The Rural Roundup - March 2025
Spotlight on rural Canada: Resilience being tested again
Now more than ever, after hearing directly from stakeholders and Canadians through conversations and submissions, it’s essential for us to take a moment to reflect on our shared vision for rural Canada’s economic prosperity.
Every day, we are reminded that rural Canadians are looking, both personally and through their organizations, for more focus and action on their concerns. These include everything from immigration and workforce integration to connectivity and taxation policies, especially regarding the climate impact on rural communities. One stakeholder summed it up well, saying, “We need a new approach to economic development in Canada.”
Since the launch of the Rural Prosperity Group, we have witnessed the resilience and ingenuity of rural communities. With great uncertainty on the North American trade front, that resilience will again be tested.
Our mission is to highlight the critical importance of rural Canada and the rural way of life to our country’s economic growth and prosperity. We are doing this by:
Bringing together diverse voices to deepen ties and foster dialogue on the unique considerations for rural communities. Our reach currently spans Canadians living in rural Canada and public policy stakeholders at urban and rural boardroom tables. We are meeting Canadians where they are, whether that’s at a Royal Canadian Legion on Fogo Island, Nfld., at a Cercle des fermières in Québec, at a dairy farm in Steinbach, Man., or at a small business in downtown Vancouver, as well as online.
Sharing rural Canadian stories and successes and promoting your initiatives through diverse and effective communication channels.
Asking for commitments that ensure no future regulations or policy initiatives that harm rural Canada, even inadvertently, will be implemented, and that any existing policies and regulations be urgently reviewed through a rural lens, so that they truly support the rural way of life and create real opportunities.
Currently we are focused on reaching out, through our lobbyist, to political parties and transition teams, ahead of the upcoming election to raise awareness about the need to include a focus on rural in their platforms. With Finance Canada Budget 2025 consultations underway, we’re also finalizing a submission and will engage further.
In the coming weeks, you’ll also see more from Rural Prosperity Group as we implement a digital campaign to hear from Canadians and meet them where they are online. Expect our evolved communication to reflect a natural shift post-diagnostique phase of focusing on challenges and gaps, to an equal amount of shedding light on the promise of rural Canada. We will engage Canadians on those opportunities, including sharing the input received to date.
Additionally, as things unfold, and keeping in mind the intricacies of our North American markets, we remain vigilant about any engagement outside Canada. We welcome any thoughts on this at any time: info@ruralprosperity.ca.
This Rural Roundup will keep you and all stakeholders informed of our activities and highlight rural communities' needs and contributions. We would love to hear from you so that we can share your story and the stories of your neighbours. Please send your ideas to us.
You are central to these efforts and we look forward to collaborating!
Honorary vice-chair Dennis Dawson pictured with honorary chair Candice Bergen at the NAC just after launching the Rural Prosperity Group.
Honorary chair meets with stakeholders
The Hon. Candice Bergen, honorary chair of the Rural Prosperity Group, met with agriculture stakeholders in Ottawa last month to outline the group’s work and promote rural Canada, which she said is “the jewel of our nation.”
She celebrated the dairy sector’s leadership on rural prosperity, innovation and job creation, and discussed the need to both protect the “rural way of life” and educate urban Canadians about the value rural prosperity brings to not only their own lives but the success of organizations as well.
Separately, in a widely-attended Forest Products Association of Canada event in the fall, Bergen was awarded the Jim Carr Forest Community Champion Award for her commitment to Canada's natural resources and rural way of life over the course of her career.
“It was a privilege to work for Canadians from coast to coast and see the important work they were doing to help make our country a better place. This was especially true in our rural and remote communities, where our forestry sector is often the key driver of economic growth,” she said.
During a panel discussion that she moderated at the same event, Bergen said, “There's a real lack of services that has a direct effect on rural Canadians and how we can operate our businesses and grow.”
She and honorary vice-chair Dennis Dawson are committed to bringing urgency to the issues through public communication.
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Primer on way forward on looming U.S. tariffs: ‘Quite simply, bad business’
As of Monday morning, Donald Trump's tariff plans remain unpredictable.
