Question Period Note: EXTREME WEATHER

Q1 – What is the Government doing to prepare the sector for increased extreme weather in the future?
Q2 – How is the Government addressing climate change through business risk management?

R1 - The Government is engaged in a broad set of actions to support the sector in managing future conditions, including potentially increased instances and severity of extreme weather events.
For example, the Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a $3.5 billion investment over five years by federal, provincial and territorial governments focused on key priorities including science and innovation, resiliency, and environment and climate change. The Sustainable CAP is one important way that the Government is helping position the sector to better face future challenges.
In addition, we are reviewing the business risk management (BRM) suite to assess its interactions with climate risks and how the sector is addressing them, in consultation with provinces and territories.
As part of the Strategic Plan for Science, increasing the resiliency of agroecosystems is one of four missions for the department. This mission enables outcomes like enhancing the resilience of the sector to a changing climate.
Other initiatives include the renewal of the Emergency Management Framework for Agriculture, a national integrated and collaborative emergency management agreement, with provincial/territorial colleagues.
R2 - The BRM suite already includes programming that can respond to extreme weather events, such as through the AgriInsurance Program and the AgriRecovery framework. Better integrating climate risk management and climate readiness into business risk management programs is a top priority. A BRM climate review is being conducted to look at how climate change could impact the BRM suite.
Starting in 2025, the largest producers will need to have an agri-environmental risk assessment to receive the Government contribution in AgriInvest. We are also working with provinces to pilot AgriInsurance premium rebates for producers who adopt practices that have environmental benefits and reduce production risks.
Aside from the BRM suite, the Livestock Tax Deferral (LTD) is another financial management tool for owners of breeding livestock in designated areas, who are forced to sell all or part of their breeding herd due to drought or excess moisture conditions, by providing a one-year tax deferral on part of the income from those sales. Beginning in 2024, the Government of Canada streamlined the process to identify regions for LTD earlier in the growing season and also instituted a buffer zone to adjacent regions to capture impacted farmers on the edges of affected regions.
An initial list of prescribed regions was announced on August 18, 2025, and more regions were added on September 26, 2025, that include affected regions and buffer zones in all provinces, the Northwest Territories, and Yukon.

Recent Extreme Weather Events

In 2025, extreme weather severely affected Canadian agriculture. The 2025 wildfire season has become Canada’s second worst on record in terms of area, with over 8.7 million hectares burned. A December atmospheric river event brought intense rainfall to southern British Columbia, leading to flooding, debris flows, and infrastructure damages. Finally, other extreme weather events, such as severe drought across the Prairies, and hazardous smoke affecting air quality, continue to challenge agricultural production. These events disrupted planting, harvesting, and livestock operations, causing localized yield losses and higher production costs.

Emerging Risks and Challenges

The risk landscape for agriculture and agri-food is constantly evolving, and the factors that can lead to emergencies are increasingly complex and diverse.

Climate change is expected to have a significant impact on primary agriculture production in Canada moving forward. AAFC’s recent producer survey found that nearly 1 in 5 producers see climate change impacts, including natural disasters and extreme weather fluctuation, as the most important issue facing Canadian producers over the next five years.

Recent forecasts report that losses due to weather events alone (floods, droughts, and storms) will increase to $139 billion in the next 30 years, with agriculture among the most affected sectors. Between 2001 and 2010, insured losses from natural disasters in Canada averaged $675 million annually. From 2011 to 2020, this figure rose to $2.3 billion and surged to $3.1 billion by 2023 (Insurance Bureau of Canada).

Extreme weather events could have significant impacts that extend beyond economic concerns, including loss of public trust, and impacts to environmental and human health. This requires a shift from reactive programs to a comprehensive approach that manages risks proactively and maximizes the use of collective capacities.

Investment in prevention and preparedness is far less costly than the consequences of inaction. Recent data from the National Adaption Strategy notes that every dollar spent on adaptation measures saves up to $15, including both direct and indirect economy-wide benefits. Every dollar invested in adaptation generates significant benefits.

Livestock Tax Deferral

The Livestock Tax Deferral (LTD) provision allows livestock producers who are forced to sell all or part of their breeding herd due to drought or excess moisture to defer a portion of their income from sales until the following tax year. The income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the tax burden associated with the original sale. In 2024, the Government of Canada streamlined the process to identify regions earlier in the growing season and instituted a buffer zone to adjacent regions to capture impacted producers on the edges of affected regions.
An initial list of regions in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Northwest Territories (including buffer zones) have been prescribed for LTD in 2025, due to severe to extreme drought conditions. Additional regions that meet the criteria were announced on September 26, 2025. A final list will be posted on AAFC’s LTD web page in 2026.

AgriRecovery

AgriRecovery is a federal-provincial-territorial initiative designed to assist agricultural producers with the extraordinary costs required to recover from a natural disaster. It operates as a collaborative framework, bringing together governments to assess impacts and deliver targeted assistance when producers experience extraordinary costs beyond their capacity to manage. While AgriRecovery plays an important role in addressing recovery needs, it is not meant to replace available coverage under other programs such as AgriInsurance, AgriStability, and AgriInvest.

AgriInsurance

The AgriInsurance program helps to stabilize producer income by minimizing the economic effects of production losses caused by severe but uncontrollable natural hazards. 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.

Sustainable Canadian Agricultural Partnership

AAFC and its provincial and territorial counterparts are implementing programming under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a five-year, $3.5 billion federal, provincial, and territorial (FPT) policy framework, that is the successor to the Canadian Agricultural Partnership.

The Sustainable CAP focuses on supporting environmental, economic, and social objectives across all five priority areas, including science, research and innovation, market development and trade, building sector capacity, and resiliency and public trust. The Sustainable CAP also emphasizes the importance of climate change action and the protection of the environment, which are critical to the continued prosperity of the sector as well as supporting economic growth and competitiveness.

AAFC’s Strategic Plan for Science

Higher-risk transformative science under AAFC’s Strategic Plan for Science will help ensure a sustainable, resilient, and profitable agriculture and agri-food sector by 2050. Mission-driven science will bring together multiple disciplines, including economics, social science, and natural science, from across the Department and other science organizations working towards a similar goal, including increasing the resiliency of agroecosystems.
The Missions are as follows:
• Mitigating and adapting to climate change
• Increasing the resiliency of agroecosystems
• Advancing the circular economy by developing value-added opportunities
• Accelerating the digital transformation of agriculture and agri-food

• Across Canada, the agriculture sector continues to face significant impacts from extreme weather events, including severe droughts, wildfires, and excess rainfall.
• Our government is ready to support the sector in managing the impacts of weather events through a full range of programs and initiatives. This includes the suite of business risk management programs, as well as other tools.
• In addition, the Government is working with provincial and territorial counterparts, and industry, to support adaptation to extreme weather, climate change mitigation, and overall greater resilience.
• Initiatives such as the Sustainable Canadian Agricultural Partnership and ongoing research and development guided by Agriculture and Agri-Food Canada’s Strategic Plan for Science are contributing to these efforts.