Canada's agricultural industry

Canada's agricultural industry is a powerhouse, driven by vast stretches of fertile land, advanced farming practices, and a strong commitment to quality.¹ As one of the world's leading food exporters, Canadian agriculture plays a critical role in both the national economy and global food security.

Overview of Canada's Agricultural Industry

Canada boasts a highly diversified agricultural sector, ranging from large-scale grain and oilseed farms on the Prairies to specialized horticulture and livestock operations across the country. The agri-food industry, encompassing primary agriculture (farming) and food and beverage processing, is a significant economic driver. In 2023, it contributed approximately $150 billion to Canada's GDP, representing 7% of the total GDP. The sector also provides a substantial number of jobs, employing 2.3 million people and accounting for one in nine jobs across the country.

Canada's agricultural success is heavily reliant on exports, producing more food than it can consume domestically. It ranks as the 5th largest exporter of food products globally, with raw and processed agricultural exports totaling nearly $82.2 billion in 2021.⁶ Over 50% of Canadian agricultural production is either exported directly or processed for export.

Major Areas of Agriculture in Canada

Canada's diverse geography and climate lead to distinct agricultural specializations across its regions:

• Prairie Provinces (Alberta, Saskatchewan, Manitoba): Often referred to as Canada's "breadbasket," this region is characterized by long, warm summers and cold winters, making it ideal for growing grains and oilseeds. It is the heartland of wheat, barley, and especially canola production, with chernozem soils being particularly fertile. Livestock, particularly cattle grazing, is also significant.
• Southern Ontario and Quebec: These provinces benefit from a milder climate, longer growing seasons, and proximity to large urban markets in both Canada and the United States. This region produces a wide variety of crops, including corn, soybeans, fruits (apples, tender fruits), vegetables, and dairy products. Dairying is particularly important around major cities.
• British Columbia: Southwestern British Columbia has a highly productive agricultural sector, known for its diverse range of fruits (highbush blueberries, cherries, apples) and vegetables, as well as wine grapes.
• Atlantic Provinces (Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland & Labrador): These provinces are significant for wild blueberries (lowbush berries), potatoes (especially Prince Edward Island), and some specialized crops, alongside important fisheries.

Major Produce Items and Volume

Canada is a leading producer and exporter of several key agricultural commodities:¹¹

• Grains and Oilseeds:
  • Wheat: Canada is a major global wheat producer, with most of it grown in the Prairies.
  • Canola: Canada is the world's largest producer and exporter of canola, accounting for over 30% of global supply and 60% of global trade. Approximately 40,000 Canadian farmers produce around 20 million tonnes of canola annually.
  • Barley and Oats: Significant production, primarily for feed and food uses.
  • Corn and Soybeans: Largely concentrated in Ontario and Quebec. Over 10% of Canada's total corn production is exported, around 1.4 billion kilograms annually.
• Pulses: Canada is the world's largest producer and exporter of lentils, with approximately 90% of total production from Saskatchewan.
• Livestock:
  • Cattle and Calves: Canada was home to 12.13 million cattle and calves on 71,380 farms in 2023. Alberta accounts for approximately 43% of the inventory.
  • Hogs: Canada had 13.91 million hogs on 7,160 farms in 2023, with Quebec, Ontario, and Manitoba being the leading provinces.
  • Poultry and Eggs: A significant supply-managed sector for domestic consumption.
• Fruits and Vegetables (Horticulture): This sector generates about $8 billion in farm cash receipts.
  • Blueberries: Canada is the world's largest producer and exporter of lowbush (wild) blueberries and the second-largest overall blueberry producer.
  • Potatoes: A major crop, especially in Prince Edward Island.
  • Apples: Grown in various regions, particularly Ontario.
• Maple Products: Quebec is a global leader in maple syrup production.

Canola: Volume and Quantity Exported to USA

Canola is a cornerstone of Canadian agriculture.

• Production Volume: The USDA forecasts Canadian canola production at 18.80 million tonnes in 2024/25 and 19.50 million tonnes in 2025/26. Statistics Canada reported that Canadian oilseed processors crushed a record 11.4 million tonnes of canola in 2024, up 8.1% from 2023.
• Export to USA: The United States is Canada's leading market for canola exports, valued at $8.6 billion in 2023. This includes canola oil and meal. In 2023, the U.S. imported 2.9 million metric tons (MMT) of canola oil and 3.6 MMT of canola meal from Canada. Canola oil's approval for use in U.S. renewable fuel production in 2022 has significantly increased its exports to the U.S., rising by 40% in 2023.

Internal Consumption and Excess Produce

Canada's agricultural sector is strongly export-oriented, meaning it consistently produces more than it consumes domestically for many commodities. While exact figures for "excess produce" are difficult to isolate, the concept applies to several areas:

• Export-Dependent Commodities: For crops like wheat, canola, and pulses, a large proportion (often 70% or more) is specifically grown for export markets. This "excess" over domestic consumption is fundamental to the industry's business model.
• Supply-Managed Industries: Dairy, poultry, and eggs operate under supply management systems designed to match domestic production with domestic demand, aiming to minimize significant surpluses within those specific sectors.
• Seasonal Surpluses and Imperfect Produce: Despite efficient supply chains, there will always be instances of seasonal gluts, cosmetic imperfections, or logistical issues that lead to surplus edible produce.