An executive order issued today lays the groundwork to remove the rule that allows certain low-value shipments from Canada to enter the U.S. without paying tariffs.
On March 4, he has threatened a 25 per cent tariff on most Canadian goods, though delays are possible, and experts expect either another postponement or a smaller tariff.
On March 12, a 25 per cent tariff on steel and aluminum is likely, impacting Canada significantly. The scope remains unclear, and enforcement could extend to car parts and construction materials. A delay is also possible.
By April 1, the U.S. will review trade measures, potentially leading to global minimum tariffs or targeted retaliatory tariffs against certain countries, including Canada.
On April 2, Trump has threatened 25 per cent tariffs on auto, semiconductor, pharmaceutical, and possibly lumber imports, which could harm Canada’s economy.
Later in spring 2025, Trump may use these tariffs as leverage to renegotiate CUSMA, demanding more access to Canada’s dairy market, changes to digital trade policies, and auto trade restrictions. If Canada resists, Trump could threaten to withdraw from the agreement.
The U.S. has justified these measures as necessary to combat illegal immigration and drug trafficking.
In response, Canadian Prime Minister Justin Trudeau has pledged to implement “dollar-for-dollar, matching tariffs” on $155 billion worth of U.S. goods if the U.S. tariffs proceed. The initial phase imposes 25 per cent tariffs on $30 billion of American imports, with plans to extend these tariffs to the remaining $125 billion within three weeks. This stance reflects Canada's commitment to defending its economic interests amid the escalating trade dispute.
While many others are, the rural agricultural sector is particularly vulnerable. Canadian farmers export approximately 60 per cent of their products to the U.S., and industry leaders are concerned about the potential impact of tariffs on cash flow and profitability.
Chris Davison, president of the Canola Council of Canada, noted that farmers are likely to be affected across all aspects of their operations. “Certainly, farmers will unfortunately feel the impact,” he said. “We anticipate it will touch virtually all facets of their operations.”
Additionally, U.S. refiners are exploring alternatives to Canadian oil in anticipation of the tariffs, which could disrupt existing supply chains and impact operations.
The potential for a full-scale trade war looms, with significant implications for industries and consumers in both countries. Diplomatic efforts are ongoing to resolve the disputes and prevent even further escalation, however, the last thing our rural innovators need is continued uncertainty.
Keith Currie, president of the Canadian Federation of Agriculture, says the tariffs will have negative consequences on both sides of the border. “Our agriculture sectors rely on each other, not just to sell products to one another but also to provide essential inputs to grow food such as fertilizer.”
Our competitors around the world are the only winners in a trade dispute between Canada and the U.S., Currie said, adding, “Tariffs are quite simply, bad business.”
In a joint-statement, the Canadian Cattle Association and the National Cattle Feeders' Association said the beef industry would seek an exemption from the blanket tariffs, and will be advocating for relief support for impacted producers.
Rural Canada is the backbone of our economy. It includes workers in the following industries:
Innovative sectors
Agriculture
Forestry
Natural resources
Telecommunications
Vital infrastructure and supply chains
Technology (delivering healthcare to rural and remote communities) and more!
Rural Canada is a key creator of wealth and opportunity for the entire country and its industries are major drivers of exports to the U.S. Any increase in tariffs or trade restrictions would almost certainly result in reduced market access, lower prices for Canadian products and job losses in rural industries. This will directly impact farm incomes, disrupt supply chains and hurt small businesses that rely on exports to sustain their operations.
POV: Forest group head champions made-in-Canada essentials
By Derek Nighbor
President and CEO, Forest Products Association of Canada (FPAC)
While being immediately felt in rural and northern Canada, the current U.S. tariff threat facing Canada’s forest sector has serious implications for the rest of the country. It’s a wake-up call to urgently improve competitiveness and infrastructure, and to diversify export markets — in tandem with our efforts in this new world to evolve our shared economic and security partnership with our American neighbours.
Forestry has long been a cornerstone of the Canadian and North American economies. But it’s not the $87 billion-plus in revenue it generates annually that tells the story. Forestry’s economic, environmental and social benefits come from the more than 200,000 Canadians directly employed in the sector, living and working in hundreds of communities across the country.
