AFA welcomes investments in food processing, succession, trade and biofuels while calling for stronger farm margins and risk\-management support.
There are encouraging signs for Canadian agriculture in the 2026 federal budget and recent trade developments, but the Alberta Federation of Agriculture (AFA) says Ottawa should judge their success by a straightforward measure: are farmers and ranchers more profitable?
AFA says recent commitments involving food processing, infrastructure, farm succession, capital investment, trade diversification and biofuels could benefit agriculture. However, the organization cautions that expanding processing capacity and improving food affordability will accomplish only so much if primary producers cannot earn sustainable returns.
“We can invest billions in processing, infrastructure and food affordability, but if the farmers and ranchers producing the food cannot earn sustainable returns, we are missing the foundation of food security,” AFA Executive Director Aaron Stein said.
Billions targeted at Canada's food system
One of the developments highlighted by AFA is the federal government's $3.2-billion National Food Security Strategy.
The strategy is designed, in part, to give farmers more places to sell their products while increasing domestic food processing and reducing Canada's dependence on imported food.
Among its measures are a $1-billion Food-Link Fund supporting food distribution infrastructure, $1 billion in Farm Credit Canada financing for food processing projects and a $750-million Controlled Environment Agriculture Growth Pathway Program.
For Alberta, AFA sees potential opportunities in meat processing, grain and pulse processing, oilseed crushing, horticulture and regional food infrastructure.
But the organization wants those investments to translate into more competition for agricultural commodities and stronger farm\-gate prices, rather than simply adding capacity farther along the supply chain.
That distinction is important for producers. More processing capacity can potentially create additional domestic buyers for crops and livestock, but AFA argues the real measure of success should be whether farmers capture some of the resulting economic value.
Farm succession changes welcomed
AFA is also encouraged by proposed changes affecting family farm transfers.
Budget 2026 proposes expanding eligible intergenerational farm rollovers to include nieces, nephews, grandnieces and grandnephews beginning Jan. 1, 2027.
The change could be significant for operations where there is no child positioned to take over the farm but another family member wants to continue the business.
The budget also contains capital\-investment measures intended to encourage businesses to purchase equipment and make other productivity\-enhancing investments.
For agriculture, where machinery, buildings, technology and other infrastructure can require substantial capital, AFA says those measures could help producers modernize their operations.
China agreement gives farmers greater trade certainty
Trade is another area where the organization sees encouraging developments.
Canada and China recently agreed to extend favourable market access for Canadian canola meal and peas through the end of 2028. The agreement also covers Canadian lobster and crab.
The extension builds on the trade arrangement reached earlier in 2026 and gives producers and exporters additional certainty in one of Canada's most important overseas agricultural markets.
China also restored access for Canadian beef earlier this year, while tariffs on Canadian canola seed were lowered under the earlier arrangement.
For Prairie producers in particular, predictable access to China can influence marketing opportunities for canola and pulse crops.
AFA also sees opportunities arising from Canada's broader push to diversify exports, improve trade corridors and invest in technology.
Biofuels could create another source of crop demand
Proposed changes involving renewable fuels could also affect farm markets.
AFA says changes to the Clean Fuel Regulations and increased renewable fuel production could create additional demand for Canadian agricultural feedstocks.
The opportunity, however, comes with possible trade-offs.
Greater biofuel production could benefit growers through additional demand for crops and crop products, but AFA says policymakers also need to consider potential effects on livestock feed supplies and farm fuel costs.
Again, the organization wants the impact assessed at the producer level rather than simply measuring investment or processing volumes.
Profitability remains the missing piece
Despite the positive measures, AFA says Budget 2026 does not go far enough in directly addressing the financial health of Canadian farms.
“Where is the direct focus on whether the farmer growing the crop or raising the livestock can make a reasonable return?” Stein said. “Producer profitability must be at the core of agricultural policy, not an afterthought.”
AFA wants farm profitability established as an explicit agricultural policy objective, with measurable outcomes attached to it.
The organization also continues to call for stronger business risk management programs, improved AgriStability compensation and a permanent increase in the interest\-free portion of the Advance Payments Program.
Those concerns come as farmers continue to manage substantial expenses for fertilizer, seed, livestock feed, fuel, equipment and financing.
AFA argues that providing producers access to additional credit does not solve the underlying problem if farm margins remain inadequate.
Who gets what share of the grocery dollar?
The farm organization is also connecting producer profitability with the continuing debate over grocery affordability.
While AFA supports efforts to increase competition and keep food affordable for consumers, it wants greater transparency throughout the food supply chain.
Specifically, the organization is calling for better information about prices and margins from the farm gate through processing, distribution and retail.
The objective would be to provide both farmers and consumers with a clearer picture of where food\-price increases occur and how the value of a food product is divided throughout the supply chain.
For AFA, affordable food and profitable farms should not be competing objectives. It maintains that Canada's food system needs both.
Equipment costs, labour, research and water also on the list
AFA is seeking clarification about agriculture's exclusion from the proposed $15\-million Canada Growth Incentive and says tariffs on some imported farm machinery, replacement parts and agricultural technology could add to farmers' costs.
The organization supports tariff relief when essential machinery or technology cannot reasonably be sourced from Canadian manufacturers.
Labour remains another concern.
Budget 2026 proposes $151.5 million over five years for Temporary Foreign Worker Program reforms. AFA welcomed the commitment but is calling for an agricultural approach that recognizes the sector's mixture of highly seasonal and year-round employment needs.
The organization is also urging continued investment in public agricultural research, irrigation and livestock water infrastructure and drought preparedness.
Taken together, AFA's message to Ottawa is that investment in food security and Canada's agricultural supply chain is welcome, but the farm itself cannot become the weak link.
Processing plants, export corridors and new markets can create opportunities. For producers, however, the ultimate measure will be whether those opportunities produce more buyers, manageable costs and sustainable returns at the farm gate.