The funding will be delivered through the Agricultural Stewardship Initiative under the Sustainable Canadian Agricultural Partnership, a joint federal-provincial agricultural funding framework.
According to the statement, eligible farmers will be able to apply for grants ranging from C$6,000 to C$90,000 for projects aimed at improving soil health, water quality and energy efficiency.
Supported projects include upgrades to farm equipment and the installation of technologies such as geothermal heating systems, high-efficiency ventilation and refrigeration units, grain dryers and lighting systems.
The latest funding round represents the fourth intake of the programme and builds on C$15.5 million already invested since 2023 to support about 1,000 projects across Ontario.
Applications for the new intake will open on July 8 and will be administered by the Ontario Soil and Crop Improvement Association.
Agriculture and Agri-Food Minister Heath MacDonald said the funding would help farmers adopt technologies that lower input costs and improve operational sustainability.
Ontario Agriculture, Food and Agribusiness Minister Trevor Jones said the investment would help farmers strengthen competitiveness and adapt to future challenges facing the sector.
The announcement comes as governments and producers face increasing pressure to improve productivity while addressing environmental concerns and rising operating costs.
The Agricultural Stewardship Initiative is part of the Sustainable Canadian Agricultural Partnership, a five-year C$3.5 billion federal-provincial-territorial framework running from 2023 to 2028.
The program includes C$1 billion in federal funding and C$2.5 billion in cost-shared investments delivered by provinces and territories.
Since its launch in 2023, the initiative has supported projects aimed at improving farm efficiency, productivity and environmental performance across Ontario.