Regulations Amending the Agricultural Marketing Programs Regulations (2026): SOR/2026-66

Canada Gazette, Part II, Volume 160, Number 8

Registration
SOR/2026-66 March 31, 2026

AGRICULTURAL MARKETING PROGRAMS ACT

P.C. 2026-303 March 31, 2026

Her Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food with the concurrence of the Minister of Finance, makes the annexed Regulations Amending the Agricultural Marketing Programs Regulations (2026) under paragraph 40(1)(c)^{footnote a} of the Agricultural Marketing Programs Act ^{footnote b}.

Regulations Amending the Agricultural Marketing Programs Regulations (2026)

Amendments

1 (1) Subsection 10(7) of the Agricultural Marketing Programs Regulations ^{footnote 1} is replaced by the following:

(7) Subject to subsection (9), for the purposes of subsection 9(1) of the Act, the amount fixed by regulation is $250,000 for program year 2025.

(2) Subsections 10(7.1) and (8) of the Regulations are renumbered (9) and (10), respectively, and section 10 is amended by adding the following after subsection (7):

(8) Subject to subsection (9), for the purposes of subsection 9(1) of the Act, the amount fixed by regulation is $250,000 for program year 2026.

Coming into Force

2 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues

Canada’s agricultural producers continue to face uncertainty and financial pressures heading into the 2026 growing season. These are the result of challenges related to cash flow, the high cost of borrowing and increased input expenses, as well as uncertainties resulting from market and geopolitical issues.

According to the most recent Consumer Price Index data for September 2025, overall prices in Canada were 2.4% higher than in September 2024 on a year-over-year basis. Over the same period, prices for food purchased from stores increased by about 4.0%, indicating that grocery inflation once again outpaced the growth rate of total inflation. Farm debt increased by 14.1% in 2024, the largest annual rise since 1981, while interest expenses grew by 28.6%. After peaking at $9.0 billion in 2024, due to increases in interest rates and borrowing, Agriculture and Agri-Food Canada (AAFC) expects modest declines in interest expenses in 2025 and 2026. The benefits of recent rate cuts are expected to materialize only gradually, with debt-service burdens lagging broader monetary easing. Farm Credit Canada (FCC) has found that, driven primarily by sharp increases in fertilizer and fuel prices resulting from global supply-chain disruptions and the war in Ukraine, Canada’s crop input market (fertilizer, crop protection products, seed and fuel) reached record highs in 2022 ($21.8 billion) and 2023 ($23.1 billion). Their analysis indicates that the market has entered a period of high-cost stabilization, with total input expenditures estimated at around $20 billion in 2024–2025 and increasing to around $22.5 billion by 2026.

Geopolitical conditions remain a key uncertainty, with ongoing global trade tensions, particularly with the United States and China, continuing to influence agricultural market conditions despite recent signs of renewed diplomatic and commercial engagement between Canada and China.

Background

The APP is a statutory program under the Agricultural Marketing Programs Act (the Act) and its regulations. It is a federal loan guarantee program that provides eligible agricultural producers with access to low and no-interest cash advances to increase their cash flow over their production and marketing periods and increase their marketing opportunities (e.g. sell when it is most opportune and at the best price). Eligible producers can access cash advances of up to 50% of the estimated market value of eligible agricultural products being produced or held in storage. The maximum APP advance is $1 million (i.e. $1 million against a crop value of around $2 million), with the federal government typically paying the interest to administrators’ lenders on the first $100,000 advanced to each producer (referred to as the interest-free limit). Most major agricultural commodities are eligible under the program, including grains and oilseeds, fruits and vegetables and livestock.

The APP is administered by 24 industry organizations (APP administrators) across Canada, which issue advances using credit that they are able to negotiate with their lenders (banks, credit unions, etc.). Because of the federal guarantee, APP administrators are able to negotiate lower interest rates, which allows them to offer competitive interest rates to producers on the interest-bearing portion of advances.

APP advances are typically available starting April 1 of each year until March 31 of the following year (when advances for the next program year become available). Producers are required to make repayments within 30 days of a sale of the commodity on which an advance was obtained, with up to 18 months to fully repay advances on most eligible commodities (up to 24 months for cattle and bison advances). For example, the application deadline for 2025 advances closes on March 31, 2026, with a repayment deadline of September 30, 2026 (March 31, 2027, for cattle and bison advances). New advances for the 2026 program year will be available beginning on April 1, 2026, with an advance deadline of March 31, 2027, and a repayment deadline of September 30, 2027 (March 31, 2028, for cattle and bison advances).

On average (based on 2016–2021 data) and under normal program parameters, the APP issued $2.5 billion in advances to over 20 000 producers and paid approximately $17.3 million in interest on behalf of producers. However, interest rates were much lower during these years, so costs were also lower. As the APP advances are guaranteed under the Act, where necessary, AAFC will repay defaulted advances to APP lenders, which then become debts to the Crown. This, however, is a rare occurrence under the program (only around 0.96% of total advances) and on average, 50% of defaulted amounts are recovered.

