Ottawa-The high level of government red tape poses a threat to the next generation taking over Canada’s agriculture industry, says the Canadian Federation of Independent Business (CFIB).

As it is, nearly seven in 10 agri-businesses are advising the next generation not to run a business due to the level of red tape, CFIB said.

“If governments don't act, the consequences will ripple through Canada’s entire food chain as agri-businesses continue to hang on by a thread.”

Excessive regulations are discouraging entrepreneurship, undermining competitiveness and impeding innovation in the agriculture sector.

The consequences of excessive red tape extend far beyond mere paperwork, CFIB said. “Nearly nine in 10 agri-businesses worry about their future in the industry due to the extensive regulatory burden, and 90 per cent say it’s slashing productivity and stalling growth.”

An Ontario entrepreneur told CFIB that his business struggles to grow “due to the government policies and regulations which makes it unpalatable to want to expand or even run a small business.”

CFIB economist Laure-Anna Bomal said “Excessive red tape is putting the future of Canadian agriculture and our food supply at risk. If farmers and producers walk away because of overwhelming regulations, who will grow our food.”

“From municipal building permits to provincial environmental regulations and lengthy federal survey requirements, these top irritants are draining time and resources from the very businesses that keep Canada fed.”

According to CFIB research, Canadian businesses face approximately $51.5 billion in compliance costs annually, just under $18 billion of which is considered red tape.

This burden is acutely felt by agri-businesses, which are among the most heavily regulated industries in Canada. Red tape disproportionately impacts small business owners who have limited time and resources to dedicate to navigating Canada’s complex regulatory landscape and government paperwork.

CFIB recommends that local, provincial, and federal governments alleviate the regulatory burden on agri-businesses by:

-Measuring the regulatory burden on both businesses and citizens from all government, agencies, and delegated authorities; publicly report on this burden annually;

-Reducing the total number of regulations by introducing a "2 for 1" rule;

-Simplifypng existing regulations and guidance;

-Creating permanent avenues for businesses and citizens to provide suggestions for red tape reduction;

-Keeping compliance flexible and provide basic examples and guidelines for what constitutes compliance and non-compliance.

Juliette Nicolay, CFIB's bilingual policy analyst, said “Reducing the regulatory burden and red tape has been the top priority of agri-businesses for years.”

“In the face of global inflation and tariff wars, this is now a matter of survival for the industry. Governments must act now to safeguard the future of this key sector.

To learn more, visit: cfib.ca/redtape

This news report prepared for National Newswatch