2025–2028 Agricultural Research and Innovation Ontario business plan
Executive summary
Agricultural Research and Innovation Ontario’s (ARIO) 2024-2027 business plan outlines the agency’s commitments as they relate to Ministry of Agriculture, Food and Agribusiness’ (OMAFA) priorities, the agency’s duties and rights as outlined in the ARIO Act, the Memorandum of Understanding (MOU) between ARIO and OMAFA, ARIO’s vision and the 2025-2026 annual letter of direction.
ARIO will align its work to fulfill its responsibilities and the priorities set by the Minister of Agriculture, Food and Agribusiness. These focus areas include:
- Advice: Provide strategic advice to the minister on research and innovation with respect to agriculture, food and agribusiness.
- Engagement and relationships: Establish and strengthen relationships that enhance research and innovation in respect to agriculture, food and agribusiness.
- Oversight on research programs and facilities: Consult with academic and researchers, producers, processors industry and other organizations in the agricultural and food sectors to determine needs, co-ordinate and establish open research programs. Additionally, provide oversight to the 14 ARIO-owned research properties.
- Strategic implementation: Continue to implement ARIO’s strategic plan 2023-2032 with the vision of enabling high impact and transformational research for Ontario’s agriculture, food and agribusiness sector.
- Advocacy: Promote the benefits of and the interest in research as a means of increasing innovation and commercialization within the Ontario agriculture, food and agribusiness research and innovation system.
- Governance: Modernize ARIO's governance, procedures and processes to strengthen the foundation of ARIO as a modern, effective agency focused on research and innovation.
- Knowledge: Encourage and facilitate knowledge translation and transfer (KTT) with respect to agriculture, food and agribusiness.
OMAFA’s priorities
OMAFA helps to build stronger agriculture, food and agribusiness sectors by investing in the development and transfer of innovative technologies, attracting investment, developing markets, providing regulatory oversight and providing effective risk management tools. In cooperation with the Ministry of Rural Affairs (MRA), OMAFA also helps enable rural Ontario to build strong, vital communities with diversified economies and healthy social and environmental climates.
OMAFA directly supports and advances the Grow Ontario strategy, which is the government's plan to strengthen the agriculture, food and agribusiness sectors, fuel economic growth, help to ensure an efficient, reliable and responsive food supply, and address ongoing sector vulnerabilities through research and new innovations. OMAFA strives to unlock the potential of Ontario’s agriculture, food and agribusiness systems through several key priorities.
These keys to achieving success include:
- robust protection, contribution and assurance of the agri-food system in the agri-food sector (for example, enforce and improve food safety and animal, plant and human health)
- providing stewardship of Ontario’s capacity to produce food (for example, soil and water quality, climate change), expanding agriculture in the north
- fostering economic development in the agriculture, food and agribusiness sectors (for example, food processing, bioproducts)
These initiatives strive to create a stronger economy for the province, help to ensure sustainability of agriculture, food and agribusinesses sectors, and build a high quality of life for both rural and urban Ontario communities alike.
Agricultural Research and Innovation Ontario Act
The Agricultural Research and Innovation Ontario Act (ARIO Act) gives ARIO its authority as a board-governed agency that reports to the Minister of OMAFA. The ARIO Act was updated in 2024 to broaden the scope of research in Ontario. These updates aim to support the agriculture, food and agribusiness sectors by encouraging the adoption of advanced production practices and the commercialization of new technologies. This will help improve the sector’s competitiveness and productivity.
In addition to an updated mandate for the agency that provides greater focus on industry relationships and consultation, the ARIO Act also outlines key authorities for the agency, including the authority to:
- own real property
- hold funds to carry out the mandate of the agency
- establish programs for agri-food research and innovation
- enter into agreements regarding intellectual property
The modernization of the ARIO Act furthers Ontario’s vision to be a global leader in agriculture and agri-food research and innovation. Increasing competitiveness and productivity as well as the development and adoption of new technologies in the agriculture and food industry are key goals set out in the Grow Ontario strategy. The ARIO Act updates are one way the Ontario government is strengthening the agriculture and food industry, supporting economic growth, and ensuring an efficient, reliable and responsive food supply for Ontarians.
MOU between ARIO and OMAFA
As a board-governed operational service agency, ARIO has a MOU with OMAFA. The purpose of the MOU between ARIO and OMAFA is to:
- establish the accountability relationships between the minister of OMAFA, the chair of ARIO and ARIO’s managing director
- clarify the roles and responsibilities of the minister, the deputy minister of OMAFA, the chair of ARIO, ARIO’s managing director and ARIO’s board members
- clarify and delineate the operational, administrative, financial, staffing, auditing and reporting arrangements between ARIO and OMAFA
The previous MOU between OMAFA and ARIO was last revised in June 2019 and affirmed in 2021. On October 1, 2024, revised requirements were released through an updated Agencies and Appointments Directive (AAD). In conjunction with these updated requirements, the agency continues to work on updating the MOU. While aiming to meet the February 1, 2025, deadline to have the new MOU approved and signed, a provincial election and writ period caused delays and ARIO was not able to meet this timeline. Early 2025 will restart the approval process for the MOU to bring the agency into compliance with the AAD with a deadline of late spring 2025.
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: Ontario’s research and innovation infrastructure and assets are leveraged to maximize benefits for the agri-food sector.
Advice: Provide bold, informed strategic advice to the minister on transformative, high-impact agri-food research and innovation.
Strategic relationships: Establish strategic relationships that enhance the research ecosystem and align with the priorities and objectives of the ministry, ARIO and sector.
Communications: Communicate the value of Ontario’s agri-food research, including opportunities and successes in research and innovation.
ARIO’s 2024-2025 annual letter of direction
In the fall of 2024, Ontario’s Minister of Agriculture, Food and Agribusiness the Honorable Robert J. Flack, issued the Annual Letter of Direction to ARIO’s chair, outlining the government’s 2025-2026 priorities and expectations for all agencies including priorities specific to ARIO.
2025-2026 OMAFA agency priorities
Innovative
- Simplify client/customer interactions.
- Expand and optimize digital service offerings.
- Improve client/customer satisfaction.
Sustainable
- Strengthen public service delivery by optimizing organizational capacity and directing existing resources to priority areas.
- Use public resources efficiently and operate within ARIO’s financial allocations.
Accountable
- Develop and report on outcome-focused performance measures to effectively monitor and measure performance.
- Protect individual, business or organization data by actively managing data and cybersecurity and reporting Artificial Intelligence uses.
- Report all high risks including effective mitigation plans.
- Align hybrid work policies with the Ontario Public Service (OPS).
- Develop and encourage diversity and inclusion initiatives by promoting an equitable, inclusive, accessible, anti-racist and diverse workplace.
Priorities specific to ARIO
Major capital builds
- Continue to engage with the poultry industry boards, the University of Guelph and contracted service providers to further the planning, design, and proposed construction of new poultry research facilities at Elora.
- Continue the planning for the funding, design and build of the Ontario Feed Innovation Centre - a micro scale research feed mill initiative at Elora Research Centre to replace the aging and obsolete Arkell research feed mill.
Property ownership, management and sustainable infrastructure projects
- Continue to provide value for money in efficiently owning and managing the Province of Ontario's agri-food research facilities and property.
- Continue to provide effective long-term oversight and management of ARIO’s physical assets through ARIO’s asset management plan (AMP) and policy and the development of a comprehensive strategic asset management plan (SAMP).
- Continue to prioritize high-impact projects and initiatives through the minor capital program to enhance and upgrade research centre infrastructure.
- Engage with the agriculture and food industry, academia and innovation experts to evaluate future research infrastructure needs.
- Continue to pursue the revitalization of the province’s agri-food research infrastructure necessary to support innovative research and the long-term sustainability and growth of the agriculture, food and agribusiness sectors by developing state of the art, integrated research infrastructure capacity supported by shared funding models and partnerships between industry and government.
- Increase the pursuit of strategic relationships in support of industry-government research and innovation priorities and modernizing research infrastructure.
- Continue development, investment and implementation of sustainable and green technologies throughout ARIO’s infrastructure including technologies and cost/carbon saving measures such as water conservation, water re-circulation systems and energy conservation and generation systems, such as installing solar arrays at research centres.
Strategic planning and advice
- Continue to support the objectives of the Grow Ontario strategy by enabling adoption of innovation within the sector.
- Continue to provide strategic advice to the Minister and the ministry on research priorities and programs that contribute to prosperous, competitive and sustainable agricultural and food sectors in Ontario.
- Engage with industry, academia and innovation experts to help inform the development of research priorities, including but not limited to mediums such as roundtables, committees, working groups or research days at the centres.
- Continue to implement ARIO’s vision to enable high impact, transformational research and innovation.
- Continue to evaluate opportunities for research and innovation in agriculture and food, including, but not limited to, OMAFA’s research priorities, northern agriculture, genomics, robotics and automation, technology development and food processing.
- Implement strategies and programs to improve the strategic management of ARIO's interests in intellectual property and commercialization, including the expansion of the Innovative Breeding Research Program (IBRP) that supports plant and animal breeding research in Ontario.
- Continue to work in close coordination with OMAFA, industry and academia, to proactively identify and prepare for future trends that may impact the Ontario agri-food and agriproducts sectors and position ARIO facilities to meet the needs of emerging research priorities and deliver “Ontario made” solutions, technology and best practices to the sector.
ARIO governance
- Provide recommendations of new member candidates that could expand and complement the current board of directors’ skillsets and bolster new perspectives and engagement opportunities for ARIO.
- Undertake a mandate review of the agency that will focus on governance, operational effectiveness, sustainability and efficiency to help ensure that ARIO is well-positioned to effectively manage the finance, infrastructure, strategy and communications of the agency for the long-term.
- Establish member and non-member committees to further the objectives of the Grow Ontario strategy, the agency and the government.
- As per the direction of Treasury Board Secretariat (TBS) and resulting from the recent modernization of the ARIO Act complete and receive approval for an amended MOU and finalized finance and governance bylaws for the agency.
Communications
- Begin to implement an optimized communications plan for the agency with a key goal to increase awareness of the agency, both internally in OMAFA and externally.
- Actively promote the research activities and network of research centres within the agri-food sector.
- Continue to strengthen ARIO’s relationships with the University of Guelph, Vineland Research and Innovation Centre (VRIC) and other parties to communicate:
- the impact of Ontario’s agri-food research
- research results to key agri-food clients in a format that is useable and accessible
- Implement the next phase of the strategy to brand ARIO and increase the prominence and awareness of the agency within the agri-food sector, centering on the modernized ARIO Act and elevated profile of the agency as prominent features.
Strengthen collaborations, increase strategic relationships and leverage assets
- Increase collaboration with universities/colleges/research institutions, 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.
- Continue work on ARIO’s use and access policy plan with the University of Guelph to enhance and enable third party use of ARIO’s research centres.
- Directly engage with the sector for the purpose of expanding innovation demonstrations and technology deployment through strategic relationships at the ARIO research centres.
Agencies and Appointments Directive (AAD): ensuring transparency and accountability and good governance
As per the AAD, ARIO continues to abide by applicable government directives and policies and ensuring transparency and accountability in corporate and other reporting.
Strong, effective and efficient governance is foundational to the success of ARIO. This is a most critical element to enable both ARIO’s strategic plan and the broader operational and corporate efforts of ARIO.
Foundational: Agencies and Appointments Directive
Activities and functions that enable good governance include:
- modernized ARIO Act, and its supporting documents, such as bylaws for finance and governance
- ARIO’s MOU
- ARIO’s annual letter of direction
- ARIO fulfilling all mandatory provincial agency reporting requirements as per the AAD (such as the annual report, financial statements, business plan, risk assessment evaluations, certificate of assurance)
- standardized agency appointments and reappointments process
Key performance indicators (KPIs):
- ARIO membership knowledge and competency reflect ARIO’s members skills matrix in combination with the AAD.
- Members are engaged annually on OMAFA’s research agenda and research priorities, and research outcomes, and inform advice to the minister through report back letters.
- ARIO membership includes representation of leadership from equity deserving groups, peoples and communities.
- A minimum of 3 annual Indigenization, Equity, Diversity and Inclusion (IEDI) professional development/learning sessions.
ARIO annual report reflects how the agency has directly fulfilled the annual letter of direction and business plan.
Operational and corporate governance
Activities and functions that enable good governance include:
- an annual schedule for ARIO meetings established and communicated one year ahead of time
- standardized meeting frequency between managing director and deputy minister, and chair of ARIO and minister on a yearly basis
- standardized timelines for sharing materials for ARIO meetings
- the drafting of ARIO governance bylaw working in conjunction with ARIO’s MOU and including operational aspects such as term limits, attendance thresholds and others
KPI:
- ARIO meeting agenda and materials are shared within the standardized timeframe to enable members to review items and prepare for meetings.
- A minimum of 4 meetings between the managing director and deputy minister annually.
- Chair will provide a report back letter to the minister after every ARIO board meeting.
- Completion of annual ARIO members survey to self-assess the performance of the organization and group strengths and weaknesses.
- Governance bylaw KPI include 3-year term limits up to a maximum of 3 terms for board members, attendance thresholds and reporting to the minister, and other metrics.
- Event reports from board members who attend events, conferences and other activities on behalf of ARIO, that are then shared logged and shared with the remainder of the board.
Environmental scan
The environmental scan describes the parameters in which ARIO operates. It identifies key trends, events and issues that present risks and opportunities for the agency, which allows ARIO to be proactive in assessing and responding to changes in both the external and internal environment that may have an impact on the operation, strategies and tactics undertaken by the agency. Both external and internal factors have been identified and described in detail.
