The future of Canada’s agriculture industry is at risk, as nearly seven in 10 agri-businesses are advising the next generation not to run a business due to the level of red tape. If governments don’t act, the consequences will ripple through Canada’s entire food chain as agri-businesses continue to hang on by a thread, says the Canadian Federation of Independent Business (CFIB).
A new snapshot from the CFIB highlights how excessive regulations are discouraging entrepreneurship, undermining competitiveness and impeding innovation in the agriculture sector.
It said the consequences of excessive red tape extend far beyond mere paperwork. Nearly nine in 10 agri-businesses worry about their future in the industry due to the extensive regulatory burden, and 90% say it’s slashing productivity and stalling growth. An agri-business in Ontario stated that his business struggles to grow “due to the government policies and regulations which makes it unpalatable to want to expand or even run a small business.”
Laure-Anna Bomal
“Excessive red tape is putting the future of Canadian agriculture and our food supply at risk,” said Laure-Anna Bomal, CFIB’s economist. “If farmers and producers walk away because of overwhelming regulations, who will grow our food? From municipal building permits to provincial environmental regulations, and lengthy federal survey requirements, these top irritants are draining time and resources from the very businesses that keep Canada fed.”
According to CFIB research, Canadian businesses face approximately $51.5 billion in compliance costs annually, just under $18 billion of which is considered red tape. This burden is acutely felt by agri-businesses, which are among the most heavily regulated industries in Canada. Red tape disproportionately impacts small business owners who have limited time and resources to dedicate to navigating Canada’s complex regulatory landscape and government paperwork.
To alleviate the regulatory burden on agri-businesses, CFIB recommends that local, provincial, and federal governments:
- Measure the regulatory burden on both businesses and citizens from all government, agencies, and delegated authorities; publicly report on this burden annually
- Reduce the total number of regulations by introducing a “2 for 1” rule
- Simplify existing regulations and guidance
- Create permanent avenues for businesses and citizens to provide suggestions for red tape reduction
- Keep compliance flexible and provide basic examples and guidelines for what constitutes compliance and non-compliance
Juliette Nicolaÿ
“Reducing the regulatory burden and red tape has been the top priority of agri-businesses for years,” said Juliette Nicolaÿ, CFIB’s bilingual policy analyst. “In the face of global inflation and tariff wars, this is now a matter of survival for the industry. Governments must act now to safeguard the future of this key sector.”
This year’s Red Tape Awareness Week is presented in partnership with Intuit QuickBooks. To learn more, visit: cfib.ca/redtape.
The CFIB is Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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