TORONTO — The federal and Ontario governments are investing up to $20 million in a new program aimed at helping local farmers, food processors and agribusinesses expand sales of Ontario-grown products in domestic and international markets, as the sector navigates trade pressures, tariffs and broader economic uncertainty.
The funding, announced Tuesday, will be delivered through the Market Diversification and Trade Resiliency Initiative, a new stream under the Sustainable Canadian Agricultural Partnership (SCAP). Governments say the initiative is designed to strengthen competitiveness, improve market access and support businesses looking to diversify their customer base and production capacity.
The program is aligned with Ontario’s Grow Ontario Strategy, which the province says is focused on long-term resiliency and job creation across the agri-food supply chain. Ontario’s agri-food sector is valued at nearly $52 billion, according to the province.
“Expanding markets for Ontario food products ensures farmers and food processors have more reliable export opportunities,” said the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food. “We are building a stronger, more resilient future for agriculture by improving market access and leveraging our shared strengths.”
Ontario Agriculture, Food and Agribusiness Minister Trevor Jones said the funding will help businesses reach new customers while reinforcing the province’s role as a major food-producing jurisdiction.
“This investment will help our local farmers and agribusinesses sell more products grown in Ontario to markets around the world,” Jones said. “Our government is proud to support the farmers and businesses who drive our nearly $52 billion agri-food sector forward each and every day.”
The initiative is expected to support a range of projects, including planning and marketing work, product development, and capital investments that help businesses adapt to new markets. The program will open for applications on Feb. 17, 2026, with submissions accepted until 11:59 p.m. EST on March 17, 2026, the province said.
The initiative includes three funding streams, each intended to address different stages of market expansion. The first supports market development and diversification planning, helping businesses prepare for entry into new or expanded markets. The second stream supports implementation activities such as new product development and broader marketing strategies. The third stream is focused on equipment and technology, including production investments that support diversified products and meet the requirements of entering new markets.
Funding will cover a portion of eligible project costs, with cost-share levels and maximum funding amounts varying depending on the proposal type. Governments said the program will offer increased support for export development projects targeting non-U.S. markets, while also providing support for projects aimed at U.S. customers.
Industry groups representing producers and processors welcomed the initiative, pointing to the need for stronger market access and improved competitiveness for Ontario’s food economy.
“The CFFO supports the Market Diversification and Trade Resiliency Initiative as an important opportunity for producers of safe, high-quality food to expand their reach into new markets. By opening doors to more customers at home and abroad, this initiative strengthens our agri-food sector and creates greater opportunities for Ontario and Canadian producers to succeed on a global scale.”
— Henk Vaarkamp, President, Christian Farmers Federation of Ontario
The food and beverage processing industry, one of Ontario’s largest manufacturing employers, also signalled support for the program, noting the sector’s reliance on small businesses and the importance of long-term viability.
“As the largest manufacturing sector by employment in Ontario, food and beverage processing comprises over 4,000 companies, 90 per cent of which are small businesses. We appreciate the ongoing strong support of the sector from the provincial government. The creation of this fund highlights the need to increase competitiveness and encourage expansion into new markets. This will help ensure an ongoing viable processing sector in Ontario.”
— Chris Conway, CEO, Food & Beverage Ontario
Farm groups said expanding and securing markets is increasingly important for producers, both locally and internationally, as supply chains adjust to shifting demand and trade conditions.
“Ontario farmers produce some of the highest quality food and agricultural products in the world. Creating and strengthening reliable markets for our products has never been more important both at the local level and globally. We appreciate the efforts of the province and the federal government as we work together to support a strong, vibrant, and growing agricultural sector.”
— Drew Spoelstra, President, Ontario Federation of Agriculture
Ontario’s Ministry of Agriculture, Food and Agribusiness will deliver the initiative and provide program guidelines through its website. The province also noted that strengthening sector capacity, growth and resiliency were priorities identified by federal, provincial and territorial agricultural ministers in The Guelph Statement.
The funding forms part of the broader five-year SCAP framework (2023–2028), a $3.5-billion joint federal, provincial and territorial investment intended to support competitiveness, innovation and resiliency in Canada’s agriculture and agri-food sector. Under the framework, governments have committed $1 billion to federal programs and activities and $2.5 billion to programs designed and delivered by provinces and territories, cost-shared 60 per cent federally and 40 per cent provincially or territorially.
For businesses considering applying, the province said additional information is available through the Agricultural Information Contact Centre.
