Positive steps on trade and competitiveness, but key agricultural priorities remain unaddressed

The Ontario Federation of Agriculture (OFA) acknowledges the provincial government’s 2026 budget, released yesterday, which focuses on protecting Ontario’s economy amid ongoing trade uncertainty. While the budget includes several measures that will benefit the agri-food sector, the four key pre-budget policy asks put forth by OFA were not substantively addressed.

OFA welcomed several positive measures in the budget:

• The small business corporate income tax rate cut from 3.2% to 2.2% will directly benefit incorporated farm businesses.
• The $150-million Ontario Together Trade Fund will help agri-food businesses diversify exports to non-U.S. markets.
• OFA members told us in the 2025 Farm Business Confidence Survey that ‘encouraging Ontarians to buy local food’ was the second highest policy priority for 2026, and the new Buy Ontario Act, which introduces mandatory domestic procurement requirements with agriculture identified as a priority sector, is a positive step toward expanding the domestic agri-food market.
• Also, the $41 million in new irrigation infrastructure investment for Niagara and Leamington will deliver water to hundreds of farms.

While OFA appreciates that the expanded accelerated capital write-offs will help farmers and agri-food processors invest in new machinery and equipment, we are disappointed by the absence of direct policy aimed at expanding food processing capacity in Ontario. The budget did not introduce any targeted policies aimed at expanding Ontario’s food processing sector. In terms of GDP and jobs created in Ontario, food manufacturing is neck and neck with the auto manufacturing sector, and is a unique strength for Ontario’s economy, but it requires further investment to deliver its full potential.

OFA has also been advocating for modernization of the Wildlife Damage Compensation Program to address longstanding issues livestock producers have had with the program and to introduce coverage for crop producers who have no program that can effectively compensate them for financial losses caused by Ontario wildlife.

“OFA continues to advocate at every opportunity for the establishment of a dedicated agri-food processing growth fund, enhancements to the Risk Management Program, strengthened Foodland and Buy Local initiatives, modernized wildlife damage compensation for farmers, and a strengthened Agricultural Impact Assessment framework and resources,” says Drew Spoelstra, President, Ontario Federation of Agriculture. “We appreciate the government’s focus on trade resilience and economic competitiveness, and we will continue to work constructively with the province to ensure that agriculture and our rural communities are not left behind as Ontario navigates these challenging economic times.”