If you’re part of Canada’s agriculture or agri-food sector, the 2025 Federal Budget brings a wave of positive news for your business. From strengthened risk-management supports to expanded innovation incentives, this year’s measures are designed to stabilize your operations, enhance sustainability, and put more cash back in your hands through programs like SR&ED.
Stronger financial support
Running a business means managing constant risk; rising input costs, market fluctuations, and trade uncertainty. The federal government is stepping up with new measures to help stabilize your finances and protect your bottom line.
Under the AgriStability Program, Ottawa is investing $109.2 million in 2025–26 to boost compensation rates from 80% to 90% and double the per-farm cap from $3 million to $6 million. That means more reliable coverage when your income takes an unexpected hit.
You’ll also benefit from expanded access to interest-free working capital loans through the Advance Payments Program, with limits raised to $500,000 for canola producers and $250,000 for others over the next two years. These enhancements give your business more breathing room to manage costs and cash flow during volatile periods.
New opportunities in sustainable growth
If sustainability and clean energy are part of your business strategy, the new Biofuels Production Incentive is worth $372 million over two years, creates exciting opportunities. Whether you produce renewable fuel, supply feedstock, or use byproducts from your operations, this program can help you access new markets and strengthen your role in Canada’s clean energy economy.
The government is also unlocking $1 billion in additional lending through Farm Credit Canada, providing financial relief for agri-food businesses affected by trade disruptions. Plus, the exploration of a Sustainable Bond Framework could soon open even more doors for financing transition-aligned investments in processing, packaging, or logistics.
Additionally, the Clean Technology Investment Tax Credit includes eligible technologies for food and beverage companies investing in clean energy solutions. This credit can provide up to 30% of the capital cost of eligible clean technology investments, helping you reduce your carbon footprint while improving your bottom line.
Provincial Manufacturing Investment Tax Credits
In addition to federal incentives, many provinces offer Manufacturing Investment Tax Credits that can significantly benefit your company. These credits vary by province but generally provide refundable or non-refundable tax credits for investments in manufacturing and processing equipment. For example:
- Ontario offers a 10%-15% refundable tax credit (Non-refundable for Non-CCPC) on eligible expenditures for manufacturing and processing equipment.
- Quebec provides a tax credit of 15%-25% on eligible investments in manufacturing and processing equipment.
- Manitoba offers a 8% (7% refundable and 1% non-refundable) tax credit on eligible investments.
- Saskatchewan offers a 6% refundable tax credit on eligible manufacturing equipment.
These provincial credits can be combined with federal incentives to maximize your tax savings and reinvestment potential.
Unlock more with SR&ED tax credit
If your business is innovating, whether it’s creating new products, streamlining production, or improving sustainability, 2025 is a great time to revisit your SR&ED (Scientific Research & Experimental Development) strategy.
This year’s federal budget brings major updates to SR&ED, giving your business more opportunities to reclaim R&D investments and reinvest in growth. Find out more from our recent blog post, The biggest SR&ED updates in over a decade.
For your food and beverage business, these SR&ED improvements mean more cash in your pocket, so you can reinvest in the next generation of products, processes, or sustainable solutions.
Turn budget opportunities into growth with Ayming as your strategic partner
Your food and beverage business is a cornerstone of Canada’s economic and environmental future. With new financial programs, sustainability incentives, and enhanced R&D support, you have more tools than ever to strengthen your operations and invest in what’s next.
At Ayming Canada, we specialize in helping businesses like yours unlock every available funding opportunity, from grants and loans to SR&ED and investment tax credits like APITC, while supporting sustainable finance initiatives every step of the way.
Let’s turn your 2025 funding opportunities into real growth. Connect with Ayming today to get started.
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