In these uncertain times, it would serve us to remember the lessons we learned during the pandemic about the importance of domestic supply chains and the need to ensure we can provide essential products to all Canadians. We must prioritize growing our natural resource industries sustainably, so we are not depending on other countries for basic goods and supplies — and we can reliably generate economic wealth for Canadian families.
Canada’s forestry communities are on the front line providing innovative “made-in-Canada” essentials that can address our most basic needs, including affordable housing, biofuel, paper packaging, diapers and other hygiene products. It’s high time that we recognize these workers and the contributions they make to the rest of Canada by ensuring we have a clear national economic plan that reflects their unique local conditions.
Today, and throughout our history, forestry forms a backbone for Canada by keeping hundreds of communities alive and leading the world. Rural Canadians deserve a clear economic growth plan that can make a positive difference in the lives of the people who call these communities home.
Showcase your leadership and get your message out
If you have a policy issue that requires a comprehensive deep dive, we would love to hear about it and showcase it to our broader communication audience. Reach out today to partner with us through content contributions or advertising in The Rural Roundup and more. Email us at info@ruralprosperity.ca to set up a time to chat.
Stability in #cdnpoli even more sorely needed today
This has been a tumultuous number of months for Canadian federal politics and the ground continues to shift rapidly. Former Bank of Canada and Bank of England governor Mark Carney has taken the lead in the race to succeed Prime Minister Justin Trudeau as Liberal Party leader, following Trudeau's resignation announcement earlier this year. Some would say Carney’s decision to enter the race has revived the outlook for the Liberals in the upcoming election, which could be announced as early as March.
Polls now show that the Liberals, who only weeks ago looked like no-hopers to retain power, have narrowed the once-massive gap with the Conservative Party of Canada to a thin single-digit advantage. Most observers believe this might not have happened without the sense of urgency created by U.S. President Donald Trump and his tariff plan — not to mention his casual comments about annexing Canada — however the picture in Canadian federal politics has changed completely, though it certainly remains chaotic.
As you know, Parliament is prorogued, with lawmakers not due to return until March 24 and as such the state of our government’s finances is in suspended animation. Lawmakers have been deprived of an opportunity to debate the government’s fiscal update which showed a $62 billion federal deficit. Leaders of all political parties, including Pierre Poilievre, are quickly recalibrating messages and platforms to respond to the hardball tactics coming out of Washington.
“Canada’s next Prime Minister must hit the ground running and be laser-focused on strengthening the Canada-U.S. trade relationship,” Canadian Chamber of Commerce President and CEO Candace Laing has said. “Any business owner knows the dangers of staying in the red year after year. Any homeowner knows that mortgages shouldn’t get bigger over time. The lack of fiscal accountability … combined with a government in total disarray, creates profound instability for Canadian businesses and families at a time when we need the opposite.”
For rural Canadians, there were several areas touched on in the FES that still need to be clarified. Prior to proroguing parliament, the Liberals promised to invest in the Local Food Infrastructure Fund, expand the Canada Carbon Rebate rural top-up, prioritize a new Community Banking Initiative and support the conversion of the Belledune Generating Station to biomass.
These demonstrate a clear recognition of the challenges faced by communities across Canada. The deficit will have a detrimental effect on rural Canada, particularly now that tensions with the U.S. may require a significant shift in how Canadian policymakers prioritize spending, for instance, toward meeting NATO targets or supporting workers whose jobs have been affected by any trade war.
“Canada’s business community remains extremely worried about the government’s lack of a robust plan to tackle the expanding deficit and revive economic prosperity,” said Laing. “From manufacturers to farmers, a strained relationship with the U.S. will be felt across every sector.”
A former senior trade official said the timing of the tariff threat is “very unfortunate” for Canada as our own political landscape is unstable. “We're really not in the kind of position we would like to be in terms of having a clear, coherent strategy going forward, given all that uncertainty,” the official said at a recent conference. “All of these issues, whether it's the issues at the border, trade, deficit concerns, unfair trade practices, all of this is eventually going to turn into some kind of negotiation, and then it's a question of how we can best deal with that.”
