Policy & Advocacy
Red Tape Reduction and Regulatory Modernization
Issue Overview
Canadian agriculture is one of the country’s most important economic sectors, supporting food security, economic growth, and rural communities. However, farmers and agri-food businesses face a growing administrative burden from overlapping regulations, duplicative reporting requirements, and increasingly complex compliance obligations.
The CFA supports a modern, efficient, and science-based regulatory system that protects public interests while enabling farmers and agri-food businesses to innovate, invest, and compete. Regulatory frameworks should support economic growth and food security by reducing unnecessary administrative burden, improving coordination across governments, and ensuring regulations are practical, transparent, and outcomes-focused.
CFA advocates for a regulatory environment that:
- Recognizes agriculture and agri-food as a national strategic priority.
- Reduces duplication between federal departments and across jurisdictions.
- Improves consultation processes and stakeholder engagement.
- Supports innovation through modern regulatory tools such as regulatory sandboxes.
- Accelerates access to products, technologies, and approvals already recognized by trusted international partners.
- Streamlines reporting requirements and administrative processes while maintaining strong health, safety, and environmental protections.
By pursuing regulatory modernization and red tape reduction, Canada can create a more competitive business environment that strengthens food security, supports farm profitability, and enables the agriculture sector to reach its full economic potential.
Quick Facts
- Canadian agriculture contributes approximately $150 billion to Canada’s GDP and supports 2.3 million jobs across the economy.
- The CFA estimates that Canada’s agriculture and agri-food sector has the potential to contribute up to $250 billion in GDP by 2035, with regulatory efficiency being a key component of future growth.
- According to Canada’s Red Tape Report, the average small business owner spent the equivalent of 32 business days dealing with red tape in 2024.
- The total cost of regulation across all levels of government reached $51.5 billion in 2024, including nearly $18 billion attributable to red tape.
- Agriculture is particularly vulnerable to regulatory burden because 99% of agricultural businesses are classified as small businesses.
- Small businesses face much higher per-employee compliance costs than larger firms, limiting their ability to invest in productivity, innovation, and growth.
- Farmers regularly encounter duplicative reporting requirements and overlapping regulations administered by multiple federal departments and different levels of government.
- Regulatory delays can slow access to critical farm inputs, including feed additives, veterinary health products, crop protection tools, transportation services, and digital technologies.
- More efficient regulatory processes can help strengthen Canada’s competitiveness, support innovation, improve supply chain performance, and enhance food security.
CFA Policy Manual
For more information about this issue and all other key issues in Canadian agriculture, please refer to our current Policy Manual
