Dairy and poultry sector producer and processor payment programs are being cut as part of $650 million being eliminated from Agriculture and Agri-Food Canada’s budget in the next three years.
An Agriculture Canada spokesperson said the $265 million reduction in international and domestic marketing of Canadian agriculture and agri-food products. can be attributed to a $131 million decrease in the Dairy Direct Payment Program, the Poultry and Egg On-Farm Investment Program and the Youth Employment and Skills Program.
As well, another $135 million decrease is from the end of Wine Sector Support Program and the Local Food Infrastructure Program, along with planned reductions to the Supply Management Processing Investment Fund.
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Why it matters: Agriculture Canada provides farmers with research and funding for programs, so cuts could affect their businesses.
The dairy and poultry programs were part of funds the government committed to the supply management sectors after part of the domestic market was given away to imports over several trade deals, including CUSMA.
Employment cuts confirmed
In the next three years, Agriculture Canada will eliminate about 665 positions.
Most of those job losses, possibly 494, will be in the department’s science and innovation branch.
Those figures come from Agriculture Canada’s 2026-27 departmental plan, which was released in March.
The 494 estimate comes from the Agriculture Union, which represents department employees.
Agriculture Canada is planning the following cutbacks, the plan says:
• 2026-27: $112,248,000
• 2027-28: $80,083,097
• 2028-29: $154,721,097
“It is anticipated that these spending reductions will involve a decrease of approximately 665 positions by 2028–29.”
The job losses are part of budgetary reductions at Agriculture Canada announced in late January.
At first glance, it seems like a high percentage of the job losses are directed at the science and innovation branch. The jobs being eliminated include lab/field technicians and the other staff who support the work done at the department’s research centres and farms across Canada.
Milton Dyck, national president of the Agriculture Union, confirmed that the majority of reductions are happening within the science division, but there’s a reason for that.
“Science and technology, by far, it’s the biggest group. It’s the largest holder of people in the branch.”
Therefore, if the federal government wants to cut costs at Agriculture Canada, it must reduce the number of employees working on science, research and innovation.
In 2024-25, Agriculture Canada employed 5,134 full time staff, says the departmental plan. Those people worked in four sectors:
• Domestic and international markets (563 staff).
• Science and innovation (2,621).
• Sector risk (412).
• Internal services (1,538).
By 2028-29, Agriculture Canada plans to have 2,125 people working in science and innovation, a loss of 496.
Most of the affected people will be support staff rather than scientists. The jobs eliminated will include technicians and field staff.
“(By) axing them, you’re ensuring that there’s no more science being done (in specific programs or locations),” Dyck said.
“You get rid of that middle group.… They’re not doctors, but they do a lot of the lab work and technical work and do the work for the scientists.”
As for cutting managers and administration and bureaucratic jobs, a bit of that is happening at Agriculture Canada.
The department plans to reduce the workforce in internal services from 1,465 this year to 1,297 in 2027-28, a loss of 168.
