The future of Canada’s agriculture industry is increasingly at risk as excessive government regulation pushes agri-businesses to the brink, according to new findings from the Canadian Federation of Independent Business (CFIB).
A recent CFIB snapshot shows nearly seven in 10 agri-businesses are discouraging the next generation from taking over or starting a business, citing overwhelming red tape as a major barrier. Without action from governments, CFIB warns the impacts could ripple across the entire food supply chain.
The report highlights growing concern among farm-related businesses, with almost 90% saying regulatory burdens are putting their future in doubt. Nine in 10 respondents say excessive rules are cutting productivity, limiting growth and undermining competitiveness at a time when the sector is already facing inflation, trade uncertainty and rising costs.
One Ontario agri-business owner told CFIB that government policies and regulations make it “unpalatable to want to expand or even run a small business,” reflecting frustrations shared widely across the industry.
“Excessive red tape is putting the future of Canadian agriculture and our food supply at risk,” CFIB economist Laure-Anna Bomal said in a release Thursday. She noted that regulatory demands at all levels of government — from municipal building permits and provincial environmental rules to federal reporting requirements — are draining time and resources from businesses responsible for producing Canada’s food.
CFIB estimates Canadian businesses collectively face $51.5 billion in annual compliance costs, with nearly $18 billion classified as red tape. Agri-businesses are among the most heavily regulated sectors, and small operators are hit hardest due to limited staff and administrative capacity.
To address the issue, CFIB is urging governments to measure and publicly report regulatory burdens, reduce the overall number of regulations through a “two-for-one” rule, simplify existing requirements, and create permanent channels for red tape reduction.
