgriStability program are to support the primary agriculture sector and to maintain a viable agriculture industry in Canada as they face trade measures from the U.S. and China.

1. $34.3 million – Funding to support cost-shared initiatives under the Sustainable Canadian Agricultural Partnership – Vote 10 Contributions
   These Supplementary Estimates include reprofiled unspent funding from 2024-25 related to the Sustainable Canadian Agricultural Partnership (Sustainable CAP) Cost-Shared multilateral framework agreement totalling $34.3 million in Vote 10 Contributions. This amount is being carried forward into 2025-26.
   The Sustainable CAP five-year multilateral agreement creates a legal obligation for the Government of Canada to cost-share programs with Provinces and Territories on a 60:40 cost sharing basis. The flexibility to reprofile up to 25% of planned spending is included in Federal Provincial-Territorial agreements signed by all parties.
   This amount is being carried forward into 2025-26 and is broken down as follows:

• $28.2 million for Contributions in support of Provincial/Territorial delivered cost-shared programs under the Sustainable CAP;
• $3.9 million for Contributions in support of the AgriAssurance program under the Sustainable CAP;
• $2.2 million for Contributions in support of the AgriMarketing program under the Sustainable CAP.

1. $6.4 million – Reinvestment of royalties from intellectual property – Vote 1 Operating
   AAFC is seeking access to $6.4 million in Vote 1 Operating in 2025-26 related to royalties from intellectual property collected and deposited into the Consolidated Revenue Fund in 2024-25. Royalties are collected for Science and Technology Branch, and are for numerous agricultural commodities that have been developed by scientists. These commodities range from grain & oilseeds to fruits to flowers.
   The Treasury Board has authorized departments and agencies to receive, through Supplementary Estimates, an annual appropriation equal to all revenues arising from the licensing of Crown-owned intellectual property which the department or agency remitted to the Consolidated Revenue Fund in the previous fiscal year.
2. $1.4 million – Reinvestment of revenues from sales and services related to research, facilities and equipment – Vote 1 Operating
   In accordance with the December 1993 MOU on revenue retention specific to AAFC and the Treasury Board, AAFC is seeking to access research-related revenues collected in the previous year. The $1.4 million in Vote 1 Operating in 2025-26 from sales and services related to research, facilities and equipment, and other revenue earned and deposited into the Consolidated Revenue Fund in 2024-25, will be reinvested into research activities.

Transfers from Other Organizations (totaling $50 thousand)
5. $50 thousand – Transfer from the Department of Health for the Interdepartmental Indigenous Science Technology Engineering and Mathematics Cluster– Vote 1 Operating
AAFC will receive $50 thousand in 2025-26 from Health Canada in support of the Indigenous Science Technology Engineering and Mathematics (I-STEM) Cluster. The I-STEM Cluster is working to inform and enhance departmental policies, programs, activities and recruitment related to STEM disciplines to accelerate the advancement of Indigenous aspirations and innovation. AAFC is hosting the I-STEM Cluster Secretariat.

Transfers to Other Organizations (totaling $3.2 million)
6. ($246) thousand – Transfer to the Canadian Grain Commission for soy quality testing activities – Vote 1 Operating
This transfer will support the transition of soy quality testing from AAFC to the Canadian Grain Commission (CGC). AAFC can no longer continue to provide soy quality testing services due to lab equipment failure, human resource limitations, and weak alignment to its core research mandate. In support of this transition, AAFC will provide a total of $921,470 including $389,427 in 2025-26, $389,426 in 2026-27, and $142,617 in 2027-28. This transfer will complement $143 thousand already provided through the 2025-26 Main Estimates to make up the $389 thousand required for 2025-26.
7. ($336) thousand – Transfer to the Department of Indigenous Services for the design and development of a natural sciences project – Vote 10 Contributions
This transfer will support the design and development of the Natural Sciences Module Project (Phase II). The project is composed of 3 phases: Needs Assessment (I), Design and Development (II), and Implementation and Evaluation (III). In phase II, the First Nations Information Governance Centre and the Interdepartmental Indigenous Science, Technology, Engineering, Mathematics (I-STEM) Cluster will continue to collaborate in the development of future training offerings with a focus on the priority topics and content brought forward in Phase I. The training will include supporting federal staff in STEM fields through a sequence of learning to increase knowledge and skills related to the First Nations principles of ownership, control, access, and possession.
8. ($2.6) million – Transfer to the CFIA to support initiatives that address food safety, plant and animal health, biosecurity and traceability under the Sustainable CAP – Vote 1 Operating
This transfer is to support the following initiatives under Sustainable CAP for 2025-26:
• Assurance recognition activities, including the Food Safety Recognition Program;
• Plant and animal health activities with a focus on biosecurity and surveillance; and
• Traceability activities, including Implementation and evaluation of new livestock traceability regulations; and continued integration, including ensuring data integrity, and sharing of livestock traceability information through the Traceability National Information Portal.

Internal Transfer
9. Internal reallocation of resources to support living laboratories' capital requirements. – Vote 1 Operating to Vote 5 Capital
$527 thousand will be reallocated from Operating to Capital, to strategically support AAFC’s Living Laboratories initiatives. The capital funding will be used to purchase the equipment to monitor environmental factors (temperature, rain, growth rate of crops, etc.), which gets tracked over time as part of the Living Labs research. By procuring capital assets earlier in the funding cycle, this reallocation aims to enhance data collection capabilities over extended periods and maximize the impact of emerging science capital requirements, while ensuring alignment with the Living Laboratories projects objectives.

• If approved, Agriculture and Agri-Food Canada’s 2025–26 Supplementary Estimates (B) of $147.6 million would provide funds to support the agriculture and agri-food sector.

• We are investing 74% of the funds ($108.7 million) in the AgriStability program enhancements to support the primary agriculture sector and maintain a viable agriculture industry as they face trade measures from the US and China.

• Approximately 23% of the funds ($34.3 million) would support the implementation of federal and cost-shared initiatives under the Sustainable Canadian Agricultural Partnership, a five-year (2023–2028), $3.5 billion investment by federal, provincial, and territorial governments to strengthen and grow Canada's agriculture and agri-food sector.