Rural Roundup August 2025 - Rural Strong: Unleashing Canada’s competitive advantage to the world for the benefit of Canadian families
RPG NEWS
Rural Strong: Unleashing Canada’s competitive advantage to the world for the benefit of Canadian families
It is an extraordinary time in our country’s history — one defined by global instability, strained affordability and the urgent need to rebuild Canada’s economic foundations. These challenges underscore a fundamental truth: the world needs more Canada, and as Canadians, we cannot succeed without rural Canada.
Rural Canada holds what the world needs: energy, food, critical minerals, clean technology capacity, and the infrastructure to connect it all. It is the source of nearly 60 per cent of Canada’s exports, drives 30 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 more than a backdrop — it’s at the core of Canadian industries and the values we represent.
As the government prepares Budget 2025, we urge the federal government to adopt a practical, high-impact and low-cost initial commitment that aligns with its top priorities:
Apply a rural lens to all future policy, program and regulatory decisions, and trade negotiations and agreements.
Review existing policies through a rural lens to unleash growth and resilience.
Read our full submission to the House of Commons Finance Committee’s pre-budget consultation in advance of Budget 2025.
Reminder: Make your voice heard and help build strong rural communities
As governments explore ways to strengthen Canada’s economy—and the places we call home—we want to hear from you. Tell us what drives your vision for the future, what challenges keep you up at night, and what opportunities excite you most. Together, we can put rural Canada at the heart of Canada’s growth story.
We will be taking your input and writing a report about what we heard this fall. We look forward to sharing this report with you.
It only takes a few minutes — but your input could help shape real change.
Help us build stronger rural communities. Take the survey today and please share it widely within your networks.
CDNPOLI NEWS
OP-ED
Rural Canada: A national barometer and strategic economic imperative
BY JACQUES LEFEBVRE
Every weekday, millions of Canadians start their day with familiar routines—preparing kids for school, commuting to work, and, yes, grappling with economic uncertainty. In many ways, the trade war has become a conversation around the table.
If more Canadians understood rural Canada’s critical role in creating solutions to economic uncertainty, they would insist that their political leaders spend more time legislating for its wellbeing. Because rural communities are a barometer of Canada’s future prosperity.
The Rural Prosperity Group has called for a rural lens to be applied to every decision Ottawa makes. I agree, and suspect most Canadian families would too if they understood how rural success affects their lives and well-being. As the group put it, “to build and do big things, and to get to ‘one Canadian economy,’ it will be rural communities — their way of life, their people and their riches — that transform a slogan into a reality for every single Canadian.”
Yet with almost 80 per cent of Canadians living in urban areas, the concerns of those in rural areas often fall by the wayside. That’s even as rural communities contribute disproportionately to Canada’s GDP, relative to their population share, according to Statistics Canada. As calls grow louder to create ‘One Canadian Economy,’ the country needs to step up its efforts to address the challenges of our less populated areas.
Rural roots, national strength
Urban and rural communities share many challenges—inflation, affordable housing, access to services, and people experiencing homelessness. But in rural areas, these problems often become more acute due to structural limitations. Labour shortages, inadequate transportation infrastructure, and poor broadband access are persistent impediments to growth in smaller communities.
Consider agriculture: some producers are increasingly adopting robotics to cope with labour shortages, yet without reliable broadband, many cannot fully harness these technological advances. Such connectivity gaps magnify inequities—not only between cities and rural towns, but more starkly in some First Nations communities. These disparities restrict Canada’s full economic potential. They should concern every Canadian, regardless of where we live.
Since the pandemic, food security has emerged as a top priority for Canadians. But how will we achieve it? Rural Canada has the solutions. Our future prosperity depends on primary sectors—agriculture, fisheries, mining, forestry, and energy—all of which operate largely outside urban centres. Canada is endowed with an abundance of arable land, fresh water, diverse sources of energy, as well as expertise in how to harness these resources. This gives us a strong advantage in a shifting global market.
Rural leaders must obtain visibility at federal, provincial and territorial levels. But political realities present barriers—their asks often gain less traction than policies which target urban voters. To strategically overcome these circumstances, rural and urban stakeholders must build lasting partnerships.
Earlier this year, the Coalition for a Better Future emphasized the importance of closing the urban-rural divide: “rural communities hold the key to Canada’s resilience and long-term stability, but their success depends on decisive action.” We all have a role to play, and actors in all sectors must amplify these calls to ensure rural priorities remain firmly on the national radar.
