Canada’s federal budget, tabled by Finance Minister François-Philippe Champagne on 5 November, puts C$124 million over three years into the Local Food Infrastructure Fund and changes the tax rules on farm investment and the transfer of family farms between generations.
The fund, administered by Agriculture and Agri-Food Canada, supports food banks and community projects such as greenhouses and food storage. The new money starts in the 2027-28 financial year, The Canadian Press reported, after food banks recorded a record of more than 2.3 million visits a month in March. Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, also highlighted C$610.3 million over four years for Nutrition North Canada and related initiatives.
For farm businesses, the budget expands the intergenerational rollover from 1 January 2027 and extends livestock tax deferral to regions hit by drought, flooding and excessive moisture, the Western Producer reported. It also proposes amending the Agricultural Loans Act “to improve access to capital for farmers, support intergenerational farm transfers”, according to Alberta Farmer Express. A new Productivity Mega Deduction allows farmers to write off investment in buildings and machinery, which the budget estimates will lower Canada’s marginal effective tax rate to 6.4 per cent.
The Wine Sector Support Program is renewed with C$176.9 million over three years. Beyond agriculture, the budget sets aside C$1.5 billion over nine years to build and refurbish community recreation facilities and ice rinks, and C$60 million over four years for National Gallery of Canada travelling exhibitions and digital access that the budget says will reach “rural, northern, and remote communities”, according to The Canadian Press.
The budget is framed around trade diversification. Non-US exports rose by C$33 billion in 2025 and are projected to grow by a further C$57 billion in 2026, although farm products are among the least diversified exports. Ahead of the budget, Champagne said: “A strong Canada is a better Canada at any negotiating table.”
For rural communities in the UK, where farm succession and investment incentives remain contested, Canada’s combination of relief on family farm transfers and write-offs for farm buildings offers a live comparison as the measures pass through Parliament in Ottawa.
