New Ontario Agribusiness Program: 50% of Eligible Costs Up to $100K

Valued at $50.7 billion in GDP in 2023, Ontario’s agri-food sector is grappling with labor shortages that threaten production and supply chains. In response, the provincial Government of Ontario has launched the $4 million Labour Force Management Strategies Initiative to attract workers by funding eligible businesses with grants and/or loans for projects aimed at addressing labor challenges, improving workforce management, and enhancing recruitment and retention in the agri-food sector. 

“As Ontario’s agri-food sector continues to grow, it’s vitally important that folks have skilled workers to get the job done. Through the Labour Force Management Strategies Initiative, we can help the sector attract and retain the talent they need.” 
– Lawrence MacAulay, Federal Minister of Agriculture and Agri-Food 

These efforts are bolstered by the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a $3.5 billion federal-provincial investment that supports workforce stability and sector competitiveness.  

Additionally, the initiative builds on the Ontario Agri-Careers Support Initiative (OACSI), funded through Sustainable CAP, to tackle workforce shortages in the agri-food sector. It aligns with the Grow Ontario Strategy’s ambitious objectives to boost agri-food sector employment by 10% by 2032. 

Funding Snapshot: Labour Force Management Strategies Initiative 

The Labour Force Management Strategies Initiative is an Ontario agri-business funding program that supports projects aimed at addressing labor challenges, improving workforce management, and enhancing recruitment and retention in the agri-food sector. 

Eligible Applicants: 

• Primary producers; 

• Processors; 

• Industry organizations; and 

• Collaborations between or among businesses in the agri-food sector. 

Funding Amount: 

• Producers and Processors: Up to 50% of project costs, capped at $40,000 per project; or 

• Industry Organizations/Collaborations: Up to 50% of project costs, capped at $100,000 per project. 

Eligible Projects: 

Projects that align with the goals of addressing labor challenges or enhancing workforce capacity in the agri-food sector, including but not limited to: 

• Piloting incremental worker supports such as: 

• Employee transportation 

• Licensed dependent care solutions 

• Language supports and/or training 

• Training and mentorship for employers 

• Piloting incremental recruitment strategies such as: 

• Workforce attraction marketing campaigns 

• Recruitment and job promotional events   

• Development of new HR policies and programs to address challenges for recruitment and retention of labour. 

• Planning for on-site amenities for employees such as multi-faith worship space, recreational facilities, and health and wellness facilities. 

Timeline: 

• Application Deadline: September 2, 2025. 

“We have heard loud and clear from Ontario’s agribusiness champion processors that continued access to skilled labour is crucial to their long-term growth. We will continue supporting our agribusinesses in recruiting and retaining talent and reinforcing worker skills to sow the seeds of long-term competitiveness.” 
– Rob Flack, Ontario Minister of Agriculture, Food and Agribusiness 

To assess whether your Ontario-based agri-business may be eligible for funding through this new program, and for support on your funding application to maximize approval success, please contact our team of top government funding experts. 

Government Funding Support for Ontario’s Agriculture Sector 

The combined efforts of the federal and provincial governments are creating a more sustainable and resilient agri-food sector in Ontario. From addressing labor shortages to funding environmental and technological advancements, these additional agri-business funding programs are ensuring that farmers and processors can thrive in a competitive and rapidly changing industry: 

• Resilient Agricultural Landscape Program (RALP): Provides funding to Ontario farmers for projects enhancing soil health, biodiversity, and climate resilience, offering up to $25,000 per acre for eligible environmental practices. 

• Agri-Tech Innovation Initiative (ATII): SupportsOntario agri-food businesses in adopting innovative technology and energy-efficient processes, with investments of up to $100,000 per project to boost productivity and reduce costs. 

• Ontario Agri-Food Research Initiative (OAFRI): Funds research and innovation projects that develop and commercialize new technologies for farmers and food processors, with grants supporting applied research, pilot programs, and knowledge-sharing initiatives. 

By leveraging these funding opportunities, Ontario’s agri-food sector businesses can continue to innovate, grow, and support the communities that depend on them for employment and nourishment.