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Sustainable Canadian Agricultural Partnership

Published date: May 21, 2025
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The Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a new $3.5-billion, 5-year agreement (April 1, 2023 to March 31, 2028), between the federal, provincial and territorial governments to strengthen the competitiveness, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector. The agreement includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities funded by federal, provincial and territorial governments. 

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Sustainable CAP marks an ambitious path forward and positions Canada's agriculture and agri-food sector for continued success as a world leader in economically, environmentally and socially sustainable agriculture.

Sustainable CAP focuses on the 5 key priority areas agreed to in The Guelph Statement:

  • Climate Change and Environment
  • Science, Research, and Innovation
  • Market Development and Trade
  • Building Sector Capacity, Growth and Competitiveness
  • Resiliency and Public Trust

Sustainable CAP includes $500 million in new funds, which is a 25% increase in cost-shared funding from the Canadian Agricultural Partnership, (ending March 31, 2023). Sustainable CAP provides strong support for science, research and innovation to:

  • address challenges
  • seize new opportunities
  • open new markets
  • strengthen the resiliency of the sector

Sustainable Canadian Agriculture Partnership programs for PEI

PEI cost-shared programs

Please see individual programs for guidelines, eligibility, application forms, and claim forms.

Priority Area 1: Climate Change and Environment

1.1  Alternative Land Use Services (ALUS) Program

Provides financial assistance to farmers and farmland owners for the adoption and maintenance of beneficial management practices (BMPs) on agricultural land and for the conversion of targeted environmentally sensitive land from annual crop production to biodiverse, carbon sequestering perennial landscapes. 

1.2 Agriculture Stewardship Program

Provides technical and financial support to the development, promotion and implementation of Beneficial Management Practices (BMPs) in the areas of soil conservation, climate change mitigation, soil health, nutrient management, agroforestry, integrated pest management, riparian management, water quality, water use efficiency, and on-farm product and waste storage. 

1.3  Perennial Crop Development Program

Supports the implementation of perennial crop development through two sub-programs: 

  • Perennial Crop Establishment Sub-Program - establishment of new and expanding perennial crop enterprises.
  • Perennial Crop Efficiency Sub-Program - projects focused on technologies designed to improve efficiency, reduce costs, add value, improve production value and increase market access related to perennial crops.

Priority Area 2: Science, Research, and Innovation

2.1 Agriculture Research and Innovation Program

Supports farm-level applied research, innovation and adoption projects that are designed to address challenges and opportunities and increase the competitiveness, productivity and profitability of the PEI agriculture industry through two sub-programs:

  • Applied Research Sub-Program - short-term applied research that will yield economic benefits to the PEI agriculture industry.
  • Agriculture Technology Advancement Sub-Program - implementation and adoption of technologies and best management practices that lead to improved efficiencies and increased profit margins.

Priority Area 3: Market Development and Trade

3.1 Product and Market Development Program

Supports small and medium-sized agricultural producers, agri-businesses and agri-processors to expand their product base or markets through:

  • value-added and agri-food processing projects;
  • market development activities on PEI; and
  • market development activities through intra-jurisdictional projects

Priority Area 4: Building Sector Capacity, Growth and Competitiveness

4.1 Business Development Program

Provides funding for training, business planning and implementation, organizational development, benchmarking and risk management activities, building sector capacity, and agriculture labour supports.

4.2 Future Farmer Program

Supports new farmers to improve the probability that they establish or continue profitable and sustainable commercial farm businesses by identifying and prioritizing their business goals.

4.3 Organic Industry Development Program

Supports the organic agriculture sector by providing strategic assistance with projects that will build the capacity, growth, and competitiveness of the sector through four sub programs:

  • Increasing Market Competitiveness Sub-Program - support producers and processors in capturing a larger share of the certified organic market
  • Specialized Equipment Sub-Program - supports to purchase equipment to assist the implementation of pest management and soil fertility practices
  • Certified Land Conversion Sub-Program - support in mitigating risks associated with converting conventional farmland to certified organic farmland.
  • Implementation of Strategic Initiatives Sub-Program - support activities which will allow organizations to develop and coordinate projects which will increase the sector’s strategic capacity.

