Thunder Bay — Ontario is injecting an additional $30 million into its forestry sector to protect jobs, sustain northern communities, and help sawmills adapt to shifting markets in the face of U.S. trade duties and tariff threats.
The province said the investment will build and maintain forestry access roads and provide targeted support to sawmills as they seek new markets for woodchips. Officials framed the announcement as part of a broader strategy to make Ontario’s forestry sector more competitive and resilient while calling on the federal government to match provincial commitments.
Expanding Road Access and Market Support
“Forestry is a pillar of our economy and forest sector businesses are the foundation of strong, thriving communities across Ontario,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “Our government is backing our province’s forest sector to ensure it is resilient and strong in the face of U.S. trade threats, and we’re calling on the federal government to join us in standing up for Ontario’s forestry workers.”
The new funding includes $20 million for the Provincial Forest Access Roads Funding Program, bringing total provincial support for the program this year to more than $79 million. The Crown forest road network plays a dual role: providing businesses with safe, reliable routes for harvesting and transporting wood, while also serving hunters, anglers, tourists, and local communities.
The government is also allocating $10 million through the Ontario Sawmill Chip Support Program, designed to help sawmills find alternative markets for their woodchips, such as energy production or substitutes for single-use plastics. Officials said the measure will provide immediate relief while positioning sawmills for longer-term growth.
“Today’s announcement is just one more example of the record investments Ontario is making to protect the workers who depend on the good-paying jobs in the forestry sector,” said Mike Harris, Minister of Natural Resources. “We have always stepped up to support forestry, and this additional $30 million in provincial funding will help build a stronger, more adaptive and resilient forestry sector in Ontario.”
Building on Previous Investments
Ontario has invested heavily in forestry since 2018, committing more than $72 million through the Forest Sector Investment and Innovation Program and nearly $50 million through the Forest Biomass Program. The government said these initiatives are helping companies expand into new markets, adopt innovative practices, and compete more effectively in a global industry.
The sector generates close to $22 billion in annual revenue and provides roughly 128,000 jobs across Ontario, many in Indigenous, rural, and northern communities.
Industry and Community Reaction
The announcement drew support from industry groups, local leaders, and northern associations.
“The complete suite of measures being announced today demonstrates the continued commitment by Premier Ford, Minister Harris, Associate Minister Holland, and the entire Ontario Government to protect Ontario’s advanced forest product sector,” said Ian Dunn, President and CEO of the Ontario Forest Industries Association. “The Forest Access Roads Funding Program has been an incredibly successful public-private partnership … Based on OFIA analysis, for every public dollar invested into the program, the forest sector invests three.”
George Pirie, Minister of Northern Economic Development and Growth, said the investment underscores the government’s focus on northern prosperity. “Our government is doing our part and moving to strengthen Northern Ontario’s forestry sector. With this $30 million investment, Ontario is driving economic growth and creating long-term opportunities for workers and communities.”
Thunder Bay Mayor Ken Boshcoff called the funding “critical to the wellbeing of companies that are integral to the prosperity of Thunder Bay and region,” adding that the road program also provides access to the natural environment for all Ontarians.
Other groups emphasized the broader benefits of forest road expansion. “Enhancing the Forest Access Roads Funding Program is an investment in critical northern infrastructure that pays huge returns for the people of Ontario,” said Matt DeMille, Executive Director of the Ontario Federation of Anglers and Hunters.
Rick Dumas, President of the Northwestern Ontario Municipal Association and Mayor of Marathon, added: “This is not just about forestry — these investments are about people, communities, and access. Forest roads are lifelines in Northern Ontario. They ensure emergency services can respond, families can hunt and fish, and industries like mining can operate.”
For municipalities dependent on sawmills, the chip support program was singled out as vital. “The sawmill chip program is a lifeline at a time when our pulp and paper sector is in transition,” said Danny Whalen, President of the Federation of Northern Ontario Municipalities. “It keeps mills operating, safeguards jobs, and gives our communities the stability they need while industry and government work together on long-term solutions.”
Call for Federal Support
While Ontario has positioned itself as a consistent backer of forestry, the province is pressing Ottawa to commit additional funding. Officials argue that sustained federal investment is necessary to shield Ontario’s sector from U.S. trade measures and to ensure workers and communities receive adequate support.
“As Ontario continues to step up with significant provincial support, the province is calling on the federal government to come to the table in support of the workers and businesses in this vital sector,” the government said.
