Ontario Government Boosts Food Production with $12 Million in Agriculture Funding

19/03/2025

Reading Time: 3 minutes

Ontario’s agri-food sector is a vital part of the province’s economy, ensuring food security, generating employment, and fostering innovation. Recognizing its significance, both the federal and provincial governments have introduced a range of funding programs to enhance food production and ensure the sector’s resilience.  

A recent $12 million investment demonstrates a strong commitment to supporting the province’s agricultural businesses and strengthening local food systems. 

“Now more than ever, we need Canadian products to ensure a resilient and sustainable food supply, and by investing in key initiatives, we are empowering entrepreneurs to grow their businesses and contribute to a prosperous future for all Canadians.” 
– Ruby Sahota, Minister of Democratic Institutions 

Government Funding Enhancing Ontario’s Food Industry 

In response to international trade challenges, the Canadian government has announced a $12 million investment to support businesses in southern Ontario’s agri-food sector. This funding is designed to enhance production capacity, drive innovation, and strengthen food supply chains. 

“Our government is committed to supporting Canada’s agri-food sector as it drives innovation, creates jobs, and strengthens communities.”  
– Ruby Sahota, Minister of Democratic Institutions 

Additionally, the Ontario government has launched the Grow Ontario Strategy, which aims to increase local food production and consumption by 30% by 2032. The strategy also seeks to boost the economic impact of Ontario’s food and beverage manufacturing sector by 10%. To achieve these goals, the Sustainable Canadian Agricultural Partnership (SCAP), a five-year, $3.5-billion investment, has been bolstered to enhance competitiveness and resilience in the sector. 

Key Funding Programs for Ontario’s Agri-Food Sector 

Several Canadian Agribusiness Funding Programs are available to help Ontario’s agri-food sector thrive: 

  • Ontario Agri-Food Research Initiative (OAFRI): This program offers funding for research and innovation projects that stimulate the growth and competitiveness of Ontario’s agri-food sector. Eligible applicants can receive up to $150,000–$200,000 in research funding. 
  • SCAP Ontario – Agri-Food Energy Cost Savings Initiative: Aimed at enhancing energy efficiency within agri-food processing operations, this initiative provides funding to support competitiveness, profitability, growth, and long-term sustainability. Businesses can receive up to 20% of eligible project costs, to a maximum of $300,000.  
  • SCAP Ontario – Grow Ontario Market (GOM) Program: This program assists agri-food businesses and industry organizations in expanding their products into local and global markets, boosting economic growth and innovation. Eligible applicants can access up to 25% of costs, to a maximum of $125,000.  
  • Agri-Tech Innovation Cost-Share Program: Designed to support the modernization of agriculture-specific technologies, this program offers funding to offset costs related to adopting unique and innovative technologies in the workplace. Eligible projects can receive up to 35% of costs, to a maximum of $100,000 per project. 
  • Supply Chain Stability and Adaptability Program: This program supports the economic recovery and resiliency of Ontario’s agri-food sector by providing funding through two streams: the Agri-Food Supply Chain Infrastructure Investment Stream and the Agri-Food Supply Chain Resiliency Analysis Stream. Applicants can receive up to 25% of eligible costs, up to a maximum of $150,000 per project. 

The Impact of Canadian Agriculture Funding 

Government funding has played a crucial role in improving Ontario’s food production in several key ways: 

  • Expanded Processing Capacity: Investments have helped expand processing facilities, allowing businesses to meet rising consumer demand for local products. 
  • Technology Adoption: Funding has facilitated the integration of automation, data analytics, and precision agriculture, increasing efficiency and reducing waste. 
  • Sustainable Practices: Programs like FCC’s Environmental Solutions Loan encourage eco-friendly farming methods that contribute to environmental conservation and long-term agricultural sustainability. 
  • Community Engagement: Tax credits for food donations have strengthened relationships between farmers and local communities, reducing food waste and supporting food-insecure populations. 

The Ontario government’s recent $12 million investment is a significant step toward strengthening the province’s food production sector. By implementing strategic funding initiatives and support programs, both federal and provincial governments are ensuring that Ontario’s agri-food industry remains robust, innovative, and capable of meeting the evolving needs of its population.  

Contact the Ryan Canadian Government Funding Team 

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