Canada’s Budget 2025 sets a clear course for the agriculture and agri-food sector by combining trade diversification with enhanced risk-management support for farmers. The federal government is aiming to double non-U.S. exports over the next decade, signalling a strategic shift away from heavy dependence on the American market.
On the risk-management front, the budget delivers key enhancements to farmers’ safety net. For example, the compensation rate under the AgriStability program will rise from 80 % to 90 %, and the payment cap per farm will increase from CA$3 million to CA$6 million. Meanwhile, the Advance Payments Program for canola producers will receive CA$97.5 million over two years to raise interest-free advance limits to CA$500,000 for 2025 and 2026.
Infrastructure and trade-corridor investments also feature prominently. A new strategic focus on the Indo-Pacific and a CA$5 billion “Trade Diversification Corridors Fund” will launch in 2025-26, aimed at unlocking new export routes and reducing trade bottlenecks.
Together, these reforms seek to build a more resilient agricultural sector—one better equipped to handle market shocks, climate uncertainties and global supply-chain disruptions. By strengthening both trade and risk-management frameworks, Budget 2025 offers farmers enhanced protection and expanded pathways to growth.
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