A combine harvesting in the field. (Image Credit: University of Saskatchewan/website)

By Kenneth Cheung

FEDERAL BUDGET CUTS

Closure of two federal research farms could cost Saskatchewan millions, economist says

Jan 27, 2026 | 4:25 PM

The planned closure of two federal agricultural research farms in Saskatchewan could slow the development of higher-yielding crops, weaken long-standing research partnerships and cost the province tens of millions of dollars in future agricultural gains, an agricultural economist says.

The federal government has confirmed that Agriculture and Agri-Food Canada (AAFC) plans to close the Scott and Indian Head satellite research farms as part of broader budget savings.

Richard Gray, a professor of agricultural economics at the University of Saskatchewan, said the loss of research sites matters to farmers and consumers alike because agricultural innovation directly affects crop yields, food prices and the province’s economy.

“There’s historically very high returns to applied agricultural research,” Gray said, noting many studies have proven its value.

Gray said research farms like Scott and Indian Head play a critical role in plant breeding by serving as testing sites for new crop varieties developed by breeders.

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“These research stations, if you like, are sites where varieties and lines that breeders have created are tested, and so they’re part of these breeding programs,” he said.

Closing those sites, he said, reduces the capacity to develop improved crop varieties unless equivalent resources are added elsewhere.

Gray warned that slower progress in plant breeding can have large economic consequences over time, particularly in Saskatchewan, where crops like wheat are a major driver of the economy.

“When you get, for example, wheat, which is about a $10 billion industry, even a one per cent advancement is $10 million a year,” he said. “And that continues — it doesn’t go away after a year. It’s $10 million for the foreseeable future.”

Gray said research conducted at the Indian Head farm has historically supported multiple breeding and agronomy programs, including work by Agriculture Canada scientists and the Indian Head Agricultural Research Foundation, a producer-run non-profit that shares land, equipment and resources with the federal government.

Gray said those partnerships not only expanded research capacity but also reduced costs for the federal government.

“That really lowered the costs of breeding, the seed production, etc.,” he said.

He said the concern is not just the closures themselves, but the lack of advance planning for how the land, facilities and partnerships will be handled once Agriculture Canada withdraws.

“This particular cut was made with — certainly the stakeholders or everybody involved in that farm didn’t get any advanced notice,” Gray said. 

Gray said without a clear transition plan, valuable infrastructure and knowledge could be lost.

“If it was shuttered tomorrow, there would be a lot of knowledge stranded, a lot of assets stranded that would otherwise have a great deal of value in the future,” he said.

The Indian Head research farm was among the first five federal research farms established in 1887. The Scott Research Farm was founded in 1906 and was one of six experimental stations created nationally between 1906 and 1911.

Beyond research, Gray said the closures could also affect rural communities and education, noting that the Indian Head farm has supported local employment, student training and public education programs.

“It certainly keeps the town more viable. That, by itself, is important, and certainly people in the area would all recognize the historical significance of the farm.”

In a statement, AAFC said it is identifying savings over three years while remaining focused on its core mandate. The department confirmed its workforce will be reduced by approximately 665 positions and that notices were issued to affected employees on Jan. 22.

The department said it will close three research and development centres and four satellite research farms across the country, including Scott and Indian Head, but emphasized there are no imminent site closures.

“Any wind-down of scientific operations would follow a careful decision process that could take up to 12 months,” the statement said.

Gray said the ultimate impact on Saskatchewan will depend on whether the federal government helps repurpose the sites for continued research.

“With the proper plans in place, I think both in the short run and the long run, you know, the impact can be minimized,” he said.

“But certainly, if these assets aren’t repurposed,” he added, “I think there could be some very significant loss for Saskatchewan agriculture.”

The rest of the affected locations include research and development centres in Guelph, Ont., Quebec City, Que., and Lacombe, Alta., as well as satellite research farms in Nappan, N.S., and Portage la Prairie, Man.

Kenneth.Cheung@pattisonmedia.com