Executive summary

Context

Agricultural Research and Innovation Ontario’s (ARIO) 2026–2029 business plan outlines the agency’s commitments in relation to Ministry of Agriculture, Food and Agribusiness’ (OMAFA) priorities, the agency’s duties and rights as outlined in the Agricultural Research and Innovation Ontario Act (ARIO Act), the Memorandum of Understanding (MOU) between ARIO and OMAFA, ARIO’s vision and the 2026–2027 annual letter of direction.

In the fall of 2025, Ontario’s Minister of Agriculture, Food and Agribusiness, the Honourable Trevor Jones, issued the annual letter of direction to ARIO’s chair, outlining the government’s 2026–2027 priorities and expectations for all agencies including priorities specific to ARIO.

2026–2027 Business plan highlights aligned with the agency’s mandate

To deliver on ARIO’s mandate and ministerial direction, ARIO will focus efforts on the following areas:

Advice

Provide strategic advice to the minister on research and innovation with respect to agriculture, food and agribusiness.

2026–2027 Highlights:

  • Align advice with the objectives of the Grow Ontario strategy through close coordination with OMAFA.
  • Support ministry program and policy development by leveraging input from industry, academia, and research partners.
  • Advance strategies for managing ARIO’s interests in intellectual property (IP) and commercialization, including supporting expansion of the Innovative Breeding Research Program (IBRP).

Engagement and relationships

Establish and strengthen relationships that enhance research and innovation in respect to agriculture, food and agribusiness.

2026–2027 Highlights:

  • Continue engagement with academia, researchers, producers, processors, Indigenous partners and industry groups to assess research needs and coordinate research programming.
  • Strengthen existing partnerships and establish new strategic relationships to leverage ARIO assets for maximum provincial benefit.

Providing oversight of research facilities and on research programming

ARIO provides oversight of 14 ARIO‑owned research properties and works with the agri-food sector to determine research needs and coordinate open research programs

2026–2027 Highlights:

  • Advance the planning, design and construction for the Ontario Poultry Research and Innovation Centre (OPRIC) at Elora.
  • Progress planning and development of the Ontario Feed Innovation Centre (OFIC) at Elora.
  • Prioritize high‑impact infrastructure projects through the minor capital program to help ensure modern, high‑functioning research capacity.
  • Continue implementing ARIO’s strategic asset management plan (SAMP) and related research station asset management plans (AMPs).
  • Begin planning, with the University of Guelph (University of Guelph) and industry, for future facilities including the Dairy Education Centre and the Entomology Lab at Ridgetown.

Strategic implementation

Advance ARIO’s 2023–2032 strategic plan to enable high‑impact, transformational research.

2026–2027 Highlights:

  • Maintain alignment between ARIO’s 10‑year strategy, ministry priorities and sector needs.
  • Work to ensure infrastructure and programming modernization supports long‑term productivity, environmental sustainability and economic resilience.
  • Integrate government-wide priorities such as protecting Ontario, enhancing efficiency and delivering value for money.

Advocacy

Promote research as a driver of innovation and commercialization.

2026–2027 Highlights:

  • Continue implementing ARIO’s communications and branding strategy to increase awareness of the agency’s mandate and impact.
  • Promote Ontario’s agri‑food research through participation in industry events and conferences.
  • Enhance digital presence to improve accessibility and visibility of research station activities.

Governance

Modernize procedures and processes to strengthen ARIO as an efficient, effective agency.

2026–2027 Highlights:

  • Draft and implement policies and protocols required under the Agencies and Appointments Directive (AAD) to support effective governance, operational sustainability and oversight.
  • Work to ensure compliance with government-wide human resources expectations, including in‑office work standards and hiring controls.
  • Manage operations responsibly by enhancing internal controls, promoting value for money and improving risk and fraud management practices.
  • Continue advancing ARIO’s Indigenization, equity, diversity and inclusion (IEDI) learning and development commitments.

Knowledge

Encourage and facilitate knowledge translation and transfer with respect to agriculture, food and agribusiness.

2026–2027 Highlights:

  • Support mechanisms that accelerate the transfer of research outcomes to producers, processors, industry groups and policymakers.
  • Work with partners to help ensure that research findings are accessible, meaningful and positioned to support innovation uptake across the sector.

Conclusion

Through the implementation of this business plan and the direction provided by OMAFA and the minister, ARIO will continue to help position Ontario as a leader in agricultural research and innovation. The agency’s efforts will strengthen sector resilience, promote innovation, modernize critical infrastructure and drive value for the people of Ontario.

OMAFA’s priorities

OMAFA’s priorities include strengthening and supporting the agri‑food sector, providing business support to farmers and helping to ensure sustainability through research and innovation. Key focus areas include environmental stewardship (soil and water quality), animal and plant health, innovative products and supporting sector competitiveness through research, new technology and trade.

OMAFA also advances the Grow Ontario strategy, the government’s plan to strengthen the agriculture, food and agribusiness sectors, fuel economic growth, help to ensure a reliable food supply and help to address sector vulnerabilities through research and innovation. ARIO’s mandate under the ARIO Act is fully aligned with these priorities. Each of ARIO’s legislative objects helps to contribute to advancing a competitive, sustainable and resilient agri-food sector.

Through this alignment and ARIO’s strategic plan, the agency serves as a trusted advisor to the minister, a catalyst for research excellence and a key instrument in helping to ensure Ontario’s leadership in agri‑food innovation and growth.

ARIO governance

The agency’s governance structure is set out in the ARIO Act, which gives ARIO its authority as a board-governed agency that reports to the minister of OMAFA. Other instruments and procedures that govern ARIO and its activities include the MOU between ARIO and OMAFA, financial and governance bylaws, policies, protocols, guidelines and sub-committees and working groups.

The agency plans to continue modernizing and strengthening its governance anchored in the foundational direction in the ARIO Act and the MOU, with the goal of continuous improvement, compliance and effective oversight of the agency.

ARIO’s vision

Vision

Enabling high impact and transformational research for Ontario’s agriculture, food and agribusiness sectors.

Mission

ARIO is a trusted, authoritative, credible organization reporting to the minister on:

  • research and infrastructure priorities, strategic relationships and programs
  • optimizing and leveraging the research infrastructure owned by ARIO
  • driving research into action, evaluating and communicating the value of research
  • fostering, a prosperous, sustainable and resilient agriculture, food and agribusiness sectors

Strategic pillars

  • Infrastructure
  • Advice
  • Strategic relationships
  • Communications

Environmental scan

External factors

Economic outlook: fiscal environment

Canada enters 2026–2027 with cautious optimism as the Bank of Canada has lowered interest rates from a 2024 peak of 5% to 2.25%footnote 1. Lower rates may strengthen ARIO’s purchasing power for capital projects, though benefits remain limited by persistent ongoing supply chain issues and elevated construction costs. Global growth of approximately 3.1% remains weighed down by geopolitical and trade risks, with even advanced economies only growing at a modest 1.5–1.6%footnote 2.

Ontario’s economy continues to face uneven growth and high business costs. Despite fiscal pressures, agriculture remains a strategic provincial priority, supported by the $41 million investment in ARIO infrastructure and other targeted agri‑food programsfootnote 3. Regardless of broader economic performance, sustained collaboration across government, industry and academia will remain essential to advancing the Grow Ontario strategy. ARIO will continue leveraging shared funding models and collaborations to help it to deliver on its mandate and align with the Grow Ontario strategy. Research investments continue to yield strong economic returns and long‑term resiliencefootnote 4.

