Highlights from Budget 2021

  1. The federal government has allocated $100 million as a return to farmers due to the increase in production costs from carbon pricing. Payments are expected to start for Canadian farmers beginning in 2021-22 and are expected to increase over time as the price on pollution goes up in Canada.
  2. The budget also promised money to continue funding the $165-million Agricultural Clean Technology program and will prioritize $50-million to help with the purchase of more fuel-efficient grain dryers for farmers across the country. 
  3. An additional $200 million is being added to the Agricultural Climate Solutions program over two years, which will target emission reductions by improving nitrogen management, increasing cover cropping and rotational grazing. This is a 10-year program which is designed to help develop and implement farming practices capable of tackling climate change.
  4. Spending of $60 million over the next two years through the Nature Smart Climate Solutions fund will protect existing wetlands and trees on farms
  5. $10 million from the clean technology program will be spent over two years to help power farms with clean energy and move them off diesel.
  6. Environment and Climate Change Canada will get $17.4 million over two years to work with provinces and other stakeholders on how to establish the Canada Water Agency’s scope of work.
  7. $57.6 million in 2021-22 to extend the Mandatory Isolation Support for Temporary Foreign Workers
  8. $1.9 billion over four years to recapitalize the National Trade Corridors Fund.
  9. $292.5 million over seven years for a Processor Investment Fund that will support private investment in processing plants in the supply-managed sector
  10.  The Strategic Innovation Fund is also a key winner of Budget 2021 with an incremental $7.2b over the next 7 years, $2.2B of which is going to support innovative projects across the economy—including in the life sciences, automotive, aerospace, and agriculture sectors. 
  11. Space-based earth observation satellites were also identified as a critical piece to fight climate change and support innovation across sectors, including agriculture. Budget 2021 proposes to replace and expand critical but aging ground-based infrastructure to receive satellite data. This could help farmers further adopt climate-friendly (and economically savvy) technologies on their farms.  
  12. A proposed $15 federal minimum wage