External factors examined include:
- legislative, regulatory or policy changes (of federal, provincial or municipal governments)
- fiscal environment and economic outlook
- changes and trends in the operating environment
- demographic shifts, labour market conditions, labour relations and employment conditions
Internal factors examined include:
- key cost and program delivery drivers
- workforce demographics and labour relations issues
- structural changes which may impact the organization
- program reviews, audits, surveys and recommendations from reports provided to the ministry/agency
External factors
Legislative, regulatory and policy changes (federal, provincial and municipal)
The legislative, regulatory and policy landscape in the country and province continues to significantly shape the agricultural research ecosystem. At provincial and federal levels, governments are focusing on updating policies and programs to address sustainability, climate adaptation and innovation in agriculture. Key federal, provincial and territorial legislative changes, along with key policies including the Canada-Ontario bilateral agreement implementing the Sustainable Canadian Agricultural Partnership (Sustainable CAP) which is entering its third year of a 5-year agreement, emphasizing climate-smart agriculture, emission reductions and improved resilience across agricultural systems
Recent amendments to several federal and provincial acts, reflect growing concerns around environmental impacts and sustainability in agriculture and overall. Some of these changes look to impose stricter regulations on agricultural inputs to minimize risks to ecosystems while encouraging the adoption of greener alternatives. Some of these regulations, could require enhanced nutrient management planning for the agricultural sector, with the aim at protecting water resources while supporting sustainable farming practices. These policies align with Canada's broader commitments under international agreements such as the Paris Agreement and the United Nations Sustainable Development Goals
ARIO’s minor and major capital projects that are underway or proposed continue to integrate a lens of sustainability and reduction in environmental impact, including green energy upgrades and integrations at ARIO’s research centres.
Policy developments at both levels of government increasingly emphasize public-private collaborations to leverage innovation and maximize research funding efficiency. These collaborations aim to bridge the gap between research and application, ensuring that new technologies and practices benefit farmers and the broader agriculture, food and agribusiness sectors. As part of ARIO’s new mandate a new objective of the agency is to stimulate interest in research as a means of increasing innovation and commercialization. This is an opportunity for ARIO to support the application and adoption of research down to the end-users such as farmers or food processors to achieve maximum impact.
Challenges remain for end-users. Regulatory complexities and compliance can pose barriers for small and medium-sized farms, highlighting the need for support to help ensure access to funding and resources but also KTT for this demographic. ARIO can use its profile and connections to these end users to support access to these resources for them. Equally, the effectiveness of these legislative and policy changes will depend on consistent stakeholder engagement, something that ARIO, through events and its portfolio of research centres, can help the sector accomplish.
Economic outlook and fiscal and funding environment
High interest rates throughout the last year significantly cooled economic activity, but as inflationary pressures ease, the Bank of Canada (BoC) is anticipated to continue implementing rate cuts, which were already started in late 2024. These reductions are projected to bring the policy rate closer to the neutral range of 2-2.5% by late 2025
In contrast to recent years, rate adjustments could benefit ARIO in the buying power for minor and major capital projects, although the caveat remains that supply chains still aren’t fully recovered even years out from the pandemic, resulting in historically elevated construction costs. Although, any benefit to rate cuts may be entirely offset by the very serious and likely risks of trade disruptions, particularly with the United States (U.S.), adding another layer to economic uncertainty. The threat of the imposition of 25% tariffs on a broad range of goods has and will continue to be disruptive in longstanding trade relationships, with agriculture being notably affected
The potential for a prolonged recession in 2025 has been a focal point in economic discussions. While indicators suggest that Canada could avoid a severe downturn, economic fragility remains high
Government fiscal policy will play a pivotal role in shaping the funding environment for agricultural research and innovation, and ARIO in general. While economic stabilization efforts are likely to dominate short-term priorities, the strategic importance of agriculture for food security and rural livelihoods underscores its critical need for continued investment, particularly with a growing national and provincial population. Recent government economic statements echo this, and outline investments aimed at fostering innovation and productivity, including through means like the Ontario Agri-Food Research Initiative (OAFRI) to support projects that develop new technologies and solutions
In seeking continued and sustainable funding sources, ARIO continues to highlight the positive and forward-looking impact that this investment in agricultural research and innovation can yield while also underscoring the risks that reductions to this budget could have for the sector, province and country. The hope is that a balance can be struck to address the immediate economic pressures with the necessity of fostering long-term resilience in agriculture through research and innovation funding.
In scenarios where the recessionary impact is mild, governments may sustain or slightly increase funding allocations for agricultural research, recognizing its role in driving productivity, sustainability and climate adaptation. However, in the event of a more pronounced economic downturn, fiscal constraints might necessitate difficult decisions regarding resource and funding allocation, including the agriculture, food and agribusiness sectors. This scenario may heighten competition between other sectors such as healthcare, infrastructure and social services and could potentially limit the growth of agricultural research budgets
ARIO has made significant progress and continues to work on the agency’s financial outlook and plan to deliver on the agency’s operational needs and capital commitments under the agency’s expanded mandate. The plan will continue to leverage a shared funding model and collaborations between academia, industry and government that may enable increased sector collaboration and foster research and innovation across the agriculture, food and agribusiness industries.
Given the agriculture, food and agribusiness sector’s strategic importance, collaborative efforts will be essential to help ensure that agricultural research and innovation remain priorities. ARIO’s role and strength in providing strategic advice and active engagement with agriculture, food and agribusiness stakeholders, industry partners and OMAFA, enables the agency to recommend innovative research for the agri-food industry to boost productivity and improve the competitive advantage while creating stronger industry support for and adoption of research and innovation initiatives.
Collaborations between the government, industry stakeholders and academia will play a vital role in advocating for sustained investment and aligning initiatives with broader economic recovery objectives. ARIO can and will work at fostering collaborations and aligning with the Grow Ontario strategy by connecting and coordinating emerging and immediate agricultural needs that are being heard from around the agriculture, food and agribusiness industries and ultimately enhance those sectors’ capacity to adapt to evolving challenges. The investments in agri-food research have a multiplier effect on the industry, whereby direct government investment to support projects and infrastructure, or investment through the federal/provincial government mechanisms, provide an immediate economic stimulus and long-term sector growth boost.
Changes in the operating environment: interest rates, inflation and cost of goods
Entering 2025, the operating environment for Canada’s economy remains influenced by ongoing adjustments in interest rates, inflationary trends and cost pressures across key sectors. The BoC has signaled a cautious approach to rate reductions, with the policy rate expected to approach the neutral range of 2-2.5% by late 2025
Like previous years, ARIO must be cognizant that although rates are decreasing, erosion of buying power still exists, particularly with capital builds. Estimates for new capital builds are no longer valid for as long as they once were, with increasing or fluctuating quotes driving up the overall investment requirement for capital builds. The resulting funding gaps are not minor and must be addressed or have the project(s) face deferral or pausing altogether for reassessment.
The agricultural sector faces additional challenges, including persistent:
- food price inflation
- supply chain disruptions
- geopolitical tensions
With the Canadian dollar weakened further due to U.S. trade and tariff pressures, food price increases are projected to rise 3-5% in 2025, with some staples facing even greater volatility
Efforts to address these challenges include increased emphasis on innovation and efficiency within agricultural operations while opportunities exist for funding for research and development initiatives aimed at reducing production costs and improving resource efficiency. One way ARIO will continue to achieve both outcomes is through the continued development of the agency’s SAMP and continued prioritization and investment into the minor capital program. This focus on enhancing the sector’s resilience through investments in new technology and upgraded or renewable/sustainable infrastructure helps ensure that ARIO can also realize reduced operational costs and long-term inflationary resilience.
Demographic shifts, labour market, employment and employment conditions
Demographic changes and labour market trends continue to shape the operating environment for agricultural research in Ontario. Population growth remains a defining feature and with over 1.5 million new immigrants expected between 2024 and 2026, labour supply expansion is set to outpace previous benchmarks. However, the integration of these workers into the labour market presents challenges, including potential mismatches between skills and job requirements, as well as regional disparities in employment opportunities
The long-term impact of ARIO’s world class research facilities attracting top tier researchers results in the increasing of the downstream labour market for agriculture, food and agribusiness industries by graduating skilled talent from research initiatives. This underscores the importance of such workforce development initiatives, like training programs and apprenticeships through research programs, to help ensure a steady pipeline of these skilled workers continues
Employment conditions within agriculture are evolving, influenced by technological innovation and changing regulatory requirements. Automation and digital tools are reshaping job roles, creating demand for specialized skills in areas such as data analysis, precision farming and sustainability practices
Collaboration between government, industry and academia will be critical in addressing these demographic and labour market challenges
Changes in the operating environment
Geopolitical
Ongoing and arising geopolitical risks remain a critical factor shaping the global and domestic agricultural landscape in 2025. Tensions and conflicts such as the ongoing war in Ukraine, escalating U.S.-China trade disputes and unrest in the Middle East continue to disrupt energy markets, supply chains and global trade flows. These instabilities contribute to uncertainty in key input costs, including fertilizers and energy and present challenges for agricultural research and operations
With a new U.S. administration in place and growing policy divergence between Canadian, U.S. and Mexican governments, shifting trade relations introduce additional uncertainty. The Canada-United States-Mexico Agreement (CUSMA), is up for review in 2026, increasing risks of renegotiations that may affect agricultural exports and imports
Energy prices, which had been relatively stable in early 2024, have experienced volatility due to geopolitical disruptions. While crude oil and natural gas supplies from Russia remain constrained, shifting global alliances and supply routes have added layers of unpredictability to the market
While unlikely to mitigate all the effects of fossil-fuel related pricing volatility, the continued efforts of ARIO to adopt and integrate more renewable energy sources and energy-efficient practices at the research centres does incrementally help to reduce the downstream implications of these pricing swings. There exists an opportunity for the agency to capitalize on the opportunity of exploring long-term sustainability-related solutions that address the problem both in the immediate and for the future. ARIO has forecasted these risks and has planned initiatives in the minor capital program to work towards energy resilience and reduction or recapturing of energy usage.
These geopolitical challenges necessitate that ARIO continue to take proactive measures to enhance resilience within research and innovation space for the agriculture, food and agribusiness sectors. This can include advocating for:
- strengthening and fostering domestic production capabilities
- diversifying input sources
- advising for trade diversification
- enhancing supply chain resilience
ARIO voicing encouragement for stronger collaboration between government, industry and academia will be crucial in mitigating risks and ensuring the stability of Ontario’s agricultural, food and agribusiness sectors. The agency’s ongoing role of being a “connector”, bridging public and private stakeholder collaboration, positions it well to support in providing advice on response to these evolving global risks.
Extreme weather, environmental impact, in the face of climate change
Climate change will continue to pose dramatic risks to Ontario's agriculture, food and agribusiness sectors for the foreseeable future, impacting everything from food production to infrastructure and businesses. Ontario's agri-food industry, which contributes over $51 billion in gross domestic product (GDP) to the provincial economy (6.4% of total Ontario GDP), faces specific risks like declining productivity, crop failure and challenges raising livestock due to climate change
Climate-induced impacts directly affect agricultural practices and productivity and when surveyed, many farmers say they have experienced at least 1, if not more, of drought, heat waves, floods, wildfires, hail, tornadoes or new pests and diseases in the past 5 years alone
Equally though the volatile nature of the climate in the manifestation of extreme weather events in unpredictable fashion poses an enormous financial risk to farmers, researchers and the industry. The financial impacts of climate change are still net negative, as it’s estimated that as of 2025 the 10 years previous have reduced the national GDP by $25 billion as a direct or downstream result of climate change
Outdated assets, infrastructure and research facilities in the sector are particularly vulnerable to climate change impacts. Aging facilities struggle to adapt to evolving conditions, hindering their functionality and capacity for conducting cutting-edge research. Addressing these gaps through the minor capital program and managing these aging assets and infrastructure through the development and implementation of the SAMP will be at the forefront, involving a comprehensive assessment of the existing infrastructure portfolio. Keeping ARIO’s facilities in modern, energy-efficient states will be critical for maintaining Ontario’s leadership in agricultural innovation.
Intellectual property (IP) development and retention
In the evolving knowledge-based economy, effective IP management and retention remain pivotal for ARIO and Ontario’s agricultural research sector. IP plays a critical role in:
- driving economic growth
- fostering innovation
- enhancing global competitiveness
There are challenges that persist in Canada, where a significant portion of domestically developed patents, trademarks and designs are commercialized abroad rather than within the country. This circumstance, often attributed to gaps in IP literacy and resource accessibility, hampers the commercialization of innovations and diminishes economic returns for domestic stakeholders. Federal and provincial initiatives in 2025 continue to prioritize addressing these challenges through measures aimed at strengthening IP development, retention and commercialization frameworks.
Key elements include:
- IP education and awareness: The Government of Ontario, through the Intellectual Property Ontario (IPON) initiative, has expanded access to standardized online IP education and advisory services for innovators and researchers
footnote 24 . - Centralized Support Resources: IPON serves as a centralized hub for IP expertise, offering legal advice, commercialization guidance and access to strategic IP tools. This hub supports Ontario’s academic and research institutions, including University of Guelph, and by extension, with ARIO, in safeguarding their innovations and exploring viable commercialization pathways
footnote 25 . - Legislative and governance enhancements: Provincial efforts have included the implementation of frameworks to standardize IP governance across organizations involved in entrepreneurial and innovation activities
footnote 26 .
As a key driver in the province’s economy, Ontario’s agricultural research sector, supported by ARIO, stands to benefit significantly from these IP advancements. This can be accomplished through the realization of the full economic and domestic commercialization of innovations generated through research in areas such as precision agriculture, biotechnology and sustainable farming practices. The potential exists that ARIO sees IP development from its own ongoing IBRP which could foster economic growth and competitiveness of the sector by strengthening export market opportunities, enhancing research and innovation capacity, creating new made-in-Ontario intellectual property, while generating reinvestment funds for ARIO.
ARIO must continue to advocate for IP literacy and support the integration of IP education within its research portfolio. This includes continued awareness of provincial and federal resources to help ensure that agricultural innovations contribute to the province’s economic growth through the leveraging on the value of this research-derived IP.
Research security
In 2025, the Canadian research community continues to face a heightened threat of data security breaches originating both domestically and internationally. These threats pose risks to the integrity of agricultural research, national security and economic competitiveness. Recognizing these challenges, federal and provincial governments continue to intensify their focus on research security, advocating for robust policies and precautionary measures to protect sensitive data and intellectual property
With ARIO firmly in the research space, research security is paramount to the agency and the researchers at ARIO’s facilities. The risk exists that ARIO requires a research security policy with supporting procedures for any future research activities ARIO may directly support, such as an expanded IBRP. Fortunately, to date, ARIO has relied on the extensive expertise of the University of Guelph through the Ontario Agri-Food Innovation Alliance Agreement (branded as the “alliance agreement”) to operationalize research security policies on ARIO properties.
