Agriculture and Agri-Food Canada (AAFC) will reshape how it funds and delivers agricultural programs, research, and operations as part of the 2025 federal budget. The department is targeting up to 15 per cent in savings over the next three years, as the federal government moves to reduce spending and refocus investments across departments.
AAFC says the changes will ensure its programs better align with government priorities, while continuing to support producers, provinces, and industry partners. Some initiatives outside the department’s core mandate — including the Agricultural Climate Solutions Living Labs — will be wound down.
The shift comes as Ottawa looks to balance fiscal restraint with its commitment to innovation and competitiveness in Canadian agriculture.
Focusing Research Where It Matters Most
AAFC plans to streamline some scientific research, particularly in areas where similar expertise already exists in academia or the private sector. Future research will focus on core priorities such as crops and horticulture, animal production, food, biodiversity, and environmental sustainability.
The department will continue to fund science and innovation through grants and contributions, with an emphasis on projects that support key industry needs and align with national priorities like sustainability and clean technology.
Leaner Operations, Faster Processes
To improve efficiency, AAFC says it will optimize internal services, reduce management layers, and expand automation to minimize manual work and reliance on external contractors. The goal: to operate with fewer resources while minimizing impacts on external service delivery.
By modernizing systems and cutting red tape, the department aims to streamline operations and ensure funding is directed where it can have the most impact — supporting producers and agri-businesses as they adapt, innovate, and stay competitive in a changing global marketplace.