Economic outlook: inflation and cost pressures

Food inflation is expected to remain elevated at 3–4% in 2026–2027, with higher volatility among staples. Supply chain disruptions, tariff uncertainty and a weaker Canadian dollar continue to raise input and import costs, reinforcing the need for innovation that improves sector cost efficiencyfootnote 5. Aligned with Protect Ontario, ARIO can help to support in:

  • strengthening domestic supply chains and reducing reliance on volatile markets
  • procuring from Ontario/Canadian firms where feasible
  • advancing research and infrastructure that lowers production costs and enhances sustainability

Through SAMPs and minor capital investments, ARIO will continue to focus on upgrading stations and integrating efficiency‑oriented technologies to reduce long‑term operating costs and inflation exposure.

Economic outlook: geopolitical tensions

Global instability including the war in Ukraine, U.S. and China tensions, and Middle East unrest, continues to disrupt energy markets and agricultural supply chains, contribute to uncertainty in key input costs, including fertilizers and energy, and present challenges for agricultural research and operations. Canada faces additional pressures from expanding U.S. tariffs (up to 25–35% on some categories) and uncertainty tied to the 2026–2027 Canada-United-States-Mexico Agreement (CUSMA) review, affecting a sector where 60–76% of exports flow to the U.S.footnote 6. Potential protectionist measures or regulatory divergence pose significant risks for Ontario agri‑food firms and research operations.

These dynamics reinforce the need for strengthened domestic production capacity and diversified trade partnerships. ARIO will continue investing in infrastructure that enhances domestic research capability and help to support supply chain resilience.

Key ARIO risks summary
  • persistent inflation or rising borrowing costs
  • elevated construction costs and supply chain disruptions
  • food price volatility impacting sector stability
  • U.S. tariff escalation and CUSMA uncertainty
  • global conflicts affecting energy and input prices
Key ARIO opportunities summary
  • lower rates improving capital affordability
  • infrastructure upgrades and renewables reducing long‑term costs
  • funding programs promoting innovation and efficiency
  • domestic procurement strengthening supply chain resilience
  • advisory role supporting Grow Ontario and Protect Ontario priorities

Innovation Outlook: IP development and retention

In a knowledge‑based economy, effective IP generation remains important for ARIO and Ontario’s agricultural research sector. IP drives economic growth, fosters innovation and enhances global competitiveness. Challenges persist, as a significant portion of Canadian‑developed patents and designs still continues to be commercialized outside the country, reducing domestic economic returnsfootnote 7. Provincial and federal initiatives aim to address these gaps. Intellectual Property Ontario (IPON) provides centralized IP education, advisory services and commercialization guidance to support Ontario’s innovators, including ARIO’s research partners. These supports help safeguard innovations and enable viable commercialization pathways for Ontario’s academic and research institutionsfootnote 8.

ARIO’s IBRP has the potential to generate new IP in genetics, precision agriculture, biotechnology and related areas. Realizing the value of this IP requires proactive IP literacy, early integration of IP planning within research programs and leveraging provincial and federal supports to help retain commercialization benefits in Ontario. This approach strengthens sector competitiveness, creates reinvestment opportunities for ARIO and supports long‑term economic growth.

Key ARIO risks summary
  • Funding constraints limiting infrastructure upgrades and tech adoption
  • Limited IP literacy among researchers and innovators
  • Commercialization of Canadian-developed IP abroad reducing domestic returns
Key ARIO opportunities summary
  • ARIO’s modernization enabling advanced research and training
  • IPON resources strengthening IP governance and commercialization pathways
  • ARIO’s research programs generating new made-in-Ontario IP with reinvestment potential

Internal factors

Grow Ontario: A provincial agri-food strategy

In response to sector vulnerabilities, the Government of Ontario introduced the Grow Ontario strategy in November 2022 to help to build a strong, secure food supply chain and strengthen Ontario’s leadership in agri‑food through research and innovationfootnote 9. Ontario continues to build resilience amid challenges such as labour shortages, aging infrastructure, limited processing capacity and U.S. trade volatility. Research and innovation remain central to overcoming supply chain gaps and driving productivity and modernization across the sector. The Grow Ontario strategy focuses on 3 priorities:

  • to strengthen the agri-food supply chain stability
  • to increase agri-food innovation and adoption
  • to attract and grow Ontario’s agri-food talent

Key measurable goals include:

  • 30% increase in local food consumption and production
  • 10% rise in agri-food manufacturing to the gross domestic product (GDP)
  • 8% annual growth in agri-food exports
  • 250+ new patents/licenses from OMAFA funded research

To support these objectives, Ontario announced $41 million over 4 years (2025–2029) to modernize ARIO infrastructure, including:

  • $10.5 million for the OPRIC (Elora)
  • $15.5 million for the OFIC (Elora)
  • funding for critical facility upgrades across ARIO’s research infrastructure portfolio

ARIO’s role in helping to deliver on the Grow Ontario strategy includes:

  • advancing research and innovation targets under the agency’s expanded mandate
  • strengthening engagement with agri‑food, academic and industry groups
  • accelerating infrastructure renewal and major capital builds such as the OPRIC and OFIC

The 2023–2028 Ontario Agri-Food Innovation Alliance

The Ontario Agri‑Food Innovation Alliance remains a cornerstone strategic relationship between OMAFA, University of Guelph and ARIO (referred to in this document as the alliance agreement). This comprehensive agreement, in place since 1997 and renewed through 2028, supports research, research centre management, laboratory services, veterinary capacity and regulatory training for the agri‑food sector. It provides programming that:

  • strengthens public confidence and competitiveness in Ontario’s agri‑food sector by supporting food safety and quality, plant and animal health, and environmental sustainability
  • enhances emergency preparedness, helping to enable rapid responses to disease outbreaks and sector disruptions
  • supports a world‑class research and innovation system, maintaining core capacity and enabling transformative research, efficient infrastructure use and commercialization
  • develops a skilled workforce, including veterinary professionals and agri‑food‑ready graduates
  • attracts third‑party investment in research, innovation and data initiatives
  • improves data access and sharing to accelerate research and sector adoption

The alliance agreement generates significant economic impact, returning an estimated $1.44 billion annually to Ontario’s GDP, far exceeding provincial investmentfootnote 4. It reflects a shared vision between OMAFA, University of Guelph and ARIO to support Ontario’s agricultural and food processing sectors, rural communities and the wellbeing of Ontarians. Through this partnership, ARIO helps to strengthen Ontario’s research ecosystem and enable innovation adoption and commercialization that drive sector resilience and global competitiveness.

Alignment with ARIO’s strategic goals

The alliance agreement complements the objectives of ARIO’s strategic plan through:

  • facilitating the use of ARIO‑owned research centres as platforms for collaboration among academia, industry and rural communities
  • supporting the cost‑effective and environmentally responsible operation, maintenance and modernization of ARIO properties
  • maximizing the use of ARIO infrastructure to deliver benefits across the agri‑food sector
  • advancing ARIO’s IEDI priorities and raising visibility of government and ARIO at research centres

The Sustainable Canadian Agricultural Partnership (Sustainable CAP) 2023–2028

The Sustainable CAP, launched April 1, 2023, is a $3.5‑billion, 5‑year federal–provincial–territorial commitment supporting a wide range of agricultural initiatives, including research. The 2026–2027 fiscal year represents year 4 of the 5-year Sustainable CAP program. Sustainable CAP transfer payment agreements (TPAs) are currently in place between ARIO and several academic and research institutions. The ongoing projects include infrastructure delivery agreements with Vineland Research and Innovation Centre (VRIC) and Lakehead University Agricultural Research Station (LUARS).