The APP’s interest-free limit was increased to $250,000 for the 2022, 2024 and 2025 program years, with an increase to $350,000 for 2023. Further, in September 2025, the limit was increased to $500,000 for canola advances issued for the 2025 and 2026 program years in response to trade actions taken by China on Canadian canola products. On an accrual basis, additional interest savings for the sector are estimated to amount to $175.1 million over the three-year period (2022 to 2024), with 2025 projecting to have a total savings of $52 million.

• For 2022, 18 940 producers received $3.5 billion in advances. A total of 9 634 producers benefited from the limit increase and, of these, 5 122 were able to maximize the $250,000 interest-free benefit.
• For 2023, 21 467 producers received $4.5 billion in advances. A total of 7 504 producers received interest-free advances above $250,000 and, of these, 4 950 received the maximum interest-free benefit of $350,000.
• For 2024, 22 330 producers have received $4.2 billion in advances to date. A total of 13 289 producers have received interest-free advances above $100,000 and, of these, 6 969 have been able to receive the maximum interest-free benefit of $250,000.
• For 2025, 22 589 producers have received $4.7 billion in advances to date. A total of 13 724 producers have received interest-free advances above $100,000.

The APP limits are set in the Act and can be adjusted through an amendment to the Regulations. Without this regulatory amendment, the Regulations currently require that the interest-free limit return to $100,000 for all non-canola advances beginning with the 2026 APP year.

Objective

The objective of this temporary measure is to decrease the cost of borrowing under the APP, increasing producer access to the cash flow it provides over the 2026 growing and marketing season. As APP cash advances are advances against producers’ future sales, reducing the interest paid by producers will also ensure they retain more of their revenues, which they can then reinvest back into their farming businesses. The measure is expected to help to relieve some of the uncertainty and financial pressures discussed above so producers can cover their operating costs and continue to grow and market their agricultural products in 2026.

Broadly, this temporary change to the APP will directly impact primary food production, support a stable consistent food supply and help to reduce some of the pressures resulting in food inflation and economic volatility in the sector.

Description

The temporary measure amends section 10 (Fixed Amounts) of the Regulations as follows:

• 1 (1) Subsection 10(7) of the Agricultural Marketing Programs Regulations is replaced by the following:
  • (7) Subject to subsection (9), for the purposes of subsection 9(1) of the Act, the amount fixed by regulation is $250,000 for program year 2025.
• (2) Subsections 10(7.1) and (8) of the Regulations are renumbered (9) and (10), respectively, and section 10 is amended by adding the following after subsection (7):
  • (8) Subject to subsection (9), for the purposes of subsection 9(1) of the Act, the amount fixed by regulation is $250,000 for program year 2026.
• 2 These Regulations come into force on the day on which they are registered.

Consultation

The amendments were not prepublished in the Canada Gazette, Part I, as they constitute a simple and temporary change to the APP, one which has been made several times over the past few years and which the sector has supported.

There was sustained media coverage in 2025 concerning the many challenges farmers faced. These include the impacts of extreme weather conditions, market challenges and tariffs, increased interest rates and farm input costs, disruptions to supply chains due to international conflicts, and other challenges. Through ongoing consultations with APP administrators, which are sector organizations, it was determined that producers would welcome the additional interest savings in 2026–2027.

Though not a permanent change, the reaction from industry and media is expected to be neutral to positive.

Indigenous engagement, consultation and modern treaty obligations

An assessment of modern treaty implications was conducted on the amendment. The assessment did not identify any modern treaty implications or obligations. It is anticipated that producers in modern treaty areas could be recipients of the cash advances and benefit from the increased interest savings, where they meet the program’s eligibility criteria. The Department did not identify impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982.

An assessment was conducted to ensure that the amendment is consistent with the United Nations Declaration on the Rights of Indigenous Peoples and statutory obligations from section 5 of the United Nations Declaration on the Rights of Indigenous Peoples Act. There could be unintended effects anticipated with this amendment regarding the rights and interests of First Nations, Inuit and Métis peoples. While the objective of the amendment is to decrease the cost of borrowing under the APP, increasing producers’ access to the cash flow it provides, the benefit may not be enjoyed on an equal basis by First Nations, Inuit, and/or Métis peoples given that Indigenous peoples can face barriers to accessing the program, which were identified in the 2023 Review of the Agricultural Marketing Programs Act.

AAFC has begun consultations with Indigenous organizations with the aim of discussing and addressing barriers to accessing government financing programs, such as the APP. AAFC will also monitor and assess implications during the delivery of funds.

Instrument choice

Under the Act, an increase to the APP limits must be made by obtaining the approval of the Governor in Council to amend the Agricultural Marketing Programs Regulations. The Minister of Finance must concur with the program change.