Governments may be tempted to offer piecemeal solutions. But to truly realize our country’s full economic potential, we need national coordination—a commitment across all levels of government to deliver a rural development plan with measurable goals and transparent reporting. This approach must address the systemic barriers holding back rural contributions, including outdated support programs and regulatory burdens that deter investment.
This may seem ambitious, but recent progress on dismantling interprovincial trade barriers signals a strong shift. With global conditions changing, Canada has a timely opportunity to rethink its approach to trade and deliver more inclusive, regionally balanced economic development.
The stakes are high. Seizing this moment requires vision—one that looks beyond electoral maps and embraces rural Canada as a cornerstone of our future economic prosperity.
Jacques Lefebvre resides in the forested, hillside community of Chelsea, Que., and has long been a champion of rural Canada. With decades of leadership in health care, agriculture and agri-food and public policy focused on Canadians, he currently serves on the Advisory Council of the Coalition for a Better Future.
Poilievre says Liberal EV mandate would ‘eliminate rural communities’
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Conservative Leader Pierre Poilievre is warning that the Liberal government’s electric vehicle sales mandate poses a direct threat to rural Canada, vowing to launch a nationwide campaign to scrap the policy.
Speaking at a press event in Saskatchewan, Poilievre said the mandate — which requires all new vehicle sales in Canada to be zero-emission by 2035 — would devastate farmers, ranchers, and rural industries.
“It will kill jobs, balloon costs and grind rural communities to a halt,” Poilievre said. “Farmers, ranchers, resource workers would not be able to do their jobs because EVs don’t work over long distances and in cold weather. It would literally erase many small towns from the map.”
The Liberal plan includes interim sales targets of 20 per cent electric vehicles by 2026 and 30 per cent by 2030 as part of the government’s emissions reduction strategy.
Poilievre rejected the policy as unrealistic and damaging outside urban centres. “What Mark Carney is doing by banning gas vehicles is he is banning the rural way of life,” he said. “Not only would (the mandate) eliminate rural communities, it would eliminate our auto sector.”
The Conservative leader said his party will roll out a “massive nationwide campaign” in the coming months, including pressure tactics in Liberal ridings, events at car dealerships, and parliamentary motions and petitions.
Poilievre also tied the EV mandate to broader frustrations in rural Canada, including this week’s announcement that China will impose a 76 per cent tariff on Canadian canola seed — a major Prairie export.
“These tariffs are unfair and unjustified, and we lament the fact that Mark Carney has been so silent and so weak, failing to stand up for our farmers against these tariffs,” Poilievre said.
Recent polling suggests skepticism toward the EV policy is growing. A Leger-Postmedia survey found 71 per cent of Canadians believe the federal target is “unrealistic and will cost too much” and should be rolled back.
Automakers have also raised concerns. In May, the heads of Ford, General Motors, Honda, Stellantis and Toyota’s Canadian divisions warned that the mandate would inflict “serious damage” on the industry.
Despite the mounting criticism, the government has defended the mandate as a necessary step to meet Canada’s climate goals.
Canada vows support for farmers as China imposes canola tariff
Canada stands “shoulder to shoulder” with its canola producers and will defend the industry after China imposed sweeping new tariffs on Canadian canola, says Agriculture Minister Heath MacDonald.
“Canola is one of our most valuable agricultural exports and an important driver of the Canadian economy. We are steadfast in our commitment to defend and diversify Canadian trade and we will stand shoulder to shoulder in our support for Canada’s hard-working canola producers, workers and exporters,” MacDonald said on Aug. 21 after meeting with Saskatchewan Premier Scott Moe, Agriculture Minister Daryl Harrison, Trade and Export Development Minister Warren Kaeding and key canola industry stakeholders and exporters.
“We agreed on the importance of working together to ensure fair market access for the canola industry and engaging in constructive dialogue with Chinese officials to address each other’s respective trade concerns,” MacDonald said. “Our discussion also touched on support options for producers, including the government’s suite of business risk management (BRM) programs and how Canada is developing a comprehensive industrial strategy to help businesses develop new export opportunities in international markets.”
On Aug. 12, China’s Ministry of Commerce announced duties of 75.8 per cent on Canadian canola seed, on top of 100 per cent tariffs already applied to canola oil and meal. Beijing said the measures stem from an anti-dumping probe, a claim Canada rejects.
Prime Minister Mark Carney pledged support for producers. “Canada does not dump canola. Canadian canola products meet the highest standards, and our inspection systems are robust,” Carney wrote on social media. “We will advance a constructive dialogue with Chinese officials … while diversifying our trade abroad and supporting our canola producers at home.”