Ontario’s Sustainable CAP program areas include science, research and innovation, productivity and growth, protection and risk resilience, and stewardship. The overarching goal is a sustainable, resilient, trusted and competitive agri‑food sector that drives integrated economic growth and one‑health outcomes for people, animals and the environment. This program may create additional opportunities for ARIO, including:

  • strategic capital investments to address high‑priority infrastructure needs
  • increased potential for innovation demonstrations and technology deployment across ARIO research centres

Through methodical deployment of Sustainable CAP resources, ARIO can further modernize its infrastructure and enhance its role in helping to advance Ontario’s research and innovation ecosystem.

Emergency preparedness

ARIO continues to prioritize emergency preparedness and business continuity to safeguard research operations and infrastructure. Lessons from the COVID‑19 pandemic reinforced the need for proactive planning and rapid response measures to minimize disruptions and maintain essential activities.

ARIO research centres now operate under a comprehensive emergency response and business continuity framework that outlines procedures for maintaining operations during unplanned disruptions, including disease outbreaks, extreme weather and infrastructure failures. These plans are reviewed and updated annually and informed by emergency simulation exercises conducted at ARIO facilitiesfootnote 10. Some recent enhancements include:

  • integration of risk‑resilience measures aligned with provincial emergency managementfootnote 11
  • strengthened biosecurity protocols to address emerging animal and plant health threats
  • ongoing education and assessment of cybersecurity risks and mitigation approaches
  • adoption of digital monitoring tools for critical infrastructure to enable real‑time assessment and faster response

ARIO’s strategic direction

Implementing the annual letter of direction, overview of the current and future programs and activities and initiatives involving third parties

ARIO continues to implement the 2023–2032 strategic plan and refine its key performance indicators (KPIs) to measure the effectiveness and impact of initiatives. These KPIs support strategic advice provided by ARIO’s board and help ensure alignment with the strategic plan and the Grow Ontario strategy. ARIO’s long‑term objectives focus on the 4 core pillars of infrastructure, strategic advice, strategic relationships and communication. These objectives are supported by strong governance, continuous improvement and oversight mechanisms detailed annually in this business plan.

Infrastructure pillar: maximizing Ontario’s research and innovation assets

ARIO provides operational and managerial oversight of 14 agri‑food research properties, comprising more than 200 buildings and 5,600 acres. The agency leads strategic infrastructure renewal to modernize research platforms, helping to sustain Ontario’s competitive advantage, and ensure responsible financial operations, capital investments and transfer payment administration. Modern, reliable research infrastructure remains essential to productivity, sustainability and global competitiveness.

Research infrastructure asset management/maintenance: University of Guelph and VRIC

ARIO’s infrastructure portfolio is managed through strategic agreements with University of Guelph and the VRIC. These organizations deliver property management, modernization activities and minor capital projects that maintain research capacity.

University of Guelph

Under the alliance agreement, University of Guelph oversees daily operations and maintenance for 13 ARIO research centres through the property management program. Activities include lifecycle replacements, code compliance and infrastructure upgrades to maximize research use. University of Guelph also administers ARIO’s minor capital program, advances design and planning for major projects under ARIO’s infrastructure strategy and supports development of the SAMP and site‑specific AMPs.

VRIC

VRIC manages the Vineland Research Centre under a 5‑year Sustainable CAP delivery agreement providing $2 million annually for property management. VRIC implements minor capital projects focused on health and safety, compliance and modernization, and is developing a site master capital plan to guide future investment.

Both University of Guelph and VRIC submit annual minor capital plans for ARIO approval, outlining priority projects, that may span multiple fiscal years. These efforts help to ensure ARIO’s infrastructure remains safe, compliant and capable of supporting cutting‑edge research.

Strategic oversight and policy development: business priorities

Infrastructure strategy

In support of OMAFA’s mandate to drive growth in Ontario’s agriculture, food and agribusiness sectors, ARIO plays a critical role in renewing and modernizing provincial agri‑food research infrastructure. Under the first phase of the infrastructure strategy, the agency made significant progress through targeted investments in new field crops, livestock and greenhouse facilities. During the early infrastructure strategy phase, it became clear that many livestock and greenhouse facilities were operating beyond their life cycles, were costly to maintain and not feasible to retrofit given their complexity and high research use. Investments in new facilities, supported by industry, expanded research capacity and improved the competitiveness and sustainability of Ontario’s agri‑food sector.

This commitment was reinforced in October 2025 with the province’s $41‑million investment (2025–2029) to revitalize ARIO infrastructure, representing the next step in delivering modern, efficient and innovative research platforms that meet evolving sector needs and uphold Ontario’s leadership in applied researchfootnote 3.

SAMP and research centre AMPs

ARIO manages a large and diverse portfolio of research infrastructure. Effective management requires an overarching framework that embeds practices into strategic, financial and operational decisions. ARIO’s asset management policy and framework form the foundation for the SAMP, which focuses on optimizing ARIO’s existing asset base and aligns with provincial asset management principles.

Recognizing that some facilities are no longer fit for purpose or economically viable, ARIO is developing the SAMP to guide decisions on consolidation, disposition and prioritization of future projects. The SAMP is expected to be approved by the ARIO board in early 2026–2027. Following SAMP approval, ARIO will complete site‑specific AMPs and building condition reports, creating a systematic process for evaluating future infrastructure needs.

ARIO is also exploring adoption of an asset management software system to replace manual tracking. This software would centralize asset information, automate reporting, track lifecycle costs, support financial and audit requirements, and inform decisions on maintenance, replacement and disposal. Such a system would help to reduce manual effort, improve data accuracy and extend asset lifespans.

By implementing this framework, ARIO will support informed decisions on maintenance, retrofitting and replacement of core research assets. Decision metrics will continue to prioritize investments that deliver the highest public value, sustainability outcomes and sector competitiveness.

ARIO’s financial outlook and plan

With renewed provincial funding, ARIO is prioritizing capital projects that align with the SAMP and help deliver long‑term value.

In 2024, ARIO developed a funding strategy to address resource constraints and support its expanded mandate. This evolved into a broader financial outlook emphasizing stable provincial funding and industry contributions to meet operational, strategic and capital commitments.

In the coming year, ARIO will update its financial outlook to reflect new investments and ensure continued alignment with strategic priorities, integrating capital planning with the SAMP to guide infrastructure renewal and research capacity growth.

Capital infrastructure: business priorities

ARIO will continue implementing and completing major research infrastructure projects across its portfolio in line with renewed provincial funding.

Major capital projects
OPRIC – Elora

The proposed OPRIC will support cutting‑edge research in nutrition, genetics, sustainability, economics, animal health and welfare, and housing. This modern centre is proposed to replace the aging Arkell Research Station facilities, which exceeded their lifecycle and are costly to operate and retrofit.

Following consultations with University of Guelph and the 4 feather boards, ARIO secured additional support, and an updated MOU was signed in late 2025. The Poultry Build Steering Committee approved the schematic design on November 28, 2025, confirming the proposed project footprint and layout.

