In total, the government is allocating around $639 million over five years for the following ag supports:
- $109.2 million for AgriStability, to increase the compensation rate from 80 to 90 per cent and raising the payment cap per farm from $3 million to $6 million.
- $75 million for the AgriMarketing Program to promote Canadian products abroad.
- $97.5 million to temporarily increase the Advance Payments Program’s interest-free limit to $500,000 for canola advances, and $250,000 for all producers for the 2025 year.
- $372 million to establish a Biofuels Production Incentive to support Canada’s domestic biofuels industry.
These supports aren’t new ideas.
The Liberals included raising the AgriStability payment cap, for example, in its election platform.
And the government announced the biofuels program and the support for canola growers in September.
Another portion of the budget is dedicated to increasing food exports.
“With global demand for high-quality, nutritious food and plant protein on the rise, Canada is ready to meet the moment,” the budget document reads.
The Carney government plans to accomplish this with:
- $76 million over five years to the Canadian Food Inspection Agency (CFIA) to modernize its operations. This includes increased use of digital import and export certificates.
- $32.8 million over four years for the CFIA to secure, expand, and restore market access for Canadian ag and seafood. This work will include engaging directly with other countries on trade agreements, and identifying trade barriers.
The government also commits to supporting underrepresented groups and helping them access industry programs and financing.
Another legislative promise comes in a proposed amendment to the Farm Credit Canada (FCC) Act.
The Liberals would change the law, which governs the FCC, to require regular reviews to ensure it aligns with the needs of the ag sector.
The federal government made a promise to reduce spending by 15 per cent over three years and asked ministers to identify savings within their portfolios.
Here’s what this means for Agriculture Minister Heath MacDonald and Agriculture and Agri-Food Canada (AAFC).
A winding down of programs outside of its core mandate like the Agricultural Climate Solution Living Labs.
These labs, launched in 2021, bring together farmers, scientists and others to develop and test methods of reducing greenhouse gas emissions and to sequester carbon.
The government is establishing a different approach.
“The government is focusing on supports for producers and agribusinesses to innovate, adopt clean technologies and stay competitive in a shifting global market, ensuring Canada remains a leader in sustainable food production,” the 2025 budget says.
AAFC will also reduce some scientific activities where a more streamlined approach exists and optimizes its resources to help it operate at reduced levels.
In terms of departmental funding, AAFC’s levels are expected to drop significantly.
Between modernizing government operations, recalibrating government programs, and funding the Canadian Dairy Commission and Canadian Grain Commission, AAFC’s total savings for 2026-2027 is $113.1 million.
The department is expected to save $81.2 million in 2027-2028, and $156.4 million from 2028-2029 onwards.
Other parts of the federal budget affect agriculture too.
The Liberals promised to lower permanent resident immigration levels to 380,000 per year for three years, and lower temporary resident levels to 370,000 in 2027 and 2028.
This could include temporary foreign workers, of which over 78,000 worked in Canadian ag in 2024.
“The government recognises the role temporary foreign workers play in some sectors of the economy and in some parts of the country. To that end, the 2026-2028 Immigration Levels Plan will consider industries and sectors impacted by tariffs and the unique needs of rural and remote communities,” the budget says.
For the government to implement any of its budget measures, the budget needs to pass a vote in the House of Commons.
The House is expected to vote on the budget on Nov. 17.
Following former Conservative MP Chris d’Entremont’s decision on Nov. 4 to cross the floor and join the Liberals, the government needs support from two opposition MPs for the budget to pass.
Two parties – the Conservatives and the Bloc – indicated they won’t support the budget.
Green Party Leader Elizabeth May, the only Green MP in the House, said she wouldn’t support the budget as is currently written but could vote in favour of it if certain changes are made.
And NDP MPs may abstain from voting.
If the budget doesn’t pass, the government will fall, and another federal election will be triggered.
The last time a federal election was called due to a non-confidence motion directly related to the federal budget was in 1979.
The Liberals and NDP, with a total of 139 votes, brought down Prime Minister Joe Clark’s government and the 133 votes it had for the budget.
They voted against the budget because it included new taxes like an 18-cent per gallon tax increase on gas and a 10 per cent tax increase on tobacco products.
In the federal election that followed, Pierre Elliot Trudeau and the Liberals earned a majority.