The official emphasized the need to have a plan rather than starting off too early by making concessions. “Others have said we may need to make certain obligations with respect to our resources,” he said. “And I'm sure you've heard, as I have, as some have said, we need to put dairy on the table. I think that is completely misreading the situation with the U.S. It was very clear from the negotiation we had with the last Trump administration that resulted in the CUSMA that if you offer the U.S. concessions too early, they're not going to have much value at all. The U.S. is simply going to accept them.”
It is now vital that the government demonstrates the stability and commitment required to deliver tangible results for all Canadians.
Liberal Party leadership candidates Karina Gould, Frank Baylis, Chrystia Freeland and Mark Carney, pictured in Montreal at the English debate on Feb. 25.
Liberal leadership candidates give shout-out to rural Canada
Two Liberal leadership candidates raised the importance of rural Canada during the English debate on Feb. 25 in Montreal and another did so during their campaign launch.
In response to a question about productivity in the face of tariff threats from the U.S., Chrystia Freeland noted that rural Canada is a key piece of the puzzle.
“I do want to talk about a part of the economy where there have been huge leaps in productivity, which is central to Canada's resilience and economic strength, particularly as we face up to Donald Trump, and that is rural Canada,” she said. Having herself grown up on a farm in Alberta, she said she knows how farmers “are an important source of strength when it comes to this standoff with the U.S.”
Karina Gould said she supports rural Canada’s economies and as prime minister would revive Bill C-282 to protect supply management. “It was a piece of legislation that unfortunately died when we prorogued parliament, but I think it is imperative that we protect our supply-managed sectors,” she said. “One of the frustrations that [audience member] Roland had with us as a government is that we haven't spoken enough about sectors in rural Canada, whether that is mining, whether that is energy, whether that is agriculture, whether that is forestry.”
At Freeland’s campaign launch in Toronto, Liberal Quebec MP and caucus chair Stéphane Lauzon remarked that he’s worked with Freeland over the last nine years and knows she’s engaged with all Canadians “in big cities and small towns and rural regions.”
“We know rural regions are the heart of our economy and our identity,” he said, adding that Freeland understands that all regions in Canada need to be supported.
When she took the stage, Freeland spoke about growing up in rural Alberta. “While Toronto is now my home, I was born in Peace River, Alta., a place in the rural part of our country that Stéphane Lauzon spoke about so movingly. My dad's a farmer and a small-town lawyer and my mother was a Ukrainian immigrant who arrived here with her family as a child,” she said, noting she owes a lot to her parents’ hard work.
At his launch in Edmonton, Mark Carney spoke about some of the issues facing Canadians, including in rural Canada. “Our times are anything but ordinary. The system is not working as it should and it's not working as it could,” he said, adding many Canadians are falling behind, unable to find family doctors or afford their home. “We're living through the two biggest technological revolutions since they split the atom. Our climate is changing in ways that threaten livelihoods from Fort Mac to Fort Smith.”
Many hurdles, but rural and small-town businesses remain optimistic according to StatsCan survey
Businesses in Canada’s rural and small-town (RST) areas faced a complex economic landscape in the fourth quarter of 2024, according to a new analysis based on the Canadian Survey on Business Conditions. Key challenges included rising input costs, labour shortages and increasing debt burdens, which also impacted functional urban areas. Despite these hurdles, a majority of businesses expressed optimism about their 12-month prospects.
Report highlights divergence between rural and northern areas
The State of Rural Canada 2024 report by the Canadian Rural Revitalization Foundation highlights challenges and opportunities in rural, remote and northern communities. While some areas face population decline, others are growing through immigration and returning residents. Traditional industries are evolving, and new sectors like renewable energy and technology offer growth potential.
Rural areas face climate risks, aging infrastructure and limited services, but northern communities show resilience, according to the report, which pointed to partnerships with Indigenous communities, digital innovation, sustainable economies and local food systems. It calls for a National Rural Strategy, climate-resilient infrastructure, better healthcare and Indigenous-led initiatives to build a stronger, more prosperous rural Canada.