Donating Excess to US Communities and Local Communities

Donating excess produce is a growing area of focus for sustainability and food security in Canada:

• Local Canadian Communities: Food banks and charities across Canada actively work to collect and distribute surplus produce from farms, wholesalers, and retailers to combat food waste and hunger. Organizations like Food Banks Canada and various provincial/regional initiatives play a crucial role. Farmers often have direct relationships with local food programs.
• Donating to US Communities: Direct, large-scale donations of fresh produce across the border to US communities are less common due to logistical complexities, cross-border food safety regulations, and commercial trade priorities. However, it's not unheard of for individual initiatives or cross-border non-profits to facilitate such actions on a smaller, localized scale, particularly in border communities. The primary flow of agricultural goods between the US and Canada is commercial.

Revenue and Importance for Canadian Economy

The agri-food sector is a cornerstone of the Canadian economy. In 2023, it generated $150 billion in GDP, making it a vital contributor to national prosperity. Farm cash receipts from the sale of cattle and calves alone generated $14.9 billion in 2023. The seed industry, a significant part of the agricultural sector, contributes over $6 billion annually to the Canadian economy. The sector's strong export performance, particularly in grains and oilseeds, contributes positively to Canada's trade balance.

Number of People Employed and Living Conditions of Farm Workers

As noted, the broader agri-food sector employs 2.3 million people. Within primary agriculture (farms, nurseries, greenhouses), approximately 257,300 people were working in 2022.

The living conditions of farm workers in Canada vary significantly:

• Family Farmers: Many operations are family-owned and operated, where conditions align with general Canadian living standards.
• Hired Labor (Domestic and Temporary Foreign Workers): A substantial portion of agricultural labor, particularly for seasonal and labor-intensive crops, relies on hired workers, including temporary foreign workers (TFWs).
  • Challenges: Some TFWs, particularly, have faced challenges related to housing, access to healthcare, isolation, language barriers, and vulnerability to exploitation. Media reports and advocate groups have highlighted instances of substandard living conditions, limited access to services, and power imbalances.²⁹
  • Improvements: There's a growing awareness and concerted effort by the Canadian government, employers, and advocacy groups to improve conditions for farm workers. This includes stricter regulations around housing standards, worker protections, access to services, and promotion of fair labor practices. Unions and worker rights organizations also play a role in advocating for better conditions.

Government Programs for Farmers and the Industry

Agriculture and Agri-Food Canada (AAFC) is the primary federal department responsible for supporting the sector. Programs are often developed in collaboration with provincial and territorial governments. Key areas of focus include:

• Business Risk Management (BRM) Programs: These programs help farmers manage financial risks associated with unpredictable events like adverse weather, disease outbreaks, or market price fluctuations. Examples include AgriStability, AgriInsurance, and AgriRecovery.
• Innovation and Research: Investments in agricultural research, science, and technology to enhance productivity, sustainability, and competitiveness (e.g., development of new crop varieties, precision agriculture technologies).
• Market Access and Trade Promotion: Initiatives to open new markets, maintain existing trade relationships, and assist Canadian exporters in navigating international trade regulations (e.g., Trade Commissioner Service, market development programs).
• Environmental Sustainability: Programs promoting environmentally sound farming practices, climate change adaptation, and biodiversity conservation (e.g., Agri-Environmental initiatives).³⁴
• Supply Chain Resilience: Support for food processing, infrastructure development, and value-added production to enhance domestic processing capacity and reduce reliance on raw commodity exports.
• Support for Specific Sectors: Tailored programs for various agricultural sectors, including supply-managed industries, organic farming, and niche markets.

Dependence of USA with Canadian Produce

The United States is inextricably linked to Canada's agricultural sector, serving as both a major market and a key supplier.³⁵ The dependence is mutual and deeply integrated:

• Major Supplier: Canada is the second-largest supplier of agricultural products to the U.S., averaging $35.0 billion annually between 2020-2024.
• Key Products: The U.S. imports a wide range of Canadian agricultural products, including:
  • Canola oil and meal: Crucial for food uses and increasingly for biofuels in the U.S.
  • Beef and beef products: A significant portion of Canadian beef exports go to the U.S.
  • Baked goods, cereals, and pasta: Highly processed food items.³⁷
  • Fresh vegetables and fruits: Especially certain berries and potatoes.
  • Live animals: Cattle and hogs for finishing or slaughter.
• Integrated Supply Chains: The close geographic proximity and the USMCA trade agreement (formerly NAFTA) have fostered highly integrated supply chains, allowing for efficient cross-border movement of agricultural goods and inputs.
• Complementary Production: While both countries have diverse agricultural industries, Canada often complements US production, particularly for grains and oilseeds, and provides a reliable source of various processed food products.

This robust trade relationship underscores the critical importance of maintaining open borders and strong regulatory alignment for the benefit of both Canadian producers and American consumers.