Market Diversification and Trade Resiliency Initiative

Overview

Ontario’s Market Diversification and Trade Resiliency Initiative (the Initiative) provides funding opportunities to primary producers and processors to support market diversification and resiliency within domestic and international markets, with emphasis on new and growing markets. The Initiative helps attract and encourage the business investment needed to create jobs in Ontario’s agriculture sector.

Funding for the Initiative comes from the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a 5-year (2023 to 2028) investment by federal, provincial and territorial governments. Up to $20 million has been allocated for the Initiative.

Important dates

Application intake will open on February 17, 2026.

Application intake will close on March 17, 2026, at 11:59 p.m. ET.

Eligibility

Refer to the Initiative guidelines and schedules for detailed requirements.

Applicants

You must have fewer than 500 employees at the project location and be one of the following:

• a primary producer
• a processor (brand owner is ineligible for Project Category: Implementation of Equipment and Technology)
• doing aquaculture, but only to the extent you are undertaking international marketing activities (ineligible for Project Category: Implementation of Equipment and Technology)
• a fish or seafood processor, but only to the extent you are undertaking international marketing activities (ineligible for Project Category: Implementation of Equipment and Technology)

Projects

Projects must be within 1 of the 3 project categories. Refer to the schedules for information relevant to each specific project category.

• Schedule 1: Project Category – Market Development and Diversification Implementation Planning
• Schedule 2: Project Category – Implement Market Development and Diversification
• Schedule 3: Project Category – Implementation of Equipment and Technology

You can only submit 1 application in each project category under the Initiative.

Funding

Project Category – Market Development and Diversification Implementation Planning

For not exclusively United States-focused projects, you are eligible to receive 35% of eligible costs up to a maximum of $50,000.

For exclusively United States-focused projects, you are eligible to receive 25% of eligible costs up to a maximum of $50,000.

Project Category – Implement Market Development and Diversification

For not exclusively United States-focused projects, you are eligible to receive 35% of eligible costs up to a maximum of $70,000.

For exclusively United States-focused projects, you are eligible to receive 25% of eligible costs up to a maximum of $50,000.

Project Category – Implementation of Equipment and Technology

You are eligible to receive 25% of eligible costs up to a maximum of $499,999.

Stacking

You cannot submit an application for a project if you have already received funding for that project through Sustainable CAP.

You can apply for and receive other government or third-party funding if the other programs allow stacking.

If you have received funding for the project through other sources, the total assistance provided from all funding sources cannot be greater than 100% of the total eligible costs.

All funding for a project, including from additional sources, must be listed on the application form.

How to apply

1. Download and read the Initiative guidelines.
2. Download and complete the application form. Each project category has a unique application form.
3. Gather the required documents.
4. Submit the application and required documents to SustainableCAP1@ontario.ca

Required documents

In addition to your application form, for all project categories, you must provide written quotes from third parties detailing the proposed eligible costs for the project.

If you’re applying to Project Category – Implement Market Development and Diversification (Schedule 2), or Project Category – Implement Technology and Equipment (Schedule 3), you must also submit a standalone business analysis or market development plan that outlines the rationale for the project. This must include:

• market research and analysis that supports entry/expansion into the identified market(s), and/or the development of the new product
• the analysis and methodology used to determine the business impacts such as potential job creation/retention and potential sales increase
• the implementation strategy

After you apply

After you submit your application, we will send you an acknowledgement email within 5 business days.

We will begin reviewing all applications after the intake period closes.

We will assess completed applications against eligibility and merit criteria.

If your application is ineligible, you will be notified via email.

Selection process

Projects by eligible applicants will be evaluated based on the extent to which the project category-specific requirements and merit criteria are met.

If you are not approved

We will email you about the decision. You may request a debrief from ministry staff.

If you are approved

We will email you about the decision. We will also email you an approval letter.

You will need to meet several obligations including:

• signing the approval letter
• registering with Transfer Payment Ontario
• registering to Supply Ontario to receive payments
• submitting claim(s) and final report

Refer to the Initiative guidelines for detailed instructions.