Industry leaders warned the tariffs could have devastating impacts. Chris Davison, President and CEO of the Canola Council of Canada, said China is a “highly valued and important market” and called the ruling “certainly disappointing.” He stressed: “Most importantly in the immediate term is the economic impact this is going to have on the industry.”
Davison urged Ottawa to step up: “We are going to work with and encourage the federal government to do what's necessary to effectively address these trade issues. Given the magnitude of the impact of these actions from our second-largest export market, the industry is going to need some form of support … both financial components and policy supports.”
Rick White, President and CEO of the Canadian Canola Growers Association, warned the measures will be felt quickly on farms. “This tariff will have an immediate and substantive impact on farmers’ marketing opportunities for the 2025 canola crop,” he said. “If a solution is not found swiftly, the impact will be quickly felt on our farms and in our rural communities.”
With an annual economic impact of $43.7 billion, the canola sector supports more than 200,000 jobs and accounts for $16 billion in wages. Both the CCC and CCGA said urgent federal support will be needed.
Moe said Saskatchewan will play a role in advancing solutions but noted final responsibility rests with Ottawa. “[Canola is an] important issue, not just to Saskatchewan, but to Canada,” he said. “It is going to be the Prime Minister of Canada, Prime Minister Carney, and President Xi that ultimately are going to speak on behalf of their countries.”
He confirmed he will travel to China, Japan and South Korea on a trade mission from Sept. 6 to 12.
Conservative Leader Pierre Poilievre accused Carney of weakness, urging retaliation. “We need a Prime Minister who will actually stand up for all Canadians, including and especially our prairie producers,” he said. “It’s time for a strong voice to stand up for the West.”
Agriculture minister praises Canadian farm technology, warns of missed opportunities
Agriculture Minister Heath MacDonald says Canada is on the brink of an agricultural revolution, pointing to innovations that could redefine farming at home and abroad.
Canadian farm technology is “out of the world,” MacDonald told The Logic, highlighting a machine developed on Prince Edward Island that can identify plant diseases by taking pictures in the field. He also noted British Columbia’s 4AG Robotics, which recently raised $40 million to scale its autonomous mushroom-harvesting robots, as evidence of a sector with enormous potential.
Industry observers share the enthusiasm. “Canada has everything it takes to be [an] agricultural innovation powerhouse,” said Laurent Carbonneau, head of policy at the Council of Canadian Innovators. A recent Canadian Chamber of Commerce policy brief described agriculture and food as a “cornerstone” of the economy, “enormously important” to Canadian prosperity and with “even more to offer.”
Yet despite the opportunities, agriculture is often overlooked in Ottawa, writes The Logic’s Kevin Carmichael. “But there’s something missing. The industry is an afterthought in Ottawa, where many would struggle to name the agriculture minister. That matters in a country like Canada, which often relies on policy to offset disadvantages such as a small domestic market and risk-averse lenders,” he says.
Mark Olson, founder of Flokk Systems, wrote earlier this year that “oil is Canada’s leverage today,” but “food is Canada’s primary, and far more effective, leverage for tomorrow.”
Canada’s exports of agriculture and agri-food products have grown nearly 270 per cent since 2000, reaching about $100 billion in 2023. Yet the country’s global market share is slipping, according to RBC Thought Leadership, which predicts Canada will rank ninth among food exporters within a decade, down from fifth at the start of the 2000s.
A new report by Farm Credit Canada (FCC) points to stalled productivity growth, tied to weak investment in technology and declining research and development. FCC analysts Bethany Lipka and Isaac Kwarteng found that Canada, once a global leader in agricultural innovation, now trails the U.S., Japan and OECD peers. Productivity growth has fallen from around two per cent in the 1990s and 2000s to less than one per cent today. “This trend threatens Canada’s leadership position within the global food system,” they wrote.
Policy experts have proposed a familiar suite of fixes, including speeding up regulatory approvals for new food products, ensuring rural access to high-speed internet, and helping farmers weather international trade disputes.
But Kim McConnell, a “farm kid” from Manitoba who built one of Canada’s largest agricultural marketing firms, says the problem goes deeper. “We’re missing leadership,” said McConnell, a Canadian Agricultural Hall of Fame inductee. “At the cabinet table, agriculture is way over in the corner, we should be at the top.”
Carmichael notes that agriculture’s potential is “so undeniable” that the government has become complacent. “Canada could be a food superpower, but only if the people who care about the industry start telling a cohesive story. If they don’t, the conversation will continue to spin around pipelines, cars and quantum,” he says.
