Canada and Ontario investing $20 million to protect local farmers and agribusinesses
News release
Federal and provincial investment will help local food producers expand global sales of Ontario grown products
January 20, 2026 – Toronto, Ontario – Agriculture and Agri-Food Canada
The governments of Canada and Ontario are investing up to $20 million through the new Market Diversification and Trade Resiliency Initiative to help farmers, food processors and agribusinesses sell more Ontario grown products around the world. The Initiative will fund a variety of projects to increase competitiveness for farmers and agribusinesses and support their expansion into new and international markets as part of the provincial government's plan to protect Ontario's agribusiness sector.
As part of the Sustainable Canadian Agricultural Partnership, this investment supports the province's Grow Ontario Strategy to give farmers and businesses the tools they need to build long-term resiliency, create good-paying jobs and stay competitive in the face of tariffs and economic uncertainty.
The Market Diversification and Trade Resiliency Initiative will open for applications on February 17, 2026 to help Ontario farmers and agribusinesses expand domestic and international sales and strengthen production capacity through three funding streams.
- Market development and diversification implementation planning: supporting preparation and planning for market development and diversification in new or expanded markets.
- Implement market development and diversification: supporting the development of new products and broader marketing strategies.
- Implementation of equipment and technology: investments such as new production equipment to support diversified products, tailored to meet requirements to enter a new market.
Funding through the Initiative will cover a proportion of approved project costs. The cost-share level and the maximum eligible funding amount per project will vary based on the type of proposals submitted. The Initiative will offer increased support for export development projects targeting non-U.S. markets as well as provide support for projects in United States markets.
The Sustainable Canadian Agricultural Partnership is a 5-year (2023-2028), $3.5-billion investment by federal, provincial, and territorial governments to strengthen competitiveness, innovation and resiliency of Canada's agriculture, agri‐food sector. This includes $1 billion in federal programs and activities and a $2.5 billion commitment for programs designed and delivered by the provinces and territories, cost-shared 60% federally and 40% provincially/territorially.
Quotes
"Expanding markets for Ontario food products ensures farmers and food processors have more reliable export opportunities. We are building a stronger, more resilient future for agriculture by improving market access and leveraging our shared strengths."
- The Honourable Heath MacDonald, Minister of Agriculture and Agri-Food
"This investment will help our local farmers and agribusinesses sell more products grown in Ontario to markets around the world. Our government is proud to support the farmers and businesses who drive our nearly $52 billion agri-food sector forward each and every day."
- Trevor Jones, Ontario Minister of Agriculture, Food and Agribusiness
"The CFFO supports the Market Diversification and Trade Resiliency Initiative as an important opportunity for producers of safe, high-quality food to expand their reach into new markets. By opening doors to more customers at home and abroad, this initiative strengthens our agri-food sector and creates greater opportunities for Ontario and Canadian producers to succeed on a global scale."
- Henk Vaarkamp, President, Christian Farmers Federation of Ontario
"As the largest manufacturing sector by employment in Ontario, food and beverage processing comprises over 4,000 companies, 90 per cent of which are small businesses. We appreciate the ongoing strong support of the sector from the provincial government. The creation of this fund highlights the need to increase competitiveness and encourage expansion into new markets. This will help ensure an ongoing viable processing sector in Ontario."
- Chris Conway, CEO, Food & Beverage Ontario
"Ontario farmers produce some of the highest quality food and agricultural products in the world. Creating and strengthening reliable markets for our products has never been more important both at the local level and globally. We appreciate the efforts of the province and the federal government as we work together to support a strong, vibrant, and growing agricultural sector."
- Drew Spoelstra, President, Ontario Federation of Agriculture
Quick facts
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The Ontario Ministry of Agriculture, Food and Agribusiness will deliver the Market Diversification and Trade Resiliency Initiative.
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Applications for the Market Diversification and Trade Resiliency Initiative will be received from February 17, 2026 until 11:59 pm EST, on March 17, 2026.
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Building sector capacity and growth and enhancing its resiliency were among priorities set for Sustainable Canadian Agricultural Partnership by the federal-provincial-territorial agricultural ministers in The Guelph Statement.
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For more information about OMAFA programs and services, contact the Agricultural Information Contact Centre (AICC) at 1-877-424-1300 or at ag.info.omafa@ontario.ca.
Associated links
Contacts
For media:
Jennica Klassen
Director of Communications
Office of the Minister of Agriculture and Agri-Food
jennica.klassen@agr.gc.ca
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
aafc.mediarelations-relationsmedias.aac@agr.gc.ca
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Spencer Fair
Minister's Office
Spencer.Fair@Ontario.ca
Connie Osborne
Ministry of Agriculture, Food and Agribusiness
OMAFRA.media@ontario.ca