The risks to research security are multifaceted, encompassing economic, geopolitical, institutional and biosecurity dimensions, including the emergence of artificial intelligence in many areas. Broader research security framework, academia, institutions and agencies are aligning their policies with provincial and national directives, which includes considerations for national/provincial security, maintaining IP rights while ensuring the benefits of that IP is retained in Ontario, and adopting and evolving enhanced research screening processes
Internal factors
The 2023-2028 “Ontario Agri-Food Innovation Alliance”
The alliance agreement supports agri-food and rural research, laboratory services, veterinary capacity, research centre management and regulatory training for the agri-food sector. The ministry has had comprehensive agreements with the University of Guelph since 1997. The current alliance agreement with the University of Guelph runs from 2023 through 2028 and provides critical programming for the province that:
- supports public confidence in, and competitiveness and productivity of, the agri-food sector through activities that provide assurance in food safety and quality, protect plant, animal and related public health, and that support environmental sustainability
- helps ensure that Ontario has the tools and ability to respond to emergencies quickly and effectively within its agri-food sector, including disease outbreaks and extreme or sudden unpredictable events that threaten the viability and security of the agri-food sector
- supports an effective agri-food research and innovation system that sustains core capacity and that may generate new capacity to undertake world-class research, maximizes the use of research infrastructure in a manner that provides benefits to all of Ontario’s regions, informs evidence-based public policy, increases public awareness and dialogue, supports the commercialization of new technologies and fosters frequent and quality collaboration among the agri-food and rural research community, University of Guelph and the agri-food sector in Ontario
- supports the development of a skilled workforce that is ready for employment opportunities offered by the agri-food sector and rural Ontario, including development of highly qualified veterinary capacity to meet Ontario’s needs
- grows third-party investment in research, innovation and data initiatives, which are focused on the agri-food sector
- improves access to and sharing of data to facilitate new agri-food research and the application of research funded under the alliance agreement
The alliance agreement continues to create new opportunities to collaborate with key stakeholders to deliver the alliance agreement’s goals and objectives by attracting private and public sector investment and collaborations in support of agri-food research and innovation. With respect to ARIO’s research centres, the alliance agreement helps to address:
- facilitation of the use of the ARIO research centres as platforms for research and innovation, including the promotion and formation of collaborations among the agri-food and rural research community, the University, the agri-food sector and rural Ontario
- operation, maintenance and repairs of the ARIO properties in a manner that is cost effective, environmentally responsible, demonstrates economic value for the province of Ontario and is consistent with and in furtherance of the agricultural, research and innovation
- maximization of the use of research infrastructure available at the ARIO research centres in a manner that provides benefits to Ontario’s agri-food sector and rural communities
The alliance agreement is a significant economic driver in Ontario, returning an estimated impact of $1.44 billion to Ontario’s GDP
The alliance agreement enables and aligns with ARIO’s strategic plan including:
- increasing Government of Ontario and ARIO visibility at research centres
- encouraging greater access to the research centres by third parties
- strengthening commitment to IEDI
- continuing management of 13 ARIO research centres
The Sustainable Canadian Agricultural Partnership (Sustainable CAP) 2023-2028
The Sustainable CAP began on April 1, 2023, and is a $3.5 billion, 5-year commitment by Canada’s federal, provincial and territorial (FPT) governments to fund a breadth of projects, including agriculture research projects. The Sustainable CAP program has entered year 3 of a 5-year program in fiscal year 2025–2026. Currently there are Sustainable CAP transfer payment agreements (TPAs) executed between ARIO and academic institutions/organizations.
The ongoing projects include:
- VRIC infrastructure delivery agreement
- Ontario Poultry Research Centre design (University of Guelph)
- Research Station platform upgrades (University of Guelph)
- Lakehead University Agricultural Research Station (Lakehead University) infrastructure delivery agreement
Ontario’s Sustainable CAP program areas include:
- science, research and innovation
- productivity and growth
- protection and risk resilience
- stewardship
Its goal is to achieve a sustainable, resilient, trusted and thriving Ontario agriculture, food and agribusiness sectors that innovates to drive integrated economic growth and one-health solutions, which increases the likelihood of improving the health of people, animals and the shared environment. This program may create opportunities for additional capital investments for ARIO, for deploying Sustainable CAP in a methodical and strategic way to address high priority and critical infrastructure needs. The program could also enable increased opportunities for innovation demonstrations and technology deployment at ARIO’s research centres.
Grow Ontario: a provincial agri-food strategy
The agriculture, food and agribusiness sectors’ vulnerabilities include labour shortages, outdated supply chain infrastructure, declining processing capacity and increasing volatility in U.S. relations and the possibility of trade tariffs. Vulnerabilities to Ontario’s food supply have been evidenced by temporary shortages, creating consumer concerns around food security.
Research and innovation have been identified as key to a secure, safe and resilient agri-food supply chain. However, innovation development and adoption are one of the most prevalent barriers limiting the global competitiveness and productivity of Canada’s agri-food sector. COVID-19 exposed critical deficits (such as low automation with modern equipment) in processing capacity that put the food security of Ontarians at risk.
In response to the sector’s vulnerabilities, the Government of Ontario announced in November 2022 the plan to build a strong, secure food supply chain and securing the province’s position as a food leader in Canada through research and adoption of new innovations with the release of Grow Ontario.
The Grow Ontario strategy focuses on 3 key priorities:
- strengthen agri-food supply chain stability
- increase agri-food innovation and adoption
- attract and grow Ontario’s agri-food talent
By 2032, under the strategy’s 3 priorities there are several goals the province aims to achieve including the increase of:
- the consumption of food grown and prepared in Ontario by 30%
- the production of food grown and prepared in Ontario by 30%
- Ontario’s food and beverage manufacturing GDP by 10%
- Ontario’s agri-food exports by 8% annually
- the number of patents and licenses (over 250) achieved through OMAFA-funded research
Grow Ontario has emphasized ARIO’s role in support of enabling the province’s strategy and the activities the agency may pursue under priority 2: increase agri-food innovation and adoption. These include:
- leveraging the newly modernized ARIO Act and the supporting mechanisms from it (updated MOU, agency bylaws) to meet the future needs of the sector, including innovation and technology as a key area of focus
- expanding the agency’s engagement with sector partners to strengthen the agri-food research ecosystem and increase opportunities for innovation demonstrations and technology deployment at ARIO’s research centres to address industry opportunities
- continued investments in research infrastructure to encourage the use of innovation and enhance the agribusiness profitability and ultimate commercialization of those innovations of the agri-food sectors (this includes making progress on projects such as the design work for the Ontario Poultry Research Centre and the commencement of design work on the Ontario Feed Innovation Centre project in Elora, for 2025)
Structural organizational changes: modernized ARIO Act and improved governance
Oversight of board-governed agencies is undertaken by TBS through the AAD. This directive, paired with the modernized ARIO Act, allows for numerous mechanisms to be executed immediately and/or developed in the foreseeable future to allow for better governance, corporate oversight, improved agency operations and overall due diligence including:
MOU between ARIO and OMAFA
A full re-draft of the MOU between the agency and provincial government, updated in form and content to reflect the new ARIO Act.
ARIO bylaws
The development of bylaws, governance and financial, along with the provision to make additional bylaws as required by the agency.
ARIO mandate review
Undertaking a full required mandate review for the agency but expanding it in 2 facets – one for extra focus on governance, and the second for extra focus on operations of the agency – to identify opportunities to introduce efficiencies.
New and/or updated roles and responsibilities
Given the age of the previous ARIO Act, it was a natural move to provide a refresh on key tenets of the ARIO Act such as language, definitions, as well as the areas of focus and emphasis on certain priorities. This update also included updated roles within the agency.
These initiatives will allow for ARIO to re-align with larger provincial guiding strategies such as the Grow Ontario strategy and help maximize positive outcomes for the agriculture, food and agribusiness industries in the province and country.
Emergency preparedness
During the early phases of the COVID-19 pandemic and subsequent lockdowns, ARIO, in consultation with OMAFA and the University of Guelph, put in place additional policies and procedures to support essential research operations. The plan helped minimize the impact of an emergency or incident at research centres and to allow operations to return to normal as soon as possible. Overall, ARIO research centres have maintained substantial research activities with research productivity returning to near normal levels in 2022–2023.
To help ensure business continuity, ARIO research centres maintain an emergency response plan and a business continuity plan that outlines how ARIO research centres will continue operating during an unplanned disruption in services. These plans are updated annually based on feedback from the emergency simulation exercises at ARIO research centres.
Digital delivery: meeting and materials
ARIO has adopted a hybrid approach to ARIO member meetings. This cost-effective approach offers ARIO members the flexibility to engage with each other and with guest presenters in-person and virtually. ARIO continues to strengthen its digital approach in relation to its operations. This has included the expansion of the meeting schedule for ARIO, by adopting 2 specifically virtual interim meetings. Supplementary meetings are routinely held with members when and wherever needed to discuss pressing matters that arise between scheduled meetings, and unless there is a relevant reason otherwise, these meetings are always facilitated in a virtual manner.
Further to the digital delivery of ARIO’s meetings, a move towards restructuring the digital communication between ARIO and the secretariat is underway. An online members SharePoint-based portal has been developed and piloted in late 2024 which will be expanded upon in 2025 onward.
The SharePoint site will be maintained and updated by the secretariat where key materials will be uploaded and housed digitally. Members, or ARIO’s chair, can access the portal at their convenience to retrieve materials, reference historical materials easily and communicate with secretariat.
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 implementation of the strategic plan 2023-2032 and the refinement of its adopted KPI to track and measure the effectiveness and impact of ongoing projects and initiatives. These KPI and measurement methods are key in deepening the analytics and inputs used to support strategic decision making, advice and direction provided by ARIO’s board of directors to help ensure the efforts of the agency are in alignment with, and achieving the objectives set out in its strategic plan and the Grow Ontario strategy.
ARIO’s board of directors continue to be consulted on ARIO’s strategic plan to provide advice and help to ensure alignment with the annual letter of direction, the innovation and technology elements of Grow Ontario strategy and the province’s broader research priorities.
ARIO’s strategic plan’s long-term objectives focus on the main pillars and workstreams of infrastructure, advice, strategic relationships and communications.
Infrastructure pillar: maximizing Ontario’s research and innovation assets
ARIO will continue to provide operational and managerial oversight of the province’s 14 agri-food research properties, comprised of 200+ buildings and 5,600 acres, to help ensure effective and efficient management of the research infrastructure portfolio.
ARIO will continue to oversee and implement strategic infrastructure renewal activities which modernize the research infrastructure and platforms across the province’s portfolio. This includes overseeing the management of financial operations/programs related to the agri-food research properties and the financial reporting, and administration of related transfer payment agreements.
The core investments in the renewal of research infrastructure will maintain the sustainability and competitive advantage of Ontario’s agriculture, food and agribusiness sectors.
Research infrastructure asset management/maintenance: University of Guelph and Vineland Research and Innovation Centre
The University of Guelph, and VRIC independently, provide program delivery, manage, maintain and modernize infrastructure at ARIO’s research centres to address research needs. Additionally, University of Guelph and VRIC implement ARIO’s minor capital program across all ARIO’s properties.
Annual minor capital plans are submitted to ARIO by the University of Guelph and VRIC and approved at the beginning of every fiscal year outlining the priority projects for each research centre. These projects can be completed throughout the fiscal year or can cover multiple fiscal years depending on the size and scope of the project. The University of Guelph and VRIC submit an updated priority list in the third quarter of each year for approval and implementation in the subsequent fiscal year.
Funding for property management services at Vineland is received on a bi-annual basis by way of a delivery agreement between ARIO to VRIC through the Sustainable CAP. Property management services for the remaining 13 research centres are funded under the property management program (PMP) under the alliance agreement.
University of Guelph and VRIC continue to work on several minor capital projects entering 2025. Current projects span all 14 research properties (13 with University of Guelph and Vineland with VRIC), with projects ranging from life-cycle replacement and code compliance, to improving research program capacity.
University of Guelph
The PMP under the alliance agreement supports the day-to-day operations and maintenance, repair and improvements, and to facilitate the use of the 13 ARIO’s research centres. ARIO, University of Guelph and OMAFA have the shared goal of maximizing the utilization of assets available for research at ARIO’s research centres for research and innovation.
In the alliance agreement’s consolidated annual business plan for 2025–2026, the University of Guelph has identified several activities to continue to advance the objectives and desired outcome of the PMP.
Under the minor capital program, University of Guelph will continue to support ARIO by continuing to support the planning, design and proposed construction of the major infrastructure developments occurring under ARIO’s infrastructure strategy, managing the projects in ARIO’s minor capital program, and continuing to support ARIO in the development of an overarching SAMP, and centre specific AMPs, among other activities.
VRIC
ARIO-owned Vineland Research Centre is currently managed by VRIC, an independent not-for-profit, horticultural research and innovation organization established in 2007. VRIC is led by an independent board comprised of leading industry representatives. VRIC’s vision is to “be recognized as Canada’s leader in horticulture research and innovation.” Their resulting value proposition to Canada and the horticultural sector is to strengthen Canadian companies by making them globally competitive through the application of VRIC supported innovation.
VRIC is ARIO’s only property managed outside of the Alliance Agreement. Since April 1, 2023, a 5-year delivery agreement between ARIO and VRIC, funded through Sustainable CAP will provide VRIC $2.4 million annually for capital planning, asset management, and property management activities at Vineland Research Centre. VRIC will continue to support ARIO in developing an AMP for ARIO’s Vineland Research Centre, and a site master capital plan, that will provide ARIO information required to make strategic business decisions and investments across the agency’s portfolio.
Under the minor capital program, VRIC will support ARIO by continuing to support the identification, planning and execution of infrastructure projects that maintain health and safety, code compliance and more, and modernize the research infrastructure platform to meet research needs.
Strategic oversight and policy development: business priorities
Infrastructure strategy
In support of the ministry’s mandate to support growth of the agriculture, food and agribusiness sectors, ARIO plays an important role in renewing the research capacity of the research centre portfolio. ARIO’s infrastructure strategy serves as a roadmap for renewing and revitalizing agri-food research infrastructure and strengthening innovation in Ontario by providing state-of-the-art, research platforms.
Under the first phase of the infrastructure strategy from 2008–present, the agency made considerable progress in revitalizing the research system through targeted investments in new field crops, livestock and greenhouse facilities. In the early phase of the infrastructure strategy, it was recognized that livestock and greenhouse research facilities across the system were operating well past their planned life cycles, expensive to operate and prohibitive to retrofit given the complex nature of their operations and with some of the highest rates of overall research utilization. Investments in new facilities with support from industry improved the capacity and types of research that could be performed to support the competitiveness and sustainability of the sector.