Despite challenges, there are opportunities to leverage digital technologies, create sustainable economic models and strengthen local food systems, the report says.
Immigration cuts mean rural communities will age faster
Canada's Immigration Levels Plan for 2025-2027, released in October 2024, forecasts a 0.2 per cent population decline in 2025 and 2026, followed by a return to 0.8 per cent growth in 2027. During this period, the population aged 65 and older is expected to increase by nearly three per cent annually.
The working-age population (ages 15-64) could shrink by over 450,000 between late 2024 and late 2026, the report said. In contrast, international immigration and non-permanent residents in this age group grew by more than one million in 2024 — about the size of the entire population of Nova Scotia.
Rural communities are aging faster than urban areas, as they lack the influx of new residents from immigration.
“The odds of immigrants moving into rural Canada have actually decreased over time rather than increased,” said Lindsay Finlay, a PhD candidate in sociology at Western University and the lead author of The Places We'll Go: Rural Migration in Canada. “It's the kind of things like a lack of transportation, a lack of employment, academic opportunities. There's also the risk of potential discrimination in these areas.”
Exploring ways to attract more immigrants, invest in workforce training and leverage technology to mitigate labour shortages and sustain economic growth need to be priorities.
Fitbits for cows? How technology can propel rural economies
Karen is a dairy farmer who uses cutting-edge technology, which she likens to a “Fitbit for cows,” to monitor their health and productivity. This technology allows her to track each cow’s activity, food intake and milk production, helping her make informed, data-driven decisions.
“I can honestly say I probably know more about my individual cows than my kids on some days,” she joked. “We track all the components in their milk, their feed intake. And we’re evaluating the data, asking are we doing the best job possible? Is there anything that stands out that we can tweak to make it that much better for the cows?”
A mother of four, she and her husband now run their 400-cow operation supported by eight employees. She fosters a compassionate workplace and takes pride in producing high-quality, nutritious food. “It’s amazing what is actually happening on dairy farms, using data-driven decisions and making the best animal care choices,” she said.
CGI’s AI innovations save lives in rural, remote communities
The inaugural podcast episode of I4 Insights explores how cutting-edge technology is transforming healthcare, particularly for rural and remote communities.
Joy Ardz from CGI highlighted an innovative project originally designed for astronauts that has direct applications for underserved populations: “We developed a smart container that had the ability to check in, guide the patient through this whole interactive experience of self-testing, telemedicine, medical education, and treatment.”
This technology could revolutionize healthcare access in isolated regions, including Indigenous communities.
Andrew Doner, CGI’s VP of AI and Analytics, discussed AI’s role in diagnostics and efficiency, citing a collaboration with Helsinki University that uses AI to detect brain hemorrhages days or weeks before they become critical: “By having the AI solution complement the experts, we’re now able to diagnose and begin to treat those issues in advance.”
Joshua McCutcheon, a senior program consultant from Alberta Health Services asked: “I'm curious, what does this mean for Alberta? What are the next steps and how could we bring some of this work to start affecting our rural communities or individuals who are looking to access their information in a more meaningful way to them.”
Ardz highlighted the need for a human-centred, design-thinking approach in Alberta’s healthcare policy. She compared healthcare data flow to an angiogram, explaining that blockages in patient information and access can be just as harmful as physical health conditions.
Doner reinforced the urgency of adopting AI responsibly to handle growing healthcare demands, stating, “It’s time to be bold, be brave, be courageous and get after it with a bias to action.”
The episode also covered CGI’s work with Indigenous communities, using AI-powered risk assessments for fire safety and virtual assistants to improve healthcare accessibility. These initiatives demonstrate how technology can bridge gaps in rural healthcare, streamline operations, and improve patient outcomes. “These kinds of technologies allow us to bring world-class expertise into communities that otherwise wouldn’t have access,” Doner said.
Listen to the full podcast here.
We want to hear from you
Do you have news, analysis or upcoming events related to rural Canada to share? Are you doing interesting and noteworthy things to unleash rural Canada’s potential? We’d be happy to showcase you or your organization. Please get in touch: info@ruralprosperity.ca.