Punching above our weight: Rural Canada key to building economic prosperity
Written submission for the pre-budget consultations in advance of the upcoming federal budget
It is not an understatement to say that the world needs more Canada and that position of strength flows from its rural communities.
Rural Canada holds energy, food, critical minerals, clean technology capacity, and the space for infrastructure to connect it all. It is the source of nearly 53 per cent of Canada’s exports, drives 25 per cent of national GDP and powers our supply chains across every province and territory. From trade corridors and energy grids to AI-powered agriculture and data centres, rural regions are critical to the prosperity and sovereignty of our country. Rural Canada is at the core of Canadian industries and the values we represent as a country.
As Secretary of State (Rural Development) Buckley Belanger has said, “Rural Canada is ready to prove to the rest of Canada that we're punching far above our weight.”
He added: “We want absolutely every aspect of our economy pumping on all cylinders.”
The Rural Prosperity Group’s mission is to highlight the critical importance of rural Canada and the rural way of life to our country’s economic growth and prosperity. We are doing this by: Deepening ties and fostering dialogue on the unique considerations for rural communities and by sharing rural Canadian stories and successes and promoting initiatives through diverse and effective communication channels, including the monthly Rural Roundup.
During a time defined by global instability, strained affordability and the urgent need to rebuild Canada’s economic foundations, rural Canada is key to unlocking our country’s economic prosperity.
A recent survey by the Rural Prosperity Group with rural leaders and stakeholders reinforced this reality. Respondents overwhelmingly described rural Canada as foundational to the country’s identity, economy and food system — deeply connected to land, community and national resilience. Rural Canada is essential to delivering on each of the objectives set out by the federal government: strengthening trade partnerships, building nation-shaping infrastructure, reducing costs for Canadians, growing skilled trades, leveraging AI, and catalyzing private investment. As Conservative MP Jeremy Patzer has noted: “Everything that exists in urban Canada originated from rural Canada, first and foremost. Whether it is food, building materials or the energy used to heat and cool homes, it all originated in rural Canada.”
Unfortunately, many stakeholders we’ve engaged have expressed a persistent sense of being undervalued or overlooked. This tension — between importance and invisibility — is a defining feature of the rural experience today.
Effective policy begins with presence: ‘Visit, listen, learn’
Rural leaders and stakeholders reported in our survey that rural voices are rarely heard in provincial or national decision-making. One respondent said that there needs to be increased “opportunities for federal employees outside of Ottawa to increase perspective within the government and better represent Canadians.”
When asked what the top actions governments can take to help rural communities thrive – in addition to investing in transportation, supply chain infrastructure, education and skills training and reliable digital infrastructure – respondents said “visit, listen, learn.”
Importantly, many respondents stressed that effective policy begins with presence.
“The only time I see rural representatives with an active voice in the room (at conferences, for example) are at events designed FOR rural communities, almost never at conferences and events that concern national issues,” one respondent said.
Two-thirds agreed that urban–rural economic connections are often more symbolic than substantive, and that meaningful progress requires sustained follow-through, rural-specific metrics and accountability for outcomes.
Governments were urged to spend time in rural communities, engage directly with local leaders and residents and design solutions grounded in lived rural experience rather than urban assumptions. This reinforces the need for structural change in how decisions are made — not just what decisions are made.
As the Coalition for a Better Future notes in its 2026 Scorecard Report, Time to Execute, “In an era of global instability, rural communities act as Canada’s economic shock absorbers. We can no longer afford to let rural municipalities decline under the weight of aging roads and doctor shortages. Bridging this divide is not an act of charity; it is a strategic necessity. By applying a ‘rural lens’ to everything from trade agreements to AI policy, we ensure that the communities providing our food, energy, and minerals are not left behind.”
The Coalition report also notes: “The disparities between urban centres and rural regions represent systemic failures that threaten overall economic stability.”
Some of these disparities were highlighted in the responses from our recent survey.
Voices from rural Canada identified access to health care as the single greatest challenge facing rural Canadians that needed to be addressed:
“I think the government should support rural communities better in terms of health care and ensuring our rural hospitals do not get closed down. We can't retain anyone if we don't have health care facilities.”
“Access to doctors - remote and virtual healthcare can be better used.”
“Provide housing and long-term support for medical teams to stay in communities.”
“Easier access to medical services (don't make us drive 4 hours to a specialist, bring them to us).”
This was followed closely by ensuring there are opportunities for young workers to stay in their communities and having reliable connectivity, including transportation and digital.
“We need better transportation to connect rural communities with bigger centres. Either a bus program like the one they have in rural PEI or developing some other kind of transport policy is vital. Building better connectivity for rural communities is also very important,” one respondent said. “Online learning is increasingly becoming a viable option to improve education and rural communities need to become better educated so that we can attract better and more complex industries and be more productive.”
