The 10-year plan is designed to support farmers and lower grocery costs
The federal government is looking to support producers and lower grocery costs for Canadians through its National Food Security Strategy.
The strategy announced on June 11 commits at least $3 billion over 10 years to address multiple areas of Canada’s food supply chain.
Here’s how the funding will be distributed.
$1 billion is earmarked to support the construction of two additional food terminals, and the establishment or expansion of 10 food hubs by the end of 2028.
Currently Canada only has one food hub – the Ontario Food Terminal.
It’s the largest wholesale fruit and produce distribution centre in Canada and the third largest in North America.
The Competition Bureau and the Competition Tribunal will receive $130 million to do its work related to anti-competitive business practices.
To support domestic food production in Canada, the government will invest in multiple areas.
$1 billion will be for the Agri-food Project Finance Fund through Farm Credit Canada. This will help businesses secure seed funding to expand food processing capacity.
Another $150 million will be for the Food Security Fund to help small and medium-sized businesses upgrade equipment, grow, produce, and process more food in Canada.
And a further $100 million is for the Collaborative Food Fund to help producers expand agri-processing.
The federal government also plans to invest in year-round fruit and vegetable production.
$750 million is designated to expand Canada’s ability to produce fruit and vegetables through greenhouses, vertical farms, or other enclosed growing spaces.
In addition, Ottawa commits to reducing red tape to streamline approvals for inputs like seed and fertilizers, and veterinary products.
Other commitments include doubling the guaranteed loan limit and extending terms of the Canadian Agricultural Loans Act to support new farmers and intergenerational farm transfers, and launching a task force to examine supports related to succession planning.
Multiple industry groups welcomed the government’s commitment to Canadian ag and food.
The Canadian Federation of Agriculture is pleased the strategy “shows a renewed focus and substantial investments to create a more resilient agri-food sector that will improve farm competitiveness and food affordability.”
Further clarity and action are needed to see the strategy’s full potential, the CFA added.
Fertilizer Canada also applauds the strategy.
Providing Canadian farmers with timely access to inputs helps them remain competitive compared to their counterparts elsewhere.
“Compared to other jurisdictions, Canada’s approval process delays access to new technologies, placing our producers at a disadvantage,” Michael Bourque, the organization’s president and CEO, said in a statement. “We welcome the strategy’s focus on streamlining approvals and regulatory processes, reducing red tape, and eliminating Canadian Food Inspection Agency backlogs to help bring innovations to market more efficiently.”
And Grain Growers of Canada says the strategy recognizes farmers’ part in the supply chain, and that it will be looking to ensure these promises become concrete actions.