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By Alice McFarlane

Federal Budget 2025

Federal budget commits to export growth

Nov 5, 2025 | 9:47 AM

The agriculture community was closely watching yesterday’s federal budget for any sign of help in dealing with tariffs.

There was emphasis on trade diversification with a focus on biofuel production investments and increased business management support.

The budget set a goal to double non-U.S. exports over the next 10 years leaning heavily on the Asia-Pacific region. Additional funds will go to deepening trade relationships with European customers.

The biofuels incentive was announced in early September where Ottawa said it was taking action to assist the country’s canola and agriculture producers by introducing a new biofuel production incentive and amending the country’s Clean Fuel Regulations to support the domestic biofuels industry.

Agriculture and Agri-Food Canada, along with the Canadian Food Inspection agency will see changes. The budget said there would be a reduction in scientific activities where a streamlined approach can be taken.

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Grain Growers of Canada (GGC) responded to targeted wins for grain farmers in the budget including the permanent reversal of the capital gains tax increase but cautioned that other measures could undermine farm competitiveness.

“Budget 2025 acknowledged the impact that the capital gains tax increase would have had on family-run grain farms across Canada by permanently reversing it,” GGC Executive Director Kyle Larkin said. “This will ensure that family farms can continue their succession planning with certainty and that the next generation of farmers does not pay millions of dollars more in taxes.”

Saskatchewan farmer and GGC Chair Scott Hepworth said he is seeing first-hand how trade uncertainty is impacting grain farmers across the country.

“With challenges in the U.S. and tariffs in China, producers are under real pressure. The new investments in digital export tools and market diversification are positive steps,” he said. “We need every tool available to keep grain moving, find new customers, and protect our bottom line in an unpredictable global environment.”

Infrastructure also features prominently in Budget 2025, with $213 million for the Major Projects Office to coordinate public and private investment and a new $5 billion Trade Diversification Fund to strengthen Canada’s export corridors. With nearly 70 per cent of Canadian grain exported, efficient port infrastructure remains vital to keeping products moving to global markets on time and competitively.

GGC also expressed concern over the government’s plan to reduce Agriculture and Agri-Food Canada’s operating budget by 15 per cent over three years, a move that could undermine public research and breeding programs essential to innovation and productivity.

“While the budget provides much-needed clarity for farmers; it falls short of delivering the full competitiveness framework needed,” Larkin said. “We look forward to continuing to work with the government to ensure the sector remains competitive, resilient, and profitable to drive Canada’s export economy.”

Larkin said what was missing from the budget was any commitment to extended interswitching, a key measure that expired in March 2025 and had allowed the sector to access competing rail lines, reducing shipping costs and improving service.

“Without extended interswitching, farmers lose a competitive tool that kept costs in check and performance accountable,” Larkin added.

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alice.mcfarlane@pattisonmedia.com