It was also recognized in 2008 that some assets were in such poor shape that a consolidation and disposition strategy was also required as there were many assets no longer fit for research and/or could no longer be meaningfully brought back into service. ARIO’s development of a SAMP will provide key analysis and insights that will further assess and prioritize future infrastructure projects.
The infrastructure strategy will strive to continue to invest in building new state-of-the-art infrastructure pending available funding, and advocate for continued and stable funding which addresses the ongoing research infrastructure needs of the sector, that lead to a competitive and sustainable industry that is a global leader in multiple disciplines of applied agri-food research.
Asset management policy and plan
ARIO continues to work on developing a SAMP. Asset management is an efficient process to guide the:
- planning
- acquisition
- operations
- maintenance
- renewal
- disposition of assets
ARIO has a large, complex and diverse range of infrastructure assets on which it relies to deliver essential research for the agriculture, food and agribusiness sectors.
The application of asset management principles and practices is intended to help ensure a coordinated, consistent, effective and sustainable asset management approach across this diverse set of assets. Effective asset management requires an overarching framework to establish and guide this practice so that it becomes central to strategic, financial and operational decision-making at all levels. This framework along with ARIO’s asset management policy will provide the basis for individual AMPs for each research centre to provide a systematic, repeatable process that will feed into the annual strategic planning process (SPP) as well as meet the future infrastructure strategy needs. This approach aligns with broader government policy for managing provincial assets.
This approach will help enable informed decisions on the maintenance, retrofitting and replacement of core research assets now and in the future. Further development of decision metrics focused on investments with the highest return on investment related to public good, sustainability and competitiveness outcomes for the sector.
In 2024-2025 the agency had looked to develop an ARIO’s infrastructure model, informally termed the “hub and spoke model” for ARIO’s network of research centre: a potential model to centralize research strengths. Upon the agency’s assessment and analysis, this model will be paused until the foreseeable future to prioritize the agency’s work on SAMP and other strategic initiatives. The completion of a SAMP will be key to inform any future development of new approaches, such as ARIO’s hub and spoke model.
ARIO’s financial outlook and plan
In 2024, ARIO began the development of its funding strategy in response to challenges regarding limited funds to achieve the agency’s expanded mandate and direction. This evolved into a financial outlook and plan targeted to achieve the outcomes of the agency’s expanded mandate and strategic plan. The agency’s financial plan requires increased and continued stable provincial funding and industry funding to achieve ARIO’s operational needs, strategic initiatives and capital commitments in support of ARIO’s recently expanded mandate.
In 2025, ARIO’s financial plan may be updated to reflect changes to the agency’s financial outlook. Any changes to ARIO’s financial plan will reflect ARIO’s strategic plan to help ensure alignment between ARIO’s operational/capital deliverables and the agency’s funds.
Capital infrastructure: business priorities
ARIO will continue to implement and complete the construction of new major research infrastructure projects across the research centre portfolio in the upcoming years in line with available funding.
Major capital projects
Ontario Poultry Research and Innovation Centre, Infrastructure Renewal – Elora
In April 2023, ARIO signed a MOU with the poultry industry boards and the University of Guelph to help enable the planning, design and construction of new poultry research facilities at Elora.
These new poultry research facilities would support cutting edge research for the sector for decades to come in the areas of:
- nutrition
- genetics
- sustainability
- economic
- environmental
- animal health and welfare
- housing
The proposed project is meant to support research that will benefit Ontario poultry producers for decades to come. The proposed new centre is to be built at Elora and would replace the current poultry research facilities at Arkell Research Station which are operating well past their planned lifecycle and are costly to operate and difficult to retrofit due to age.
A design sub-committee commenced the advanced design phase with architectural and engineering consultants in September 2024. This phase of the project is anticipated to take 12 to 18 months to complete. ARIO will support the University of Guelph led design and proposed construction phase of the project. Work on a TPA with the University of Guelph is anticipated to be completed in 2025.
The final proposed build cost for the project is still to be determined and will be finalized in fiscal year 2025-2026 through the culmination of the advanced design phase process.
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 IS 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
Based on the previous year’s approval, priority projects and continued highlights for consideration in 2025 onward include:
- Purchase of research equipment for the Ontario Multi-Species and Sheep Research Centres located in Ponsonby
- Planning for sustainability-related projects including designing a water recycling system to process manure streams for the Ontario Livestock Research Centres located in Elora
- Installation of photovoltaic solar energy generation at various facilities at the Elora Research Station
- Sustainable and renewable utility supply is required to manage the increasing station operating costs.
- The facilities at Elora are ready for installation of 170,000 square feet of solar array.
- Phase 1: Swine building and dairy, Phase 2: Beef and feed centre.
- Phase 1 installation begins in early 2025.
- Project cost will be approximately $2 million over 5 years (project commenced in 2023).
- Purchase and installation of new centre and station signage at ARIO locations
- Generator lifecycle repairs and replacements at various research centres (Alma, Bradford, Ponsonby, Simcoe)
- Calf research facilities at the Ponsonby General Animal Facility
- Livestock environmental chambers for emissions and metabolic work at the Ponsonby General Animal Facility
- Continued repair and upgrades to pumphouse and water filtration system at Vineland Research Centre
Additionally, University of Guelph and VRIC’s minor capital programs include the continuation of building condition reports and analyses. These will enable ARIO and property managers’ assessment of facilities and infrastructure across ARIO locations to support planning, funding and decision making. These analyses continue to support the development of ARIO’s SAMP and are integral to the anticipation of large costs over the coming years.
It is continually worth noting the forecasted funding shortfall for the minor capital program. Currently the program is oversubscribed and underfunded, with estimations over a 5-year window detailing over 200 projects to be undertaken with an estimated budget of approximately $50 million, more than double the current allocated budget of $20 million. Projects undertaken continue to follow a strict prioritization which takes place to manage projects to the available budget and help ensure that priority is given to projects that are integral to environmental, health and safety among key prioritization filters.
Advice pillar: provide bold, strategic advice to the minister
ARIO is committed to providing bold, informed and strategic advice to the minister on agricultural research priorities that are in line with government strategic priorities such as Grow Ontario. The chair of ARIO has continued with the practice of providing research-related recommendations to the minister following each of ARIO board of directors’ meetings. This practice creates a direct and frequent means for the provision of research advice from ARIO to the minister and will continue in future years.
The agency will also continue work in close coordination with OMAFA, industry and academia, to proactively identify and prepare for future trends that may impact the Ontario agriculture, food and agribusiness sectors and position ARIO facilities to meet the needs of future research priorities and deliver “Ontario made” solutions, technology and best practices to the sector.
The business priorities in this section provide details on how ARIO will enhance its research systems intelligence and advice for the long-term success of the agri-food research ecosystem and a competitive and sustainable agriculture, food and agribusiness sectors.
Grow Ontario: a provincial agri-food strategy
Innovation and technology adoption have been identified as being key to a secure, safe and resilient supply chain. Grow Ontario outlines a plan to strengthen the agriculture, food and agribusiness supply chains through the development and adoption of innovation and new technologies that strengthen the sector and enhance the competitiveness and create new growth opportunities.
In the Grow Ontario strategy, ARIO has been identified as a key enabler for the development, deployment and adoption of new innovations. In line with Grow Ontario, ARIO will work with OMAFA and engage with industry to:
- Implement the modernized ARIO Act to meet the needs of today’s producer and agribusiness, including proposing innovation and technology as a key area of focus.
- Build and maintain world-class research infrastructure to encourage the use of innovation and enhance the sustainability and profitability of the agriculture, food and agribusiness sectors. This includes work with the sector to maintain and expand the modern research corridor in Elora including the continued proposed progression on the design and build of the new Ontario Poultry Research Centre and start of design and proposed build of the new Feed Innovation Centre.
- Increase strategic research relationships and joint investments with the private sector, including developing programming to support commercialization, piloting, and demonstrations of new technologies and to apply new innovations on farms, in processing facilities and throughout the broader supply chain.
- Strengthen the ongoing research program management and, working with IPON, increase agri-food IP generation and retention.
- Harness data from research centres including publishing data, and when possible, expand the use of data to support business decisions and increase efficiencies within the agriculture, food and agribusiness sectors and value chains.
ARIO’s role in OMAFA’s ministry research priority setting
ARIO is engaged by OMAFA and provides advice to inform OMAFA’s research agenda which provides consolidated documentation of current research and science needs. ARIO supports OMAFA to communicate, explore and jointly invest in research activities to yield new knowledge, skills and solutions for key areas of impact within Ontario agriculture, food and agribusiness sectors and rural communities. Throughout 2025-2028, ARIO will have a greater role in providing strategic advice to the ministry on research priorities and will be an enabler of collaboration on research priorities between academia, government and the industry in the following ways:
- provide insights across agriculture, food and agribusiness sectors by enabling and providing advice on the OMAFA research agenda that aligns with industry and government research priorities
- provide advice on KTT activities such as the communication of research findings for a wide variety of audiences to help ensure relevancy and applicability for on-farm or in- plant daily practices
Modernized ARIO Act and supporting mechanisms
Modernized ARIO Act
ARIO’s legislation – the ARIO Act – was modernized by the Agricultural Research Institute of Ontario Amendment Act, 2024, which passed through the legislature and was proclaimed on July 1, 2024. The Act is an enabling piece of legislation, and the amendments made to it enable the agency to be more responsive to current and future agriculture, food and agribusiness sectors’ needs. The benefits to stakeholders include a greater focus on innovation and helping to ensure Ontario remains a leader in innovative agriculture, food and agribusiness best practices while increasing the sector’s competitiveness and sustainability.
Overall, the new Act allows ARIO to:
- benefit from updated language to reflect the current research environment of the Ontario agri-food sector
- better align with ministry and government initiatives related to innovation such as OMAFA’s Grow Ontario strategy
- play a key role in enabling the Ontario government to achieve the objectives set out in this strategy
Some specific key amendments from to new Act include:
- Updating the agency’s name and definitions which creates a new foundation for a modern agency focused on research and innovation.
- Updating the agency’s mandate, as well as the update of the director of research becoming the managing director, both of which will now allow for a more relevant, broader focus for the agency.
- In the new Act, ARIO maintains key financial and property authorities that allow the agency to make decisions that directly impact on the agriculture, food and agribusiness sectors.
ARIO bylaws
In addition to the listed key amendments from the previous Act to the new Act, there are updated aspects of the governance structure including new mechanisms, such as bylaws. These changes to aspects of the governance structure of the agency allow for effective corporate oversight and effective decision-making. These changes pair well with the added reporting requirements from the recently updated AAD, as well as being timely in coinciding with a timed mandate review. Specifically, the details of the agency’s bylaws include:
- As noted in the new ARIO Act, there is now an agency requirement to have a financial bylaw with respect to borrowing, temporary investing or managing financial risks.
- The allowance for the board of directors to make additional bylaws governing the management of the agency’s affairs, as they see fit, and with the minister’s review and approval.
In 2025, both a governance and financial bylaw are being finalized and brought forth for approval.
ARIO mandate review
ARIO was due to undergo a mandate review, because of the new ARIO Act coming into effect, and as a requirement that the agency undergoes a mandate review every 6 years.
In addition to the standard mandatory mandate review that the agency is required to do, in fall of 2024 ARIO was directed to expand the mandate review to add a focus on operational aspects of ARIO’s governance. Starting in late 2024 and continuing into 2025, procurement has commenced for this expansive mandate review which will be undertaking in 2025. The expanded upcoming mandate review is broken down into 3 parts:
- Standard mandate review: Standard requirement for agencies at least once every 6 years.
- Governance review: Increased review above and beyond standard mandate review. ARIO to have its governance reviewed for potential conflicts and to identify inefficiencies.
- Operational review: Increased review above and beyond standard mandate review. ARIO to opt for a further in-depth review of its operations to identify areas that could undergo improvements.
The timeline for the encapsulated mandate review to commence is Q1 of 2025–2026 with the goal of completion of the reviews for year’s end.
ARIO governance
ARIO members play a key role in providing advice on the agency’s objectives, mandate and strategic directions. ARIO’s membership can be comprised of a minimum of 7 members and a maximum of 15 members appointed by the minister of OMAFA. Members have been appointed from a broad cross section of:
- commodity groups
- business interests
- knowledge
- geographic areas
Members do not represent any organization but hold their position in their own right. At present there are 10 members.
A director from Agriculture and Agri-Food Canada attends certain ARIO meetings and discussions to act as a federal advisor and contribute a federal perspective on research activities across Canada. In fiscal year 2024–2025, 3 members (including the vice-chair) have been reappointed for another 3-year term and there exists an opportunity to seek additional members.
Diversifying and bolstering ARIO’s membership
In the upcoming year, the agency will look to diversify and bolster the agency’s membership through recruitment to fill remaining open spots in the board’s composition, while also aiming to include new representation from candidates that have skill sets and experiences in/with:
- property management/infrastructure
- IEDI concepts
- experience with Indigenous communities
- data and disruptive technology
- robotics
- generative AI
- data analytics
- value added agriculture
- bioproducts
- horticulture
- advanced manufacturing
ARIO has prioritized canvassing for prospective members in public appointments management system (PAMS) to address the memberships’ skill/knowledge gaps. A full candidate list with weighted skills and experiences, in contrast to the agency’s gaps, continues to be updated and will be presented to the Minister’s Office, as requested, for the minister’s consideration. All members are appointed by the minister for a term of up to 3 years and are eligible for reappointment at the minister’s discretion.
ARIO chair succession
After 2 successful terms as chair of ARIO, Dr. Lorne Hepworth’s appointment term expired on January 17, 2025. Strong agency leadership will continue to be required to reflect ARIO's elevated role and profile in the agri-food research and innovation environment. With that, the Honourable Minister Robert J. Flack attended ARIO’s November meeting and announced his appointment of Nevin McDougall as incoming chair successor to Dr. Hepworth. Thanks and well wishes were shared at this meeting with the outgoing chair, a position Dr. Hepworth has held since 2019. His leadership as chair of ARIO and the high-impact research and collaborations that were supported by ARIO during his time as chair, were celebrated and commemorated.
Nevin McDougall began his 3-year term as ARIO’s chair on January 18, 2025. Mr. McDougall’s extensive business leadership knowledge and expertise will help shape the agri-food research landscape for the future. He is an accomplished business executive, entrepreneur and private investor with 30 years of experience in industry-leading, innovative agri-business organizations. He has led business operations for large multi-national companies in both North American and international markets and brings extensive hands-on experience in commercial operations, research and development and executive management. In 2020, Mr. McDougall joined ARIO’s board of directors where he served as a member until his appointment as ARIO chair.
