Federal Budget 2025 Partly Aligns With Farmers' Needs

University of Calgary

Calgary, AB – A comprehensive analysis by The Simpson Centre at the University of Calgary reveals mixed results when comparing Canadian farmers' policy priorities with measures introduced in the 2025 federal budget.

Based on a national survey of 979 agricultural producers, the research team examined how federal budget allocations align with farmers' stated preferences across taxation, trade, transportation, business risk management, labour, and sustainability. The findings show both significant alignment and notable gaps between farmer priorities and government action.

The survey revealed that Canadian farmers prioritize trade and market access, tax relief and financial support, transportation infrastructure for agricultural goods, and enhanced risk-management tools. Budget 2025 responds to several of these concerns with improved AgriStability coverage, substantial trade and infrastructure investments, CFIA digital modernization, Accelerated Capital Cost Allowance tax incentives, and new financing opportunities through Farm Credit Canada and a proposed Sustainable Bond Framework.

However, critical gaps remain. The budget does not adequately address farmers' concerns about fuel and energy taxation, interprovincial trade barriers, or strategies to handle U.S. trade tensions and non-tariff barriers, issues that directly affect farm profitability and competitiveness.

"Agriculture and agri-food employed 2.3 million people in 2024—almost 1 in 9 Canadians—and contributed nearly 7% to our GDP," said Ohi Ahmed. "Despite this enormous economic impact, farmers have historically felt their concerns are overshadowed by other issues in public policy. This analysis provides evidence-based insight into where government policy is working for farmers and where more attention is needed."

The research comes at a pivotal time for Canadian agriculture. With farmers managing the intersection of economic productivity, food security, and environmental stewardship, understanding the alignment between their needs and federal policy is essential for maintaining a competitive and resilient agricultural sector.

The findings underscore The Simpson Centre's commitment to evidence-based policy analysis that supports Canadian agriculture and contributes to informed decision-making at all levels of government. The Simpson Centre continues to engage with agricultural stakeholders to ensure farmer voices inform ongoing policy development.

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