4.4 Strategic Industry Growth Initiative

Support to increase the competitiveness, productivity, and profitability of Prince Edward Island’s agriculture and agri-food sector by identifying, creating, or maintaining market and innovation-based opportunities; facilitating value-chain development; and encouraging the formation of strategic relationships. 

4.5 PEI Livestock Strategy Program

Support to increase productivity, resource capacity, environmental sustainability, revenue diversification and risk management through four subprograms:

  • Strategic Livestock Industry Enhancement Sub-Program -support industry initiatives that assist PEI’s livestock producers to be resilient, environmentally sustainable and profitable.
  • Community Pasture Sub-Program - increase carrying capacity, enhance wildlife habitat, increase carbon sequestration, and demonstrate new techniques and technologies for innovative pasture management.
  • Provincial Abattoir Sub-Program -  support Provincial (PEI) abattoirs and poultry processing plants to improve profitability, viability, environmental sustainability and facilitate increased food security
  • Pollination Expansion Sub-Program - support the sustainable increase of local honeybee colonies that are available for pollination and the advancement of the beekeeping sector through strategic industry initiatives including investment in infrastructure.

Grow the Herd Pilot Program

Provides incentives for producers to increase the number of animals bred and raised in the province through two components: 

  • Heifer or Cow Retention/Purchase Incentive- expand the current cow herd size in PEI.
  • Certified Island Beef (CIB) Brand Incentive - increase the availability of cattle eligible for marketing under the Certified Island Beef (CIB) marketing brand.

4.6 Horticulture Diversification Program

Supports horticulture food producers to expand greenhouse and controlled environment agriculture (CEA) production, adopt technologies and processes to increase efficiency and productivity, expand and improve crop storages to extend the marketing season, and access specialized agronomic services.

Priority Area 5: Resiliency and Public Trust

5.1 Assurance Systems Program

Supports the implementation of recognized assurance systems on-farm, in food processing enterprises, and/or post-farm agri-food enterprises. 

5.2 Promoting Agriculture Awareness and Public Trust Program

Raises the profile of PEI agriculture among youth and the general public in PEI through agriculture promotional activities and events. 

5.3 Agriculture Resiliency Program

Supports initiatives that build the strength and viability of the agriculture industry, initiatives that assist in preparing for current and future threats such as climate change and extreme weather, and initiatives that support producer wellness and mental health.

5.4 Island Community Food Security Program

Supports the expansion of local markets while simultaneously supporting goals related to community food security, particularly increasing access to affordable local food and improving health and food safety.  

Business Risk Management Programs

Under the Sustainable CAP, business risk management programs will continue to help producers manage significant risks that threaten the viability of their farm and are beyond their capacity to manage.

AgriStability (PEI) 
provides support when a producer experiences larger farm income losses. The program covers declines of more than 30% in a producer's average income from previous years.

AgriInsurance (PEI)
a program which includes insurance against production losses for specified perils (weather, pests, disease) and is being expanded to include more commodities.

AgriInvest ​(Agriculture & Agri-Food Canada)
a savings account for producers, which provides coverage for small income declines and allows for investments that help mitigate risks or improve market income.

AgriRecovery (Agriculture & Agri-Food Canada)
is a disaster relief framework to help agricultural producers recover from natural disasters. Further information can be found on the AgriRecovery Guide

For more information on the Business Risk Management Programs, contact:

PEI Agricultural Insurance Corporation
7 Gerald McCarville Drive
PO Box 400
Kensington, PE
C0B 1M0

Tel: 1-855-251-9695
Fax: (902) 836-8912

For more information on SCAP Programs, contact:

PEI Department of Agriculture
Telephone: 1-866-PEIFARM (734-3276)
E-mail:  agr-feedback@gov.pe.ca