ARIO organizational structure: changes as a result of the modernized ARIO Act
The modernized ARIO Act provided an opportunity to review and update roles within the agency. For example, the role of director of research has been changed to managing director but still holds the authority of the administrator of the agency’s business and affairs.
ARIO’s managing director remains the OMAFA chief administrative office/assistant deputy minister for the Research and Corporate Services Division. The duties and authority of ARIO’s managing director are detailed in the ARIO Act, as well as in the MOU between ARIO and OMAFA.
ARIO’s artificial intelligence (AI) use cases
At present, ARIO does not utilize artificial intelligence (AI). Therefore, as per Section 6.3 of the Ontario Government’s Responsible Use of AI Directive, it does not utilize AI for development or delivery of a program/policy/service, in decision-making, in maintaining records of AI risk management, or in leveraging AI for direct public interactions (such as a chatbot).
ARIO Innovative Breeding Research Program
ARIO receives a proportionate share (one third) of IP revenues arising from research investments through the Alliance Agreement, with the remaining funds retained by the University of Guelph. The IBRP will reinvest these funds into breeding research.
The first intake (Phase 1) of the IBRP was launched to University of Guelph researchers in January 2024 to respond to stakeholder interests and address an existing gap in breeding research funding. The objectives of the program are:
- to address the sustainability and productivity of Ontario’s agriculture, food and agribusiness sectors by developing new tailored plant varieties, livestock and aquaculture traits that support Ontario’s domestic food supply, promote biodiversity and plant and animal health, and help to build resiliency to climate change
- to foster economic growth and competitiveness of the sector by strengthening export market opportunities, enhancing research and innovation capacity, creating new made-in-Ontario intellectual property and generating reinvestment funds for ARIO
Phase 1 of the IBRP had a focus on University of Guelph project applications and awarded 7 projects, totaling an investment of $1.28 million. Announcements of awards were sent out via the OPS Newsroom in September 2024.
The second intake of the program has begun and will close in February 2025. Like the first intake, call is focused on the University of Guelph.
Phase 2 is under development, which will open the program more broadly to other research institutions. An IP revenue sharing policy that applies to research institutions beyond the University of Guelph will be a key piece of this development work, building on the unique provisions of the alliance agreement.
ARIO will work to build out new programming supports in the research management system – the system designed to house records and information pertaining to research projects funded by OMAFA - and apply lessons learned from Phase 1. Ongoing administration of Phase 1 projects will occur over this time.
Safeguarding research and IP
OMAFA, ARIO and the Ministry of the Solicitor General (SOLGEN) are taking steps to safeguard IP and help ensure research security. OMAFA and ARIO have worked with SOLGEN to develop a risk-based assessment process within the alliance agreement to evaluate potential economic and/or geopolitical risks associated with research proposals submitted for government funding and/or support to close any security gaps and mitigate risk.
IEDI
In line with the ministry’s commitment to equity, diversity and inclusion under its Anti-Racism Action Plan (ARAP) (2021), ARIO aims to strengthen IEDI in both the alliance agreement and within the agency.
ARIO continues to deepen its collective understanding of the legacy of the Indian Residential School System in Canada and its continued impacts on the lives of Indigenous Peoples across the country. ARIO remains committed to supporting Ontario’s work as it relates to the National Truth and Reconciliation Commission of Canada’s calls to action.
ARIO works closely with many Indigenous Peoples, communities and organizations, as ARIO’s properties are located across numerous traditional territories and treaty lands. ARIO has open, active and ongoing dialogues with several Indigenous organizations. ARIO continues to engage with Indigenous Peoples, communities and organizations to strengthen meaningful relationships. 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.
In the upcoming year, ARIO will build, strengthen and advance IEDI professional development, values and priorities within the agency in order to inform ARIO’s function and operations. The agency’s business priorities regarding IEDI are as follows:
- Advance the agency’s knowledge capacity and awareness of both historical and present-day challenges and strengthen meaningful and respectful relations with Indigenous Peoples, communities, and organizations. As an ongoing standing item at ARIO member meetings, the agency will commit to learning and discussing opportunities for the agency and its members on government-Indigenous relations.
- Recognize Indigenous leadership and contributions as essential for realizing meaningful Indigenous inclusion and equity. ARIO will take steps to canvas for a new member appointment that serves as ambassador at large for agri-food research and is recognized as a leader within Indigenous communities and organizations.
- Demonstrate ARIO’s ongoing support and leadership to advance IEDI principles in the alliance agreement between OMAFA, University of Guelph and ARIO, particularly as they relate to research infrastructure.
- The agency’s IEDI leadership and work will also serve to advance the ministry’s commitments made under the ARAP.
Strategic relationships pillar: establish relationships that enhance the research ecosystem
The agency continues to advance its work on ARIO strategic relationships to increase collaborations with universities/colleges/research institutions, industry organizations and leverage ARIO’s assets in support of industry-government research and innovation priorities (such as the Grow Ontario strategy) for the benefit of the province and agriculture, food and agribusiness sectors.
ARIO relationships: business profiles
ARIO use and access policy and plan
The agency will support the development of an ARIO use and access policy to inform the development of an ARIO use and access plan in 2025. As stipulated under the alliance agreement, ARIO and University of Guelph are developing a use and access plan for the ARIO research centres to:
- enable increase third-party access to ARIO research centres and enhance research and innovation activities
- clarify use and access provisions, including but not limited to the prioritization, decision making and activities at the research centres by different users
ARIO strategic relationship evaluation framework
The initial ARIO strategic relationships evaluation framework has been developed and used to evaluate the feasibility and risk of unsolicited proposals with a current focus of enhancements to research infrastructure. Strategic relationship activities can include those that support advancing ARIO's vision to enable innovative and transformational research, including enhancing or maximizing resources in a way that ARIO could not accomplish alone.
ARIO’s secretariat is still in the reactive phase of strategic relationships pillar, however in 2025, ARIO will consider undertaking the analysis, planning and implementation required to create the conditions that will enable the agency to move into a more proactive state of pursuing strategic relationships.
Conditions include but are not limited to:
- appropriate resources
- leveraging governance structures and change management
- development of policies
- funding to support
Lakehead University Agricultural Research Stations (LUARS)
The Sustainable CAP TPA between ARIO and Lakehead came into effect on April 1, 2023. The federal government, province and the agency are investing up to $1.65 million over 5 years for research programming, knowledge transfer and the operations and management of LUARS. In the coming year, the agency will continue to provide oversight of the TPA’s activities and monitor the progress of the TPA’s objectives.
This multi-year investment will help improve the viability and yield of crops in Northern Ontario, develop and diversify the agricultural industry, and position it for continued growth. It also builds on many actions to support the resiliency of Ontario’s agri-food supply to help reach the ambitious goals for its expansion set out in the government’s Grow Ontario strategy.
The research at LUARS focuses on areas such as:
- best management practices for Northern Ontario agriculture
- soil health
- northern environmental sustainability
- greenhouse gas emissions
- climate change and the circular economy
- research and knowledge co-developed with Indigenous researchers and communities
In spring 2024, 5 project proposals were approved for funding to support research projects ranging from 1-3 years in priority areas including:
- greenhouse gas emissions
- climate change
- farm viability
- soil health
- agri-business
In 2025–2026, LUARS will continue to support these research projects while working with the other agricultural research stations in Ontario to advance agricultural research and productivity in the province.
In 2025–2026, LUARS will continue to deliver on research, knowledge extension and outreach activities focused on demonstrating and disseminating innovative crop production and soil and nutrient management technologies for area farmers. Knowledge and extension activities will include educational and or training workshops, showcasing research results to farmers at local events, delivering tours and providing farm consultations with area farmers.
Communications pillar: communicate the value of Ontario’s agri-food research
ARIO is implementing a communications plan for the agency with a key goal to increase awareness both internally in OMAFA and externally. With the increased profile of the agency arising from the modernized ARIO Act, a renewed importance will be put on executing the next phases of a communications and branding strategy for ARIO. It will be a goal to help ensure the strategy communicates the objectives of ARIO’s mandate and how the agency works to help ensure competitive agriculture, food and agribusiness sectors through investments in capital intensive research platforms.
Refreshed and permanent centre signage
Building on the project started in previous years, in 2024 ARIO worked with the University of Guelph and VRIC to complete the manufacture and installation of new permanent signage at each of the 13 properties (Ridgetown property was excluded at this time). This will support raising the profile of the agency and champion ARIO’s infrastructure investments in research and innovation across the province. This communications initiative will spotlight the province’s ongoing investment in Ontario’s agriculture, food and agribusiness sectors and bring recognition to the agency through a consistent and clear design to each of ARIO’s research centres (excluding Ridgetown at this time).
Communications and branding strategy development
ARIO is undertaking the development of a communications and brand strategy. The communications strategy is a minister’s priority, as noted in the most recent agency letter of direction.
In 2025, ARIO moves into the second phase of a communications strategy where staff will procure services to develop an ARIO logo, key messaging and a plan for ongoing communications and establishing presence within the sector landscape. Additional ARIO secretariat staff may be required to support and accomplish this ongoing work. Secretariat will be devising a workplan based on the direction of the external consultant and from ARIO’s board of directors.
An external consultant will lead the initiatives for the second phase of the communications strategy. The vendor will build on the work completed in the first phase of the communications and branding strategy that focused on gathering intelligence on the agency’s current communications efforts, stakeholder perspectives on what should be communicated and best methods for communications.
Resource requirements to meet objectives, mandate and strategic directions
ARIO resources and constraints
- ARIO receives annual Transfer Payment funding from OMAFA for the minor capital program and payment in lieu of taxes (PILs).
- ARIO receives revenue from leasing land and buildings within its infrastructure portfolio. This revenue is used to offset and cover the full cost of the rising cost of PILs.
- ARIO receives IP revenues realized over time from research projects supported under the alliance agreement.
- ARIO also leverages the Sustainable CAP wherever possible to support infrastructure projects across the agency’s research centre portfolio.
- ARIO’s major capital funding concluded on March 31, 2023, and the agency has highlighted the need for stable sources of funding to support the continued implementation of the infrastructure strategy. Without some form of continued major capital funding, core infrastructure and renewal projects planned within the strategy will be deferred indefinitely pending the provision of available funding and end of life assets will be wound down without replacement.
- ARIO’s minor capital program $4.5 million budget has not received an increase since its inception in 2008. Coupled with the conclusion of ARIO’s major capital funding in 2023 and rising costs due to inflation, the minor capital program is greatly oversubscribed and is unable to keep up with program demands due to budget constraints, leading to erosion of research capacity as assets age and become inefficient or unable to support research.
- For infrastructure projects, ARIO will continue to seek government funding sources and explore leveraging non-government sources. This may include possible complementary funding sources such as increasing industry contribution to capital projects and further developing ARIO’s strategic relationships for co-funding opportunities to support infrastructure, research and innovation and technology deployment.
Resource requirements
ARIO is in line with the human resource and accommodations strategies that align with OPS policies.
Summary of human resources impacts over the upcoming 3 fiscal years
ARIO has no staff and therefore does not have any employees, union or otherwise, full-time or part-time. Expenses are incurred by OMAFA with and on behalf of ARIO in supporting the administration and operations of agency business.
Key OMAFA staff, primarily from the Research Accountability, Management and Administration unit within the Research and Innovation Branch (RIB) under Research and Corporate Services Division, act as secretariat to ARIO. This secretariat staff handle all administrative duties and support ARIO to effectively operate the agency and will continue to do so for the foreseeable future.
Information technology (IT)/electronic service delivery (ESD) plan
ARIO does not have dedicated IT system or possess other IT platforms of its own, such as for procurement. Therefore, does not have any expenditures for IT systems.
ARIO does not have an official ESD plan or e-service requirement since the agency does not deliver services or require provisions for e-commerce for any ARIO business yet.
Anticipated spending incurred by OMAFRA on behalf of ARIO
| Expenses | 2024–2025 Interim | 2025–2026 Plan | 2026–2027 Outlook | 2027–2028 Outlook |
|---|---|---|---|---|
| Salaries and wages | 1.7465 | 1.7814 | 1.8170 | 1.8534 |
| Transportation and communication | 0.0205 | 0.0205 | 0.0205 | 0.0205 |
| Services | 0.1334 | 0.1334 | 0.1334 | 0.1334 |
| Supplies and equipment | 0.0042 | 0.0042 | 0.0042 | 0.0042 |
| Transfer payments: operating | 4.8438 | 4.1150 | 3.9800 | 3.9800 |
| Transfer payments: capital | 4.5000 | 14.7000 | 20.7000 | 23.2000 |
| Other transactions | 0 | 0 | 0 | 0 |
| Less: recoveries | 0 | 0 | 0 | 0 |
| Total expenses | 11.2485 | 20.75450 | 26.6552 | 29.1915 |
Transfer payments: interim and outlookfootnote 32
| Program name | 2024–2025 Interim | 2025–2026 Plan | 2026–2027 Outlook | 2027–2028 Outlook |
|---|---|---|---|---|
| Grants in lieu of taxes | 1.2500 | 1.2500 | 1.2500 | 1.2500 |
| Sustainable CAP: federal — research | 3.5938 | 2.8650 | 2.7300 | 2.7300 |
| Operating transfer payment total | 4.8438 | 4.1150 | 3.9800 | 3.9800 |
| Program name | 2024–2025 Interim | 2025–2026 Plan | 2026–2027 Outlook | 2027–2028 Outlook |
|---|---|---|---|---|
| Research infrastructure maintenance and repairs | 4.5000 | 9.1500 | 9.4500 | 9.2000 |
| Research infrastructure renewal | 0 | 5.5500 | 11.2500 | 14.0000 |
| Capital transfer payment total | 4.5000 | 14.7000 | 20.7000 | 23.2000 |
Risk identification, assessment and mitigation strategies
Implementation of ARIO’s infrastructure strategy will continue to require significant funding over the next several years to help ensure the renewal of core research platforms can be completed and operated in a manner that maintains the sustainability and competitiveness of the Ontario agriculture, food and agribusiness sectors.
ARIO faces significant budget constraints which present a high level of risk that the agency will not be able to meet its core mandate commitment to modernize Ontario’s agri-food research infrastructure. The agency experienced a significant reduction to its capital budget of $42.5 million in fiscal years 2019–2020 and 2025–2026.