Key milestones for 2026–2027 include:

  • site clearing in Q1
  • anticipated tender award in Q1–Q2
  • construction anticipated to start in late Q2
  • an anticipated 18–24‑month build timeline
OFIC – Elora

The proposed OFIC will use a streamlined design‑build approach with standardized building and equipment plans. University of Guelph has engaged the lead design consultant. Construction tendering will follow, with contractor mobilization and construction expected to begin in Q1–Q2 2026–2027.

Dairy Education Centre – Ridgetown

Planning will continue in the upcoming fiscal year, including engagement with Ridgetown Campus faculty, OMAFA specialists, industry and other stakeholders.

Key milestones for 2026–2027 include:

  • finalizing project design and budget
  • securing industry financial support

This proposed centre upgrades will support modern education, training and applied research benefiting farmers, students and agribusinesses across Ontario.

Entomology Lab – Ridgetown

This proposed integrated facility will support university and government priorities in teaching, applied research, pest surveillance and regulatory/quarantine pest management. The facility is proposed to provide modern, scalable infrastructure for programs in integrated pest management, invasive species monitoring, biocontrol research and diagnostics.

Typical entomology activities could include:

  • insect identification and taxonomy
  • surveillance and diagnostics (agricultural, invasive species, biosecurity)
  • rearing colonies for research or biocontrol
  • behavioural, physiological, or toxicological studies
  • sample preparation for molecular or imaging analysis
  • long‑term reference collection management

Because insects are living organisms, entomology labs require enhanced containment, environmental controls and biosecurity.

Alma feed and materials storage building – Alma

The current feed storage capacity at the Ontario Aquaculture Research Centre is insufficient. A design‑build contract was awarded to construct a 40-foot by 80-foot dedicated feed storage building that will allow loader and pallet access, and include insulation, ventilation and pest‑secure construction.

Key benefits of this proposed project are:

  • reduced freight costs by enabling larger feed shipments
  • reduced repetitive strain injuries from manual unloading
Alfred campus

ARIO continues to work with the Algonquins of Ontario on requests related to the property. 2 requests are fully resolved and 3 partially resolved. Current efforts include adding the finalized June 28, 2023, heritage memo to the archaeological assessment on file with the Ministry of Citizenship and Multiculturalism.

Minor capital program

ARIO’s minor capital program is an ongoing multi-year program that allocates funds across the ARIO property portfolio to support significant investments in addressing:

  • maintenance
  • upgrades
  • program related systems
  • equipment
  • building/site infrastructure

The minor capital program is in line with ARIO’s broader infrastructure strategy to target development and renewal of ARIO’s core research infrastructure, and to support the move away from aging infrastructure by creating operational efficiencies.

Criteria for determining minor capital program needs on an annual basis is guided by priority areas such as human health and safety, animal health and welfare, code compliance, building integrity, life cycle replacement, efficiency, conservation and program capacity (maintain or improve) that affect building and program operations across the network of ARIO properties.

Minor capital priorities

The minor capital program is a multi‑year initiative that allocates funding across ARIO’s portfolio to support maintenance, upgrades, program‑related systems, equipment and infrastructure. Renewed provincial funding announced in October 2025 enables ARIO to accelerate priority projects and improve procurement efficiency.

Priority projects and key initiatives for consideration in 2026–2027 and beyond include:

  • Research equipment: Purchase of equipment for the Ontario Multi-Species and Sheep Research Centre (Ponsonby).
  • Sustainability projects: Design of a manure‑stream water recycling system at the Ontario Livestock Research Centre (Elora).
  • Solar energy generation: Installation of photovoltaic systems at the Elora Research Station to support renewable energy generation and manage operating costs.
    • Phase 1 is complete and generating power at Elora Dairy and Elora Swine.
    • Next phase includes assessing remaining solar‑ready buildings for additional installations.
    • Estimated cost of the project is $3 million over 6 years (project initiated in 2023).
  • Generator commissioning: Final commissioning of new generators at Alma, Bradford, Ponsonby and Simcoe research centres.
  • Environmental chambers: Installation of livestock environmental chambers for emissions and metabolic research at the Ontario Multi-Species Research Centre (Ponsonby).
    • Design completed in 2025–2026; construction begins in Q1 of 2026–2027.
  • Water system upgrades: Ongoing repairs and improvements to the pumphouse and water filtration system at Vineland Research Centre, including a feasibility study for rainwater collection and cistern renewal.

Additionally, University of Guelph will complete further building condition reports at several research stations. These support ARIO’s facility assessments, inform funding decisions and support ongoing development of site‑specific AMPs. This work strengthens long‑term infrastructure planning and helps anticipate major future costs.

Strategic advice pillar: provide bold, strategic advice to the minister

Advice to the minister

ARIO remains committed to providing bold, informed and evidence‑based advice to the minister on agricultural research priorities. This includes anticipatory insights, rapid situational analysis and recommendations that reflect emerging trends, sector needs and government priorities.

The chair continues the practice of delivering sector‑related recommendations to the minister following each ARIO board meeting, which works to ensure a direct, frequent and actionable channel for advice. This advisory function remains a cornerstone of ARIO’s mandate and governance model. This is in combination with quarterly meetings between chair and minister which will continue in 2026–2027.

In collaboration with OMAFA, industry and academia, ARIO will identify emerging issues that impact Ontario’s agriculture, food and agribusiness sectors. This intelligence will help position ARIO’s research facilities to meet future priorities and deliver Ontario‑made solutions, technologies and practices that enhance competitiveness and sustainability.

ARIO will continue aligning its advice with current ministerial and government priorities (such as the Grow Ontario strategy, Buy Ontario) ensuring recommendations support sector resilience, innovation and economic growth without duplicating work outlined in other sections of this plan.

Strategic relationships pillar

The agency continues to strengthen strategic relationships with academia, industry organizations and the sector through ongoing stakeholder engagement and participation in key events such as Canada’s Outdoor Farm Show (COFS). These relationships directly support ARIO’s advisory role by ensuring the agency captures timely insights from across the agri‑food ecosystem.

Stakeholder engagement events

In the year ahead, ARIO will continue stakeholder engagement activities to support a coordinated approach to shaping Ontario’s agri‑food research and innovation system. Building on past engagements, ARIO will look to refine its methods and explore methods such as including roundtables, sector‑specific sessions and workshops, to bring together leaders from industry, academia and sector organizations.

These events will focus on identifying emerging challenges, infrastructure needs and research priorities while advancing knowledge transfer. A core objective will be increasing awareness of ARIO’s mandate and reinforcing the agency’s role in helping to strengthen Ontario’s competitiveness.

Insights gathered will inform ARIO’s strategic advice to the minister and guide infrastructure renewal, research programming and collaboration initiatives. ARIO will also continue closing the feedback loop with stakeholders, demonstrating how input influences decisions and next steps. This approach enhances transparency, fosters trust and positions ARIO as a connector and leader within the research ecosystem.

ARIO use and access policy and plan

ARIO will continue developing a use and access policy outlining principles and expectations for non‑University of Guelph access to ARIO research centres. This policy will guide a future use and access plan, which aims to:

  • enable increased third‑party access to ARIO centres and expand research and innovation activities
  • clarify prioritization, decision‑making and permitted activities for various users

LUARS

The Sustainable CAP TPA between ARIO and Lakehead University came into effect April 1, 2023, with federal, provincial and ARIO investment of up to $1.65 million over 5 years to support research programming, knowledge transfer and operations at LUARS. ARIO will continue providing oversight and monitoring progress against TPA objectives.

