Woes are piling up for Canada’s agricultural manufacturers
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The federal government must provide support to the agricultural manufacturing sector in order to protect Canadian competitiveness and food sovereignty, says Agricultural Manufacturers of Canada (AMC).
“Canada’s agricultural manufacturing sector is at a critical moment,” said AMC in its 2026 pre-budget submission. “With targeted federal support and a stable, competitive policy environment, the sector can continue creating high-quality jobs, expanding exports, strengthening Canada’s food sovereignty and driving economic growth in communities across the country for generations to come.”
AMC represents 300 ag manufacturers, whose members export over $4.2 billion in agricultural implements globally. “Recognizing agricultural equipment manufacturing as a strategic industrial sector would strengthen domestic production capacity, support Canadian food sovereignty, encourage investment in advanced manufacturing technologies and help secure long-term economic growth in rural and regional communities,” said AMC.
Over 80 per cent of Canada’s agricultural implement exports are to customers south of the border, but trade uncertainty U.S. tariffs has strained Canadian businesses. “Companies are being forced to identify alternative suppliers, adjust inventory strategies and absorb rising costs,” wrote AMC. “Small and medium-sized manufacturers have been particularly affected.”
AMC said the federal government should explore “tax credits, low-interest loans, direct assistance and export-market transition support” for affected businesses, and advocate for the removal of these tariffs in all future negotiations with the U.S.
On top of everything else, a skilled-worker shortage
In addition to pressure from U.S. tariffs, the agricultural manufacturing sector is facing a shortage of skilled workers. “Canadian manufacturers are becoming increasingly short on automation technicians, controls specialists and advanced trades individuals,” said AMC. “Without the proper targeted investment, Canada risks falling behind global competitors who are aggressively developing agri-tech and advanced manufacturing capabilities.”
Although campaigns such as AMC’s Careers in Ag initiative have helped encourage participation in the agrifood industry, major gaps remain. To address these issues, AMC recommended the federal government “expand their funding for training and education programs aimed at developing the next generation of skilled agricultural workers,” especially those that “integrate modern farming techniques, agri-technology, environmental stewardship and business management.”
In addition to introducing tariff relief initiatives and bolstering the agrifood workforce, AMC said the government must develop a holistic right-to-repair policy “that preserves farmers’ ability to maintain and repair their equipment while protecting safety, cybersecurity, intellectual property and innovation.”
“Modern farm equipment is no longer purely mechanical,” wrote AMC. “A one-size-fits-all approach to the right-to-repair risks unintended consequences for farm productivity, operator safety, data security and equipment integrity.”