This has greatly reduced the ability of the agency to complete or undertake capital projects within ARIO’s infrastructure strategy and key objectives under ARIO’s strategic plan.
As a result of financial limitations, current capital projects under design or construction continue to be reviewed to decide whether funding gaps (for example, Ontario Poultry Research Centre) will require the projects to be scaled back, deferred in some fashion or have their overall scope reduced to help ensure ARIO can maintain affordability. While the previous years’ erosion of buying power related to rising inflation for materials and labour costs has started to cool and return to somewhat sustainable levels, these costs remain higher than when many projects were initially proposed and designed. ARIO’s secretariat will continue to work with the ministry, as well as central agencies, in submission of annual updates and refinements to the strategy captured in the ministry’s SPP.
The ability to maintain financial commitments for the multi-year nature of capital infrastructure construction projects could be greatly impacted by changes in government priorities and changes in government funding, neither of which can be predicted with complete confidence.
Without restored levels of sustainable investment in the coming years, Ontario’s agri-food research system risks falling into obsolescence. This could prompt the departure of agri-food research capacity from the province and could impact the province’s ability to attract leading researchers to conduct their work and develop or advance research, technology and other forms of IP for the sector. Once capacity is lost, research investment by the Ontario agri-food sector could be diverted elsewhere and lead to research being conducted outside the province. This risks leaving critical research to be deferred to Ontario's competitors and pushing Ontario to become more reliant on research, technology development and innovation from abroad.
ARIO will seek to mitigate these significant risks on the horizon by seeking financial commitments from the Ministry and from industry to support capital build projects which benefit the sector while also seeking to coordinate closely with central agencies regarding innovative ways to fund infrastructure.
Full details of ARIO’s risk management plan can be found in Appendix B.
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 secretariat services) are paid from OMAFA’s budget. The current estimated cost to provide the secretariat functions to ARIO is approximately $1.9 million annually
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. These per diems follow Treasury Board Guidelines for Agencies, Board and Commissions and are paid out of ministry funds. Details are provided to members in ARIO member’s handbook and adheres to the Travel, Meals and Hospitality Expenses Directive for government accountability.
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 29th 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 $126 million as of March 31, 2024.
A forecasted statement of operations showing projected revenues and expenses is included in Appendix A.
Performance measures
The performance measures and achievements outlined in this section are in accordance with the current performance measures framework outlined in ARIO’s MOU and includes the focus of ARIO’s infrastructure strategy and the development of the endorsed plan for targets, measures and key performance indicators for ARIO’s strategic plan.
ARIO’s strategic measures and KPIs
The establishment of KPI for ARIO’s strategic plan will 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 KPI 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.
In 2025–2026, ARIO’s KPI can enable the agency to assess the state of ongoing initiatives such as:
- ARIO’s financial outlook and plan
- the further development of the SAMP
- the continued work on ARIO’s infrastructure upgrades and improvements
- the continued work on ARIO’s major capital builds (Ontario Poultry Research Centre)
- strengthening collaborations and increasing strategic relationships
These KPI 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 KPI include the 3 buckets:
- operational (short-term 2023–2025)
- maximizing assets
- securing short term funding to address critical needs to maintain viability of ARIO’s assets and operations
- transformational (medium-term 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
- strategic (long-term 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
Alliance PMP and KPI
ARIO’s properties have been used as a platform for conducting research programming to address the ministry’s mandate. The University of Guelph helps ARIO fully realize the potential of most properties owned by the agency. In addition, the University of Guelph also has unique expertise to manage and maintain properties and research facilities. The following KPI may demonstrate the University of Guelph’s achievement of the PMP outcomes and objectives.
Program objectives
- Facilitate the use of ARIO’s properties and University of Guelph facilities as platforms for research and innovation, including the promotion and formation of collaborations among the agri-food and rural research community, the University of Guelph, the agriculture, food and agribusiness sectors, to the benefit of all of Ontario’s regions.
- Carry out operations, maintenance, repairs and improvements for each of ARIO’s properties in a manner that is cost effective, environmentally responsible, demonstrates economic value for the Province of Ontario and in a manner consistent with and in furtherance of the contemplated use.
Program activities
- Develop the use and access plan to increase utilization of ARIO’s properties, including establishing the procedures by which third party users’ access ARIO’s properties.
- Develop an AMP and plan under the terms of the alliance agreement.
- Continue to identify cost efficiencies and revenue generation activities to support a stable and adequate financial base from which to continue meeting program objectives, outcomes and KPI.
- Continue to roll out the research centre naming and branding strategy.
- Continue to implement the PMP IEDI action plan, which includes:
- carrying out IEDI training for staff
- implementing land acknowledgements for each of ARIO’s properties (for example, at meetings and gatherings, signage at facility entrances)
- determining how to utilize existing IEDI infrastructure policies to inform major and minor capital projects
ARIO property use and capacity is measured by the annual utilization rate for each ARIO property. The utilization rate is calculated by adding research utilization to the research preparation requirements and dividing the total by the capacity of the research centre. The research preparation requirement accounts for the need for crop rotation, replacement animals or cycle time in space-based animal facilities. The University of Guelph continues to work with ARIO, researchers and other stakeholders to find opportunities to increase utilization, where capacity exists. Using capital and operational improvements as a lever, discussions continue assessing barriers and capitalizing on opportunities to explore increased centre utilization.
Outcome 2024–2027footnote 34 : Research centre utilization
Performance measures 2024–2027: Level of utilization for crop and animal centres
Targets 2024–2027: Crop utilization target of 78%. Animal utilization target of 45%.
2023–2024 achievements (from University of Guelph’s consolidated annual report)
The livestock research centres had an average utilization rate of 53.9% in 2023–2024, which is 5% higher than the 2022–2023 rate and 20% above the target of 45%. Utilization rates in the livestock research centres saw improvement across most locations, with some exceptions, and as a result, an overall improvement in the average utilization rate and a surpassing of target goal. This increase was largely due to strong increases in animal utilizations in the number of active trials and animals per trial, the utilization of the new facilities (Ontario Swine Research Centre) in transitioning continued research trials while also starting new ones and expanding existing and new trials into recently renovated facilities across the research centre portfolio.
Utilization rates are typically lower for livestock compared to crops, as they are limited to the nature of the resident herd and available housing types or spaces and cannot be easily scaled to increase replication rates. In addition, there may be specific time frames where research is occurring on a closed herd (such as during/after calving) which limits the ability to bring in additional research opportunities even though space might be available.
The crops research centres had an average utilization rate of 73.2% in 2023–2024, which is a slight increase from the previous year, but still 6% below the target of 78%. The crops research centres saw notable changes in utilization driven by positive and negative impacts. Notable decreases in utilization were due to the winding up of certain research programs, retirement of researchers and the transition of certain research programs re-situating to non-ARIO locations. Notable increases in utilization were due to returns to normal activity levels at key centres following a previous year of reduced planting because of poor weather, as well as rebounds in research activities at other centres based on new, relocated or renewed research initiatives.
Crop utilization rates tend to be higher than livestock rates as crop trials can more easily expand to increase replications or the number of varieties being grown. Utilization at the crops research centres also tends to be more stable as field-based trials are more easily scalable to fill available areas. User coordination meetings, in the case of Ontario Crops Research Centres, will focus on building capacity, efficiency, sustaining capacity with updated equipment and support infrastructure such as drainage, processing and storage capacity, and staff support facilities. Usage will be discussed during the collaborative development of the use and access plan for ARIO’s properties.
Outcome 2024-2027footnote 34 : Increased third party investment/collaboration in research and development infrastructure
Performance measures 2024-2027: Level of funding from non-OMAFA sources that goes toward investment in infrastructure
Targets 2024-2027: Average 20% of capital investment to come from non-provincial government sources.
2023–2024 achievements (from University of Guelph’s consolidated annual report)
The University of Guelph continued to support OMAFA and ARIO and the poultry industry boards in the development of the proposed new Ontario Poultry Research Centre at the Elora Research Station. A MOU between the 4 poultry industry boards, the University of Guelph, ARIO and OMAFA was executed in May 2023, allowing project planning and design to formally commence.
The minister of OMAFA previously announced $13.5 million in funding for the new centre with $3.375 million in contributions expected from the poultry industry boards. As with previous major livestock research developments, and under the terms of the MOU, the University of Guelph is leading a multi-stakeholder building committee to oversee the project. A TPA between the University of Guelph and ARIO for the proposed design and construction of the facility is expected, but in the interim, ARIO has provided a $250,000 grant from Sustainable CAP to support ongoing planning activities.
A design consultant team was selected following a public tender process and will begin working with the project stakeholders in 2024–2025. It is expected that design work will continue through 2024–2025 with proposed construction commencing early the following year.
Industry has committed 20% of the capital project costs for the proposed new Ontario Poultry Research Centre build and this continues to demonstrate the shared investment from industry and non-government sources.
Outcome 2024–2027footnote 34 : Use and access plan and policy developed and implemented for ARIO properties
Performance measures 2024–2027: Collaboratively developing the use and access plan to increase utilization of the ARIO properties
Targets 2024–2027: Determining the procedures for third party users to access the ARIO properties
2023–2024 achievements (from University of Guelph’s consolidated annual report)
The University of Guelph created a list of 18 different scenarios for types of work at ARIO research centres (toward the development of a use and access plan). Several meetings were held to discuss the scenarios in 2023–2024. The process will continue in 2024–2025. A Tier 5 policy was also developed to identify and record non-research activities based at the ARIO research centres, such as crop performance and registration trials. In addition, discussions are underway regarding non-University of Guelph lead applicants utilizing the ARIO research centres. Policy development on this initiative will occur in 2024–2025.
Outcome 2024–2027footnote 34 : IEDI
Performance measures 2024–2027: As developed in alignment with the alliance agreement’s IEDI principles
Targets 2024-2027: N/A
2023–2024 achievements (from University of Guelph’s consolidated annual report)
The alliance agreement includes an IEDI statement and a reconciliation statement which demonstrates the signatories’ (OMAFA, University of Guelph and ARIO) commitment to action in advancing IEDI in alliance agreement programs and program delivery. In the previous year, an IEDI working group was established and worked to actively support the identification and implementation of IEDI initiatives in the alliance agreement, spending 2023–2024 on strengthening IEDI in broad alliance agreement programming, processes and decision-making.
Over 2023–2024, the IEDI statement and the reconciliation statement were reviewed, along with the work completed by the alliance agreement IEDI advisory group. The IEDI working group also developed alliance agreement-wide IEDI commitments. The next step was designing activities to effectively deliver on these commitments. An IEDI action plan was prepared for the regulatory training program and was approved by the executive committee on March 8, 2024. Implementation of identified initiatives will commence in 2024–2025. The main components of the IEDI action plan include:
- developing land acknowledgements (and/or appropriate Indigenous acknowledgements) for each of the research centres, suitable for both in-class (location specific) and on-line instruction
- evaluating accessibility of education and training curriculum and teaching facilities
- identifying and implementing IEDI education and training materials and resources for employees of ARIO’s research centres (management, staff and research technicians) that are available through university sources (such as diversity and human rights, human resources, and open education)
- identifying existing IEDI policies (provincial and university level) for infrastructure and determine how to use them to apply/inform major and minor capital builds creating an IEDI resource directory
Appendices
Appendix A: financial position
Pro forma statement of operations: ARIO 2024–2025 strategic processing plan — forecast
Revenue
| Revenue | 2023–2024 audited actuals $ | 2024–2025 interim $ | 2025–2026 plan $ | 2026–2027 outlook $ |
|---|---|---|---|---|
| Grants — provincial (includes Sustainable CAP) | 4,442,000 | 3,368,840 | 2,865,000 | 2,730,000 |
| Grants — federal | 0 | 0 | 0 | 0 |
| Grants — other | 0 | 0 | 0 | 0 |
| Intellectual property | 631,869 | 650,000 | 650,000 | 650,000 |
| Total research revenues | 5,073,869 | 4,018,840 | 3,515,000 | 3,380,000 |
| Revenue | 2023–2024 audited actuals $ | 2024–2025 interim $ | 2025–2026 plan $ | 2026–2027 outlook $ |
|---|---|---|---|---|
| Grants — provincial — minor capital | 4,500,000 | 4,500,000 | 9,150,000 | 9,450,000 |
| Grants — provincial — payments in lieu of taxes | 1,250,000 | 1,250,000 | 1,250,000 | 1,250,000 |
| Grants — other — payments in lieu of taxes | 153,107 | 140,000 | 140,000 | 140,000 |
| Rental income — provincial | 283,300 | 325,000 | 325,000 | 325,000 |
| Rental income — private industry | 144,311 | 184,937 | 185,000 | 185,000 |
| Amortization of DCC — provincial | 3,187,246 | 3,078,996 | 3,090,846 | 3,090,846 |
| Amortization of DCC — non-provincial | 361,705 | 484,768 | 487,730 | 487,730 |
| Total property revenues | 9,879,669 | 9,963,226 | 14,628,576 | 14,928,576 |
| Revenue | 2023–2024 audited actuals $ | 2024–2025 interim $ | 2025–2026 plan $ | 2026–2027 outlook $ |
|---|---|---|---|---|
| Gain on disposal of TCA | 0 | 0 | 0 | 0 |
| Realized gain (loss) on sale of investment | (114,393) | 0 | 0 | 0 |
| Investment income | 1,099,330 | 1,142,995 | 934,514 | 397,895 |
| Miscellanious | 65,771 | 0 | 0 | 0 |
| Total other revenues | 1,050,708 | 1,142,995 | 934,514 | 397,895 |
| Total revenues (A) | 16,004,246 | 15,125,060 | 19,078,090 | 18,706,471 |
Expenditures
| Expenditures | 2023–2024 audited actuals $ | 2024–2025 interim $ | 2025–2026 plan $ | 2026–2027 outlook $ |
|---|---|---|---|---|
| Research project/program | 36,566 | 15,000 | 5,000 | 0 |
| LUARS | 0 | 0 | 0 | 0 |
| Intellectual property | 28,167 | 30,000 | 30,000 | 30,000 |
| Total research expenditures | 64,733 | 45,000 | 35,000 | 30,000 |
| Expenditures | 2023–2024 audited actuals $ | 2024–2025 interim $ | 2025–2026 plan $ | 2026–2027 outlook $ |
|---|---|---|---|---|
| Payments in lieu of taxes | 1,246,562 | 1,250,000 | 1,400,000 | 1,400,000 |
| Minor capital | 7,886,821 | 7,868,840 | 12,015,000 | 12,180,000 |
| Operations and maintenance | 179,207 | 220,000 | 220,000 | 220,000 |
| Impairment of TCA | 0 | 0 | 0 | 0 |
| Accretion expense - AROs | 123,701 | 130,547 | 64,735 | 21,128 |
| Amortization of AROs | 70,148 | 38,366 | 11,377 | 11,377 |
| Amortization of capital assets | 3,548,951 | 3,563,764 | 3,578,576 | 3,578,576 |
| Total property expenditures | 13,055,390 | 13,071,517 | 17,289,687 | 17,411,081 |
| Expenditures | 2023–2024 audited actuals $ | 2024–2025 interim $ | 2025–2026 plan $ | 2026–2027 outlook $ |
|---|---|---|---|---|
| Loss on disposal of TCA | 0 | 0 | 0 | 0 |
| Total expenditures (B) | 13,120,123 | 13,116,517 | 17,324,687 | 17,441,081 |
| Net surplus (deficit) (A - B) | 2,884,123 | 2,008,544 | 1,753,403 | 1,265,390 |
Appendix B: ARIO risk management plan summary
The risk rating has been calculated using an index combining individual scores for likelihood, strategic impact, reputational impact, financial impact, speed of onset and risk tolerance.