This investment strengthens Northern Ontario’s agricultural sector by improving crop viability, diversifying production and supporting regional economic growth. Research at LUARS advances best management practices, soil health, environmental sustainability and climate‑related resilience, while promoting knowledge co‑developed with Indigenous researchers and communities.

In October 2025, ARIO received an update on LUARS activities during a board meeting, followed by a site visit where investigators presented ongoing research. ARIO will continue periodic engagement and oversight to ensure LUARS delivers on research, extension and outreach activities in 2026–2027, with their proposed activities including workshops, field tours and consultations with area farmers.

IBRP

The IBRP reinvests ARIO’s share of IP revenues from alliance agreement‑funded research into breeding initiatives addressing critical gaps and stakeholder priorities. The program supports innovation in plant, livestock and aquaculture breeding, enhancing sustainability, productivity, biodiversity and resilience to climate change while generating Ontario‑made IP.

Phase 1 launched in January 2024, focusing on University of Guelph researchers and funding seven projects totaling $1.28 million. A second intake closed in February 2025, bringing total commitments to over $2 million across 10 projects, including dry beans, winter wheat, soybeans, beef cattle, peanuts, strawberries and peaches. ARIO expects to launch the next call for proposals in Q3 of 2026–2027.

Communications pillar

ARIO continues to implement a communications strategy aimed at increasing awareness across OMAFA and the wider agri‑food sector. With the enhanced profile created through the modernized ARIO Act, greater emphasis will be placed on advancing the next phases of ARIO’s communications and branding strategy to clearly articulate the agency’s mandate and its role in supporting competitive agri‑food research and innovation.

Communications and branding strategy

The communications strategy remains a ministerial priority, as outlined in the latest annual letter of direction. The strategy plays a critical role in establishing a clear, credible and consistent presence for ARIO. A phased approach began in 2025 to build foundational brand identity and strengthen ongoing stakeholder engagement.

Phase 1 (2025–2026) delivered the core brand platform, including:

  • development of a clear brand personality and positioning
  • design and implementation of a new logo
  • creation of display materials for industry events
  • comprehensive brand guidelines supporting consistent use across materials

These foundational components help to guide all communications and outreach.

Phases 2 and 3 (2026–2027) are being delivered concurrently to accelerate awareness and stakeholder connection. Key activities include:

  • development and launch of a dedicated ARIO website as the primary digital hub
  • stakeholder mapping to identify and prioritize key audiences
  • targeted communications tactics to raise awareness of ARIO’s role and impact
  • outreach approaches that support sustained engagement with priority stakeholders

Together, these activities strengthen ARIO’s visibility and help to enable more intentional, audience‑specific communications. An external consultant has been retained to lead these initiatives, building on earlier work that established brand identity, stakeholder insights and communications baselines.

Agency presence/attendance at industry events

Building on momentum from engagements such as COFS, sector research demonstrations at ARIO research centres and conferences across the agri‑food value chain, ARIO will continue expanding its presence at priority industry events. These venues provide opportunities to re‑introduce ARIO, showcase the agency’s modernized mandate and brand and engage directly with stakeholders on emerging priorities.

Entering 2026–2027, ARIO’s goal is to maintain and increase participation at key forums while identifying new opportunities for visibility. The Chair, board members and secretariat will ensure strong representation at conferences, summits and field demonstrations, reinforcing ARIO’s commitment to supporting growth, sustainability and innovation across Ontario’s agriculture and food sectors. These engagements also enhance ARIO’s advisory role by capturing timely sector insights.

To maximize value, ARIO will implement a formal process to track participation and outcomes, including report‑backs from attendees to the board and managing director. This will capture insights, trends and stakeholder feedback gathered at events, ensuring that learnings inform ARIO’s strategic advice and decision‑making.

Governance, continuous improvement and oversight compliance

Strong, effective and efficient governance is foundational to the success of ARIO. This is a critical element to enable both ARIO’s strategic plan, and the broader operational and corporate efforts of ARIO. Required by the AAD, ARIO continues to abide by applicable government directives and policies which help ensure transparency and accountability in corporate and other reporting.

Agency bylaws

Building on work started in the previous year, both a financial bylaw and a governance bylaw are being developed for ARIO. It is intended that these bylaws will be in place within 2026–2027.

IEDI learning and development

ARIO remains committed to advancing IEDI principles across its operations, relationships and collaborations, in alignment with the OMAFA’s Anti-Racism Action Plan and Ontario’s broader reconciliation efforts. Entering the upcoming year, ARIO will continue to strengthen meaningful relationships with Indigenous peoples, communities and organizations, recognizing the importance of collaboration in research and infrastructure planning. The agency will maintain its duty to consult obligations and expand opportunities for dialogue and engagement, helping to ensure Indigenous perspectives inform ARIO’s strategic priorities and decision-making.

The ARIO has a duty to consult and, where appropriate, accommodate Indigenous communities when it considers conduct that might adversely impact asserted or established Aboriginal or treaty rights. ARIO is committed to meeting its duty to consult obligations with Indigenous communities.

Building on recent efforts, ARIO will continue to enhance IEDI learning and development for its board and secretariat through ongoing education and exposure to Indigenous-engaged research occurring across Ontario, such as member attendance at the annual Weaving Knowledge: Indigenous Research Gathering.

ARIO’s artificial intelligence (AI) use cases

At present, ARIO does not utilize AI for development or delivery of program/policy, in decision‑making, records management, or public‑facing services.

To proactively prepare for any potential uses, consistent with section 6.3 of the Ontario Government’s Responsible Use of AI Directive, the agency developed ARIO’s AI Use and Risk Management Guideline, which details best practices and reporting requirements in alignment with broader government policies on AI usage.

Resource requirements to meet objectives, mandate and strategic directions

Resources and constraints

ARIO’s ability to deliver on its mandate depends on sustained and predictable funding to support infrastructure renewal, research capacity and innovation. The October 2025, $41‑million provincial investment provides critical support for priority projects, modernization of facilities, replacement of end‑of‑life assets and expansion of the longstanding minor capital program, which has been capped at $4.5 million since 2008.

In addition, ARIO receives annual OMAFA transfer payment funding for payments-in-lieu of taxes and generates revenue from leases (government and industry). IP revenues under the Alliance agreement provide reinvestment opportunities, and ARIO leverages external programs, including Sustainable CAP, to support infrastructure projects. Looking ahead, ARIO will continue pursuing complementary funding from industry and strategic relationships to maximize impact and help to ensure long‑term sustainability of Ontario’s agri‑food research system.

Summary of human resources impacts over the upcoming 3 fiscal years

ARIO has no employees as secretariat support is provided by OMAFA staff within the Research Accountability, Management and Administration Unit of the Research and Innovation Branch. These staff perform all administrative and operational functions on behalf of the agency.

In 2026–2027, ARIO will continue to face and manage staffing constraints alongside an expanded mandate. To manage this, the agency will focus on applying Lean methodologies and careful prioritization. Lower‑priority activities may be deferred to ensure that essential strategic objectives are achieved.

Driving innovation, delivering better services and value for money

ARIO will continue maximizing the impact of public resources through strong financial accountability, robust internal controls and proactive risk and fraud management. Increased use of digital tools, such as QuickBooks automations, as well as continued external audits will help to improve accuracy and reduce administrative burden.