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ICYMI
Prairie discontent with Ottawa declines, but Western separatist sentiment lingers
Rural Canada is showing signs of easing frustration with Ottawa, but Western alienation is far from disappearing, according to a new survey.
A new Confederation of Tomorrow survey of more than 5,300 Canadians finds that dissatisfaction with federalism in the Prairie provinces has dropped to its lowest point since 2019. The survey, conducted by the Environics Institute between May and June, shows that “the proportion of Prairie residents saying their province is not respected has fallen to its lowest level since the Confederation of Tomorrow series of annual surveys began in 2019.”
Between 2024 and 2025, the number of Prairie residents who said their province is treated with respect rose from 32 to 39 per cent. Those saying they are not respected fell from 57 to 49 per cent.
The report also highlights a decline in feelings of unfairness. Just over half (55 per cent) of Prairie residents say their province has less than its fair share of influence on national decisions, down six points from last year. Meanwhile, the share who believe their province gets less than its fair share of federal spending fell from 60 to 53 per cent, “lower than at any point since this current series of annual surveys began in 2019.”
Still, discontent remains. “Two in five Westerners continue to agree that the West might be better off on its own,” the survey notes. Younger Westerners in particular are less committed to Confederation: only 56 per cent of those aged 18 to 34 want the four western provinces to remain in Canada, compared to 77 per cent of those 55 and older.
Despite these tensions, most Canadians—including most Albertans—still expect the province to stay in Confederation. “Three in four Albertans, and about seven in ten of those in the rest of the country, say they think Alberta will probably stay in Canada,” the survey concludes.
Canada needs to ‘supercharge’ key sectors such as energy, mining, forestry, agriculture, say PPF report authors
A new report titled Build Big Things, co-authored by Jay Khosla and Yiota Kokkinos for the Public Policy Forum (PPF), projects that advancing more than 500 resource projects to final investment decisions could generate $1.1 trillion in cumulative GDP growth by 2035—a 4.5 percent boost to Canada’s economy. Achieving this, the authors argue, requires a fundamental shift away from a consumption-driven model toward one that fully leverages Canada’s natural resource strengths, while balancing growth and decarbonization goals.
Speaking on the WONK with Amanda Lang podcast, Khosla and Kokkinos described how their plan aims to reorient the economy by “supercharging” key sectors such as energy, mining, forestry, and agriculture. The urgency, they argue, is clear: Canada ranked second-last among OECD countries in per capita growth over the past decade, while the country sits 26th in the World Bank’s ease-of-doing-business rankings. “We've not really focused on GDP growth…now is the time for us to do that,” said Khosla.
The Build Big Things playbook rests on four critical pillars: coordinated financing, streamlined regulations, critical infrastructure, and Indigenous economic participation. Coordinated financing requires consolidating the existing “alphabet soup” of granting agencies and catalyzing private and foreign investment. Efficient regulation focuses on improving processes rather than rewriting legislation. Critical infrastructure, including ports, pipelines, and transmission lines, is foundational. Lastly, a central tenet of the plan is empowering Indigenous nations as genuine partners rather than consultees. Indigenous communities, Kokkinos explained, are seeking involvement “up front – not just consultation but real participation, including equity stakes.”
Ottawa has created a new Major Federal Project Office (MFPO) to accelerate approvals and bolster Canada’s competitiveness in a volatile global trade environment. But on the podcast, the authors stressed that MFPO alone won’t be enough — success depends on integrating all four pillars and adopting a ‘whole-of-government’ approach to overcome bureaucratic silos and risk aversion. As Kokkinos put it, “regulation isn’t the only thing that will get us through.”
Government support, Khosla added, is essential given that private and foreign capital has “largely dried up.” Beyond growth, the report ties these investments directly to Canada’s decarbonization goals. “If we don’t have this investment and we don’t move these projects, we do not decarbonize,” he said.
Looking ahead, Khosla and Kokkinos argue that early project successes will be critical to restoring investor confidence. “We need to send a huge signal to global investors that finally Canada is open for business,” Khosla said. The success of Build Big Things ultimately depends on swift, coordinated action and a reimagined approach to large-scale development.
We want to hear from you
Do you have news, analysis or upcoming events related to rural Canada to share? Are you doing interesting and noteworthy things to unleash rural Canada’s potential? We’d be happy to showcase you or your organization. Please get in touch: info@ruralprosperity.ca.