Canada and Ontario Commit $4.77 Million to Agri-Food Innovation

New funding to help Ontario farmers and agri-food companies stay competitive amid U.S. trade pressures

Ontario’s agriculture sector is getting a multi-million-dollar boost as the federal and provincial governments partner on new funding to drive innovation, sustainability, and competitiveness in farming.

Up to $4.77 million will flow into 48 research projects and 20 agri-food companies through the Ontario Agri-Food Research Initiative (OAFRI). The goal is to help Ontario’s farmers adopt cutting-edge technologies and stay resilient as trade tensions with the United States add uncertainty to markets.

A push for innovation

The investment is being delivered under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a five-year, $3.5-billion national framework that supports agriculture across the country. Ontario’s share will focus on equipping farmers and food businesses with the tools they need to compete globally.

Projects supported by this round of funding include:

• Testing new grape-growing strategies to improve both yields and food safety.

• Using probiotics to reduce the spread of harmful bacteria like Salmonella in poultry.

• Enhancing robotics to apply crop nutrients more precisely, cutting waste and costs.

• Developing AI-driven imaging tools to detect mastitis early in dairy cattle, improving herd health and milk quality.

For the province’s farming community, these projects represent practical solutions that could translate into higher-quality products, stronger yields, and safer food for consumers.

Proud to join Agriculture Ministers from across Canada to tackle shared challenges and build new opportunities together.

Thank you to my colleagues for a productive and successful Federal-Provincial-Territorial Ministers of Agriculture Conference. pic.twitter.com/A7okvL3RGj

— Trevor Jones (@TrevorJonesCKL) September 9, 2025

Support for agri-food businesses

Beyond research, the investment also supports entrepreneurship through the Grow Ontario Accelerator Hub, a program that helps agri-food and agri-tech startups bring innovations to market. Twenty companies have been selected to receive tailored support in business strategy, commercialization, and investment readiness.

Dave Smardon, President and CEO of Bioenterprise Canada Corporation, which delivers the Accelerator Hub, said Ontario’s scale of production makes leadership in innovation essential.

“The size of our agri-food production in Ontario is second only to California in North America,” Smardon noted. “Maintaining a leading position in agri-food innovation is critical to the health and growth of our industry. The support that the Ontario government has provided is helping to ensure that we do so and paves the way for even more innovation as the program continues.”

Strengthening food security and supply chains

Ontario is home to one of North America’s largest agri-food industries, generating billions in annual GDP and employing hundreds of thousands across farms, processing plants, and food distribution networks. However, rising input costs, supply chain disruptions, and shifting trade dynamics have made resilience a pressing concern.

Officials say this latest round of funding will strengthen food security by enabling Ontario farmers to adapt more quickly to change. By reducing disease in livestock, lowering fertilizer waste, and improving crop productivity, the province can maintain a strong and stable food supply while protecting the environment.

The funding also aligns with the Grow Ontario Strategy, a provincial plan that aims to enhance competitiveness, safeguard supply chains, and boost consumer confidence in local food production.

A collaborative approach

Delivered jointly by Agriculture and Agri-Food Canada and the Ontario Ministry of Agriculture, Food and Agribusiness, the investment reflects a broader trend of government support for research-driven agriculture. Under Sustainable CAP, Ottawa and the provinces share costs, with 60 per cent federally funded and 40 per cent provincially funded.

Since its launch in 2023, Sustainable CAP has already directed billions toward strengthening Canadian agriculture, from improving sustainability practices to helping producers adopt new technologies. The Ontario-focused OAFRI program is one of the key tools ensuring local producers benefit directly.

Looking forward

For Ontario’s farmers, the challenge is not just about surviving current trade uncertainties but positioning themselves for long-term success. By pairing traditional farming expertise with technology—from robotics and AI to advanced biology—the province hopes to cement its place as a leader in global food production.

As these projects roll out, the benefits are expected to ripple through the economy. Farmers may see cost savings and higher yields, consumers could enjoy safer and more sustainable food, and Ontario’s agri-tech sector will gain momentum as a hub for global innovation.

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