Lean methodologies guide ongoing efforts to streamline meetings, briefings and approvals while enhancing service delivery. ARIO has implemented customer service guidelines, will aim to prioritize new standard operating procedures (SOPs) and roll-out additional operational efficiencies in 2026–2027. A combination of in-person as well as virtual board meetings will help to support continued efficiency and value for money.

Anticipated spending incurred by OMAFA on behalf of ARIOfootnote 12

Fiscal year ended March 31
Expenses incurred withor on behalfof ARIO recorded by the ministry as:2025–2026 Interim2026–2027 Plan2027–2028 Outlook2028–2029 Outlook
Salaries and wagesfootnote 131.90241.94091.98012.0202
Transportation and communication0.01980.01980.01980.0198
Services0.08780.08780.08780.0878
Supplies and equipment0.00330.00330.00330.0033
Transfer payments: operating4.62504.11503.98003.9800
Transfer payments: capital22.40022.70020.45019.500
Total expenses29.038328.866826.521025.6111

Transfer payments: interim and outlookfootnote 14

Operating transfer payment totals
Program name2025–2026 Interim2026–2027 Plan2027–2028 Outlook2028–2029 Outlook
Grants in lieu of taxes1.25001.25001.25001.2500
Sustainable CAP: federal – research3.37502.86502.73002.7300
Operating transfer payment total4.62504.11503.98003.9800
Capital transfer payment totals
Program name2025–2026 Interim2026–2027 Plan2027–2028 Outlook2028–2029 Outlook
Research infrastructure maintenance and repairs15.55007.00007.00007.0000
Research infrastructure renewal6.850015.700013.450012.5000
Capital transfer payment total22.400022.700020.450019.5000

Risk identification, management and mitigation

ARIO assesses agency risks on a quarterly basis. Risk reporting in this business plan is in addition to the formal reporting required under the AAD and the Enterprise Risk Management Directive, to which ARIO is accountable. It is important to note that risks identified from ARIO’s perspective may differ in severity from OMAFA’s assessments. ARIO may classify certain risks as high if they pose significant operational, financial, or reputational implications for the agency, even when ministry‑level risk ratings differ.

New or emerging risks are ranked with existing ones and a risk rating, calculated using an index combining individual scores for parameters of likelihood, strategic impact, reputational impact, financial impact, speed of onset and risk tolerance, are built into the rating. This structured approach ensures consistent, evidence‑based risk evaluation and supports ARIO’s ability to help anticipate and mitigate threats to its operations, infrastructure portfolio and advisory responsibilities.

Summary of key high risks to ARIO entering 2026–2027

Risk (strategic): Long-term insufficient funding

Description: ARIO may not have sufficient long‑term funding to meet its mandate, maintain aging infrastructure, or deliver priority initiatives.

Current status: Recent provincial funding addresses immediate needs but does not resolve ARIO’s structural long‑term funding gap.

Impact: Reduced research capacity, deferred maintenance, possible site closures and inability to sustain critical infrastructure.

Mitigation and response:

  • Funding strategy and 10‑year financial plan under development
  • SAMP and building assessments to inform prioritization completed
  • Ongoing engagement with minister and central agencies
  • Focus placed on core assets and health/safety requirements

Risk option and rationale: Accepted; ARIO will continue pursuing long‑term funding solutions.

Risk (operational): Inflation and underfunding impacting property operations

Description: Inflation and structural underfunding may limit ARIO’s ability to operate and manage its research infrastructure effectively.

Current status: Operational deficits and inflationary pressures persist, with short‑term mitigation measures underway but these measures are insufficient to address systemic gaps.

Impact: Operational deficits, delayed maintenance and reduced research capacity.

Mitigation and response:

  • Budget reallocations and exigency funding
  • Revenue‑generation and cost‑saving measures
  • Strong coordination with University of Guelph and VRIC
  • SAMP‑based investment prioritization
  • Continued advocacy for increased funding

Risk option and rationale: Accepted; risks managed through financial controls and prioritization of core assets.

Risk (operational): Exposure to catastrophic property loss

Description: ARIO lacks adequate reserves or insurance to cover catastrophic property damage across its research portfolio.

Current status: ARIO has not maintained sufficient self‑insurance reserves since 2019–2020 and does not hold commercial insurance coverage.

Impact: Unrecoverable financial loss and long‑term disruption of critical research infrastructure.

Mitigation and response:

  • Maintain lease requirements ensuring third‑party insurance
  • Identification of emergency funding pathways
  • Ongoing discussions with OMAFA on reserves
  • Prioritizing SAMP risk management for high‑value assets

Risk option and rationale: Accepted; exposure managed through lease protections, contingency planning and advocacy for reserve funding.

Summary of moderate risks to ARIO entering 2026–2027

Risk: Non-compliance with Section 5.2.5 of the Realty Directive Lease requirement regarding market-rate lease agreements

Description: ARIO does not charge rent to University of Guelph or VRIC as both occupy properties to fulfill ARIO’s mandate.

Current status: The properties occupied by University of Guelph were granted an exemption under the Realty Directive in 2025. A similar exemption is being explored for the VRIC occupied properties, with a target finalization date in 2026.

Impact: Minimal; primarily a transparency and accountability perception risk.

Mitigation and response:

  • Complete VRIC exemption analysis
  • Maintain documentation supporting mandated research use

Risk option: Mitigate.

Risk: Insufficient or delayed board appointments

Description: ARIO may experience difficulty maintaining a full, skills‑diverse board due to appointment timelines and broad expertise requirements.

Current status: Candidate profiles prepared and recruitment identification completed for ministerial consideration.

Impact: Minimal; may slow decision-making and strategic initiatives if gaps persist.

Mitigation and response:

  • Ongoing potential candidate identification and analsyis
  • Annual board members skills matrix assessment
  • Proactive communication of priority competencies and gaps to minister’s office

Risk option: Mitigate.

Risk (information technology and infrastructure): Research security vulnerabilities

Description: Research security risks may arise from alliance agreement projects, open programs, or third‑party access to ARIO centres.

Current status: Research security policy implemented under 2023–2028 alliance agreement; physical security upgrades underway and use and access policy is being developed.

Impact: Low; governance and monitoring reduce likelihood of material exposure.

Mitigation and response:

  • University of Guelph research security assessments occur
  • Implementation of ongoing training plans
  • Collaboration with Ministry of the Solicitor General and alliance agreement signatories

Risk option: Accept.

Risk (information technology and infrastructure): Insufficient process documentation, and cybersecurity preparedness

Description: Incomplete process documentation or evolving cybersecurity requirements could impact business continuity.

Current status: SOP development is underway; staff completing cyber and asset‑management training.

Impact: Low; could affect operations if not addressed.

Mitigation and response:

  • Continued cross‑training plans in place and continually being updated
  • Annual unit workplan reviews
  • Continued implementation of SOPs and internal control frameworks

Risk option: Accept.

Risk (strategic): Limited awareness of ARIO’s mandate, assets and role

Description: External stakeholders and some ministry staff may not fully understand ARIO’s role, affecting collaboration and program uptake.

Current status: Communications strategy underway, including new logo, website development and stakeholder engagement events.

Impact: Low; may affect collaboration and investment decisions if not addressed.

Mitigation and response:

  • Continued communications and branding activities
  • Stakeholder engagement and outreach
  • Website launch and targeted messaging

Risk option: Accept.

Risk (operational): Emergency or business continuity disruption

Description: Emergencies affecting ministry operations could disrupt ARIO support services.

