Governments of Canada and Saskatchewan to invest close to $500 million in new five-year Sustainable CAP

The Governments of Canada and Saskatchewan have teamed up to invest $485 million in agricultural initiatives in Saskatchewan under the new five-year Sustainable Canadian Agricultural Partnership (Sustainable CAP).

Through the five-year Sustainable CAP, $89.4 million will be invested annually in strategic programming for Saskatchewan farmers, ranchers and agri-businesses, a 25-per-cent increase from the $71.2 million in the previous federal-provincial partnership.

Under the new agreement, there is a continued focus on agricultural research and increased support for water development, with an increased funding cap in the Farm and Ranch Water Infrastructure Program and a larger per-acre payment under the Irrigation Development Program.

The federal government is set to contribute 60 per cent, with the province funding 40 per cent for each dollar spent.

Gudie Hutchings, the Federal Minister of Rural Economic Development, said the announcement would improve agriculture in the province.

“Through the Sustainable Canadian Agricultural Partnership, we are investing in the economic, social and environmental sustainability of the agriculture sector while ensuring the resilience of supply chains,” she said. “These programs and initiatives will create new ways for producers in Saskatchewan and processors to continue to improve their competitiveness while protecting our environment.”

Saskatchewan Agriculture Minister David Marit said the new partnership builds on the existing partnership.

“The Sustainable Canadian Agricultural Partnership will help build on the great work already happening in the agriculture industry in Saskatchewan,” he said. “This investment will see enhancements to existing programs and the introduction of new programs to position us to continue on our sustainability journey while ensuring the sector continues to grow, prosper, and remain competitive.”

The suite of programs will drive outcomes in five priority areas over the next five years:

  1. Building Sector Capacity, Growth and Competitiveness: $176.6 million investment to build the agriculture sector capacity, ensuring growth and competitive advantages.
  2. Climate Change and Environment: $53.4 million to support the long-term resiliency and sustainability of the sector.
  3. Resiliency and Public Trust: $40.2 million to support the sector’s sustainability by anticipating, mitigating and responding to risks while building public trust.
  4. Market Development and Trade: $2 million to assist the industry in expanding domestic and international trade opportunities.
  5. Science, Research and Innovation: $175 million was invested in research and development activities, enhancing the diversification and profitability of agriculture.

An additional $37.8 million will be allocated throughout the agreement to support national activities delivered by the federal government, including the AgriMarketing and AgriAssurance programs.

Demand-driven, business risk management programs are estimated to provide $3 billion in support to Saskatchewan farmers over the lifespan of Sustainable CAP.

The new agreement is effective April 1, 2023, and will be in place until March 31, 2028.

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