Regulatory analysis

Benefits and costs

The benefit to producers of this program change will be in the form of increased interest savings on non-canola advances over $100,000 and up to $250,000 for all participating non-canola producers. It is expected that the program change will provide approximately 8 618 participants with a combined $37.4 million in additional interest savings for the 2026 program year, with average incremental savings of $4,340 per producer, depending on the value of their 2026 advance.

The total estimated cost to the Government of the program change includes the cost of bearing the added interest payments for 2026, as well as cost related to defaulted advances paid by the Government under the guarantee. It is expected that this program change will result in incremental costs to the Government of $36.2 million, including $29.4 million in interest costs and $6.9 million in default costs (net of recovered defaults). These estimates are based on a prime rate of 4.45%, an increase in participation based on past experience at this limit, and average historical default and recovery rates.

The not-for-profit APP administrators charge producers interest rates on the interest-bearing portion of advances. To cover the costs of administering the APP, they charge producers rates above the rate they pay their lenders (i.e. an interest spread). As this amendment will reduce the interest paid by producers and the interest spread, it will reduce the revenues APP administrators rely on to cover their costs. APP administrators also charge certain fees to help offset their costs, such as administrative and default management fees. Fees vary significantly across the program and are determined by the administrator’s business model and the size of its APP clientele. To offset the loss of interest spread revenue resulting from the interest-free limit increases from 2022 to 2026, some APP administrators may decide to increase their fees.

Through this temporary measure, the Government will provide a transfer to producers. However, in doing so, it generates corresponding benefits in the form of an increase in the interest-free portion of APP advances in order to provide participating farmers with access to affordable financing at a time when they are facing significant uncertainty and financial pressures heading into the 2026 growing season.

Small business lens

Analysis under the small business lens concluded that this regulatory amendment would impact small businesses, as defined under the Treasury Board Secretariat’s Policy on Limiting Regulatory Burden on Business (fewer than 100 employees or less than $5 million in annual gross revenues). The majority of Canadian farms fall under this definition. The amendment is not anticipated to result in additional direct costs to small businesses. It would increase the affordability of the APP and, therefore, increase farming businesses’ access to credit with which to cover their operating costs over the growing season.

One-for-one rule

The one-for-one rule does not apply. The regulatory amendment will not result in an increase or decrease in administrative burden to farming businesses.

Regulatory cooperation and alignment

The regulatory amendment is not anticipated to result in any regulatory cooperation and/or alignment issues and is not related to a work plan or commitment under a formal regulatory cooperation forum.

International obligations

This regulatory amendment is not impacted by obligations in Canada’s international trade agreements.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that a strategic environmental and economic assessment is not required.

Gender-based analysis plus

A gender-based analysis plus (GBA+) assessment was undertaken for this regulatory amendment based on program requirements and sector demographic information from the 2021 Census of Agriculture. Its conclusions were as follows.

This amendment will directly benefit agricultural producers, with a large share benefiting grain and oilseed farmers. Women represented 30.4% of farm operators and 26% of operators that farm grains and oilseeds in 2021. Indigenous farm operators represented 2.2% of all farm operators and 1.2% of all grain and oilseed farm operators in 2021. Grain and oilseed operators tend to be older, with 62.8% of operators over the age 55 and 8.7% under the age of 35 in 2021. This is a higher share than the sector as a whole, where 54.5% of operators were over 55 and 8.6% were under 35.

While underrepresented and marginalized groups make up a smaller portion of farm operators in the sector, they are more likely to benefit from the APP, as they are generally smaller scale operations and may not have access to commercial credit through banks and credit unions. Small and medium-scale farms tend to operate with fewer financial resources, have less capital to invest and less access to credit. It is expected that smaller farming operations run by underrepresented and marginalized groups will not benefit from the program change, while some medium operations may benefit from the change. Some of these operations may be run by underrepresented and marginalized groups.

As this amendment is targeting the farming sector related to primary food production, by supporting agricultural producers, the Government will support a robust and competitive food system that benefits the general population. Particular indirect benefits may be felt in regions where agriculture is a main economic driver, as income and profits are likely to have downstream positive impacts in the surrounding community.

Implementation, compliance and enforcement, and service standards

The Regulations come into force upon registration. For the majority of producers, the 2026 APP year will begin on April 1, 2026, as APP advances are typically available starting April 1 of each year until March 31 of the following year (when advances for the next program year become available).

AAFC will contact APP administrators to discuss this program change and what will be needed to roll it out to producers in time for the start of the 2026 program year. As in past years, federal officials will work with administrators to implement the program change, including drafting/amending 2026 advance guarantee agreements, updating program documents, promoting the extension of the interest-free limit increase, and taking any other necessary steps.

Contact

Justin Sugawara
Director
Financial Guarantee Programs Division
Programs Branch
Agriculture and Agri-Food Canada
Email: justin.sugawara@AGR.GC.CA