The Canadian Federation of Agriculture (CFA) views the 2025 Federal Budget as a step forward in recognizing the importance of Canada’s agriculture sector. While several CFA recommendations were reflected in the budget, either as new spending commitments or a reannouncement of previous commitments, a number of critical areas remain unaddressed to seize Canadian agriculture’s full strategic potential as an economic driver for Canada. However, measures related to CFIA modernization, red tape reduction, and trade diversification funding present a promising opportunity to advance regulatory efficiency and strengthen trade-enabling infrastructure that supports agricultural growth.
The Budget includes positive measures such as realizing the previous commitment to invest $5 billion in major infrastructure projects, increased investments in the Canadian Food Inspection Agency (CFIA) to modernize trade tools and expand market access for farmers, as well as beneficial tax treatments and tax incentives for business, including a re-establishing the Accelerated Investment Initiative, which provides an enhanced first-year allowance for certain eligible property that is subject to the capital cost allowance (CCA) rules. These initiatives align with CFA’s ongoing advocacy for a more competitive and resilient agri-food system.
“We appreciate the government’s recognition of agriculture in Budget 2025 and welcome the inclusion of several measures that support farmers,” said Keith Currie, CFA President.
“However, we also see this as a missed opportunity to address some of our sector’s most pressing challenges such as a permanently increased interest free threshold for the Advance Payments Program, labour disruptions in the food supply chain, protecting farmland through Agricultural Impact Assessments and modernizing the Canadian Grain Act, which did not receive the attention they urgently require. With the budget’s acknowledgement of agriculture as a key strategic sector, we will be focused on continuing to work with the government to ensure agriculture is appropriately prioritized in infrastructure spending and red tape reduction, while working to see those remaining issues addressed in future policy decisions.”
CFA had called for enhancements to business risk management programs, stronger support for domestic food production, and a national strategy to address chronic labour shortages in agriculture. While the budget makes progress in some areas, CFA emphasizes the need for a more comprehensive approach establishing an economic plan for agriculture to ensure the long-term sustainability and competitiveness of Canadian farms.
CFA will further examine the targeted updates to the Clean Fuel Regulations and the updated greenwashing regulations to help ensure that these measures work for the betterment of Canadian agriculture.
CFA will continue to closely monitor the implications of spending cuts to AAFC and other federal departments to ensure they focus on securing efficiencies that do not undermine the agriculture sector’s resilience and competitiveness. Regardless, CFA continues to advocate for further investments in the future of Canadian agriculture that drive growth, productivity and innovation for the sector and benefits for all Canadians.