Business & Policy
New, five-year CAP agreement reached between Canada and Ontario
March 1, 2023 By Top Crop Manager
On March 1, the governments of Canada and Ontario announced the negotiation of an upcoming new, five-year agreement that will provide a range of investments to help improve productivity, competitiveness and resilience in the agriculture sector.
“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 Marie-Claude Bibeau, federal minister of agriculture and agri-food, in a statement. “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.”
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 the Sustainable CAP, $569 million will be invested in strategic initiatives, which is a 25 per cent increase over the previous funding agreement. There will also be roughly $1.2 billion for continued, demand-driven, business risk management (BRM) 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.
“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, in a statement. “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 and replaces the Canadian Agricultural Partnership (CAP). 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.