Governments Reach Landmark Agreement to Strengthen Ontario’s Agri-Food Sector

Canada and Ontario making significant enhancements for the food supply system

March 01, 2023

Agriculture, Food and Rural Affairs

Table of Contents

  1. Content
  2. Quick Facts
  3. Additional Resources
  4. Related Topics

VINELAND STATION – Farmers and the province’s wider agri-food sector will benefit from an upcoming new, five-year agreement between the governments of Canada and Ontario. The agreement will provide a range of investments that will help improve productivity, competitiveness and resilience in this key area of the economy and enable the province to meet goals outlined in Ontario’s Grow Ontario Strategy.

The governments have negotiated a Sustainable Canadian Agricultural Partnership (Sustainable CAP) for Ontario that will see upwards of $1.77 billion in support for the agri-food sector over the life of the agreement. Through Sustainable CAP, $569 million will be invested in strategic initiatives, which is a 25 percent increase over the previous funding agreement. There will also be roughly $1.2 billion for continued, demand-driven, business risk management supports for farmers.

Sustainable CAP will also boost investments in research and innovation and other strategic areas to strengthen the sector. The agreement will include the launch of the new Resilient Agricultural Landscape Program (RALP), a funding initiative to mitigate climate change and support the agricultural sector in better addressing sustainability outcomes.

“The Sustainable CAP is a collaborative effort by the governments of Canada and Ontario to invest in sustainable agriculture, ensure the resilience of production and supply chains and grow the agriculture and food sectors in Ontario,” said the Honourable Marie-Claude Bibeau, federal Minister of Agriculture and Agri-Food. “Building on the leadership of industry, we can seize new opportunities that will allow farmers to contribute to food security here in Canada and around the world, all while growing their businesses.”

“Our agri-food sector plays an invaluable role in this province. It is an economic powerhouse and the reliable provider of so many different, safe, high-quality and delicious foods that we all enjoy,” said Lisa Thompson, Ontario Minister of Agriculture, Food and Rural Affairs. “This agreement will create new opportunities to make this world-class sector even stronger and position it to sustainably grow during and well beyond the term of this pact.”

The Sustainable CAP starts on April 1, 2023 and replaces the Canadian Agricultural Partnership (the Partnership). The programs will support the vision and priorities the federal, provincial and territorial agriculture ministers agreed to in 2021 in The Guelph Statement.

The Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a five-year (2023-2028), $3.5-billion investment by federal‐provincial and territorial governments to strengthen competitiveness, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector. This includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities by federal, provincial and territorial governments.

Details about Sustainable CAP funding opportunities and programming will be posted online as they become available.

Quick Facts

  • Producers have access to a suite of business risk management (BRM) programs to help them manage significant risks that threaten the viability of their farms and are beyond their capacity to manage.
  • This agreement will be finalized this month and come into force on April 1, 2023.
  • In 2021, Ontario’s agri-food industry contributed $47.6 billion in GDP to the provincial economy.
  • One in every 10 jobs in Ontario was related to the agri-food sector in 2021.
  • Priorities in the Sustainable CAP were set out by federal-provincial-territorial agriculture ministers in The Guelph Statement.

Additional Resources

Agriculture and Agri-Food Canada

Ontario Ministry of Agriculture, Food and Rural Affairs

Grow Ontario

Related Topics

Rural and North

Information about the province’s Far North and rural communities. Get connected to business improvement organizations and learn more about funding and programs that support rural, northern and Indigenous communities. Learn more