Current status: ARIO secretariat is covered under OMAFA emergency and continuity plans; site‑level procedures remain active.

Impact: Low; contingency plans are considered adequate.

Mitigation and response:

  • Ministry‑wide continuity planning
  • Maintenance of site‑specific emergency procedures
  • Periodic reviews and updates

Risk option: Accept.

Risk (other): Potential financial losses on ARIO investments

Description: Market fluctuations may affect ARIO’s investments despite conservative management.

Current status: Investments are managed by RBC under a capital‑preservation strategy.

Impact: Low; losses unlikely given risk-averse approach.

Mitigation and response:

  • Secretariat oversight and regular reviews with RBC
  • Compliance with Financial Administration Act requirements
  • Monitoring of market performance

Risk option: Mitigate.

Performance measures

Strategic measures and KPIs

The establishment of KPIs for ARIO’s strategic plan will help to allow the agency to garner insights on how initiatives and ARIO’s activities are moving the agency towards its stated objectives and long-term goals. These KPIs may evolve based on resource allocations, resource requirements (staffing or fiscal) and/or emerging direction and initiatives and will be instituted in a phased approach.

These KPIs will consider external and internal environmental factors to keep the agency agile to respond to new, evolving factors. For example, these may include evolving factors from the alliance agreement roles and responsibilities to fiscal and economic pressures, to climate change.

The ARIO strategic KPIs include the 3 areas:

Operational (short term goals 2023–2025)

  • Maximizing assets.
  • Securing short term funding to address critical needs to maintain viability of ARIO’s assets and operations.

Progress summary

  • Developed, and will work to finalize and operationalize the SAMP across the infrastructure portfolio.
  • Secured $41 million provincial investment (2025–2029) to revitalize research infrastructure.
  • Continued upgrades through the minor capital program, including solar installations and compliance improvements.

Transformational (medium-term goals 2025–2028)

  • Development of several strategic relationships with universities/colleges/research institutions, the wider agri-food sector and with Indigenous-led organizations.
  • Purposed relationship building for supporting the enhancing of research infrastructure/platforms, expanding innovation demonstrations and technology deployment and supporting Indigenous knowledge and research.

Progress summary

  • Strengthened relationships with University of Guelph via the alliance agreement and VRIC for property management to enable agri-food research and innovation.
  • Hosted major stakeholder engagement events with industry and academia to identify emerging challenges and opportunities for collaboration to strengthen Ontario’s global leadership in agri-food innovation.
  • Continued oversight of LUARS Sustainable CAP TPA to strengthen Northern Ontario’s agriculture by improving crop viability, promoting environmental sustainability and fostering knowledge co-developed with Indigenous researchers and communities.
  • Built direct relationships with breeding experts at the University of Guelph through the IBRP, who will utilize ARIO’s research centres for important and foundational research that will result in new plant varieties and animal traits for the benefit of Ontario’s agri-food sector.

Strategic (long term goals 2028–2032)

  • Securing stable and consistent long-term funding for both infrastructure and research programming, along with a key number of impactful, highly transformative innovative projects.

Progress summary

  • While short-term funding is secured, long-term stable funding remains a priority.
  • ARIO is working to strengthen its funding approach for infrastructure projects by complementing industry support with new collaboration and investment opportunities, achieved through enhanced strategic relationships and innovative recognition strategies.

Research infrastructure KPIs

Alliance agreement and property management program

ARIO’s properties serve as critical platforms for research that supports OMAFA’s mandate. Through the alliance agreement, the University of Guelph manages and maintains 13 of the 14 ARIO-owned properties, leveraging its expertise to ensure these assets are fully utilized for research excellence and innovation. Historically, property use and capacity have been measured by annual utilization rates, most recently targeted at 78% for crop research centres and 45% for livestock centres, based on land use for crop trials and animal research days for livestock trials.

The University of Guelph continues to work with ARIO to identify opportunities to increase utilization where capacity exists, using capital and operational improvements as levers to overcome barriers. Looking forward, ARIO and University of Guelph plan to transition from the current utilization KPIs to a more comprehensive property usage reporting framework that captures the full range of activities undertaken at ARIO research properties. This new approach will better demonstrate how infrastructure investments support research excellence, innovation and collaboration across Ontario. While implementation is targeted for 2026–2027, the existing KPI model will remain in place until the transition is complete.

Financial information

Overview of funding

Under the ARIO Act, ARIO may accept gifts, grants, donations or bequest money for use in research or the conservation, protection or preservation of agricultural lands and the managing director holds and administers these funds in accordance with the terms, if any, on which it was given.

Operational costs (excluding operation and management costs of the research centres)

The cost to administer the programs within ARIO (including the proportionate cost of salaries and benefits for OMAFA staff that provide the secretariat services) are paid from OMAFA’s budget. The current estimated cost to provide the secretariat functions to ARIO is approximately $2 million annuallyfootnote 15.

Per diem rates and travel expenses for appointed ARIO members are paid to ARIO members for their attendance at scheduled meetings, at events and when out on ARIO business.

Financial projections (3-year outlook)

ARIO is required to submit its annual report including audited financial statements to the minister within 120 days of its year-end (by July 29 annually). The annual report is prepared by ARIO’s secretariat and includes financial statements that are prepared and audited by an external auditor contracted by OMAFA.

ARIO is consolidated for financial reporting purposes with OMAFA and has a current property book value of approximately $122 million as of March 31, 2025.

ARIO 2026–2027 forecast proforma income statement for year ended March 31, 2025

Revenue
Research
Revenue2024–2025 audited actuals
$
2025–2026 interim
$
2026–2027 plan
$
2027–2028 outlookfootnote 16 
$
2028–2029 outlookfootnote 16 
$
Grants — provincial (includes Sustainable CAP)3,083,0003,375,0002,865,0002,730,0002,730,000
IP545,013425,000425,000425,000425,000
Total research revenues3,628,0133,800,0003,290,0003,155,0003,155,000
Property
Revenue2024–2025 audited actuals
$
2025–2026 interim
$
2026–2027 plan
$
2027–2028 outlookfootnote 16 
$
2028–2029 outlookfootnote 16 
$
Grants — provincial — minor capital4,500,0009,450,0007,000,0007,000,0007,000,000
Grants — provincial — payments in lieu of taxes1,250,0001,250,0001,250,0001,250,0001,250,000
Rental income — provincial311,598324,525324,000324,000324,000
Rental income — private industry190,877190,379190,000190,000190,000
Payments in lieu of taxes — IO30,79140,00042,00044,00046,000
Payments in lieu of taxes — VRIC and Foreign Affairs Winery146,90592,76393,00095,00098,000
Amortization of DCC — provincial3,388,3773,340,5773,412,8773,567,8774,025,377
Amortization of DCC — non-provincial416,455554,630572,705611,455725,830
Total property revenues10,235,00315,242,87412,884,58213,082,33213,659,207
Other
Revenue2024–2025 audited actuals
$
2025–2026 interim
$
2026–2027 plan
$
2027–2028 outlookfootnote 16 
$
2028–2029 outlookfootnote 16 
$
Gain on disposal of TCA001,000,00000
Realized gain (loss) on sale of investment140,8680000
Investment income975,448564,373536,440450,029341,990
Total other revenues1,116,316564,3731,536,440450,029341,990
Total revenues (A)14,979,33219,607,24717,711,02316,687,36217,156,197
Expenditures
Research
Expenditures2024–2025 audited actuals
$
2025–2026 interim
$
2026–2027 plan
$
2027–2028 outlookfootnote 16 
$
2028–2029 outlookfootnote 16 
$
Research project/program101,0540000
IP38,97535,00035,00035,00035,000
Total research expenditures140,02935,00035,00035,00035,000
Property
Expenditures2024–2025 audited actuals
$
2025–2026 interim
$
2026–2027 plan
$
2027–2028 outlookfootnote 16 
$
2028–2029 outlookfootnote 16 
$
Payments in lieu of taxes1,376,1901,500,0001,500,0001,500,0001,500,000
Minor capital8,414,92212,825,0009,865,0009,730,0009,730,000
Management consulting expense14,5000000
Operations and maintenance207,402550,000350,000150,000150,000
Accretion expense — AROs95,11246,95017,6073,942723
Amortization of AROs31,91934,2418,4032,7152,715
Amortization of capital assets3,804,8323,895,2073,985,5824,179,3324,751,207
Total property expenditures13,944,87718,851,39815,726,59215,565,99016,134,646
Total expenditures (B)14,084,90618,886,39815,761,59215,600,99016,169,646
Net surplus (deficit)
(A - B)
894,426720,8501,949,4311,086,372986,552