These are not niche or local issues — they are structural barriers that undermine productivity, investment and long-term sustainability, which means less jobs for Canadians, less purchasing power and potentially a lower quality of life.
Respondents also emphasized the need for planning and governance reforms that reflect rural scale and capacity, increased funding flexibility for nonprofits and social enterprises, and reduced regulatory burdens that disproportionately affect small and rural operators.
For example, making the Extended Railway Interswitching pilot permanent is one impactful change that could help make rural Canada industries more competitive. This is important because it affects multiple industries and allows supply chains to run smoothly.
These are only a small handful of issues that need to be addressed. That’s why as the government prepares Budget 2026, we urge it to heed the voices of rural Canadian leaders, stakeholders and residents. The Rural Prosperity Group strongly supports the ideas of industries such as tech and fintech, forestry, dairy, telecommunication, education and others in agriculture and natural resources whose ideas come from the ground, are conceived by people and leaders who know what is needed for our economic and industrial strength during this uncertain time.
Rural-first mindset, rural lens needed
Indeed, rural Canadians remain deeply committed to building “one Canadian economy” — a vision shared in the Prime Minister’s promise to create a strong economy that works for everyone. This vision cannot be realized without treating rural communities as equal partners in growth and ensuring that national decisions reflect rural realities.
We urge the government to adopt a practical, high-impact and low-cost initial commitment that aligns with its top priorities:
1. Review existing policies through a rural lens to unleash growth and resilience: Launch an immediate comprehensive review of existing policies and regulations to determine how they impact rural communities today — and how they can be retooled on a priority basis to support rural economic success and thriving communities.
Survey respondents also identified economic development and infrastructure policies as areas most in need of reassessment. Two-thirds of respondents agreed that economic development policies currently prioritize urban needs over rural realities, while 83 per cent agreed that urban decision-makers overlook rural contributions to national economic growth. Respondents noted that even well-intentioned policies often assume proximity to services, labour pools, transit systems or institutional capacity that simply do not exist in rural regions.
A review through a rural lens and criteria would allow the federal government to identify where flexibility, alternative delivery models or differentiated thresholds could dramatically improve outcomes — without increasing overall program or administrative costs.
This could be activated immediately for the biggest impact.
2. Apply a rural lens to all future policy, program and regulatory decisions, and trade negotiations and agreements: Ensure that no future federal regulation, program or policy — domestic or international — harms rural Canada. This requires the institutional and consistent application of a rural lens at all stages of federal decision-making, ensuring that new programs or initiatives account for rural needs, challenges and opportunities.
Survey results demonstrate both the urgency and legitimacy of this request. When asked whether a rural lens should be applied to all federal policies, 100 per cent of respondents said yes. Respondents pointed to repeated experiences where policies designed for urban density fail to translate to rural settings — whether in health care delivery, infrastructure funding thresholds, workforce programs, procurement rules or regulatory compliance. These gaps not only limit effectiveness but actively deter investment and participation in federal initiatives.
Proven and nimble avenues already exist to support this requirement, such as the inclusion of a rural-specific component in for-decision Memoranda to Cabinet supported by deep analysis and recommendations, Treasury Board’s impact analysis, and even adapting other existing impact assessments.
This commitment will yield a significant return on investment. It ensures every dollar the government spends works for all Canadians, regardless of postal code and propels Canada in the world.
During a Coalition for a Better Future Scorecard Reporting Event, Belanger also acknowledged the usefulness of a rural lens in decision-making: “Absolutely. There are different folks that have different perspectives on how we apply the rural lens and we can bring various scenarios, various matrices on how to build that rural lens.”
Analysis is required at the beginning of decision-making, not as an afterthought.
Rural Canadians are the unsung heroes of Canada’s extraordinary success story and Canadians depend on exports from rural Canada to fuel our growth. If Canada is to build lasting economic prosperity, it will be through fully unlocking the potential of its rural regions.
Recommendations
Recommendation 1:
That the government heed the voices of rural Canadian leaders, stakeholders and residents and commit to visiting, listening and learning from them in a deliberate way so as to ensure rural Canada is not an afterthought but an equal partner in building Canada strong.
Recommendation 2:
That the government review existing policy, program and regulatory decisions, and trade negotiations and agreements through a rural lens in order to determine how they impact rural communities today — and how they can be retooled on a priority basis to support rural economic success and thriving communities.
Recommendation 3:
That the government apply a rural lens to all future policy, program and regulatory decisions, and trade negotiations and agreements to ensure that no future federal regulation, program or policy — domestic or international — harms rural Canada. This requires the institutional and consistent application of a rural lens at all stages of federal decision-making, ensuring that new programs or initiatives account for rural needs, challenges and opportunities.