Canada and Ontario Announce $22 Million in Agri-Food Funding to Support Farmers and Food Processors

fresh red apples moving along a stainless steel conveyor belt inside an agricultural food processing facility, showing modern sorting machinery, natural everyda

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  • calendar_today October 13, 2026

Significant Agri-Food Funding to Drive Growth and Resiliency

The governments of Canada and Ontario have announced a joint investment of nearly $22 million through the Market Diversification and Trade Resiliency Initiative. The funding, revealed on October 13, 2026, aims to help more than 130 Ontario farmers and food processors access new global markets, boost exports, and bolster the province’s agri-food sector.

Major Goals: Market Diversification and Job Creation

This government investment is targeted at diversifying and expanding agri-food trade opportunities. By supporting various projects, the initiative aims to create 925 good-paying jobs across Ontario. The investment complements efforts to make the province’s food supply more secure, sovereign, and self-reliant.

Supporting the Grow Ontario Strategy

The funding is part of the broader Sustainable Canadian Agricultural Partnership, and directly aligns with Ontario’s Grow Ontario Strategy. This strategy provides tools for farmers and businesses to build long-term resiliency, remain competitive amid fluctuating tariffs and economic conditions, and create sustainable agriculture jobs. The $22 million in government investment is expected to spur up to $134 million in total investments for Ontario’s agri-food sector when combined with private contributions.

Examples of Projects Receiving Support

  • Martin’s Family Farm in Waterloo: Up to $499,000 for an innovative apple sauce packaging line.
  • Beck’s Broth in Kitchener: Up to $70,000 to launch new products and expand distribution nationally.
  • Lynch Ag Ltd. in Englehart: Up to $494,000 for a new handling line, optical sorter, and AI-driven grading software to enhance interprovincial and export sales.
  • Canada Royal Milk in Kingston: Up to $310,000 to implement a pulse light system and shrink wrapper packaging, enabling expansion beyond Canadian retail markets.

Funding rates, cost sharing, and maximum contributions vary depending on the project and the program stream. These investments support the goal of increasing Ontario’s agri-food exports by eight percent annually by 2032.

Government Leaders Highlight Importance of Investment

Federal Minister of Agriculture and Agri-Food, Heath MacDonald, emphasized that the investment will help create new export opportunities for Ontario food products and strengthen the province’s agricultural sector. Ontario Minister of Agriculture, Food and Agribusiness, Sam Oosterhoff, highlighted that the initiative is designed to expand trade opportunities, protect jobs, and promote supply chain resilience in response to international trade pressures.

Sustainable Agricultural Partnership and Program Details

The Sustainable Canadian Agricultural Partnership is a five-year, $3.5-billion national investment initiated in 2023 and running through 2028. Of this, $1 billion supports federal programs, while $2.5 billion is allocated to projects designed and delivered by individual provinces and territories, with funding shared 60 percent federally and 40 percent provincially or territorially.

The Market Diversification and Trade Resiliency Initiative is operated by the Ontario Ministry of Agriculture, Food and Agribusiness. Approved projects are expected to be completed by October 15, 2027. The program was developed as a response to sector priorities around increasing capacity, fostering growth, and strengthening resiliency in the face of economic challenges.

Advancing Food Supply Security and Economic Growth

The announced funding supports Ontario’s plans for food supply security and economic growth, ensuring that the province’s food supply remains reliable and efficient. Through initiatives like the Grow Ontario Strategy and targeted agri-food funding, the government aims to secure the long-term success of farmers, food processors, and related businesses in Ontario's agriculture sector.

Source: news.ontario.ca.

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