Federal Agriculture Minister Heath MacDonald says changes are coming to agriculture programs following the passage of the 2025 federal budget.
MacDonald says Agriculture and Agri-Food Canada (AAFC) will reorient its programs, research and operational spending to better align with both government priorities and the rapidly evolving agriculture sector.
“Every once in a while … a scrub of programs is a necessity,” MacDonald said, noting that sunsetting outdated initiatives will free resources for emerging technologies.
He added that the government will analyze all areas of work, from program operations to research, noting that private companies are doing much of the same work. The goal, he said, is to eliminate duplication and maximize impact.
Biofuels will be a key focus with the passing of the new federal budget. Ottawa is investing $372 million into a Biofuel Production Incentive that will run from January 2026 to December 2027. The overall goal is to strengthen domestic production and supply chains.
Macdonald says biofuels are a big part of the changes to the Clean Fuel Regulations, highlighting the Imperial Gas and Oil Strathcona refinery.
He noted the $750-million Imperial Oil project is converting 2.5 million tonnes of seed into 1 billion litres of biofuel — a fuel that could reduce greenhouse gas emissions by 85 per cent.
“It’s exciting stuff … Technology and innovation is there,” he said. “That’s what we need to … invest in … because it’s the future.”
He also emphasized the importance of domestic production: “If they can take 2.5 million tonnes of seed … that’s a big, big gap that we don’t have to worry about exporting into other countries.”
Regulatory reform is also on the radar, something that producers and farm groups have been pushing for.
MacDonald met with the president of the Canadian Food Inspection Agency (CFIA) this week and discussed speeding up regulatory decisions. He said timely decision-making with an economic lens is critical, especially for bodies such as the Pest Management Regulatory Agency (PMRA), which falls under Health Canada.
“We want to ensure that agriculture is front and centre when they’re making decisions relevant to food production, food safety, plant-based decisions …” he said.
MacDonald says better communication across government bodies is important to keep agriculture priorities top of mind.
To review the 2025 Federal Budget click here.
To hear Glenda-Lee’s conversation with Federal Agriculture and Agri-Food Minister Heath MacDonald, click on the link below.