Strategic direction, objectives and mandate
Risk category: Strategic
Risk rating: Low
Risk statement
Strategic direction, objectives, mandate not clearly understood by external stakeholders and some internal ministry staff.
Existing risk mitigation activities
Engagement between external stakeholders and discussions with ARIO members continue to take place as needed. ARIO has procured the services of a communications consultant to develop a communications and outreach strategy for the agency.
ARIO continues to take steps to advance the communications/brand strategy to increase the prominence of the agency and promote the agency’s efforts (internally and externally) to enable modern, relevant agri-food research and innovation for the agri-food value chain provincially, nationally, and globally to attract top research talent, collaborative partners and investment.
ARIO has developed and revised communications products to communicate its direction and activities and ensures the continuity of ARIO's communications plans, including external and internal communications materials. Communications plans for major initiatives (such as beef build, swine build, agronomy builds and disposition activities which profile consolidation activities that lead to a more efficient and modern research system) have been developed and/or refined for all relevant stakeholders in coordination with the ministry’s Communications Branch. These products will continue to evolve and be informed by the future development of ARIO’s communications/branding strategy.
Rationale for prioritization
ARIO’s infrastructure strategy has raised the profile, awareness and understanding of ARIO.
This also aligns with ARIO’s 10-year strategic plan to support the infrastructure in place to enable agriculture and food research for the province.
Risk management plan
- Risk option chosen: accept
- Rationale for choosing option: risk is low and is mitigated on an ongoing basis
Inadequate funding
Risk category: Strategic
Risk rating: High
Risk statement
Inadequate funding for programs, capital infrastructure and required new and ongoing compliance/legislative/directive costs pertaining to the ownership of real property, such as land and building assets. Projected financial shortfall fiscal year 2026–2027. Without adequate funding ARIO will be required to wind down some research centres and activities in fiscal year 2025–2026 and is in danger of needing to cancel approved major capital projects that are currently underway and underfunded.
Existing risk mitigation activities
ARIO provides advice to the ministry on program, operational and infrastructure resource requirements, and allocations (including operational and infrastructure). Decisions on allocations are the responsibility of the ministry.
Program and operational
Continue to identify allocation needs through the annual SPP budgeting process, leverage additional funds from other levels of government, industry partners and academia. Constraints have resulted in some reprofiling of projects in the out years and deferring some projects indefinitely. ARIO has made efforts to make the organization, operation and oversight of the research infrastructure system as lean, effective and efficient as possible to maximize assets and value for money. This includes consolidation and disposition of assets, developing an asset management policy and plans for ARIO infrastructure and pursuing sustainability projects that reduce operating costs.
Infrastructure
Continue to identify capital allocation needs through the annual SPP budgeting process, leverage additional funds from other levels of government (for example, Sustainable CAP), industry partners and academia.
In 2024, ARIO began the development of its funding strategy as a response to challenges regarding limited funds to achieve the agency’s expanded mandate and direction. This evolved into developed a financial outlook and plan targeted and designed to deliver on the agency’s expanded mandate and strategic plan. The agency’s financial plan requires increased and continued stable provincial funding to achieve ARIO’s operational needs, strategic initiatives, and capital commitments in support ARIO’s recently expanded mandate.
In 2025, ARIO’s financial plan may be updated to reflect changes to the agency’s financial outlook. Any changes to ARIO’s financial plan will be informed by ARIO’s strategic plan to help ensure alignment between ARIO’s operational/capital deliverables and the agency’s funds.
Rationale for prioritization
Key component of long-term research program effectiveness. Infrastructure owned by Ontario government enables critical ag and food research needed to address locally relevant (provincial) challenges and opportunities for the sector and its economic sustainability and growth.
Risk management plan
- Risk option chosen: accept
- Rationale for choosing option: Continue to inform and provide rationale to senior management and central agencies through annual SPP budgeting process on the need to continue investment in the strategy in order to help ensure the sector remains competitive and sustainable. In order to meet budget challenges ARIO has undertaken a strict prioritization of projects given available funds. A key mitigation step has been to defer projects with lower priority and to identify other sources of funding where possible.
Financial shortfall
Risk category: Strategic
Risk rating: High
Risk statement
ARIO has insufficient funds to meet operational needs, capital commitments and growing strategic initiatives.
With an expanded mandate and a funding challenge, ARIO is at a critical crossroads. Continued status quo provincial funding poses a high financial risk for ARIO. The current allocation will not enable the agency to effectively manage ARIO’s assets, meet current/growing capital commitments (such as poultry build), operational obligations (such as compliance and safety) as well as growing strategic initiatives.
Existing risk mitigation activities
ARIO’s secretariat developed a targeted financial plan (over 3 fiscal years) to address the agency's shortfall, operational needs, capital commitments and growing strategic initiatives. The minister was briefed on ARIO's financial outlook and plan in September. ARIO secretariat’s financial plan includes informing the ministry's SPP (fall 2024-2025). Pending the results of this submission, alternative mitigation strategies are being developed that will include the winding down of research projects at research sites, mothballing of facility operations (except of basic outdoor upkeep) and more.
Rationale for prioritization
Expanded mandate following ARIO’s Act Modernization and implementation of OMAFA's Grow Ontario strategy.
Risk management plan
- Risk option chosen: accept
- Rationale for choosing option: To inform and provide rationale to senior management and central agencies through annual SPP budgeting process on the need to continue investment adequate resourcing to help ensure the agency can deliver on ARIO's expanded mandate and Grow Ontario goals. To meet budget challenges ARIO has undertaken a strict prioritization of projects/activities and human resourcing. A key mitigation step has been to defer projects with lower priority.
Unique agency role and structure
Risk category: Accountability/governance
Risk rating: Low
Risk statement
Central agencies' understanding of ARIO agency’s role and structure.
Existing risk mitigation activities
Ongoing discussions with central agency staff to communicate the role of ministry staff as agency secretariat, ARIO mandate, governance structures and relationship with ministry.
The recent amending of the ARIO Act has seen a refresh in the agency's mandate, structure and legal authorities. This work has now triggered the updating of the MOU, the creation of agency financial and governance bylaws and will require a fulsome mandate review (mandate, structure and operational processes to be considered as part of scope). This work will continue to help inform TBS and the Ministry of Finance about the nuances and complexities of ARIO. Continued engagement with TBS regarding ARIO's role and structure supports the centres' knowledge regarding the applicability of provincial directives to ARIO and ensuring the agency's alignment with enterprise-wide objectives.
Rationale for prioritization
Continue to work with and educate central agency staff on ARIO.
Risk management plan
- Risk option chosen: accept
- Rationale for choosing option: Mitigation is continual and ongoing.
Agency membership
Risk category: Accountability/governance
Risk rating: Low
Risk statement
Inability to maintain sufficient and qualified and diverse number of members, as well as timely appointments to fill vacancies in membership.
Existing risk mitigation activities
ARIO membership appointments are at the sole discretion of the minister. As directed ARIO’s board, ARIO’s secretariat has completed the recruitment process of reviewing profiles of prospective ARIO member candidates from the PAMS to address the noted skill/knowledge gaps and has drafted the proposed plan for new membership next steps. This proposal, along with the top candidates will be shared with the Minister’s Office at their convenience for consideration.
Most of the board have been recently reappointed to the agency, with the earliest member’s term ending in 2026, providing the agency some stability in membership for the upcoming years. Two new members have been appointed in 2025, to also offset the retiring of a long-term member earlier that year. ARIO’s secretariat is continuing the recruitment process of reviewing profiles of prospective ARIO member candidates to address the noted skill/knowledge gaps.
ARIO's chair appointment is at the sole discretion of the minister. ARIO’s new chair’s appointment began on January 18, 2025. Strong leadership will be required to reflect ARIO's elevated role and profile in the agri-food research and innovation environment, and secretariat will support the new chair during their transition period from former member to current chair.
Rationale for prioritization
Some difficulty in addressing priorities due to gaps in membership expertise/skills.
Risk management plan
- Risk option chosen: mitigate
- Rationale for choosing option: Continued focused effort to identify good candidates that fill gaps in the membership. New members are required to fill out a skills matrix to identify gaps in skills in current members and to seek those skills in future members.
Liability in ARIO agreements
Risk category: Accountability/governance
Risk rating: Low
Risk statement
Inherent government liability in ARIO agreements (leases, research funding) allowing exposure to legal actions.
Existing risk mitigation activities
Legal review of all agreements before they are finalized to help ensure liabilities are minimized where possible.
ARIO’s secretariat works with Legal Services Branch (LSB) on all leases, TPA, MOUs and more. Secretariat have been working with LSB on developing standardized lease templates as well as TPAs where possible. Section 13 of the modernized ARIO Act outlines the liability of the corporation.
Rationale for prioritization
ARIO’s secretariat works closely with LSB on all agreements such as leases and transfer payments agreements.
Risk management plan
- Risk option chosen: accept
- Rationale for choosing option: Mitigation is continual and ongoing through extensive reliance on LSB and Business Planning and Financial Management Branch on all agreements.
Property and operational shortfalls
Risk category: Operational
Risk rating: High
Risk statement
Underfunding results in the inability to operate and manage the infrastructure portfolio effectively and efficiently. This is further exacerbated by cost escalation in impacting the minor capital program and the alliance agreement because of inflation.
All the ARIO owned properties are operated and managed under agreements with third parties. The University of Guelph operates and manages all the properties except the Vineland Research Station which is operated and managed by the VRIC.
Existing risk mitigation activities
To address PMP deficits, the University of Guelph and OMAFA have implemented a short-term strategy, including re-allocating funds within the program budget, and transferring monies from the alliance agreement exigency fund (for example, interest earned on funds advanced and on reserve). Work continues to identify longer term solutions to reduce costs and increase revenues.
The alliance agreement between ARIO, University of Guelph and OMAFA, and the management agreement between ARIO and VRIC, details all roles and responsibilities of each party for the operation, management and maintenance of the properties. Under the minor capital program, the University of Guelph and VRIC submit annual prioritized minor capital plans that detail needed property maintenance and repairs. Decisions on funding are the responsibility of ARIO.
There exists a very strong working relationship between ARIO and University of Guelph, and ARIO and VRIC and OMAFA. Notice requirements in the licence agreement, management agreement and alliance agreement provide ARIO adequate time to contract a replacement property manager, if required.
With respect to risk of cost escalation, the agency will continue to seek an increased allocation of funding from the province or other sources to address the rapid rate of inflation to effectively and efficiently operation and manage the infrastructure portfolio. Additionally, ARIO has made efforts to make the organization, operation and oversight of the research infrastructure system as lean, effective and efficient as possible to maximize assets and value for money. This includes consolidation and disposition of assets, developing an asset management policy and plans for ARIO infrastructure, and pursuing sustainability projects that reduce operating costs.
Rationale for prioritization
Ongoing work with service providers (University of Guelph and VRIC). Issues identified and dealt with as they arise. Excellent working relationship with both University of Guelph and VRIC who both have extensive experience and continue to provide excellent professional site operations and management.
Risk management plan
- Risk option chosen: accept
- Rationale for choosing option: Issues are identified and managed on an ongoing daily basis with almost 10 years of experience managing the portfolio with no significant issues to date.
Lack of agency insurance
Risk category: Operational
Risk rating: High
Risk statement
Potential damage or destruction of property. Insufficient self-insurance fund to protect against catastrophic property damage/loss to ARIO’s property portfolio.
Existing risk mitigation activities
ARIO, as an agency of the government, is included in the government of Ontario’s self-insurance scheme for general liability only. ARIO is not covered for property or premises damage/loss and must either self-insure through its own funds or take out a policy to cover property and premises.
ARIO strives to maintain a reserve for any potential issues, but recent cutbacks to ARIO transfers has forced the agency to utilize funds held for self-insurance to meet TPA commitments and operations. Since the 2019–2020 fiscal year, ARIO has not maintained an adequate level of funds to self-insure the property and premises across its portfolio of stations.
Leases and occupancy agreements require occupants (including the University of Guelph) to carry adequate insurance. Occupants are required to include ARIO and the government as additional insurers on their policies.
ARIO to identify emergency funds through the annual SPP budgeting process for loss from all perils/catastrophic property damage.
Rationale for prioritization
As per discussions with Ministry of Public and Business Service Delivery and Procurement's (MPBSD) Insurance and Risk Branch, ARIO is heavily exposed to liability stemming from property loss and damage due to its lack of adequate reserves.
MPBSD has indicated that ARIO should maintain a reserve of funds at an appropriate level to handle extreme losses or damage to property and premises (5% to 10%) of portfolio value or take out an insurance policy through an available vendor of record provided through MPBSD.
The value of the portfolio is $100 million. However, the replacement value of some individual assets such as the Ontario Dairy Research Centre are estimated at $30 million alone.
