The new $3.5 million dollar agreement will be known as the Sustainable Canadian Agricultural Partnership (SCAP) and will replace the current program which expires March 31, 2023.
Agriculture Minister Marie Claude Bibeau says the new five year agreement is a major milestone.
"It comes at a critical time for our sector. The new agreement will inject half a billion dollars in new funds, which represents a 25% increase in the cost share portion of the partnership. With this financial commitment, we are providing solid foundation to support our producers while providing the necessary tools for the sector sustainability and competitiveness."
A new $250 million Resilient Agriculture Landscape Program is part of the new funding commitment and will recognize ecological goods and services provided by the agriculture sector.
She sees the new program as playing a key role in rewarding farmers and ranchers for their environmental stewardship, and will contribute to the reduction of emissions from the sector.
"In fact, under this agreement, we will achieve a three to five megaton reduction in greenhouse gas emissions. This will be measured by a more robust results strategy for the framework, and will include improved data sharing and results reporting amongst jurisdictions."
Discussions around the Business Risk Management programs saw all provinces agree to increase the AgriStability compensation rate from 70 to 80 per cent in 2023.
In the coming year, they also have plans to consult with industry on a new AgriStability model that would be faster, simpler and more predictable for producers.
The ministers also agreeing that in order to receive AgriInvest government contributions, producers with allowable net sales of at least $1 million dollars, will need to have an Agri Environmental Risk Assessment done by 2025.
They also agreed that in order to identify the best approach on how to integrate climate risk into the BRM programs, a one year review with industry will need to take place.
Bibeau says building on the success of the actual Canadian Agricultural Partnership, this new agreement sets the stage for the next five years.
"Our vision for Canada to be recognized as a leader in sustainable agriculture aligns with the work of producers who are passionate about health and about the health of their land and animals. This is how we help the sector grow and remain competitive, and this is also how we continue to feed Canadians, and a growing global population."