Ontario Launches Market Diversification and Trade Resiliency Initiative: Up to $20 Million in New Funding for Agri-Food Growth
The Ontario Ministry of Agriculture, Food and Agribusiness, in partnership with Agriculture and Agri-Food Canada, has announced the Market Diversification and Trade Resiliency Initiative, a significant investment designed to strengthen Ontario’s agri-food sector by helping producers and processors expand into new markets and build long-term competitiveness. The Initiative is delivered through the Sustainable Canadian Agricultural Partnership (SCAP) and will open for applications on February 17, 2026, with a deadline of March 17, 2026 at 11:59 p.m. ET.
Addressing Market Challenges with Strategic Support
Ontario’s agri-food industry is a cornerstone of the province’s economy. To support growth amid global competition, changing trade dynamics and evolving consumer preferences, the government has allocated up to $20 million toward this Initiative. The funding aims to help agricultural businesses diversify their markets, both domestically and internationally, and improve trade resiliency in an increasingly complex global landscape.
This investment aligns with broader provincial priorities focused on expanding Ontario’s agri-food exports, stimulating jobs, and ensuring the sector remains adaptable in the face of economic uncertainty.
Three Project Categories to Support Growth
The Market Diversification and Trade Resiliency Initiative includes three distinct project categories, each with tailored funding levels and project requirements:
1. Market Development and Diversification Implementation Planning
This category supports early-stage planning activities that prepare businesses to enter new or expanded markets. Eligible activities may include strategic planning, market research and readiness assessments that lay the groundwork for successful diversification.
2. Implement Market Development and Diversification
This stream provides funding for activities that put market strategies into action. Examples include new product development, broader marketing campaigns, sales initiatives and participation in trade events that target both domestic and international customers.
3. Implementation of Equipment and Technology
For producers and processors investing in the tools required to compete in new markets, this category provides funding support for equipment and technology investments. Eligible applicants can receive non-repayable funding of 25% of eligible costs up to $499,999, making it a compelling option for businesses planning capital upgrades tied to market diversification.
Eligibility and Application Period
To be eligible for funding, applicants must be primary agricultural producers or processors (with specific eligibility conditions by category) and have fewer than 500 employees at the project location. Projects must demonstrate clear market rationale and be aligned with one of the three project categories.
The application intake begins February 17, 2026, and closes at 11:59 p.m. ET on March 17, 2026, a defined window that emphasizes timely preparation and strategic readiness for submission.
Why This Matters for Ontario Agri-Food Businesses
Expanding into new markets can be costly and complex, especially when it requires strategic planning, marketing execution and capital investment. The Market Diversification and Trade Resiliency Initiative is structured to lower those barriers by:
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Creating strategic support for early planning and readiness
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Providing implementation funding to accelerate market entry
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Supporting capital investment linked to competitiveness and export readiness
This approach acknowledges that long-term success often requires both strategy and execution from business planning to concrete investments in technology and equipment.
How to Prepare Your Application
Successful applicants will need to demonstrate the merit of their project through robust market analysis, clear business cases and realistic projections tied to growth outcomes. Required documentation typically includes detailed quotes, business analysis materials, and evidence of market research or strategy execution.
Because applications must be submitted within a defined period and projects cannot begin until approval is received, early preparation is critical.
Conclusion
The Market Diversification and Trade Resiliency Initiative represents a significant opportunity for Ontario’s agricultural producers and processors to increase competitiveness and pursue growth in new markets. With dedicated streams for planning, implementation and capital investment, this Initiative offers a comprehensive framework to support strategic expansion domestically and abroad.
If you are considering market diversification, product expansion, or equipment upgrades to support export strategies, this Initiative may be a strong fit. Start preparing your application now to meet the March 17, 2026 deadline and position your business for growth.
