Question Period Note: NON-BUSINESS RISK MANAGEMENT (BRM) SUSTAINABLE CANADIAN AGRICULTURAL PARTNERSHIP (SUSTAINABLE CAP) PROGRAMMING

Q1 – What is the suite of federal programming under Sustainable CAP?
Q2 – What is the status of federal programming under Sustainable CAP?
Q3 – How is Sustainable CAP cost-shared programming supporting the Canadian agriculture sector?
Q4 – How will Sustainable CAP address the environment and climate change?

R1 - The federally delivered programs under Sustainable CAP include: AgriAssurance , AgriCompetitiveness, AgriMarketing, AgriDiversity, AgriScience, and AgriInnovate.
R2 - All of the Federal Sustainable CAP programs have been launched. Many of the programs experienced high demand from past program participants and new applicants. As a result, most programs prioritized projects that best aligned with program objectives.
R3 - Under Sustainable CAP, $2.5 billion is cost-shared 60% federally and 40% provincially/territorially for programs that are designed and delivered by provinces and territories that have flexibility to implement programs to advance priority areas. These priority areas include tackling climate change, expanding markets for Canadian producers, supporting sustainable agriculture and economic growth, and enhancing sector resilience.

Funding for cost-shared programming under the Sustainable CAP represents a $500 million increase compared to the previous FPT framework, the Canadian Agricultural Partnership. As part of this increase in funding, governments agreed to introduce the Resilient Agricultural Landscape Program, a $250 million cost-shared program, $150 million federal and $100 million provincial/territorial funds, that uses an ecological goods and services payment approach to support on-farm adoption of environmental beneficial management practices that reduce greenhouse gas (GHG) emissions and increase carbon sequestration.
R4 - The Sustainable CAP plays a critical role in supporting the agriculture and agri-food sector by contributing to reductions in greenhouse gas emissions, adapting to climate change and continuing to ensure a sustainable path for economic growth.

Central to having a more significant focus on climate change is the establishment of the Resilient Agricultural Landscape Program, a $250 million investment by FPT governments that supports on-farm adoption of environmental beneficial management practices that reduces GHG emissions and increases carbon sequestration.

Additionally, under Sustainable CAP, with the exception of the territories, all provinces have agreed to spend at least 12.5% of their total spending, excluding federally-attributed initiatives, on activities that specifically support GHG emissions-reducing and carbon sequestration activities.

SUSTAINABLE CAP PROGRAMMING

• The Sustainable CAP is a $3.5-billion, 5-year agreement (April 1, 2023, to March 31, 2028), between the federal, provincial and territorial governments to strengthen the competitiveness, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector.
• The agreement includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities funded by federal, provincial and territorial governments.
• This 5-year agreement includes $500 million, representing a 25% increase in the cost-shared funding from the previous framework, the Canadian Agricultural Partnership (ended March 31, 2023).
• Under the cost-shared envelope, FPT governments agreed to a $250 million Resilient Agricultural Landscape Program to support ecological goods and services provided by the agriculture sector.

Federal Programs and Activities under Sustainable CAP
• Federal programs and activities are national in scope and represent a $1 billion investment over 5 years.
• Federally delivered programs include: AgriScience, AgriInnovate, AgriDiversity, AgriCompetitiveness, AgriAssurance, AgriMarketing.
• Sustainable CAP federal programs and activities include a greater focus on priority areas such as:
o Science, research and development of innovative technologies and practices that address sector and government research priorities;
o Supporting science, research and development of transformative solutions that can contribute to the Government of Canada’s 2030 and 2050 emissions targets; and,
o Market diversification, including activities in the Indo-Pacific region; marketing green products; and supporting inclusive trade.
• Key changes to the programs since the last framework include:
o Greater focus on environmental priorities;
o Better cost-share and/or stacking ratio for underrepresented groups;
o Design changes to help incentivize small enterprises, start-ups and emerging innovators;
o Greater emphasis on impacts and performance measurement; and,
o The launch of the Grants and Contributions Digital Platform solution for end-to-end online program administration.

Cost-Shared Strategic Initiatives under Sustainable CAP
• Cost-shared Strategic Initiatives are a joint undertaking whereby both federal and provincial/territorial (PT) governments provide funding for programming that is designed and delivered by PTs.
• These initiatives represent a $2.5 billion investment over 5 years: 60% federally funded ($1.5 billion) and 40% PT funded ($1 billion).
• The main objective is to provide the PT governments with flexibility to meet regional priorities and resolve issues while contributing to broader national outcomes that are developed collaboratively among FPT governments.
• Funding has been allocated among the five Priority Areas identified in the Guelph Statement:
o Climate Change and Environment;
o Science, Research, and Innovation;
o Market Development and Trade;
o Building Sector Capacity, Growth, and Competitiveness; and,
o Resiliency and Public Trust.
• Key changes to the programs since the last framework include:
o Introduction of the $250 million Resilient Agricultural Landscape Program;
o PT governments agreed to a level of proportionate spending of at least 12.5% of cost-shared funds to support GHG emissions-reducing and carbon sequestration activities; and,
o Increased emphasis on understanding program impacts through improved data sharing, results reporting, and a commitment to contribute to measurable outcomes.

Resilient Agricultural Landscape Program (RALP)
• The $250 million cost-shared program uses an ecological goods and services payment approach (per-acre payments to farmers and land agreements) to support on-farm adoption of environmental beneficial management practices that reduce GHG emissions and increase carbon sequestration.
• It is designed and delivered by provinces and territories to reflect local conditions and regional needs.
• RALP complements other programs that help to develop and implement farming practices that use the natural ability of agricultural land to address climate change.

Additional Funding

• On September 5, 2025, the Government announced $75 million over five years to enhance the AgriMarketing Program, starting in 2026-27. This funding is separate from Sustainable CAP and will help support sectors most affected by market access barriers and trade tariffs for greater alignment with Canada’s Indo-Pacific Strategy, shifting focus beyond traditional export destinations like the U.S. and China.

• The Indigenous Prairie Bison Initiative (IPBI) is a scalable, 3-year, $5 million initiative (2025–2028) to support Indigenous-led bison restoration as an economic, environmental, and cultural asset across Manitoba, Saskatchewan, and Alberta. The initiative is jointly funded by AAFC (AgriScience) and Indigenous Services Canada under the Strategic Partnerships Initiative. The initiative includes two components:
o Capacity building to strengthen Indigenous participation in the bison sector; and,
o A regional learning herd network to share knowledge, build skills, and support collaboration among communities.

• The Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a 5-year, $3.5 billion investment by federal, provincial, and territorial governments to support and grow Canada’s agriculture and agri-food sector.

• The Sustainable CAP includes $1 billion in federal programs and activities, and $2.5 billion that is cost-shared 60 percent federally and 40 percent provincially/territorially for programs designed and delivered by the provinces and territories.

• This includes a commitment to expand market opportunities for producers, strengthen the resiliency of the food system, encourage diversity and inclusion in the sector, and reduce greenhouse gas emissions by 3 to 5 megatonnes.