Appendix: 2026–2027 annual letter of direction

Dear Nevin,

I am pleased to share our government's 2026–2027 priorities for Agricultural Research and Innovation Ontario.

Agencies are a part of government and are expected to act in the best interests of the people of Ontario. In a time of economic uncertainty, agencies play a critical role in supporting our commitment to Protect Ontario by improving service delivery, driving innovation and ensuring responsible stewardship of public resources – all while adhering to government policies and directives.

In accordance with the Agencies and Appointments Directive (AAD), agencies are required to align their goals, objectives and strategic direction with our government's priorities. As chair, you are responsible for ensuring that ARIO's business plan clearly demonstrates how the agency will fulfill these expectations. Progress and achievements must be reported through your annual report, and compliance with these requirements will be monitored and reported to Treasury Board/Management Board of Cabinet annually.

This letter sets out my expectations for 2026–2027, with a focus on how ARIO will contribute to protecting Ontario by delivering better services and driving innovation and value for money.

Protect Ontario

  • Expand domestic partnerships within Canada, to promote the development of supply chains and economic opportunities across Canada and support economic resilience, particularly in light of ongoing U.S. tariff threats and economic uncertainty.
  • Procure from Ontario and Canadian businesses whenever feasible.
  • Provide economic relief for Ontario families, consumers and businesses by freezing government fees and fares, unless approved by my office.

Deliver better services

  • Focus on a user-centered client/customer experience by simplifying interactions, improving satisfaction and expanding and optimizing digital service offerings.
  • Identify opportunities to enhance efficiency, improve services, drive innovation and achieve cost savings for the people of Ontario, including through the use of AI and other advanced technologies.
  • Eliminate unnecessary bureaucracy and red tape by applying lean methodologies or other modalities to achieve operational efficiency.

Drive innovation and value for money

  • Find innovative solutions to use public resources efficiently and to effectively deliver on the agency's mandate while operating within agency's financial allocation, supported by accurate financial reporting, effective internal controls and proactive fraud management practices.
  • Manage agency workforce with careful responsibility to stabilize expenditures and preserve long-term financial viability by:
    • strictly adhering to the hiring control parameters, including ceasing hiring for non-business critical and non-public-facing positions, including the use of consultants
    • operating within a defined maximum workforce size (including consultants)
    • ensuring compliance with the Broader Public Sector Executive Compensation Act
    • enhancing productivity and efficiency by using technology wherever possible
  • Create a span of control policy that recognizes different streams of work within the organization and sets minimum span of control benchmarks and provide it to my office for approval by March 31, 2026.
  • Provide to me and Deputy Minister John Kelly by October 1, 2025, the amended human resource policy, guideline or directive that adheres to the Ontario Public Service in-office standard of 4 days per week effective October 20, 2025, and 5 days per week effective January 5, 2026, and work with your oversight ministry to address any office space constraints.

These are the government-wide commitments for board-governed provincial agencies. Please see the attached guide for further details of each priority and the accompanying outcomes and performance measures that can be utilised if measurements are not currently in place.

I am also sharing several priorities specific to ARIO:

Infrastructure

  • In collaboration with the poultry industry boards, the University of Guelph and the contracted service providers, progress on the planning, design and construction of the new Ontario Poultry Research and Innovation Centre at the Elora research station.
  • Progress on the planning, design and build of the Ontario Feed Innovation Centre – a micro scale research feed mill initiative at the Elora research station.
  • Prioritize high-impact projects and initiatives through the minor capital program to enhance and upgrade research centre infrastructure.
  • Provide value for money in efficiently owning, managing and re-investing in the Province of Ontario's agri-food research facilities and property, while continuing to provide effective long-term oversight and management through advancing ARIO's comprehensive strategic asset management plan and subsequent research station asset management plans.
  • Work with the University of Guelph, Ridgetown Campus and industry to begin planning for the Dairy Education Centre and Entomology Lab, while the broader strategic direction of the campus including academic, research and industry needs.

Strategic advice and planning

  • Provide strategic advice to me, my office and the ministry on research and innovation priorities and programs that contribute to prosperous, competitive and sustainable agricultural and food sectors in Ontario.
  • Work in close coordination with OMAFA to support the research and innovation objectives of the Grow Ontario strategy.
  • Implement strategies that will enhance management of ARIO's interests in IP and commercialization, including the expansion of the Innovative Breeding Research Program.

Communications

  • Continue to develop and implement the agency's strategic communications and branding strategies with a key goal to increase awareness of the agency within the agri-food sector.
  • Actively promote the research activities and network of research stations within the agri-food sector through attendance at relevant industry events and increased web presence.

Establish and strengthen relationships that enhance agri-food research and innovation to protect Ontario

  • Continue to consult with academia, researchers, industry and partners across the sector to determine research needs and to promote and coordinate agri-food research.
  • Maintain, strengthen and increase new and existing strategic relationships, with academic institutions, and industry organizations including Indigenous peoples, communities and organizations to:
    • leverage ARIO's assets in support of industry-government research and innovation priorities for the benefit of the province and agri-food sector
    • encourage and facilitate knowledge translation and transfer with respect to agriculture and food
  • Progress on the agency's use and access policy and plan with the University of Guelph to enhance and enable use of ARIO's research centres by a variety of users.

ARIO governance, continuous improvement and oversight compliance

  • Draft and implement policies and protocols in accordance with the requirements of the AAD that will focus on governance, operational effectiveness, sustainability and efficiency to ensure that ARIO is well-positioned to effectively manage the oversight of finance, infrastructure, strategy and communications for the long-term.
  • Continue to advance the agency's Indigenization, equity, diversity and inclusion learning and development.

At our next meeting, I would be pleased to discuss these priorities, and I look forward to hearing how they will be reflected in the agency's upcoming business plan and in ongoing agency operations. Thank you and your fellow board members for your continued commitment to ARIO. Your work and ongoing support is invaluable to our government and the people of Ontario.

Should you have any questions, please feel free to contact my office or Gregory Wootton, chief administrative officer/assistant deputy minister, Research and Corporate Services Division.

Sincerely,

Hon. Trevor Jones

Minister of Agriculture, Food and Agribusiness


Footnotes