The federal and Ontario governments are investing up to $20 million to help farmers, food processors and agribusinesses expand sales of Ontario-grown products in domestic and international markets.
The Market Diversification and Trade Resiliency Initiative will open for applications Feb. 17, 2026, according to a joint announcement from the two governments. The program aims to increase competitiveness and support expansion into new markets amid tariffs and economic uncertainty.
“Expanding markets for Ontario food products ensures farmers and food processors have more reliable export opportunities,” said Heath MacDonald, minister of agriculture and agri-food.
Three funding streams
The initiative will support Ontario farmers and agribusinesses through three funding streams.
Market development and diversification implementation planning will support preparation and planning for market development in new or expanded markets. A second stream will fund the development of new products and broader marketing strategies. The third stream will cover investments in production equipment to support diversified products tailored to meet requirements for entering new markets.
Funding will cover a proportion of approved project costs. The cost-share level and maximum eligible funding amount per project will vary based on the type of proposal submitted.
The initiative will offer increased support for export development projects targeting non-U.S. markets and provide support for projects in United States markets.
Application deadline March 17
Applications will be accepted from Feb. 17, 2026, until 11:59 p.m. EST on March 17, 2026. The Ontario Ministry of Agriculture, Food and Agribusiness will deliver the initiative.
The investment is part of the Sustainable Canadian Agricultural Partnership, a five-year, $3.5-billion commitment by federal, provincial and territorial governments running from 2023 to 2028. The partnership includes $1 billion in federal programs and a $2.5-billion commitment for programs designed and delivered by provinces and territories, cost-shared 60 per cent federally and 40 per cent provincially or territorially.
Ontario’s agri-food sector generates nearly $52 billion annually, according to Trevor Jones, Ontario minister of agriculture, food and agribusiness.
“This investment will help our local farmers and agribusinesses sell more products grown in Ontario to markets around the world,” said Jones.
Industry support
Drew Spoelstra, president of the Ontario Federation of Agriculture, said creating and strengthening reliable markets for agricultural products has become increasingly important at both local and global levels.
“Ontario farmers produce some of the highest quality food and agricultural products in the world,” said Spoelstra.
Chris Conway, CEO of Food & Beverage Ontario, noted the food and beverage processing sector is the largest manufacturing sector by employment in Ontario, comprising over 4,000 companies. Ninety per cent of those companies are small businesses, according to Conway.