Risk management plan
- Risk option chosen: accept
- Rationale for choosing option: Property risks (property loss and damage) are not adequately covered across ARIO’s portfolio given recent reductions of transfers from OMAFA to ARIO. The quote obtained by ARIO for insurance coverage from Marsh Canada Ltd. in Q3 2020–2021. The quoted premium for ARIO is $990,000/year with a $1 million deductible for replacement value insurance that would cover incidents of catastrophic property damage/loss for ARIO’s highest value building assets.
Potential investment loss
Risk category: Other
Risk rating: Low
Risk statement
Potential financial losses incurred on investments.
Existing risk mitigation activities
Funds are invested with a conservative strategy in a manner consistent with the Financial Administration Act to safeguard from capital losses of public funds. Investment management firm (RBC as of April 2015) fees are based on the value of investments, so the firm has incentive to maximize value and returns and avoid losses.
Rationale for prioritization
Secretariat meet regularly with financial investment management service provider.
Risk management plan
- Risk option chosen: Mitigate
- Rationale for choosing option: ARIO's investment plan is very conservative and focused on capital preservation, liquidity and return (in that order). Investments are managed by a contracted management firm with oversight from RIB staff on behalf of ARIO.
Agency research security
Risk category: Information technology and infrastructure
Risk rating: Low
Risk statement
Research security.
Existing risk mitigation activities
University of Guelph places high importance on safeguarding research (for example, by providing information/guidance on research security, mitigating risks through active monitoring and auditing and strong governance). As stipulated in the alliance agreement, a research security policy has been developed and will be applied to research projects from May 1, 2024, and onwards. Related internal processes to support the policy continue to be developed. RIB may re-engage SOLGEN to support in reviewing research proposals.
Signatories will work to develop a use and access policy and plan that will consider provisions for research security including third party access. Physical safety measures including security cameras, updated alarm systems and more modern wireless networks are being added to various research properties to improve surveillance and connectivity. When applying for alliance agreement projects, researchers are asked to consider the research security of their projects when developing their project proposal in accordance with the research security policy noted above.
Rationale for prioritization
The alliance agreement's research security provisions are advanced relative to other TPAs in the OPS. Under article 18 in the alliance agreement, the University of Guelph will perform a research security assessment prior to awarding research and innovation funds or agreeing to allow activities that are not funded with research and innovation funds to be carried out at an ARIO Property.
The University of Guelph has also developed research security management policies and processes which are now in place to assist researchers in identifying, mitigating and managing economic, geopolitical, institutional and biosecurity research security risks which may be associated with an assessable proposed research project, and will assist researchers in becoming aware of and trained in the use of such policies and processes.
Risk management plan
- Risk option chosen: accept
- Rationale for choosing option: The risk is low. In the alliance agreement, the signatories have worked together to establish processes and policies for research security and develop and implement a training plan related to research security. RIB may re-engage SOLGEN to support in reviewing research proposals. Signatories will work to develop a use and access policy and plan that will consider provisions for research security including third party access.
Government realty directive
Risk category: Accountability/governance
Risk rating: Low
Risk statement
Non-compliance with section 5.2.5 of the Realty Directive.
Existing risk mitigation activities
ARIO's agreements with the University of Guelph (alliance agreement - a TPA between ARIO, OMAFA and University of Guelph), and VRIC (several agreements including the Sustainable CAP) grant those parties the right to use and occupy ARIO’s properties in accordance with ARIO and OMAFA's mandate and to further the contemplated use of the research properties (research and innovation for the development, growth and vitality of Ontario's agri-food sector and rural economic development).
These agreements allow ARIO's research properties to be operated by long-standing and experiences parties that have sustained capacity that the ministry and ARIO rely on (for example, technicians that have critical expertise and knowledge) as well as historic and long-standing relationships that increases knowledge for ARIO, the ministry (including tacit knowledge) and the agri-food sector. The agreements have strong controls to mitigate risk and help ensure the University of Guelph and VRIC delivers on the activities, obligations and responsibilities of these agreements.
RIB and ARIO recently received direction on the best course of action regarding the applicability of the Realty Directive to ARIO and agreements with the University of Guelph and VRIC.
Rationale for prioritization
OMAFA has had agreements with University of Guelph since 1997, and VRIC since 2007 to manage ARIO’s properties for the purpose of fulfilling ARIO’s and the ministry's mandates. Since that time, the University of Guelph or VRIC have not been required to pay fair market rent as property manager of 14 ARIO research stations, as such a requirement would be cost prohibitive and would negate the benefits of those agreements.
The current risk impact is low as the agency maintains long-standing agreements with University of Guelph and VRIC. However, the risk impact may change (including but not limited to financial impact) if the agency is not granted an exemption.
Risk management plan:
- Risk option chosen: mitigate
Appendix C: 2025-2026 annual letter of direction
Dear Dr. Hepworth,
I am pleased to share our government's 2025-2026 priorities for Agricultural Research and Innovation Ontario (ARIO).
Agencies are a part of government and are expected to act in the best interests of the people of Ontario and ensure that they provide value for money to taxpayers. Agencies are also required to adhere to government policies and directives.
Per the requirements of the Agencies and Appointments Directive, agencies are required to align goals, objectives and strategic direction with our government's priorities and direction. As chair, you must ensure that ARIO's business plan demonstrates the agency's plans in fulfilling the expectations and government priorities below and that progress and achievements are reported through your annual report. Compliance with these requirements is reported to Treasury Board/Management Board of Cabinet annually.
This letter sets out my expectations for 2025–2026 that ARIO is innovative, sustainable and accountable through the following direction:
Innovative
- Simplify client/customer interactions.
- Expand and optimize digital service offerings.
- Improve client/customer satisfaction.
Sustainable
- Strengthen public service delivery by optimizing organizational capacity and directing existing resources to priority areas.
- Use public resources efficiently and operate within agency's financial allocations.
Accountable
- Develop and report on outcome-focused performance measures to effectively monitor and measure performance.
- Protect individual, business or organization data by actively managing data and cybersecurity and reporting artificial intelligence uses.
- Report all high risks including effective mitigation plans.
- Align hybrid work policies with the OPS.
- Develop and encourage diversity and inclusion initiatives by promoting an equitable, inclusive, accessible, anti-racist and diverse workplace.
These are the government-wide commitments for board-governed provincial agencies. Please refer to the following section for further details of each priority and the accompanying performance measures that can be utilised if measurements are not currently in place.
I am also sharing several priorities specific to ARIO:
Major capital builds
- Continue to engage with the poultry industry boards, the University of Guelph and contracted service providers to further the planning, design and construction of new poultry research facilities at Elora.
- Continue the planning for the funding, design and build of the Ontario Feed Innovation Centre: a micro scale research feed mill initiative at Elora research centre to replace the aging and obsolete Arkell research feed mill.
- Work with industry, the University of Guelph and the ministry to establish a plan as it relates to the Superior Plant Upgrading & Distribution Unit in New Liskeard.
Property ownership, management and sustainable infrastructure projects
- Continue to provide value for money in efficiently owning and managing the Province of Ontario's agri-food research facilities and property.
- Continue to provide effective long-term oversight and management of ARIO's physical assets through advancing the development of ARIO's asset management policy and comprehensive AMP.
- Continue to prioritize high-impact projects and initiatives through the minor capital program to enhance and upgrade research centre infrastructure.
- Actively engage with the agri-food industry, academia and innovation experts to evaluate future research infrastructure needs.
- Continue to pursue the revitalization of the province's agri-food research infrastructure necessary to support innovative research and the long-term sustainability and growth of the agri-food sector by developing state of the art, integrated research infrastructure capacity supported by shared funding models and partnerships between industry, private sector, and government.
- Actively increase the pursuit of strategic relationships in support of industry government research and innovation priorities and modernizing research infrastructure.
- Continue development, investment and implementation of sustainable and green technologies throughout ARIO's infrastructure including technologies and cost/carbon saving measures such as water conservation and re-circulation systems as well as energy and power conservation and generation systems.
Strategic planning and advice
- Continue to support the objectives of the Grow Ontario strategy by enabling adoption of innovation within the sector.
- Continue to provide strategic advice to the minister and the ministry on research priorities and programs that contribute to prosperous, competitive and sustainable agricultural and food sectors in Ontario.
- Engage with industry, academia and innovation experts to help inform the development of research priorities, including but not limited to through roundtables, committees, working groups or research days at the stations.
- Continue to implement ARIO's vision to enable high impact transformational research and innovation.
- Continue to evaluate opportunities for research and innovation in agriculture and food, including but not limited to OMAFA's research priorities, northern agriculture, genomics, robotics and automation, technology development and food processing.
- Implement strategies and programs that will improve the strategic management of ARIO's interests in intellectual property and commercialization, including the expansion of the Innovative Breeding Research Program that supports plant and animal breeding research in Ontario, as well as opportunities to establish commercialization and innovation hubs at the research stations.
- Continue to work in close coordination with OMAFA, industry and academia, to proactively identify and prepare for future trends that may impact the Ontario agri-food sectors and position ARIO facilities to meet the needs of emerging research priorities and deliver Ontario-made solutions, technology and best practices to the sector.
ARIO governance
- Provide recommendations of new member candidates that could expand and complement the current board of directors' skillsets and bolster new perspectives and engagement opportunities for ARIO.
- Undertake a mandate review of the agency that will focus on governance, operational effectiveness, sustainability and efficiency to ensure that ARIO is well-positioned to effectively manage the finance, infrastructure, strategy and communications of the agency for the long-term.
- Establish member and non-member committees to further the objectives of the Grow Ontario strategy, the agency and government.
- As per the direction of TBS and resulting from the recent modernization of the ARIO Act complete and receive approval for an amended MOU and finalized finance and governance bylaws for the agency.
Communications
- Begin to implement an optimized communications plan for the agency with a key goal to increase awareness of the agency, both internally in government and externally.
- Actively promote the research activities and network of research stations within the agri-food sector.
- Continue to strengthen ARIO's relationships with the University of Guelph, Vineland Research and Innovation Centre (Vineland) and other parties to communicate:
- the impact of Ontario's agri-food research
- research results to key agri-food clients in a format that is useable and accessible
- Implement the next phase of the strategy to brand ARIO and increase the prominence and awareness of the agency within the agri-food sector, centering on the modernized ARIO Act and elevated profile of the agency as prominent features.
Strengthen collaborations, increase strategic relationships and leverage assets
- Increase collaboration with universities/colleges/research institutions, industry organizations including Indigenous peoples, communities, private sector 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.
- Continue work on ARIO's use and access policy plan with the University of Guelph to enhance and enable third party use of ARIO's research centres.
- Directly engage with the sector for the purpose of expanding innovation demonstrations and technology deployment through strategic relationships at the ARIO research centres.
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 David Hagarty, assistant deputy minister, Policy Division.
Sincerely,
Hon. Lisa M. Thompson
Minister of Agriculture, Food and Rural Affairs
cc: Gregory Wootton, assistant deputy minister, Research and Corporate Services Division
Footnotes
- footnote[1] Back to paragraph Agriculture and Agri-Food Canada, Sustainable Canadian Agricultural Partnership Overview, 2024.
- footnote[2] Back to paragraph Canada and the Sustainable Development Goals.
- footnote[3] Back to paragraph Bank of Canada Monetary Policy Report, October 2024.
- footnote[4] Back to paragraph Ontario Economic Outlook and Fiscal Review, Fall 2024.
- footnote[5] Back to paragraph Farmonaut. "Canada-US Trade Tensions: How Tariffs Impact Canadian Agriculture and Economy."
- footnote[6] Back to paragraph Canadian Federation of Agriculture. "Canada-US Agriculture."
- footnote[7] Back to paragraph Ontario Federation of Agriculture. "Farmers Prepare for Possible Tariffs on Agri-Food Exports to U.S."
- footnote[8] Back to paragraph Canada’s growth prospects brighten in 2025 but not without challenge
- footnote[9] Back to paragraph Government of Canada. "2024 Fall Economic Statement."
- footnote[10] Back to paragraph Government of Canada. "Ontario Agri-Food Research Initiative: Funding Projects That Boost Production and Increase Trade Opportunities for Home-Grown Products."
- footnote[11] Back to paragraph International Monetary Fund, World Economic Outlook, October 2024.
- footnote[12] Back to paragraph Statistics Canada, Consumer Price Index Analysis, November 2024.
- footnote[13] Back to paragraph Food prices could jump by up to 5% in 2025, and researchers say Loonie is partly to blame.
- footnote[14] Back to paragraph Ontario's Long-Term Report on the Economy 2024-2046.
- footnote[15] Back to paragraph Ministry of Labour, Immigration, Training and Skills Development.
- footnote[16] Back to paragraph AI in the Food Industry.
- footnote[17] Back to paragraph Governments Investing in Initiatives to Attract and Retain Agri-Food Labour.
- footnote[18] Back to paragraph A Canadian perspective on how businesses can navigate geopolitical risk.
- footnote[19] Back to paragraph 2025 investing outlook: Volatility is name of the game amid tariff and tech bubble threats.
- footnote[20] Back to paragraph Growing Ontario’s Agriculture and Food Export Markets.
- footnote[21] Back to paragraph Poll finds climate change, severe weather top issue for farmers across Canada.
- footnote[22] Back to paragraph National Agroclimate Risk Report.
- footnote[23] Back to paragraph The GDP costs of climate change for Canada.
- footnote[24] Back to paragraph Intellectual Property Ontario (IPON) 2024-2027 Business Plan.
- footnote[25] Back to paragraph Postsecondary research and intellectual property.
- footnote[26] Back to paragraph Government of Canada. National IP Strategy.
- footnote[27] Back to paragraph National Security Guidelines for Research Partnerships.
- footnote[28] Back to paragraph Navigating geopolitical risks in research.
- footnote[29] Back to paragraph Growing Ontario Solutions 2023-2024
- footnote[30] Back to paragraph Includes expenses incurred with or on behalf of ARIO, such as transfer payments to the government organization and administrative expenses incurred by the ministry on behalf of ARIO.
- footnote[31] Back to paragraph Salaries and wages figures represent the estimated costs to OMAFA for the administration and operations support provided to ARIO on a fiscal year basis.
- footnote[32] Back to paragraph These amounts include proposed funding to increase capital base for ARIO. Not all values have been formally approved.
- footnote[33] Back to paragraph Forecasting of $1.9 million is approximate and could change.
- footnote[34] Back to paragraph This data is consolidated from the 2023–2024 alliance agreement consolidated annual report. The following year’s data is not yet available.
- footnote[35] Back to paragraph Forecasted amounts from 2025–2026 and beyond are not yet approved.